Document:

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Exhibit 4.2

                              WCI COMMUNITIES, INC.

                                       AND

                              THE GUARANTORS LISTED
                          ON THE SIGNATURE PAGES HERETO

        SERIES A AND SERIES B 7-7/8% SENIOR SUBORDINATED NOTES DUE 2013

                               ------------------

                                    INDENTURE

                         Dated as of September 29, 2003

                               ------------------

                              THE BANK OF NEW YORK

                                     Trustee

                               ------------------

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                              CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
    TIA                                                                                     Indenture
   Section                                                                                   Section
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<S>                                                                                     <C>
310(a)(1)..........................................................................     7.10
    (a)(2).........................................................................     7.10
    (a)(3).........................................................................     N.A.
    (a)(4).........................................................................     N.A.
    (a)(5).........................................................................     7.10
    (b)............................................................................     7.10
    (c)............................................................................     N.A.
311(a).............................................................................     7.11
    (b)............................................................................     7.11
    (c)............................................................................     N.A.
312(a).............................................................................     2.05
    (b)............................................................................     13.03
    (c)............................................................................     13.03
313(a).............................................................................     7.06
    (b)(2).........................................................................     7.07
    (c)............................................................................     7.06; 13.02
    (d)............................................................................     7.06
314(a).............................................................................     4.03; 4.04; 13.02
    (c)(1).........................................................................     13.04
    (c)(2).........................................................................     13.04
    (c)(3).........................................................................     N.A.
    (e)............................................................................     13.05
    (f)............................................................................     N.A.
315(a).............................................................................     7.01
    (b)............................................................................     7.05,13.02
    (c)............................................................................     7.01
    (d)............................................................................     7.01
    (e)............................................................................     6.11
316(a) (last sentence).............................................................     2.09
    (a)(1)(A)......................................................................     6.05
    (a)(1)(B)......................................................................     6.04
    (a)(2).........................................................................     N.A.
    (b)............................................................................     6.07
    (c)............................................................................     2.12
317(a)(1)..........................................................................     6.08
    (a)(2).........................................................................     6.09
    (b)............................................................................     2.04
318(a).............................................................................     13.01
    (b)............................................................................     N.A.
    (c)............................................................................     13.01
</TABLE>

----------------------------
N.A. means Not Applicable

Note:    This Cross-Reference Table is not part of this Indenture.

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                                TABLE OF CONTENTS

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                                             ARTICLE 1

                                  DEFINITIONS AND INCORPORATION
                                            BY REFERENCE

1.01        Definitions.................................................................................     1
1.02        Other Definitions...........................................................................    17
1.03        Incorporation by Reference of Trust Indenture Act...........................................    17
1.04        Rules of Construction.......................................................................    18

                                             ARTICLE 2

                                             THE NOTES

2.01        Form and Dating.............................................................................    18
2.02        Execution and Authentication................................................................    19
2.03        Registrar and Paying Agent..................................................................    20
2.04        Paying Agent to Hold Money in Trust.........................................................    20
2.05        Holder Lists................................................................................    20
2.06        Transfer and Exchange.......................................................................    21
2.07        Replacement Notes...........................................................................    32
2.08        Outstanding Notes...........................................................................    32
2.09        Treasury Notes..............................................................................    32
2.10        Temporary Notes.............................................................................    32
2.11        Cancellation................................................................................    33
2.12        Defaulted Interest..........................................................................    33
2.13        CUSIP Numbers...............................................................................    33

                                             ARTICLE 3

                                     REDEMPTION AND PREPAYMENT

3.01        Notices to Trustee..........................................................................    33
3.02        Selection of Notes to Be Redeemed...........................................................    34
3.03        Notice of Redemption........................................................................    34
3.04        Effect of Notice of Redemption..............................................................    35
3.05        Deposit of Redemption Price.................................................................    35
3.06        Notes Redeemed in Part......................................................................    35
3.07        Optional Redemption.........................................................................    35
3.08        Mandatory Redemption........................................................................    36
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                                             ARTICLE 4

                                             COVENANTS

4.01        Payment of Notes............................................................................    36
4.02        Maintenance of Office or Agency.............................................................    36
4.03        Reports.....................................................................................    37
4.04        Compliance Certificate......................................................................    37
4.05        Taxes.......................................................................................    38
4.06        Stay, Extension and Usury Laws..............................................................    38
4.07        Restricted Payments.........................................................................    38
4.08        Dividend and Other Payment Restrictions Affecting Subsidiaries..............................    42
4.09        Incurrence of Indebtedness and Issuance of Preferred Stock..................................    43
4.10        Maintenance of Consolidated Tangible Net Worth..............................................    46
4.11        Transactions with Affiliates................................................................    47
4.12        Liens.......................................................................................    48
4.13        Business Activities.........................................................................    48
4.14        Corporate Existence.........................................................................    48
4.15        Offer to Repurchase Upon Change of Control..................................................    48
4.16        No Senior Subordinated Debt.................................................................    49
4.17        Limitation on Issuances of Guarantees of Indebtedness.......................................    49
4.18        Payments for Consent........................................................................    50

                                             ARTICLE 5

                                             SUCCESSORS

5.01        Merger, Consolidation, or Sale of Assets....................................................    50
5.02        Successor Corporation Substituted...........................................................    50

                                             ARTICLE 6

                                       DEFAULTS AND REMEDIES

6.01        Events of Default...........................................................................    51
6.02        Acceleration................................................................................    52
6.03        Other Remedies..............................................................................    53
6.04        Waiver of Past Defaults.....................................................................    53
6.05        Control by Majority.........................................................................    53
6.06        Limitation on Suits.........................................................................    53
6.07        Rights of Holders of Notes to Receive Payment...............................................    54
6.08        Collection Suit by Trustee..................................................................    54
6.09        Trustee May File Proofs of Claim............................................................    54
6.10        Priorities..................................................................................    55
6.11        Undertaking for Costs.......................................................................    55
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                                      -ii-

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                                             ARTICLE 7

                                              TRUSTEE

7.01        Duties of Trustee...........................................................................    55
7.02        Rights of Trustee...........................................................................    56
7.03        Individual Rights of Trustee................................................................    57
7.04        Trustee's Disclaimer........................................................................    57
7.05        Notice of Defaults..........................................................................    57
7.06        Reports by Trustee to Holders of the Notes..................................................    58
7.07        Compensation and Indemnity..................................................................    58
7.08        Replacement of Trustee......................................................................    59
7.09        Successor Trustee by Merger, etc............................................................    59
7.10        Eligibility; Disqualification...............................................................    60
7.11        Preferential Collection of Claims Against Company...........................................    60
7.12        Assignment of Rights, Not Assumption of Duties..............................................    60

                                            ARTICLE 8

                              LEGAL DEFEASANCE AND COVENANT DEFEASANCE

8.01        Option to Effect Legal Defeasance or Covenant Defeasance....................................    60
8.02        Legal Defeasance and Discharge..............................................................    60
8.03        Covenant Defeasance.........................................................................    61
8.04        Conditions to Legal or Covenant Defeasance..................................................    61
8.05        Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
              Provisions................................................................................    62
8.06        Repayment to Company........................................................................    63
8.07        Reinstatement...............................................................................    63

                                            ARTICLE 9

                                AMENDMENT, SUPPLEMENT AND WAIVER

9.01        Without Consent of Holders of Notes.........................................................    63
9.02        With Consent of Holders of Notes............................................................    64
9.03        Compliance with Trust Indenture Act.........................................................    66
9.04        Revocation and Effect of Consents...........................................................    66
9.05        Notation on or Exchange of Notes............................................................    66
9.06        Trustee to Sign Amendments, etc.............................................................    66

                                            ARTICLE 10

                                          SUBORDINATION

10.01       Agreement to Subordinate....................................................................    66
10.02       Liquidation; Dissolution; Bankruptcy........................................................    67
10.03       Default on Designated Senior Debt...........................................................    67
10.04       Acceleration of Securities..................................................................    68
10.05       When Distribution Must Be Paid Over.........................................................    68
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                                      -iii-

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10.06       Notice by Company...........................................................................    68
10.07       Subrogation.................................................................................    68
10.08       Relative Rights.............................................................................    69
10.09       Subordination May Not Be Impaired by Company................................................    69
10.10       Distribution or Notice to Representative....................................................    69
10.11       Rights of Trustee and Paying Agent..........................................................    69
10.12       Authorization to Effect Subordination.......................................................    70
10.13       Amendments..................................................................................    70

                                             ARTICLE 11

                                          NOTE GUARANTEES

11.01       Guarantee...................................................................................    70
11.02       Subordination of Note Guarantee.............................................................    71
11.03       Limitation on Guarantor Liability...........................................................    71
11.04       Execution and Delivery of Note Guarantee....................................................    71
11.05       Guarantors May Consolidate, etc., on Certain Terms..........................................    72
11.06       Releases Following Sale of Assets...........................................................    72

                                             ARTICLE 12

                                     SATISFACTION AND DISCHARGE

12.01       Satisfaction and Discharge..................................................................    73
12.02       Application of Trust Money..................................................................    74

                                            ARTICLE 13

                                          MISCELLANEOUS

13.01       Trust Indenture Act Controls................................................................    74
13.02       Notices.....................................................................................    74
13.03       Communication by Holders of Notes with Other Holders of Notes...............................    75
13.04       Certificate and Opinion as to Conditions Precedent..........................................    75
13.05       Statements Required in Certificate or Opinion...............................................    76
13.06       Rules by Trustee and Agents.................................................................    76
13.07       No Personal Liability of Directors, Officers, Employees and Stockholders....................    76
13.08       Governing Law; Submission of Jurisdiction...................................................    76
13.09       No Adverse Interpretation of Other Agreements...............................................    77
13.10       Successors..................................................................................    77
13.11       Severability................................................................................    77
13.12       Counterpart Originals.......................................................................    77
13.13       Table of Contents, Headings, etc............................................................    77

EXHIBITS

Exhibit A-1       FORM OF NOTE
Exhibit A-2       FORM OF REGULATION S TEMPORARY GLOBAL NOTE
</TABLE>

                                      -iv-

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Exhibit B         FORM OF CERTIFICATE OF TRANSFER
Exhibit C         FORM OF CERTIFICATE OF EXCHANGE
Exhibit D         FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
                  INVESTOR
Exhibit E         FORM OF NOTE GUARANTEE
Exhibit F         FORM OF SUPPLEMENTAL INDENTURE
</TABLE>

                                       -v-

<PAGE>

         INDENTURE dated as of September 29, 2003 between WCI Communities, Inc.,
a Delaware corporation (the "Company"), the subsidiary guarantors listed on the
signature pages hereto (collectively, the "Guarantors") and The Bank of New
York, a New York banking corporation, as trustee (the "Trustee").

         The Company, the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of
the Notes:

                                    ARTICLE I

                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

1.01     Definitions.

         "144A Global Note" means a global note substantially in the form of
Exhibit A-1 hereto bearing the Global Note Legend and the Private Placement
Legend and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 144A.

         "Acquired Debt" means, with respect to any specified Person, (1)
Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Subsidiary of such specified Person whether or
not such Indebtedness is incurred in connection with, or in contemplation of,
such other Person merging with or into, or becoming a Subsidiary of, such
specified Person; and (2) Indebtedness secured by a Lien encumbering any asset
acquired by such specified Person.

         "Additional Interest" means all additional interest then owing pursuant
to Section 5 of the Registration Rights Agreement.

         "Additional Notes" means Notes, unlimited in aggregate principal amount
(other than the Initial Notes) issued under this Indenture in accordance with
Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Notes.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
as used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person shall be deemed to be control. For purposes of this
definition, the terms "controlling," "controlled by" and "under common control
with" shall have correlative meanings. Notwithstanding the foregoing, the term
"Affiliate" shall not include, with respect to the Company or any Restricted
Subsidiary, any Restricted Subsidiary.

         "Agent" means any Registrar, Paying Agent or co-registrar.

         "Amenities" means the golf courses, marinas, clubhouses and swimming,
restaurants, tennis and other recreational facilities owned and operated by the
Company or any Restricted Subsidiary and all activities reasonably related
thereto.

<PAGE>

                                       -2-

         "Applicable Procedures" means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange.

         "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.

         "Beneficial Owner" has the meaning assigned to such term in Rule 13d-3
and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular "person" (as that term is used in Section 13(d)(3)
of the Exchange Act), such "person" shall be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The terms
"Beneficially Owns" and "Beneficially Owned" shall have a corresponding meaning.

         "Board of Directors" means the Board of Directors of the Company, or
any authorized committee of the Board of Directors.

         "Borrowing Base" means, at any time of determination, the sum of the
following, without duplication: (1) 100% of all cash and Cash Equivalents held
by the Company or any Restricted Subsidiary, including cash or Cash Equivalents
held by a title insurance company in trust for the benefit of the Company or any
Restricted Subsidiary; (2) 75% of the book value of Developed Land for which no
construction has occurred; (3) 95% of the cost of the land and construction
costs (as reasonably allocated by the Company) for all Units for which there is
an executed purchase contract with a buyer not affiliated with the Company, less
any deposits, down payments or earnest money; (4) 80% of the cost of the land
and construction costs (as reasonably allocated by the Company) for all Units
for which construction has begun and for which there is not an executed purchase
agreement with a buyer not affiliated with the Company; (5) 75% of Receivables;
(6) 75% of the cost of Amenities less the portion of such costs allocated on a
pro rata basis to sold memberships or marina slips; (7) 50% of the costs of
Developable Land (other than Developed Land) on which improvements have not
commenced, less CDD Obligations and mortgage Indebtedness (other than under a
Credit Facility) applicable to such land, up to the greater of $75.0 million or
30% of Consolidated Tangible Net Worth; (8) 65% of all Restricted Investments up
to $25.0 million; and (9) capitalized interest and taxes up to a maximum of 10%
of the Borrowing Base, exclusive of this clause (9) at the time of
determination.

         "Broker-Dealer" has the meaning set forth in the Registration Rights
Agreement.

         "Business Day" means any day other than a Legal Holiday.

         "Capital Lease Obligation" means, at the time any determination thereof
is to be made, the amount of the liability in respect of a capital lease that
would at that time be required to be capitalized on a balance sheet in
accordance with GAAP.

         "Capital Stock" means (1) in the case of a corporation, corporate
stock, (2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock, (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited), and (4) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

         "Cash Equivalents" means (1) United States dollars, (2) securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (provided that the full
faith and credit of the United States is pledged in support thereof) having
maturities of not more than one year

<PAGE>

                                       -3-

from the date of acquisition, (3) certificates of deposit and eurodollar time
deposits with maturities of one year or less from the date of acquisition,
bankers' acceptances with maturities not exceeding one year and overnight bank
deposits, in each case with any domestic commercial bank having capital and
surplus in excess of $500 million and rated A-1 or better by Standard & Poor's
Rating Services or P-1 or better by Moody's or the equivalent of such rating by
a successor rating agency, (4) repurchase obligations with a term of not more
than seven days for underlying securities of the types described in clauses (2)
and (3) above entered into with any financial institution meeting the
qualifications specified in clause (3) above, (5) commercial paper having the
highest rating obtainable from Moody's Investors Service, Inc. or Standard &
Poor's Rating Services and in each case maturing within one year after the date
of acquisition, and (6) money market funds at least 95% of the assets of which
constitute Cash Equivalents of the kinds described in clauses (1) through (5) of
this definition.

         "CDD Obligations" has the meaning set forth in clause (xi) of the
second paragraph of Section 4.09 hereof, to the extent that such obligation is
reflected as an obligation of the consolidated balance sheet of the Company and
its Restricted Subsidiaries in accordance with GAAP.

         "Change of Control" means the occurrence of any of the following: (1)
the direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Company and its Restricted Subsidiaries taken as a whole to any "person" (as
that term is used in Section 13(d)(3) of the Exchange Act or any successor
provision) other than a Principal or a Related Party of a Principal; provided
that a transaction where the Principals and/or Related Parties of a Principal
own directly or indirectly 50% or more of all classes of Capital Stock of such
Person or group immediately after such transaction shall not be a Change of
Control; (2) the adoption of a plan relating to the liquidation or dissolution
of the Company; (3) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
"person" (as defined above), other than the Principals and their Related
Parties, becomes the Beneficial Owner, directly or indirectly, of more than 50%
of the Voting Stock of the Company (measured by voting power rather than number
of shares); or (4) the first day on which a majority of the members of the Board
of Directors of the Company are not Continuing Directors.

         "Clearstream" means ClearStream Bank S.A.

         "Company" means WCI Communities, Inc., and any and all successors
thereto and not to any of its Subsidiaries.

         "Consolidated Coverage Ratio" means with respect to any Person for any
period, the ratio of the EBITDA of such Person and its Restricted Subsidiaries
for such period to the Consolidated Interest Incurred of such Person and its
Restricted Subsidiaries for such period. In the event that the referent Person
or any of its Restricted Subsidiaries incurs, assumes, Guarantees, repays,
repurchases or redeems any Indebtedness (other than ordinary working capital
borrowings) or issues, repurchases or redeems preferred stock subsequent to the
commencement of the period for which the Consolidated Coverage Ratio is being
calculated but prior to the date on which the event for which the calculation of
the Consolidated Coverage Ratio is made (the "Calculation Date"), then the
Consolidated Coverage Ratio shall be calculated giving pro forma effect to such
incurrence, assumption, Guarantee, repayment, repurchase or redemption of
Indebtedness, or such issuance, repurchase or redemption of preferred stock, and
the use of proceeds therefrom as if the same had occurred at the beginning of
the applicable four-quarter reference period.

         In addition, for purposes of calculating the Consolidated Coverage
Ratio, (1) acquisitions that have been made by the Company or any of its
Restricted Subsidiaries, including through mergers or consolidations and
including any related financing transactions, during the four-quarter reference
period or subsequent to such reference period and on or prior to the Calculation
Date shall be given pro forma effect as if they had occurred

<PAGE>

                                       -4-

on the first day of the four-quarter reference period and EBITDA for such
reference period shall be calculated without giving effect to clause (3) of the
proviso set forth in the definition of Consolidated Net Income, and (2) the
EBITDA attributable to Discontinued Operations, as determined in accordance with
GAAP, and operations or businesses disposed of prior to the Calculation Date,
shall be excluded, and (3) the Consolidated Interest Incurred attributable to
Discontinued Operations, as determined in accordance with GAAP, and operations
or businesses disposed of prior to the Calculation Date, shall be excluded, but
only to the extent that the obligations giving rise to such Consolidated
Interest Incurred will not be obligations of the referent Person or any of its
Restricted Subsidiaries following the Calculation Date.

         "Consolidated Indebtedness" means the Indebtedness of the Company and
its Restricted Subsidiaries on a consolidated basis, calculated in accordance
with GAAP, including, without duplication, the amount of all Guarantees, letters
of credit or other items of Indebtedness that are reflected as liabilities on
the balance sheet of the Company and its Restricted Subsidiaries, including Land
Bank Obligations reflected as liabilities on the balance sheet of the Company
and its Restricted Subsidiaries excluding, however, any amounts attributable to
surety and performance bonds.

         "Consolidated Interest Incurred" means, with respect to any Person for
any period, without duplication, (1) the consolidated interest expense of such
Person and its Restricted Subsidiaries for such period, whether paid or accrued
(including, without limitation, amortization of debt issuance costs and original
issue discount, non-cash interest payments, the interest component of any
deferred payment obligations, the interest component of all payments associated
with Capital Lease Obligations, commissions, discounts and other fees and
charges incurred in respect of letter of credit or bankers' acceptance
financings, and net of the effect of all payments made or received pursuant to
Hedging Obligations, but excluding amortization of debt issuance costs paid on
or prior to the Issue Date), plus (2) the consolidated interest of such Person
and its Restricted Subsidiaries, that was capitalized during such period, plus
(3) any Consolidated Interest Incurred on Indebtedness of another Person that is
Guaranteed by such Person or one of its Restricted Subsidiaries or secured by a
Lien on assets of such Person or one of its Restricted Subsidiaries (subject,
however, to the amount of the guarantee or the value of the assets constituting
the Lien) (whether or not such Guarantee or Lien is called upon), plus (4)
Consolidated Interest Incurred in connection with Investments in Discontinued
Operations for such period; plus (5) the product of (a) all dividends, whether
paid or accrued and whether or not in cash, on any series of preferred stock of
such Person or any of its Restricted Subsidiaries, other than dividends on
Equity Interests payable solely in Equity Interests of the Company (other than
Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company,
times (b) a fraction, the numerator of which is one and the denominator of which
is one minus the then current combined federal, state and local statutory tax
rate of such Person, expressed as a decimal, in each case, on a consolidated
basis and in accordance with GAAP; minus (6) to the extent included above, the
amortization of previously capitalized interest, minus (7) to the extent
included above, the amortization of debt issuance costs paid on or prior to the
Issue Date.

         "Consolidated Net Income" means, with respect to any Person for any
period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that, without duplication, (1) the Net Income or net loss of
any Person that is not a Restricted Subsidiary or that is accounted for by the
equity method of accounting shall be included only to the extent of the amount
of dividends or distributions are received in cash to the referent Person or a
Restricted Subsidiary during the referent period or receivable (without legal or
contractual restrictions) or to the extent such loss has been funded with cash
or other assets from the Company or a Restricted Subsidiary during the referent
period, (2) the Net Income of any Restricted Subsidiary shall be excluded to the
extent that the declaration or payment of dividends or similar distributions by
that Restricted Subsidiary of that Net Income is not at the date of
determination permitted without any prior governmental approval (that has not
been obtained) or, directly or indirectly, 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 or its
stockholders, unless such restrict-

<PAGE>

                                       -5-

tion with respect to the payments of dividends or similar distributions has been
waived (and when and to the extent such dividend or other distribution is
permitted, such income not previously recognized shall then be recognized, in
the period when such dividend or other distribution was permitted and to the
extent of such permission for purposes of calculation of Net Income under
Section 4.07 hereof but Net Income from prior periods will not be included for
any other purpose), (3) the Net Income or net loss of any Person acquired in a
pooling of interests transaction for any period prior to the date of such
acquisition shall be excluded, (4) the cumulative effect of a change in
accounting principles shall be excluded, and (5) the Net Income and net loss of
any Unrestricted Subsidiary shall be excluded, unless such Net Income shall be
distributed to the Company or one of its Restricted Subsidiaries, in which case
such Net Income shall be included.

         "Consolidated Net Income After Grossed-up Preferred Stock Dividends"
means, with respect to any Person for any period, the aggregate of the Net
Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that, without
duplication, (1) the Net Income or net loss of any Person that is not a
Restricted Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of dividends or
distributions are received in cash to the referent Person or a Restricted
Subsidiary during the referent period (regardless of whether such cash
represented Net Income in such period or a prior period) or to the extent such
loss has been funded with cash or other assets from the Company or a Restricted
Subsidiary during the referent period, (2) the Net Income of any Restricted
Subsidiary shall be excluded to the extent that the declaration or payment of
dividends or similar distributions by that Restricted Subsidiary of that Net
Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly,
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 or its stockholders, unless such restriction with respect
to the payments of dividends or similar distributions has been waived (and when
and to the extent such dividend or other distribution is permitted, such income
not previously recognized shall then be recognized, in the period when such
dividend or other distribution was permitted and to the extent of such
permission for purposes of calculation of Net Income under Section 4.07 hereof
but Net Income from prior periods will not be included for any other purpose),
(3) the Net Income or net loss of any Person acquired in a pooling of interests
transaction for any period prior to the date of such acquisition shall be
excluded, (4) the cumulative effect of a change in accounting principles shall
be excluded, (5) the Net Income and net loss of any Unrestricted Subsidiary
shall be excluded, whether or not distributed to the Company or one of its
Restricted Subsidiaries, and (6) the product of (a) all dividends, whether paid
or accrued and whether or not in cash, on any series of preferred stock or
Disqualified Stock of such Person or any of its Restricted Subsidiaries, times
(b) a fraction, the numerator of which is one and the denominator of which is
one minus the then current combined federal, state and local statutory tax rate
of such Person, expressed as a decimal, in each case, on a consolidated basis
and in accordance with GAAP shall be deducted.

         "Consolidated Net Worth" of any Person as of any date means the
stockholders' equity (including any preferred stock that is classified as equity
under GAAP, other than Disqualified Stock) of such Person and its Restricted
Subsidiaries on a consolidated basis at the end of the fiscal quarter
immediately preceding such date, as determined in accordance with GAAP, less any
amount attributable to Unrestricted Subsidiaries.

         "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) on a consolidated basis at the end of the fiscal quarter
immediately preceding such date, as determined in accordance with GAAP, less (1)
Intangible Assets and (2) appropriate adjustments on account of minority
interests of other Persons holding equity investments in Restricted
Subsidiaries.

         "Consolidated Tangible Net Worth" means, with respect to any Person as
of any date, the sum of (1) the consolidated equity of the common stockholders
of such Person and its consolidated Restricted Subsidiaries as of

<PAGE>

                                       -6-

such date, plus (2) the respective amounts reported on such Person's balance
sheet as of such date with respect to any series of preferred stock (other than
Disqualified Stock) that by its terms is not entitled to the payment of
dividends unless such dividends may be declared and paid only out of net
earnings in respect of the year of such declaration and payment, but only to the
extent of any cash received by such Person upon issuance of such preferred
stock, less (3) all write-ups (other than write-ups resulting from foreign
currency translations and write-ups of tangible assets of a going concern
business made within 12 months after the acquisition of such business)
subsequent to the date of this Indenture in the book value of any asset owned by
such Person or a consolidated Restricted Subsidiary of such Person, except to
the extent the write-up is a reversal of a write-down or a previously recorded
reserve, less (4) all investments as of such date in Unrestricted Subsidiaries
and in Persons that are not Subsidiaries (except, in each case, Permitted
Investments, to the extent included in calculating the consolidated equity in
clause (1)), less (5) Intangible Assets reflected on the consolidated balance
sheet of such Person or a consolidated Restricted Subsidiary of such Person, all
of the foregoing determined in accordance with GAAP.

         "Construction Loan" means, a loan made for the purpose of financing the
construction and development of multifamily residential condominium projects or
commercial real estate projects.

         "Consultant" means a natural person who is a consultant hired by the
Company or a Restricted Subsidiary to perform services.

         "Continuing Directors" means, as of any date of determination, any
member of the Board of Directors of the Company who: (1) was a member of such
Board of Directors on the date of this Indenture, or (2) was nominated for
election or elected to such Board of Directors with the approval of a majority
of the Continuing Directors who were members of such Board at the time of such
nomination or election.

         "Corporate Trust Office" means the principal office of the Trustee at
which at any time its corporate trust business shall be administered, which
office at the date hereof is located at 101 Barclay Street, Floor 8W, New York,
New York 10286, Attention: Corporate Trust Administration, or such other address
as the Trustee may designate from time to time by notice under Section 13.02, or
the principal corporate trust office of any successor Trustee (or such other
address as a successor Trustee may designate from time to time by notice under
Section 13.02).

         "Credit Agreement" means that certain Credit Agreement, dated as of
June 28, 2002 by and among the Company, Fleet National Bank and the other
parties named therein, providing for up to $405.0 million of borrowings,
including any related notes, guarantees, collateral documents, instruments and
agreements executed in connection therewith, and in each case as amended,
modified, renewed, refunded, replaced or refinanced from time to time.

         "Credit Facilities" means one or more debt facilities (including,
without limitation, the Credit Agreement) or commercial paper facilities, in
each case with banks or other institutional lenders providing for revolving
credit loans, term loans, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed to borrow from
such lenders against such receivables) or letters of credit, in each case, as
amended, restated, modified, renewed, refunded, replaced or refinanced in whole
or in part from time to time (and whether or not with the original lender or
lenders and whether provided under the original Credit Facility or any other
credit or other agreement or indenture). Indebtedness under Credit Facilities
outstanding on the date on which Notes are first issued and authenticated under
this Indenture shall be deemed to have been incurred on such date in reliance on
the exception provided by clause (i) of the definition of Permitted Debt.

         "Custodian" means the Trustee, as custodian for the Depositary with
respect to the Notes in global form, or any successor entity thereto.

<PAGE>

                                       -7-

         "Default" means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default.

         "Definitive Note" means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.06 hereof,
substantially in the form of Exhibit A-1 hereto except that such Note shall not
bear the Global Note Legend and shall not have the "Schedule of Exchanges of
Interests in the Global Note" attached thereto.

         "Depositary" means, with respect to the Notes issuable or issued in
whole or in part in global form, the Person specified in Section 2.03 hereof as
the Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

         "Designated Senior Debt" means (1) Indebtedness outstanding under the
Credit Agreement and (2) any other Senior Debt of the Company permitted under
this Indenture the principal amount of which is $25.0 million or more and that
has been designated by the Company as "Designated Senior Debt."

         "Developable Land" means all land of the Company and its Restricted
Subsidiaries (a) on which Units may be constructed or which may be utilized for
commercial, retail or industrial uses, in each case, under applicable laws and
regulations and (b) the intended use by the Company for which is permissible
under the applicable regional plan, development agreement or applicable zoning
ordinance.

         "Developed Land" means all Developable Land of the Company and its
Restricted Subsidiaries which is undergoing active development or is ready for
vertical construction.

         "Discontinued Operations" with respect to the Company those operations
of the Company and its Subsidiaries which were classified as "discontinued
operations" of the Company and its Subsidiaries on a consolidated basis in
accordance with GAAP as of the date of determination.

         "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, in each case at the option of the holder thereof), or upon the
happening of any event, matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or redeemable at the option of the Holder
thereof, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature; provided that only the portion of Capital Stock
which so matures or is mandatorily redeemable or redeemable at the option of the
holder thereof prior to such date will be deemed to be Disqualified Stock;
provided that any Capital Stock that would constitute Disqualified Stock solely
because the holders thereof have the right to require the Company to repurchase
such Capital Stock upon the occurrence of a Change of Control or an asset sale
shall not constitute Disqualified Stock if the terms of such Capital Stock
provide that the Company may not repurchase or redeem any such Capital Stock
pursuant to such provisions unless such repurchase or redemption complies with
Section 4.07 hereof.

         "EBITDA" means, with respect to any Person for any period, the
Consolidated Net Income of such Person for such period plus (1) provision for
taxes based on income or profits of such Person and its Subsidiaries for such
period, to the extent that such provision for taxes was deducted in computing
such Consolidated Net Income, plus (2) consolidated interest expense of such
Person and its Subsidiaries for such period, whether paid or accrued, whether
expensed directly or included as a component of cost of goods sold or allocated
to Joint Ventures (including, without limitation, amortization of debt issuance
costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers'
acceptance financings, and net of the effect of all payments made or

<PAGE>

                                       -8-

received pursuant to Hedging Obligations), to the extent that any such expense
was deducted in computing such Consolidated Net Income, plus (3) depreciation,
amortization (including amortization of goodwill and other intangibles but
excluding amortization of prepaid cash expenses that were paid in a prior
period) and other non-cash expenses (excluding any such non-cash expense to the
extent that it represents an accrual of or reserve for cash expenses in any
future period or amortization of a prepaid cash expense that was paid in a prior
period occurring after the date of this Indenture) of such Person and its
Subsidiaries for such period to the extent that such depreciation, amortization
and other non-cash expenses were deducted in computing such Consolidated Net
Income, minus (4) non-cash items increasing such Consolidated Net Income for
such period, other than the accrual of revenue in the ordinary course of
business, in each case, on a consolidated basis and determined in accordance
with GAAP.

         Notwithstanding the preceding, the provision for taxes based on the
income or profits of, and the depreciation and amortization and other non-cash
expenses of, a Subsidiary of the Company shall be added to Consolidated Net
Income to compute EBITDA of the Company only to the extent that a corresponding
amount would be permitted at the date of determination to be dividended to the
Company by such Subsidiary without prior governmental approval (that has not
been obtained), and without direct or indirect restriction pursuant to the terms
of its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to that Subsidiary or
its stockholders.

         "Equity Interests" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

         "Equity Offerings" means any public or private sale of common stock or
preferred stock (excluding Disqualified Stock).

         "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
office, as operator of the Euroclear system.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Exchange Notes" means the Series B Notes (as defined in the
Registration Rights Agreement) issued in the Exchange Offer pursuant to Section
2.06(f) hereof.

         "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

         "Exchange Offer Registration Statement" has the meaning set forth in
the Registration Rights Agreement.

         "Excluded Contributions" means the net cash proceeds received by the
Company after the Issue Date from (a) contributions to its equity capital other
than contributions from the issuance of Disqualified Stock or (b) the sale
(other than to a Restricted Subsidiary or to any Company, Restricted Subsidiary
or parent company management equity plan or stock option plan or any other
management or employee benefit plan or agreement) of Capital Stock (other than
Disqualified Stock) of the Company, in each case designated as Excluded
Contributions pursuant to an Officers' Certificate executed by the principal
executive officer and the principal financial officer of the Company on the date
such capital contributions are made or the date such Equity Interests are sold,
as the case may be, the cash proceeds of which are excluded from the calculation
set forth in paragraph (c) of Section 4.07 hereof.

<PAGE>

                                       -9-

         "Existing Indebtedness" means the aggregate principal amount of
Indebtedness of the Company and its Restricted Subsidiaries (other than
Indebtedness under the Credit Agreement) in existence on the date of the
Indenture.

         "Existing Indenture" means the Indenture, dated as of February 20,
2001, by and among the Company, the Trustee and the guarantors named on the
signature pages thereto, as such Indenture may be amended, modified or
supplemented from time to time.

         "Existing Notes" means the Company's outstanding $350.0 million
principal amount of 10 5/8% Senior Subordinated Notes due 2011, outstanding
$200.0 million principal amount of 9 1/8% Senior Subordinated Notes due 2012 and
outstanding $125.0 million principal amount of 4% Contingent Convertible Senior
Subordinated Notes due 2023.

         "Fair Market Value" means, with respect to any property or assets, the
fair market value thereof, as established by a responsible officer of the
Company, and, with respect to any property or asset the fair market value of
which exceeds $5.0 million, by an independent third party appraiser, accounting
firm or valuation firm with expertise in such valuation that is not affiliated
with the Company or any Subsidiary of the Company.

         "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 have been approved by a significant segment of the accounting
profession, which were in effect on April 24, 2002.

         "Global Note Legend" means the legend set forth in Section 2.06(g)(ii),
which is required to be placed on all Global Notes issued under this Indenture.

         "Global Notes" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes, substantially in the
form of Exhibit A hereto issued in accordance with Section 2.01, 2.02,
2.06(b)(iv), 2.06(d)(ii) or 2.06(f) hereof.

         "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the
United States pledges its full faith and credit.

         "Guarantee" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof), of all or any part of any Indebtedness.

         "Guarantors" means (1) each Subsidiary as of the Issue Date and (2) any
other Restricted Subsidiary that executes a Note Guarantee in accordance with
the provisions of this Indenture, and their respective successors and assigns.
Notwithstanding the foregoing, Wildcat Run of Lee County, Inc. is not a
Guarantor of the Notes.

         "Hedging Obligations" means, with respect to any Person, the
obligations of such Person under (1) interest rate swap agreements, interest
rate cap agreements and interest rate collar agreements and (2) other agreements
or arrangements designed to protect such Person against fluctuations in interest
rates.

         "Holder" means a Person in whose name a Note is registered.

<PAGE>

                                      -10-

         "IAI Global Note" means the global Note substantially in the form of
Exhibit A-1 hereto bearing the Global Note Legend and the Private Placement
Legend and deposited with or on behalf of and registered in the name of the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold to Institutional Accredited
Investors.

         "Indebtedness" means, with respect to any Person and without
duplication, any indebtedness of such Person, whether or not contingent, in
respect of borrowed money or evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect
thereof) or banker's acceptances or representing Capital Lease Obligations or
the balance deferred and unpaid of the purchase price of any property or
representing any Hedging Obligations, if and to the extent any of the foregoing
(other than letters of credit and Hedging Obligations) would appear as a
liability upon a balance sheet of such Person prepared in accordance with GAAP,
as well as all Indebtedness of others secured by a Lien on any asset of such
Person, subject, however, to the Fair Market Value of the assets securing such
Indebtedness (whether or not such Indebtedness is assumed by such Person) and,
to the extent not otherwise included, the Guarantee by such Person of any
indebtedness of any other Person; provided Indebtedness shall not include
Indebtedness that constitutes an accrued expense, trade payables, customer
deposits or deferred income taxes. The amount of any Indebtedness outstanding as
of any date shall be (1) the accreted value thereof, in the case of any
Indebtedness issued with original issue discount, and (2) the principal amount
thereof, together with any interest thereon that is more than 30 days past due,
in the case of any other Indebtedness. Notwithstanding the foregoing,
Indebtedness shall not include: (1) Indebtedness which has been defeased or
discharged, (2) 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, provided that such
Indebtedness is extinguished within five Business Days of its incurrence or (3)
CDD Obligations, other than that portion of any CDD Obligations that is due and
payable at the time of determination.

         "Indenture" means this Indenture, as amended or supplemented from time
to time.

         "Independent Member" means, with respect to any board of directors of a
company, a member who is not an officer or employee of such company and is
otherwise "independent" as defined by the New York Stock Exchange's listing
requirements and, in connection with any transaction, a member of such board of
directors who is disinterested with respect to such transaction.

         "Indirect Participant" means a Person who holds a beneficial interest
in a Global Note through a Participant.

         "Initial Notes" means the first $125.0 million aggregate principal
amount of 7-7/8% Senior Subordinated Notes due 2013 issued under this Indenture
on the Issue Date.

         "Institutional Accredited Investor" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act, who are not also QIBs.

         "Intangible Assets" means all unamortized debt discount and expense,
unamortized deferred charges, goodwill, patents, trademarks, service marks,
trade names, copyrights, write-ups of assets over their carrying value at the
date of this Indenture or the date of acquisition, if acquired subsequent
thereto, and all other items which would be treated as intangibles on the
consolidated balance sheet of such Person prepared in accordance with GAAP. For
purposes of this definition, deferred tax assets shall not be deemed to be
Intangible Assets.

         "Investments" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees or other obligations), advances or capital
contributions (excluding commission, travel loans and advances to officers and
employees made in the

<PAGE>

                                      -11-

ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP. If the Company or any Restricted Subsidiary of the Company
sells or otherwise disposes of any Equity Interests of any direct or indirect
Restricted Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Restricted Subsidiary of the
Company, the Company shall be deemed to have made an Investment on the date of
any such sale or disposition equal to the fair market value of the Equity
Interests of such Subsidiary not sold or disposed of in an amount determined as
provided in the third paragraph of Section 4.07 hereof. The acquisition by the
Company or any Restricted Subsidiary of the Company of a Person that holds an
Investment in a third Person shall be deemed to be an Investment by the Company
or such Restricted Subsidiary in such third Person in an amount equal to the
fair market value of the Investment held by the acquired Person in such third
Person in an amount determined as provided in the third paragraph of Section
4.07 hereof. Notwithstanding the foregoing, the following are not Investments:
(i) Hedging Obligations entered into in the ordinary course of business and in
compliance with this Indenture; (ii) endorsements of negotiable instruments and
documents in the ordinary course of business; and (iii) an acquisition of
assets, Capital Stock or other securities by the Company for consideration
consisting exclusively of Equity Interests of the Company (other than
Disqualified Stock) and which Equity Interests are excluded from the calculation
set forth in Paragraph (c) of the first paragraph of Section 4.07 hereof.

         "Issue Date" means September 29, 2003.

         "Joint Venture" means a corporation, partnership or other entity
engaged in one or more of the Permitted Businesses in which the Company or its
Restricted Subsidiaries does not have control but owns, directly or indirectly,
at least 10% of the Equity Interests.

         "Land Bank Obligations" means all obligations of the Company and its
Restricted Subsidiaries reflected on its balance sheet as a liability in
accordance with GAAP with respect to land sold to a third party and as to which
the Company or any Restricted Subsidiary has an option to repurchase.

         "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in The City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

         "Letter of Transmittal" means the letter of transmittal to be prepared
by the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

         "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction
provided that in no event shall any operating lease be deemed a Lien).

         "Net Income" means, with respect to any Person, the net income (loss)
of such Person, determined in accordance with GAAP and before any reduction in
respect of preferred stock dividends, excluding, however, without duplication,
(1) any gain or loss, together with any related provision for taxes on such gain
or loss, realized in connection with the disposition of any Restricted
Investment by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted
Subsidiaries and (2) any extraordinary gain (but not loss), together with any
related provision for taxes on such extraordinary gain (but not loss).

<PAGE>

                                      -12-

         "Non-Recourse Financing" means Indebtedness incurred in connection with
the purchase, development or construction of personal or real property useful in
the Permitted Business as to which the lender upon default (1) may seek recourse
or payment against the Company or any Restricted Subsidiary only through the
return or sale of the property so purchased and (2) may not otherwise assert a
valid claim for payment on such Indebtedness against the Company or any
Restricted Subsidiary or any other property of the Company or any Restricted
Subsidiary.

         "Non-U.S. Person"  means a Person who is not a U.S. Person.

         "Note Guarantee" means the Guarantee by each Guarantor of the Company's
payment obligations under this Indenture and on the Notes, executed pursuant to
the provisions of this Indenture.

         "Notes" means the Initial Notes, the Exchange Notes and the Additional
Notes, if any, permitted to be issued in accordance with this Indenture.

         "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

         "Offering" means the offering of the Notes by the Company.

         "Officer" means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller,
the Secretary or any Vice-President of such Person.

         "Officers' Certificate" means a certificate signed by the Chief
Executive Officer, the President, the Chief Financial Officer, any Vice
President, the Treasurer, any Assistant Treasurer, the Secretary or any
Assistant Secretary of the Company and delivered to the Trustee.

         "Opinion of Counsel" means an opinion from legal counsel who is
reasonably acceptable to the Trustee, that meets the requirements of Section
13.05 hereof. The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

         "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

         "Permitted Business" means the business of the Company and its
Subsidiaries engaged in as of the date of this Indenture, including but not
limited to, planning, designing, engineering, development, construction,
marketing, sale, financing, management and operation of real estate including
business and commercial projects, office buildings, residential subdivisions,
condominiums and cooperatives (including low-, mid- and high-rise condominiums),
villa developments and single family residences, timeshares, related amenity
operations, which include golf clubs, marinas, tennis facilities, restaurants,
including leisure, hospitality (hotels) and health care services, and any and
all other businesses reasonably related thereto including, but not limited to,
pest control and security services. In addition, Permitted Businesses shall
include the operation of an amenities business and other real estate services
businesses, including but not limited to, title insurance, property management,
mortgage banking, insurance brokerage, E-commerce related businesses and real
estate brokerage.

         "Permitted Investments" means: (1) any Investment in the Company or in
a Restricted Subsidiary of the Company; (2) cash and any Investment in Cash
Equivalents; (3) any Investment by the Company or any Restricted Subsidiary of
the Company in a Person, if as a result of such Investment (a) such Person
becomes a

<PAGE>

                                      -13-

Restricted Subsidiary of the Company or (b) such Person is merged, consolidated
or amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Company or a Restricted Subsidiary of the
Company; (4) any acquisition of assets solely in exchange for the issuance of
Equity Interests (other than Disqualified Stock) of the Company; (5) stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments or pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of a
debtor; (6) Investments in existence on the Issue Date; (7) Investments made in
a simultaneous exchange for a prior Permitted Investment; and (8) the fair
market value of any investment in securities or other assets not constituting
cash or Cash Equivalents received in connection with the sale of assets (a)
where the securities are secured by a first priority lien on the assets sold or
(b) where at least 25% of the consideration for such sale consists of cash or
Cash Equivalents and provided that no more than an aggregate amount of $10.0
million of such securities may be outstanding at any one time under this clause
8(b); and (9) other Investments in an aggregate amount not to exceed $10.0
million at any one time outstanding under this clause (9).

         "Permitted Junior Securities" of a Person means (1) Equity Interests in
such Person and (2) debt securities of such Person that are subordinated to all
Senior Debt (and any debt securities issued in exchange for Senior Debt) of such
Person to substantially the same extent as, or to a greater extent than, the
Notes are subordinated to Senior Debt of the Company.

         "Permitted Refinancing Indebtedness" means any Indebtedness of the
Company or any of its Restricted Subsidiaries issued in exchange for, or the net
proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Company or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided that: (1) the principal amount
(or accreted value, if applicable) of such Permitted Refinancing Indebtedness
does not exceed the principal amount of (or accreted value, if applicable), plus
accrued interest on, the Indebtedness so extended, refinanced, renewed,
replaced, defeased or refunded (plus the amount of reasonable expenses incurred
in connection therewith); unless such excess would be permitted by Section 4.09
hereof; (2) such Permitted Refinancing Indebtedness has a final maturity date
later than the final maturity date of, and has a Weighted Average Life to
Maturity equal to or greater than the Weighted Average Life to Maturity of, the
Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded; (3) if the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded is subordinated in right of payment to the Notes, such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of the indebtedness being extended, refinanced, renewed,
replaced deferred or refunded, and is subordinated in right of payment to the
Notes on terms at least as favorable to the Holders of Notes as those contained
in the documentation governing the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded; and (4) such Indebtedness is incurred
either by the Company or by the Subsidiary who is the obligor on the
Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded.

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

         "Principals" means Alfred Hoffman, Jr., Don E. Ackerman or any of their
affiliates.

         "Private Placement Legend" means the legend set forth in Section
2.06(g)(i) to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

         "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

         "Receivables" means an amount owed with respect to completed sales of
housing units, lots, parcels and amenities services sold to an unaffiliated
purchaser.

<PAGE>

                                      -14-

         "Registration Rights Agreement" means the A/B Exchange Registration
Rights Agreement, dated as of September 29, 2003, by and among the Company and
the other parties named on the signature pages thereof, as such agreement may be
amended, modified or supplemented from time to time and, with respect to any
Additional Notes, one or more registration rights agreements between the Company
and the other parties thereto, as such agreement(s) may be amended, modified or
supplemented from time to time, relating to rights given by the Company to the
purchasers of Additional Notes to register such Additional Notes under the
Securities Act.

         "Regulation S" means Regulation S promulgated under the Securities Act.

         "Regulation S Global Note" means a global Note in the form of Exhibit
A-1 hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of the Depositary and registered in the name of the
Depositary or its nominee, issued in a denomination equal to the outstanding
principal amount of the Notes initially sold in reliance on Rule 903 of
Regulation S.

         "Regulation S Permanent Global Note" means a permanent global Note in
the form of Exhibit A-1 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

         "Regulation S Temporary Global Note" means a temporary global Note in
the form of Exhibit A-2 hereto bearing the Private Placement Legend and
deposited with or on behalf of and registered in the name of the Depositary or
its nominee, issued in a denomination equal to the outstanding principal amount
of the Notes initially sold in reliance on Rule 903 of Regulation S.

         "Related Party" with respect to any Principal means (A) any controlling
stockholder, 80% (or more) owned Subsidiary, or spouse or immediate family
member (in the case of an individual) of such Principal or (B) any trust,
corporation, partnership or other entity, the beneficiaries, stockholders,
partners, owners or Persons beneficially holding an 80% or more controlling
interest of which consist of such Principal and/or such other Persons referred
to in the immediately preceding clause (A).

         "Representative" means the Indenture trustee or other trustee, agent or
representative for any Senior Debt.

         "Responsible Officer," means, when used with respect to the Trustee,
any officer within the corporate trust department of the Trustee, including any
vice president, assistant vice president, assistant treasurer, trust officer or
any other officer of the Trustee who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such
person's knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

         "Restricted Definitive Note" means a Definitive Note bearing the
Private Placement Legend.

         "Restricted Global Note" means a Global Note bearing the Private
Placement Legend.

         "Restricted Investment" means an Investment other than a Permitted
Investment.

         "Restricted Period" means the 40-day restricted period as defined in
Regulation S.

         "Restricted Subsidiary" of a Person means any Subsidiary of the
referent Person that is not an Unrestricted Subsidiary.

<PAGE>

                                      -15-

         "Rule 144" means Rule 144 promulgated under the Securities Act.

         "Rule 144A" means Rule 144A promulgated under the Securities Act.

         "Rule 903" means Rule 903 promulgated under the Securities Act.

         "Rule 904" means Rule 904 promulgated under the Securities Act.

         "SEC" means the Securities and Exchange Commission.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Senior Debt" of any Person means: (1) all Indebtedness of such Person
under Credit Facilities and all Hedging Obligations with respect thereto, (2)
any other Indebtedness of such Person permitted to be incurred under the terms
of this Indenture, unless the instrument under which such Indebtedness is
incurred expressly provides that it is on a parity with or subordinated in right
of payment to the Notes or the Note Guarantees, as the case may be, and (3) all
Obligations with respect to the foregoing.

         Notwithstanding anything to the contrary in the foregoing, Senior Debt
will not include: (a) any liability for federal, state, local or other taxes
owed or owing by such Person, (b) any Indebtedness of such Person to any of its
Subsidiaries or other Affiliates, (c) any trade payables, customer deposits,
reserves and accrued expenses, (d) any Indebtedness that is incurred in
violation of this Indenture, (e) Indebtedness represented by the Notes, the
Guarantees, the Exchange Notes or guarantees relating to the Exchange Notes, (f)
any CDD Obligations, other than that portion of CDD Obligations that is due and
payable at the time of determination and (g) the Existing Notes.

         "Senior Guarantee" means the Guarantees by the Guarantors of
Obligations under the Credit Agreement or other Senior Debt.

         "Shelf Registration Statement" means the Shelf Registration Statement
as defined in the Registration Rights Agreement.

         "Significant Subsidiary" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof except that the standard of significance will be 20% instead of
10%.

         "Stated Maturity" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which such payment of
interest or principal was scheduled to be paid in the original documentation
governing such Indebtedness, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

         "Subordinated Indebtedness" means any Indebtedness which is expressly
subordinated in right of payment to any other Indebtedness provided that
Subordinated Indebtedness shall not include debt which would otherwise be Senior
Debt but for a junior lien on assets of the Company or any of its Subsidiaries.

         "Subsidiary" means, with respect to any Person, (1) any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of that Person (or a combination
thereof) and (2) any partnership (a) the sole general partner or the managing
general partner of

<PAGE>

                                      -16-

which is such Person or a Subsidiary of such Person or (b) the only general
partners of which are such Person or of one or more Subsidiaries of such Person
(or any combination thereof, except in each case with respect to joint ventures
when such Person or Subsidiary of such Person does not exercise control of the
joint venture).

         Notwithstanding the foregoing, the term "Subsidiary" shall not include
any entity referred to in (1) or (2) above to the extent the Company does not
consolidate its interest in any such entity in its consolidated financial
statements prepared in accordance with GAAP. Notwithstanding the immediately
preceding sentence, not-for-profit golf clubs and common interest realty
associations that do not guarantee our Credit Facilities are not Subsidiaries.

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) as in effect on the date on which this Indenture is qualified
under the TIA.

         "Trustee" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

         "U.S. Person" means a U.S. person as defined in Rule 902(o) under the
Securities Act.

         "Unit" means a residence, whether single or part of a multifamily
building, whether completed or under construction, held by the Company or any
Restricted Subsidiary for sale or rental in the ordinary course of business;
provided that the number of Units that are rental Units at the time of
determination shall not exceed 25% of the total Units sold or rented by the
Company and its Restricted Subsidiaries during the immediately preceding twelve
month period.

         "Unrestricted Cash" means all cash of the Company and its Restricted
Subsidiaries which is not allocated for an expenditure or distribution or held
as a deposit for a housing purchase contract or otherwise characterized as a
deposit.

         "Unrestricted Definitive Note" means one or more Definitive Notes that
do not bear and are not required to bear the Private Placement Legend.

         "Unrestricted Global Note" means a permanent global Note substantially
in the form of Exhibit A-1 attached hereto that bears the Global Note Legend and
that has the "Schedule of Exchanges of Interests in the Global Note" attached
thereto, and that is deposited with or on behalf of and registered in the name
of the Depositary, representing a series of Notes that do not bear the Private
Placement Legend.

         "Unrestricted Subsidiary" means any Subsidiary of the Company that is
designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a
board resolution; but only to the extent that such Subsidiary: (1) has no
Indebtedness other than debt that is non-recourse to the Company or any
Restricted Subsidiary, except to the extent that any credit support or guarantee
by the Company or any Restricted Subsidiary may be incurred as Indebtedness and
a Restricted Investment; (2) is not party to any agreement, contract,
arrangement or understanding with the Company or any Restricted Subsidiary of
the Company unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or such Restricted Subsidiary
than those that might be obtained at the time from Persons who are not
Affiliates of the Company; and (3) is a Person with respect to which neither the
Company nor any of its Restricted Subsidiaries has any direct or indirect
obligation (a) to subscribe for additional Equity Interests or (b) to maintain
or preserve such Person's financial condition or to cause such Person to achieve
any specified levels of operating results; unless the maximum amount of such
obligation is treated as a Restricted Investment and such Restricted Investment
may be made at the time of the giving of such obligation.

<PAGE>

                                      -17-

         "Valid Purchase Contract Proceeds" means valid purchase contracts for
condominium units which produce proceeds from sales (net of selling expenses and
contract deposits used for construction costs).

         "Voting Stock" of any Person as of any date means the Capital Stock of
such Person that is at the time entitled to vote in the election of the board of
directors of such Person.

         "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing: (1) the sum
of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment, by (2) the then outstanding principal
amount of such Indebtedness.

         "Wholly Owned Restricted Subsidiary" of any Person means a Restricted
Subsidiary of such Person all of the outstanding Capital Stock or other
ownership interests of which (other than directors' qualifying shares) shall at
the time be owned by such Person or by one or more Wholly Owned Restricted
Subsidiaries of such Person or by such Person and one or more Wholly Owned
Restricted Subsidiaries of such Person.

1.02     Other Definitions.

<TABLE>
<CAPTION>
                                                                                 Defined in
Term                                                                              Section
----                                                                              -------
<S>                                                                              <C>
"Affiliate Transaction"........................................................     4.11
"Authentication Order".........................................................     2.02
"CDD Obligations"..............................................................     4.09
"Change of Control Offer"......................................................     4.15
"Change of Control Payment"....................................................     4.15
"Change of Control Payment Date"...............................................     4.15
"Covenant Defeasance"..........................................................     8.03
"Deficiency Date"..............................................................     4.10
"Event of Default".............................................................     6.01
"incur"........................................................................     4.09
"Legal Defeasance".............................................................     8.02
"Minimum Tangible Net Worth"...................................................     4.10
"Offer"........................................................................     4.10
"Offer Amount".................................................................     4.10
"Paying Agent".................................................................     2.03
"Payment Blockage Notice"......................................................     10.03
"Permitted Debt"...............................................................     4.09
"Registrar"....................................................................     2.03
"Restricted Payments"..........................................................     4.07
</TABLE>

1.03     Incorporation by Reference of Trust Indenture Act.

         Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.

         The following TIA terms used in this Indenture have the following
meanings:

<PAGE>

                                      -18-

         "indenture securities" means the Notes;

         "indenture security Holder" means a Holder of a Note;

         "indenture to be qualified" means this Indenture;

         "indenture trustee" or "institutional trustee" means the Trustee; and

         "obligor" on the Notes and the Note Guarantees means the Company and
the Guarantors, respectively, and any successor obligor upon the Notes and the
Note Guarantees, respectively.

         All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

1.04     Rules of Construction.

         Unless the context otherwise requires:

         (a)      a term has the meaning assigned to it;

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

         (c)      "or" is not exclusive;

         (d)      words in the singular include the plural, and in the plural
include the singular;

         (e)      provisions apply to successive events and transactions; and

         (f)      references to sections of or rules under the Securities Act
shall be deemed to include substitute, replacement of successor sections or
rules adopted by the SEC from time to time.

                                   ARTICLE II

                                    THE NOTES

2.01     Form and Dating.

         (a)      General. The Notes and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit A-1 or A-2 hereto.
The Notes may have notations, legends or endorsements required by law, stock
exchange rule or usage. Each Note shall be dated the date of its authentication.
The Notes shall be in denominations of $1,000 and integral multiples thereof.

         The terms and provisions contained in the Notes shall constitute, and
are hereby expressly made, a part of this Indenture and the Company, the
Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be
controlling.

<PAGE>

                                      -19-

         (b)      Global Notes. Notes issued in global form shall be
substantially in the form of Exhibit Exhibits A-1 or A-2 attached hereto
(including the Global Note Legend thereon and the "Schedule of Exchanges of
Interests in the Global Note" attached thereto). Notes issued in definitive form
shall be substantially in the form of Exhibit A-1 attached hereto (but without
the Global Note Legend thereon and without the "Schedule of Exchanges of
Interests in the Global Note" attached thereto). Each Global Note shall
represent such of the outstanding Notes as shall be specified therein and each
shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of outstanding Notes represented
thereby shall be made by the Trustee or the Custodian, at the direction of the
Trustee, in accordance with instructions given by the Holder thereof as required
by Section 2.06 hereof.

         (c)      Temporary Global Notes. Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of the Regulation S Temporary
Global Note, which shall be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee, at its Corporate Trust Office, as
custodian for the Depositary, and registered in the name of the Depositary or
the nominee of the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The Restricted Period shall be terminated
upon the receipt by the Trustee of (i) a written certificate from the
Depositary, together with copies of certificates from Euroclear and Clearstream
certifying that they have received certification of non-United States beneficial
ownership of 100% of the aggregate principal amount of the Regulation S
Temporary Global Note (except to the extent of any beneficial owners thereof who
acquired an interest therein during the Restricted Period pursuant to another
exemption from registration under the Securities Act and who will take delivery
of a beneficial ownership interest in a 144A Global Note or an IAI Global Note
bearing a Private Placement Legend, all as contemplated by Section 2.06(a)(ii)
hereof), and (ii) an Officers' Certificate from the Company. Following the
termination of the Restricted Period, beneficial interests in the Regulation S
Temporary Global Note shall be exchanged for beneficial interests in Regulation
S Permanent Global Notes pursuant to the Applicable Procedures. Simultaneously
with the authentication of Regulation S Permanent Global Notes, the Trustee
shall cancel the Regulation S Temporary Global Note. The aggregate principal
amount of the Regulation S Temporary Global Note and the Regulation S Permanent
Global Notes may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depositary or its nominee, as the case may
be, in connection with transfers of interest as hereinafter provided.

2.02     Execution and Authentication.

         An Officer shall sign the Notes for the Company by manual or facsimile
signature.

         If an Officer whose signature is on a Note no longer holds that office
at the time a Note is authenticated, the Note shall nevertheless be valid.

         A Note shall not be valid until authenticated by the manual signature
of the Trustee. The signature shall be conclusive evidence that the Note has
been authenticated under this Indenture.

         The Trustee shall authenticate (i) Initial Notes for original issue in
the aggregate principal amount not to exceed $125,000,000, (ii) Additional Notes
and (iii) Exchange Notes (x) in exchange for a like principal amount of Initial
Notes or (y) in exchange for a like principal amount of Additional Notes in each
case upon a written order of the Company in the form of an Officers' Certificate
of the Company (an "Authentication Order"). Each such written order shall
specify the amount of Notes to be authenticated and the date on which the Notes
are to be authenticated, whether the Notes are to be Initial Notes, Exchange
Notes or Additional Notes and whether the Notes are to be issued as certificated
Notes or Global Notes or such other information as the Trustee may

<PAGE>

                                      -20-

reasonably request. In addition, with respect to authentication pursuant to
clauses (ii) or (iii) of the first sentence of this paragraph, the first such
written order from the Company shall be accompanied by an Opinion of Counsel of
the Company in a form reasonably satisfactory to the Trustee.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Notes. An authenticating agent may authenticate Notes
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or the
Company.

         The Trustee shall have the right to decline to authenticate and deliver
any Notes under this Indenture if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith shall determine that such action would expose the Trustee to personal
liability.

2.03     Registrar and Paying Agent.

         The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange ("Registrar") and an
office or agency where Notes may be presented for payment ("Paying Agent"). The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional
paying agents. The term "Registrar" includes any co-registrar and the term
"Paying Agent" includes any additional paying agent. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company shall notify
the Trustee in writing of the name and address of any Agent not a party to this
Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

         The Company initially appoints The Depository Trust Company ("DTC") to
act as Depositary with respect to the Global Notes.

         The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Custodian with respect to the Global Notes.

2.04     Paying Agent to Hold Money in Trust.

         The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or Additional Interest, if any, or interest on the Notes, and
will notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Notes.

2.05     Holder Lists.

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders and shall otherwise comply with TIA Section 312(a). If the Trustee
is not the Registrar, the Company shall furnish to the Trustee at least seven
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such

<PAGE>

                                      -21-

date as the Trustee may reasonably require of the names and addresses of the
Holders of Notes and the Company shall otherwise comply with TIA Section 312(a).

2.06     Transfer and Exchange.

         (a)      Transfer and Exchange of Global Notes. A Global Note may not
be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes
will be exchanged by the Company for Definitive Notes if (i) the Company
delivers to the Trustee notice from the Depositary that it is unwilling or
unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within 120 days after the date of
such notice from the Depositary or (ii) the Company in its sole discretion
determines that the Global Notes (in whole but not in part) should be exchanged
for Definitive Notes and delivers a written notice to such effect to the
Trustee; provided that in no event shall the Regulation S Temporary Global Note
be exchanged by the Company for Definitive Notes prior to (x) the expiration of
the Restricted Period and (y) the receipt by the Registrar of any certificates
required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act. Upon the
occurrence of either of the preceding events in (i) or (ii) above, Definitive
Notes shall be issued in such names as the Depositary shall instruct the
Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as
provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note. A
Global Note may not be exchanged for another Note other than as provided in this
Section 2.06(a), however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

         (b)      Transfer and Exchange of Beneficial Interests in the Global
Notes. The transfer and exchange of beneficial interests in the Global Notes
shall be effected through the Depositary, in accordance with the provisions of
this Indenture and the Applicable Procedures. Beneficial interests in the
Restricted Global Notes shall be subject to restrictions on transfer comparable
to those set forth herein to the extent required by the Securities Act.
Transfers of beneficial interests in the Global Notes also shall require
compliance with either subparagraph (i) or (ii) below, as applicable, as well as
one or more of the other following subparagraphs, as applicable:

                  (i)      Transfer of Beneficial Interests in the Same Global
         Note. Beneficial interests in any Restricted Global Note may be
         transferred to Persons who take delivery thereof in the form of a
         beneficial interest in the same Restricted Global Note in accordance
         with the transfer restrictions set forth in the Private Placement
         Legend; provided that prior to the expiration of the Restricted Period,
         transfers of beneficial interests in the Temporary Regulation S Global
         Note may not be made to a U.S. Person or for the account or benefit of
         a U.S. Person (other than an Initial Purchaser). Beneficial interests
         in any Unrestricted Global Note may be transferred to Persons who take
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note. No written orders or instructions shall be
         required to be delivered to the Registrar to effect the transfers
         described in this Section 2.06(b)(i).

                  (ii)     All Other Transfers and Exchanges of Beneficial
         Interests in Global Notes. In connection with all transfers and
         exchanges of beneficial interests that are not subject to Section
         2.06(b)(i) above, the transferor of such beneficial interest must
         deliver to the Registrar either (A) (1) a written order from a
         Participant or an Indirect Participant given to the Depositary in
         accordance with the Applicable Procedures directing the Depositary to
         credit or cause to be credited a beneficial interest in another Global
         Note in an amount equal to the beneficial interest to be transferred or
         exchanged and (2) instructions given in accordance with the Applicable
         Procedures containing information regarding the Participant account to
         be credited with such increase or (B) (1) a written order from a
         Participant or an

<PAGE>

                                      -22-

         Indirect Participant given to the Depositary in accordance with the
         Applicable Procedures directing the Depositary to cause to be issued a
         Definitive Note in an amount equal to the beneficial interest to be
         transferred or exchanged and (2) instructions given by the Depositary
         to the Registrar containing information regarding the Person in whose
         name such Definitive Note shall be registered to effect the transfer or
         exchange referred to in (1) above; provided that in no event shall
         Definitive Notes be issued upon the transfer or exchange of beneficial
         interests in the Regulation S Temporary Global Note prior to (x) the
         expiration of the Restricted Period and (y) the receipt by the
         Registrar of any certificates required pursuant to Rule 903 under the
         Securities Act. Upon consummation of an Exchange Offer by the Company
         in accordance with Section 2.06(f) hereof, the requirements of this
         Section 2.06(b)(ii) shall be deemed to have been satisfied upon receipt
         by the Registrar of the instructions contained in the Letter of
         Transmittal delivered by the Holder of such beneficial interests in the
         Restricted Global Notes. Upon satisfaction of all of the requirements
         for transfer or exchange of beneficial interests in Global Notes
         contained in this Indenture and the Notes or otherwise applicable under
         the Securities Act, the Trustee shall adjust the principal amount of
         the relevant Global Note(s) pursuant to Section 2.06(h) hereof.

                  (iii)    Transfer of Beneficial Interests in a Restricted
         Global Note to Another Restricted Global Note. A beneficial interest in
         any Restricted Global Note may be transferred to a Person who takes
         delivery thereof in the form of a beneficial interest in another
         Restricted Global Note if the transfer complies with the requirements
         of Section 2.06(b)(ii) above and the Registrar receives the following:

                           (A)      if the transferee will take delivery in the
                  form of a beneficial interest in the 144A Global Note, then
                  the transferor must deliver a certificate in the form of
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                           (B)      if the transferee will take delivery in the
                  form of a beneficial interest in the Regulation S Temporary
                  Global Note or the Regulation S Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications in item (2) thereof; and

                           (C)      if the transferee will take delivery in the
                  form of a beneficial interest in the IAI Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications and certificates and
                  Opinion of Counsel required by item (3) thereof, if
                  applicable.

                  (iv)     Transfer and Exchange of Beneficial Interests in a
         Restricted Global Note for Beneficial Interests in the Unrestricted
         Global Note. A beneficial interest in any Restricted Global Note may be
         exchanged by any holder thereof for a beneficial interest in an
         Unrestricted Global Note or transferred to a Person who takes delivery
         thereof in the form of a beneficial interest in an Unrestricted Global
         Note if the exchange or transfer complies with the requirements of
         Section 2.06(b)(ii) above and:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the holder of the beneficial
                  interest to be transferred, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

<PAGE>

                                      -23-

                           (B)      such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C)      such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a beneficial
                           interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(a)
                           thereof; or

                                    (2)      if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  If any such transfer is effected pursuant to subparagraph (B)
         or (D) above at a time when an Unrestricted Global Note has not yet
         been issued, the Company shall issue and, upon receipt of an
         Authentication Order in accordance with Section 2.02 hereof, the
         Trustee shall authenticate one or more Unrestricted Global Notes in an
         aggregate principal amount equal to the aggregate principal amount of
         beneficial interests transferred pursuant to subparagraph (B) or (D)
         above.

                  Beneficial interests in an Unrestricted Global Note cannot be
         exchanged for, or transferred to Persons who take delivery thereof in
         the form of, a beneficial interest in a Restricted Global Note.

         (c)      Transfer or Exchange of Beneficial Interest in Global Notes
for Definitive Notes.

                  (i)      Beneficial Interests in Restricted Global Notes to
         Restricted Definitive Notes. If any holder of a beneficial interest in
         a Restricted Global Note proposes to exchange such beneficial interest
         for a Restricted Definitive Note or to transfer such beneficial
         interest to a Person who takes delivery thereof in the form of a
         Restricted Definitive Note, then, upon receipt by the Registrar of the
         following documentation:

                           (A)      if the holder of such beneficial interest in
                  a Restricted Global Note proposes to exchange such beneficial
                  interest for a Restricted Definitive Note, a certificate from
                  such holder in the form of Exhibit C hereto, including the
                  certifications in item (2)(a) thereof;

                           (B)      if such beneficial interest is being
                  transferred to a QIB in accordance with Rule 144A under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

<PAGE>

                                      -24-

                           (C)      if such beneficial interest is being
                  transferred to a Non-U.S. Person in an offshore transaction in
                  accordance with Rule 903 or Rule 904 under the Securities Act,
                  a certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (2) thereof;

                           (D)      if such beneficial interest is being
                  transferred pursuant to an exemption from the registration
                  requirements of the Securities Act in accordance with Rule 144
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(a) thereof;

                           (E)      if such beneficial interest is being
                  transferred to an Institutional Accredited Investor in
                  reliance on an exemption from the registration requirements of
                  the Securities Act other than those listed in subparagraphs
                  (B) through (D) above, a certificate to the effect set forth
                  in Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable;

                           (F)      if such beneficial interest is being
                  transferred to the Company or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                           (G)      if such beneficial interest is being
                  transferred pursuant to an effective registration statement
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(c) thereof,

         the Trustee shall cause the aggregate principal amount of the
         applicable Global Note to be reduced accordingly pursuant to Section
         2.06(h) hereof, and the Company shall execute and the Trustee shall
         authenticate and deliver to the Person designated in the instructions a
         Definitive Note in the appropriate principal amount. Any Definitive
         Note issued in exchange for a beneficial interest in a Restricted
         Global Note pursuant to this Section 2.06(c) shall be registered in
         such name or names and in such authorized denomination or denominations
         as the holder of such beneficial interest shall instruct the Registrar
         through instructions from the Depositary and the Participant or
         Indirect Participant. The Trustee shall deliver such Definitive Notes
         to the Persons in whose names such Notes are so registered. Any
         Definitive Note issued in exchange for a beneficial interest in a
         Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear
         the Private Placement Legend and shall be subject to all restrictions
         on transfer contained therein.

                  (ii)     Beneficial Interests in Regulation S Temporary Global
         Note to Definitive Notes. Notwithstanding Sections 2.06(c)(i)(A) and
         (C) hereof, a beneficial interest in the Regulation S Temporary Global
         Note may not be exchanged for a Definitive Note or transferred to a
         Person who takes delivery thereof in the form of a Definitive Note
         prior to (x) the expiration of the Restricted Period and (y) the
         receipt by the Registrar of any certificates required pursuant to Rule
         903(b)(3)(ii)(B) under the Securities Act, except in the case of a
         transfer pursuant to an exemption from the registration requirements of
         the Securities Act other than Rule 903 or Rule 904.

                  (iii)    Beneficial Interests in Restricted Global Notes to
         Unrestricted Definitive Notes. A holder of a beneficial interest in a
         Restricted Global Note may exchange such beneficial interest for an
         Unrestricted Definitive Note or may transfer such beneficial interest
         to a Person who takes delivery thereof in the form of an Unrestricted
         Definitive Note only if:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the holder of such
                  beneficial interest, in

<PAGE>

                                      -25-

                  the case of an exchange, or the transferee, in the case of a
                  transfer, certifies in the applicable Letter of Transmittal
                  that it is not (1) a broker-dealer, (2) a Person participating
                  in the distribution of the Exchange Notes or (3) a Person who
                  is an affiliate (as defined in Rule 144) of the Company;

                           (B)      such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C)      such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a Definitive
                           Note that does not bear the Private Placement Legend,
                           a certificate from such holder in the form of Exhibit
                           C hereto, including the certifications in item (1)(b)
                           thereof; or

                                    (2)      if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           Definitive Note that does not bear the Private
                           Placement Legend, a certificate from such holder in
                           the form of Exhibit B hereto, including the
                           certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  (iv)     Beneficial Interests in Unrestricted Global Notes to
         Unrestricted Definitive Notes. If any holder of a beneficial interest
         in an Unrestricted Global Note proposes to exchange such beneficial
         interest for a Definitive Note or to transfer such beneficial interest
         to a Person who takes delivery thereof in the form of a Definitive
         Note, then, upon satisfaction of the conditions set forth in Section
         2.06(b)(ii) hereof, the Trustee shall cause the aggregate principal
         amount of the applicable Global Note to be reduced accordingly pursuant
         to Section 2.06(h) hereof, and the Company shall execute and the
         Trustee shall authenticate and deliver to the Person designated in the
         instructions a Definitive Note in the appropriate principal amount. Any
         Definitive Note issued in exchange for a beneficial interest pursuant
         to this Section 2.06(c)(iv) shall be registered in such name or names
         and in such authorized denomination or denominations as the holder of
         such beneficial interest shall instruct the Registrar through
         instructions from the Depositary and the Participant or Indirect
         Participant. The Trustee shall deliver such Definitive Notes to the
         Persons in whose names such Notes are so registered. Any Definitive
         Note issued in exchange for a beneficial interest pursuant to this
         Section 2.06(c)(iv) shall not bear the Private Placement Legend.

         (d)      Transfer and Exchange of Definitive Notes for Beneficial
Interests in Global Notes.

                  (i)      Restricted Definitive Notes to Beneficial Interests
         in Restricted Global Notes. If any Holder of a Restricted Definitive
         Note proposes to exchange such Note for a beneficial interest in a
         Restricted Global Note or to transfer such Restricted Definitive Notes
         to a Person who takes delivery

<PAGE>

                                      -26-

         thereof in the form of a beneficial interest in a Restricted Global
         Note, then, upon receipt by the Registrar of the following
         documentation:

                           (A)      if the Holder of such Restricted Definitive
                  Note proposes to exchange such Note for a beneficial interest
                  in a Restricted Global Note, a certificate from such Holder in
                  the form of Exhibit C hereto, including the certifications in
                  item (2)(b) thereof;

                           (B)      if such Restricted Definitive Note is being
                  transferred to a QIB in accordance with Rule 144A under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                           (C)      if such Restricted Definitive Note is being
                  transferred to a Non-U.S. Person in an offshore transaction in
                  accordance with Rule 903 or Rule 904 under the Securities Act,
                  a certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (2) thereof;

                           (D)      if such Restricted Definitive Note is being
                  transferred pursuant to an exemption from the registration
                  requirements of the Securities Act in accordance with Rule 144
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(a) thereof;

                           (E)      if such Restricted Definitive Note is being
                  transferred to an Institutional Accredited Investor in
                  reliance on an exemption from the registration requirements of
                  the Securities Act other than those listed in subparagraphs
                  (B) through (D) above, a certificate to the effect set forth
                  in Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable;

                           (F)      if such Restricted Definitive Note is being
                  transferred to the Company or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                           (G)      if such Restricted Definitive Note is being
                  transferred pursuant to an effective registration statement
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(c) thereof,

         the Trustee shall cancel the Restricted Definitive Note, increase or
         cause to be increased the aggregate principal amount of, in the case of
         clause (A) above, the appropriate Restricted Global Note, in the case
         of clause (B) above, the 144A Global Note, in the case of clause (C)
         above, the Regulation S Global Note, and in all other cases, the IAI
         Global Note.

                  (ii)     Restricted Definitive Notes to Beneficial Interests
         in Unrestricted Global Notes. A Holder of a Restricted Definitive Note
         may exchange such Note for a beneficial interest in an Unrestricted
         Global Note or transfer such Restricted Definitive Note to a Person who
         takes delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note only if:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the Holder, in the case of
                  an exchange, or the transferee, in the case of a transfer,
                  certifies in the applicable Letter of Transmittal that it is
                  not (1) a broker-dealer, (2) a Person participating in the
                  distribution of the Exchange Notes or (3) a Person who is an
                  affiliate (as defined in Rule 144) of the Company;

<PAGE>

                                      -27-

                           (B)      such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C)      such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the Holder of such Definitive
                           Notes proposes to exchange such Notes for a
                           beneficial interest in the Unrestricted Global Note,
                           a certificate from such Holder in the form of Exhibit
                           C hereto, including the certifications in item (1)(c)
                           thereof; or

                                    (2)      if the Holder of such Definitive
                           Notes proposes to transfer such Notes to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in the Unrestricted Global Note,
                           a certificate from such Holder in the form of Exhibit
                           B hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  Upon satisfaction of the conditions of any of the
         subparagraphs in this Section 2.06(d)(ii), the Trustee shall cancel the
         Definitive Notes and increase or cause to be increased the aggregate
         principal amount of the Unrestricted Global Note.

                  (iii)    Unrestricted Definitive Notes to Beneficial Interests
         in Unrestricted Global Notes. A Holder of an Unrestricted Definitive
         Note may exchange such Note for a beneficial interest in an
         Unrestricted Global Note or transfer such Definitive Notes to a Person
         who takes delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note at any time. Upon receipt of a request for
         such an exchange or transfer, the Trustee shall cancel the applicable
         Unrestricted Definitive Note and increase or cause to be increased the
         aggregate principal amount of one of the Unrestricted Global Notes.

                  If any such exchange or transfer from a Definitive Note to a
         beneficial interest is effected pursuant to subparagraphs (ii)(B),
         (ii)(D) or (iii) above at a time when an Unrestricted Global Note has
         not yet been issued, the Company shall issue and, upon receipt of an
         Authentication Order in accordance with Section 2.02 hereof, the
         Trustee shall authenticate one or more Unrestricted Global Notes in an
         aggregate principal amount equal to the principal amount of Definitive
         Notes so transferred.

         (e)      Transfer and Exchange of Definitive Notes for Definitive
Notes. Upon request by a Holder of Definitive Notes and such Holder's compliance
with the provisions of this Section 2.06(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

<PAGE>

                                      -28-

                  (i)      Restricted Definitive Notes to Restricted Definitive
         Notes. Any Restricted Definitive Note may be transferred to and
         registered in the name of Persons who take delivery thereof in the form
         of a Restricted Definitive Note if the Registrar receives the
         following:

                           (A)      if the transfer will be made pursuant to
                  Rule 144A under the Securities Act, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications in item (1) thereof;

                           (B)      if the transfer will be made pursuant to
                  Rule 903 or Rule 904, then the transferor must deliver a
                  certificate in the form of Exhibit B hereto, including the
                  certifications in item (2) thereof; and

                           (C)      if the transfer will be made pursuant to any
                  other exemption from the registration requirements of the
                  Securities Act, then the transferor must deliver a certificate
                  in the form of Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable.

                  (ii)     Restricted Definitive Notes to Unrestricted
         Definitive Notes. Any Restricted Definitive Note may be exchanged by
         the Holder thereof for an Unrestricted Definitive Note or transferred
         to a Person or Persons who take delivery thereof in the form of an
         Unrestricted Definitive Note if:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the Holder, in the case of
                  an exchange, or the transferee, in the case of a transfer,
                  certifies in the applicable Letter of Transmittal that it is
                  not (1) a broker-dealer, (2) a Person participating in the
                  distribution of the Exchange Notes or (3) a Person who is an
                  affiliate (as defined in Rule 144) of the Company;

                           (B)      any such transfer is effected pursuant to
                  the Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C)      any such transfer is effected by a
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the Holder of such Restricted
                           Definitive Notes proposes to exchange such Notes for
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit C hereto,
                           including the certifications in item (1)(d) thereof;
                           or

                                    (2)      if the Holder of such Restricted
                           Definitive Notes proposes to transfer such Notes to a
                           Person who shall take delivery thereof in the form of
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit B hereto,
                           including the certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests, an Opinion of Counsel in form
                  reasonably acceptable to the Company to the effect that such
                  exchange or transfer is in compliance with the Securities Act
                  and that the restrictions on transfer contained herein and in
                  the Private Placement Legend are no longer required in order
                  to maintain compliance with the Securities Act.

<PAGE>

                                      -29-

                  (iii)    Unrestricted Definitive Notes to Unrestricted
         Definitive Notes. A Holder of Unrestricted Definitive Notes may
         transfer such Notes to a Person who takes delivery thereof in the form
         of an Unrestricted Definitive Note. Upon receipt of a request to
         register such a transfer, the Registrar shall register the Unrestricted
         Definitive Notes pursuant to the instructions from the Holder thereof.

         (f)      Exchange Offer. Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
broker-dealers, (y) they are not participating in a distribution of the Exchange
Notes and (z) they are not affiliates (as defined in Rule 144) of the Company,
and accepted for exchange in the Exchange Offer and (ii) Definitive Notes in an
aggregate principal amount equal to the principal amount of the Restricted
Definitive Notes accepted for exchange in the Exchange Offer. Concurrently with
the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.

         (g)      Legends. The following legends shall appear on the face of all
Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

                  (i)      Private Placement Legend.

                           (A)      Except as permitted by subparagraph (B)
                  below, each Global Note and each Definitive Note (and all
                  Notes issued in exchange therefor or substitution thereof)
                  shall bear the legend in substantially the following form:

"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THE NOTE
EVIDENCED HEREBY IN AN OFFSHORE TRANSACTION, (2) AGREES THAT IT WILL NOT WITHIN
TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE
TRANSFER THIS SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B)
INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN
ACCREDITED INVESTOR (AS DEFINED IN RULE 501 (a) (1), (2), (3) or (7) UNDER THE
SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS
BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR
THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT
TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
(IF AVAILABLE), OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY

<PAGE>

                                      -30-

WITHIN ONE YEAR AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED
TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR
OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN,
THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE
MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT."

                           (B)      Notwithstanding the foregoing, any Global
                  Note or Definitive Note issued pursuant to subparagraphs
                  (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f)
                  to this Section 2.06 (and all Notes issued in exchange
                  therefor or substitution thereof) shall not bear the Private
                  Placement Legend.

                  (ii)     Global Note Legend. Each Global Note shall bear a
         legend in substantially the following form:

"THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THIS INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.07 OF THIS INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THIS
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THIS INDENTURE AND (IV) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT
OF THE COMPANY."

                  (iii)    Regulation S Temporary Global Note Legend. The
         Regulation S Temporary Global Note shall bear a legend in substantially
         the following form:

"THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS
SPECIFIED IN THIS INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON."

         (h)      Cancellation and/or Adjustment of Global Notes. At such time
as all beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

<PAGE>

                                      -31-

         (i)      General Provisions Relating to Transfers and Exchanges.

                  (i)      To permit registrations of transfers and exchanges,
         the Company shall execute and the Trustee shall authenticate Global
         Notes and Definitive Notes upon the Company's order or at the
         Registrar's request.

                  (ii)     No service charge shall be made to a holder of a
         beneficial interest in a Global Note or to a Holder of a Definitive
         Note for any registration of transfer or exchange, but the Company may
         require payment of a sum sufficient to cover any transfer tax or
         similar governmental charge payable in connection therewith (other than
         any such transfer taxes or similar governmental charge payable upon
         exchange or transfer pursuant to Sections 2.10, 3.06, 4.10, 4.15 and
         9.05 hereof).

                  (iii)    The Registrar shall not be required to register the
         transfer of or exchange any Note selected for redemption in whole or in
         part, except the unredeemed portion of any Note being redeemed in part.

                  (iv)     All Global Notes and Definitive Notes issued upon any
         registration of transfer or exchange of Global Notes or Definitive
         Notes shall be the valid obligations of the Company, evidencing the
         same debt, and entitled to the same benefits under this Indenture, as
         the Global Notes or Definitive Notes surrendered upon such registration
         of transfer or exchange.

                  (v)      The Company shall not be required (A) to issue, to
         register the transfer of or to exchange any Notes during a period
         beginning at the opening of business 15 days before the day of any
         selection of Notes for redemption under Section 3.02 hereof and ending
         at the close of business on the day of selection, (B) to register the
         transfer of or to exchange any Note so selected for redemption in whole
         or in part, except the unredeemed portion of any Note being redeemed in
         part or (C) to register the transfer of or to exchange a Note between a
         record date and the next succeeding Interest Payment Date.

                  (vi)     Prior to due presentment for the registration of a
         transfer of any Note, the Trustee, any Agent and the Company may deem
         and treat the Person in whose name any Note is registered as the
         absolute owner of such Note for the purpose of receiving payment of
         principal of and interest on such Notes and for all other purposes, and
         none of the Trustee, any Agent or the Company shall be affected by
         notice to the contrary.

                  (vii)    The Trustee shall authenticate Global Notes and
         Definitive Notes in accordance with the provisions of Section 2.02
         hereof.

                  (viii)   All certifications, certificates and Opinions of
         Counsel required to be submitted to the Registrar pursuant to this
         Section 2.06 to effect a registration of transfer or exchange may be
         submitted by facsimile.

                  (ix)     Each Holder agrees to indemnify the Company and the
         Trustee against any liability that may result from the transfer,
         exchange or assignment by such Holder of such Holder's Note in
         violation of any provision of this Indenture and/or applicable Unites
         States Federal or state securities law.

                  (x)      The Trustee shall have no 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 or beneficial owners
         of interests in any Global Note) other than to require delivery of

<PAGE>

                                      -32-

         such certificates and other documentation or evidence as are expressly
         required by, and to do so if and when expressly required by the terms
         of, this Indenture, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

2.07     Replacement Notes.

         If any mutilated Note is surrendered to the Trustee or the Company and
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Note, the Company shall issue and the Trustee, upon receipt of an
Authentication Order, shall authenticate a replacement Note if the Trustee's
requirements are met. An indemnity bond must be supplied by the Holder that is
sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent and any authenticating agent from any loss that
any of them may suffer if a Note is replaced. The Company may charge for its
expenses in replacing a Note.

         Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.

2.08     Outstanding Notes.

         The Notes outstanding at any time are all the Notes authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee in accordance with the provisions hereof, and those described in this
Section as not outstanding. Except as set forth in Section 2.09 hereof, a Note
does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Note; however, Notes held by the Company or a Subsidiary of
the Company shall not be deemed to be outstanding for purposes of Section
3.07(b) hereof.

         If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser.

         If the principal amount of any Note is considered paid under Section
4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.

         If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Notes payable on that date, then on and after that date such
Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest.

2.09     Treasury Notes.

         In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Company, or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company, shall be considered as
though not outstanding, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Notes as to which a Responsible Officer of the Trustee has actual knowledge
are so owned shall be so disregarded.

2.10     Temporary Notes.

         Until certificates representing Notes are ready for delivery, the
Company may prepare and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Notes. Temporary Notes shall be substantially in
the form of certificated Notes but may have variations that the Company
considers appropriate for temporary

<PAGE>

                                      -33-

Notes and as shall be reasonably acceptable to the Trustee. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate definitive
Notes in exchange for temporary Notes.

         Holders of temporary Notes shall be entitled to all of the benefits of
this Indenture.

2.11     Cancellation.

         The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall dispose of
canceled Notes in accordance with its procedures for the disposition of canceled
securities in effect as of the date of such disposition (subject to the record
retention requirement of the Exchange Act). Certification of the disposition of
all canceled Notes shall be delivered to the Company. The Company may not issue
new Notes to replace Notes that it has paid or that have been delivered to the
Trustee for cancellation.

2.12     Defaulted Interest.

         If the Company defaults in a payment of interest on the Notes, it shall
pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof. The Company shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date
of the proposed payment. The Company shall fix or cause to be fixed each such
special record date and payment date, provided that no such special record date
shall be less than 10 days prior to the related payment date for such defaulted
interest. At least 15 days before the special record date, the Company (or, upon
the written request of the Company, the Trustee in the name and at the expense
of the Company) shall mail or cause to be mailed to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.

2.13     CUSIP Numbers.

         The Company in issuing the Notes may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Holders; provided that any such notice may
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 a redemption and
that reliance may be placed only on the other identification numbers printed on
the Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee of any
change in the "CUSIP" numbers.

                                   ARTICLE III

                            REDEMPTION AND PREPAYMENT

3.01     Notices to Trustee.

         If the Company elects to redeem Notes pursuant to the optional
redemption provisions of Section 3.07 hereof, it shall furnish to the Trustee,
at least 30 days but not more than 60 days before a redemption date, an
Officers' Certificate setting forth (i) the clause of this Indenture pursuant to
which the redemption shall occur, (ii) the redemption date, (iii) the principal
amount of Notes to be redeemed and (iv) the redemption price.
<PAGE>

                                      -34-

3.02     Selection of Notes to Be Redeemed.

         If less than all of the Notes are to be redeemed or purchased in an
offer to purchase at any time, the Trustee shall select the Notes to be redeemed
or purchased among the Holders of the Notes in compliance with the requirements
of the principal national securities exchange, if any, on which the Notes are
listed or, if the Notes are not so listed, on a pro rata basis, by lot or in
accordance with any other method the Trustee considers fair and appropriate. In
the event of partial redemption by lot, the particular Notes to be redeemed
shall be selected, unless otherwise provided herein, not less than 30 nor more
than 60 days prior to the redemption date by the Trustee from the outstanding
Notes not previously called for redemption.

         The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of
Notes selected shall be in amounts of $1,000 or whole multiples of $1,000;
except that if all of the Notes of a Holder are to be redeemed, the entire
outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.

3.03     Notice of Redemption.

         At least 30 days but not more than 60 days before a redemption date,
the Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at its registered
address.

         The notice shall identify the Notes (including the CUSIP number, if
any) to be redeemed and shall state:

         (a)      the redemption date;

         (b)      the redemption price;

         (c)      if any Note is being redeemed in part, the portion of the
principal amount of such Note to be redeemed and that, after the redemption date
upon surrender of such Note, a new Note or Notes in principal amount equal to
the unredeemed portion shall be issued upon cancellation of the original Note;

         (d)      the name and address of the Paying Agent;

         (e)      that Notes called for redemption must be surrendered to the
Paying Agent to collect the redemption price;

         (f)      that, unless the Company defaults in making such redemption
payment, interest on Notes called for redemption ceases to accrue on and after
the redemption date;

         (g)      the paragraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being redeemed; and

         (h)      that no representation is made as to the correctness or
accuracy of the CUSIP number, if any, listed in such notice or printed on the
Notes.

         At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided that the Company
shall have delivered to the Trustee, at least 15 days prior to the date of

<PAGE>
                                      -35-

the mailing of such notice, an Officers' Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice
as provided in the preceding paragraph.

3.04     Effect of Notice of Redemption.

         Once notice of redemption is mailed in accordance with Section 3.03
hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. A notice of redemption may not be
conditional.

3.05     Deposit of Redemption Price.

         One Business Day prior to the redemption date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption price of and accrued interest on all Notes to be redeemed on that
date. The Trustee or the Paying Agent shall promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess of
the amounts necessary to pay the redemption price of, and accrued interest on,
all Notes to be redeemed.

         If the Company complies with the provisions of the preceding paragraph,
on and after the redemption date, interest shall cease to accrue on the Notes or
the portions of Notes called for redemption. If a Note is redeemed on or after
an interest record date but on or prior to the related interest payment date,
then any accrued and unpaid interest shall be paid to the Person in whose name
such Note was registered at the close of business on such record date. If any
Note called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption date until
such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

3.06     Notes Redeemed in Part.

         Upon surrender of a Note that is redeemed in part, the Company shall
issue and, upon the Company's written request, the Trustee shall authenticate
for the Holder at the expense of the Company a new Note equal in principal
amount to the unredeemed portion of the Note surrendered.

3.07     Optional Redemption.

         (a)      Except as set forth in clause (b) of this Section 3.07, the
Company shall not have the option to redeem the Notes pursuant to this Section
3.07 prior to October 1, 2008. On or after October 1, 2008, the Company shall
have the option to redeem the Notes, in whole or in part, at the redemption
prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest and Additional Interest, if any, thereon, to the
applicable redemption date, if redeemed during the twelve-month period beginning
on October 1 of the years indicated below:

<TABLE>
<CAPTION>
                        Year                            Percentage
                        ----                            ----------
<S>                                                     <C>
2008...............................................       103.938%
2009...............................................       102.625%
2010...............................................       101.313%
2011 and thereafter................................       100.000%
</TABLE>

         (b)      Notwithstanding the provisions of clause (a) of this Section
3.07, at any time on or prior to October 1, 2006, the Company may on one or more
occasions redeem up to an aggregate of 35% of the principal amount of Notes
issued under this Indenture at a redemption price equal to 107.875% of the
principal amount

<PAGE>
                                      -36-

thereof plus accrued and unpaid interest and Additional Interest thereon, if
any, to the redemption date, with the net cash proceeds of one or more Equity
Offerings of the Company, to the extent the net cash proceeds thereof are
contributed to the Company as a capital contribution to the common equity of the
Company; provided that at least 65% of the aggregate principal amount of the
Notes issued remains outstanding immediately after the occurrence of such
redemption and that such redemption occurs within 90 days of the date of the
closing of such Equity Offering.

         (c)      Any redemption pursuant to this Section 3.07 shall be made
pursuant to the provisions of Section 3.01 through 3.06 hereof.

3.08     Mandatory Redemption.

         The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Notes.

                                   ARTICLE IV

                                    COVENANTS

4.01     Payment of Notes.

         The Company shall pay or cause to be paid the principal of, premium, if
any, and interest on the Notes on the dates and in the manner provided in the
Notes. Principal, premium, if any, and interest shall be considered paid on the
date due if the Paying Agent, if other than the Company or a Subsidiary thereof,
holds as of 12:00 noon Eastern Time on the due date money deposited by the
Company in immediately available funds and designated for and sufficient to pay
all principal, premium, if any, and interest then due. The Company shall pay all
Additional Interest, if any, in the same manner on the dates and in the amounts
set forth in the Registration Rights Agreement.

         The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
1% per annum in excess of the then applicable interest rate on the Notes to the
extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Additional Interest (without regard to any applicable grace period) at the same
rate to the extent lawful.

4.02     Maintenance of Office or Agency.

         The Company shall maintain in the Borough of Manhattan, The City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served. The
Company 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 Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee.

         The Company may also from time to time designate one or more other
offices or agencies where the Notes may be presented or surrendered for any or
all such purposes and may from time to time rescind such

<PAGE>
                                      -37-

designations; provided that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in
the Borough of Manhattan, The City of New York for such purposes. The Company
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.

         The Company hereby designates the Corporate Trust Office of the Trustee
as one such office or agency of the Company in accordance with Section 2.03.

4.03     Reports.

         (a)      Whether or not required by the rules and regulations of the
SEC, so long as any Notes are outstanding, the Company shall furnish to the
Holders of Notes within the time periods specified in the SEC's rules and
regulations (i) all quarterly and annual financial information that would be
required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the
Company and its Subsidiaries were required to file such forms, including a
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" that describes the financial condition and results of operations of
the Company and its consolidated Subsidiaries and, with respect to the annual
information only, a report thereon by the Company's certified independent
accountants and (ii) all current reports that would be required to be filed with
the SEC on Form 8-K if the Company and its Subsidiaries were required to file
such reports. In addition, following consummation of the Exchange Offer, whether
or not required by the rules and regulations of the SEC, the Company shall file
a copy of all such information and reports with the SEC for public availability
within the time periods specified in the SEC's rules and regulations (unless the
SEC will not accept such a filing) and make such information available to
securities analysts and prospective investors upon request if not then publicly
available. The Company shall at all times comply with TIA Section 314(a).
Delivery by the Company of reports, information and documents to the Trustee
pursuant to TIA Section 314(a) shall be for informational purposes only and the
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers'
Certificates).

         (b)      For so long as any Notes remain outstanding, the Company and
the Guarantors shall furnish to the Holders and to prospective investors, upon
their request, the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act.

         (c)      Notwithstanding the foregoing, such requirements shall be
deemed satisfied prior to the commencement of the Exchange Offer or the
effectiveness of the Shelf Registration Statement by the filing with the SEC of
the registration statement relating to the exchange offer and/or the Shelf
Registration Statement, and any amendments thereto, of the Securities; provided
that any such Registration Statement is filed within the time periods specified
in the Registration Rights Agreement.

4.04     Compliance Certificate.

         (a)      The Company shall deliver to the Trustee, within 100 days
after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this
Indenture (or, if a Default or Event of Default shall have occurred, describing
all such Defaults or Events of Default of which he or she may have knowledge and
what action the Company is taking or proposes to take with respect thereto) and
that to the

<PAGE>
                                      -38-

best of his or her knowledge no event has occurred and remains in existence by
reason of which payments on account of the principal of or interest, if any, on
the Notes is prohibited or if such event has occurred, a description of the
event and what action the Company is taking or proposes to take with respect
thereto.

         (b)      So long as not contrary to the then current recommendations of
the American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.03(a) above shall be accompanied by a
written statement of the Company's independent public accountants (who shall be
a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to
their attention that would lead them to believe that the Company has violated
any provisions of Article 4 or Article 5 hereof or, if any such violation has
occurred, specifying the nature and period of existence thereof, it being
understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

         (c)      The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, as soon as possible, and in any event
within five days after any Officer becomes aware of any Default or Event of
Default, an Officers' Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

4.05     Taxes.

         The Company shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or
where the failure to effect such payment is not adverse in any material respect
to the Holders of the Notes.

4.06     Stay, Extension and Usury Laws.

         The Company and each of the Guarantors covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company and
each of the Guarantors (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
shall not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Trustee, but shall suffer and permit the
execution of every such power as though no such law has been enacted.

4.07     Restricted Payments.

         The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly: (i) declare or pay any dividend or make
any other payment or distribution on account of the Company's or any of its
Restricted Subsidiaries' Equity Interests (including, without limitation, any
payment in connection with any merger or consolidation involving the Company or
any of its Restricted Subsidiaries) (other than dividends or distributions
payable in Equity Interests of the Company (other than Disqualified Stock) or
dividends or distributions to the Company or a Restricted Subsidiary of the
Company); (ii) purchase, redeem or otherwise acquire or retire for value
(including, without limitation, in connection with any merger or consolidation
involving the Company) any Equity Interests of the Company or any direct or
indirect parent of the Company (other than any such Equity Interests owned by
the Company, a Wholly Owned Restricted Subsidiary or any Guarantor); (iii) make
any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness that is subordinated to the Notes
or the Note Guarantees, except payments of interest or a payment of principal at
Stated Maturity (other than Indebtedness permitted under clause (vi) of the
second paragraph of Section 4.09 hereof); or (iv) make any Restricted
Investment, (all such payments and other actions set forth in

<PAGE>
                                      -39-

clauses (i) through (iv) above being collectively referred to as "Restricted
Payments"), unless, at the time of and after giving effect to such Restricted
Payment:

         (a)      no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof;

         (b)      the Company would, at the time of such Restricted Payment and
after giving pro forma effect thereto as if such Restricted Payment had been
made at the beginning of the applicable four-quarter period, have been permitted
to incur at least $1.00 of additional Indebtedness pursuant to the Consolidated
Coverage Ratio test or the Consolidated Indebtedness to Consolidated Tangible
Net Worth ratio test set forth in the first paragraph of Section 4.09 hereof;
and

         (c)      such Restricted Payment, together with the aggregate amount of
all other Restricted Payments made by the Company and its Restricted
Subsidiaries after the date of this Indenture plus all Restricted Payments made
since February 20, 2001 until the date of this Indenture that constituted
Restricted Payments under the terms of the indentures relating to the Existing
Notes (excluding Restricted Payments permitted by clauses (ii), (iii), (iv),
(v), (vii), (ix), (x), (xi) and (xii) of the next succeeding paragraph (or, with
respect to Restricted Payments made since February 20, 2001 and prior to the
date of this Indenture, Restricted Payments (as defined in the Existing
Indenture) permitted by clauses (ii), (iii), (iv), (v), (vii), (viii), (x),
(xii), (xiii) and (xiv) of Section 4.07 of the Existing Indenture)), is less
than the sum, without duplication, of

                  (i)      50% of the Consolidated Net Income After Grossed Up
         Preferred Stock Dividends of the Company for the period (taken as one
         accounting period) from December 31, 2000 to the end of the Company's
         most recently ended fiscal quarter for which internal financial
         statements are available at the time of such Restricted Payment (or, if
         such Consolidated Net Income for such period is a deficit, less 100% of
         such deficit), plus

                  (ii)     100% of the aggregate net cash proceeds and the Fair
         Market Value as determined by an independent third party appraiser,
         accounting firm or valuation firm not affiliated with the Company of
         real property or securities constituting a controlling interest in any
         Person received by the Company since February 20, 2001 as a
         contribution to its common equity capital or from the issue or sale of
         Equity Interests of the Company (other than Disqualified Stock) or from
         the issue or sale (other than to a Restricted Subsidiary of the
         Company) of convertible or exchangeable Disqualified Stock or
         convertible or exchangeable debt securities of the Company that have
         been converted into or exchanged for such Equity Interests (other than
         Disqualified Stock), plus

                  (iii)    to the extent that any Restricted Investment, in
         whole or in part, is sold or otherwise liquidated or repaid, redeemed
         or repurchased (or was sold or otherwise liquidated or repaid,
         redeemed, or repurchased since February 20, 2001 to the date of this
         Indenture), the sum of (A) 100% of such cash proceeds and the Fair
         Market Value of other assets that do not otherwise constitute a
         Restricted Investment (net of the cost of disposition or sale, if any,
         and tax liabilities arising from such transaction) up to the aggregate
         amount invested in such Restricted Investment outstanding at such time
         plus (B) 50% of such cash proceeds and the Fair Market Value of other
         assets that do not otherwise constitute a Restricted Investment in
         excess of the aggregate amount invested in such Restricted Investment,
         in each case, to the extent not otherwise included in Consolidated Net
         Income of the Company for such period, plus

                  (iv)     50% of the amount received from any cash dividends,
         cash distributions, cash interest or other cash payments received by
         the Company or a Guarantor since February 20, 2001 from any Restricted
         Investment, to the extent that such dividends or cash distributions
         were not otherwise included

<PAGE>
                                      -40-

         in Consolidated Net Income of the Company for such period or in clause
         (iii) above and excluding any such payments to pay obligations and
         expenses of Restricted Investments such as income taxes which were not
         paid prior to February 20, 2001, plus

                  (v)      to the extent that any Unrestricted Subsidiary of the
         Company is redesignated as a Restricted Subsidiary after the date of
         this Indenture (or was redesignated as a Restricted Subsidiary since
         February 20, 2001 and prior to the date of this Indenture), the Fair
         Market Value of the Company's Investment in such Unrestricted
         Subsidiary as of the date of such redesignation, plus

                  (vi)     100% of the reduction or release since February 20,
         2001 of Indebtedness under Guarantees of the Company or any Restricted
         Subsidiary which are Restricted Investments, to the extent that such
         reduction or release is not due to any payment under such Guarantee,
         plus

                  (vii)    $10.0 million.

         The preceding provisions shall not prohibit: (i) the payment of any
dividend within 60 days after the date of declaration thereof, if at date of
declaration, such payment would have complied with the provisions of this
Indenture; (ii) the redemption, repurchase, retirement, defeasance or other
acquisition of any subordinated Indebtedness of the Company or any Guarantor or
of any Equity Interests of the Company in exchange for, or out of the net cash
proceeds of the substantially concurrent sale, issuance of or contribution for,
(other than to a Restricted Subsidiary of the Company), Equity Interests of the
Company (other than Disqualified Stock); provided that the amount of any such
net cash proceeds that are utilized for any such payment, redemption,
repurchase, retirement, defeasance, other acquisition or dividend or
distribution shall be excluded from clause (c) of the preceding paragraph; (iii)
so long as no Default or Event of Default has occurred and is continuing or
would be caused thereby, the defeasance, redemption, repurchase or other
acquisition of subordinated Indebtedness with the net cash proceeds from an
incurrence of Permitted Refinancing Indebtedness; (iv) so long as no Default or
Event of Default has occurred and is continuing or would be caused thereby, the
payment of any dividend or distribution by a Restricted Subsidiary of the
Company to the holders of its common Equity Interests on a pro rata basis; (v)
so long as no Default or Event of Default has occurred and is continuing or
would be caused thereby, the repurchase, redemption or other acquisition or
retirement for value of any Equity Interests of the Company or any Restricted
Subsidiary of the Company held by any present, former or future employee,
director or Consultant of the Company's (or any of its Restricted Subsidiaries
or any parent of the Company) pursuant to any management equity subscription
agreement or stock option agreement in effect as of the date of this Indenture
or any other similar agreement; provided that the aggregate price paid for all
such repurchased, redeemed, acquired or retired Equity Interests shall not
exceed $2.0 million in any twelve-month period (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 $4.0 million in any
calendar year); provided that such amount in any calendar year may be increased
by an amount not to exceed (A) the cash proceeds from the sale of Equity
Interests of the Company, any parent of the Company or any of its Restricted
Subsidiaries to present, former or future directors, Consultants or employees of
the Company, its Restricted Subsidiaries or any parent of the Company that
occurred since February 20, 2001 (to the extent the cash proceeds from the sale
of such Equity Interest have not otherwise been included in clause (c) of the
immediately preceding paragraph), plus (B) the cash proceeds of key man life
insurance policies received by the Company, its Restricted Subsidiaries or any
parent of the Company since February 20, 2001; and provided that cancellation of
Indebtedness owing to the Company from present, former or future directors,
Consultants, or employees of the Company, any of its Restricted Subsidiaries or
any parent of the Company the proceeds of which were used solely to purchase
Equity Interests of the Company will not be deemed to constitute a Restricted
Payment so long as the value of such Equity Interests issued did not increase
clause (c) of the preceding paragraph; (vi) so long as no Default or Event of
Default has occurred and is continuing or would be caused thereby, Restricted
Investments made after the date of this Indenture having an aggregate Fair
Market Value, taken together with all other Investments made pursuant to this
clause (vi) and,

<PAGE>
                                      -41-

without duplication, Investments made pursuant to the this clause (vi) and,
without duplication, Investments made pursuant to the comparable clause of the
indentures relating to the Existing Notes that are at that time outstanding
(without giving effect to any write-up, write-off or write-down), not to exceed
5% of the Company's Consolidated Tangible Assets as of the end of the fiscal
quarter most recently completed (with Fair Market Value of each Investment being
measured at the time made and without giving effect to subsequent changes in
value); (vii) repurchases of Equity Interests deemed to occur upon exercise of
stock options if such Equity Interests represent a portion of the exercise price
of such options; (viii) so long as no Default or Event of Default has occurred
and is continuing or would be caused thereby, the payment of dividends on the
Company's Capital Stock of up to 6% per annum of the net proceeds received by
the Company in its March, 2002 initial public offering; (ix) Investments in
Unrestricted Subsidiaries that are made with Excluded Contributions; (x)
non-cash Investments in Unrestricted Subsidiaries in the form of administrative,
financial, accounting, management, or other similar services (together with a
non-cash allocation of corporate overhead), in each case in the ordinary course
of business; (xi) so long as no Default or Event of Default has occurred and is
continuing or would be caused thereby, the payment of dividends on Disqualified
Stock which is issued in accordance with Section 4.09 hereof; and (xii)
transactions contemplated by the offering memorandum dated September 24, 2003 in
connection with the issuance of the Notes under the caption "Use of Proceeds".

         The amount of all Restricted Payments (other than cash) shall be the
Fair Market Value on the date of the Restricted Payment of the asset(s) or
securities proposed to be transferred or issued to or by the Company or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment;
provided that, notwithstanding the other provisions of this Indenture, with
respect to this covenant, an MAI appraiser, accounting firm or valuation firm
with experience in such valuation and not affiliated with the Company shall be
required if the fair market value of such Restricted Payment or Restricted
Payments for any series of transactions exceeds $2.0 million. At least
quarterly, the Company shall deliver to the Trustee an Officers' Certificate
stating that all Restricted Payments during such quarter were permitted and
setting forth the basis upon which the calculations required by this Section
4.07 were computed, together with a copy of any fairness opinion or appraisal
required by this Indenture.

         If a Guarantee constituted a Restricted Investment at the time made,
then the payment under such Guarantee shall not constitute an additional
Restricted Investment.

         The Board of Directors may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if such designation would not cause a Default or an
Event of Default. In the event of any such designation, all outstanding
Investments owned by the Company and its Restricted Subsidiaries in the
Subsidiary so designated shall be deemed to be an Investment made as of the time
of such designation and shall reduce the amount available for Restricted
Payments under the first paragraph of this Section 4.07 or Permitted
Investments, as applicable. All such outstanding Investments shall be deemed to
constitute Restricted Investments in an amount equal to the fair market value of
such Investments at the time of such designation. Such designation shall only be
permitted if such Restricted Payment would be permitted at such time and if such
Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. The Board of Directors may redesignate any Unrestricted Subsidiary
to be a Restricted Subsidiary if such redesignation would not cause a Default or
an Event of Default.

         Any such designation by the Board of Directors shall be evidenced to
the Trustee by filing with the Trustee a certified copy of the board resolution
giving effect to such designation and an Officers' Certificate certifying that
such designation complied with the foregoing conditions and was permitted by
this Section 4.07. If, at any time, any Unrestricted Subsidiary would fail to
meet the definition of an Unrestricted Subsidiary, it shall thereafter cease to
be an Unrestricted Subsidiary for purposes of this Indenture and any
Indebtedness of such Subsidiary shall be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date (and, if such Indebtedness is not
permitted to be incurred as of such date under Section 4.09 hereof, the Company
shall be in default of Section 4.09 hereof). The Board of Directors of the
Company may at any time designate any

<PAGE>
                                      -42-

Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such
designation shall be deemed to be an incurrence of Indebtedness by a Restricted
Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation shall only be permitted if (a) such Indebtedness
is permitted under Section 4.09 hereof, calculated on a pro forma basis as if
such designation had occurred at the beginning of the four-quarter reference
period, and (b) no Default or Event of Default would be in existence following
such designation.

4.08     Dividend and Other Payment Restrictions Affecting Subsidiaries.

         The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to: (i) pay dividends or make any other distributions on
its Capital Stock to the Company or any of its Restricted Subsidiaries or with
respect to any other interest or participation in, or measured by, its profits,
or pay any Indebtedness owed to the Company or any of its Restricted
Subsidiaries; (ii) make loans or advances to the Company or any of its
Restricted Subsidiaries; or (iii) transfer any of its properties or assets to
the Company or any of its Restricted Subsidiaries.

         The foregoing restrictions shall not apply to encumbrances or
restrictions existing under or by reason of:

         (a)      any agreement, including with respect to the Existing
Indebtedness, as in effect on the date of this Indenture (and all amendments
thereto, so long as such amendments are not disadvantageous to the holders of
the Notes in any material respect);

         (b)      the Credit Agreement and its related documentation as in
effect as of the date of this Indenture, and any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings thereof; provided that such amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacement or
refinancings are no more restrictive, taken as a whole, with respect to such
dividend and other payment restrictions than those contained in the Credit
Agreement as in effect on the date of this Indenture;

         (c)      this Indenture, the Notes, the Note Guarantees and the
Exchange Notes and related Note Guarantees;

         (d)      applicable law, statute, rule, regulation or governmental
order;

         (e)      any instrument governing Indebtedness or Capital Stock of a
Person acquired by the Company or any of its Restricted Subsidiaries as in
effect at the time of such acquisition (except to the extent such Indebtedness
was incurred in connection with or in contemplation of such acquisition) and any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings thereof, provided that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings thereof are no more restrictive, taken as a whole,
with respect to such dividend and other payment restrictions than those
contained in such instruments at the time of such acquisition, which encumbrance
or restriction is not applicable to any Person, or the properties or assets of
any Person, other than the Person, or the property or assets of the Person, so
acquired; provided that, in the case of Indebtedness, such Indebtedness was
permitted by the terms of this Indenture to be incurred;

         (f)      customary non-assignment provisions in leases, licenses or
contracts entered into in the ordinary course of business and consistent with
past practices;

<PAGE>
                                      -43-

         (g)      purchase money obligations for property acquired in the
ordinary course of business that impose restrictions on the property so acquired
of the nature described in clause (iii) above;

         (h)      any agreement for the sale or other disposition of a
Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending its sale or other disposition;

         (i)      Permitted Refinancing Indebtedness; provided that the
restrictions contained in the agreements governing such Permitted Refinancing
Indebtedness are no more restrictive, taken as a whole, than those contained in
the agreements governing the Indebtedness being refinanced;

         (j)      Liens securing Indebtedness that limit the right of the
Company or any of its Restricted Subsidiaries to dispose of the assets subject
to such Lien;

         (k)      provisions with respect to the disposition or distribution of
assets or property in joint venture agreements, asset sale agreements, stock
sale agreements and other similar agreements entered into in the ordinary course
of business;

         (l)      restrictions on cash or other deposits or net worth imposed by
customers under contracts entered into in the ordinary course of business; and

         (m)      any agreement entered into in connection with the incurrence
of Indebtedness permitted under this Indenture, provided that such agreement,
taken as a whole, is not more restrictive with respect to dividend and other
payment restrictions than those existing as of the date of this Indenture.

4.09     Incurrence of Indebtedness and Issuance of Preferred Stock.

         The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable, contingently or otherwise,
with respect to (collectively, "incur") any Indebtedness (including Acquired
Debt) and the Company shall not issue any Disqualified Stock and shall not
permit any of its Restricted Subsidiaries to issue any shares of preferred
stock; provided that the Company may incur Indebtedness (including Acquired
Debt) or issue Disqualified Stock and any Guarantor may incur Indebtedness or
issue preferred stock if the Consolidated Coverage Ratio for the Company's most
recently ended four full fiscal quarters for which internal financial statements
are available immediately preceding the date on which such additional
Indebtedness is incurred or such Disqualified Stock is issued would have been at
least 2 to 1, or the ratio of the Consolidated Indebtedness less Unrestricted
Cash to Consolidated Tangible Net Worth of the Company is less than 3 to 1, in
each case determined on a pro forma basis (including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been
incurred, or the Disqualified Stock had been issued, as the case may be, at the
beginning of such four-quarter period.

         The first paragraph of this Section 4.09 shall not prohibit the
incurrence of any of the following items of Indebtedness (collectively,
"Permitted Debt"):

                  (i)      the incurrence by the Company and the Guarantors of
         Indebtedness or Disqualified Stock under Credit Facilities in an
         aggregate principal amount at any one time outstanding not to exceed
         the greater of (a) $450.0 million or (b) the amount of the Borrowing
         Base as of the date of such incurrence (with letters of credit being
         deemed to have a principal amount equal to the maximum potential
         liability of the Company and the Guarantors thereunder);

<PAGE>
                                      -44-

                  (ii)     the incurrence by the Company and its Restricted
         Subsidiaries of the Existing Indebtedness;

                  (iii)    the incurrence by the Company and the Guarantors of
         Indebtedness represented by the Notes and the related Note Guarantees
         to be issued on the date of this Indenture and the Exchange Notes and
         the related Note Guarantees to be issued pursuant to the Registration
         Rights Agreement;

                  (iv)     the incurrence by the Company or a Restricted
         Subsidiary of Indebtedness or Disqualified Stock (1) in connection with
         the acquisition of assets or a new Subsidiary or (2) to finance the
         purchase, lease or improvement of property (real or personal) or
         equipment (whether through the direct purchase of assets or the Capital
         Stock of any Person owning such assets); provided that, in the case of
         clause (1), such Indebtedness or Disqualified Stock was incurred by the
         prior owner of such assets or the Company or such Restricted Subsidiary
         prior to such acquisition by the Company or a Restricted Subsidiary and
         was not incurred in connection with, or in contemplation of, such
         acquisition by the Company or a Restricted Subsidiary and in the case
         of clause (2), any such Indebtedness incurred may not exceed the cost
         of such property or equipment; and provided that the principal amount
         (or accreted value, as applicable) of such Indebtedness, together with
         any other outstanding Indebtedness incurred pursuant to this clause
         (iv) and including all Permitted Refinancing Indebtedness incurred to
         refund, refinance or replace any other Indebtedness incurred pursuant
         to this clause (iv) does not exceed $30.0 million;

                  (v)      the incurrence by the Company or any Guarantor of
         Permitted Refinancing Indebtedness in exchange for, or the net proceeds
         of which are used to refund, refinance or replace Indebtedness (other
         than intercompany Indebtedness) that was permitted by this Indenture to
         be incurred under the first paragraph hereof or clauses (ii), (iii),
         (iv), (ix), (xv) or (xvi) of this paragraph;

                  (vi)     the incurrence by the Company or any Restricted
         Subsidiary of intercompany Indebtedness between or among the Company
         and any of its Restricted Subsidiaries; provided that: (A) if the
         Company is the obligor on such Indebtedness, such Indebtedness is
         expressly subordinated to the prior payment in full in cash of all
         Obligations with respect to the Notes; and (B) (1) any subsequent
         issuance or transfer of Equity Interests that results in any such
         Indebtedness being held by a Person other than the Company or a
         Restricted Subsidiary thereof, and (2) any sale or other transfer of
         any such Indebtedness to a Person that is not either the Company or a
         Restricted Subsidiary thereof, shall be deemed, in each case, to
         constitute an incurrence of such Indebtedness by the Company or such
         Restricted Subsidiary, as the case may be, that was not permitted by
         this clause (vi);

                  (vii)    the incurrence by the Company or any Guarantor of
         Hedging Obligations that are incurred for the purpose of fixing or
         hedging interest rate risk with respect to any floating rate
         Indebtedness that is permitted by the terms of this Indenture to be
         outstanding;

                  (viii)   the guarantee by the Company or any Guarantor of
         Indebtedness of the Company or a Restricted Subsidiary of the Company
         that was permitted to be incurred by another provision of this
         covenant;

                  (ix)     the incurrence by the Company or any Guarantor of
         additional Indebtedness in an aggregate principal amount (or accreted
         value, as applicable) at any time outstanding, including all Permitted
         Refinancing Indebtedness incurred to refund, refinance or replace any
         Indebtedness incurred pursuant to this clause (ix), not to exceed $20.0
         million (it being understood that any Indebtedness incurred under this
         clause (ix) shall cease to be deemed incurred or outstanding for
         purposes of this clause (ix) but shall be deemed to be incurred for
         purposes of the first paragraph of this Section 4.09

<PAGE>
                                      -45-

         from and after the first date on which the Company could have incurred
         such Indebtedness under the first paragraph of this Section 4.09
         without reliance upon this clause (ix));

                  (x)      Non-Recourse Financing incurred by the Company or any
         Restricted Subsidiary for the acquisition, development and/or
         improvement of real property or any infrastructure related thereto;
         provided that such Non-Recourse Financing is at the date of acquisition
         or the commencement of the development and/or improvement at least 70%
         of the estimated cost of the assets so acquired, developed or improved;

                  (xi)     the incurrence by the Company or any Restricted
         Subsidiary of direct obligations to repay or guarantee shortfalls in
         payments of bond financing issued by community development districts
         and local government districts to construct infrastructure improvements
         ("CDD Obligations"), provided that the aggregate amount of all CDD
         Obligations of the Company and its Restricted Subsidiaries that is due
         and payable at any one time does not exceed $10.0 million;

                  (xii)    the incurrence by the Company and the Restricted
         Subsidiaries of Indebtedness in connection with letters of credit
         (including, without limitation, letters of credit in respect of
         workers' compensation claims or self insurance), Indebtedness with
         respect to reimbursement type obligations regarding workers
         compensation claims, escrow agreements, bankers' acceptances and surety
         and performance bonds (in each case to the extent that such incurrence
         does not result in the incurrence of any obligation to repay any
         obligation relating to borrowed money), all in the ordinary course of
         business;

                  (xiii)   shares of preferred stock of a Restricted Subsidiary
         issued to the Company or another Restricted Subsidiary; provided that
         any subsequent issuance or transfer of any Capital Stock or any other
         event which results in any such Restricted Subsidiary ceasing to be a
         Restricted Subsidiary or any other subsequent transfer of any such
         shares of preferred stock (except to the Company or another Restricted
         Subsidiary) shall be deemed, in each case to be an issuance of shares
         of preferred stock;

                  (xiv)    Indebtedness arising from agreements of the Company
         or a Restricted Subsidiary providing for indemnification, adjustment of
         purchase price or similar obligations, in each case, incurred or
         assumed in connection with the acquisition or disposition of any
         business, assets or a Subsidiary, other than guarantees of Indebtedness
         incurred by any Person acquiring all or any portion of such business,
         assets or a Subsidiary for the purpose of financing such acquisition;
         provided that such Indebtedness is not reflected on the balance sheet
         of the Company or any Restricted Subsidiary (contingent obligations
         referred to in a footnote to financial statements and not otherwise
         reflected on the balance sheet will not be deemed to be reflected on
         such balance sheet for purposes of this clause (xiv));

                  (xv)     Indebtedness incurred by the Company or any
         Restricted Subsidiary pursuant to any Construction Loan, provided that
         (A) at the time the Construction Loan is entered into or amended to
         include a new project or projects, as the case may be, the Construction
         Loan is not in excess of 85% of the estimated total cost of the
         projects under such Construction Loan taken as a whole, including land
         at fair market value, interest and soft costs (net of unrestricted
         deposits) and (B)(1) at the time any Construction Loan is entered into
         that relates to a single project, there are Valid Purchase Contracts
         Proceeds in excess of 65% of the maximum Construction Loan amount taken
         as a whole or (2) at the time any Construction Loan is entered into
         that relates to more than one project or if an existing Construction
         Loan is amended to include a new project or projects, there are Valid
         Purchase Contracts Proceeds in excess of 70% of the maximum
         Construction Loan amount taken as a whole; provided that under
         clause(B)(2), for each individual project there are Valid Purchase
         Contract Proceeds for such project in excess of 30% of the maximum
         Construction Loan amount for such project, and provided, further, that
         in the event a Default or Event of Default has occurred and is
         continuing or would be caused thereby,

<PAGE>
                                      -46-

         this clause (xv) shall be unavailable to enter into a new Construction
         Loan or amend an existing Construction Loan to include a new project or
         projects; and

                  (xvi)    Indebtedness incurred by the Company or any of its
         Restricted Subsidiaries pursuant to Construction Loans existing as of
         the Issue Date up to the limits of such Construction Loan existing on
         the Issue Date.

         For purposes of determining compliance with this Section 4.09, in the
event that an item of proposed Indebtedness meets the criteria of more than one
of the categories of Permitted Debt described in clauses (i) through (xvi)
above, or is entitled to be incurred pursuant to the first paragraph of this
Section 4.09, the Company will be permitted to classify (and later reclassify)
in whole or in part such item of Indebtedness on the date of its incurrence in
any manner that complies with this Section 4.09. Accrual of interest, accretion
or amortization of original issue discount or the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms will not
be deemed to be an incurrence of Indebtedness for purposes of this Section 4.09;
provided, in each such case, that the amount thereof is included in Consolidated
Interest Incurred of the Company.

         Indebtedness outstanding and not repaid under the Credit Facilities on
the Issue Date shall be deemed to have been incurred under clause (i) of the
second paragraph of this Section 4.09.

4.10     Maintenance of Consolidated Tangible Net Worth.

         If the Company's Consolidated Tangible Net Worth declines below $125.0
million (the "Minimum Tangible Net Worth") at the end of any fiscal quarter, the
Company must deliver an Officers' Certificate to the Trustee within 55 days
after the end of that fiscal quarter (110 days after the end of any fiscal year)
to notify the Trustee. If, on the last day of each of any two consecutive fiscal
quarters (the last day of the second fiscal quarter being referred to as a
"Deficiency Date"), the Company's Consolidated Tangible Net Worth is less than
the Minimum Tangible Net Worth of the Company, then the Company shall make an
offer (an "Offer") to all Holders of Notes to purchase 10% of the aggregate
principal amount of the Notes originally issued (the "Offer Amount") at a
purchase price equal to 100% of the principal amount of the Notes, plus accrued
and unpaid interest and Additional Interest, if any, to the date of purchase;
provided that no such Offer shall be required if, after the Deficiency Date but
prior to the date the Company is required to make the Offer, capital in cash or
Cash Equivalents is contributed for Equity Interests of the Company other than
Disqualified Stock of the Company or its Restricted Subsidiaries sufficient to
increase the Company's Consolidated Tangible Net Worth after giving effect to
such contribution to an amount equal to or above the Minimum Tangible Net Worth.

         The Company shall make the Offer no later than 65 days after each
Deficiency Date (120 days if such Deficiency Date is the last day of the
Company's fiscal year). The Offer is required to remain open for a period of 20
business days following its commencement (unless required to remain open for a
longer period by applicable law). The Company shall purchase the Offer Amount of
the Notes on a designated date no later than five business days after the
termination of the Offer, or if less than the Offer Amount of Notes shall have
been tendered, all Notes then tendered. The Company shall not be obligated to
purchase any Notes unless Holders of Notes of at least 10% of the Offer Amount
shall have tendered and not subsequently withdrawn their Notes for repurchase.

         If the aggregate principal amount of Notes tendered exceeds the Offer
Amount, the Company shall purchase the Notes tendered to it pro rata among the
Notes tendered (with such adjustments as may be appropriate so that only Notes
in denominations of $1,000 and integral multiples thereof shall be purchased).
The Company shall comply with all applicable federal and state securities laws
in connection with each Offer.

<PAGE>
                                      -47-

         In no event will the failure of the Company's Consolidated Tangible Net
Worth to equal or exceed the Minimum Tangible Net Worth at the end of any fiscal
quarter be counted toward the making of more than one Offer. The Company may
reduce the principal amount of Notes to be purchased pursuant to the Offer by
subtracting 100% of the principal amount (excluding premium) of the Notes
acquired, redeemed or called for redemption by the Company prior to the purchase
(otherwise than under this provision). The Company, however, may not credit
Notes that have been previously used as a credit against any obligation to
repurchase Notes pursuant to this provision. Any Offer shall be conducted in
compliance with applicable regulations under the federal securities law,
including Exchange Act Rule 14e-1.

4.11     Transactions with Affiliates.

         The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate involving aggregate consideration in excess of $50,000 (each,
an "Affiliate Transaction"), unless (i) such Affiliate Transaction is on terms
that taken as a whole are not materially less favorable to the Company or the
relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction by the Company or such Restricted Subsidiary with a
person who is not an Affiliate; and (ii) the Company delivers to the Trustee:
(a) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $5.0 million, a
resolution of the Board of Directors set forth in an Officers' Certificate to
the effect that such Affiliate Transaction complies with this Section 4.11 and
has been approved by a majority of the Independent Members of the Board of
Directors or if there are no Independent Members, then such Affiliate
Transaction has received unanimous approval of the Board of Directors and an
opinion as to the fairness to the Holders of such Affiliate Transaction from a
financial point of view issued by an accounting or investment banking firm of
national standing or an appraisal from an MAI appraiser, if appropriate; and (b)
with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $15.0 million, an
opinion as to the fairness to the Holders of such Affiliate Transaction from a
financial point of view issued by an accounting or investment banking firm of
national standing or an appraisal from an MAI appraiser, if appropriate.

         The following items shall not be deemed to be Affiliate Transactions
and therefore shall not be subject to the provisions of the prior paragraph: (1)
any employment, consulting or other compensation agreement entered into by the
Company or any of its Restricted Subsidiaries in the ordinary course of
business; provided that any consulting or other compensation agreement entered
into with a current or former senior officer or director of the Company or any
of its Restricted Subsidiaries providing for the payment of fees in excess of
$100,000 annually per person must be approved by a majority of the disinterested
members of the Board of Directors or the compensation committee thereof or if
there are no such disinterested members by unanimous approval of the Board of
Directors or such committee; (2) transactions between or among the Company
and/or its Restricted Subsidiaries; (3) sales of Equity Interests (other than
Disqualified Stock) to Affiliates of the Company; (4) Restricted Payments that
are permitted by the provisions of this Indenture described under Section 4.07
hereof; (5) the payment of reasonable and customary fees paid to, and indemnity
provided on behalf of, officers, directors, employees or Consultants of the
Company or any Subsidiary; (6) loans in the ordinary course of business to
officers, directors, employees or Consultants which are approved by a majority
of the Independent Members of the Board of Directors of the Company in good
faith or, if there are no Independent Members of the Board of Directors, by a
unanimous vote of the Board of Directors; (7) any agreement as in effect as of
the Issue Date or any amendment or modification thereto (so long as any such
amendment or modification is not disadvantageous to the holders of the Notes in
any material respect) or any transaction contemplated thereby; and (8)
agreements between the Company or any Restricted Subsidiary and officers and
directors of the Company with respect to home purchases pursuant to a home
purchase program available to officers and directors of the Company.

<PAGE>
                                      -48-

4.12     Liens.

         The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, assume or suffer to
exist any Lien of any kind securing Subordinated Indebtedness on any asset now
owned or hereafter acquired or any income or profit therefrom, unless all
payments due under this Indenture and the Notes are secured on an equal and
ratable basis with (or prior to in the case of Liens with respect to
Indebtedness that is subordinated to the Notes) the obligations so secured until
such time as such obligations are no longer secured by a Lien.

4.13     Business Activities.

         The Company shall not, and shall not permit any Restricted Subsidiary
to, engage in any business other than Permitted Businesses, except to such
extent as would not be material to the Company and its Restricted Subsidiaries
taken as a whole.

4.14     Corporate Existence.

         Subject to Article 5 hereof, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect (i) its
corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents
(as the same may be amended from time to time) of the Company or any such
Subsidiary and (ii) the rights (charter and statutory), licenses and franchises
of the Company and its Subsidiaries; provided that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and its Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the
Holders of the Notes.

4.15     Offer to Repurchase Upon Change of Control.

         (a)      Upon the occurrence of a Change of Control, the Company shall
make an offer (a "Change of Control Offer") to each Holder to repurchase all or
any part (equal to $1,000 or an integral multiple thereof) of each Holder's
Notes at a purchase price equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Additional Interest thereon, if
any, to the date of purchase (the "Change of Control Payment"). Within 30 days
following any Change of Control, the Company shall mail a notice to each Holder
stating: (1) that the Change of Control Offer is being made pursuant to this
Section 4.15 and that all Notes tendered will be accepted for payment; (2) the
purchase price and the purchase date, which shall be no earlier than 30 business
days and no later than 60 business days from the date such notice is mailed (the
"Change of Control Payment Date"); (3) that any Note not tendered will continue
to accrue interest; (4) that, unless the Company defaults in the payment of the
Change of Control Payment, all Notes accepted for payment pursuant to the Change
of Control Offer shall cease to accrue interest after the Change of Control
Payment Date; (5) that Holders electing to have any Notes purchased pursuant to
a Change of Control Offer will be required to surrender the Notes, with the form
entitled "Option of Holder to Elect Purchase" on the reverse of the Notes
completed, to the Paying Agent at the address specified in the notice prior to
the close of business on the third Business Day preceding the Change of Control
Payment Date; (6) that Holders will be entitled to withdraw their election if
the Paying Agent receives, not later than the close of business on the second
Business Day preceding the Change of Control Payment Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of Notes delivered for purchase, and a statement that such
Holder is withdrawing his election to have the Notes purchased; and (7) that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an
integral multiple thereof. The Company shall comply with the

<PAGE>
                                      -49-

requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes in connection with a
Change of Control. To the extent that the provisions of any securities laws or
regulations conflict with this Section 4.15, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 4.15 by virtue of such conflict.

         (b)      On the Change of Control Payment Date, the Company shall, to
the extent lawful, (1) accept for payment all Notes or portions thereof properly
tendered pursuant to the Change of Control Offer, (2) deposit with the Paying
Agent an amount equal to the Change of Control Payment in respect of all Notes
or portions thereof so tendered and (3) deliver or cause to be delivered to the
Trustee the Notes so accepted together with an Officers' Certificate stating the
aggregate principal amount of Notes or portions thereof being purchased by the
Company. The Paying Agent shall promptly mail to each Holder of Notes so
tendered payment in an amount equal to the purchase price for the Notes, and the
Trustee shall promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered by such Holder, if any; provided, that each
such new Note shall be in a principal amount of $1,000 or an integral multiple
thereof. The Company shall publicly announce the results of the Change of
Control Offer on or as soon as practicable after the Change of Control Payment
Date.

         Prior to complying with this Section 4.15, but in any event within 90
days following a Change of Control, the Company will either repay all
outstanding Senior Debt or obtain the requisite consents, if any, under all
agreements governing outstanding Senior Debt to permit the repurchase of Notes
required by this Section 4.15.

         (c)      Notwithstanding anything to the contrary in this Section 4.15,
the Company shall not be required to make a Change of Control Offer upon 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 4.15 hereof and all other provisions of this Indenture
applicable to a Change of Control Offer made by the Company and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer.

4.16     No Senior Subordinated Debt.

         Notwithstanding the provisions of Section 4.09 hereof, the Company
shall not incur, create, issue, assume, guarantee or otherwise become liable for
any Indebtedness that is subordinate or junior in right of payment to any Senior
Debt of the Company and senior in any respect in right of payment to the Notes
and no Guarantor shall incur, create, issue, assume, guarantee or otherwise
become liable for any Indebtedness that is subordinate or junior in right of
payment to any Senior Debt of such Guarantor and senior in any respect in right
of payment to such Guarantor's Note Guarantee.

4.17     Limitation on Issuances of Guarantees of Indebtedness.

         The Company shall not permit any of its Restricted Subsidiaries,
directly or indirectly, to Guarantee or pledge any assets to secure the payment
of any other Indebtedness of the Company unless such Restricted Subsidiary
simultaneously executes and delivers a supplemental indenture providing for the
Guarantee of the payment of the Notes by such Restricted Subsidiary, which
Guarantee shall be senior to or pari passu with such Subsidiary's Guarantee of
or pledge to secure such other Indebtedness, unless such other Indebtedness is
Senior Debt, in which case the Guarantee of the Notes may be subordinated to the
Guarantee of such Senior Debt to the same extent as the Notes are subordinated
to such Senior Debt. Notwithstanding the preceding sentence, any Note Guarantee
of the Notes will provide by its terms that it will be automatically and
unconditionally released and discharged if (1) the Company sells or disposes of
all of the assets of any Guarantor, by way of merger, consolidation or
otherwise, (2) the Company sells or disposes of all of the Capital Stock of any
Guarantor, or (3) the Company properly designates any Restricted Subsidiary that
is a Guarantor as an Unrestricted Subsidiary or any

<PAGE>
                                      -50-

Guarantor is released from its Guarantees of Indebtedness of the Company such
that such Guarantor would not be required to provide a Guarantee of the Notes
under this Section 4.17. The form of the Note Guarantee is attached as Exhibit E
hereto.

4.18     Payments for Consent.

         Neither the Company nor any of its Subsidiaries shall, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of
any Holder of Notes for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders of the Notes that
consent, waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or agreement.

                                    ARTICLE V

                                   SUCCESSORS

5.01     Merger, Consolidation, or Sale of Assets.

         Except as otherwise provided in Section 11.06, the Company and any
Guarantor shall not, directly or indirectly, consolidate or merge with or into
(whether or not the Company or such Guarantor is the surviving corporation), or
sell, assign, transfer, convey or otherwise dispose of all or substantially all
of its properties or assets, in one or more related transactions, to another
Person unless: (i) the Company or such Guarantor is the surviving corporation or
the Person formed by or surviving any such consolidation or merger (if other
than the Company or such Guarantor) or to which such sale, assignment, transfer,
conveyance or other disposition shall have been made is a corporation or other
legal entity organized or existing under the laws of the United States, any
state thereof or the District of Columbia; (ii) the Person formed by or
surviving any such consolidation or merger (if other than the Company or such
Guarantor) or the Person to which such sale, assignment, transfer, conveyance or
other disposition shall have been made assumes all the obligations of the
Company or such Guarantor under the Registration Rights Agreement, the Notes and
this Indenture pursuant to a supplemental indenture in a form reasonably
satisfactory to the Trustee; (iii) immediately after such transaction no Default
or Event of Default exists; and (iv) except in the case of a merger of the
Company or a Guarantor with or into a Wholly Owned Restricted Subsidiary of the
Company or a Guarantor, or the merger or consolidation of a Restricted
Subsidiary with or into the Company or a transfer of all or substantially all of
the assets of a Restricted Subsidiary to the Company, the Company or the Person
formed by or surviving any such consolidation or merger (if other than the
Company), or to which such sale, assignment, transfer, conveyance or other
disposition shall have been made will, immediately after such transaction after
giving pro forma effect thereto and any related financing transactions as if the
same had occurred at the beginning of the applicable four-quarter period, be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Consolidated Coverage Ratio test set forth in the first paragraph of Section
4.09 hereof. In addition, the Company shall not, directly or indirectly, lease
all or substantially all of its properties or assets, in one or more related
transactions, to any other Person. The provisions of this Section 5.01 shall not
be applicable to a sale, assignment, transfer, conveyance or other disposition
of assets between or among the Company and the Guarantors.

5.02     Successor Corporation Substituted.

         Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the assets
of the Company in accordance with Section 5.01 hereof, the successor corporation
formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition is
made shall succeed to, and be substituted for (so

<PAGE>
                                      -51-

that from and after the date of such consolidation, merger, sale, lease,
conveyance or other disposition, the provisions of this Indenture referring to
the "Company" shall refer instead to the successor corporation and not to the
Company), and may exercise every right and power of the Company under this
Indenture with the same effect as if such successor Person had been named as the
Company herein; provided that the predecessor Company shall not be relieved from
the obligation to pay the principal of and interest on the Notes except in the
case of a sale, assignment, transfer, conveyance or other disposition of all of
the Company's assets that meets the requirements of Section 5.01 hereof.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

6.01     Events of Default.

         An "Event of Default" occurs if:

         (a)      the Company defaults for 30 days in the payment when due of
interest on, or Additional Interest, if any, with respect to, the Notes (whether
or not prohibited by the subordination provisions of this Indenture);

         (b)      the Company defaults in payment when due of the principal of
or premium, if any, on the Notes (whether or not prohibited by the subordination
provisions of this Indenture);

         (c)      the Company or any of its Restricted Subsidiaries fail to
comply with Sections 4.10, 4.15 or 5.01 hereof;

         (d)      the Company or any of its Subsidiaries fail to comply with any
covenant, representation, warranty or other agreement in this Indenture or the
Notes for 30 days after notice to the Company by the Trustee or the Holders of
at least 25% in aggregate principal amount of Notes (including Additional Notes,
if any) then outstanding voting as a single class;

         (e)      there is a default under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced
any Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of its
Restricted Subsidiaries) (other than Indebtedness owed to the Company or any of
its Restricted Subsidiaries or Non-Recourse Financing to the extent such default
is not due to the default by the Company under any other Indebtedness) whether
such Indebtedness or guarantee now exists, or is created after the date of this
Indenture, if that default: (I) is caused by a failure to pay such Indebtedness
at its stated maturity and such Indebtedness together with other Indebtedness in
default for failure to pay principal at stated maturity (or the maturity of
which as then accelerated) exceeds $10.0 million in the aggregate (a "Payment
Default"); or (II) results in the acceleration of such Indebtedness prior to its
express maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of which has been
so accelerated, aggregates $10.0 million or more;

         (f)      there is failure by the Company or any of its Restricted
Subsidiaries to pay final judgments aggregating in excess of $10.0 million
(except to the extent the judgment or judgments are in respect of Non-Recourse
Financing), which judgments are not paid, discharged or stayed for a period of
60 days;

<PAGE>
                                      -52-

         (g)      the Company or any of its Significant Subsidiaries or any
group of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary pursuant to or within
the meaning of Bankruptcy Law:

                  (i)      commences a voluntary case,

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

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

                  (iv)     makes a general assignment for the benefit of its
         creditors, or

                  (v)      generally is not paying its debts as they become due;
         or

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

                  (i)      is for relief against the Company or any of its
         Significant Subsidiaries or any group of Restricted Subsidiaries that,
         taken together (as of the latest audited consolidated financial
         statements for the Company and its Restricted Subsidiaries), would
         constitute a Significant Subsidiary in an involuntary case;

                  (ii)     appoints a custodian of the Company or any of its
         Significant Subsidiaries or any group of Restricted Subsidiaries that,
         taken together (as of the latest audited consolidated financial
         statements for the Company and its Restricted Subsidiaries), would
         constitute a Significant Subsidiary or for all or substantially all of
         the property of the Company or any of its Significant Subsidiaries or
         any group of Restricted Subsidiaries that, taken together (as of the
         latest audited consolidated financial statements for the Company and
         its Restricted Subsidiaries), would constitute a Significant
         Subsidiary; or

                  (iii)    orders the liquidation of the Company or any of its
         Significant Subsidiaries or any group of Restricted Subsidiaries that,
         taken together (as of the latest audited consolidated financial
         statements for the Company and its Restricted Subsidiaries), would
         constitute a Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days;
or

         (i)      except as permitted by this Indenture, any Note Guarantee
is held in any judicial proceeding to be unenforceable or invalid or shall cease
for any reason to be in full force and effect or any Guarantor, or any Person
acting on behalf of any Guarantor, shall deny or disaffirm its obligations under
such Guarantor's Note Guarantee.

6.02     Acceleration.

         If any Event of Default (other than an Event of Default specified in
clause (g) or (h) of Section 6.01 hereof with respect to the Company, any
Significant Subsidiary or any group of Significant Subsidiaries that, taken as a
whole, would constitute a Significant Subsidiary) occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable immediately.
Notwithstanding the foregoing, if an Event of Default specified in clause (g) or
(h) of Section 6.01 hereof occurs with respect to the Company, any of its
Significant Subsidiaries or any group of Restricted Subsidiaries that, taken
together (as of the latest audited consolidated financial statements for the
Company and

<PAGE>
                                      -53-

its Restricted Subsidiaries), would constitute a Significant Subsidiary, all
outstanding Notes shall be due and payable immediately without further action or
notice. The Holders of a majority in aggregate principal amount of the then
outstanding Notes by written notice to the Trustee may on behalf of all of the
Holders rescind an acceleration and its consequences if the rescission would not
conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal, interest or premium that has become due solely
because of the acceleration) have been cured or waived.

6.03     Other Remedies.

         If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal, premium and Additional
Interest, if any, and interest 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. A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

6.04     Waiver of Past Defaults.

         Holders of not less than a majority in aggregate principal amount of
the then outstanding Notes by notice to the Trustee may on behalf of the Holders
of all of the Notes waive an existing Default or Event of Default and its
consequences hereunder, except a continuing Default or Event of Default in the
payment of the principal of, premium and Additional Interest, if any, or
interest on, the Notes (including in connection with an offer to purchase)
(provided that the Holders of a majority in aggregate principal amount of the
then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration).
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.

6.05     Control by Majority.

         Holders of a majority in principal amount of the then outstanding Notes
may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture that the Trustee determines may be unduly
prejudicial to the rights of other Holders of Notes or that may involve the
Trustee in personal liability.

6.06     Limitation on Suits.

         A Holder of a Note may pursue a remedy with respect to this Indenture
or the Notes only if:

         (a)      the Holder of a Note gives to the Trustee written notice of a
continuing Event of Default;

         (b)      the Holders of at least 25% in principal amount of the then
outstanding Notes make a written request to the Trustee to pursue the remedy;

         (c)      such Holder of a Note or Holders of Notes offer and, if
requested, provide to the Trustee indemnity or security satisfactory to the
Trustee against any loss, liability or expense;

<PAGE>
                                      -54-

         (d)      the Trustee does not comply with the request within 60 days
after receipt of the request and the offer and, if requested, the provision of
indemnity or security; and

         (e)      during such 60-day period the Holders of a majority in
principal amount of the then outstanding Notes do not give the Trustee a
direction inconsistent with the request.

         A Holder of a Note may not use this Indenture to prejudice the rights
of another Holder of a Note or to obtain a preference or priority over another
Holder of a Note.

6.07     Rights of Holders of Notes to Receive Payment.

         Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium and Additional
Interest, if any, and interest on the Note, on or after the respective due dates
expressed in the Note (including in connection with an offer to purchase), or to
bring 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.

6.08     Collection Suit by Trustee.

         If an Event of Default specified in Section 6.01(a) or (b) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of
principal of, premium and Additional Interest, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful,
interest and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

6.09     Trustee May File Proofs of Claim.

         The Trustee is authorized 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 (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall
be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee, and in the event that the Trustee shall consent 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 agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, 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, money, securities and other properties that the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize 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, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

<PAGE>
                                      -55-

6.10     Priorities.

         If the Trustee collects any money pursuant to this Article, it shall
pay out the money in the following order:

                  First: to the Trustee, its agents and attorneys for amounts
         due under Section 7.07 hereof, including payment of all compensation,
         expense and liabilities incurred, and all advances made, by the Trustee
         and the costs and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
         Notes for principal, premium and Additional Interest, if any, and
         interest, ratably, without preference or priority of any kind,
         according to the amounts due and payable on the Notes for principal,
         premium and Additional Interest, if any and interest, respectively; and

                  Third: to the Company or to such party as a court of competent
         jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.10.

6.11     Undertaking for Costs.

         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 a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section does not apply to a suit by the Trustee or a suit by a Holder of a
Note pursuant to Section 6.07 hereof.

                                   ARTICLE VII

                                     TRUSTEE

7.01     Duties of Trustee.

         (a)      If an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

         (b)      Except during the continuance of an Event of Default:

                  (i)      the duties of the Trustee shall be determined solely
         by the express provisions of this Indenture and 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

                  (ii)     in the absence of bad faith on its part, the Trustee
         may conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the

<PAGE>
                                      -56-

         Trustee shall examine the certificates and opinions to determine
         whether or not they conform to the requirements of this Indenture, but
         need not confirm or investigate the accuracy of mathematical
         calculations or other facts stated therein.

         (c)      The Trustee may not be relieved from liabilities for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                  (i)      this paragraph does not limit the effect of paragraph
         (b) of this Section;

                  (ii)     the Trustee shall not be liable for any error of
         judgment made in good faith by a Responsible Officer, unless it is
         proved that the Trustee was negligent in ascertaining the pertinent
         facts; and

                  (iii)    the Trustee shall not be liable with respect to any
         action it takes or omits to take in good faith in accordance with a
         direction received by it pursuant to Section 6.05 hereof.

         (d)      No provision of this Indenture shall require the Trustee to
expend or risk its own funds or incur any liability. The Trustee shall be under
no obligation to exercise any of its rights and powers under this Indenture at
the request of any Holders, unless such Holder shall have offered to the Trustee
security and indemnity satisfactory to it against any loss, liability or
expense.

         (e)      Whether or not therein expressly so provided, every provision
of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b), (c) and (d) of this Section.

         (f)      The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law.

7.02     Rights of Trustee.

         (a)      The Trustee may conclusively rely upon any 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.

         (b)      Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel or both. The Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officers' Certificate or Opinion of Counsel. The Trustee may
consult with counsel of its selection and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection from
liability in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.

         (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.

         (d)      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 the
rights or powers conferred upon it by this Indenture.

         (e)      Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.

<PAGE>
                                      -57-

         (f)      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 shall have offered to the Trustee
security or indemnity reasonably satisfactory to it against the costs, expenses
and liabilities that might be incurred by it in compliance with such request or
direction.

         (g)      The Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but
the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it sees fit, and, if the Trustee shall determine
to make such further inquiry or investigation, it shall be entitled to examine
the books, records and premises of the Company, personally or by agent or
attorney, and shall incur no liability or additional liability of any kind by
reason of such inquiry or investigation.

         (h)      The Trustee shall not be deemed to have notice of any Default
or Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Notes and this Indenture.

         (i)      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.

         (j)      The Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified 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 certificate previously delivered and not superseded.

7.03     Individual Rights of 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 any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

7.04     Trustee's Disclaimer.

         The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture, the Notes or the Note Guarantees,
it shall not be accountable for the Company's use of the proceeds from the Notes
or any money paid to the Company or upon the Company's direction under any
provision of this Indenture, it shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee,
and it shall not be responsible for any statement or recital herein or any
statement in the Notes or any other document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of
authentication.

7.05     Notice of Defaults.

         If a Default or Event of Default occurs and is continuing and if it is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail
to Holders of Notes a notice of the Default or Event of Default within 90 days
after it occurs. Except in the case of a Default or Event of Default in payment
of principal of,

<PAGE>
                                      -58-

premium, if any, or interest on any Note, the Trustee may withhold the notice if
and so long as a trust committee of the board of directors or Responsible
Officers of the Trustee in good faith determines that withholding the notice is
in the interests of the Holders of the Notes.

7.06     Reports by Trustee to Holders of the Notes.

         Within 60 days after each October 15 beginning with the October 15
following the date of this Indenture, and for so long as Notes remain
outstanding, the Trustee shall mail to the Holders of the Notes a brief report
dated as of such reporting date that complies with TIA Section 313(a) (but if no
event described in TIA Section 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with TIA Section 313(b)(2). The Trustee shall also transmit by mail
all reports as required by TIA Section 313(c).

         A copy of each report at the time of its mailing to the Holders of
Notes shall be mailed to the Company and filed with the SEC and each stock
exchange on which the Notes are listed in accordance with TIA Section 313(d).
The Company shall promptly notify the Trustee when the Notes are listed on any
stock exchange or of any delisting thereof.

7.07     Compensation and Indemnity.

         The Company shall pay to the Trustee from time to time such
compensation for its acceptance of this Indenture and services hereunder as the
Company and the Trustee shall agree to in writing from time to time. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee promptly
upon request for all reasonable disbursements, advances and expenses incurred or
made by it in addition to the compensation for its services. Such expenses shall
include the reasonable compensation, disbursements and expenses of the Trustee's
agents and counsel.

         The Company shall indemnify the Trustee and any predecessor Trustee and
their agents against any and all losses, liabilities or expenses incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture, including the costs and expenses of enforcing this
Indenture against the Company (including this Section 7.07) and defending itself
against any claim (whether asserted by the Company or any Holder or any other
person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability or
expense may be attributable to its negligence or willful misconduct. The Trustee
shall notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Company shall not relieve the Company of
its obligations hereunder. The Company shall defend the claim and the Trustee
shall cooperate in the defense. The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company
need not pay for any settlement made without its consent, which shall not be
unreasonably withheld.

         To secure the Company's payment obligations in this Section, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes. Such Lien shall survive the satisfaction and
discharge of this Indenture.

         When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(g) or (h) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

         The Trustee shall comply with the provisions of TIA Section 313(b)(2)
to the extent applicable.

<PAGE>
                                      -59-

         The obligations of the Company under this Section 7.07 shall survive
the satisfaction and discharge of this Indenture and the resignation or removal
of the Trustee.

7.08     Replacement of Trustee.

         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.

         The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Holders of a majority
in principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company in writing. The Company may remove the
Trustee if:

         (a)      the Trustee fails to comply with Section 7.10 hereof;

         (b)      the Trustee is adjudged a bankrupt or an insolvent or an order
for relief is entered with respect to the Trustee under any Bankruptcy Law;

         (c)      a custodian or public officer takes charge of the Trustee or
its property; or

         (d)      the Trustee becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

         If a successor Trustee does not take office within 90 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company, or
the Holders of at least 10% in principal amount of the then outstanding Notes
may, at the expense of the Company, petition any court of competent jurisdiction
for the appointment of a successor Trustee.

         If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10, such Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, provided all sums owing to the
Trustee hereunder have been paid and subject to the Lien provided for in Section
7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.07 hereof shall continue for the
benefit of the retiring Trustee.

7.09     Successor Trustee by Merger, etc.

         If the Trustee consolidates, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation,
the successor corporation without any further act or document shall be the
successor Trustee.

<PAGE>
                                      -60-

7.10     Eligibility; Disqualification.

         There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $100 million
as set forth in its most recent published annual report of condition.

         This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5). The Trustee is subject to
TIA Section 310(b).

7.11     Preferential Collection of Claims Against Company.

         The Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

7.12     Assignment of Rights, Not Assumption of Duties

         Anything herein contained to the contrary notwithstanding, (a) the
Company shall remain liable under each of the agreements to which it is a party
to the extent set forth therein to perform all of its duties and obligations
thereunder to the same extent as if this Indenture had not been executed, (b)
the exercise by the Trustee or the holders of any Notes of any of their rights,
remedies or powers hereunder shall not release the Company from any of its
duties or obligations under each of the agreements to which it is a party and
(c) neither the holders of any Notes nor the Trustee shall have any obligation
or liability under any of the agreements to which the Company is a party by
reason of or arising out of this Indenture, nor shall such holders or the
Trustee be obligated to perform any of the obligations or duties of the Company
thereunder or, except as expressly provided herein with respect to the Trustee,
to take any action to collect or enforce any claim for payment assigned
hereunder or otherwise.

                                  ARTICLE VIII

                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

8.01     Option to Effect Legal Defeasance or Covenant Defeasance.

         The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers' Certificate, at any time, elect to have
either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article Eight.

8.02     Legal Defeasance and Discharge.

         Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes and all
obligations of the Guarantors discharged with respect to the Note Guarantees on
the date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company and the
Guarantors shall be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes and the Note Guarantees, respectively,
which shall thereafter be deemed to be "outstanding" only for the purposes of

<PAGE>
                                      -61-

Section 8.05 hereof and the other Sections of this Indenture referred to in (a)
and (b) below, and to have satisfied all its other obligations under such Notes
and this Indenture (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in Section 8.04 hereof, and as more fully
set forth in such Section, payments in respect of the principal of, premium and
Additional Interest, if any, and interest on such Notes when such payments are
due, (b) the Company's obligations with respect to such Notes under Article 2
and Section 4.02 hereof, (c) the rights, powers, trusts, duties and immunities
of the Trustee hereunder and the Company's and the Guarantors' obligations in
connection therewith and (d) this Article Eight. Subject to compliance with this
Article Eight, the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03 hereof.

8.03     Covenant Defeasance.

         Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company and the Guarantors shall, subject
to the satisfaction of the conditions set forth in Section 8.04 hereof, be
released from its obligations under the covenants contained in Sections 4.07,
4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17 and 4.18 hereof and clause
(iv) of Section 5.01 hereof with respect to the outstanding Notes on and after
the date the conditions set forth in Section 8.04 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 such Notes shall not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Company 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 6.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes shall be unaffected thereby. In addition, upon the
Company's exercise under Section 8.01 hereof of the option applicable to this
Section 8.03 hereof, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 6.01(c) through 6.01(f) and Section 6.01(i) hereof
shall not constitute Events of Default.

8.04     Conditions to Legal or Covenant Defeasance.

         The following shall be the conditions to the application of either
Section 8.02 or 8.03 hereof to the outstanding Notes:

         In order to exercise either Legal Defeasance or Covenant Defeasance:

         (a)      the Company must irrevocably deposit with the Trustee, in
trust, for the benefit of the Holders, cash in United States dollars,
non-callable Government Securities, 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 the principal of, premium and Additional
Interest, if any, and interest on the outstanding Notes on the stated date for
payment thereof or on the applicable redemption date, as the case may be, and
the Company must specify whether the Notes are being defeased to maturity or to
a particular redemption date;

         (b)      in the case of an election under Section 8.02 hereof, the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States reasonably acceptable to the Trustee confirming that (A) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling or (B) since

<PAGE>
                                      -62-

the date of this Indenture, there has been a change in the applicable federal
income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of the outstanding Notes will
not recognize income, gain or loss for federal income tax purposes as a result
of such Legal Defeasance and will be subject to 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 an election under Section 8.03 hereof, the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States reasonably acceptable to the Trustee confirming that the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such Covenant Defeasance and will be subject to 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 incurrence of Indebtedness all or a portion of the proceeds
of which will be used to defease the Notes pursuant to this Article Eight
concurrently with such incurrence) or insofar as Sections 6.01(g) or 6.01(h)
hereof is concerned, at any time in the period ending on the 91st day after the
date of deposit;

         (e)      such Legal Defeasance or Covenant Defeasance shall 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 Company or any
of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound;

         (f)      the Company shall have delivered to the Trustee an Opinion of
Counsel (which may be subject to customary exceptions) to the effect that
assuming no intervening bankruptcy of the Company or any Guarantor between the
date of deposit and the 91st day following the deposit and assuming no Holder is
an "insider" of the Company under applicable Bankruptcy Law, after the 91st day
following the deposit, the trust funds will not be subject to the effect of any
applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally;

         (g)      the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders over any other creditors of the Company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company; and

         (h)      the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

8.05     Deposited Money and Government Securities to be Held in Trust; Other
         Miscellaneous Provisions.

         Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company 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 and Additional Interest, 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 Government
Securities deposited pursuant to Section 8.04 hereof or the

<PAGE>
                                      -63-

principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding Notes.

         Anything in this Article Eight to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the request
of the Company any money or non-callable Government Securities held by it as
provided in Section 8.04 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 8.04(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.

8.06     Repayment to Company.

         Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of, premium, if any,
or interest on any Note and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in the New York Times and The
Wall Street Journal (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

8.07     Reinstatement.

         If the Trustee or Paying Agent is unable to apply any United States
dollars or non-callable Government Securities in accordance with Section 8.02 or
8.03 hereof, as the case may be, by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02 or 8.03
hereof, as the case may be; provided that, if the Company makes any payment of
principal of, premium and Additional Interest, if any, or interest on any Note
following the reinstatement of its obligations, the Company 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.

                                   ARTICLE IX

                        AMENDMENT, SUPPLEMENT AND WAIVER

9.01     Without Consent of Holders of Notes.

         Notwithstanding Section 9.02 of this Indenture, the Company, the
Guarantors and the Trustee may amend or supplement this Indenture, the Note
Guarantees or the Notes without the consent of any Holder of a Note:

         (a)      to cure any ambiguity, defect or inconsistency;
<PAGE>

                                      -64-

         (b)      to provide for uncertificated Notes in addition to or in place
of certificated Notes or to alter the provisions of Article 2 hereof (including
the related definitions) in a manner that does not materially adversely affect
any Holder;

         (c)      to provide for the assumption of the Company's or a
Guarantor's obligations to the Holders of the Notes by a successor to the
Company pursuant to Article 5 or Article 11 hereof;

         (d)      to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the legal
rights hereunder of any Holder of the Notes;

         (e)      to comply with requirements of the SEC in order to effect or
maintain the qualification of this Indenture under the TIA;

         (f)      to provide for the issuance of Additional Notes in accordance
with the limitations set forth in this Indenture as of the date hereof; or

         (g)      to allow any Guarantor to execute a supplemental indenture
and/or a Note Guarantee with respect to the Notes.

         Upon the request of the Company accompanied by a resolution of its
Board of Directors authorizing the execution of any such amended or supplemental
Indenture, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee shall join with the Company and the Guarantors in the
execution of any amended or supplemental Indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

9.02     With Consent of Holders of Notes.

         Except as provided below in this Section 9.02, the Company, the
Guarantors and the Trustee may amend or supplement this Indenture (including
Sections 4.10 and 4.15 hereof), the Note Guarantees and the Notes with the
consent of the Holders of at least a majority in principal amount of the Notes
(including Additional Notes, if any) then outstanding voting as a single class
(including consents obtained in connection with a tender offer or exchange offer
for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof,
any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the principal of, premium and Additional Interest, if
any, or interest on the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this
Indenture, the Note Guarantees or the Notes may be waived with the consent of
the Holders of a majority in principal amount of the then outstanding Notes
(including Additional Notes, if any) voting as a single class (including
consents obtained in connection with a tender offer or exchange offer for, or
purchase of, the Notes).

         Upon the request of the Company accompanied by a resolution of its
Board of Directors authorizing the execution of any such amended or supplemental
Indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by
the Trustee of the documents described in Section 7.02 hereof, the Trustee shall
join with the Company in the execution of such amended or supplemental Indenture
unless such amended or supplemental Indenture directly affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise, in which case
the Trustee may in its discretion, but shall not be obligated to, enter into
such amended or supplemental Indenture.

<PAGE>

                                      -65-

         It shall not be necessary for the consent of the Holders of Notes under
this Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

         After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes (including Additional Notes,
if any) then outstanding voting as a single class may waive compliance in a
particular instance by the Company with any provision of this Indenture or the
Notes. However, without the consent of each Holder affected, an amendment or
waiver under this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

         (a)      reduce the principal amount of Notes whose Holders must
consent to an amendment, supplement or waiver;

         (b)      reduce the principal of or change the fixed maturity of any
Note or alter or waive any of the provisions with respect to the redemption of
the Notes except as provided above with respect to Sections 4.10 and 4.15
hereof;

         (c)      reduce the rate of or change the time for payment of interest,
including default interest, on any Note;

         (d)      waive a Default or Event of Default in the payment of
principal of or premium, if any, or interest 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 (including Additional Notes, if
any) and a waiver of the payment default that resulted from such acceleration);

         (e)      make any Note payable in money other than that stated in the
Notes;

         (f)      make any change in the provisions of this Indenture relating
to waivers of past Defaults or the rights of Holders of Notes to receive
payments of principal of or premium, if any, or interest on the Notes;

         (g)      waive a redemption payment with respect to any Note (other
than a payment required Section 4.10 or Section 4.15 hereof);

         (h)      make any changes in Article 10 hereof if such change would
adversely affect the rights of such Holder of Notes.

         (i)      make any change in the foregoing amendment and waiver
provisions;

         (j)      release any Guarantor from any of its obligations under its
Note Guarantee or this Indenture, except in accordance with the terms of this
Indenture.

         In addition, any amendment to Sections 4.10 and 4.15 shall require the
consent of the Holders of at least 66 2/3% in aggregate principal amount of the
Notes then outstanding if such amendment would adversely affect the rights of
Holders of Notes.

<PAGE>

                                      -66-

9.03     Compliance with Trust Indenture Act.

         Every amendment or supplement to this Indenture or the Notes shall be
set forth in an amended or supplemental indenture that complies with the TIA as
then in effect.

9.04     Revocation and Effect of Consents.

         Until an amendment, supplement or waiver becomes effective, a consent
to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder's Note, even if notation of the consent is not
made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

9.05     Notation on or Exchange of Notes.

         The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company in
exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

         Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

9.06     Trustee to Sign Amendments, etc.

         The Trustee shall sign any amended or supplemental indenture authorized
pursuant to this Article Nine if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company
may not sign an amendment or supplemental indenture until the Board of Directors
approves it. In executing any amended or supplemental indenture, the Trustee
shall be entitled to receive and (subject to Section 7.01 hereof) shall be fully
protected in relying upon, in addition to the documents required by Section
13.04 hereof, an Officer's Certificate and an Opinion of Counsel each stating
that the amendment or supplement is authorized or permitted by this Indenture,
and all conditions precedent for its execution and delivery of the amended or
supplemental indenture by the Trustee have been satisfied.

                                   ARTICLE X

                                  SUBORDINATION

10.01    Agreement to Subordinate.

         The Company agrees, and each Holder by accepting a Note agrees, that
the Indebtedness evidenced by the Notes is subordinated in right of payment, to
the extent and in the manner provided in this Article 10, to the prior payment
in full of all Senior Debt (whether outstanding on the date hereof or hereafter
created, incurred, assumed or guaranteed), and that the subordination is for the
benefit of the holders of Senior Debt, including Senior Debt incurred after the
date of this Indenture.

         A distribution may consist of cash, securities or other property, by
set-off or otherwise.

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                                      -67-

10.02    Liquidation; Dissolution; Bankruptcy.

         Upon any distribution to creditors of the Company in a liquidation or
dissolution of the Company or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, in
an assignment for the benefit of creditors or any marshaling of the Company's
assets and liabilities:

                  (i)      holders of Senior Debt of the Company shall be
         entitled to receive payment in full of all Obligations due in respect
         of such Senior Debt (including interest after the commencement of any
         such proceeding at the rate specified in the applicable Senior Debt)
         before Holders of the Notes shall be entitled to receive any payment
         with respect to the Notes (except that Holders may receive (A)
         Permitted Junior Securities and (B) payments and other distributions
         made from any defeasance trust created pursuant to Section 8.01
         hereof); and

                  (ii)     until all Obligations with respect to Senior Debt (as
         provided in clause (i) above) are paid in full, any distribution to
         which Holders would be entitled but for this Article 10 shall be made
         to holders of Senior Debt (except that Holders of Notes may receive (A)
         Permitted Junior Securities and (B) payments and other distributions
         made from any defeasance trust created pursuant to Section 8.01
         hereof), as their interests may appear.

10.03    Default on Designated Senior Debt.

         (a)      The Company may not make any payment or distribution to the
Trustee or any Holder in respect of Obligations with respect to the Notes and
may not acquire from the Trustee or any Holder any Notes for cash or property
(other than (A) Permitted Junior Securities and (B) payments and other
distributions made from any defeasance trust created pursuant to Section 8.01
hereof) until all principal and other Obligations with respect to the Senior
Debt have been paid in full if:

                  (i)      a default in the payment of any principal or other
         Obligations with respect to Designated Senior Debt occurs and is
         continuing beyond any applicable grace period in the agreement,
         indenture or other document governing such Designated Senior Debt; or

                  (ii)     a default, other than a payment default, on
         Designated Senior Debt occurs and is continuing that then permits
         holders of the Designated Senior Debt to accelerate its maturity and
         the Trustee receives a notice of the default (a "Payment Blockage
         Notice") from a Person who may give it pursuant to Section 10.11 hereof
         or the holders of any Designated Senior Debt. If the Trustee receives
         any such Payment Blockage Notice, no subsequent Payment Blockage Notice
         shall be effective for purposes of this Section unless and until at
         least 360 days shall have elapsed since the delivery of the immediately
         prior Payment Blockage Notice. No nonpayment default that existed or
         was continuing on the date of delivery of any Payment Blockage Notice
         to the Trustee shall be, or be made, the basis for a subsequent Payment
         Blockage Notice unless such default shall have been cured or waived.

         (b)      The Company may and shall resume payments on and distributions
in respect of the Notes and may acquire them upon the earlier of:

                  (i)      in the case of a payment default, the date upon which
         the default is cured or waived, or

                  (ii)     in the case of a default referred to in clause (ii)
         of Section 10.03(a) hereof, the earlier of the date on which such
         non-payment default is cured or waived or 179 days after the Payment
         Blockage Notice is received,

<PAGE>

                                      -68-

unless the maturity of any Designated Senior Debt has been accelerated, if this
Article 10 otherwise permits the payment, distribution or acquisition at the
time of such payment or acquisition. In the event that the Designated Senior
Debt is accelerated because of a default other than a payment default thereunder
in accordance with the terms of such Designated Senior Debt, and such
acceleration has not been rescinded, then the failure to make the payment
required arising from such acceleration shall constitute a payment default.

10.04    Acceleration of Securities.

         If payment of the Notes is accelerated because of an Event of Default,
the Company shall promptly notify holders of Senior Debt of the acceleration.

10.05    When Distribution Must Be Paid Over.

         In the event that the Trustee or any Holder receives any payment of any
Obligations with respect to the Notes (except Permitted Junior Securities or
payments and other distributions made from the defeasance trust described under
Article Eight hereof) when the payment is prohibited by Section 10.03 hereof,
such payment shall be held by the Trustee or such Holder, in trust for the
benefit of, and shall be paid forthwith over and delivered, upon written
request, to, the holders of Senior Debt as their interests may appear or their
Representative under this Indenture or other agreement (if any) pursuant to
which Senior Debt may have been issued, as their respective interests may
appear, for application to the payment of all Obligations with respect to Senior
Debt remaining unpaid to the extent necessary to pay such Obligations in full in
accordance with their terms, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Debt.

         With respect to the holders of Senior Debt, the Trustee undertakes to
perform only such obligations on the part of the Trustee as are specifically set
forth in this Article 10, and no implied covenants or obligations with respect
to the holders of Senior Debt shall be read into this Indenture against the
Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and shall not be liable to any such holders if the
Trustee shall pay over or distribute to or on behalf of Holders or the Company
or any other Person money or assets to which any holders of Senior Debt shall be
entitled by virtue of this Article 10, except if such payment is made as a
result of the willful misconduct or gross negligence of the Trustee.

10.06    Notice by Company.

         The Company shall promptly notify the Trustee and the Paying Agent of
any facts known to the Company that would cause a payment of any Obligations
with respect to the Notes to violate this Article 10, but failure to give such
notice shall not affect the subordination of the Notes to the Senior Debt as
provided in this Article 10.

10.07    Subrogation.

         After all Senior Debt is paid in full and until the Notes are paid in
full, Holders of Notes shall be subrogated (equally and ratably with all other
Indebtedness pari passu with the Notes) to the rights of holders of Senior Debt
to receive distributions applicable to Senior Debt to the extent that
distributions otherwise payable to the Holders of Notes have been applied to the
payment of Senior Debt. A distribution made under this Article 10 to holders of
Senior Debt that otherwise would have been made to Holders of Notes is not, as
between the Company and Holders, a payment by the Company on the Notes.

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                                      -69-

10.08    Relative Rights.

         This Article 10 defines the relative rights of Holders of Notes and
holders of Senior Debt. Nothing in this Indenture shall:

                  (i)      impair, as between the Company and Holders of Notes,
         the obligation of the Company, which is absolute and unconditional, to
         pay principal of and interest on the Notes in accordance with their
         terms;

                  (ii)     affect the relative rights of Holders of Notes and
         creditors of the Company other than their rights in relation to holders
         of Senior Debt; or

                  (iii)    prevent the Trustee or any Holder of Notes from
         exercising its available remedies upon a Default or Event of Default,
         subject to the rights of holders and owners of Senior Debt to receive
         distributions and payments otherwise payable to Holders of Notes.

         If the Company fails because of this Article 10 to pay principal of or
interest on a Note on the due date, the failure is still a Default or Event of
Default.

10.09    Subordination May Not Be Impaired by Company.

         No right of any holder of Senior Debt to enforce the subordination of
the Indebtedness evidenced by the Notes shall be impaired by any act or failure
to act by the Company or any Holder or by the failure of the Company or any
Holder to comply with this Indenture.

10.10    Distribution or Notice to Representative.

         Whenever a distribution is to be made or a notice given to holders of
Senior Debt, the distribution may be made and the notice given to their
Representative.

         Upon any payment or distribution of assets of the Company referred to
in this Article 10, the Trustee and the Holders of Notes shall be entitled to
rely upon any order or decree made by any court of competent jurisdiction or
upon any certificate of such Representative or of the liquidating trustee or
agent or other Person making any distribution to the Trustee or to the Holders
of Notes for the purpose of ascertaining the Persons entitled to participate in
such distribution, the holders of the Senior Debt and other Indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 10.

10.11    Rights of Trustee and Paying Agent.

         Notwithstanding the provisions of this Article 10 or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Notes, unless the Trustee shall have received at its
Corporate Trust Office at least five Business Days prior to the date of such
payment written notice of facts that would cause the payment of any Obligations
with respect to the Notes to violate this Article 10. Only the Company or a
Representative may give the notice. Nothing in this Article 10 shall impair the
claims of, or payments to, the Trustee under or pursuant to Section 7.07 hereof.

         The Trustee in its individual or any other capacity may hold Senior
Debt with the same rights it would have if it were not Trustee. Any Agent may do
the same with like rights.

<PAGE>

                                      -70-

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt and shall not be liable to any such holders if the
Trustee shall in good faith mistakenly pay over or distribute to Holders of
Notes or to the Company or to any other person cash, property or securities to
which any holders of Senior Debt shall be entitled by virtue of this Article 10
or otherwise. With respect to the holders of Senior Debt, the Trustee undertakes
to perform or to observe only such of its covenants or obligations as are
specifically set forth in this Indenture and no implied covenants or obligations
with respect to holders of Senior Debt shall be read into this Indenture against
the Trustee.

10.12    Authorization to Effect Subordination.

         Each Holder of Notes, by the Holder's acceptance thereof, authorizes
and directs the Trustee on such Holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article 10, and appoints the Trustee to act as such Holder's attorney-in-fact
for any and all such purposes. If the Trustee does not file a proper proof of
claim or proof of debt in the form required in any proceeding referred to in
Section 6.09 hereof at least 30 days before the expiration of the time to file
such claim, the Representatives are hereby authorized to file an appropriate
claim for and on behalf of the Holders of the Notes.

10.13    Amendments.

         The provisions of this Article 10 shall not be amended or modified
without the written consent of the holders of all Senior Debt.

                                   ARTICLE XI

                                 NOTE GUARANTEES

11.01    Guarantee.

         Subject to this Article 11, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and
delivered by the Trustee 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 Company hereunder or thereunder, that: (a) the principal
of and interest on the Notes will be promptly paid in full when due, whether at
maturity, by acceleration, redemption or otherwise, and interest on the overdue
principal of and interest on the Notes, if any, if lawful, and all other
obligations of the Company to the Holders or the Trustee hereunder or thereunder
will be promptly paid in full or performed, all in accordance with the terms
hereof and thereof; and (b) in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that 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.
Failing payment when due of any amount so guaranteed or any performance so
guaranteed for whatever reason, the Guarantors shall be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.

         The Guarantors hereby agree that their obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a guarantor. Each Guarantor hereby
waives diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or

<PAGE>

                                      -71-

bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenant that this Note
Guarantee shall not be discharged except by complete performance of the
obligations contained in the Notes and this Indenture.

         If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the
Guarantors, any amount paid by either to the Trustee or such Holder, this Note
Guarantee, to the extent theretofore discharged, 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 until payment in full of all obligations guaranteed hereby. Each
Guarantor further agrees that, as between the Guarantors, on the one hand, and
the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof
for the purposes of this Note Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations (whether or
not due and payable) shall forthwith become due and payable by the Guarantors
for the purpose of this Note Guarantee. The Guarantors shall have the right to
seek contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Guarantee.

11.02    Subordination of Note Guarantee.

         The Obligations of each Guarantor under its Note Guarantee pursuant to
this Article 11 shall be junior and subordinated to the Senior Guarantee of such
Guarantor on the same basis as the Notes are junior and subordinated to Senior
Debt of the Company. For the purposes of the foregoing sentence, the Trustee and
the Holders shall have the right to receive and/or retain payments by any of the
Guarantors only at such times as they may receive and/or retain payments in
respect of the Notes pursuant to this Indenture, including Article Ten hereof.

11.03    Limitation on Guarantor Liability.

         Each Guarantor, and by its acceptance of Notes, each Holder, hereby
confirms that it is the intention of all such parties that the Note Guarantee of
such Guarantor not constitute a fraudulent transfer or conveyance for purposes
of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law to the extent applicable to any
Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
and the Guarantors hereby irrevocably agree that the obligations of such
Guarantor will, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Guarantor that are relevant under such
laws, and after giving effect to any collections from, rights to receive
contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under this Article 11, result
in the obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

11.04    Execution and Delivery of Note Guarantee.

         To evidence its Note Guarantee set forth in Section 11.01, each
Guarantor hereby agrees that a notation of such Note Guarantee substantially in
the form included in Exhibit E shall be endorsed by an Officer of such Guarantor
on each Note authenticated and delivered by the Trustee and that this Indenture
shall be executed on behalf of such Guarantor by an Officer.

         Each Guarantor hereby agrees that its Note Guarantee set forth in
Section 11.01 shall remain in full force and effect notwithstanding any failure
to endorse on each Note a notation of such Note Guarantee.

<PAGE>

                                      -72-

         If an Officer whose signature is on this Indenture or on the Note
Guarantee no longer holds that office at the time the Trustee authenticates the
Note on which a Note Guarantee is endorsed, the Note Guarantee shall be valid
nevertheless.

         The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Note Guarantee set forth
in this Indenture on behalf of the Guarantors.

11.05    Guarantors May Consolidate, etc., on Certain Terms.

         Except as otherwise provided in Section 11.06, no Guarantor may
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person whether or not affiliated with such Guarantor
unless:

         (a)      subject to Section 11.06 hereof, the Person formed by or
surviving any such consolidation or merger (if other than a Guarantor or the
Company) unconditionally assumes all the obligations of such Guarantor, pursuant
to a supplemental indenture in form and substance reasonably satisfactory to the
Trustee, under the Notes, this Indenture and the Note Guarantee on the terms set
forth herein or therein; and

         (b)      immediately after giving effect to such transaction, no
Default or Event of Default exists.

         In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the Note
Guarantee endorsed upon the Notes and the due and punctual performance of all of
the covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person shall succeed to and be substituted for the Guarantor with
the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Note Guarantees to be
endorsed upon all of the Notes issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee. All the Note
Guarantees so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Note Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all of such Note
Guarantees had been issued at the date of the execution hereof.

         Except as set forth in Articles 4 and 5 hereof, and notwithstanding
clauses (a) and (b) above, nothing contained in this Indenture or in any of the
Notes shall prevent any consolidation or merger of a Guarantor with or into the
Company or another Guarantor, or shall prevent any sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor.

11.06    Releases Following Sale of Assets.

         In the event of a sale or other disposition of all of the assets of any
Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all of the Capital Stock of any Guarantor, or the Company
properly designates any Restricted Subsidiary that is a Guarantor as an
Unrestricted Subsidiary or any Guarantor is released from its Guarantees of
Indebtedness of the Company such that such Guarantor would not be required to
provide a Guarantee of the Notes under Section 4.17 hereof, then such Guarantor
(in the event of a sale or other disposition, by way of merger, consolidation or
otherwise, of all of the Capital Stock of such Guarantor) or the corporation
acquiring the property (in the event of a sale or other disposition of all or
substantially all of the assets of such Guarantor) will be released and relieved
of any obligations under its Note Guarantee; provided that the net proceeds of
such sale or other disposition are applied in accordance with the applicable
provisions of this Indenture. Upon delivery by the Company to the Trustee of an
Officers' Certificate and an Opinion of Counsel to the effect that such sale or
other disposition was made by the Company in accordance

<PAGE>

                                      -73-

with the provisions of this Indenture, the Trustee shall execute any documents
reasonably required in order to evidence the release of any Guarantor from its
obligations under its Note Guarantee.

         Any Guarantor not released from its obligations under its Note
Guarantee shall remain liable for the full amount of principal of and interest
on the Notes and for the other obligations of any Guarantor under this Indenture
as provided in this Article 11.

                                  ARTICLE XII

                           SATISFACTION AND DISCHARGE

12.01    Satisfaction and Discharge.

         This Indenture will be discharged and will cease to be of further
effect as to all Notes issued hereunder, when:

         (a)      either:

                  (i)      all Notes that have been authenticated (except lost,
         stolen or destroyed Notes that have been replaced or paid and Notes for
         whose payment money has theretofore been deposited in trust and
         thereafter repaid to the Company) have been delivered to the Trustee
         for cancellation; or

                  (ii)     all Notes that have not been delivered to the Trustee
         for cancellation have become due and payable by reason of the making of
         a notice of redemption or otherwise or will become due and payable
         within one year and the Company or any Guarantor has irrevocably
         deposited or caused to be deposited with the Trustee as trust funds in
         trust solely for the benefit of the Holders, cash in U.S. dollars,
         non-callable Government Securities, or a combination thereof, in such
         amounts as will be sufficient without consideration of any reinvestment
         of interest, to pay and discharge the entire indebtedness on the Notes
         not delivered to the Trustee for cancellation for principal, premium
         and Additional Interest, if any, and accrued interest to the date of
         maturity or redemption;

         (b)      no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such
deposit and such deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Company or any
Guarantor is a party or by which the Company or any Guarantor is bound;

         (c)      the Company or any Guarantor has paid or caused to be paid all
sums payable by it under this Indenture; and

         (d)      the Company has delivered irrevocable instructions to the
Trustee under this Indenture to apply the deposited money toward the payment of
the Notes at maturity or the redemption date, as the case may be.

In addition, the Company must deliver an Officers' Certificate and an Opinion of
Counsel to the Trustee stating that all conditions precedent to satisfaction and
discharge have been satisfied.

         Notwithstanding the satisfaction and discharge of this Indenture, if
money shall have been deposited with the Trustee pursuant to subclause (ii) of
clause (a) of this Section, the provisions of Section 12.02 and Section 8.06
shall survive.

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                                      -74-

12.02    Application of Trust Money.

         Subject to the provisions of Section 8.06, all money deposited with the
Trustee pursuant to Section 12.01 shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its
own Paying Agent) as the Trustee may determine, to the Persons entitled thereto,
of the principal (and premium, if any) and interest for whose payment such money
has been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

         If the Trustee or Paying Agent is unable to apply any money or
Government Securities in accordance with Section 12.01 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's and any Guarantor's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 12.01; provided that if the Company has made any payment of principal
of, premium and Additional Interest, if any, or interest on any Notes because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

                                  ARTICLE XIII

                                  MISCELLANEOUS

13.01    Trust Indenture Act Controls.

         If any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by TIA Section 318(c), the imposed duties shall control.

13.02    Notices.

         Any notice or communication by the Company, any Guarantor or the
Trustee to the others is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified, return receipt requested),
telecopier or overnight air courier guaranteeing next day delivery, to the
others' address:

         If to the Company and/or any Guarantor:

         WCI Communities, Inc.
         24301 Walden Center Drive
         Suite 300
         Bonita Springs, Florida 34134
         Telecopier No.: (941) 498-8277
         Attention: Vivien N. Hastings, Esq.

         With a copy to:

<PAGE>

                                      -75-

         Simpson Thacher & Bartlett LLP
         425 Lexington Avenue
         New York, NY 10017
         Telecopier No.: (212) 455-2502
         Attention: John Tehan, Esq.

         If to the Trustee:

         The Bank of New York
         101 Barclay Street, Floor 8W
         New York, NY 10286
         Telecopier No.: (212) 815-5707
         Attention: Corporate Trust Administration, Ref: WCI Notes due 2013

         The Company, any Guarantor or the Trustee, by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

         All notices and communications (other than those sent to Holders) shall
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery, and effective only upon actual receipt.

         Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA Section 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

         If a notice or communication is mailed to a Holder in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it.

         If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.

13.03    Communication by Holders of Notes with Other Holders of Notes.

         Holders may communicate pursuant to TIA Section 312(b) with other
Holders with respect to their rights under this Indenture or the Notes. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA Section 312(c).

13.04    Certificate and Opinion as to Conditions Precedent.

         Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

         (a)      an Officers' Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 13.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied; and

<PAGE>

                                      -76-

         (b)      an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 13.05 hereof) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied.

13.05    Statements Required in Certificate or Opinion.

         Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

         (a)      a statement that the Person making such certificate or opinion
has read such covenant or condition;

         (b)      a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

         (c)      a statement that, in the opinion of such Person, he or she has
made such examination or investigation as is necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been
satisfied; and

         (d)      a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been satisfied.

13.06    Rules by Trustee and Agents.

         The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

13.07    No Personal Liability of Directors, Officers, Employees and
         Stockholders.

         No past, present or future director, officer, employee, incorporator or
stockholder of the Company or any Guarantor, as such, shall have any liability
for any obligations of the Company or any Guarantor under the Notes, the Note
Guarantees, this Indenture 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 issuance of the Notes.

13.08    Governing Law; Submission to Jurisdiction.

         THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. The parties
to this Indenture each hereby irrevocably submits to the non-exclusive
jurisdiction of any New York State or federal court sitting in the Borough of
Manhattan in The City of New York in any action or proceeding arising out of or
relating to the Notes, the Guarantees or this Indenture, and all such parties
hereby irrevocably agree that all claims in respect of such action or proceeding
may be heard and determined in such New York State or federal court and hereby
irrevocably waive, to the fullest extent that they may legally do so, the
defense of an inconvenient forum to the maintenance of such action or
proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES,
THE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

<PAGE>

                                      -77-

13.09    No Adverse Interpretation of Other Agreements.

         This Indenture may not be used to interpret any other indenture, loan
or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

13.10    Successors.

         All agreements of the Company in this Indenture and the Notes shall
bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors. All agreements of each Guarantor in this Indenture shall bind
its successors, except as otherwise provided in Section 11.05.

13.11    Severability.

         In case any provision in this Indenture or in the Notes shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

13.12    Counterpart 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.

13.13    Table of Contents, Headings, etc.

         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 shall in
no way modify or restrict any of the terms or provisions hereof.

                         [Signatures on following page]

<PAGE>

                                   SIGNATURES

Dated as of September 29, 2003

                                   WCI COMMUNITIES, INC.

                                   BY: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                     S-1

<PAGE>

                                   Bay Colony-Gateway, Inc.

                                   By: __________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Community Specialized Services, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Financial Resources Group, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   First Fidelity Title, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Florida Lifestyle Management Company

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   WCI Capital Corporation

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                     S-2

<PAGE>

                                   Livingston Road, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Sun City Center Golf Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Sun City Center Realty, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Watermark Realty, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   The Colony At Pelican Landing Golf Club, Inc.

                                   By: ________________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Communities Amenities, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      S-3

<PAGE>

                                   Communities Home Builders, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Gateway Communications Services, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   JYC Holdings, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Marbella at Pelican Bay, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Pelican Landing Golf Resort Ventures, Inc.

                                   By: ______________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Sarasota Tower, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      S-4

<PAGE>

                                   Tarpon Cove Yacht & Racquet Club, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Tiburon Golf Ventures, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   WCI Architecture & Land Planning, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Watermark Realty Referral, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   WCI Communities Property Management, Inc.

                                   By: _____________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   WCI Golf Group, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   WCI Realty, Inc.

                                      S-5

<PAGE>

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Bay Colony Realty Associates, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Bay Colony of Naples, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Coral Ridge Communities, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Coral Ridge Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Coral Ridge Realty, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      S-6

<PAGE>

                                   Coral Ridge Realty Sales, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Florida National Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Gateway Communities, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Gateway Realty Sales, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Heron Bay, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Heron Bay Golf Course Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      S-7

<PAGE>

                                   Pelican Bay Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Pelican Landing Communities, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Pelican Landing Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Pelican Marsh Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Tarpon Cove Realty, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   WCI Homes, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      S-8

<PAGE>

                                   Communities Finance Company, LLC

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Florida Design Communities, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      S-9

<PAGE>

                                   THE BANK OF NEW YORK
                                      as Trustee

                                   BY: ___________________________________
                                       NAME:
                                       TITLE:

                                      S-10

<PAGE>

                                   EXHIBIT A-1

                                 [FACE OF NOTE]

CUSIP No.
ISIN No.

         7-7/8% [Series A] [Series B] Senior Subordinated Notes due 2013

No. ___                                                           $____________

                              WCI COMMUNITIES, INC.

promises to pay to _____________________________________________________________

or registered assigns,

the principal sum of ___________________________________________________________

Dollars on October 1, 2013.

Interest Payment Dates: April 1 and October 1

Record Dates: March 15 and September 15

                                         WCI COMMUNITIES, INC.

                                         By: ________________________________
                                             Name:
                                             Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

Dated: _____________, ____

THE BANK OF NEW YORK,
   as Trustee

By: __________________________
Authorized Signatory

                                     A-1-1

<PAGE>

                                 [BACK OF NOTE]

         7-7/8% [SERIES A] [SERIES B] SENIOR SUBORDINATED NOTES DUE 2013

[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions
of the Indenture]

         Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

         1.       INTEREST. WCI Communities, Inc., a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Note at
7-7/8% per annum from September 29, 2003 until maturity and shall pay the
Additional Interest payable pursuant to Section 5 of the Registration Rights
Agreement referred to below. The Company will pay interest and Additional
Interest semi-annually in arrears on October 1 and April 1 of each year, or if
any such day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"). Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment
of interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be April 1, 2004. The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at a rate that is 1% per annum in excess of the rate then in effect; it
shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

         2.       METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) and Additional Interest to the Persons who are
registered Holders of Notes at the close of business on the March 15 or
September 15 next preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted
interest. The Notes will be payable as to principal, premium and Additional
Interest, if any, and interest at the office or agency of the Company maintained
for such purpose within or without The City and State of New York, or, at the
option of the Company, payment of interest and Additional Interest may be made
by check mailed to the Holders at their addresses set forth in the register of
Holders, and provided that payment by wire transfer of immediately available
funds will be required with respect to principal of and interest, premium and
Additional Interest on, all Global Notes and all other Notes the Holders of
which shall have provided wire transfer instructions to the Company or the
Paying Agent at least five Business Days prior to the applicable payment date.
Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts.

         3.       AGENT AND REGISTRAR. Initially, The Bank of New York, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company
may change any Paying Agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

         4.       INDENTURE. The Company issued the Notes under an Indenture
dated as of September 29, 2003 ("Indenture") between the Company, the Guarantors
listed on the signature page therein (the "Guarantors") 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 of 1939, as amended (15
U.S. Code Sections 77aaa-77bbbb). The

                                     A-1-2

<PAGE>

Notes are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. To the extent any provision of this
Note conflicts with the express provisions of the Indenture, the provisions of
the Indenture shall govern and be controlling. The Notes are obligations of the
Company limited to $125.0 million in aggregate principal amount.

         5.       OPTIONAL REDEMPTION.

         (a)      Except as set forth in clause (b) of this paragraph 5, the
Company shall not have the option to redeem the Notes pursuant to this paragraph
5 prior to October 1, 2008. Thereafter, the Company shall have the option to
redeem the Notes, in whole or in part, at the redemption prices (expressed as
percentages of principal amount) set forth below plus accrued and unpaid
interest and Additional Interest thereon, if any, to the applicable redemption
date, if redeemed during the twelve-month period beginning on October 1 of the
years indicated below:

<TABLE>
<CAPTION>
Year                                                       Percentage
----                                                       ----------
<S>                                                        <C>
2008..................................................      103.938%
2009..................................................      102.625%
2010..................................................      101.313%
2011 and thereafter...................................      100.000%
</TABLE>

         (b)      Notwithstanding the provisions of clause (a) of this paragraph
5, at any time on or prior to October 1, 2006, the Company may on one or more
occasions redeem up to an aggregate of 35% of the principal amount of Notes
issued under the Indenture at a redemption price equal to 107.875% of the
principal amount thereof plus accrued and unpaid interest and Additional
Interest thereon, if any, to the redemption date with the net cash proceeds of
one or more Equity Offerings of the Company to the extent the net cash proceeds
thereof are contributed to the Company as a capital contribution to the common
equity of the Company; provided that at least 65% of the aggregate principal
amount of the Notes remains outstanding immediately after the occurrence of such
redemption and that such redemption occurs within 90 days of the date of the
closing of such Equity Offering.

         6.       MANDATORY REDEMPTION.

         The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Notes.

         7.       REPURCHASE AT OPTION OF HOLDER.

         (a)      Upon the occurrence of a Change of Control, the Company shall
be required to make an offer (a "Change of Control Offer") to each Holder to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of
each Holder's Notes at a purchase price equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest and Additional Interest thereon,
if any, to the date of purchase (the "Change of Control Payment"). Within 30
days following any Change of Control, the Company shall mail a notice to each
Holder setting forth the procedures governing the Change of Control Offer as
required by the Indenture.

         (b)      If the Company's Consolidated Tangible Net Worth declines
below $125.0 million (the "Minimum Tangible Net Worth") at the end of any fiscal
quarter, the Company must deliver an Officers' Certificate to the Trustee within
55 days after the end of that fiscal quarter (110 days after the end of any
fiscal year) to notify the Trustee. If, on the last day of each of any two
consecutive fiscal quarters (the last day of the second fiscal quarter being
referred to as a "Deficiency Date"), the Company's Consolidated Tangible Net
Worth is less than the Minimum Tangible Net Worth of the Company, then the
Company shall make an offer (an "Offer") to all Holders of Notes to purchase 10%
of the aggregate principal amount of the Notes originally issued (the "Offer
Amount") at a purchase price equal to 100% of the principal amount of the Notes,
plus accrued and unpaid

                                     A-1-3

<PAGE>

interest and Additional Interest, if any, to the date of purchase; provided that
no such Offer shall be required if, after the Deficiency Date but prior to the
date the Company is required to make the Offer, capital in cash or Cash
Equivalents is contributed for Equity Interests of the Company other than
Disqualified Stock to the Company or its Restricted Subsidiaries sufficient to
increase the Company's Consolidated Tangible Net Worth after giving effect to
such contribution to an amount equal to or above the Minimum Tangible Net Worth.

         The Company shall make the Offer no later than 65 days after each
Deficiency Date (120 days if such Deficiency Date is the last day of the
Company's fiscal year). The Offer is required to remain open for a period of 20
business days following its commencement (unless required to remain open for a
longer period by applicable law). The Company shall purchase the Offer Amount of
the Notes on a designated date no later than five business days after the
termination of the Offer, or if less than the Offer Amount of Notes shall have
been tendered, all Notes then tendered. The Company shall not be obligated to
purchase any Notes unless Holders of Notes of at least 10% of the Offer Amount
shall have tendered and not subsequently withdrawn their Notes for repurchase.

         If the aggregate principal amount of Notes tendered exceeds the Offer
Amount, the Company shall purchase the Notes tendered to it pro rata among the
Notes tendered (with such adjustments as may be appropriate so that only Notes
in denominations of $1,000 and integral multiples thereof shall be purchased).
The Company shall comply with all applicable federal and state securities laws
in connection with each Offer.

         In no event will the failure of the Company's Consolidated Tangible Net
Worth to equal or exceed the Minimum Tangible Net Worth at the end of any fiscal
quarter be counted toward the making of more than one Offer. The Company may
reduce the principal amount of Notes to be purchased pursuant to the Offer by
subtracting 100% of the principal amount (excluding premium) of the Notes
acquired, redeemed or called for redemption by the Company prior to the purchase
(otherwise than under this provision). The Company, however, may not credit
Notes that have been previously used as a credit against any obligation to
repurchase Notes pursuant to this provision. Any Offer shall be conducted in
compliance with applicable regulations under the federal securities law,
including Exchange Act Rule 14e-1.

         8.       NOTICE OF REDEMPTION. Notice of redemption will be mailed at
least 30 days but not more than 60 days before the redemption date to each
Holder whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

         9.       DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record
date and the succeeding Interest Payment Date.

         10.      PERSONS DEEMED OWNERS. The registered Holder of a Note may be
treated as its owner for all purposes.

         11.      AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
exceptions, the Indenture, the Note Guarantees or the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the then outstanding Notes and Additional Notes, if any, voting as a
single class, and any existing default or compliance with any provision of the
Indenture, the Note Guarantees or the Notes may be waived with the consent of
the Holders of a majority in principal amount of the then outstanding Notes and

                                     A-1-4

<PAGE>

Additional Notes, if any, voting as a single class. Without the consent of any
Holder of a Note, the Indenture, the Note Guarantees or the Notes may be amended
or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's or Guarantor's obligations to
Holders of the Notes in case of a merger or consolidation, to make any change
that would provide any additional rights or benefits to the Holders of the Notes
or that does not adversely affect the legal rights under the Indenture of any
such Holder, to comply with the requirements of the Securities and Exchange
Commission in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act, to provide for the Issuance of Additional Notes
in accordance with the limitations set forth in the Indenture, or to allow any
Guarantor to execute a supplemental indenture to the Indenture and/or a Note
Guarantee with respect to the Notes.

         12.      DEFAULTS AND REMEDIES. Events of Default include: (i) default
for 30 days in the payment when due of interest or Additional Interest, if any,
on the Notes; (ii) default in payment when due of principal of or premium, if
any, on the Notes when the same becomes due and payable at maturity, upon
redemption (including in connection with an offer to purchase) or otherwise,
(iii) failure by the Company or any of its Restricted Subsidiaries to comply
with Section 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the Company
for 30 days after notice to the Company by the Trustee or the Holders of at
least 25% in aggregate principal amount of the Notes (including Additional
Notes, if any) then outstanding voting as a single class to comply with certain
other agreements in the Indenture, or the Notes; (v) default under certain other
agreements relating to Indebtedness of the Company which default results in the
acceleration of such Indebtedness prior to its express maturity; (vi) certain
final judgments for the payment of money in excess of $10.0 million in the
aggregate that remain undischarged for a period of 60 days; (vii) certain events
of bankruptcy or insolvency with respect to the Company or any of its
Significant Subsidiaries; and (viii) except as permitted by the Indenture, any
Note Guarantee shall be held in any judicial proceeding to be unenforceable or
invalid or shall cease for any reason to be in full force and effect or any
Guarantor or any Person acting on its behalf shall deny or disaffirm its
obligations under such Guarantor's Note Guarantee. If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare all the Notes to be
due and payable. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency, all outstanding
Notes will become due and payable without further action or notice. Holders may
not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest on, premium and Additional Interest,
if any, or the principal of, the Notes. The Company is required to deliver to
the Trustee annually a statement regarding compliance with the Indenture, and
the Company is required upon becoming aware of any Default or Event of Default,
to deliver to the Trustee a statement specifying such Default or Event of
Default.

         13.      TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual
or any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

         14.      NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder, of the Company or any Guarantor, as such, shall not
have any liability for any obligations of the Company or any Guarantor under the
Notes, the Note Guarantees or the Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Notes.

         15.      AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

                                     A-1-5

<PAGE>

         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).

         17.      ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the A/B Exchange
Registration Rights Agreement dated as of September 29, 2003, between the
Company and the parties named on the signature pages thereof (the "Registration
Rights Agreement").

         18.      CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption 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 of redemption and reliance may be placed only on the
other identification numbers placed thereon.

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

WCI Communities, Inc.
24301 Walden Center Drive
Suite 300
Bonita Springs, Florida 34134
Attention: Vivien N. Hastings, Esq.

                                     A-1-6
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:___________________________________
                                                (Insert assignee's legal name)

________________________________________________________________________________
                  (Insert assignee's soc. sec. or tax I.D. no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
(Print or type assignee's name, address and zip code)

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

Date: ______________________

                                    Your Signature:_____________________________
                                          (Sign exactly as your name
                                          appears on the face of this
                                          Note)

Signature Guarantee*:________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-1-7

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Company
pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box
below:

                 [ ] Section 4.10              [ ] Section 4.15

         If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased:

                               $__________________

Date: ______________________

                                    Your Signature:_____________________________
                                           (Sign exactly as your name
                                           appears on the face of this
                                           Note)

                                    Tax Identification No.:_____________________

Signature Guarantee*: ________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-1-8

<PAGE>

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<TABLE>
<CAPTION>
                                                                            Principal Amount
                                       Amount of           Amount of         of this Global      Signature of
                                      decrease in         increase in        Note following       authorized
                                    Principal Amount    Principal Amount   such decrease (or      officer of
                                     of this Global      of this Global        increase)        Trustee or Note
Date of Exchange                          Note                Note                                 Custodian
----------------                    ----------------    ----------------   -----------------    ---------------
<S>                                 <C>                 <C>                <C>                  <C>
</TABLE>

* This schedule should be included only if the Note is issued in global form.

                                      A-1-9

<PAGE>

                                   EXHIBIT A-2

                  [FACE OF REGULATION S TEMPORARY GLOBAL NOTE]

CUSIP No.
ISIN No.

         7-7/8% [Series A] [Series B] Senior Subordinated Notes due 2013

No. ___                                                            $____________

                              WCI COMMUNITIES, INC.

promises to pay to _____________________________________________________________

or registered assigns,

the principal sum of____________________________________________________________

Dollars on October 1, 2013.

Interest Payment Dates:  April 1 and October 1

Record Dates:  March 15 and September 15

                                      A-2-1

<PAGE>

                                                 WCI COMMUNITIES, INC.

                                                 By: ___________________________
                                                     Name:
                                                     Title:

                                      A1-2

<PAGE>

This is one of the Notes referred to
in the within-mentioned Indenture:

Dated: _______________, ____

THE BANK OF NEW YORK,
   as Trustee

By: __________________________________
Authorized Signatory

                                      A1-3

<PAGE>

                  [BACK OF REGULATION S TEMPORARY GLOBAL NOTE]

         7-7/8% [SERIES A] [SERIES B] SENIOR SUBORDINATED NOTES DUE 2013

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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 AN INTEREST HEREIN.

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THE NOTE
EVIDENCED HEREBY IN AN OFFSHORE TRANSACTION, (2) AGREES THAT IT WILL NOT WITHIN
TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE
TRANSFER THIS SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B)
INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN
ACCREDITED INVESTOR (AS DEFINED IN RULE 501 (a) (1), (2), (3) or (7) UNDER THE
SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS
BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR
THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT
TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
(IF AVAILABLE), OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN ONE YEAR AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR,
THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES

                                      A-2-4

<PAGE>

ACT. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S.
PERSON" HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

         Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

         1.       INTEREST. WCI Communities, Inc., a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Note at
7-7/8% per annum from September 29, 2003 until maturity and shall pay the
Additional Interest payable pursuant to Section 5 of the Registration Rights
Agreement referred to below. The Company will pay interest and Additional
Interest semi-annually in arrears on April 1 and October 1 of each year, or if
any such day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"). Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment
of interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be April 1, 2004. The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at a rate that is 1% per annum in excess of the rate then in effect; it
shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

         2.       METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) and Additional Interest to the Persons who are
registered Holders of Notes at the close of business on the March 15 or
September 15 next preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted
interest. The Notes will be payable as to principal, premium and Additional
Interest, if any, and interest at the office or agency of the Company maintained
for such purpose within or without the City and State of New York, or, at the
option of the Company, payment of interest and Additional Interest may be made
by check mailed to the Holders at their addresses set forth in the register of
Holders, and provided that payment by wire transfer of immediately available
funds will be required with respect to principal of and interest, premium and
Additional Interest on, all Global Notes and all other Notes the Holders of
which shall have provided wire transfer instructions to the Company or the
Paying Agent. Such payment shall be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts.

         3.       AGENT AND REGISTRAR. Initially, The Bank of New York, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company
may change any Paying Agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

         4.       INDENTURE. The Company issued the Notes under an Indenture
dated as of September 29, 2003 ("Indenture") between the Company, the Guarantors
listed on the signature page therein (the "Guarantors") 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 of 1939, as amended (15
U.S. Code Sections 77aaa-77bbbb). The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. The Notes are obligations of the Company limited to $125.0 million
in aggregate principal amount.

                                      A2-5

<PAGE>

         5.       OPTIONAL REDEMPTION.

         (a)      Except as set forth in clause (b) of this paragraph 5, the
Company shall not have the option to redeem the Notes pursuant to this paragraph
5 prior to October 1, 2008. Thereafter, the Company shall have the option to
redeem the Notes, in whole or in part, at the redemption prices (expressed as
percentages of principal amount) set forth below plus accrued and unpaid
interest and Additional Interest thereon, if any, to the applicable redemption
date, if redeemed during the twelve-month period beginning on October 1 of the
years indicated below:

<TABLE>
<CAPTION>
Year                                                                               Percentage
----                                                                               ----------
<S>                                                                                <C>
2008..........................................................................     103.938%
2009..........................................................................     102.625%
2010..........................................................................     101.313%
2011 and thereafter...........................................................     100.000%
</TABLE>

         (b)      Notwithstanding the provisions of clause (a) of this paragraph
5, at any time on or prior to October 1, 2006, the Company may on one or more
occasions redeem up to an aggregate of 35% of the principal amount of Notes
issued under the Indenture at a redemption price equal to 107.875% of the
principal amount thereof plus accrued and unpaid interest and Additional
Interest thereon, if any, to the redemption date with the net cash proceeds of
one or more Equity Offerings of the Company to the extent the net cash proceeds
thereof are contributed to the Company as a capital contribution to the common
equity of the Company; provided that at least 65% of the aggregate principal
amount of the Notes remains outstanding immediately after the occurrence of such
redemption and that such redemption occurs within 90 days of the date of the
closing of such Equity Offering.

         6        MANDATORY REDEMPTION.

         Except as set forth in paragraph 7 below, the Company shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

         7.       REPURCHASE AT OPTION OF HOLDER.

         (a)      Upon the occurrence of a Change of Control, the Company shall
be required to make an offer (a "Change of Control Offer") to each Holder to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of
each Holder's Notes at a purchase price equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest and Additional Interest thereon,
if any, to the date of purchase (the "Change of Control Payment"). Within 30
days following any Change of Control, the Company shall mail a notice to each
Holder setting forth the procedures governing the Change of Control Offer as
required by the Indenture.

         (b)      If the Company's Consolidated Tangible Net Worth declines
below $125.0 million (the "Minimum Tangible Net Worth") at the end of any fiscal
quarter, the Company must deliver an Officers' Certificate to the Trustee within
55 days after the end of that fiscal quarter (110 days after the end of any
fiscal year) to notify the Trustee. If, on the last day of each of any two
consecutive fiscal quarters (the last day of the second fiscal quarter being
referred to as a "Deficiency Date"), the Company's Consolidated Tangible Net
Worth is less than the Minimum Tangible Net Worth of the Company, then the
Company shall make an offer (an "Offer") to all Holders of Notes to purchase 10%
of the aggregate principal amount of the Notes originally issued (the "Offer
Amount") at a purchase price equal to 100% of the principal amount of the Notes,
plus accrued and unpaid interest and Additional Interest, if any, to the date of
purchase; provided that no such Offer shall be required if, after the Deficiency
Date but prior to the date the Company is required to make the Offer, capital in
cash or Cash

                                      A2-6

<PAGE>

Equivalents is contributed for Equity Interests of the Company other than
Disqualified Stock to the Company or its Restricted Subsidiaries sufficient to
increase the Company's Consolidated Tangible Net Worth after giving effect to
such contribution to an amount equal to or above the Minimum Tangible Net Worth.

         The Company shall make the Offer no later than 65 days after each
Deficiency Date (120 days if such Deficiency Date is the last day of the
Company's fiscal year). The Offer is required to remain open for a period of 20
business days following its commencement (unless required to remain open for a
longer period by applicable law). The Company shall purchase the Offer Amount of
the Notes on a designated date no later than five business days after the
termination of the Offer, or if less than the Offer Amount of Notes shall have
been tendered, all Notes then tendered. The Company shall not be obligated to
purchase any Notes unless Holders of Notes of at least 10% of the Offer Amount
shall have tendered and not subsequently withdrawn their Notes for repurchase.

         If the aggregate principal amount of Notes tendered exceeds the Offer
Amount, the Company shall purchase the Notes tendered to it pro rata among the
Notes tendered (with such adjustments as may be appropriate so that only Notes
in denominations of $1,000 and integral multiples thereof shall be purchased).
The Company shall comply with all applicable federal and state securities laws
in connection with each Offer.

         In no event will the failure of the Company's Consolidated Tangible Net
Worth to equal or exceed the Minimum Tangible Net Worth at the end of any fiscal
quarter be counted toward the making of more than one Offer. The Company may
reduce the principal amount of Notes to be purchased pursuant to the Offer by
subtracting 100% of the principal amount (excluding premium) of the Notes
acquired, redeemed or called for redemption by the Company prior to the purchase
(otherwise than under this provision). The Company, however, may not credit
Notes that have been previously used as a credit against any obligation to
repurchase Notes pursuant to this provision. Any Offer shall be conducted in
compliance with applicable regulations under the federal securities law,
including Exchange Act Rule 14e-1.

         8.       NOTICE OF REDEMPTION. Notice of redemption will be mailed at
least 30 days but not more than 60 days before the redemption date to each
Holder whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

         9.       DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record
date and the succeeding Interest Payment Date.

         10.      PERSONS DEEMED OWNERS. The registered Holder of a Note may be
treated as its owner for all purposes.

         11.      AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
exceptions, the Indenture, the Note Guarantees or the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the then outstanding Notes and Additional Notes, if any, voting as a
single class, and any

                                      A2-7

<PAGE>

existing default or compliance with any provision of the Indenture, the Note
Guarantees or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes and Additional Notes,
if any, voting as a single class. Without the consent of any Holder of a Note,
the Indenture, the Note Guarantees or the Notes may be amended or supplemented
to cure any ambiguity, defect or inconsistency, to provide for uncertificated
Notes in addition to or in place of certificated Notes, to provide for the
assumption of the Company's or Guarantor's obligations to Holders of the Notes
in case of a merger or consolidation, to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder, to
comply with the requirements of the Securities and Exchange Commission in order
to effect or maintain the qualification of the Indenture under the Trust
Indenture Act, to provide for the Issuance of Additional Notes in accordance
with the limitations set forth in the Indenture, or to allow any Guarantor to
execute a supplemental indenture to the Indenture and/or a Note Guarantee with
respect to the Notes.

         12.      DEFAULTS AND REMEDIES. Events of Default include: (i) default
for 30 days in the payment when due of interest or Additional Interest, if any,
on the Notes; (ii) default in payment when due of principal of or premium, if
any, on the Notes when the same becomes due and payable at maturity, upon
redemption (including in connection with an offer to purchase) or otherwise,
(iii) failure by the Company or any of its Restricted Subsidiaries to comply
with Section 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the Company
for 30 days after notice to the Company by the Trustee or the Holders of at
least 25% in aggregate principal amount of the Notes (including Additional
Notes, if any) then outstanding voting as a single class to comply with certain
other agreements in the Indenture, or the Notes; (v) default under certain other
agreements relating to Indebtedness of the Company which default results in the
acceleration of such Indebtedness prior to its express maturity; (vi) certain
final judgments for the payment of money in excess of $10.0 million in the
aggregate that remain undischarged for a period of 60 days; (vii) certain events
of bankruptcy or insolvency with respect to the Company or any of its
Significant Subsidiaries; and (viii) except as permitted by the Indenture, any
Note Guarantee shall be held in any judicial proceeding to be unenforceable or
invalid or shall cease for any reason to be in full force and effect or any
Guarantor or any Person acting on its behalf shall deny or disaffirm its
obligations under such Guarantor's Note Guarantee. If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare all the Notes to be
due and payable. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency, all outstanding
Notes will become due and payable without further action or notice. Holders may
not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest on, premium and Additional Interest,
if any, or the principal of, the Notes. The Company is required to deliver to
the Trustee annually a statement regarding compliance with the Indenture, and
the Company is required upon becoming aware of any Default or Event of Default,
to deliver to the Trustee a statement specifying such Default or Event of
Default.

         13.      TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual
or any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

         14.      NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder, of the Company or any Guarantor, as such, shall not
have any liability for any obligations of the Company or any

                                      A2-8

<PAGE>

Guarantor under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Notes.

         15.      AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

         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).

         17.      ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the A/B Exchange
Registration Rights Agreement dated as of September 29, 2003, between the
Company and the parties named on the signature pages thereof (the "Registration
Rights Agreement").

         18.      CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption 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 of redemption and reliance may be placed only on the
other identification numbers placed thereon.

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

WCI Communities, Inc.
24301 Walden Center Drive
Suite 300
Bonita Springs, Florida  34134
Attention:  Vivien N. Hastings, Esq.

                                      A2-9

<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:___________________________________
                                               (Insert assignee's legal name)

________________________________________________________________________________
(Insert assignee's soc. sec. or tax I.D. no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
(Print or type assignee's name, address and zip code)

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

Date: ______________________

                                       Your Signature:__________________________
                                             (Sign exactly as your name
                                             appears on the face of
                                             this Note)

Signature Guarantee*: ________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A2-10

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Company
pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box
below:

                      [ ] Section 4.10     [ ] Section 4.15

         If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased:

                               $__________________

Date: ______________________

                                       Your Signature:__________________________
                                             (Sign exactly as your name
                                             appears on the face of
                                             this Note)

                                       Tax Identification No.:__________________

Signature Guarantee*: ________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A2-11

<PAGE>

          SCHEDULE OF EXCHANGES OF REGULATION S TEMPORARY GLOBAL NOTE*

         The following exchanges of a part of this Regulation S Temporary Global
Note for an interest in another Global Note, or of other Restricted Global Notes
for an interest in this Regulation S Temporary Global Note, have been made:

<TABLE>
<CAPTION>
                                                                   Principal Amount
                               Amount of           Amount of         of this Global      Signature of
                              decrease in         increase in        Note following       authorized
                            Principal Amount    Principal Amount   such decrease (or      officer of
                             of this Global      of this Global        increase)        Trustee or Note
Date of Exchange                  Note                Note                                 Custodian
----------------            ----------------    ----------------   -----------------    ---------------
<S>                         <C>                 <C>                <C>                  <C>
</TABLE>

                                      A2-12

<PAGE>

                                    EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

WCI Communities, Inc.
24301 Walden Center Drive
Suite 300
Bonita Springs, Florida  34134
Attention:  Vivien N. Hastings, Esq.

[Registrar address block]

                  Re:      7-7/8% Senior Subordinated Notes due 2013

         Reference is hereby made to the Indenture, dated as of September 29,
2003 (the "Indenture"), between WCI Communities, Inc., as issuer (the
"Company"), the Guarantors listed on the signature page therein and The Bank of
New York, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

         ___________________, (the "Transferor") owns and proposes to transfer
the Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $___________ in such Note[s] or interests (the "Transfer"),
to ___________________________ (the "Transferee"), as further specified in Annex
A hereto. In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

         CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
144A GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The Transfer is
being effected pursuant to and in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect to
which such Person exercises sole investment discretion, and such Person and each
such account is a "qualified institutional buyer" within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A and such Transfer is
in compliance with any applicable blue sky securities laws of any state of the
United States. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the 144A Global Note and/or the Definitive Note and
in the Indenture and the Securities Act.

         CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
TEMPORARY REGULATION S GLOBAL NOTE, THE REGULATION S GLOBAL NOTE OR A DEFINITIVE
NOTE PURSUANT TO REGULATION S. The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly,
the Transferor hereby further certifies that (i) the Transfer is not being made
to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside

                                       B-1

<PAGE>

the United States or (y) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act and/, (iii) the transaction is
not part of a plan or scheme to evade the registration requirements of the
Securities Act and (iv) if the proposed transfer is being made prior to the
expiration of the Restricted Period, the transfer is not being made to a U.S.
Person or for the account or benefit of a U.S. Person (other than an Initial
Purchaser). Upon consummation of the proposed transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on Transfer enumerated in the Private
Placement Legend printed on the Regulation S Global Note, the Temporary
Regulation S Global Note and/or the Definitive Note and in the Indenture and the
Securities Act.

         CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE IAI GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO ANY PROVISION
OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The Transfer is
being effected in compliance with the transfer restrictions applicable to
beneficial interests in Restricted Global Notes and Restricted Definitive Notes
and pursuant to and in accordance with the Securities Act and any applicable
blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

         (a)      such Transfer is being effected pursuant to and in accordance
with Rule 144 under the Securities Act;

         or

         (b)      such Transfer is being effected to the Company or a subsidiary
thereof;

         or

         (c)      such Transfer is being effected pursuant to an effective
registration statement under the Securities Act and in compliance with the
prospectus delivery requirements of the Securities Act;

         or

         (d)      such Transfer is being effected to an Institutional Accredited
Investor and pursuant to an exemption from the registration requirements of the
Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor
hereby further certifies that it has not engaged in any general solicitation
within the meaning of Regulation D under the Securities Act and the Transfer
complies with the transfer restrictions applicable to beneficial interests in a
Restricted Global Note or Restricted Definitive Notes and the requirements of
the exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit D to the Indenture and (2) an
Opinion of Counsel provided by the Transferor or the Transferee (a copy of which
the Transferor has attached to this certification), to the effect that such
Transfer is in compliance with the Securities Act. Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the IAI Global
Note and/or the Definitive Notes and in the Indenture and the Securities Act.

         CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

                                       B-2

<PAGE>

         CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities Act
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any state of the United States and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

         CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

         CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The Transfer is
being effected pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act other than Rule 144, Rule 903 or
Rule 904 and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any State of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will not be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                           _____________________________________
                                               [Insert Name of Transferor]

                                           By: _________________________________
                                              Name:
                                              Title:

Dated: ______________________

                                       B-3

<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

         (a)      [ ]      a beneficial interest in the:

                  (i)      [ ]      144A Global Note (CUSIP____________), or

                  (ii)     [ ]      Regulation S Global Note (CUSIP________), or

                  (iii)    [ ]      IAI Global Note (CUSIP_______); or

         (b)      [ ]      a Restricted Definitive Note.

After the Transfer the Transferee will hold:

[CHECK ONE]

         (a)      [ ]      a beneficial interest in the:

                  (i)      [ ]      144A Global Note (CUSIP____________), or

                  (ii)     [ ]      Regulation S Global Note (CUSIP________), or

                  (iii)    [ ]      IAI Global Note (CUSIP________); or

                  (iv)     [ ]      Unrestricted Global Note (CUSIP________); or

         (b)      [ ]      a Restricted Definitive Note; or

         (c)      [ ]      an Unrestricted Definitive Note,

                  in accordance with the terms of the Indenture.

                                       B-4
<PAGE>

                                    EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

WCI Communities, Inc.
24301 Walden Center Drive
Suite 300
Bonita Springs, Florida  34134
Attention:  Vivien N. Hastings, Esq.

[Registrar address block]

         Re:      7-7/8% Senior Subordinated Notes due 2013

(CUSIP _____________)

         Reference is hereby made to the Indenture, dated as of September 29,
2003 (the "Indenture"), between WCI Communities, Inc., as issuer (the
"Company"), The Guarantors listed on the signature page therein and The Bank of
New York, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

         __________________________, (the "Owner") owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $____________ in such Note[s] or interests (the "Exchange"). In
connection with the Exchange, the Owner hereby certifies that:

         EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

         (a)      [ ]      CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
connection with the Exchange of the Owner's beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner's own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the
Global Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the "Securities Act"), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

         (b)      [ ]      CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are

                                      C-1
<PAGE>

not required in order to maintain compliance with the Securities Act and (iv)
the Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

         (c)      [ ]      CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL Note. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

         (d)      [ ]      CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
TO UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

         EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

         (a)      [ ]      CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for a
Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner's
own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Note and in
the Indenture and the Securities Act.

         (b)      [ ]      CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
TO BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the
Exchange of the Owner's Restricted Definitive Note for a beneficial interest in
the [CHECK ONE] "144A Global Note, "Regulation S Global Note, "IAI Global Note
with an equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner's own account without transfer and (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, and in compliance with any applicable blue sky securities
laws of any state of the United States. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the beneficial interest
issued will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the relevant Restricted Global Note and in the
Indenture and the Securities Act.

                                      C-2
<PAGE>

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                       _________________________________________
                                              [Insert Name of Transferor]

                                       By: _____________________________________
                                           Name:
                                           Title:

Dated: _____________________

                                      C-3
<PAGE>

                                    EXHIBIT D

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

WCI Communities, Inc.
24301 Walden Center Drive
Suite 300
Bonita Springs, Florida  34134
Attention:  Vivien N. Hastings, Esq.

[Registrar address block]

         Re:      7-7/8% Senior Subordinated Notes due 2013

(CUSIP ____________)

         Reference is hereby made to the Indenture, dated as of September 29,
2003 (the "Indenture"), between WCI Communities, Inc., as issuer (the
"Company"), The Guarantors listed on the signature page therein and The Bank of
New York, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

         In connection with our proposed purchase of $____________ aggregate
principal amount of:

         (a)      [ ]      a beneficial interest in a Global Note, or

         (b)      [ ]      a Definitive Note,

         we confirm that:

         We understand that any subsequent transfer of the Notes or any interest
therein is subject to certain restrictions and conditions set forth in the
Indenture and the undersigned agrees to be bound by, and not to resell, pledge
or otherwise transfer the Notes or any interest therein except in compliance
with, such restrictions and conditions and the United States Securities Act of
1933, as amended (the "Securities Act").

         We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest therein,
we will do so only (A) to the Company or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and an Opinion of Counsel in form
reasonably acceptable to the Company to the effect that such transfer is in
compliance with the Securities Act, (D) outside the United States in accordance
with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the
provisions of Rule 144(k) under the Securities Act or (F) pursuant to an
effective registration statement under the Securities Act, and we further agree
to provide to any person purchasing the Definitive Note or beneficial interest
in a Global Note from us in a

                                      D-1
<PAGE>

transaction meeting the requirements of clauses (A) through (E) of this
paragraph a notice advising such purchaser that resales thereof are restricted
as stated herein.

         We understand that, on any proposed resale of the Notes or beneficial
interest therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

         We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Notes, and we and
any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

         We are acquiring the Notes or beneficial interest therein purchased by
us for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

         You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                       _________________________________________
                                             [Insert Name of Transferor]

                                       By: _____________________________________
                                           Name:
                                           Title:

Dated: _____________________

                                      D-2
<PAGE>

                                    EXHIBIT E

                          FORM OF NOTATION OF GUARANTEE

         For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture dated as of September 29, 2003 (the "Indenture")
among WCI Communities, Inc., the Guarantors listed on the signature pages
thereto and The Bank of New York, as trustee (the "Trustee"), (a) the due and
punctual payment of the principal of, premium and Additional Interest, if any,
and interest on the Notes (as defined in the Indenture), whether at maturity, by
acceleration, redemption or otherwise, the due and punctual payment of interest
on overdue principal and premium, and, to the extent permitted by law, interest,
and the due and punctual performance of all other obligations of the Company to
the Holders or the Trustee all in accordance with the terms of the Indenture and
(b) 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. The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the Note
Guarantee and the Indenture are expressly set forth in Article 11 of the
Indenture and reference is hereby made to the Indenture for the precise terms of
the Note Guarantee. Each Holder of a Note, by accepting the same, (a) agrees to
and shall be bound by such provisions, (b) authorizes and directs the Trustee,
on behalf of such Holder, to take such action as may be necessary or appropriate
to effectuate the subordination as provided in the Indenture and (c) appoints
the Trustee attorney-in-fact of such Holder for such purpose; provided, however,
that the Indebtedness evidenced by this Note Guarantee shall cease to be so
subordinated and subject in right of payment upon any defeasance of this Note in
accordance with the provisions of the Indenture.

                                      E-1
<PAGE>

                                       Bay Colony-Gateway, Inc.

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                       Community Specialized Services, Inc.

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                       Financial Resources Group, Inc.

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                       First Fidelity Title, Inc.

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                       Florida Lifestyle Management Company

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                       WCI Capital Corporation

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                       Livingston Road, Inc.

                                       By: ___________________________________
                                           Name: James D. Cullen
                                           Title: Vice President

                                      E-2
<PAGE>

                                   Sun City Center Golf Properties, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Sun City Center Realty, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Watermark Realty, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   The Colony At Pelican Landing Golf Club, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Communities Amenities, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Communities Home Builders, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                   Gateway Communications Services, Inc.

                                   By: ___________________________________
                                       Name: James D. Cullen
                                       Title: Vice President

                                      E-3
<PAGE>

                                      JYC Holdings, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Marbella at Pelican Bay, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Pelican Landing Golf Resort Ventures, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Sarasota Tower, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Tarpon Cove Yacht & Racquet Club, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Tiburon Golf Ventures, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      WCI Architecture & Land Planning, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Watermark Realty Referral, Inc.

                                      E-4
<PAGE>

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      WCI Communities Property Management, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      WCI Golf Group, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      WCI Realty, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Bay Colony Realty Associates, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Bay Colony of Naples, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Coral Ridge Communities, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Coral Ridge Properties, Inc.

                                      By: ___________________________________

                                      E-5
<PAGE>

                                          Name: James D. Cullen
                                          Title: Vice President

                                      Coral Ridge Realty, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Coral Ridge Realty Sales, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Florida National Properties, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Gateway Communities, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Gateway Realty Sales, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Heron Bay, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Heron Bay Golf Course Properties, Inc.

                                      By: ___________________________________

                                      E-6
<PAGE>

                                          Name: James D. Cullen
                                          Title: Vice President

                                      Pelican Bay Properties, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Pelican Landing Communities, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Pelican Landing Properties, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Pelican Marsh Properties, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Tarpon Cove Realty, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      WCI Homes, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President

                                      Communities Finance Company, LLC

                                      By: ___________________________________

                                      E-7
<PAGE>

                                          Name: James D. Cullen
                                          Title: Vice President

                                      Florida Design Communities, Inc.

                                      By: ___________________________________
                                          Name: James D. Cullen
                                          Title: Vice President:

                                      E-8
<PAGE>

                                    EXHIBIT F

                         FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS

         SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of
________________, among __________________ (the "Guaranteeing Subsidiary"), a
subsidiary of ____________________ (or its permitted successor), a [Delaware]
corporation (the "Company"), the Company, the other Guarantors (as defined in
the Indenture referred to herein) and The Bank of New York, as trustee under the
indenture referred to below (the "Trustee").

                               W I T N E S S E T H

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture (the "Indenture"), dated as of September 29, 2003 providing
for the issuance of an aggregate principal amount of up to $125,000,000 of
7-7/8% Senior Subordinated Notes due 2013 (the "Notes");

         WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Note Guarantee"); and

         WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

         CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

         AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees as
follows:

         (a)      Along with all Guarantors named in the Indenture, to jointly
and severally Guarantee to each Holder of a Note authenticated and delivered by
the Trustee and to the Trustee and its successors and assigns, the Notes or the
obligations of the Company hereunder or thereunder, that:

                           (i) the principal of and interest on the Notes will
                  be promptly paid in full when due, whether at maturity, by
                  acceleration, redemption or otherwise, and interest on the
                  overdue principal of and interest on the Notes, if any, if
                  lawful, and all other obligations of the Company to the
                  Holders or the Trustee hereunder or thereunder will be
                  promptly paid in full or performed, all in accordance with the
                  terms hereof and thereof; and

                           (ii) in case of any extension of time of payment or
                  renewal of any Notes or any of such other obligations, that
                  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

                                      F-1
<PAGE>

                  acceleration or otherwise. Failing payment when due of any
                  amount so guaranteed or any performance so guaranteed for
                  whatever reason, the Guarantors shall be jointly and severally
                  obligated to pay the same immediately.

         (b)      The obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or the Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
of the Notes with respect to any provisions hereof or thereof, the recovery of
any judgment against the Company, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a guarantor.

         (c)      The following is hereby waived: diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever.

         (d)      This Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and the Indenture, and the
Guaranteeing Subsidiary accepts all obligations of a Guarantor under the
Indenture.

         (e)      If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors, or any Custodian, Trustee,
liquidator or other similar official acting in relation to either the Company or
the Guarantors, any amount paid by either to the Trustee or such Holder, this
Note Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.

         (f)      The Guaranteeing Subsidiary shall not be entitled to any right
of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.

         (g)      As between the Guarantors, on the one hand, and the Holders
and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article 6 of the Indenture
for the purposes of this Note Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Note Guarantee.

         (h)      The Guarantors shall have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.

         (i)      Pursuant to Section 11.02 of the Indenture, after giving
effect to any maximum amount and any other contingent and fixed liabilities that
are relevant under any applicable Bankruptcy or fraudulent conveyance laws, and
after giving effect to any collections from, rights to receive contribution from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under Article 11 of the Indenture, this new
Note Guarantee shall be limited to the maximum amount permissible such that the
obligations of such Guarantor under this Note Guarantee will not constitute a
fraudulent transfer or conveyance.

         EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary agrees that the
Note Guarantees shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Note Guarantee.

                                      F-2
<PAGE>

         GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

         (j)      The Guaranteeing Subsidiary may not consolidate with or merge
with or into (whether or not such Guarantor is the surviving Person) another
corporation, Person or entity whether or not affiliated with such Guarantor
unless:

                           (i) subject to Sections 11.04 and 11.05 of the
                  Indenture, the Person formed by or surviving any such
                  consolidation or merger (if other than a Guarantor or the
                  Company) unconditionally assumes all the obligations of such
                  Guarantor, pursuant to a supplemental indenture in form and
                  substance reasonably satisfactory to the Trustee, under the
                  Notes, the Indenture and the Note Guarantee on the terms set
                  forth herein or therein; and

                           (ii) immediately after giving effect to such
                  transaction, no Default or Event of Default exists.

         (k)      In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor corporation, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Note Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of the Indenture to be
performed by the Guarantor, such successor corporation shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor corporation thereupon may cause to be
signed any or all of the Note Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee. All the Note Guarantees so issued shall in all
respects have the same legal rank and benefit under the Indenture as the Note
Guarantees theretofore and thereafter issued in accordance with the terms of the
Indenture as though all of such Note Guarantees had been issued at the date of
the execution hereof.

         (l)      Except as set forth in Articles 4 and 5 and Section 11.05 of
Article 11 of the Indenture, and notwithstanding clauses (a) and (b) above,
nothing contained in the Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guarantor with or into the Company or another
Guarantor, or shall prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Company or
another Guarantor.

         RELEASES.

         (m)      In the event of a sale or other disposition of all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale
or other disposition of all to the capital stock of any Guarantor, in each case
to a Person that is not (either before or after giving effect to such
transaction) a Restricted Subsidiary of the Company, then such Guarantor (in the
event of a sale or other disposition, by way of merger, consolidation or
otherwise, of all of the capital stock of such Guarantor) or the corporation
acquiring the property (in the event of a sale or other disposition of all or
substantially all of the assets of such Guarantor) will be released and relieved
of any obligations under its Note Guarantee; provided that the net proceeds of
such sale or other disposition are applied in accordance with the applicable
provisions of the Indenture, including without limitation Section 4.10 of the
Indenture. Upon delivery by the Company to the Trustee of an Officers'
Certificate and an Opinion of Counsel to the effect that such sale or other
disposition was made by the Company in accordance with the provisions of the
Indenture, including without limitation Section 4.10 of the Indenture, the
Trustee shall execute any documents reasonably required in order to evidence the
release of any Guarantor from its obligations under its Note Guarantee.

                                      F-3
<PAGE>

         (n)      Any Guarantor not released from its obligations under its Note
Guarantee shall remain liable for the full amount of principal of and interest
on the Notes and for the other obligations of any Guarantor under the Indenture
as provided in Article 11 of the Indenture.

         NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Note Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws and it
is the view of the Securities and Exchange Commission that such a waiver is
against public policy.

         NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

         COUNTERPARTS The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

         EFFECT OF HEADINGS. The Section headings herein are for convenience
only and shall not affect the construction hereof.

         THE TRUSTEE. 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
recitals are made solely by the Guaranteeing Subsidiary and the Company.

         Except as amended or supplemented by this Supplemental Indenture, the
provisions of the Indenture are in all respects ratified and confirmed and shall
remain in full force and effect.

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

Dated:  _______________, ____

                                       [GUARANTEEING SUBSIDIARY]

                                       By: ___________________________________
                                           Name:
                                           Title:

                                      F-4
<PAGE>

                                       WCI Communities, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       Bay Colony-Gateway, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       Community Specialized Services, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       Financial Resources Group, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       First Fidelity Title, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                      F-5
<PAGE>

                                       Florida Lifestyle Management Company

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       WCI Capital Corporation

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       Livingston Road, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       Sun City Center Golf Properties, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                       Sun City Center Realty, Inc.

                                       By: ___________________________________
                                           Name:
                                           Title:

                                      F-6
<PAGE>

                                   Watermark Realty, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   The Colony At Pelican Landing Golf Club, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Communities Amenities, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Communities Home Builders, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Gateway Communications Services, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   JYC Holdings, Inc.

                                      F-7
<PAGE>

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Marbella at Pelican Bay, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Pelican Landing Golf Resort Ventures, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Sarasota Tower, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Tarpon Cove Yacht & Racquet Club, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Tiburon Golf Ventures, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                      F-8
<PAGE>

                                   WCI Architecture & Land Planning, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Watermark Realty Referral, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   WCI Communities Property Management, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   WCI Golf Group, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   WCI Realty, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                      F-9
<PAGE>

                                   Bay Colony Realty Associates, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Bay Colony of Naples, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Coral Ridge Communities, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Coral Ridge Properties, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Coral Ridge Realty, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                      F-10
<PAGE>

                                   Coral Ridge Realty Sales, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Florida National Properties, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Gateway Communities, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Gateway Realty Sales, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Heron Bay, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                      F-11
<PAGE>

                                   Heron Bay Golf Course Properties, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Pelican Bay Properties, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Pelican Landing Communities, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Pelican Landing Properties, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Pelican Marsh Properties, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                      F-12
<PAGE>

                                   Tarpon Cove Realty, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   WCI Homes, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Communities Finance Company, LLC

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   Florida Design Communities, Inc.

                                   By: ___________________________________
                                       Name:
                                       Title:

                                   The Bank of New York,
                                       as Trustee

                                   By: ___________________________________
                                       Name:
                                       Title:

                                      F-13
<PAGE>

                                                                      SCHEDULE I

                             SCHEDULE OF GUARANTORS

         The following schedule lists each Guarantor under the Indenture as of
the Issue Date:

Bay Colony-Gateway, Inc.
Financial Resources Group, Inc.
First Fidelity Title, Inc.
Florida Lifestyle Management Company
Livingston Road, Inc.
Sun City Center Golf Properties, Inc.
Sun City Center Realty, Inc.
Watermark Realty, Inc.
The Colony at Pelican Landing Golf Club, Inc.
Communities Amenities, Inc.
Communities Home Builders, Inc.
Gateway Communications Services, Inc.
JYC Holdings, Inc.
Marbella at Pelican Bay, Inc.
Pelican Landing Golf Resort Ventures, Inc.
Sarasota Tower, Inc.
Tarpon Cove Yacht & Racquet Club, Inc.
Tiburon Golf Ventures, Inc.
Watermark Realty Referral, Inc.
WCI Communities Property Management, Inc.
WCI Golf Group, Inc.
WCI Realty, Inc.
Bay Colony Realty Associates, Inc.
Bay Colony of Naples, Inc.
Coral Ridge Communities, Inc.
Coral Ridge Properties, Inc.
Coral Ridge Realty, Inc.
Coral Ridge Realty Sales, Inc.
Florida National Properties, Inc.
Gateway Communities, Inc.
Gateway Realty Sales, Inc.
Heron Bay, Inc.
Heron Bay Golf Course Properties, Inc.
Pelican Bay Properties, Inc.
Pelican Landing Communities, Inc.
Pelican Landing Properties, Inc.
Pelican Marsh Properties, Inc.
Tarpon Cove Realty, Inc.
WCI Homes, Inc.
Communities Finance Company, LLC
WCI Capital Corporation

                                      F-14
<PAGE>

Communities Specialized Services, Inc.
WCI Architecture & Land Planning, Inc.
Florida Design Communities, Inc.

                                      F-15<PAGE>

                                                                    EXHIBIT 10.1

                                CREDIT AGREEMENT

                                      AMONG

                                PULTE HOMES, INC.
                                  AS BORROWER,

                         THE LENDERS IDENTIFIED HEREIN,

                                  BANK ONE, NA,
                            AS ADMINISTRATIVE AGENT,

                                       AND

                          CITICORP NORTH AMERICA, INC.,
                              AS SYNDICATION AGENT
                                       AND
                                 COMERICA BANK,
                                 SUNTRUST BANK,
                         THE ROYAL BANK OF SCOTLAND PLC,
                                       AND
                         UBS AG, CAYMAN ISLANDS BRANCH,
                             AS DOCUMENTATION AGENTS
                                       AND
                        CREDIT LYONNAIS NEW YORK BRANCH,
                                 GUARANTY BANK,
                           STANDARD FEDERAL BANK N.A.,
                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                           MIZUHO CORPORATE BANK, LTD.
                                       AND
                           WASHINGTON MUTUAL BANK, FA,
                               AS MANAGING AGENTS
                                       AND
               THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH,
                                   BNP PARIBAS
                                       AND
                         PNC BANK, NATIONAL ASSOCIATION,
                                  AS CO-AGENTS

                           DATED AS OF OCTOBER 1, 2003

--------------------------------------------------------------------------------
                         BANC ONE CAPITAL MARKETS, INC.,

                      AS LEAD ARRANGER AND SOLE BOOK RUNNER

<PAGE>

                                Table of Contents

<TABLE>
<S>                                                                                     <C>
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS......................................         1

  1.1   DEFINITIONS.............................................................         1
  1.2   COMPUTATION OF TIME PERIODS AND OTHER DEFINITIONAL PROVISIONS...........        22
  1.3   ACCOUNTING TERMS........................................................        22
  1.4   TIME....................................................................        22

SECTION 2 CREDIT FACILITIES.....................................................        22

  2.1   REVOLVING LOANS.........................................................        22
  2.2   SWINGLINE LOANS SUBFACILITY.............................................        27
  2.3   CONTINUATIONS AND CONVERSIONS...........................................        29
  2.4   MINIMUM AMOUNTS.........................................................        29
  2.5   EXTENSION OF MATURITY DATE..............................................        29
  2.6   TELEPHONIC NOTICES......................................................        31
  2.7   LENDING INSTALLATIONS...................................................        31

SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS................................        32

  3.1   INTEREST................................................................        32
  3.2   PLACE AND MANNER OF PAYMENTS............................................        33
  3.3   PREPAYMENTS.............................................................        33
  3.4   FEES....................................................................        34
  3.5   PAYMENT IN FULL AT MATURITY.............................................        34
  3.6   COMPUTATIONS OF INTEREST AND FEES.......................................        35
  3.7   PRO RATA TREATMENT......................................................        35
  3.8   SHARING OF PAYMENTS.....................................................        36
  3.9   CAPITAL ADEQUACY........................................................        37
  3.10  INABILITY TO DETERMINE INTEREST RATE....................................        37
  3.11  ILLEGALITY..............................................................        38
  3.12  REQUIREMENTS OF LAW.....................................................        38
  3.13  TAXES...................................................................        39
  3.14  COMPENSATION............................................................        42
  3.15  SUBSTITUTION OF LENDER..................................................        43
  3.16  EVIDENCE OF DEBT........................................................        43

SECTION 4 FACILITY LCS..........................................................        44

  4.1   ISSUANCE................................................................        44
  4.2   PARTICIPATIONS..........................................................        44
  4.3   NOTICE..................................................................        45
  4.4   FEES; REPORTING.........................................................        45
  4.5   ADMINISTRATION; REIMBURSEMENT BY LENDERS................................        46
  4.6   REIMBURSEMENT BY BORROWER...............................................        47
  4.7   OBLIGATIONS ABSOLUTE....................................................        47
  4.8   ACTIONS OF LC ISSUER....................................................        48
  4.9   INDEMNIFICATION.........................................................        48
  4.10  LENDERS' INDEMNIFICATION................................................        49
  4.11  FACILITY LC COLLATERAL ACCOUNT..........................................        49
  4.12  RIGHTS AS A LENDER......................................................        49

SECTION 5 CONDITIONS PRECEDENT..................................................        50

  5.1   CLOSING CONDITIONS......................................................        50
  5.2   CONDITIONS TO ALL EXTENSIONS OF CREDIT..................................        54

SECTION 6 REPRESENTATIONS AND WARRANTIES........................................        54
</TABLE>

                                       i

<PAGE>

                                Table of Contents

<TABLE>
<S>                                                                                     <C>
  6.1   FINANCIAL CONDITION.....................................................        54
  6.2   NO MATERIAL CHANGE......................................................        55
  6.3   ORGANIZATION AND GOOD STANDING..........................................        55
  6.4   DUE AUTHORIZATION.......................................................        55
  6.5   NO CONFLICTS............................................................        55
  6.6   CONSENTS................................................................        56
  6.7   ENFORCEABLE OBLIGATIONS.................................................        56
  6.8   NO DEFAULT..............................................................        56
  6.9   LIENS...................................................................        56
  6.10  INDEBTEDNESS............................................................        56
  6.11  LITIGATION..............................................................        56
  6.12  TAXES...................................................................        57
  6.13  COMPLIANCE WITH LAW.....................................................        57
  6.14  ERISA...................................................................        57
  6.15  SUBSIDIARIES............................................................        58
  6.16  USE OF PROCEEDS.........................................................        58
  6.17  GOVERNMENT REGULATION...................................................        59
  6.18  ENVIRONMENTAL MATTERS...................................................        59
  6.19  INTELLECTUAL PROPERTY...................................................        60
  6.20  SOLVENCY................................................................        61
  6.21  INVESTMENTS.............................................................        61
  6.22  DISCLOSURE..............................................................        61
  6.23  LICENSES, ETC...........................................................        61
  6.24  BURDENSOME RESTRICTIONS.................................................        61
  6.25  LABOR CONTRACTS AND DISPUTES............................................        61
  6.26  BROKER'S FEES...........................................................        62

SECTION 7 AFFIRMATIVE COVENANTS.................................................        62

  7.1   INFORMATION COVENANTS...................................................        62
  7.2   FINANCIAL COVENANTS.....................................................        65
  7.3   PRESERVATION OF EXISTENCE AND FRANCHISES................................        66
  7.4   BOOKS AND RECORDS.......................................................        66
  7.5   COMPLIANCE WITH LAW.....................................................        66
  7.6   PAYMENT OF TAXES AND OTHER INDEBTEDNESS.................................        66
  7.7   INSURANCE...............................................................        66
  7.8   MAINTENANCE OF PROPERTY.................................................        66
  7.9   PERFORMANCE OF OBLIGATIONS..............................................        67
  7.10  USE OF PROCEEDS.........................................................        67
  7.11  AUDITS/INSPECTIONS......................................................        67
  7.12  ADDITIONAL CREDIT PARTIES...............................................        67
  7.13  REIT REQUIREMENTS.......................................................        68

SECTION 8 NEGATIVE COVENANTS....................................................        68

  8.1   INDEBTEDNESS............................................................        68
  8.2   LIENS...................................................................        69
  8.3   NATURE OF BUSINESS......................................................        69
  8.4   CONSOLIDATION AND MERGER................................................        69
  8.5   SALE OR LEASE OF ASSETS.................................................        70
  8.6   SALE AND LEASEBACK......................................................        70
  8.7   ADVANCES, INVESTMENTS AND LOANS.........................................        71
  8.8   RESTRICTED PAYMENTS.....................................................        71
  8.9   TRANSACTIONS WITH AFFILIATES............................................        71
  8.10  FISCAL YEAR; ORGANIZATIONAL DOCUMENTS...................................        71
  8.11  NO LIMITATIONS..........................................................        71
  8.12  NO OTHER NEGATIVE PLEDGES...............................................        72
</TABLE>

                                       ii

<PAGE>
                                Table of Contents

<TABLE>
<S>                                                                                     <C>
  8.13  OTHER INDEBTEDNESS......................................................        72
  8.14  RESTRICTIONS ON THE REITS...............................................        72

SECTION 9 EVENTS OF DEFAULT.....................................................        73

  9.1   EVENTS OF DEFAULT.......................................................        73
  9.2   ACCELERATION; REMEDIES..................................................        75
  9.3   FACILITY LC COLLATERAL ACCOUNT..........................................        76
  9.4   ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT...........................        77

SECTION 10  AGENCY PROVISIONS...................................................        78

  10.1  APPOINTMENT; NATURE OF RELATIONSHIP.....................................        78
  10.2  POWERS..................................................................        78
  10.3  GENERAL IMMUNITY........................................................        79
  10.4  NO RESPONSIBILITY FOR LOANS, RECITALS, ETC..............................        79
  10.5  ACTION ON INSTRUCTIONS OF LENDERS.......................................        79
  10.6  EMPLOYMENT OF AGENTS AND COUNSEL........................................        80
  10.7  RELIANCE ON DOCUMENTS; COUNSEL..........................................        80
  10.8  ADMINISTRATIVE AGENT'S REIMBURSEMENT AND INDEMNIFICATION................        80
  10.9  NOTICE OF DEFAULT.......................................................        81
  10.10 RIGHTS AS A LENDER......................................................        81
  10.11 LENDER CREDIT DECISION..................................................        81
  10.12 SUCCESSOR ADMINISTRATIVE AGENT..........................................        81
  10.13 ADMINISTRATIVE AGENT AND ARRANGER FEES..................................        82
  10.14 DELEGATION TO AFFILIATES................................................        82
  10.15 AUTHORIZATION OF INTERCREDITOR AGREEMENT................................        83
  10.16 DOCUMENTATION AGENT, SYNDICATION AGENT, ETC.............................        83
  10.17 BENEFITS OF SECTION 10..................................................        83

SECTION 11 MISCELLANEOUS........................................................        83

  11.1  NOTICES.................................................................        83
  11.2  RIGHT OF SET-OFF........................................................        84
  11.3  BENEFIT OF AGREEMENT....................................................        84
  11.4  NO WAIVER; REMEDIES CUMULATIVE..........................................        87
  11.5  PAYMENT OF EXPENSES; INDEMNIFICATION....................................        87
  11.6  AMENDMENTS, WAIVERS AND CONSENTS........................................        88
  11.7  COUNTERPARTS/TELECOPY...................................................        89
  11.8  HEADINGS................................................................        89
  11.9  DEFAULTING LENDER.......................................................        89
  11.10  SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.........        90
  11.11  GOVERNING LAW; JURISDICTION............................................        90
  11.12  WAIVER OF JURY TRIAL...................................................        90
  11.13  SEVERABILITY...........................................................        91
  11.14  FURTHER ASSURANCES.....................................................        91
  11.15  ENTIRETY...............................................................        91
  11.16  CONFIDENTIALITY........................................................        91
  11.17  BINDING EFFECT; CONTINUING AGREEMENT...................................        92
  11.18  NO CONSEQUENTIAL DAMAGES...............................................        92
</TABLE>

                                      iii

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
SCHEDULES
<S>                 <C>
Schedule 1.1(a)           Commitments and Pro Rata Shares
Schedule 1.1(b)     Existing Letters of Credit
Schedule 1.1(c)     Permitted Liens
Schedule 6.10       Indebtedness
Schedule 6.11       Litigation
Schedule 6.15       Subsidiaries
Schedule 6.21(a)    Investment Policy
Schedule 6.21(b)    Investments
Schedule 6.25       Labor Contracts and Disputes
Schedule 11.1       Notices
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS
<S>                  <C>
Exhibit 1.1          Form of Guaranty
Exhibit 1.2          Form of Intercreditor Agreement
Exhibit 2.1(f)       Form of Revolving Note
Exhibit 2.2(e)       Form of Swingline Note
Exhibit 7.1(c)       Form of Officer's Certificate
Exhibit 11.3(b)      Form of Assignment Agreement
</TABLE>

                                        i
<PAGE>

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT (this "Credit Agreement") is entered into as of
October 1, 2003 among PULTE HOMES, INC., a Michigan corporation (the
"Borrower"), the Lenders (as defined herein), and BANK ONE, NA, as
Administrative Agent for the Lenders.

                                    RECITALS

         WHEREAS, the Borrower and the Guarantors have requested the Lenders to
provide a senior revolving credit facility in an aggregate principal amount of
up to $850,000,000, which may be increased in accordance with the terms hereof
to up to $1,000,000,000; and

         WHEREAS, the Lenders party hereto have agreed to make the requested
senior revolving credit facility available to the Borrower on the terms and
conditions hereinafter set forth.

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                   SECTION 1

                        DEFINITIONS AND ACCOUNTING TERMS

         1.1      DEFINITIONS.

         As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular:

                  "Acquisition", by any Person, means the acquisition by such
         Person of the Capital Stock or all or substantially all of the assets
         of another Person, whether or not involving a merger or consolidation
         with such Person.

                  "Additional Credit Party" means each Person that becomes a
         Guarantor after the Closing Date, as provided in Section 7.12 or
         otherwise.

                  "Adjusted LIBOR Market Index Rate" means, with respect to an
         Index Rate Swingline Loan, the sum of (i) the quotient of (a) the LIBOR
         Market Index Rate applicable to such Index Rate Swingline Loan, divided
         by (b) one minus the applicable Reserve Requirement (expressed as a
         decimal) plus (ii) the Applicable Percentage.

                  "Administrative Agent" means Bank One, NA. (or any successor
         thereto) or any successor administrative agent appointed pursuant to
         Section 10.12.

                  "Administrative Fees" has the meaning set forth in Section
         3.4(c).

<PAGE>

                  "Affiliate" means, with respect to any Person, any other
         Person directly or indirectly controlling (including but not limited to
         all directors and officers (or the equivalent) of such Person),
         controlled by or under direct or indirect common control with such
         Person. A Person shall be deemed to control an entity if such Person
         possesses, directly or indirectly, the power (a) to vote 10% or more of
         the ordinary voting power for the election of directors (or the
         equivalent) of such entity or (b) to direct or cause direction of the
         management and policies of such entity, whether through the ownership
         of voting securities, by contract or otherwise.

                  "Aggregate Commitment Limit" means One Billion Dollars
         ($1,000,000,000), less the amount of any reductions of the Revolving
         Committed Amount effected pursuant to Section 2.1(d).

                  "Aggregate LC Commitment" means Five Hundred Million Dollars
         ($500,000,000).

                  "Alternate Base Rate" means, for any day, a rate per annum
         equal to the higher of (a) the Prime Rate for such day or (b) the sum
         of the Federal Funds Effective Rate plus 0.5%, in each case changing
         when and as the Prime Rate and the Federal Funds Effective Rate change.

                  "Applicable Percentage" means, for Eurodollar Loans, Index
         Rate Swingline Loans, Facility LC Fees and Commitment Fees, the
         appropriate applicable percentages corresponding to the Debt to
         Capitalization Ratio and the Senior Debt Rating of the Borrower as
         described below:

<TABLE>
<CAPTION>
                           LEVEL I              LEVEL II          LEVEL III               LEVEL IV
----------------------------------------------------------------------------------------------------------
<S>                 <C>                     <C>                <C>                <C>
SENIOR DEBT         GREATER THAN OR EQUAL      BBB / Baa2        BBB- / Baa3      LESS THAN BBB- / Baa3 OR
RATING                 TO BBB+ / Baa1                                              NO SENIOR DEBT RATING

DEBT TO
CAPITALIZATION      LESS THAN OR EQUAL TO   GREATER THAN 35%   GREATER THAN 45%       GREATER THAN 50%*
RATIO                        35%            BUT LESS THAN OR   BUT LESS THAN OR
                                              EQUAL TO 45%       EQUAL TO 50%

APPLICABLE                 0.875%                1.00%              1.25%                  1.50%
PERCENTAGE FOR
EURODOLLAR
LOANS, INDEX
RATE SWINGLINE
LOANS AND
FACILITY LC
FEE RATE

APPLICABLE                 0.175%                0.20%              0.25%                  0.30%
PERCENTAGE FOR
COMMITMENT FEES
</TABLE>

* A Debt-to-Capitalization Ratio greater than 50% would violate Section 7.2(a).

                                       2

<PAGE>

         In the event the Debt to Capitalization Ratio and the Senior Debt
         Rating of the Borrower are not at the same level, then the Applicable
         Percentage shall be at (a) the lower level (i.e., lower pricing) if
         they are only one level apart and (b) one level lower than the higher
         level if they are more than one level apart. In the event of a split in
         ratings between Moody's and S&P, the Senior Debt Rating of the Borrower
         shall be (a) the higher rating if they are one level apart and (ii) one
         level lower than the higher rating if they are more than one level
         apart. The Applicable Percentage shall be determined and adjusted, as
         necessary, on the date of any change in the Senior Debt Rating of the
         Borrower or upon receipt of the officer's certificate required by
         Section 7.1(c) calculating the then Debt to Capitalization Ratio. The
         parties acknowledge that, as of the date hereof, the Applicable
         Percentage is at Level II.

                  "Approved Fund" means any Fund that is administered or managed
         by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
         Affiliate of an entity that administers or manages a Lender.

                  "Arranger" means Banc One Capital Markets, Inc., a Delaware
         corporation, and its successors, in its capacity as Lead Arranger and
         Sole Book Runner.

                  "Assignment Agreement" has the meaning set forth in Section
         11.3(b).

                  "Authorized Officer" means, with respect to any certificate
         required to be delivered pursuant to this Credit Agreement, the chief
         financial officer, treasurer or corporate controller of the Borrower or
         any other person designated in writing by such chief financial officer,
         treasurer or corporate controller.

                  "Bank One" means Bank One, NA, a national banking association
         having its principal office in Chicago, Illinois, in its individual
         capacity, and its successors and assigns.

                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

                  "Borrower" means Pulte Homes, Inc., a Michigan corporation,
         together with any successors and permitted assigns.

                  "Business Day" means any day other than a Saturday, a Sunday,
         a legal holiday or a day on which banking institutions are authorized
         or required by law or other governmental action to close in Chicago,
         Illinois; provided that in the case of Eurodollar Loans, such day is
         also a day on which dealings between banks are carried on in Dollar
         deposits in the London interbank market.

                  "Capital Expenditures" means all expenditures of the Credit
         Parties and their Subsidiaries which, in accordance with GAAP, would be
         classified as capital expenditures, including, without limitation,
         Capital Leases.

                                       3

<PAGE>

                  "Capital Lease" means, as applied to any Person, any lease of
         any property (whether real, personal or mixed) by that Person as lessee
         which, in accordance with GAAP, is or should be accounted for as a
         capital lease on the balance sheet of that Person and the amount of
         such obligation shall be the capitalized amount thereof determined in
         accordance with GAAP.

                  "Capital Stock" means (a) in the case of a corporation, all
         classes of capital stock of such corporation, (b) in the case of a
         partnership, partnership interests (whether general or limited), (c) in
         the case of a limited liability company, membership interests and (d)
         any other interest or participation that confers on a Person the right
         to receive a share of the profits and losses of, or distributions of
         assets of, the issuing Person.

                  "Capitalization" means, as of any date, (a) Indebtedness of
         the Credit Parties (other than to the REITs) plus (b) the consolidated
         net shareholders equity of the Borrower as determined in accordance
         with GAAP minus (i) Investments described in clause (f) of the
         definition of Permitted Investments and (ii) Investments described in
         clause (g) of the definition of Permitted Investments.

                  "Cash Equivalents" means (a) securities issued or directly and
         fully guaranteed or insured by the United States of America or any
         agency or instrumentality thereof (provided that the full faith and
         credit of the United States of America is pledged in support thereof)
         having maturities of not more than 180 days from the date of
         acquisition, (b) Dollar denominated time and demand deposits and
         certificates of deposit of (i) any Lender, (ii) any domestic commercial
         bank having capital and surplus in excess of $500,000,000 or (iii) any
         bank whose short-term commercial paper rating from S&P is at least A-2
         or the equivalent thereof or from Moody's is at least P-2 or the
         equivalent thereof (any such bank being an "Approved Bank"), in each
         case with maturities of not more than 180 days from the date of
         acquisition, (c) commercial paper and variable or fixed rate notes
         issued by any Approved Bank (or by the parent company thereof) or any
         variable rate notes issued by, or guaranteed by, any domestic
         corporation rated A-2 (or the equivalent thereof) or better by S&P or
         P-2 (or the equivalent thereof) or better by Moody's and maturing
         within 180 days of the date of acquisition, (d) repurchase agreements
         with a bank or trust company (including any of the Lenders) or
         recognized securities dealer having capital and surplus in excess of
         $500,000,000 for direct obligations issued by or fully guaranteed by
         the United States of America in which the Borrower shall have a
         perfected first priority security interest (subject to no other Liens)
         and having, on the date of purchase thereof, a fair market value of at
         least 100% of the amount of the repurchase obligations, (e)
         Investments, classified in accordance with GAAP as current assets, in
         money market investment programs registered under the Investment
         Company Act of 1940, as amended, which are administered by reputable
         financial institutions having capital of at least $500,000,000 and the
         portfolios of which are limited to Investments of the character
         described in the foregoing subdivisions (a) through (d), and (f)
         Investments consistent with the Pulte Homes, Inc. Investment Policy as
         set forth on Schedule 6.21(a).

                                       4

<PAGE>

                  "Change of Control" means the occurrence of any of the
         following events: (a) there shall be consummated any consolidation,
         share exchange or merger of the Borrower in which the Borrower is not
         the continuing or surviving corporation or pursuant to which the
         Borrower's Voting Stock would be converted into cash, securities or
         other property, other than, in any case, a merger of the Borrower in
         which the holders of Voting Stock immediately prior to the merger have
         the same or greater proportionate ownership, directly or indirectly, of
         the Voting Stock of the surviving corporation immediately after the
         merger as they had of the Voting Stock of the Borrower immediately
         before the merger; (b) there is a report filed by any Person, including
         Affiliates of the Borrower (other than the Borrower, its Material
         Subsidiaries, employee stock ownership plans or employee benefit plans
         of the Borrower or its subsidiaries, or a Permitted Holder) on Schedule
         13D or 14D-1 (or any successor schedule, form or report under the
         Exchange Act) disclosing that such Person (for the purpose of this
         definition of "Change in Control" only, the term "Person" shall include
         a "person" within the meaning of Section 13(d)(3) and Section 14(d)(2)
         of the Exchange Act or any successor provision to either of the
         foregoing) has become the beneficial owner (as the term "beneficial
         owner" is defined under Rule 13d-3, Rule 13d-5 or any successor rule or
         regulation promulgated under the Exchange Act) of 30% or more of the
         Borrower's Voting Stock; provided, however, that a Person shall not be
         deemed the beneficial owner of, or to own beneficially (i) any
         securities tendered pursuant to a tender or exchange offer made on
         behalf of such Person or any of such Person's Affiliates until such
         tendered securities are accepted for purchase or exchange thereunder or
         (ii) any securities if such beneficial ownership (A) arises solely as a
         result of a revocable proxy delivered in response to a proxy or consent
         solicitation made pursuant to, and in accordance with, the applicable
         rules and regulations under the Exchange Act, and (B) is not also then
         reportable on Schedule 13D (or any successor schedule, form or report)
         under the Exchange Act; or (c) during any period of two consecutive
         calendar years, individuals who, at the beginning of such period
         constituted the board of directors of the Borrower cease for any reason
         to constitute a majority of the directors of the Borrower then in
         office unless such new directors were elected by the directors of the
         Borrower who constituted the board of directors of the Borrower at the
         beginning of such period.

                  "Closing Date" means the date hereof.

                  "Code" means the Internal Revenue Code of 1986 and the rules
         and regulations promulgated thereunder, as amended, modified, succeeded
         or replaced from time to time. References to sections of the Code
         should be construed also to refer to any successor sections.

                  "Collateral Shortfall Amount" has the meaning set forth in
         Section 9.2(c).

                  "Commitment" means (a) with respect to each Lender, the
         Revolving Loan Commitment of such Lender and (b) with respect to the
         Swingline Lender, the Swingline Loan Commitment.

                  "Commitment and Acceptance" has the meaning set forth in
         Section 2.1(e)(i).

                                       5

<PAGE>

                  "Commitment Fees" means the fees payable to the Lenders
         pursuant to Section 3.4(a).

                  "Consolidated Net Tangible Assets" means, as of any date of
         determination, the sum of (a) Tangible Net Worth and (b) Indebtedness
         of the Credit Parties.

                  "Credit Documents" means this Credit Agreement, the Notes,
         each Guaranty, the Intercreditor Agreement, each LC Application and all
         other related agreements and documents issued or delivered hereunder or
         thereunder or pursuant hereto or thereto.

                  "Credit Parties" means the Borrower and the Guarantors and
         "Credit Party" means any one of them.

                  "Credit Party Obligations" means, without duplication, all of
         the obligations of the Credit Parties to the Lenders, any LC Issuer and
         the Administrative Agent, whenever arising, under this Credit
         Agreement, the Notes or any other Credit Document to which any Credit
         Party is a party.

                  "Debt to Capitalization Ratio" means, as of any date, the
         ratio of (a) Indebtedness of the Credit Parties (other than to the
         REITs, provided such REIT has complied with Section 8.1(h)) less (i)
         50% of Qualified Subordinated Debt and (ii) all unrestricted cash and
         Cash Equivalents held by the Credit Parties in excess of $25,000,000
         but not to exceed $300,000,000 to (b) Capitalization.

                  "Default" means any event, act or condition which with notice
         or lapse of time, or both, would constitute an Event of Default.

                  "Defaulting Lender" means, at any time, any Lender that (a)
         has failed to make a Loan or purchase a Participation Interest required
         pursuant to the terms of this Credit Agreement (but only for so long as
         such Loan is not made or such Participation Interest is not purchased),
         (b) has failed to pay to the Administrative Agent or any other Lender
         an amount owed by such Lender pursuant to the terms of this Credit
         Agreement (but only for so long as such amount has not been paid) or
         (c) has been deemed insolvent or has become subject to a bankruptcy or
         insolvency proceeding or with respect to which (or with respect to any
         assets of which) a receiver, trustee or similar official has been
         appointed.

                  "Dollars" and "$" mean dollars in lawful currency of the
         United States of America.

                  "Domestic Subsidiaries" means all direct and indirect
         Subsidiaries of a Credit Party that are domiciled, incorporated or
         organized under the laws of any state of the United States or the
         District of Columbia (or has any material assets located in the United
         States).

                  "EBITDA" means, for any period, the sum of (a) Net Income of
         the Credit Parties for such period (excluding the effect of any
         extraordinary or other non-recurring gains or

                                       6

<PAGE>

         losses outside of the ordinary course of business) plus (b) an amount
         which, in the determination of such Net Income for such period has been
         deducted for (i) interest expense (including previously capitalized
         interest included in the cost of goods sold) of the Credit Parties for
         such period, (ii) total Federal, state, foreign or other income taxes
         of the Borrower for such period and (iii) depreciation and amortization
         of the Credit Parties for such period, all as determined in accordance
         with GAAP plus (c) without duplication, Net Income for such period of
         those Subsidiaries of the Borrower that are not Credit Parties, all as
         determined in accordance with GAAP.

                  "Effective Date" means the date on which the conditions set
         forth in Section 5.1 shall have been fulfilled (or waived in the sole
         discretion of the Lenders).

                  "Eligible Assignee" means (a) any Lender; (b) an Affiliate of
         a Lender; (c) any Approved Fund; and (d) any other Person approved by
         the Administrative Agent and the Borrower (such approval not to be
         unreasonably withheld or delayed); provided that (i) the Borrower's
         consent is not required during the existence and continuation of an
         Event of Default, (ii) approval by the Borrower shall be deemed given
         if no objection is received by the assigning Lender and the
         Administrative Agent from the Borrower within two Business Days after
         notice of such proposed assignment has been received by the Borrower;
         and (iii) neither the Borrower nor an Affiliate of the Borrower shall
         qualify as an Eligible Assignee.

                  "Environmental Claim" means any investigation, written notice,
         violation, written demand, written allegation, action, suit,
         injunction, judgment, order, consent decree, penalty, fine, lien,
         proceeding, or written claim whether administrative, judicial, or
         private in nature arising (a) pursuant to, or in connection with, an
         actual or alleged violation of, any Environmental Law, (b) in
         connection with any Hazardous Material, (c) from any assessment,
         abatement, removal, remedial, corrective, or other response action in
         connection with an Environmental Law or other order of a Governmental
         Authority or (d) from any actual or alleged damage, injury, threat, or
         harm to health, safety, natural resources, or the environment.

                  "Environmental Laws" means any current or future legal
         requirement of any Governmental Authority pertaining to (a) the
         protection of health, safety, and the indoor or outdoor environment,
         (b) the conservation, management, or use of natural resources and
         wildlife, (c) the protection or use of surface water and groundwater or
         (d) the management, manufacture, possession, presence, use, generation,
         transportation, treatment, storage, disposal, release, threatened
         release, abatement, removal, remediation or handling of, or exposure
         to, any hazardous or toxic substance or material or (e) pollution
         (including any release to land, surface water and groundwater) and
         includes, without limitation, the Comprehensive Environmental Response,
         Compensation, and Liability Act of 1980, as amended by the Superfund
         Amendments and Reauthorization Act of 1986, 42 USC 9601 et seq., Solid
         Waste Disposal Act, as amended by the Resource Conservation and
         Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984,
         42 USC 6901 et seq., Federal Water Pollution Control Act, as amended by
         the Clean Water Act of 1977, 33 USC 1251 et seq., Clean Air Act of
         1966, as amended, 42 USC 7401 et seq., Toxic Substances

                                       7

<PAGE>

         Control Act of 1976, 15 USC 2601 et seq., Hazardous Materials
         Transportation Act, 49 USC App. 1801 et seq., Occupational Safety and
         Health Act of 1970, as amended, 29 USC 651 et seq., Oil Pollution Act
         of 1990, 33 USC 2701 et seq., Emergency Planning and Community
         Right-to-Know Act of 1986, 42 USC 11001 et seq., National Environmental
         Policy Act of 1969, 42 USC 4321 et seq., Safe Drinking Water Act of
         1974, as amended, 42 USC 300(f) et seq., any analogous implementing or
         successor law, and any amendment, rule, regulation, order, or directive
         issued thereunder.

                  "Equity Issuance" means any issuance by a Credit Party to any
         Person of (a) shares of its Capital Stock, (b) any shares of its
         Capital Stock pursuant to the exercise of options or warrants or (c)
         any shares of its Capital Stock pursuant to the conversion of any debt
         securities to equity.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended, and any successor statute thereto, as interpreted by
         the rules and regulations thereunder, all as the same may be in effect
         from time to time. References to sections of ERISA shall be construed
         also to refer to any successor sections.

                  "ERISA Affiliate" means an entity, whether or not
         incorporated, which is under common control with any Credit Party or
         any of its Subsidiaries within the meaning of Section 4001(a)(14) of
         ERISA, or is a member of a group which includes any Credit Party or any
         of its Subsidiaries and which is treated as a single employer under
         Sections 414(b), (c), (m), or (o) of the Code.

                  "Eurodollar Base Rate" means, with respect to a Eurodollar
         Loan for the relevant Interest Period, the applicable British Bankers'
         Association LIBOR rate for deposits in U.S. Dollars as reported by any
         generally recognized financial information service, selected by the
         Administrative Agent, as of 11:00 a.m. (London time) two Business Days
         prior to the first day of such Interest Period, and having a maturity
         equal to such Interest Period, provided that, if no such British
         Bankers' Association LIBOR rate is available to the Administrative
         Agent, the applicable Eurodollar Base Rate for the relevant Interest
         Period shall instead be the rate determined by the Administrative Agent
         to be the rate at which Bank One or one of its Affiliate banks offers
         to place deposits in U.S. Dollars with first-class banks in the London
         interbank market at approximately 11:00 a.m. (London time) two Business
         Days prior to the first day of such Interest Period, in the approximate
         amount of Bank One's Pro Rata Share of the relevant Eurodollar Loan and
         having a maturity equal to such Interest Period.

                  "Eurodollar Loan" means a Loan bearing interest based on a
         rate determined by reference to the Eurodollar Rate.

                  "Eurodollar Rate" means, with respect to a Eurodollar Loan for
         the relevant Interest Period, the sum of (i) the quotient of (a) the
         Eurodollar Base Rate applicable to such Interest Period, divided by (b)
         one minus the Reserve Requirement (expressed as a decimal) applicable
         to such Interest Period, plus (ii) the Applicable Percentage.

                                       8

<PAGE>

                  "Event of Default" means any of the events or circumstances
         specified in Section 9.1.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, and the rules and regulations promulgated thereunder, as
         amended, modified, succeeded or replaced from time to time.

                  "Existing Credit Agreement" means that certain Credit
         Agreement, dated as of August 31, 2000, by and among the Borrower,
         certain guarantors (as defined therein), Bank of America, N.A., as
         administrative agent, Bank One, as syndication agent, Comerica Bank, as
         co-agent, and the lenders party thereto, as the same has been amended,
         restated or otherwise modified from time to time.

                  "Existing Letters of Credit" means those Letters of Credit
         listed on Schedule 1.1(b) hereto issued prior to the date hereof by the
         Lenders identified therein for the account of the Borrower.

                  "Extending Lender" has the meaning set forth in Section
         2.5(a).

                  "Extension of Credit" means, as to any Lender or LC Issuer,
         the making of a Loan by such Lender (or a participation therein by a
         Lender), including a Swingline Loan by the Swingline Lender, or the
         issuance of a Facility LC by such LC Issuer or a Modification that
         constitutes an increase of a Facility LC by such LC Issuer.

                  "Extension Required Lenders" has the meaning set forth in
         Section 2.5(a).

                  "Facility Increase" has the meaning set forth in Section
         2.1(e)(i).

                  "Facility LC" has the meaning set forth in Section 4.1.

                  "Facility LC Application" has the meaning set forth in Section
         4.3.

                  "Facility LC Collateral Account" has the meaning set forth in
         Section 4.11.

                  "Facility LC Fee" has the meaning set forth in Section 4.4(a).

                  "Facility LC Fee Rate" means a rate per annum equal to the
         Applicable Percentage with respect to Eurodollar Loans in effect from
         time to time during the term of any Facility LC.

                  "Facility LC Request" has the meaning set forth in Section
         4.3.

                  "Federal Funds Effective Rate" means, for any day, an interest
         rate per annum equal to the weighted average of the rates on overnight
         Federal funds transactions with members of the Federal Reserve System
         arranged by Federal funds brokers on such day, as published for such
         day (or, if such day is not a Business Day, for the immediately

                                       9

<PAGE>

         preceding Business Day) by the Federal Reserve Bank of New York, or, if
         such rate is not so published for any day which is a Business Day, the
         average of the quotations at approximately 10:00 a.m. (Chicago time) on
         such day on such transactions received by the Administrative Agent from
         three Federal funds brokers of recognized standing selected by the
         Administrative Agent in its sole discretion.

                  "Fee Letter" means that certain letter agreement dated as of
         August 4, 2003 among the Borrower, the Arranger and the Administrative
         Agent.

                  "Floating Rate" means, for any day, a rate per annum equal to
         the Alternate Base Rate for such day, in each case changing when and as
         the Alternate Base Rate changes.

                  "Floating Rate Loan" means any Loan bearing interest at a rate
         determined by reference to the Floating Rate.

                  "Fronting Fee" has the meaning set forth in Section 4.4(b).

                  "Fund" means any Person (other than a natural person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "GAAP" means generally accepted accounting principles in the
         United States applied on a consistent basis and subject to Section 1.3.

                  "Governmental Authority" means any Federal, state, local,
         provincial or foreign court or governmental agency, authority,
         instrumentality or regulatory body.

                  "Guarantor" means each REIT, each of the Material Subsidiaries
         of the Borrower and each Additional Credit Party which has executed a
         Guaranty, including any Supplemental Guaranty, hereunder, together with
         their successors and assigns.

                  "Guaranty" means the guaranty, in substantially the form of
         Exhibit 1.1 hereto, executed by the REITs and the Material Subsidiaries
         of the Borrower in favor of the Administrative Agent, for the benefit
         of the Lenders, as any such guaranty may be amended, restated,
         supplemented or otherwise modified from time to time, including by any
         Supplemental Guaranty executed by a Guarantor after the Closing Date.

                  "Guaranty Obligations" means, with respect to any Person,
         without duplication, any obligations (other than endorsements in the
         ordinary course of business of negotiable instruments for deposit or
         collection) guaranteeing or intending to guarantee any Indebtedness of
         any other Person in any manner, whether direct or indirect, and
         including without limitation any obligation, whether or not contingent,
         (a) to purchase any such Indebtedness or other obligation or any
         property constituting security therefor, (b) to advance or provide
         funds or other support for the payment or purchase of such Indebtedness
         or obligation or to maintain working capital, solvency or other balance
         sheet condition of such other Person (including, without limitation,
         maintenance agreements, comfort letters,

                                       10

<PAGE>

         take or pay arrangements, put agreements or similar agreements or
         arrangements) for the benefit of the holder of Indebtedness of such
         other Person, (c) to lease or purchase property, securities or services
         primarily for the purpose of assuring the owner of such Indebtedness
         against loss in respect thereof or (d) to otherwise assure or hold
         harmless the owner of such Indebtedness or obligation against loss in
         respect thereof; provided, that a guaranty of Non-Recourse Land
         Financing shall not be deemed to be a Guaranty Obligation until, and
         only to the extent that, such Non-Recourse Land Financing ceases to be
         Non-Recourse Land Financing. The amount of any Guaranty Obligation
         hereunder shall (subject to any limitations set forth therein) be
         deemed to be an amount equal to the outstanding principal amount (or
         maximum principal amount, if larger) of the Indebtedness in respect of
         which such Guaranty Obligation is made.

                  "Hazardous Materials" means any substance, material or waste
         defined in or regulated under any Environmental Laws.

                  "Hedging Agreements" means any interest rate protection
         agreements, foreign currency exchange agreements, commodity futures
         agreements or other interest or exchange rate hedging agreements.

                  "Indebtedness" of any Person means, without duplication, (a)
         all obligations of such Person for borrowed money, (b) all obligations
         of such Person evidenced by bonds, debentures, notes or similar
         instruments, or upon which interest payments are customarily made, (c)
         all obligations of such Person under conditional sale or other title
         retention agreements relating to property purchased by such Person to
         the extent of the value of such property (other than customary
         reservations or retentions of title under agreements with suppliers
         entered into in the ordinary course of business), (d) all obligations,
         other than intercompany items, of such Person issued or assumed as the
         deferred purchase price of property or services purchased by such
         Person which would appear as liabilities on a balance sheet of such
         Person, (e) all Indebtedness of others secured by (or for which the
         holder of such Indebtedness has an existing right, contingent or
         otherwise, to be secured by) any Lien on, or payable out of the
         proceeds of production from, property owned or acquired by such Person,
         whether or not the obligations secured thereby have been assumed, (f)
         all Guaranty Obligations of such Person, (g) the principal portion of
         all obligations of such Person under (i) Capital Leases and (ii) any
         synthetic lease, tax retention operating lease, off-balance sheet loan
         or similar off-balance sheet financing product of such Person where
         such transaction is considered borrowed money indebtedness for tax
         purposes but is classified as an operating lease in accordance with
         GAAP, (h) all net obligations of such Person in respect of Hedging
         Agreements, (i) all preferred stock issued by such Person and required
         by the terms thereof to be redeemed, or for which mandatory sinking
         fund payments are due by a fixed date, (j) the aggregate amount of
         uncollected accounts receivable of such Person subject at such time to
         a sale of receivables (or similar transaction) regardless of whether
         such transaction is effected without recourse to such Person or in a
         manner that would not be reflected on the balance sheet of such Person
         in accordance with GAAP, (k) obligations of such Person to reimburse
         the issuer of a Letter of Credit for amounts that have been paid by
         such issuer in respect of drawings thereunder, (l)

                                       11

<PAGE>

         current liabilities of such Person for unfunded vested pensions, (m)
         all obligations of such Person to repurchase any securities which
         repurchase obligation is related to the issuance thereof, including,
         without limitation, obligations commonly known as residual equity
         appreciation potential shares. The Indebtedness of any Person shall
         include the Indebtedness of any partnership or unincorporated joint
         venture in which such Person is legally obligated.

                  "Index Rate Swingline Loan" means a Swingline Loan bearing
         interest at the Adjusted LIBOR Market Index Rate.

                  "Intellectual Property" has the meaning set forth in Section
         6.19.

                  "Intercreditor Agreement" means an Intercreditor and
         Subordination Agreement among the Administrative Agent, on behalf of
         the Lenders, certain other creditors, and Asset Seven Corp., Pulte
         Realty Corporation and any other REITs, as subordinated creditors,
         substantially in form of Exhibit 1.2.

                  "Interest Coverage Ratio" means, as of the end of each fiscal
         quarter of the Borrower for the twelve month period ending on such
         date, the ratio of (a) EBITDA for the applicable period to (b) interest
         incurred by the Credit Parties, whether such interest was expensed,
         capitalized, paid, accrued or scheduled to be paid or accrued.

                  "Interest Payment Date" means (a) as to Floating Rate Loans,
         the last day of each calendar month and the Maturity Date and (b) as to
         Eurodollar Loans, the last day of each applicable Interest Period and
         the Maturity Date and in addition, where the applicable Interest Period
         for a Eurodollar Loan is greater than three months, then also the date
         three months from the beginning of the Interest Period and each three
         months thereafter.

                  "Interest Period" means, (a) with respect to Eurodollar Loans,
         a period of one, two, three or six months' duration, as the Borrower
         may elect, commencing, in each case, on the date of the borrowing
         (including continuations and conversions thereof) and (b) with respect
         to Index Rate Swingline Loans, a period beginning on the date of
         advance and ending on the date specified in the applicable Swingline
         Loan Request, which shall be between one and seven Business Days in
         duration; provided, however, that (i) if any Interest Period would end
         on a day which is not a Business Day, such Interest Period shall be
         extended to the next succeeding Business Day (except that where the
         next succeeding Business Day falls in the next succeeding calendar
         month, such Interest Period shall end on the next preceding Business
         Day), (ii) no Interest Period shall extend beyond the Maturity Date,
         and (iii) with respect to Eurodollar Loans, where an Interest Period
         begins on a day for which there is no numerically corresponding day in
         the calendar month in which the Interest Period is to end, such
         Interest Period shall end on the last Business Day of such calendar
         month.

                  "Investment" in any Person means (a) the acquisition (whether
         for cash, property, services, assumption of Indebtedness, securities or
         otherwise) of assets (other than assets acquired in the ordinary course
         of business), shares of Capital Stock, bonds, notes,

                                       12

<PAGE>

         debentures, joint venture, partnership or other ownership interests or
         other securities of such other Person or (b) any deposit with, or
         advance, loan or other extension of credit to, such Person (other than
         deposits made in connection with the purchase of equipment or other
         assets in the ordinary course of business) or (c) any other capital
         contribution to or investment in such Person, including, without
         limitation, any Guaranty Obligation incurred for the benefit of such
         Person and any support provided for a Letter of Credit issued on behalf
         of such Person.

                  "Issuance Date" means, with respect to a Facility LC, the date
         on which such Facility LC is issued.

                  "LC Issuer" means each of Bank One and such other Lender
         selected by the Borrower with the approval of the Administrative Agent
         (which approval shall not be unreasonably withheld), to issue such
         Facility LC, provided such other Lender consents to act in such
         capacity.

                  "LC Obligations" means, at any time, the sum, without
         duplication, of (i) the aggregate undrawn stated amount under all
         Facility LCs outstanding at such time plus (ii) the aggregate unpaid
         amount at such time of all Reimbursement Obligations.

                  "LC Payment Date" has the meaning set forth in Section 4.5.

                  "Lender" means any of the Persons identified as a "Lender" on
         the signature pages hereto, and any Eligible Assignee which may become
         a Lender by way of assignment in accordance with the terms hereof,
         together with their successors and permitted assigns.

                  "Lending Installation" means, with respect to a Lender or the
         Administrative Agent, any office, branch, subsidiary or affiliate of
         such Lender or the Administrative Agent.

                  "Letter of Credit" of a Person means a letter of credit or
         similar instrument which is issued upon the application of such Person
         or upon which such Person is an account party or for which such Person
         is in any way liable.

                  "LIBOR Market Index Rate" means, for any day with respect to
         an Index Rate Swingline Loan, the applicable British Bankers'
         Association week LIBOR rate for deposits in U.S. Dollars having a
         maturity of one week as reported by any generally recognized financial
         information service as of 11:00 a.m. (London time) on such day,
         provided that, if no such British Bankers' Association LIBOR rate is
         available to the Administrative Agent, the applicable LIBOR Market
         Index Rate shall instead be the rate determined by the Administrative
         Agent to be the rate at which Bank One or one of its Affiliate banks
         offers to place deposits in U.S. Dollars with first-class banks in the
         London interbank market at approximately 11:00 a.m. (London time) on
         such day, in the approximate amount of the applicable Index Rate
         Swingline Loan and having a maturity of one week.

                                       13

<PAGE>

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, security interest, encumbrance, lien (statutory or
         otherwise), preference, priority or charge of any kind, including,
         without limitation, any agreement to give any of the foregoing, any
         conditional sale or other title retention agreement, and any lease in
         the nature thereof.

                  "Loan" or "Loans" means the Revolving Loans and the Swingline
         Loans (or a portion of any Revolving Loan or Swingline Loan),
         individually or collectively, as appropriate.

                  "Material Adverse Effect" means a material adverse effect on
         (a) the business, assets, liabilities (actual or contingent),
         operations, condition (financial or otherwise) or prospects of the
         Credit Parties taken as a whole, (b) the ability of the Credit Parties
         taken as a whole to perform their obligations under this Credit
         Agreement or any of the other Credit Documents, or (c) the validity or
         enforceability of this Credit Agreement, any of the other Credit
         Documents, or the rights and remedies of the Lenders hereunder or
         thereunder taken as a whole.

                  "Material Subsidiary" means any Domestic Subsidiary of the
         Borrower, now owned or hereafter acquired, that has assets with a fair
         market value of $10,000,000 or greater other than as set forth in
         clauses (a), (b), (c) and (d) below; provided that in no event may
         there exist Domestic Subsidiaries of the Borrower (other than the
         Excluded Subsidiaries) that have assets, in the aggregate, with a fair
         market value in excess of $50,000,000 that are not Guarantors
         hereunder. For purposes of this definition, the following Subsidiaries
         (collectively, the "Excluded Subsidiaries") shall not be considered
         Material Subsidiaries: (a) Pulte Mortgage LLC; (b) First Heights Bank;
         (c) North American Builders Indemnity Company; (d) Subsidiaries the
         investment in which was made as permitted by clause (f) of the
         definition of Permitted Investments; (e) any Subsidiary formed for the
         specific purpose of (i) acquiring mortgages or other assets from a
         Credit Party, for cash or Cash Equivalents and at a value which is
         comparable to that which would be obtained for such assets on an arm's
         length transaction and (ii) entering into a securitization program (or
         similar transaction or series of transactions) with respect to the
         acquired assets; provided that the sole recourse of such Subsidiary's
         creditors is the assets of such Subsidiary or another Person that is
         not a Credit Party; and (f) a Domestic Subsidiary whose sole asset is
         the ownership of a foreign entity or assets of a foreign entity;
         provided that the investment in any such Subsidiary subsequent to the
         Closing Date must be a Permitted Investment.

                  "Maturity Date" means September 30, 2008, as such date may be
         extended in accordance with the terms of Section 2.5 (other than with
         respect to the Commitments and Loans of any Refusing Lender, in which
         case the applicable Maturity Date for such Commitments and Loans shall
         be the RL Maturity Date).

                  "Modify" and "Modification" are defined in Section 4.1.

                                       14

<PAGE>

                  "Moody's" means Moody's Investors Service, Inc., or any
         successor or assignee of the business of such company in the business
         of rating securities.

                  "Mortgage Banking Subsidiaries" means Pulte Mortgage LLC and
         any other Subsidiary of the Borrower engaged primarily in the mortgage
         banking business.

                  "Multiemployer Plan" means a Plan covered by Title IV of ERISA
         which is a multiemployer plan as defined in Section 3(37) or 4001(a)(3)
         of ERISA.

                  "Multiple Employer Plan" means a Plan covered by Title IV of
         ERISA, other than a Multiemployer Plan, with respect to which any
         Credit Party or any of its Subsidiaries or any ERISA Affiliate and at
         least one employer other than a Credit Party or any of its Subsidiaries
         or any ERISA Affiliate are contributing sponsors.

                  "Net Income" means, with respect to any Person for any period,
         the net income after taxes of such Person for such period, as
         determined in accordance with GAAP.

                  "New Lender" means a Lender or an Eligible Assignee, in each
         case approved by the Borrower and the Administrative Agent, that agrees
         to become a Lender, or to increase its Commitment, pursuant to Section
         2.1(e).

                  "Non-Excluded Taxes" has the meaning set forth in Section
         3.13(a).

                  "Non-Recourse Land Financing" means any Indebtedness of any
         Credit Party for which the owner of such Indebtedness has no recourse,
         directly or indirectly, to a Credit Party for the principal of,
         premium, if any, and interest on such Indebtedness, and for which a
         Credit Party is not, directly or indirectly, obligated or otherwise
         liable for the principal of, premium, if any, and interest on such
         Indebtedness, except pursuant to mortgages, deeds of trust or other
         security interests or other recourse obligations or liabilities in
         respect of specific land or other real property interests of a Credit
         Party; provided that recourse obligations or liabilities of a Credit
         Party solely for indemnities, covenants or breach of warranty,
         representation or covenant in respect of any Indebtedness will not
         prevent Indebtedness from being classified as Non-Recourse Land
         Financing.

                  "Non-U.S. Lender" has the meaning set forth in Section
         3.13(b)(i).

                  "Note" or "Notes" means the Revolving Notes and the Swingline
         Note, individually or collectively, as appropriate.

                  "Notice of Borrowing" means a request by the Borrower for a
         Revolving Loan delivered pursuant to and in accordance with Section
         2.1(b).

                  "Notice of Continuation/Conversion" means a request by the
         Borrower to continue an existing Eurodollar Loan for a new Interest
         Period or to convert a Eurodollar Loan to a Floating Rate Loan (other
         than a Swingline Loan) or a Floating Rate Loan (other than a

                                       15
<PAGE>

Swingline Loan) to a Eurodollar Loan delivered pursuant to and in accordance
with Section 2.3.

         "Participation Interest" means the Extension of Credit by a Lender by
way of a purchase of a participation in any Loans as provided in Section 2.2 or
Section 3.8.

         "PBGC" means the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA and any successor thereto.

         "Permitted Holder" means (i) William J. Pulte, (ii) any of his
Affiliates, parents, spouse, descendants and spouses of descendants or (iii) any
trusts or other entities controlled by Mr. Pulte and his respective estates,
heirs, administrators or personal representatives.

         "Permitted Investments" means Investments which are (a) cash or Cash
Equivalents, (b) accounts receivable created, acquired or made in the ordinary
course of business and payable or dischargeable in accordance with customary
trade terms, (c) inventory, raw materials and general intangibles acquired in
the ordinary course of business, (d) Investments by a Credit Party in another
Credit Party, (e) loans to directors, officers, employees, agents, customers or
suppliers in the ordinary course of business, including the financing to
purchasers of homes and other residential properties from a Credit Party, not to
exceed, in the aggregate, $10,000,000 at any one time, (f) Investments in
international home building and related ventures not to exceed $150,000,000
during the term of this Credit Agreement, (g) Investments in Mortgage Banking
Subsidiaries in an amount not to exceed at any one time the sum of (i)
$130,000,000 plus (ii) amounts (net of applicable taxes) received by the Credit
Parties from any Mortgage Banking Subsidiaries, as a dividend, subsequent to the
Closing Date, (h) acquisitions of mortgages from any Mortgage Banking
Subsidiaries at market or better than market terms for similar types of loans,
(i) Investments in Capital Expenditures, or (j) other Investments (in addition
to those set forth above) not to exceed, in the aggregate, $200,000,000 at any
one time.

         "Permitted Liens" means (a) Liens securing Credit Party Obligations;
(b) Liens for taxes not yet due or Liens for taxes being contested in good faith
by appropriate proceedings for which adequate reserves determined in accordance
with GAAP have been established (and as to which the property subject to any
such Lien is not yet subject to foreclosure, sale or loss on account thereof);
(c) Liens in respect of property imposed by law arising in the ordinary course
of business such as materialmen's, mechanics', warehousemen's, carrier's,
landlords' and other nonconsensual statutory Liens which are not yet due and
payable or which are being contested in good faith by appropriate proceedings
for which adequate reserves determined in accordance with GAAP have been
established (and as to which the property subject to any such Lien is not yet
subject to foreclosure, sale or loss on account thereof); (d) pledges or
deposits made in the ordinary course of business to secure payment of worker's
compensation insurance, unemployment insurance, pensions or social security
programs; (e) Liens arising from good faith deposits in connection with or to
secure performance of tenders, bids, leases, government contracts, performance
and return-of-

                                       16

<PAGE>

money bonds and other similar obligations incurred in the ordinary course of
business (other than obligations in respect of the payment of borrowed money);
(f) Liens arising from good faith deposits in connection with or to secure
performance of statutory obligations and surety and appeal bonds; (g) easements,
rights-of-way, restrictions (including zoning restrictions), matters of plat,
minor defects or irregularities in title and other similar charges or
encumbrances not, in any material respect, impairing the use of the encumbered
property for its intended purposes; (h) judgment Liens that would not constitute
an Event of Default; (i) Liens in connection with Capital Leases and Liens
securing Indebtedness permitted by Section 8.1(g) and (i); (j) Liens arising by
virtue of any statutory or common law provision relating to banker's liens,
rights of setoff or similar rights as to deposit accounts or other funds
maintained with a creditor depository institution; (k) Liens existing on the
Closing Date and identified on Schedule 1.1(b); (l) mortgage Liens granted to
secure Indebtedness of a Credit Party to a REIT that is permitted under Section
8.1(h), so long as such mortgage Liens are unrecorded and unperfected; and (m)
Liens granted to secure any Indebtedness permitted by Section 8.1(b); provided
that (i) no such Lien shall extend to any property other than the property
subject thereto on the Closing Date and (ii) the principal amount of the
Indebtedness secured by such Liens shall not be increased from that existing as
of the Closing Date (as such Indebtedness has been amortized subsequent to the
Closing Date).

         "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other enterprise
(whether or not incorporated), or any Governmental Authority.

         "Plan" means any employee benefit plan (as defined in Section 3(3) of
ERISA) which is covered by ERISA and with respect to which any Credit Party or
any of its Subsidiaries or any ERISA Affiliate is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an
"employer" within the meaning of Section 3(5) of ERISA.

         "Prime Rate" means the rate per annum equal to the prime rate of
interest announced by Bank One from time to time as its "prime rate" (it being
acknowledged that such announced prime rate may not necessarily be the lowest
rate charged by Bank One to any of its customers), changing when and as said
prime rate changes.

         "Pro Rata Share" means, as to any Lender at any time, the ratio of (a)
such Lender's Revolving Loan Commitment to (b) the Revolving Committed Amount,
as such percentage may be increased, reduced or modified at any time or from
time to time pursuant to the terms hereof. The Pro Rata Share for each Lender on
the Closing Date shall be as set forth on Schedule 1.1(a).

         "Qualified Subordinated Debt" means Subordinated Debt issued by the
Credit Parties, which (i) matures on or after the Maturity Date (and reduced,
for purposes of this definition, by any principal amortization payments of such
Subordinated Debt payable prior to the Maturity Date) and (ii) is in an
aggregate amount not to exceed $300,000,000.

                                       17

<PAGE>

         "Real Properties" means such real properties as the Credit Parties may
own or lease (as lessee or sublessee) from third parties from time to time.

         "Refusing Lender" has the meaning set forth in Section 2.5(a).

         "Register" has the meaning set forth in Section 11.3(c).

         "Regulation A, D, O, T, U, or X" means Regulation A, D, O, T, U or X,
respectively, of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor to all or a portion thereof.

         "Reimbursement Obligations" means, at any time, the aggregate of all
obligations of the Borrower then outstanding under Section 4 to reimburse the LC
Issuers for amounts paid by the LC Issuers in respect of any one or more
drawings under Facility LCs.

         "REIT" means Asset Seven Corp., Pulte Realty Corporation and any other
Subsidiary of the Borrower that properly elects to be taxed as a real estate
investment trust under Section 856(c) of the Code.

         "Reportable Event" means a "reportable event" as defined in Section
4043 of ERISA with respect to which the notice requirements to the PBGC have not
been waived.

         "Required Lenders" means Lenders whose aggregate Credit Exposure (as
hereinafter defined) constitutes at least 66-2/3% of the Credit Exposure of all
Lenders at such time; provided, however, that if any Lender shall be a
Defaulting Lender at such time then there shall be excluded from the
determination of Required Lenders the aggregate principal amount of Credit
Exposure of such Lender at such time. For purposes of the preceding sentence,
the term "Credit Exposure" as applied to each Lender shall mean (a) at any time
prior to the termination of the Commitments, the Pro Rata Share of such Lender
multiplied by the Revolving Committed Amount and (b) at any time after the
termination of the Commitments, the sum of (i) the principal balance of the
outstanding Loans of such Lender plus (ii) such Lender's Participation Interests
in the face amount of the outstanding Swingline Loans plus (iii) such Lender's
Pro Rata Share of the LC Obligations.

         "Requirement of Law" means, as to any Person, the articles or
certificate of incorporation and by-laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or final,
non-appealable determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or to which
any of its material property is subject.

         "Reserve Requirement" means, with respect to a Eurodollar Interest
Period, the maximum aggregate reserve requirement (including all basic,
supplemental, marginal and other reserves) which is imposed under Regulation D
on Eurocurrency liabilities.

                                       18

<PAGE>

         "Revolving Committed Amount" means the aggregate of the Revolving Loan
Commitments of all Lenders, as such amount may be increased, reduced or modified
at any time or from time to time pursuant to the terms hereof. The Revolving
Committed Amount on the Closing Date shall be EIGHT HUNDRED FIFTY MILLION
DOLLARS ($850,000,000).

         "Revolving Loan Commitment" means, as to any Lender, the obligation of
such Lender to make Revolving Loans hereunder, to participate in the Facility
LCs issued hereunder and to participate in Swingline Loans made by the Swingline
Lender (to the extent provided for herein), all for the account of the Borrower
in an aggregate principal amount at any one time outstanding not to exceed the
amount set forth opposite such Lender's name on Schedule 1.1(a) hereto, as such
amount may be increased, reduced or modified at any time or from time to time
pursuant to the terms hereof.

         "Revolving Loans" means the Revolving Loans made to the Borrower by the
Lenders pursuant to Section 2.1.

         "Revolving Note" or "Revolving Notes" means the promissory notes of the
Borrower in favor of each of the Lenders evidencing the Revolving Loans provided
pursuant to Section 2.1, individually or collectively, as appropriate, as such
promissory notes may be amended, modified, supplemented, extended, renewed or
replaced from time to time and as evidenced in the form of Exhibit 2.1(f).

         "RL Maturity Date" has the meaning set forth in Section 2.5(a).

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, or any successor or assignee of the business of such
division in the business of rating securities.

         "Sale and Leaseback Transaction" means a sale or transfer made by a
Credit Party (except a sale or transfer made from one Credit Party to another
Credit Party) of any property which is either (a) a manufacturing plant,
warehouse, office building or model home whose book value constitutes 1% or more
of Consolidated Net Tangible Assets as of the date of determination or (b) any
property which is not a manufacturing plant, warehouse, office building or model
home whose book value constitutes 5% or more of Consolidated Net Tangible Assets
as of the date of determination, if such sale or transfer is made with the
intention of leasing, or as part of an arrangement involving the lease of, such
property to the Borrower or a Material Subsidiary.

         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

         "Senior Debt Rating" means, at any date, the rating of the Borrower's
long-term unsecured debt by Moody's or S&P. If at any time neither Moody's nor
S&P issues a rating of the Borrower's long-term unsecured debt, no Senior Debt
Rating shall exist.

                                       19

<PAGE>

         "Single Employer Plan" means any Plan which is covered by Title IV of
ERISA, but which is not a Multiemployer Plan.

         "Solvent" means, with respect to each Credit Party as of a particular
date, that on such date (a) such Credit Party is able to pay its debts and other
liabilities, contingent obligations and other commitments as they mature in the
normal course of business, (b) such Credit Party does not intend to, and does
not believe that it will, incur debts or liabilities beyond such Credit Party's
ability to pay as such debts and liabilities mature in their ordinary course,
(c) such Credit Party is not engaged in a business or a transaction, and is not
about to engage in a business or a transaction, for which such Credit Party's
assets would constitute unreasonably small capital after giving due
consideration to the prevailing practice in the industry in which such Credit
Party is engaged or is to engage, (d) the fair value of the assets of such
Credit Party is greater than the total amount of liabilities (excluding (i)
letters of credit and surety bonds issued in the normal course of business in
connection with such Credit Party's development activities and (ii) intercompany
indebtedness owed to other Credit Parties), including, without limitation,
contingent liabilities of such Credit Party and (e) the present fair saleable
value of the assets of such Credit Party is not less than the amount that will
be required to pay the probable liability of such Credit Party on its debts as
they become absolute and matured. In computing the amount of contingent
liabilities at any time, it is intended that such liabilities will be computed
at the amount which, in light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

         "Subordinated Debt" means any Indebtedness incurred by a Credit Party
that is subordinated in full to the Credit Party Obligations on subordination
terms acceptable to the Administrative Agent.

         "Subsidiary" means, as to any Person, (a) any corporation more than 50%
of whose stock of any class or classes having by the terms thereof ordinary
voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time, any class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time owned by such Person directly or indirectly
through Subsidiaries and (b) any partnership, association, joint venture,
limited liability company or other entity in which such person directly or
indirectly through Subsidiaries has more than a 50% equity interest at any time.

         "Supplemental Guaranty" means any Supplemental Guaranty (in the form of
Exhibit A to the form of Guaranty attached hereto as Exhibit 1.1) executed and
delivered by a REIT or a Material Subsidiary of the Borrower after the Closing
Date.

         "Swingline Committed Amount" means Fifty Million Dollars ($50,000,000).

         "Swingline Lender" means Bank One.

                                       20

<PAGE>

         "Swingline Loan Commitment" means, with respect to the Swingline
Lender, the commitment of the Swingline Lender to make Swingline Loans available
to the Borrower in the principal amount of up to the Swingline Committed Amount.

         "Swingline Loan Request" means a request by the Borrower for a
Swingline Loan pursuant to and in accordance with Section 2.2(b).

         "Swingline Loans" means the loans made by the Swingline Lender pursuant
to Section 2.2.

         "Swingline Note" means the promissory note of the Borrower in favor of
the Swingline Lender evidencing the Swingline Loans provided pursuant to Section
2.2, as such promissory note may be amended, modified, supplemented, extended,
renewed or replaced from time to time in and as evidenced by the form of Exhibit
2.2(e).

         "Tangible Net Worth" means, as of any date, shareholders' equity or net
worth of the Borrower, as determined in accordance with GAAP minus (i)
intangibles (as determined in accordance with GAAP) and (ii) Investments
described in clause (f) of the definition of Permitted Investments.

         "Termination Event" means (a) with respect to any Plan, the occurrence
of a Reportable Event or the substantial cessation of operations (within the
meaning of Section 4062(e) of ERISA); (b) the withdrawal of any Credit Party or
any of its Subsidiaries or any ERISA Affiliate from a Multiple Employer Plan
during a plan year in which it was a substantial employer (as such term is
defined in Section 4001(a)(2) of ERISA), or the termination of a Multiple
Employer Plan; (c) the distribution of a notice of intent to terminate or the
actual termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA;
(d) the institution of proceedings to terminate or the actual termination of a
Plan by the PBGC under Section 4042 of ERISA; (e) any event or condition which
might reasonably constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan; (f) the
complete or partial withdrawal of any Credit Party or any of its Subsidiaries or
any ERISA Affiliate from a Multiemployer Plan; or (g) the adoption of an
amendment to any Plan requiring the provision of security to such Plan pursuant
to Section 307 of ERISA.

         "Unused Revolving Committed Amount" means, for any period beginning on
or after the Closing Date and ending on or before the Maturity Date, the daily
average for such period of the amount by which (a) the Revolving Committed
Amount exceeds (b) the sum of the aggregate principal amount of all Revolving
Loans outstanding plus the aggregate amount of all Swingline Loans outstanding
plus the aggregate amount of all LC Obligations outstanding.

         "Upfront Fees" means the fees payable to the Lenders pursuant to
Section 3.4(d).

                                       21

<PAGE>

         "Voting Stock" of a corporation means all classes of the Capital Stock
of such corporation then outstanding and normally entitled to vote in the
election of directors.

         1.2      COMPUTATION OF TIME PERIODS AND OTHER DEFINITIONAL PROVISIONS.

         For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding." References in this Agreement to "Articles", "Sections",
"Schedules" or "Exhibits" shall be to Articles, Sections, Schedules or Exhibits
of or to this Agreement unless otherwise specifically provided.

         1.3      ACCOUNTING TERMS.

         Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall be prepared, in accordance with GAAP applied on a consistent
basis. All calculations made for the purposes of determining compliance with
this Credit Agreement shall (except as otherwise expressly provided herein) be
made by application of GAAP applied on a basis consistent with the most recent
annual or quarterly financial statements delivered pursuant to Section 7.1 (or,
prior to the delivery of the first financial statements pursuant to Section 7.1,
consistent with the financial statements described in Section 5.1(d)); provided,
however, if (a) the Borrower shall object to determining such compliance on such
basis at the time of delivery of such financial statements due to any change in
GAAP or the rules promulgated with respect thereto or (b) the Administrative
Agent or the Required Lenders shall so object in writing within 30 days after
delivery of such financial statements, then such calculations shall be made on a
basis consistent with GAAP as in effect as of the date of the most recent
financial statements delivered by the Borrower to the Lenders to which no such
objection shall have been made.

         1.4      TIME.

         All references to time herein shall be references to Central Standard
Time or Central Daylight Savings Time, as the case may be, unless specified
otherwise.

                                   SECTION 2

                               CREDIT FACILITIES

         2.1      REVOLVING LOANS.

                  (a)      Revolving Loan Commitment.

                           (i)      Subject to the terms and conditions set
                  forth herein, each Lender severally agrees to make revolving
                  loans (each a "Revolving Loan" and collectively the "Revolving
                  Loans") to the Borrower, in Dollars, at any time and from time
                  to time, during the period from and including the Effective
                  Date to but

                                       22

<PAGE>

                  not including the Maturity Date (or such earlier date if the
                  Revolving Committed Amount has been terminated as provided
                  herein); provided, however, that (A) the sum of the aggregate
                  amount of Revolving Loans outstanding plus the aggregate
                  amount of Swingline Loans outstanding plus the aggregate
                  amount of all LC Obligations outstanding shall not exceed the
                  Revolving Committed Amount and (B) with respect to each
                  individual Lender (other than the Swingline Lender), the
                  Lender's Pro Rata Share of outstanding Revolving Loans plus
                  such Lender's Pro Rata Share of outstanding Swingline Loans
                  plus such Lender's Pro Rata Share of outstanding LC
                  Obligations shall not exceed such Lender's Commitment. Subject
                  to the terms of this Credit Agreement (including Section 3.3),
                  the Borrower may borrow, repay and reborrow Revolving Loans.

                           (ii)     Subject to the terms and conditions set
                  forth herein, each Lender severally agrees to participate in
                  Facility LCs issued pursuant to Section 4 for the account of
                  the Borrower; provided that in no event may the aggregate
                  amount of all outstanding LC Obligations exceed the lesser of
                  (A) the Aggregate LC Commitment or (B) an amount equal to the
                  Revolving Committed Amount minus the sum of all outstanding
                  Loans.

                  (b)      Method of Borrowing for Revolving Loans. By no later
         than 11:00 a.m. (i) on the date of the requested borrowing of Revolving
         Loans that will be Floating Rate Loans or (ii) three Business Days
         prior to the date of the requested borrowing of Revolving Loans that
         will be Eurodollar Loans, the Borrower shall telephone the
         Administrative Agent with the information described below as well as
         submit a written Notice of Borrowing (which may be submitted via
         telecopy) to the Administrative Agent setting forth (A) the amount
         requested, (B) whether such Revolving Loans shall accrue interest at
         the Floating Rate or the Eurodollar Rate, (C) with respect to Revolving
         Loans that will be Eurodollar Loans, the Interest Period applicable
         thereto and (D) certification that the Borrower has complied in all
         respects with Section 5.2 and, to the extent that the Revolving Loan
         requested is the initial Extension of Credit, Section 5.1. Revolving
         Loans made on the Effective Date may be Floating Rate Loans or, subject
         to compliance by the Borrower with the terms of this Section 2.1(b) and
         delivery by the Borrower to the Administrative Agent of a funding
         indemnity letter in form and substance satisfactory to the
         Administrative Agent, Eurodollar Loans or a combination thereof.

                  (c)      Funding of Revolving Loans. Upon receipt of a Notice
         of Borrowing, the Administrative Agent shall promptly inform the
         Lenders as to the terms thereof. Each Lender shall make its Pro Rata
         Share of the requested Revolving Loans available to the Administrative
         Agent by 2:00 p.m. on the date specified in the Notice of Borrowing by
         deposit, in Dollars, of immediately available funds at its address
         specified in or pursuant to Section 11.1.

                  No Lender shall be responsible for the failure or delay by any
         other Lender in its obligation to make Revolving Loans hereunder;
         provided, however, that the failure of any Lender to fulfill its
         obligations hereunder shall not relieve any other Lender of its

                                       23

<PAGE>

         obligations hereunder. Unless the Administrative Agent shall have been
         notified by any Lender prior to the date of any such Revolving Loan
         that such Lender does not intend to make available to the
         Administrative Agent its portion of the Revolving Loans to be made on
         such date, the Administrative Agent may assume that such Lender has
         made such amount available to the Administrative Agent on the date of
         such Revolving Loans, and the Administrative Agent in reliance upon
         such assumption, may (in its sole discretion but without any obligation
         to do so) make available to the Borrower a corresponding amount. If
         such corresponding amount is not in fact made available to the
         Administrative Agent, the Administrative Agent shall be able to recover
         such corresponding amount from such Lender. If such Lender does not pay
         such corresponding amount forthwith upon the Administrative Agent's
         demand therefor, the Administrative Agent will promptly notify the
         Borrower, and the Borrower shall immediately pay such corresponding
         amount to the Administrative Agent. The Administrative Agent shall also
         be entitled to recover from the Lender or the Borrower, as the case may
         be, interest on such corresponding amount in respect of each day from
         the date such corresponding amount was made available by the
         Administrative Agent to the Borrower to the date such corresponding
         amount is recovered by the Administrative Agent at a per annum rate
         equal to (i) from the Borrower at the applicable rate for such
         Revolving Loan pursuant to the Notice of Borrowing and (ii) from a
         Lender at the Federal Funds Effective Rate.

                  (d)      Reductions of Revolving Committed Amount.

                           (i)      Upon at least three Business Days' notice,
                  the Borrower shall have the right to permanently reduce,
                  without premium or penalty, all or part of the aggregate
                  unused amount of the Revolving Committed Amount at any time or
                  from time to time; provided that (A) each partial reduction
                  shall be in an aggregate amount at least equal to $5,000,000
                  and in integral multiples of $1,000,000 above such amount and
                  (B) no reduction shall be made which would reduce the
                  Revolving Committed Amount to an amount less than the
                  aggregate amount of Revolving Loans outstanding plus the
                  aggregate amount of Swingline Loans outstanding plus the
                  aggregate amount of all LC Obligations outstanding.

                           (ii)     Any reduction in (or termination of) the
                  Revolving Committed Amount may not be reinstated without the
                  consent of all the Lenders; provided, however, the Borrower
                  shall still be entitled to increase the Revolving Committed
                  Amount in accordance with the terms of Section 2.1(e). The
                  Administrative Agent shall immediately notify the Lenders of
                  any reduction in the Revolving Committed Amount.

                  (e)      Increase of Revolving Committed Amount.

                           (i)      Request for Increase. The Borrower may, at
                  any time and from time to time, request, by notice to the
                  Administrative Agent, the Administrative Agent's approval of
                  an increase of the Revolving Committed Amount ("Facility
                  Increase"), within the limitations hereafter described, which
                  request shall set forth

                                       24

<PAGE>

                  the amount of each such requested Facility Increase. The
                  Administrative Agent's approval of such request shall not be
                  unreasonably withheld. Within twenty (20) days of such
                  request, the Administrative Agent shall advise the Borrower of
                  its approval or disapproval of such request; failure to so
                  advise the Borrower shall constitute approval. If the
                  Administrative Agent approves any such Facility Increase, then
                  the Revolving Committed Amount may be so increased (up to the
                  amount of such approved Facility Increase, in the aggregate)
                  by having one or more New Lenders increase the amount of their
                  then existing Revolving Loan Commitments or become Lenders
                  with a new Revolving Loan Commitment hereunder, subject to and
                  in accordance with the provisions of this Section 2.1(e). Any
                  Facility Increase shall be subject to the following
                  limitations and conditions: (A) any increase (in the
                  aggregate) in the Revolving Committed Amount and the amount
                  (in the aggregate) of any new Revolving Loan Commitment of any
                  New Lender or the amount (in the aggregate) of any increase in
                  the Revolving Loan Commitment of any New Lender, shall (unless
                  otherwise agreed by the Borrower and the Administrative Agent)
                  not be less than $5,000,000 (and shall be in integral
                  multiples of $1,000,000 if in excess thereof); (B) no Facility
                  Increase shall increase the Revolving Committed Amount to an
                  amount in excess of the Aggregate Commitment Limit; (C) the
                  Borrower and each New Lender shall have executed and delivered
                  a commitment and acceptance (the "Commitment and Acceptance")
                  substantially in the form of Exhibit 2.1(e) hereto, and the
                  Administrative Agent shall have accepted and executed the
                  same; (D) the Borrower shall have executed and delivered to
                  the Administrative Agent such Revolving Notes as the
                  Administrative Agent shall require to effect such Facility
                  Increase; (E) the Borrower shall have delivered to the
                  Administrative Agent opinions of counsel (substantially
                  similar to the forms of opinions delivered pursuant to Section
                  5.1(c), modified to apply to the Facility Increase and each
                  Revolving Note and Commitment and Acceptance executed and
                  delivered in connection therewith); (F) the Guarantors shall
                  in writing have consented to the Facility Increase and have
                  agreed that their Guaranties continue in full force and
                  effect, and (G) the Borrower and each New Lender shall
                  otherwise have executed and delivered such other instruments
                  and documents as the Administrative Agent shall have
                  reasonably requested in connection with such Facility
                  Increase. The form and substance of the documents required
                  under clauses (A) through (G) above shall be reasonably
                  acceptable to the Administrative Agent. The Administrative
                  Agent shall provide written notice to all of the Lenders
                  hereunder of any Facility Increase.

                           (ii)     Loans by New Lenders. Upon the effective
                  date of any increase in the Revolving Committed Amount
                  pursuant to the provisions hereof, which effective date shall
                  be mutually agreed upon by the Borrower, each New Lender and
                  the Administrative Agent, the Borrower shall repay all
                  outstanding Floating Rate Loans and reborrow a Floating Rate
                  Loan in a like amount from the Lenders (including the New
                  Lenders), but such New Lenders shall not participate in any
                  then outstanding Eurodollar Loan. If the Borrower shall at any
                  time on or after

                                       25

<PAGE>

                  such effective date convert or continue any Eurodollar Loan
                  that was outstanding on such effective date, the Borrower
                  shall be deemed to repay such Eurodollar Loan on the date of
                  the conversion or continuation thereof and then to reborrow as
                  a new Revolving Loan a like amount on such date so that each
                  New Lender shall advance on such date the amount of its Pro
                  Rata Share of such Revolving Loan. Such New Lender shall make
                  its Pro Rata Share of all Revolving Loans made on or after
                  such effective date and shall otherwise have all of the rights
                  and obligations of a Lender hereunder on and after such
                  effective date. To the extent any Eurodollar Loan is converted
                  or continued after the effective date of an increase in the
                  Revolving Committed Amount and prior to the date on which such
                  New Lender holds its Pro Rata Share of all Revolving Loans,
                  the amount funded by such New Lender as its Pro Rata Share of
                  such converted or continued Loan shall be paid ratably to the
                  other Lenders such that all Lenders (including the New Lender)
                  hold their Pro Rata Share of such converted or continued Loan.
                  Notwithstanding the foregoing, upon the occurrence of an Event
                  of Default prior to the date on which such New Lender is
                  holding its Pro Rata Share of all outstanding Revolving Loans,
                  such New Lender shall immediately (but not prior to such
                  effective date) pay to the Administrative Agent (for the
                  account of the other Lenders, to which the Administrative
                  Agent shall pay their ratable shares thereof upon receipt) a
                  sum equal to such New Lender's Pro Rata Share of each
                  outstanding Eurodollar Loan with respect to which such New
                  Lender does not then hold an interest; such payment by such
                  New Lender shall constitute a Floating Rate Loan by such New
                  Lender hereunder.

                           (iii)    New Lenders' Participation in Facility LCs.
                  Upon the effective date of any increase in the Revolving
                  Committed Amount in accordance with the provisions of Section
                  2.1(e)(ii), each New Lender shall also be deemed to have
                  irrevocably and unconditionally purchased and received,
                  without recourse or warranty, from the Lenders party to this
                  Agreement immediately prior to the effective date of such
                  increase, an undivided interest and participation in all
                  Facility LCs and Reimbursement Obligations (if any) then
                  outstanding, ratably, such that each Lender (including each
                  New Lender) holds a participation interest in each Facility LC
                  and all Reimbursement Obligations (if any) in proportion to
                  the ratio that such Lender's Commitment (upon the effective
                  date of such increase in the Revolving Committed Amount) bears
                  to the Revolving Committed Amount as so increased.

                           (iv)     No Obligation to Increase Commitment.
                  Nothing contained herein shall constitute, or otherwise be
                  deemed to be, a commitment or agreement on the part of the
                  Borrower or the Administrative Agent to give or grant any
                  Lender the right to increase any Commitment hereunder at any
                  time or a commitment or agreement on the part of any Lender to
                  increase its Commitment hereunder at any time, and no
                  Commitment of a Lender shall be increased without its prior
                  written approval.

                                       26

<PAGE>

         (f)      Revolving Notes. The Revolving Loans made by each Lender shall
be evidenced by a duly executed promissory note of the Borrower to such Lender
in an original principal amount equal to such Lender's Revolving Loan Commitment
and in substantially the form of Exhibit 2.1(f).

2.2      SWINGLINE LOANS SUBFACILITY.

         (a)      Swingline Loans. The Swingline Lender hereby agrees, on the
terms and subject to the conditions set forth herein and in the other Credit
Documents, to make revolving loans to the Borrower, in Dollars, at any time and
from time to time during the period from and including the Effective Date to but
not including the Maturity Date (each such loan, a "Swingline Loan" and
collectively, the "Swingline Loans"); provided that (i) the aggregate principal
amount of the Swingline Loans outstanding at any one time shall not exceed the
Swingline Committed Amount, and (ii) the aggregate amount of Swingline Loans
outstanding plus the aggregate amount of Revolving Loans outstanding plus the
aggregate amount of LC Obligations outstanding shall not exceed the Revolving
Committed Amount. Prior to the Maturity Date, Swingline Loans may be repaid and
reborrowed by the Borrower in accordance with the provisions hereof.

         (b)      Method of Borrowing and Funding Swingline Loans. By no later
than 1:00 p.m. on the date of the requested borrowing of Swingline Loans, the
Borrower shall provide telephonic notice to the Swingline Lender, followed
promptly by a written Swingline Loan Request (which may be submitted via
telecopy), each of such telephonic notice and such written Swingline Loan
Request setting forth (i) the amount of the requested Swingline Loan (which
shall not be less than $100,000 and in integral multiples of $50,000 in excess
thereof), (ii) the date of the requested Swingline Loan, (iii) certification
that the Borrower has complied in all respects with Section 5.2 and, to the
extent that the Swingline Loan requested is the initial Extension of Credit,
Section 5.1 and (iv) whether such Swingline Loan is to be a Floating Rate Loan
or an Index Rate Swingline Loan and, if such Swingline Loan is to be an Index
Rate Swingline Loan, the applicable Interest Period. If the Borrower has
requested an Index Rate Swingline Loan, the Swingline Lender shall provide to
the Borrower no later than 1:30 p.m. on the date of such request the Adjusted
LIBOR Market Index Rate. The Borrower shall notify the Swingline Lender by 2:00
p.m. on such date whether it wishes to accept the Adjusted LIBOR Market Index
Rate. Failure of the Borrower to timely accept the Adjusted LIBOR Market Index
Rate shall make the Adjusted LIBOR Market Index Rate and the corresponding Index
Rate Swingline Loan void. The Swingline Lender shall initiate the transfer of
funds representing the Swingline Loan advance to the Borrower by 3:00 p.m. on
the Business Day of the requested borrowing.

         (c)      Repayment and Participations of Swingline Loans. The Borrower
agrees to repay all Swingline Loans that are Floating Rate Loans within one
Business Day of demand therefor by the Swingline Lender and all Swingline Loans
that are Index Rate Swingline Loans at the end of the applicable Interest
Period; provided that each Swingline Loan shall be repaid within seven Business
Days from the date of advance.

                                       27

<PAGE>

Each repayment of a Swingline Loan may be accomplished by requesting Revolving
Loans, which request is not subject to the conditions set forth in Section 5.2.
In the event that the Borrower shall fail to timely repay any Swingline Loan,
and in any event upon (i) the request of the Swingline Lender, (ii) the
occurrence of an Event of Default described in Section 9.1(f) or (iii) the
acceleration of any Loan or termination of any Commitment pursuant to Section
9.2, each other Lender shall irrevocably and unconditionally purchase from the
Swingline Lender, without recourse or warranty, an undivided interest and
participation in such Swingline Loan in an amount equal to such other Lender's
Pro Rata Share thereof, by directly purchasing a participation in such Swingline
Loan in such amount (regardless of whether the conditions precedent thereto set
forth in Section 5.2 hereof are then satisfied (provided the Swingline Lender
believed in good faith that the conditions precedent set forth in Section 5.2
were satisfied at the time of funding of such Swingline Loan), whether or not
the Borrower has submitted a Notice of Borrowing and whether or not the
Commitments are then in effect, any Event of Default exists or all the Loans
have been accelerated) and paying the proceeds thereof to the Swingline Lender
at its address specified in or pursuant to Section 11.1, in Dollars and in
immediately available funds. If such amount is not in fact made available to the
Swingline Lender by any Lender, the Swingline Lender shall be entitled to
recover such amount on demand from such Lender, together with accrued interest
thereon (to the extent the Borrower fails to pay accrued interest with respect
to such amount) for each day from the date of demand thereof, at the Federal
Funds Effective Rate. If such Lender does not pay such amount forthwith upon the
Swingline Lender's demand therefor, and until such time as such Lender makes the
required payment, the Swingline Lender shall be deemed to continue to have
outstanding Swingline Loans in the amount of such unpaid participation
obligation for all purposes of the Credit Documents other than those provisions
requiring the other Lenders to purchase a participation therein. Further, such
Lender shall be deemed to have assigned any and all payments made of principal
and interest on its Loans, and any other amounts due to it hereunder to the
Swingline Lender to fund Swingline Loans in the amount of the participation in
Swingline Loans that such Lender failed to purchase pursuant to this Section
2.2(c) until such amount has been purchased (as a result of such assignment or
otherwise). On the date the Lenders are required to purchase participations in
outstanding Swingline Loans pursuant to this Section 2.2(c), the outstanding
principal amount, including the Swingline Lender's Pro Rata Share, of such
Swingline Loans shall be deemed to be a Revolving Loan accruing interest at the
Floating Rate.

         (d)      Interest on Swingline Loans. Subject to the provisions of
Section 3.1, each Swingline Loan shall bear interest at a per annum rate equal
to the Floating Rate or the Adjusted LIBOR Market Index Rate, as applicable.

         (e)      Swingline Note. The Swingline Loans shall be evidenced by a
duly executed promissory note of the Borrower to the Swingline Lender in the
original principal amount of the Swingline Committed Amount and in substantially
the form of Exhibit 2.2(e).

                                       28

<PAGE>

         2.3      CONTINUATIONS AND CONVERSIONS.

         The Borrower shall have the option, on any Business Day, to continue
existing Eurodollar Loans for a subsequent Interest Period, to convert Floating
Rate Loans (other than Swingline Loans) into Eurodollar Loans or to convert
Eurodollar Loans into Floating Rate Loans (other than Swingline Loans);
provided, however, that (a) each such continuation or conversion must be
requested by the Borrower pursuant to a written Notice of
Continuation/Conversion in compliance with the terms set forth below, (b) except
as provided in Section 3.11, Eurodollar Loans may only be continued or converted
into Floating Rate Loans on the last day of the Interest Period applicable
thereto, (c) Eurodollar Loans may not be continued nor may Floating Rate Loans
be converted into Eurodollar Loans during the existence and continuation of a
Default or an Event of Default and (d) any request to continue a Eurodollar Loan
that fails to comply with the terms hereof or any failure to request a
continuation of a Eurodollar Loan at the end of an Interest Period shall
constitute a conversion to a Floating Rate Loan on the last day of the
applicable Interest Period. Each continuation or conversion must be requested by
the Borrower no later than 11:00 a.m. (i) on the date for a requested conversion
of a Eurodollar Loan to a Floating Rate Loan or (ii) three Business Days prior
to the date for a requested continuation of a Eurodollar Loan or conversion of a
Floating Rate Loan to a Eurodollar Loan, in each case pursuant to a written
Notice of Continuation/Conversion submitted to the Administrative Agent which
shall set forth (A) whether the Borrower wishes to continue or convert such
Loans and (B) if the request is to continue a Eurodollar Loan or convert a
Floating Rate Loan to a Eurodollar Loan, the Interest Period applicable thereto.

         2.4      MINIMUM AMOUNTS.

         Each request for a borrowing, conversion or continuation shall be
subject to the requirements that (a) each Eurodollar Loan shall be in a minimum
amount of $5,000,000 (and in integral multiples of $1,000,000 in excess
thereof), (b) each Floating Rate Loan shall be in a minimum amount of the lesser
of $1,000,000 (and integral multiples of $100,000 in excess thereof) or the
remaining amount available under the Revolving Committed Amount and (c) each
Swingline Loan shall be in a minimum amount of $100,000 (and in integral
multiples of $50,000 in excess thereof) or the remaining amount of the Swingline
Committed Amount. For the purposes of this Section, all Eurodollar Loans with
the same Interest Periods that begin and end on the same date shall be
considered as one Eurodollar Loan, but Eurodollar Loans with different Interest
Periods, even if they begin on the same date, shall be considered as separate
Eurodollar Loans.

         2.5      EXTENSION OF MATURITY DATE.

                  (a)      Not more than once each fiscal year of the Borrower,
         the Borrower may, by delivering a written notice to the Administrative
         Agent, request that the Maturity Date be extended for one additional
         year, provided the requested Maturity Date is not more than five (5)
         years from the date of such request. The Administrative Agent shall
         notify each Lender of such request promptly upon its receipt of such
         notice and shall request that each Lender respond to such request by
         the Borrower within sixty (60) days of the Administrative Agent's
         notice to the Lenders. If any Lender does not consent in writing

                                       29

<PAGE>

         or respond to the Borrower's request then such Lender (a "Refusing
         Lender") shall be deemed to have rejected such request. If Lenders
         whose combined Pro Rata Shares equal at least 66-2/3% (the "Extension
         Required Lenders"; each Lender agreeing to extend its Revolving Loan
         Commitment is referred to herein as an "Extending Lender") agree in
         writing within such 60-day period to extend their Revolving Loan
         Commitments, then (i) the Revolving Loan Commitments of the Extending
         Lenders shall without further action be extended for an additional
         one-year period, (ii) the term "Maturity Date" shall thenceforth mean,
         (A) as to the Commitments and Loans of the Extending Lenders, the last
         day of such additional one-year period and (B) as to the Commitments
         and Loans of the Refusing Lenders, the Maturity Date in effect prior to
         such extension (each a "RL Maturity Date"), (iii) subject to the terms
         of subsection (b) below, the Revolving Loan Commitments of the Refusing
         Lenders shall terminate on the applicable RL Maturity Date and the
         Loans and other amounts owed to such Lenders shall be due and payable
         on such date and (iv) subject to the terms of subsection (b) below, on
         an RL Maturity Date (A) the Revolving Committed Amount shall be reduced
         by an amount equal to the sum of the Revolving Loan Commitments of the
         applicable Refusing Lenders and (B) the Pro Rata Shares of the
         Extending Lenders shall be reallocated so that the sum of such Pro Rata
         Shares equals one hundred percent (100%). If such extension is not
         approved in writing by the Extension Required Lenders within such
         60-day period, the Maturity Date then in effect will be retained.

                  (b)      So long as the Extension Required Lenders consent to
         the extension of the Maturity Date in accordance with the terms of
         Section 2.5(a):

                           (i)      with respect to any Refusing Lender, the
                  Borrower may request, in its own discretion and at its own
                  expense, such Refusing Lender to transfer and assign (and such
                  Refusing Lender shall be required to transfer and assign upon
                  such request) in whole (but not in part), without recourse,
                  representation or warranty (except as provided in Section
                  11.3(b)) and otherwise in accordance with and subject to the
                  terms of Section 11.3(b), all of its interests, rights and
                  obligations under this Credit Agreement to one or more
                  Eligible Assignees (which may be one or more existing Lenders
                  if any existing Lender accepts such assignment); provided that
                  (A) such assignment or assignments shall not conflict with any
                  law, rule, regulation or order of any court or other
                  Governmental Authority, (B) the Borrower or such Eligible
                  Assignee or Eligible Assignees shall pay to such Refusing
                  Lender in immediately available funds the principal of and
                  interest accrued to the date of such payment on the portion of
                  the Loans hereunder held by such Refusing Lender and all other
                  amounts owed to such Refusing Lender hereunder, as well as any
                  processing fee owing to the Administrative Agent under Section
                  11.3(b), (C) the maturity date of the Loans transferred to
                  such Eligible Assignee shall be the Maturity Date as extended
                  in accordance with Section 2.5(a) above and (D) such transfer
                  and assignment must occur on or prior to the applicable RL
                  Maturity Date; or

                                       30

<PAGE>

                           (ii)     the Borrower may (A) notify the
                  Administrative Agent and the Extending Lenders in writing that
                  it wishes to (and each such Extending Lender shall agree to)
                  reduce the Revolving Loan Committed Amount by an amount equal
                  to the sum of the Revolving Loan Commitments of the Refusing
                  Lenders, (B) pay all outstanding Loans of the Refusing Lenders
                  and any other amounts owing to the Refusing Lenders, and
                  terminate the Revolving Loan Commitments of the Refusing
                  Lenders and (C) reallocate the Pro Rata Share of the Extending
                  Lenders, on a pro rata basis, so that the sum of such Pro Rata
                  Shares equals one hundred percent (100%).

                  (c)      The Borrower shall indemnify each Lender (whether an
         Extending Lender or Refusing Lender) for any loss or expense payable to
         such Lender pursuant to Section 3.14 as a result of any extension of
         the Maturity Date pursuant to this Section 2.5 and any assignment of
         such Lender's Commitments and Loans or any reallocation of such
         Lender's Pro Rata Share in connection with such extension.

                  (d)      Each of the Lenders hereby authorizes the
         Administrative Agent, on their behalf, to enter into an amendment to
         this Credit Agreement (and the Borrower hereby agrees to enter into any
         such amendment on terms reasonably acceptable to the Credit Parties and
         the Administrative Agent) to effectuate any extension of the Maturity
         Date, reduction of the Revolving Committed Amount, repayment of Loans
         or reallocation of the Pro Rata Shares, in each case as expressly
         contemplated by the terms of this Section 2.5.

         2.6      TELEPHONIC NOTICES.

         The Borrower hereby authorizes the Lenders and the Administrative Agent
to extend, convert or continue Loans, effect selections of Floating Rate Loans,
Eurodollar Loans and Index Rate Swingline Loans and to transfer funds based on
telephonic notices made by any person or persons the Administrative Agent or any
Lender in good faith believes to be acting on behalf of the Borrower, it being
understood that the foregoing authorization is specifically intended to allow
Notices of Borrowing, Notices of Continuation/Conversion and Swingline Loan
Requests to be given telephonically. The Borrower agrees to deliver promptly to
the Administrative Agent a written confirmation, if such confirmation is
requested by the Administrative Agent or any Lender, of each telephonic notice
signed by an authorized officer of the Borrower. If the written confirmation
differs in any material respect from the action taken by the Administrative
Agent and the Lenders, the records of the Administrative Agent and the Lenders
shall govern absent manifest error.

         2.7      LENDING INSTALLATIONS.

         Each Lender may book its Loans and its participation in any LC
Obligations and each LC Issuer may book the Facility LCs issued by it at any
Lending Installation selected by such Lender or the LC Issuer, as the case may
be, and may change its Lending Installation from time to time. All terms of this
Agreement shall apply to any such Lending Installation and the

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<PAGE>

Loans, Facility LCs, participations in LC Obligations and any Notes issued
hereunder shall be deemed held by each Lender or LC Issuer, as the case may be,
for the benefit of any such Lending Installation. Each Lender and LC Issuer may,
by written notice to the Administrative Agent and the Borrower in accordance
with Section 11.1, designate replacement or additional Lending Installations
through which Loans will be made by it or Facility LCs will be issued by it and
for whose account Loan payments or payments with respect to Facility LCs are to
be made.

                                   SECTION 3

                     GENERAL PROVISIONS APPLICABLE TO LOANS

         3.1      INTEREST.

                  (a)      Interest. Subject to the provisions of Section
         3.1(b):

                           (i)      Floating Rate Loans. During such periods as
                  Loans shall be comprised in whole or in part of Floating Rate
                  Loans, such Floating Rate Loans shall bear interest at a per
                  annum rate equal to the Floating Rate.

                           (ii)     Eurodollar Loans. During such periods as
                  Loans shall be comprised in whole or in part of Eurodollar
                  Loans, such Eurodollar Loans shall bear interest at a per
                  annum rate equal to the Eurodollar Rate.

                           (iii)    Swingline Loans. Swingline Loans shall bear
                  interest in accordance with the terms of Section 2.2(d).

                  (b)      Default Rate of Interest. Upon the occurrence, and
         during the continuance, of an Event of Default, upon notice from the
         Administrative Agent at the direction of the Required Lenders (or, in
         the case of an Event of Default under Section 9.1(f), automatically
         without notice or any action) (i) the principal of and, to the extent
         permitted by law, interest on the Loans and any other amounts owing
         hereunder or under the other Credit Documents (including without
         limitation fees and expenses) shall bear interest, payable on demand,
         at a per annum rate equal to two percent (2%) plus the rate which would
         otherwise be applicable (or if no rate is applicable, then the rate for
         Revolving Loans that are Floating Rate Loans plus two percent (2%) per
         annum) and (ii) the Facility LC Fee Rate shall be increased to a per
         annum rate equal to two percent (2%) plus the Facility LC Fee Rate
         which would otherwise be applicable.

                  (c)      Interest Payments. Interest on Loans shall be due and
         payable in arrears on each Interest Payment Date. If an Interest
         Payment Date falls on a date which is not a Business Day, such Interest
         Payment Date shall be deemed to be the next succeeding Business Day,
         except that in the case of Eurodollar Loans where the next succeeding
         Business Day falls in the next succeeding calendar month, then such
         Interest Payment Date shall be deemed to be the next preceding Business
         Day.

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<PAGE>

         3.2      PLACE AND MANNER OF PAYMENTS.

         All payments of principal, interest, fees, expenses and other amounts
to be made by a Credit Party under this Credit Agreement shall be made without
setoff, deduction or counterclaim and received not later than 1:00 p.m. on the
date when due, in Dollars and in immediately available funds, by the
Administrative Agent at its address specified in or pursuant to Section 11.1.
Payments received after such time shall be deemed to have been received on the
next Business Day. The Borrower shall, at the time it makes any payment under
this Credit Agreement, specify to the Administrative Agent the Loans, fees or
other amounts payable by the Borrower hereunder to which such payment is to be
applied (and in the event that it fails to specify, or if such application would
be inconsistent with the terms hereof, the Administrative Agent shall, subject
to Section 3.7, distribute such payment to the Lenders in such manner as the
Administrative Agent may deem appropriate). The Administrative Agent will
distribute such payments to the applicable Lenders on the same Business Day if
any such payment is received prior to 1:00 p.m.; otherwise the Administrative
Agent will distribute such payment to the applicable Lenders not later than the
next succeeding Business Day. Whenever any payment hereunder shall be stated to
be due on a day which is not a Business Day, the due date thereof shall be
extended to the next succeeding Business Day (subject to accrual of interest and
fees for the period of such extension), except that in the case of Eurodollar
Loans, if the extension would cause the payment to be made in the next following
calendar month, then such payment shall instead be made on the next preceding
Business Day.

         3.3      PREPAYMENTS.

                  (a)      Voluntary Prepayments. The Borrower shall have the
         right to prepay Loans in whole or in part from time to time without
         premium or penalty; provided, however, that (i) Eurodollar Loans may
         only be prepaid on three Business Days' prior written notice to the
         Administrative Agent and (ii) each such partial prepayment of Loans
         shall be in the minimum principal amount of (A) $5,000,000 and integral
         multiples of $1,000,000 in excess thereof for Revolving Loans and (B)
         $100,000 and integral multiples of $50,000 in excess thereof for
         Swingline Loans. All prepayments under this Section shall be subject to
         Section 3.14 and be accompanied by interest on the principal amount
         prepaid through the date of prepayment.

                  (b)      Mandatory Prepayments. If, at any time, the sum of
         the aggregate amount of Revolving Loans outstanding plus Swingline
         Loans outstanding plus the aggregate amount of all LC Obligations
         exceeds the Revolving Committed Amount, the Borrower shall immediately
         make a principal payment to the Administrative Agent in the manner and
         in an amount such that the sum of the aggregate amount of Revolving
         Loans outstanding plus Swingline Loans outstanding plus the aggregate
         amount of all LC Obligations outstanding is less than or equal to the
         Revolving Committed Amount (to be applied as set forth in Section
         3.3(c) below).

         (c)      Application of Prepayments. All amounts required to be paid
         pursuant to Section 3.3(b) shall be applied first to Swingline Loans
         and second to Revolving Loans. Within the parameters of the
         applications set forth above, prepayments shall be applied

                                       33

<PAGE>

         first to Floating Rate Loans and then to Eurodollar Loans (or Index
         Rate Swingline Loans, as applicable) in direct order of Interest Period
         maturities. All prepayments hereunder shall be subject to Section 3.14
         and shall be accompanied by interest on the principal amount prepaid
         through the date of prepayment.

         3.4      FEES.

                  (a)      Commitment Fees. The Borrower agrees to pay to the
         Administrative Agent for the pro rata benefit of the Lenders commitment
         fees ("Commitment Fees") at a rate per annum equal to the Applicable
         Percentage (for Commitment Fees) of the Unused Revolving Committed
         Amount, payable in arrears on the first Business Day of each calendar
         quarter and upon the Maturity Date and any earlier date on which the
         Commitments are terminated hereunder. The Swingline Loans shall
         constitute usage of the Revolving Credit Commitment of the Swingline
         Lender.

                  (b)      Administrative Fees. The Borrower agrees to pay to
         the Administrative Agent, for its own account, administrative fees (the
         "Administrative Fees") in accordance with the terms of the Fee Letter.

                  (c)      Extension Fees. The Borrower agrees to pay to the
         Administrative Agent for the pro rata benefit of each Extending Lender,
         at the time of any extension of the Maturity Date pursuant to Section
         2.5, such extension fees as are agreed upon among the Borrower, the
         Administrative Agent and such Extending Lenders.

                  (d)      Upfront Fees. In consideration of the Revolving
         Committed Amount being made available by the Lenders hereunder, the
         Borrower agrees to pay to each Lender an upfront fee in accordance with
         the terms of the Arranger's invitation letter to prospective Lenders
         dated August 13, 2003 (the "Upfront Fees"). The Upfront Fees shall be
         due and payable on or prior to the Effective Date.

         3.5      PAYMENT IN FULL AT MATURITY.

         On the Maturity Date, the entire outstanding principal balance of all
Revolving Loans and Swingline Loans, together with accrued but unpaid interest
and all other sums owing with respect thereto, shall be due and payable in full,
unless accelerated sooner pursuant to Section 9.2.

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<PAGE>

         3.6      COMPUTATIONS OF INTEREST AND FEES.

                  (a)      Except for Floating Rate Loans and Swingline Loans,
         in which case interest shall be computed on the basis of a 365 or 366
         day year as the case may be, all computations of interest and fees
         hereunder shall be made on the basis of the actual number of days
         elapsed over a year of 360 days. Interest shall accrue from and include
         the date of borrowing (or continuation or conversion) but exclude the
         date of payment.

                  (b)      It is the intent of the Lenders and the Credit
         Parties to conform to and contract in strict compliance with applicable
         usury law from time to time in effect. All agreements between the
         Lenders and the Borrower are hereby limited by the provisions of this
         paragraph which shall override and control all such agreements, whether
         now existing or hereafter arising and whether written or oral. In no
         way, nor in any event or contingency (including but not limited to
         prepayment or acceleration of the maturity of any obligation), shall
         the interest taken, reserved, contracted for, charged, or received
         under this Credit Agreement, under the Notes or otherwise, exceed the
         maximum nonusurious amount permissible under applicable law. If, from
         any possible construction of any of the Credit Documents or any other
         document, interest would otherwise be payable in excess of the maximum
         nonusurious amount, any such construction shall be subject to the
         provisions of this paragraph and such documents shall be automatically
         reduced to the maximum nonusurious amount permitted under applicable
         law, without the necessity of execution of any amendment or new
         document. If any Lender shall ever receive anything of value which is
         characterized as interest on the Loans under applicable law and which
         would, apart from this provision, be in excess of the maximum lawful
         amount, an amount equal to the amount which would have been excessive
         interest shall, without penalty, be applied to the reduction of the
         principal amount owing on the Loans and not to the payment of interest,
         or refunded to the Borrower or the other payor thereof if and to the
         extent such amount which would have been excessive exceeds such unpaid
         principal amount of the Loans. The right to demand payment of the Loans
         or any other Indebtedness evidenced by any of the Credit Documents does
         not include the right to accelerate the payment of any interest which
         has not otherwise accrued on the date of such demand, and the Lenders
         do not intend to charge or receive any unearned interest in the event
         of such demand. All interest paid or agreed to be paid to the Lenders
         with respect to the Loans shall, to the extent permitted by applicable
         law, be amortized, prorated, allocated, and spread throughout the full
         stated term (including any renewal or extension) of the Loans so that
         the amount of interest on account of such Indebtedness does not exceed
         the maximum nonusurious amount permitted by applicable law.

         3.7      PRO RATA TREATMENT.

         Except to the extent otherwise provided herein, each Revolving Loan
borrowing, each payment or prepayment of principal of any Revolving Loan, each
payment of fees (other than the Administrative Fees retained by the
Administrative Agent for its own account and fees payable to a LC Issuer), each
reduction of the Revolving Committed Amount, and each conversion or

                                       35
<PAGE>

continuation of any Revolving Loan, shall (except as otherwise provided in
Section 3.11) be allocated pro rata among the relevant Lenders in accordance
with the respective Pro Rata Shares of such Lenders (or, if the Commitments of
such Lenders have expired or been terminated, in accordance with the respective
principal amounts of the outstanding Loans and Participation Interests of such
Lenders); provided that, if any Lender shall have failed to pay its applicable
pro rata share of any Revolving Loan, then any amount to which such Lender would
otherwise be entitled pursuant to this Section 3.7 shall instead be payable to
the Administrative Agent until the share of such Revolving Loan not funded by
such Lender has been repaid; provided further, that in the event any amount paid
to any Lender pursuant to this Section 3.7 is rescinded or must otherwise be
returned by the Administrative Agent, each Lender shall, upon the request of the
Administrative Agent, repay to the Administrative Agent the amount so paid to
such Lender, with interest for the period commencing on the date such payment is
returned by the Administrative Agent until the date the Administrative Agent
receives such repayment at a rate per annum equal to, during the period to but
excluding the date two Business Days after such request, the Federal Funds
Effective Rate, and thereafter, the Floating Rate plus two percent (2%) per
annum.

         3.8      SHARING OF PAYMENTS.

         The Lenders agree among themselves that, except to the extent otherwise
provided herein, in the event that any Lender shall obtain payment in respect of
any Loan or any other obligation owing to such Lender under this Credit
Agreement through the exercise of a right of setoff, banker's lien or
counterclaim, or pursuant to a secured claim under Section 506 of the Bankruptcy
Code or other security or interest arising from, or in lieu of, such secured
claim, received by such Lender under any applicable bankruptcy, insolvency or
other similar law or otherwise, or by any other means, in excess of its pro rata
share of such payment as provided for in this Credit Agreement, such Lender
shall promptly pay in cash or purchase from the other Lenders a participation in
such Loans and other obligations in such amounts, and make such other
adjustments from time to time, as shall be equitable to the end that all Lenders
share such payment in accordance with their respective ratable shares as
provided for in this Credit Agreement. The Lenders further agree among
themselves that if payment to a Lender obtained by such Lender through the
exercise of a right of setoff, banker's lien, counterclaim or other event as
aforesaid shall be rescinded or must otherwise be restored, each Lender which
shall have shared the benefit of such payment shall, by payment in cash or a
repurchase of a participation theretofore sold, return its share of that benefit
(together with its share of any accrued interest payable with respect thereto)
to each Lender whose payment shall have been rescinded or otherwise restored.
The Borrower agrees that any Lender so purchasing such a participation may, to
the fullest extent permitted by law, exercise all rights of payment, including
setoff, banker's lien or counterclaim, with respect to such participation as
fully as if such Lender were a holder of such Loan or other obligation in the
amount of such participation. Except as otherwise expressly provided in this
Credit Agreement, if any Lender or the Administrative Agent shall fail to remit
to the Administrative Agent or any other Lender an amount payable by such Lender
or such Administrative Agent to such Administrative Agent or such other Lender
pursuant to this Credit Agreement on the date when such amount is due, such
payments shall be made together with interest thereon for each date from the
date such amount is due until the date such amount is paid to such
Administrative Agent or such other Lender at a rate per annum equal to the
Federal Funds Effective Rate. If under any applicable bankruptcy,

                                       36

<PAGE>

insolvency or other similar law, any Lender receives a secured claim in lieu of
a setoff to which this Section 3.8 applies, such Lender shall, to the extent
practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights of the Lenders under this Section 3.8 to share in the
benefits of any recovery on such secured claim.

         3.9      CAPITAL ADEQUACY.

         If, after the date hereof, any Lender or LC Issuer has determined that
the adoption or the becoming effective of, or any change in, or any change by
any Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof in the interpretation or administration
of, any applicable law, rule or regulation regarding capital adequacy, or
compliance by such Lender or LC Issuer, or the parent corporation of such Lender
or LC Issuer, with any request or directive regarding capital adequacy (whether
or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return
on such Lender's or LC Issuer's (or parent corporation's) capital or assets as a
consequence of its commitments or obligations hereunder to a level below that
which such Lender or LC Issuer, or the parent corporation of such Lender or LC
Issuer, could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender's or LC Issuer's (or parent
corporation's) policies with respect to capital adequacy), then, upon written
notice from such Lender or LC Issuer to the Borrower, the Borrower shall be
obligated to pay to such Lender or LC Issuer such additional amount or amounts
as will compensate such Lender or LC Issuer on an after-tax basis (after taking
into account applicable deductions and credits in respect of the amount
indemnified) for such reduction. Each such written notice of a determination by
any such Lender or LC Issuer of amounts owing under this Section 3.9 shall set
forth and certify in reasonable detail the basis for such determination and the
calculation of amounts so owing, which certification shall, absent manifest
error, be conclusive and binding on the parties hereto. Notwithstanding anything
to the contrary contained herein, the Borrower shall not be required to make any
payments to any Lender or LC Issuer or the Administrative Agent pursuant to this
Section 3.9 relating to any period of time which is greater than 90 days prior
to such Person's request for additional payment except for retroactive
application of such law, rule or regulation, in which case the Borrower is
required to make such payments so long as such Person makes a request therefor
within 90 days after the public announcement of such retroactive application.
This covenant shall survive the termination of this Credit Agreement and the
payment of the Loans and all other amounts payable hereunder.

         3.10     INABILITY TO DETERMINE INTEREST RATE.

         If prior to the first day of any Interest Period, the Administrative
Agent shall have determined in good faith (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Base Rate for such Interest Period, the
Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the Lenders as soon as practicable thereafter, and will also give
prompt written notice to the Borrower when such conditions no longer exist. If
such notice is given (a) any Eurodollar Loans requested to be made on the first
day of such Interest Period shall be made as Floating Rate Loans and (b) any
Loans that

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<PAGE>

were to have been converted on the first day of such Interest Period to or
continued as Eurodollar Loans shall be converted to or continued as Floating
Rate Loans. Until such notice is withdrawn by the Administrative Agent, no
further Eurodollar Loans shall be made or continued as such, nor shall the
Borrower have the right to convert Floating Rate Loans to Eurodollar Loans.

         3.11     ILLEGALITY.

         Notwithstanding any other provision herein, if the adoption of or any
change in any Requirement of Law or in the interpretation or application thereof
occurring after the Closing Date shall make it unlawful for any Lender to make
or maintain Eurodollar Loans as contemplated by this Credit Agreement, (a) such
Lender shall promptly give written notice of such circumstances to the Borrower
and the Administrative Agent (which notice shall be withdrawn whenever such
circumstances no longer exist), (b) the commitment of such Lender hereunder to
make Eurodollar Loans, continue Eurodollar Loans as such and convert a Floating
Rate Loan to Eurodollar Loans shall forthwith be canceled and, until such time
as it shall no longer be unlawful for such Lender to make or maintain Eurodollar
Loans, such Lender shall then have a commitment only to make a Floating Rate
Loan when a Eurodollar Loan is requested and (c) such Lender's Loans then
outstanding as Eurodollar Loans, if any, shall be converted automatically to
Floating Rate Loans on the respective last days of the then current Interest
Periods with respect to such Loans or within such earlier period as required by
law. If any such conversion of a Eurodollar Loan occurs on a day which is not
the last day of the then current Interest Period with respect thereto, the
Borrower shall pay to such Lender such amounts, if any, as may be required
pursuant to Section 3.14.

         3.12     REQUIREMENTS OF LAW.

         If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof applicable to any Lender or LC Issuer, or
compliance by any Lender or LC Issuer with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority, in each case made subsequent to the Closing Date (or, if later, the
date on which such Lender becomes a Lender):

                  (a)      shall subject such Lender or LC Issuer to any tax of
         any kind whatsoever with respect to any Eurodollar Loans made by it or
         its obligation to make Eurodollar Loans or with respect to any Facility
         LCs or its participation therein, or change the basis of taxation of
         payments to such Lender or LC Issuer in respect thereof (except for
         Non-Excluded Taxes covered by Section 3.13 (including Non-Excluded
         Taxes imposed solely by reason of any failure of such Lender to comply
         with its obligations under Section 3.13(b)) and changes in taxes
         measured by or imposed upon the overall net income, or franchise tax
         (imposed in lieu of such net income tax), of such Lender or LC Issuer
         or its applicable lending office, branch, or any affiliate thereof);

                  (b)      shall impose, modify or hold applicable any reserve,
         special deposit, compulsory loan or similar requirement against assets
         held by, deposits or other liabilities in or for the account of,
         advances, loans or other extensions of credit by, or any other

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<PAGE>

         acquisition of funds by, any office of such Lender or LC Issuer which
         is not otherwise included in the determination of the Eurodollar Base
         Rate hereunder; or

                  (c)      shall impose on such Lender or LC Issuer any other
         condition (excluding any tax of any kind whatsoever);

and the result of any of the foregoing is to increase the cost to such Lender or
LC Issuer , by an amount which such Lender or LC Issuer deems to be material, of
making, converting into, continuing or maintaining Eurodollar Loans or issuing
or participating in any Facility LC or to reduce any amount receivable hereunder
in respect thereof, then, in any such case, upon notice to the Borrower from
such Lender or LC Issuer, through the Administrative Agent, in accordance
herewith, the Borrower shall be obligated to promptly pay such Lender or LC
Issuer , upon its demand, any additional amounts necessary to compensate such
Lender or LC Issuer on an after-tax basis (after taking into account applicable
deductions and credits in respect of the amount indemnified) for such increased
cost or reduced amount receivable, provided that, in any such case, the Borrower
may elect to convert the Eurodollar Loans made by such Lender hereunder to
Floating Rate Loans by giving the Administrative Agent at least one Business
Day's notice of such election, in which case the Borrower shall promptly pay to
such Lender or LC Issuer, upon demand, without duplication, such amounts, if
any, as may be required pursuant to Section 3.14. If any Lender or LC Issuer
becomes entitled to claim any additional amounts pursuant to this Section 3.12,
it shall provide prompt written notice thereof to the Borrower, through the
Administrative Agent, certifying (x) that one of the events described in this
Section 3.12 has occurred and describing in reasonable detail the nature of such
event, (y) as to the increased cost or reduced amount resulting from such event
and (z) as to the additional amount demanded by such Lender or LC Issuer and a
reasonably detailed explanation of the calculation thereof. Such a certificate
as to any additional amounts payable pursuant to this Section 3.12 submitted by
such Lender or LC Issuer, through the Administrative Agent, to the Borrower
shall be conclusive and binding on the parties hereto in the absence of manifest
error. This covenant shall survive the termination of this Credit Agreement and
the payment of the Loans and all other amounts payable hereunder.
Notwithstanding anything to the contrary contained herein, the Borrower shall
not be required to make any payments to any Lender or LC Issuer or the
Administrative Agent pursuant to this Section relating to any period of time
which is greater than 90 days prior to such Person's request for additional
payment except for retroactive application of such law, rule or regulation, in
which case the Borrower is required to make such payments so long as such Person
makes a request therefor within 90 days after the public announcement of such
retroactive application.

         3.13     TAXES.

                  (a)      Withholding. Except as provided below in this Section
         3.13, all payments made by the Borrower under this Credit Agreement and
         any Notes shall be made free and clear of, and without deduction or
         withholding for or on account of, any present or future income, stamp
         or other taxes, levies, imposts, duties, charges, fees, deductions or
         withholdings, now or hereafter imposed, levied, collected, withheld or
         assessed by any court, or governmental body, agency or other official,
         excluding taxes measured by or imposed upon the net income of any
         Lender or its applicable lending office, or any branch

                                       39

<PAGE>

         or affiliate thereof, and all franchise taxes, branch taxes, taxes on
         doing business or taxes on the capital or net worth of any Lender or
         its applicable lending office, or any branch or affiliate thereof, in
         each case imposed in lieu of net income taxes: (i) by the jurisdiction
         under the laws of which such Lender, applicable lending office, branch
         or affiliate is organized or is located, or in which its principal
         executive office is located, or any nation within which such
         jurisdiction is located or any political subdivision thereof; or (ii)
         by reason of any connection between the jurisdiction imposing such tax
         and such Lender, applicable lending office, branch or affiliate other
         than a connection arising solely from such Lender having executed,
         delivered or performed its obligations, or received payment under or
         enforced, this Credit Agreement or any Notes. If any such non-excluded
         taxes, levies, imposts, duties, charges, fees, deductions or
         withholdings ("Non-Excluded Taxes") are required to be withheld from
         any amounts payable to the Administrative Agent or any Lender hereunder
         or under any Notes, (A) the amounts so payable to the Administrative
         Agent or such Lender shall be increased to the extent necessary to
         yield to the Administrative Agent or such Lender (after payment of all
         Non-Excluded Taxes) interest or any such other amounts payable
         hereunder at the rates or in the amounts specified in this Credit
         Agreement and any Notes, provided, however, that the Borrower shall be
         entitled to deduct and withhold any Non-Excluded Taxes and shall not be
         required to increase any such amounts payable to any Lender if such
         Lender fails to comply with the requirements of paragraph (b) of this
         Section 3.13 whenever any Non-Excluded Taxes are payable by the
         Borrower, (B) as promptly as possible after requested the Borrower
         shall send to such Administrative Agent for its own account or for the
         account of such Lender, as the case may be, a certified copy of an
         original official receipt received by the Borrower showing payment
         thereof and (C) with respect to any withholding of United States
         federal income tax, the Borrower shall apply to the payments the
         required withholding tax rates provided by the applicable United States
         withholding tax rules, including but not limited to Internal Revenue
         Code Section 1441, 1442, 3406 and 6049. If the Borrower fails to pay
         any Non-Excluded Taxes when due to the appropriate taxing authority or
         fails to remit to the Administrative Agent the required receipts or
         other required documentary evidence, the Borrower shall indemnify the
         Administrative Agent and any Lender for any incremental Non-Excluded
         Taxes, interest or penalties that may become payable by the
         Administrative Agent or any Lender as a result of any such failure. The
         agreements in this subsection shall survive the termination of this
         Credit Agreement and the payment of the Loans and all other amounts
         payable hereunder.

                  (b)      U.S. and Non-U.S. Lenders

                           (i)      Each Lender, including each Lender that is
                  not incorporated under the laws of the United States of
                  America or a state thereof (each a "Non-U.S. Lender"), agrees
                  that it will, not more than ten (10) Business Days after the
                  date of this Agreement, (i) deliver to the Administrative
                  Agent two duly completed copies of the applicable United
                  States Internal Revenue Service Form W-8 or W-9, including but
                  not limited to United States Internal Revenue Service Form
                  W-8BEN or W-8ECI or (ii) the case of a Non-U.S. Lender
                  claiming exemption from

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<PAGE>

                  the withholding of United States federal income tax under
                  Section 871(h) or 881(c) of the Code with respect to payments
                  of "portfolio interest," deliver two duly completed copies of
                  the applicable United States Internal Revenue Service Form
                  W-8, including but not limited to a United States Internal
                  Revenue Service Form W-8BEN and a certificate representing
                  that such Lender is not (A) a "bank" for purposes of Section
                  881(c) of the Code, (B) a ten-percent shareholder of the
                  Borrower (within the meaning of Section 871(h)(3)(B) of the
                  Code) or (C) a controlled foreign corporation related to the
                  Borrower (within the meaning of Section 864(d)(4) of the
                  Code), certifying in either case that such Lender is entitled
                  to receive payments under this Agreement without deduction or
                  withholding of any United States federal income taxes. Each
                  Lender further undertakes to deliver to each of the Borrower
                  and the Administrative Agent (x) renewals or additional copies
                  of such form (or any successor form) on or before the date
                  that such form expires or becomes obsolete, and (y) after the
                  occurrence of any event requiring a change in the most recent
                  forms so delivered by it, such additional forms or amendments
                  thereto as may be reasonably requested by the Borrower or the
                  Administrative Agent. All forms or amendments described in the
                  preceding sentence shall certify that such Lender is entitled
                  to receive payments under this Agreement without deduction or
                  withholding of any United States federal income taxes, unless
                  an event (including without limitation any change in treaty,
                  law or regulation) has occurred prior to the date on which any
                  such delivery would otherwise be required which renders all
                  such forms inapplicable or which would prevent such Lender
                  from duly completing and delivering any such form or amendment
                  with respect to it and such Lender advises the Borrower and
                  the Administrative Agent that it is not capable of receiving
                  payments without any deduction or withholding of United States
                  federal income tax.

                           (ii)     For any period during which a Lender has
                  failed to provide the Borrower with an appropriate form
                  pursuant to clause (i) above (unless such failure is due to a
                  change in treaty, law or regulation, or any change in the
                  interpretation or administration thereof by any governmental
                  authority, occurring subsequent to the date on which a form
                  originally was required to be provided), such Lender shall not
                  be entitled to indemnification under this Section 3.13 with
                  respect to Taxes imposed by the United States; provided that,
                  should a Lender which is otherwise exempt from or subject to a
                  reduced rate of withholding tax become subject to Taxes
                  because of its failure to deliver a form required under clause
                  (i) above, the Borrower shall take such steps as such Lender
                  shall reasonably request to assist such Lender to recover such
                  Taxes.

                           (iii)    Any Lender that is entitled to an exemption
                  from or reduction of withholding tax with respect to payments
                  under this Agreement or any Note pursuant to the law of any
                  relevant jurisdiction or any treaty shall deliver to the
                  Borrower (with a copy to the Administrative Agent), at the
                  time or times prescribed by applicable law, such properly
                  completed and executed

                                       41

<PAGE>

                  documentation prescribed by applicable law as will permit such
                  payments to be made without withholding or at a reduced rate.

                           (iv)     If the U.S. Internal Revenue Service or any
                  other governmental authority of the United States or any other
                  country or any political subdivision thereof asserts a claim
                  that the Administrative Agent or the Borrower, as applicable,
                  did not properly withhold tax from amounts paid to or for the
                  account of any Lender (because the appropriate form was not
                  delivered or properly completed, because such Lender failed to
                  notify the Administrative Agent or the Borrower, as
                  applicable, of a change in circumstances which rendered its
                  exemption from withholding ineffective, or for any other
                  reason), such Lender shall indemnify the Administrative Agent
                  or the Borrower, as applicable, fully for all amounts paid,
                  directly or indirectly, by the Administrative Agent or the
                  Borrower, as applicable, as tax, withholding therefor, or
                  otherwise, including penalties and interest, and including
                  taxes imposed by any jurisdiction on amounts payable to the
                  Administrative Agent or the Borrower, as applicable, under
                  this subsection, together with all costs and expenses related
                  thereto (including attorneys fees and time charges of
                  attorneys for the Administrative Agent or the Borrower, as
                  applicable, which attorneys may be employees of the
                  Administrative Agent or the Borrower, as applicable). The
                  obligations of the Lenders under this clause (iv) shall
                  survive the payment of the Obligations and termination of this
                  Agreement.

                           (v)      Notwithstanding the above, if any change in
                  treaty, law or regulation has occurred after the date such
                  Person becomes a Lender hereunder which renders all such forms
                  (or successor forms) inapplicable or which would prevent such
                  Lender from duly completing and delivering any such form with
                  respect to it and such Lender so advises the Borrower and the
                  Administrative Agent, then such Lender shall be exempt from
                  such requirements. Each Person that shall become a Lender or a
                  participant of a Lender pursuant to Section 11.3 shall, upon
                  the effectiveness of the related transfer, be required to
                  provide all of the forms, certifications and statements
                  required pursuant to this subsection (b); provided that in the
                  case of a participant of a Lender, the obligations of such
                  participant of a Lender pursuant to this subsection (b) shall
                  be determined as if the participant of a Lender were a Lender
                  except that such participant of a Lender shall furnish all
                  such required forms, certifications and statements to the
                  Lender from which the related participation shall have been
                  purchased.

         3.14     COMPENSATION.

         The Borrower promises to indemnify each Lender and to hold each Lender
harmless from any loss or expense which such Lender may sustain or incur as a
consequence of (a) default by the Borrower in making a borrowing of, conversion
into or continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Credit Agreement,
(b) default by the Borrower in making any prepayment of a Eurodollar Loan after
the

                                       42

<PAGE>

Borrower has given a notice thereof in accordance with the provisions of this
Credit Agreement and (c) the making of a prepayment of Eurodollar Loans on a day
which is not the last day of an Interest Period with respect thereto. Such
indemnification may include an amount equal to (i) the amount of interest which
would have accrued on the amount so prepaid, or not so borrowed, converted or
continued, for the period from the date of such prepayment or of such failure to
borrow, convert or continue to the last day of the applicable Interest Period
(or, in the case of a failure to borrow, convert or continue, the Interest
Period that would have commenced on the date of such failure) in each case at
the applicable rate of interest for such Eurodollar Loans provided for herein
(excluding, however, the Applicable Percentage included therein, if any) minus
(ii) the amount of interest (as reasonably determined by such Lender) which
would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank Eurodollar
market. The agreements in this Section shall survive the termination of this
Credit Agreement and the payment of the Loans and all other amounts payable
hereunder.

         3.15     SUBSTITUTION OF LENDER.

         If (a) the obligation of any Lender to make Eurodollar Loans has been
suspended pursuant to Section 3.11 or (b) any Lender has demanded compensation
under Section 3.9, 3.11, 3.12, 3.13 or 3.14, the Borrower shall have the right,
with the assistance of the Administrative Agent, to seek a mutually satisfactory
substitute lender or lenders. Any substitution under this Section 3.15 may be
accomplished, at the Borrower's option, either (i) by the replaced Lender
assigning its rights and obligations hereunder to a replacement lender or
lenders pursuant to Section 11.3(b) at a mutually agreeable price or (ii) by the
Borrower's prepaying all outstanding Loans from the replaced Lender and
terminating such Lender's Commitment on a date specified in a notice delivered
to the Administrative Agent and the replaced Lender at least three Business Days
before the date so specified (and compensating such Lender for any resulting
funding losses as provided in Section 3.14 but otherwise without premium or
penalty) and concurrently a replacement Lender or Lenders assuming a Commitment
in an amount equal to the Commitment being terminated and making Loans in the
same aggregate amount and having the same maturity date or dates, respectively,
as the Loans being prepaid, all pursuant to documents reasonably satisfactory to
the Administrative Agent (and in the case of any document to be signed by the
replaced Lender, reasonably satisfactory to such Lender). No such substitution
shall relieve the Borrower of its obligations to compensate and/or indemnify the
replaced Lender as required by Section 3.9, 3.11, 3.12, 3.13 or 3.14 with
respect to the period before it is replaced and to pay all accrued interest,
accrued fees and other amounts owing to the replaced Lender hereunder.

         3.16     EVIDENCE OF DEBT.

                  (a)      Each Lender shall maintain an account or accounts
         evidencing each Loan made by such Lender to the Borrower from time to
         time, including the amounts of principal and interest payable and paid
         to such Lender from time to time under this Credit Agreement. Each
         Lender will make reasonable efforts to maintain the accuracy of its
         account or accounts and to promptly update its account or accounts from
         time to time, as necessary.

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<PAGE>

                  (b)      The Administrative Agent shall maintain the Register
         pursuant to Section 11.3(c), and a subaccount for each Lender, in which
         Register and subaccounts (taken together) shall be recorded (i) the
         amount, type and Interest Period of each such Loan hereunder, (ii) the
         amount of any principal or interest due and payable or to become due
         and payable to each Lender hereunder, and (iii) the amount of any sum
         received by the Administrative Agent hereunder from or for the account
         of the Borrower and each Lender's share thereof, if any. The
         Administrative Agent will make reasonable efforts to maintain the
         accuracy of the subaccounts referred to in the preceding sentence and
         to promptly update such subaccounts from time to time, as necessary.

                  (c)      The entries made in the accounts, Register and
         subaccounts maintained pursuant to subsection (b) of this Section 3.16
         (and, if consistent with the entries of the Administrative Agent,
         subsection (a)) shall be prima facie evidence of the existence and
         amounts of the obligations of the Borrower therein recorded; provided,
         however, that the failure of any Lender or the Administrative Agent to
         maintain such account, such Register, or such subaccount, as
         applicable, or any error therein, shall not in any manner affect the
         obligation of the Borrower to repay the Loans made by such Lender in
         accordance with the terms hereof.

                                    SECTION 4

                                  FACILITY LCs

         4.1      ISSUANCE.

         Each LC Issuer hereby agrees, on the terms and conditions set forth in
this Agreement, to issue standby Letters of Credit (each such Letter of Credit
and each Existing Letter of Credit, a "Facility LC") and to renew, extend,
increase, decrease or otherwise modify each Facility LC ("Modify," and each such
action a "Modification"), from time to time from and including the date of this
Agreement and not later than five (5) Business Days prior to the Maturity Date
upon the request of the Borrower; provided that immediately after each such
Facility LC is issued or Modified, (i) the aggregate amount of the outstanding
LC Obligations shall not exceed the Aggregate LC Commitment and (ii) the sum of
the aggregate amount of Revolving Loans outstanding plus the aggregate amount of
Swingline Loans outstanding plus the aggregate amount of all LC Obligations
outstanding shall not exceed the Revolving Committed Amount. No Facility LC
shall have an expiry date later than the earlier of the fifth (5th) Business Day
prior to the Maturity Date.

         4.2      PARTICIPATIONS.

         Upon the Effective Date (in the case of the Existing Letters of Credit)
and upon issuance or Modification by an LC Issuer of a Facility LC in accordance
with this Section 4, such LC Issuer shall be deemed, without further action by
any party hereto, to have unconditionally and irrevocably sold to each Lender,
and each Lender shall be deemed, without further action by any party hereto, to
have unconditionally and irrevocably purchased from such LC Issuer, a

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<PAGE>

participation in such Facility LC (and each Modification thereof) and the
related LC Obligations in proportion to its Pro Rata Share.

         4.3      NOTICE.

         Subject to Section 4.1, the Borrower shall give the LC Issuer notice
prior to 10:00 a.m. (Chicago time) at least one (1) Business Day prior to the
proposed date of issuance or Modification of each Facility LC, specifying the
beneficiary, the proposed date of issuance (or Modification) and the expiry date
of such Facility LC, and describing the proposed terms of such Facility LC and
the nature of the transactions proposed to be supported thereby (the "Facility
LC Request"). Upon receipt of such Facility LC Request, the LC Issuer shall
promptly (and in any event prior to the issuance (or Modification) of such
Facility LC) notify the Administrative Agent, and the Administrative Agent shall
promptly notify each Lender, of the contents thereof and of the amount of such
Lender's participation in such proposed Facility LC, which notices to and by the
Administrative Agent may be given by fax or e-mail. The issuance or Modification
by an LC Issuer of any Facility LC shall, in addition to the conditions
precedent set forth in Section 5 (the satisfaction of which the LC Issuer shall
have no duty to ascertain), be subject to the conditions precedent that (a) the
LC Issuer shall have received confirmation (which may be given by fax or e-mail)
from the Administrative Agent that the issuance (or Modification) of such
Facility LC is in compliance with the limitations set forth in Sections
2.1(a)(i) and 4.1, (b) such Facility LC shall be satisfactory to such LC Issuer
and (c) the Borrower shall have executed and delivered such application
agreement and/or such other instruments and agreements relating to such Facility
LC as such LC Issuer shall have reasonably requested (each, a "Facility LC
Application"). In the event of any conflict between the terms of this Agreement
and the terms of any Facility LC Application, the terms of this Agreement shall
control.

         4.4      FEES; REPORTING.

                  (a)      Facility LC Fee. The Borrower shall pay to the
         Administrative Agent, solely for the account of the Lenders, a fee (the
         "Facility LC Fee") with respect to each Facility LC for the period from
         the Issuance Date thereof (or, in the case of the Existing Letters of
         Credit, the Effective Date) to and including the final expiration date
         thereof, in a per annum amount equal to the product, calculated on a
         daily basis for each day during such period, of (A) the undrawn amount
         of such Facility LC for such day multiplied by (B) the Facility LC Fee
         Rate for such day, less 0.125% per annum. The Facility LC Fees shall be
         due and payable quarterly in arrears not later than five (5) Business
         Days following Administrative Agent's delivery to Borrower of the
         quarterly statement of Facility LC Fees and, to the extent any such
         fees are then due and unpaid, on the Maturity Date. The Administrative
         Agent shall promptly remit such Facility LC Fees, when received by the
         Administrative Agent, to the Lenders (including the LC Issuers) in
         accordance with their Pro Rata Shares thereof. The Facility LC Fees,
         once paid, shall not be refundable for any reason.

                  (b)      Fronting Fee. The Borrower shall also pay to the
         Administrative Agent, solely for the account of each LC Issuer, as a
         Fronting Fee ("Fronting Fee"), with respect

                                       45

<PAGE>

         to each Facility LC issued by such LC Issuer for the period from the
         Issuance Date thereof (or, in the case of the Existing Letters of
         Credit, the Effective Date) to and including the final expiration date
         thereof, in an amount equal to the product, calculated on a daily basis
         for each day during such period, of (x) the undrawn amount of such
         Facility LC for such day multiplied by (y) 0.125% per annum. The
         Fronting Fees shall also be due and payable quarterly in arrears on the
         date on which Facility LC Fees are payable and, to the extent any
         Fronting Fees are then due and unpaid, on the Maturity Date. The
         Administrative Agent shall promptly remit such Fronting Fee, when
         received by the Administrative Agent, to the applicable LC Issuer. The
         Fronting Fees, once paid, shall not be refundable for any reason. The
         Borrower shall also pay to the LC Issuer for its own account
         documentary and processing charges in connection with the issuance or
         Modification of and draws under Facility LCs in accordance with the LC
         Issuer's standard schedule for such charges as in effect from time to
         time.

                  (c)      LC Issuer Reports; Quarterly Statements. Each LC
         Issuer shall, no later than the third (3rd) Business Day following the
         last day of each month, provide to the Administrative Agent a schedule
         of the Facility LCs issued by it, in form and substance reasonably
         satisfactory to the Administrative Agent, showing the Issuance Date,
         account party, original face amount (if any) paid thereunder,
         expiration date and the reference number of each Facility LC
         outstanding at any time during such month (and whether such Facility LC
         is a performance Letter of Credit or financial Letter of Credit) and
         the aggregate amount (if any) payable by the Borrower to such LC Issuer
         during the month pursuant to Sections 3.9 and 3.12 . Copies of such
         reports shall be provided promptly to each Lender and the Borrower by
         the Administrative Agent. The reporting requirements hereunder are in
         addition to those set forth in Section 4.3. The Administrative Agent
         shall, with reasonable promptness following receipt from all LC Issuers
         of the reports provided for in this Section 4.4(c) for the months of
         March, June, September and December, respectively, deliver to the
         Borrower a quarterly statement of the Facility LC Fees and Fronting
         Fees then due and payable.

         4.5      ADMINISTRATION; REIMBURSEMENT BY LENDERS.

         Upon receipt by an LC Issuer from the beneficiary of any Facility LC of
any demand for payment under a Facility LC issued by such LC Issuer, such LC
Issuer shall notify the Administrative Agent and the Administrative Agent shall
promptly notify the Borrower and each other Lender as to the amount to be paid
by the LC Issuer as a result of such demand and the proposed payment date (the
"LC Payment Date"). The responsibility of the LC Issuer to the Borrower and each
Lender shall be only to determine that the documents (including each demand for
payment) delivered under each Facility LC in connection with such presentment
shall be in conformity in all material respects with such Facility LC. An LC
Issuer shall endeavor to exercise the same care in the issuance and
administration of the Facility LCs as it does with respect to Letters of Credit
in which no participations are granted, it being understood that in the absence
of any gross negligence or willful misconduct by an LC Issuer, each Lender shall
be unconditionally and irrevocably liable without regard to the occurrence of
any Default or any condition precedent whatsoever, to reimburse such LC Issuer
on demand for (i) such Lender's

                                       46

<PAGE>

Pro Rata Share of the amount of each payment made by such LC Issuer under each
Facility LC to the extent such amount is not reimbursed by the Borrower pursuant
to Section 4.6 below, plus (ii) interest on the foregoing amount to be
reimbursed by such Lender, for each day from the date of such LC Issuer's demand
for such reimbursement (or, if such demand is made after 11:00 a.m. on such
date, from the next succeeding Business Day) to the date on which such Lender
pays the amount to be reimbursed by it, at a rate of interest per annum equal to
the Federal Funds Effective Rate for the first three days and, thereafter, at a
rate of interest equal to the rate applicable to Floating Rate Advances.

         4.6      REIMBURSEMENT BY BORROWER.

         The Borrower shall be irrevocably and unconditionally obligated to
reimburse the LC Issuer on or before the applicable LC Payment Date for any
Reimbursement Obligations in respect of any Facility LC upon any drawing under
such Facility LC, without presentment, demand, protest or other formalities of
any kind; provided that neither the Borrower nor any Lender shall hereby be
precluded from asserting any claim for direct (but not consequential) damages
suffered by the Borrower or such Lender to the extent, but only to the extent,
caused by (i) the willful misconduct or gross negligence of the LC Issuer in
determining whether a request presented under any Facility LC issued by it
complied with the terms of such Facility LC or (ii) the LC Issuer's failure to
pay under any Facility LC issued by it after the presentation to it of a request
strictly complying with the terms and conditions of such Facility LC. Each LC
Issuer shall use commercially reasonable efforts to notify the Borrower and the
Administrative Agent of its receipt of any draft received with respect to any
Facility LC issued by such LC Issuer, but the failure to give (or any delay in
giving) such notice shall not affect the obligations of the Borrower hereunder.
All Reimbursement Obligations remaining unpaid by the Borrower after notice
thereof has been given to the Borrower shall bear interest, payable on demand,
for each day until paid at a rate per annum equal to (x) the rate applicable to
Floating Rate Advances for such day if such day falls on or before the
applicable LC Payment Date and (y) a per annum rate equal to two percent (2%)
plus the Floating Rate for such day if such day falls after such LC Payment
Date. Each LC Issuer will pay to each Lender ratably in accordance with its Pro
Rata Share all amounts received by it from the Borrower for application in
payment, in whole or in part, of the Reimbursement Obligation in respect of any
Facility LC issued by such LC Issuer, but only to the extent such Lender has
made payment to the LC Issuer in respect of such Facility LC pursuant to Section
4.5. Subject to the terms and conditions of this Agreement (including without
limitation the submission of a Borrowing Notice in compliance with Section
2.1(b) and the satisfaction of the applicable conditions precedent set forth in
Section 5), the Borrower may request an Advance hereunder for the purpose of
satisfying any Reimbursement Obligation.

         4.7      OBLIGATIONS ABSOLUTE.

         The Borrower's obligations under this Section 4.7 shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which the Borrower may have or have had
against any LC Issuer, any Lender or any beneficiary of a Facility LC. The
Borrower further agrees with each LC Issuer and the Lenders that the LC Issuer
and the Lenders shall not be responsible for, and the Borrower's

                                       47

<PAGE>

Reimbursement Obligation in respect of any Facility LC shall not be affected by,
among other things, the validity or genuineness of documents or of any
endorsements thereon, even if such documents should in fact prove to be in any
or all respects invalid, fraudulent or forged, or any dispute between or among
the Borrower, any of its Affiliates, the beneficiary of any Facility LC or any
financing institution or other party to whom any Facility LC may be transferred
or any claims or defenses whatsoever of the Borrower or of any of its Affiliates
against the beneficiary of any Facility LC or any such transferee. The LC Issuer
shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Facility LC. The Borrower agrees that any
action taken or omitted by any LC Issuer or Lender under or in connection with
each Facility LC and the related drafts and documents, if done without gross
negligence or willful misconduct, shall be binding upon the Borrower and shall
not put any LC Issuer or Lender under any liability to the Borrower. Nothing in
this Section 4.7 is intended to limit the right of the Borrower to make a claim
against an LC Issuer for damages as contemplated by the proviso to the first
sentence of Section 4.6.

         4.8      ACTIONS OF LC ISSUER.

         Each LC Issuer shall be entitled to rely, and shall be fully protected
in relying, upon any Facility LC, draft, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons,
and upon advice and statements of legal counsel, independent accountants and
other experts selected by such LC Issuer. Each LC Issuer shall be fully
justified in failing or refusing to take any action under this Agreement unless
it shall first have received such advice or concurrence of the Required Lenders
as it reasonably deems appropriate or it shall first be indemnified to its
reasonable satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such
action. Notwithstanding any other provision of this Section 4.8, each LC Issuer
shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement in accordance with a request of the Required Lenders, and
such request and any action taken or failure to act pursuant thereto shall be
binding upon the Lenders and any future holders of a participation in any
Facility LC.

         4.9      INDEMNIFICATION.

         The Borrower hereby agrees to indemnify and hold harmless each Lender
and LC Issuer and the Administrative Agent, and their respective directors,
officers, agents and employees from and against any and all claims and damages,
losses, liabilities, costs or expenses which such Lender, LC Issuer or the
Administrative Agent may incur (or which may be claimed against such Lender, LC
Issuer or the Administrative Agent by any Person whatsoever) by reason of or in
connection with the issuance, execution and delivery or transfer of or payment
or failure to pay under any Facility LC or any actual or proposed use of any
Facility LC, including, without limitation, any claims, damages, losses,
liabilities, costs or expenses which an LC Issuer may incur by reason of or on
account of such LC Issuer issuing any Facility LC which specifies that the term
"Beneficiary" included therein includes any successor by operation of law of the
named

                                       48

<PAGE>

Beneficiary, but which Facility LC does not require that any drawing by any such
successor Beneficiary be accompanied by a copy of a legal document, satisfactory
to such LC Issuer, evidencing the appointment of such successor Beneficiary;
provided that the Borrower shall not be required to indemnify any Lender, LC
Issuer or the Administrative Agent for any claims, damages, losses, liabilities,
costs or expenses to the extent, but only to the extent, caused by (x) the
willful misconduct or gross negligence of an LC Issuer in determining whether a
request presented under any Facility LC complied with the terms of such Facility
LC or (y) an LC Issuer's failure to pay under any Facility LC after the
presentation to it of a request strictly complying with the terms and conditions
of such Facility LC. Nothing in this Section 4.9 is intended to limit the
obligations of the Borrower under any other provision of this Agreement.

         4.10     LENDERS' INDEMNIFICATION.

         Each Lender shall, ratably in accordance with its Pro Rata Share,
indemnify each LC Issuer, its affiliates and their respective directors,
officers, agents and employees (to the extent not reimbursed by the Borrower)
against any cost, expense (including reasonable counsel fees and disbursements),
claim, demand, action, loss or liability (except such as result from such
indemnitees' gross negligence or willful misconduct or such LC Issuer's failure
to pay under any Facility LC after the presentation to it of a request strictly
complying with the terms and conditions of the Facility LC) that such
indemnitees may suffer or incur in connection with this Section 4.10 or any
action taken or omitted by such indemnitees hereunder.

         4.11     FACILITY LC COLLATERAL ACCOUNT.

         The Borrower agrees that it will, upon the request of the
Administrative Agent or the Required Lenders and until the final expiration date
of any Facility LC and thereafter as long as any amount is payable to any LC
Issuer or Lender in respect of any Facility LC, maintain a special collateral
account pursuant to arrangements reasonably satisfactory to the Administrative
Agent (the "Facility LC Collateral Account") at the Administrative Agent's
office at the address specified in or pursuant to Section 11.1, in the name of
such Borrower but under the sole dominion and control of the Administrative
Agent, for the benefit of the Lenders and in which such Borrower shall have no
interest other than as set forth in Section 9.3. The Borrower hereby pledges,
assigns and grants to the Administrative Agent, on behalf of and for the ratable
benefit of the Lenders and LC Issuers, a security interest in all of the
Borrower's right, title and interest in and to all funds which may from time to
time be on deposit in the Facility LC Collateral Account to secure the prompt
and complete payment and performance of the Credit Party Obligations. The
Administrative Agent will invest any funds on deposit from time to time in the
Facility LC Collateral Account in certificates of deposit of the Administrative
Agent having a maturity not exceeding 30 days. Nothing in this Section 4.11
shall obligate the Administrative Agent to require the Borrower to deposit any
funds in the Facility LC Collateral Account or limit the right of the
Administrative Agent to release any funds held in the Facility LC Collateral
Account or obligate the Borrower to deposit any funds in the Facility LC
Collateral Account, in each case other than as required by Section 9.2, 9.3 or
9.4 (as applicable).

         4.12     RIGHTS AS A LENDER.

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<PAGE>

         In its capacity as a Lender, each LC Issuer shall have the same rights
and obligations as any other Lender.

                                    SECTION 5

                              CONDITIONS PRECEDENT

         5.1      CLOSING CONDITIONS.

         The obligation of the Lenders to enter into this Credit Agreement and
make the initial Extension of Credit is subject to satisfaction (or waiver by
each of the Lenders) of the following conditions:

                  (a)      Executed Credit Documents. Receipt by the
         Administrative Agent of duly executed copies of: (i) this Credit
         Agreement; (ii) the Notes, (iii) the Guaranty (executed by all of the
         REITs and the Material Subsidiaries), (iv) the Intercreditor Agreement
         (executed by all of the REITs and any other creditor of Borrower party
         thereto) and (v) all other Credit Documents, each in form and substance
         reasonably acceptable to the Administrative Agent and the Lenders;
         provided that receipt by the Administrative Agent of an executed
         signature page to this Credit Agreement from a Lender shall be deemed
         approval by such Lender of the form and substance of the Credit
         Documents.

                  (b)      Authority Documents.

                           (i)      Partnership Documents. With respect to each
                  Credit Party that is a partnership or limited liability
                  partnership (for the purposes hereof, each a "Partnership"),
                  receipt by the Administrative Agent of the following:

                                    (A)      Authorization. Authorization of the
                           general partner(s) of such Partnership, as of the
                           Closing Date, approving and adopting the Credit
                           Documents to be executed by such Partnership and
                           authorizing the execution and delivery thereof.

                                    (B)      Partnership Agreements. Certified
                           copies of the partnership agreement of such
                           Partnership, together with all amendments thereto.

                                    (C)      Certificates of Good Standing or
                           Existence. Certificate of good standing or existence
                           for such Partnership, issued as of a recent date by
                           its state of organization and each other state where
                           the failure to qualify or be in good standing would
                           have or could be reasonably expected to have a
                           Material Adverse Effect.

                                    (D)      Incumbency. An incumbency
                           certificate of the general partner(s) of such
                           Partnership certified by a secretary or assistant
                           secretary of such general partner to be true and
                           correct as of the Closing Date.

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                           (ii)     Corporate Documents. With respect to each
                  Credit Party that is a corporation, (for the purposes hereof,
                  each a "Corporation"), and with respect to each corporate
                  entity acting, directly or indirectly, on behalf of a Credit
                  Party that is a partnership, limited liability partnership or
                  limited liability company (for the purposes of this clause
                  (ii), each a "Managing Person"), receipt by the Administrative
                  Agent of the following:

                                    (A)      Charter Documents. Copies of the
                           articles or certificates of incorporation or other
                           charter documents of each such Corporation or
                           Managing Person, as applicable, certified to be true
                           and complete as of a recent date by the appropriate
                           Governmental Authority of the state or other
                           jurisdiction of its incorporation and certified by a
                           secretary or assistant secretary of such Corporation
                           or Managing Person, as applicable, to be true and
                           correct as of the Closing Date.

                                    (B)      Bylaws. A copy of the bylaws of
                           each such Corporation or Managing Person, as
                           applicable, certified by a secretary or assistant
                           secretary of such Corporation or Managing Person, as
                           applicable, to be true and correct as of the Closing
                           Date.

                                    (C)      Resolutions. Copies of resolutions
                           of such Corporation's board of directors approving
                           and adopting the Credit Documents to which it or the
                           Person for whom it is acting is a party and the
                           transactions contemplated therein and authorizing
                           execution and delivery thereof, certified by a
                           secretary or assistant secretary of such Corporation
                           or Managing Person, as applicable, to be true and
                           correct and in full force and effect as of the
                           Closing Date.

                                    (D)      Good Standing. Copies of (A)
                           certificates of good standing, existence or their
                           equivalent with respect to such Corporation or
                           Managing Person, as applicable, certified as of a
                           recent date by the appropriate Governmental
                           Authorities of the state or other jurisdiction of
                           incorporation and each other jurisdiction in which
                           the failure to so qualify and be in good standing
                           would have or could be reasonably expected to have a
                           Material Adverse Effect and (B) to the extent
                           available, a certificate indicating payment of all
                           corporate franchise taxes certified as of a recent
                           date by the appropriate governmental taxing
                           authorities.

                                    (E)      Incumbency. An incumbency
                           certificate of such Corporation or Managing Person,
                           as applicable, certified by an officer of such
                           Corporation or Managing Person, as applicable, to be
                           true and correct as of the Closing Date.

                           (iii)    Limited Liability Company Documents. With
                  respect to each Credit Party that is a limited liability
                  company (for the purposes hereof, each an

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<PAGE>

                  "LLC") and with respect to any limited liability company
                  acting, directly or indirectly, on behalf of a Credit Party
                  (for the purposes of this clause (iii), each a "Managing
                  Person"), receipt by the Administrative Agent of the
                  following:

                                    (A)      Certificate of Formation. A copy of
                           the certificate of formation of such LLC or Managing
                           Person, as applicable, certified to be true and
                           complete by the appropriate Governmental Authority of
                           the state or jurisdiction of its formation and
                           certified by the sole or managing member of such LLC
                           or Managing Person, as applicable, to be true and
                           correct as of the Closing Date.

                                    (B)      LLC Agreement. A copy of the LLC
                           Agreement of such LLC or Managing Person, as
                           applicable, certified by the sole or managing member
                           of such LLC or Managing Person, as applicable, to be
                           true and correct as of the Closing Date.

                                    (C)      Resolutions. Copies of resolutions
                           of the sole or managing member of such LLC or
                           Managing Person approving and adopting the Credit
                           Documents to which it or the Person for whom it is
                           acting is a party and the transactions contemplated
                           therein and authorizing execution and delivery
                           thereof.

                                    (D)      Good Standing. Copies of
                           certificates of good standing, existence or their
                           equivalent with respect to such LLC or Managing
                           Person, as applicable, certified as of a recent date
                           by the appropriate Governmental Authorities of the
                           state or other jurisdiction of formation and each
                           other jurisdiction in which the failure to so qualify
                           and be in good standing would have or could be
                           reasonably expected to have a Material Adverse
                           Effect.

                                    (E)      Incumbency. An incumbency
                           certificate of such LLC or Managing Person certified
                           by an officer of such LLC or Managing Person to be
                           true and correct as of the Closing Date.

                  (c)      Opinion of Counsel. Receipt by the Administrative
         Agent of an opinion or opinions from legal counsel to the Credit
         Parties (which shall cover, among other things, authority, legality,
         validity, binding effect, and enforceability of the Credit Documents),
         reasonably satisfactory to the Administrative Agent, addressed to the
         Administrative Agent and the Lenders and dated as of the Closing Date.

                  (d)      Financial Statements. Receipt by the Lenders of such
         financial information regarding the Credit Parties required to be
         delivered pursuant to Section 7.1 of the Existing Credit Agreement
         prior to the Closing Date.

                  (e)      Litigation. There shall not exist (i) any order,
         decree, judgment, ruling or injunction which prohibits or restrains the
         consummation of the transactions

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<PAGE>

         contemplated hereby or (ii) any pending (except as set forth on
         Schedule 6.11) or, to the knowledge of any Credit Party, threatened
         action, suit, investigation or proceeding against a Credit Party that
         would have or could be reasonably expected to have a Material Adverse
         Effect.

                  (f)      Officer's Certificates. The Administrative Agent
         shall have received a certificate or certificates executed by an
         Authorized Officer of the Borrower as of the Closing Date stating that
         (i) the Borrower and each of its Subsidiaries are in compliance with
         all existing material financial obligations after giving effect to this
         Credit Agreement, (ii) no action, suit, investigation or proceeding is
         pending or, to the knowledge of any Credit Party, threatened in any
         court or before any arbitrator or governmental instrumentality that
         purports to affect the Borrower, any of its Subsidiaries or any
         transaction contemplated by the Credit Documents, if such action, suit,
         investigation or proceeding would have or could be reasonably expected
         to have a Material Adverse Effect, (iii) the financial statements and
         information delivered to the Administrative Agent on or before the
         Closing Date were prepared in good faith and in accordance with GAAP
         and (iv) immediately after giving effect to this Credit Agreement, the
         other Credit Documents and all the transactions contemplated herein and
         therein, including the initial Extensions of Credit hereunder (if any),
         to occur on such date, (A) no Default or Event of Default exists, (B)
         all representations and warranties contained herein and in the other
         Credit Documents are true and correct in all material respects, (C) the
         Credit Parties are in compliance with each of the financial covenants
         set forth in Section 7.2 (with calculations demonstrating same) and (D)
         each Credit Party is Solvent.

                  (g)      Material Adverse Effect. There shall not have
         occurred a Material Adverse Effect since December 31, 2002.

                  (h)      Fees and Expenses. Payment by the Credit Parties of
         the fees and expenses owed by them to the Administrative Agent, the
         Lenders and Arranger pursuant to the terms of Section 3.4 and of the
         Fee Letter.

                  (i)      Existing Credit Agreement. The Administrative Agent
         shall have received evidence that the Existing Credit Agreement and all
         documents executed or delivered in connection with the Existing Credit
         Agreement shall have been terminated and that all amounts owing in
         connection with the Existing Credit Agreement shall have been paid in
         full on or before the Effective Date.

                  (j)      Market Disruption. There shall not have occurred any
         material disruption of or a material adverse change in conditions in
         the financial, banking or capital markets which the Administrative
         Agent and Arranger, in their reasonable discretion, deem material in
         connection with the syndication of this Credit Agreement.

                  (k)      Other. Receipt and satisfactory review by the
         Administrative Agent and its counsel of such other documents,
         instruments, agreements or information as reasonably and timely
         requested by the Administrative Agent, its counsel or any Lender,

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<PAGE>

         including, but not limited to, shareholder agreements, management
         agreements and information regarding litigation, tax, accounting,
         labor, insurance, pension liabilities (actual or contingent), real
         estate leases, material contracts, debt agreements, property ownership,
         contingent liabilities and management of the Borrower and its
         Subsidiaries.

         5.2      CONDITIONS TO ALL EXTENSIONS OF CREDIT.

         In addition to the conditions precedent stated elsewhere herein, no
Lender or LC Issuer shall be obligated to make new Extensions of Credit unless:

                  (a)      Notice. The Borrower shall have delivered (i) in the
         case of any new Revolving Loan, a Notice of Borrowing, duly executed
         and completed, by the time specified in Section 2.1, (ii) in the case
         of any new Swingline Loan, a Swingline Loan Request, duly executed and
         completed, by the time specified in Section 2.2 and (iii) in the case
         of the issuance or Modification of a Facility LC, the documentation
         required under Section 4.

                  (b)      Representations and Warranties. The representations
         and warranties made by the Credit Parties in any Credit Document are
         true and correct in all material respects at and as if made as of such
         date except to the extent they expressly relate to an earlier date.

                  (c)      No Default. No Default or Event of Default shall
         exist or be continuing either prior to or after giving effect thereto.

                  (d)      Availability. Immediately after giving effect to the
         making of such Loan (and the application of the proceeds thereof and
         the issuance or Modification of such Facility LC), the sum of the
         Revolving Loans outstanding plus Swingline Loans outstanding plus the
         aggregate amount of all LC Obligations outstanding shall not exceed the
         Revolving Committed Amount.

The delivery of each Notice of Borrowing and each Swingline Loan Request and
each Facility LC Request shall constitute a representation and warranty by the
Borrower of the correctness of the matters specified in subsections (b), (c) and
(d) above.

                                    SECTION 6

                         REPRESENTATIONS AND WARRANTIES

         The Borrower hereby represents and warrants to the Administrative Agent
and each Lender that:

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<PAGE>

         6.1      FINANCIAL CONDITION.

                  (a)      The financial statements delivered to the Lenders
         prior to the Effective Date and pursuant to Section 7.1(a) and (b): (i)
         have been prepared in accordance with GAAP and (ii) present fairly the
         consolidated and consolidating (as applicable) financial condition,
         results of operations and cash flows of the Borrower and its
         Subsidiaries as of such date and for such periods.

                  (b)      Since December 31, 2002, there has been no sale,
         transfer or other disposition by any Credit Party of any material part
         of the business or property of the Credit Parties taken as a whole, and
         no purchase or other acquisition by any of them of any business or
         property (including any Capital Stock of any other Person) material in
         relation to the consolidated financial condition of the Credit Parties
         taken as a whole, in each case which is not (i) reflected in the most
         recent financial statements delivered to the Lenders pursuant to
         Section 7.1 or in the notes thereto or (ii) otherwise permitted by the
         terms of this Credit Agreement and communicated to the Administrative
         Agent.

         6.2      NO MATERIAL CHANGE.

         Since December 31, 2002, there has been no development or event
relating to or affecting a Credit Party which has had or could be reasonably
expected to have a Material Adverse Effect.

         6.3      ORGANIZATION AND GOOD STANDING.

         Each Credit Party (a) is a corporation, partnership or limited
liability company duly organized, validly existing and in good standing under
the laws of the state (or other jurisdiction) of its organization, (b) is duly
qualified and in good standing as a foreign entity and authorized to do business
in every jurisdiction unless the failure to be so qualified, in good standing or
authorized would not have or could not be reasonably expected to have a Material
Adverse Effect and (c) has the requisite power and authority to own its
properties and to carry on its business as now conducted and as proposed to be
conducted.

         6.4      DUE AUTHORIZATION.

         Each Credit Party (a) has the requisite power and authority to execute,
deliver and perform this Credit Agreement and the other Credit Documents to
which it is a party and to incur the obligations herein and therein provided for
and (b) is duly authorized, and has been authorized by all necessary action, to
execute, deliver and perform this Credit Agreement and the other Credit
Documents to which it is a party.

         6.5      NO CONFLICTS.

         Neither the execution and delivery of the Credit Documents, nor the
consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by such Credit Party will (a)
violate or conflict with any provision of its articles or certificate of
incorporation or bylaws, (b) violate, contravene or materially conflict with any
Requirement of Law or any other law, regulation (including, without limitation,
Regulation D, O,

                                       55
<PAGE>

T, U or X), order, writ, judgment, injunction, decree or permit applicable to
it, (c) violate, contravene or conflict with contractual provisions of, or cause
an event of default under, any indenture, loan agreement, mortgage, deed of
trust, contract or other agreement or instrument to which it is a party or by
which it may be bound, the violation of which would have or could be reasonably
expected to have a Material Adverse Effect, or (d) result in or require the
creation of any Lien (other than those contemplated in or created in connection
with the Credit Documents) upon or with respect to its properties.

         6.6      CONSENTS.

         Except for consents, approvals and authorizations which have been
obtained, no consent, approval, authorization or order of, or filing,
registration or qualification with, any court or Governmental Authority or third
party in respect of any Credit Party is required in connection with the
execution, delivery or performance of this Credit Agreement or any of the other
Credit Documents by such Credit Party.

         6.7      ENFORCEABLE OBLIGATIONS.

         This Credit Agreement and the other Credit Documents have been duly
executed and delivered and constitute legal, valid and binding obligations of
each Credit Party enforceable against such Credit Party in accordance with their
respective terms, except as may be limited by bankruptcy, insolvency,
reorganization or moratorium laws or similar laws relating to or affecting
creditors' rights generally or by general equitable principles.

         6.8      NO DEFAULT.

         No Credit Party is in default in any respect under any contract, lease,
loan agreement, indenture, mortgage, security agreement or other agreement or
obligation to which it is a party or by which any of its properties is bound
which default would have or could be reasonably expected to have a Material
Adverse Effect. No Default or Event of Default has occurred or exists except as
previously disclosed in writing to the Lenders.

         6.9      LIENS.

         The assets of the Credit Parties are not subject to any Liens other
than Permitted Liens, which, individually or in the aggregate, would have or
could be reasonably expected to have a Material Adverse Effect.

         6.10     INDEBTEDNESS.

         The Credit Parties have no Indebtedness except (a) as disclosed in the
financial statements referenced in Section 6.1, (b) as set forth on Schedule
6.10, and (c) as otherwise permitted by this Credit Agreement.

         6.11     LITIGATION.

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<PAGE>

         Except as set forth on Schedule 6.11, there are no actions, suits or
legal, equitable, arbitration or administrative proceedings, pending or, to the
knowledge of any Credit Party, threatened against any Credit Party which, if
adversely determined, would have or could be reasonably expected to have a
Material Adverse Effect.

         6.12     TAXES.

         Each Credit Party has filed, or caused to be filed, all material tax
returns (federal, state, local and foreign) required to be filed and paid (a)
all amounts of taxes shown thereon to be due and payable (including interest and
penalties) and (b) all other taxes, fees, assessments and other governmental
charges (including mortgage recording taxes, documentary stamp taxes and
intangibles taxes) that are due and payable by it, except for such taxes (i)
which are not yet delinquent or (ii) that are being contested in good faith and
by proper proceedings, and against which adequate reserves are being maintained
in accordance with GAAP. To the knowledge of the Credit Parties, there are no
material tax assessments (including interest and penalties) claimed to be due
against any of them by any Governmental Authority.

         6.13     COMPLIANCE WITH LAW.

         Each Credit Party is in material compliance with all material
Requirements of Law and all other material laws, rules, regulations, orders and
decrees (including without limitation Environmental Laws) applicable to it, or
to its properties. No Requirement of Law would cause or could be reasonably
expected to cause a Material Adverse Effect.

         6.14     ERISA.

         Except as would not have or be reasonably expected to have a Material
Adverse Effect:

                  (a)      During the five-year period prior to the date on
         which this representation is made or deemed made: (i) no Termination
         Event has occurred, and, to the knowledge of the Credit Parties, no
         event or condition has occurred or exists as a result of which any
         Termination Event could reasonably be expected to occur, with respect
         to any Plan; (ii) no "accumulated funding deficiency," as such term is
         defined in Section 302 of ERISA and Section 412 of the Code, whether or
         not waived, has occurred with respect to any Plan; (iii) each Plan has
         been maintained, operated, and funded in compliance with its own terms
         and in material compliance with the provisions of ERISA, the Code, and
         any other applicable federal or state laws; and (iv) no lien in favor
         of the PBGC or a Plan has arisen or is reasonably likely to arise on
         account of any Plan.

                  (b)      The actuarial present value of all "benefit
         liabilities" (within the meaning of Section 4001 of ERISA) under each
         Single Employer Plan (determined utilizing the actuarial assumptions
         used to fund such Plans), whether or not vested, did not, as of the
         last annual valuation date prior to the date on which this
         representation is made or

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<PAGE>

         deemed made, exceed the fair market current value as of such date of
         the assets of such Plan allocable to such accrued liabilities.

                  (c)      Neither the Borrower, nor any of its Subsidiaries,
         nor any ERISA Affiliate has incurred, or, to the knowledge of such
         parties, are reasonably expected to incur, any withdrawal liability
         under ERISA to any Multiemployer Plan or Multiple Employer Plan.
         Neither the Borrower, nor any of its Subsidiaries, nor any ERISA
         Affiliate has received any notification pursuant to ERISA that any
         Multiemployer Plan is in reorganization (within the meaning of Section
         4241 of ERISA), is insolvent (within the meaning of Section 4245 of
         ERISA), or has been terminated (within the meaning of Title IV of
         ERISA), and, to the best knowledge of such parties, no Multiemployer
         Plan is reasonably expected to be in reorganization, insolvent, or
         terminated.

                  (d)      No nonexempt prohibited transaction (within the
         meaning of Section 406 of ERISA or Section 4975 of the Code) or breach
         of fiduciary responsibility has occurred with respect to a Plan which
         has subjected or is reasonably expected to subject the Borrower or any
         of its Subsidiaries or any ERISA Affiliate to any liability under
         Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the
         Code, or under any agreement or other instrument pursuant to which the
         Borrower or any of its Subsidiaries or any ERISA Affiliate has agreed
         or is required to indemnify any person against any such liability.

                  (e)      The present value of the liability of the Borrower
         and its Subsidiaries and each ERISA Affiliate for post-retirement
         welfare benefits to be provided to their current and former employees
         under Plans which are welfare benefit plans (as defined in Section 3(1)
         of ERISA), net of all assets under all such Plans allocable to such
         benefits, are reflected on the Financial Statements in accordance with
         FASB 106.

                  (f)      Each Plan which is a welfare plan (as defined in
         Section 3(1) of ERISA) to which Sections 601-609 of ERISA and Section
         4980B of the Code apply has been administered in material compliance
         with such sections.

         6.15     SUBSIDIARIES.

         Set forth on Schedule 6.15 is a complete and accurate list of all
Subsidiaries of each Credit Party and whether each such Person is a Material
Subsidiary. Schedule 6.15 shall be updated by the Borrower within 120 days after
the end of each calendar year and may be, but need not be, updated at any other
time and from time to time by the Borrower by giving written notice thereof to
the Administrative Agent.

         6.16     USE OF PROCEEDS.

         The proceeds of the Loans hereunder will be used solely for the
purposes specified in Section 7.10. No proceeds of the Loans hereunder have been
or will be used for the Acquisition

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<PAGE>

of another Person unless the board of directors (or other comparable governing
body) or stockholders, as appropriate, of such Person has approved such
Acquisition.

         6.17     GOVERNMENT REGULATION.

                  (a)      No proceeds of the Loans will be used, directly or
         indirectly, for the purpose of purchasing or carrying any "margin
         stock" within the meaning of Regulation U, or for the purpose of
         purchasing or carrying or trading in any securities. If requested by
         any Lender or the Administrative Agent, the Borrower will furnish to
         the Administrative Agent and each Lender a statement to the foregoing
         effect in conformity with the requirements of FR Form U-1 referred to
         in Regulation U. No Indebtedness being reduced or retired out of the
         proceeds of the Loans was or will be incurred for the purpose of
         purchasing or carrying any margin stock within the meaning of
         Regulation U or any "margin security" within the meaning of Regulation
         T. "Margin stock" within the meaning of Regulation U does not
         constitute more than 25% of the value of the consolidated assets of the
         Credit Parties and their Subsidiaries. None of the transactions
         contemplated by the Credit Documents (including, without limitation,
         the direct or indirect use of the proceeds of the Loans) will violate
         or result in a violation of (i) the Securities Act or (ii) the Exchange
         Act.

                  (b)      No Credit Party is subject to regulation under the
         Public Utility Holding Company Act of 1935, the Federal Power Act or
         the Investment Company Act of 1940, each as amended. In addition, no
         Credit Party is (i) an "investment company" registered or required to
         be registered under the Investment Company Act of 1940, as amended, and
         is not controlled by an "investment company", or (ii) a "holding
         company", or a "subsidiary company" of a "holding company", or an
         "affiliate" of a "holding company" or of a "subsidiary" of a "holding
         company", within the meaning of the Public Utility Holding Company Act
         of 1935, as amended.

                  (c)      No director, executive officer or principal
         shareholder of any Credit Party is a director, executive officer or
         principal shareholder of any Lender. For the purposes hereof the terms
         "director", "executive officer" and "principal shareholder" (when used
         with reference to any Lender) have the respective meanings assigned
         thereto in Regulation O.

         6.18     ENVIRONMENTAL MATTERS.

         Except as would not have or could not be reasonably expected to have a
Material Adverse Effect:

                  (a)      Each of the Real Properties and all operations at the
         Real Properties are in compliance with all applicable Environmental
         Laws, and there is no violation of any Environmental Law with respect
         to the Real Properties or the businesses operated by the Credit Parties
         (the "Businesses"), and there are no conditions relating to the
         Businesses or

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<PAGE>

         Real Properties that would reasonably be expected to give rise to
         liability under any applicable Environmental Laws.

                  (b)      No Credit Party has received any written notice of,
         or inquiry from any Governmental Authority regarding, any violation,
         alleged violation, non-compliance, liability or potential liability
         regarding Hazardous Materials or compliance with Environmental Laws
         with regard to any of the Real Properties or the Businesses, nor, to
         the knowledge of a Credit Party, is any such notice being threatened.

                  (c)      Hazardous Materials have not been transported or
         disposed of from the Real Properties, or generated, treated, stored or
         disposed of at, on or under any of the Real Properties or any other
         location, in each case by, or on behalf or with the permission of, a
         Credit Party in a manner that would give rise to liability under any
         applicable Environmental Laws.

                  (d)      No judicial proceeding or governmental or
         administrative action is pending or, to the knowledge of a Credit
         Party, threatened under any Environmental Law to which a Credit Party
         is or will be named as a party, nor are there any consent decrees or
         other decrees, consent orders, administrative orders or other orders,
         or other administrative or judicial requirements outstanding under any
         Environmental Law with respect to a Credit Party, the Real Properties
         or the Businesses.

                  (e)      There has been no release (including, without
         limitation, disposal) or threat of release of Hazardous Materials at or
         from the Real Properties, or arising from or related to the operations
         of a Credit Party in connection with the Real Properties or otherwise
         in connection with the Businesses where such release constituted a
         violation of, or would give rise to liability under, any applicable
         Environmental Laws.

                  (f)      None of the Real Properties contains, or has
         previously contained, any Hazardous Materials at, on or under the Real
         Properties in amounts or concentrations that, if released, constitute
         or constituted a violation of, or could give rise to liability under,
         Environmental Laws.

                  (g)      No Credit Party has assumed any liability of any
         Person (other than another Credit Party or Subsidiary thereof) under
         any Environmental Law.

         6.19     INTELLECTUAL PROPERTY.

         Each Credit Party owns, or has the legal right to use, all patents,
trademarks, service marks, tradenames, copyrights, licenses, technology,
know-how, processes and other rights (the "Intellectual Property"), free from
burdensome restrictions, that are necessary for the operation of their
respective businesses as presently conducted and as proposed to be conducted
other than those the absence of which would not cause or could not reasonably be
expected to cause a Material Adverse Effect. Except as would not have or could
not be reasonably expected to have a Material Adverse Effect, (a) no holding,
decision or judgment has been rendered by any

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<PAGE>

Governmental Authority which would limit, cancel or question the validity of any
Intellectual Property and (b) no action or proceeding is pending that seeks to
limit, cancel or question the validity of any Intellectual Property or which, if
adversely determined, would have a material adverse effect on the value of any
Intellectual Property.

         6.20     SOLVENCY.

         Each Credit Party is, and after consummation of the transactions
contemplated by this Credit Agreement will be, Solvent.

         6.21     INVESTMENTS.

         All Investments of each Credit Party are (a) as set forth on Schedule
6.21(b) or (b) Permitted Investments.

         6.22     DISCLOSURE.

         Neither this Credit Agreement nor any other Credit Document or
financial statement delivered to the Administrative Agent or the Lenders by or
on behalf of any Credit Party in connection with the transactions contemplated
hereby contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained therein or
herein, taken as a whole, not misleading.

         6.23     LICENSES, ETC.

         Except as would not have or could not be reasonably expected to have a
Material Adverse Effect, the Credit Parties have obtained and hold in full force
and effect, all material franchises, licenses, permits, certificates,
authorizations, qualifications, accreditations, easements, rights of way and
other rights, consents and approvals which are necessary for the operation of
their respective businesses as presently conducted.

         6.24     BURDENSOME RESTRICTIONS.

         No Credit Party is a party to any agreement or instrument or subject to
any other obligation or any charter or corporate restriction or any provision of
any Requirement of Law which, individually or in the aggregate, would have or
could be reasonably expected to have a Material Adverse Effect.

         6.25     LABOR CONTRACTS AND DISPUTES.

         Except as disclosed on Schedule 6.25, (a) there is no collective
bargaining agreement or other labor contract covering employees of any Credit
Party; (b) no union or other labor organization is seeking to organize, or be
recognized as, a collective bargaining unit of employees of any Credit Party;
and (c) there is no pending or, to any Credit Party's knowledge, threatened
strike, work stoppage, material unfair labor practice claim or other material
labor

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dispute against or affecting any Credit Party or its employees which,
individually or in the aggregate, would have or could be reasonably expected to
have a Material Adverse Effect.

         6.26     BROKER'S FEES.

         No Credit Party will pay or agree to pay, or reimburse any other Person
with respect to, any finder's, broker's, investment banking or other similar fee
in connection with any of the transactions contemplated under the Credit
Documents.

                                   SECTION 7

                             AFFIRMATIVE COVENANTS

         The Borrower hereby covenants and agrees that so long as this Credit
Agreement is in effect and until the Loans, together with interest and fees and
other obligations then due and payable hereunder, have been paid in full (other
than any such obligations which by the terms thereof are stated to survive
termination of the Credit Documents) and the Commitments hereunder shall have
terminated:

         7.1      INFORMATION COVENANTS.

         The Borrower will furnish, or cause to be furnished, to the
Administrative Agent and each of the Lenders:

                  (a)      Annual Financial Statements. As soon as available,
         and in any event within 120 days after the close of each fiscal year of
         the Borrower, a consolidated and consolidating balance sheet and income
         statement of the Borrower and its Subsidiaries, as of the end of such
         fiscal year, together with related consolidated and consolidating
         statements of operations, retained earnings, shareholders equity and
         cash flows for such fiscal year, setting forth in comparative form
         consolidated and consolidating figures for the preceding fiscal year,
         all such financial information described above to be in reasonable form
         and detail and audited by independent certified public accountants of
         recognized national standing reasonably acceptable to the
         Administrative Agent and whose opinion shall be to the effect that such
         financial statements have been prepared in accordance with GAAP (except
         for changes with which such accountants concur) and shall not be
         limited as to the scope of the audit or qualified in any manner, except
         for qualifications resulting from changes in GAAP and required or
         approved by the Borrower's independent certified public accountants. It
         is specifically understood and agreed that failure of the annual
         financial statements to be accompanied by an opinion of such
         accountants in form and substance as provided herein shall constitute
         an Event of Default hereunder.

                  (b)      Quarterly Statements. As soon as available, and in
         any event within 60 days after the close of each fiscal quarter (other
         than the fourth fiscal quarter, in which case 120 days after the end
         thereof) of each fiscal year of the Borrower, a consolidated

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         and consolidating balance sheet and income statement of the Borrower
         and its Subsidiaries, as of the end of such quarter, together with
         related consolidated and consolidating statements of operations,
         retained earnings, shareholders' equity and cash flow for such quarter,
         in each case setting forth in comparative form consolidated and
         consolidating figures for the corresponding period of the preceding
         fiscal year, all such financial information described above to be in
         reasonable form and detail and reasonably acceptable to the
         Administrative Agent and accompanied by a certificate of the chief
         financial officer of the Borrower to the effect that such consolidated
         and consolidating statements are true and correct and have been
         prepared in accordance with GAAP, subject to changes resulting from
         audit and normal year-end audit adjustments.

                  (c)      Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of an Authorized Officer of the Borrower substantially in
         the form of Exhibit 7.1(c), (i) demonstrating compliance with the
         financial covenants contained in Section 7.2 by calculation thereof as
         of the end of each such period, (ii) calculating the Interest Coverage
         Ratio of the Borrower and its Subsidiaries for the twelve month period
         ending on the date of such financial statements, (iii) demonstrating
         compliance with any other terms of this Credit Agreement as requested
         by the Administrative Agent and (iv) stating that no Default or Event
         of Default exists, or if any Default or Event of Default does exist,
         specifying the nature and extent thereof and what action the Borrower
         proposes to take with respect thereto. If necessary, the Borrower shall
         deliver financial statements prepared in accordance with GAAP as of the
         Closing Date, to the extent GAAP has changed since the Closing Date, in
         order to show compliance with the terms of this Credit Agreement,
         including Section 7.2. In addition, at the time of any Investment
         pursuant to clause (j) of the definition of Permitted Investments in
         excess of $10,000,000, a certificate of an Authorized Officer of the
         Borrower stating that after giving effect to such Investment on a pro
         forma basis no Default or Event of Default will exist or be continuing
         as a result of such Investment.

                  (d)      Reports. Promptly upon transmission or receipt
         thereof, (a) copies of any public filings and registrations with, and
         reports to or from, the Securities and Exchange Commission, or any
         successor agency, and copies of all financial statements, proxy
         statements, notices and reports as the Borrower or any of its
         Subsidiaries shall send to its shareholders generally and (b) upon the
         written request of the Administrative Agent, all reports and written
         information to and from the United States Environmental Protection
         Agency, or any state or local agency responsible for environmental
         matters, the United States Occupational Health and Safety
         Administration, or any state or local agency responsible for health and
         safety matters, or any successor agencies or authorities concerning
         environmental, health or safety matters.

                  (e)      Notices. Upon an executive officer of a Credit Party
         obtaining knowledge thereof, the Borrower will give written notice to
         the Administrative Agent (a) immediately of the occurrence of an event
         or condition consisting of a Default or Event of Default, specifying
         the nature and existence thereof and what action the Credit Parties
         propose to take with respect thereto, and (b) promptly, but in any
         event within five

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         Business Days, after the occurrence of any of the following with
         respect to any Credit Party: (i) the pendency or commencement of any
         litigation, arbitral or governmental proceeding against a Credit Party
         which if adversely determined would have or could be reasonably
         expected to have a Material Adverse Effect, (ii) the institution of any
         proceedings against a Credit Party with respect to, or the receipt of
         written notice by such Person of potential liability or responsibility
         for violation, or alleged violation, of any federal, state or local
         law, rule or regulation (including but not limited to, Environmental
         Laws), the violation of which would have or could be reasonably
         expected to have a Material Adverse Effect, (iii) the occurrence of an
         event or condition which shall constitute a default or event of default
         under any Indebtedness of a Credit Party in excess of $10,000,000,
         other than Non-Recourse Land Financing, or (iv) any loss of or damage
         to any property of a Credit Party or the commencement of any proceeding
         for the condemnation or other taking of any property of a Credit Party
         having a value of $10,000,000 or more.

                  (f)      ERISA. Upon any of the Credit Parties or any ERISA
         Affiliate obtaining knowledge thereof, the Borrower will give written
         notice to the Administrative Agent promptly (and in any event within
         two Business Days) of: (i) any event or condition, including, but not
         limited to, any Reportable Event, that constitutes, or might reasonably
         lead to, a Termination Event; (ii) with respect to any Multiemployer
         Plan, the receipt of notice as prescribed in ERISA or otherwise of any
         withdrawal liability assessed against the Credit Parties or any of
         their ERISA Affiliates, or of a determination that any Multiemployer
         Plan is in reorganization or insolvent (both within the meaning of
         Title IV of ERISA); (iii) the failure to make full payment on or before
         the due date (including extensions) thereof of all amounts which a
         Credit Party or any ERISA Affiliates is required to contribute to each
         Plan pursuant to its terms and as required to meet the minimum funding
         standard set forth in ERISA and the Code with respect thereto; or (iv)
         any change in the funding status of any Plan that would have or could
         be reasonably expected to have a Material Adverse Effect; together with
         a description of any such event or condition or a copy of any such
         notice and a statement by the principal financial officer of the
         Borrower briefly setting forth the details regarding such event,
         condition, or notice, and the action, if any, which has been or is
         being taken or is proposed to be taken by the Credit Parties with
         respect thereto. Promptly upon request, a Credit Party shall furnish
         the Administrative Agent and each of the Lenders with such additional
         information concerning any Plan as may be reasonably requested,
         including, but not limited to, copies of each annual report/return
         (Form 5500 series), as well as all schedules and attachments thereto
         required to be filed with the Department of Labor and/or the Internal
         Revenue Service pursuant to ERISA and the Code, respectively, for each
         "plan year" (within the meaning of Section 3(39) of ERISA).

                  (g)      Environmental.

                           (i)      Subsequent to a notice from any Governmental
                  Authority where the subject matter of such notice would
                  reasonably cause concern or during the existence of an Event
                  of Default, and upon the written request of the Administrative

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                  Agent, the Credit Parties will furnish or cause to be
                  furnished to the Administrative Agent, at the Credit Parties'
                  expense, a report of an environmental assessment of reasonable
                  scope, form and depth, including, where appropriate, invasive
                  soil or groundwater sampling, by a consultant reasonably
                  acceptable to the Administrative Agent addressing the subject
                  of such notice or, if during the existence of an Event of
                  Default, regarding any release or threat of release of
                  Hazardous Materials on any Real Property and the compliance by
                  the Credit Parties with Environmental Laws. If the Credit
                  Parties fail to deliver such an environmental assessment
                  within sixty (60) days after receipt of such written request,
                  then the Administrative Agent may arrange for same, and the
                  Credit Parties hereby grant to the Administrative Agent and
                  its representatives access to the Real Properties and a
                  license of a scope reasonably necessary to undertake such an
                  assessment (including, where appropriate, invasive soil or
                  groundwater sampling). The reasonable cost of any assessment
                  arranged for by the Administrative Agent pursuant to this
                  provision will be payable by the Credit Parties on demand.

                           (ii)     Each Credit Party will conduct and complete
                  all investigations, studies, sampling and testing and all
                  remedial, removal and other actions necessary to address all
                  Hazardous Materials on, from, or affecting any Real Property
                  to the extent necessary to be in compliance with all
                  Environmental Laws and all other applicable federal, state,
                  and local laws, regulations, rules and policies and with the
                  orders and directives of all Governmental Authorities
                  exercising jurisdiction over such Real Property to the extent
                  any failure would have or could be reasonably expected to have
                  a Material Adverse Effect.

                  (h)      Other Information. As soon as available and in any
         event within 60 days of each fiscal quarter (or within 120 days of the
         fourth fiscal quarter), a "Land Report" and a "Consolidated Sales and
         Construction Activity Report" and with reasonable promptness upon any
         request, such other information regarding the business, properties or
         financial condition of the Credit Parties as the Administrative Agent
         or the Lenders may reasonably request.

         7.2      FINANCIAL COVENANTS.

                  (a)      Debt to Capitalization Ratio. As of the last day of
         each fiscal quarter of the Borrower (beginning with the fiscal quarter
         ending June 30, 2003), the Debt to Capitalization Ratio shall be less
         than or equal to 0.50 to 1.0.

                  (b)      Tangible Net Worth. As of the last day of each fiscal
         quarter of the Borrower (beginning with the fiscal quarter ending June
         30, 2003), Tangible Net Worth shall be greater than or equal to the sum
         of (i) $1,921,826,000, plus (ii) 50% of the cumulative Net Income of
         the Borrower and its Subsidiaries (without deduction for losses) earned
         for each completed fiscal quarter subsequent to June 30, 2003 to the
         date of determination.

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                  (c)      Interest Coverage Ratio. As of the last day of each
         fiscal quarter of the Borrower (beginning with the fiscal quarter
         ending June 30, 2003), the Interest Coverage Ratio shall be greater
         than 2.0 to 1.0.

         7.3      PRESERVATION OF EXISTENCE AND FRANCHISES.

         Except as permitted by Section 8.4, each of the Credit Parties will do
all things necessary to preserve and keep in full force and effect its (a)
existence, rights and franchises and (b) authority, unless failure to preserve
and keep in full force and effect its authority would not have or could not be
reasonably expected to have a Material Adverse Effect.

         7.4      BOOKS AND RECORDS.

         Each of the Credit Parties will keep complete and accurate books and
records of its transactions in accordance with GAAP (including the establishment
and maintenance of appropriate reserves).

         7.5      COMPLIANCE WITH LAW.

         Each of the Credit Parties will materially comply with all material
laws, rules, regulations and orders, and all applicable material restrictions
imposed by all Governmental Authorities, applicable to it and its property
(including, without limitation, Environmental Laws).

         7.6      PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         Each of the Credit Parties will pay, settle or discharge (a) all taxes,
assessments and governmental charges or levies imposed upon it, or upon its
income or profits, or upon any of its properties, before they shall become
delinquent, (b) all lawful claims (including claims for labor, materials and
supplies) which, if unpaid, might give rise to a Lien upon any of its
properties, and (c) all of its other Indebtedness as it shall become due (to the
extent such repayment is not otherwise prohibited by this Credit Agreement);
provided, however, that a Credit Party shall not be required to pay any such
tax, assessment, charge, levy, claim or Indebtedness which is being contested in
good faith by appropriate proceedings and as to which adequate reserves therefor
have been established in accordance with GAAP, unless the failure to make any
such payment (i) would give rise to an immediate right to foreclose or collect
on a Lien securing such amounts or (ii) would have or could be reasonably
expected to have a Material Adverse Effect.

         7.7      INSURANCE.

         Each of the Credit Parties will at all times maintain in full force and
effect insurance (including worker's compensation insurance, liability
insurance, casualty insurance and business interruption insurance) from
insurance companies of recognized national standing, in such amounts, covering
such risks and liabilities and with such deductibles or self-insurance
retentions as are in accordance with normal industry practice.

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         7.8      MAINTENANCE OF PROPERTY.

         Each of the Credit Parties will maintain and preserve its properties,
equipment and other assets in good repair, working order and condition, normal
wear and tear excepted, and will make, or cause to be made, in such properties
and equipment from time to time all repairs, renewals, replacements, extensions,
additions, betterments and improvements thereto as may be needed or proper, to
the extent and in the manner customary for companies in similar businesses,
unless the failure to do so would not have or could not be reasonably expected
to have a Material Adverse Effect.

         7.9      PERFORMANCE OF OBLIGATIONS.

         Each of the Credit Parties will perform in all material respects all of
its obligations under the terms of all material agreements, indentures,
mortgages, security agreements or other debt instruments to which it is a party
or by which it or its property is bound, unless the failure to do so would not
have or could not be reasonably expected to have a Material Adverse Effect.

         7.10     USE OF PROCEEDS.

         The Credit Parties will use the proceeds/availability of the Loans
solely (a) to repay Indebtedness owing under the Existing Credit Agreement, (b)
to provide working capital for the Credit Parties and (c) for general corporate
purposes of the Credit Parties.

         7.11     AUDITS/INSPECTIONS.

         Upon reasonable notice and during normal business hours, each Credit
Party will permit representatives appointed by the Administrative Agent,
including, without limitation, independent accountants, agents, attorneys and
appraisers, to visit and inspect such Credit Party's property, including its
books and records, its accounts receivable and inventory, its facilities and its
other business assets, and to make photocopies or photographs thereof and to
write down and record any information such representative obtains and shall
permit the Administrative Agent or its representatives to investigate and verify
the accuracy of information provided to the Lenders. The Borrower shall pay the
Administrative Agent's reasonable costs of any inspections or investigations
conducted following the occurrence and during the continuance of an Event of
Default.

         7.12     ADDITIONAL CREDIT PARTIES.

         At the time any Person becomes a Material Subsidiary of a Credit Party,
the Borrower shall so notify the Administrative Agent and promptly thereafter
(but in any event within 30 days after the date thereof or within such longer
period of time as agreed to by the Administrative Agent) shall cause such Person
to (a) execute a Supplemental Guaranty and (b) deliver to the Administrative
Agent such other documentation as the Administrative Agent may reasonably
request, including, without limitation, certified copies of resolutions and
other corporate, limited liability company or partnership documents and
favorable opinions of counsel to such Person, all in form, content and scope
reasonably satisfactory to the Administrative Agent. The Administrative Agent
and the Lenders agree that upon any Subsidiary (other than a REIT) ceasing to be
a Material

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Subsidiary, upon receipt by the Administrative Agent of evidence thereof, the
Administrative Agent shall, upon the Borrower's written request, execute, at the
Borrower's expense, such release documentation as is necessary to release such
Subsidiary from its Guaranty Obligations hereunder and such Subsidiary shall no
longer be a Guarantor.

         7.13     REIT REQUIREMENTS.

         Notwithstanding anything to the contrary contained in Section 7.12, (i)
each REIT will at all times be a Guarantor and will not be released from its
obligations under its Guaranty if it shall cease to be a Material Subsidiary and
(ii) each REIT shall enter into the Intercreditor Agreement as a subsidiary
creditor.

                                   SECTION 8

                               NEGATIVE COVENANTS

         The Borrower hereby covenants and agrees that so long as this Credit
Agreement is in effect and until the Loans, together with interest, fees and
other obligations then due and payable hereunder, have been paid in full (other
than any such obligations which by the terms thereof are stated to survive
termination of the Credit Documents) and the Commitments hereunder shall have
terminated:

         8.1      INDEBTEDNESS.

         No Credit Party will contract, create, incur, assume or permit to exist
any Indebtedness, except:

                  (a)      Indebtedness arising under this Credit Agreement and
         the other Credit Documents;

                  (b)      Indebtedness existing as of the Closing Date as
         referenced in Section 6.10 (and renewals, refinancings, replacements or
         extensions thereof on terms and conditions no more favorable, in the
         aggregate, to the applicable creditor than such existing Indebtedness
         and in a principal amount not in excess of that outstanding as of the
         date of such renewal, refinancing, replacement or extension);

                  (c)      Indebtedness in respect of current accounts payable
         and accrued expenses incurred in the ordinary course of business and to
         the extent not current, accounts payable and accrued expenses that are
         subject to bona fide dispute;

                  (d)      Indebtedness owing by a Credit Party to another
         Credit Party;

                  (e)      Indebtedness arising from Hedging Agreements entered
         into in the ordinary course of business and not for speculative
         purposes;

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                  (f)      Indebtedness arising from judgments that do not cause
         an Event of Default;

                  (g)      secured Indebtedness in connection with Non-Recourse
         Land Financing existing on the Closing Date and Non-Recourse Land
         Financing with respect to real property acquired after the Closing
         Date;

                  (h)      Indebtedness owing by a Credit Party to a REIT;
         provided that (i) such REIT shall be a Guarantor, (ii) such REIT shall
         have entered into the Intercreditor Agreement, (iii) such REIT shall be
         in compliance with the terms of Section 8.14 and (iv) such REIT shall
         qualify as a real estate investment trust under applicable tax laws;

                  (i)      other secured Indebtedness up to $200,000,000, in the
         aggregate, at any one time outstanding; and

                  (j)      other unsecured Indebtedness so long as, after giving
         effect thereto, the Borrower is in compliance with the financial
         covenants set forth in Section 7.2.

         8.2      LIENS.

         No Credit Party will contract, create, incur, assume or permit to exist
any Lien with respect to any of its property or assets of any kind (whether real
or personal, tangible or intangible), whether now owned or after acquired,
except for Permitted Liens.

         8.3      NATURE OF BUSINESS.

         No Credit Party will materially alter the character of its business
from that conducted as of the Closing Date or engage in any business other than
the business conducted as of the Closing Date and activities which are
substantially similar or related thereto or logical extensions thereof.

         8.4      CONSOLIDATION AND MERGER.

         No Credit Party will enter into any transaction of merger or
consolidation or liquidate, wind up or dissolve itself; provided that a Credit
Party may merge or consolidate with or into another Person if the following
conditions are satisfied:

                  (a)      the Administrative Agent is given prior written
         notice of such action;

                  (b)      the Person formed by such consolidation or into which
         such Credit Party is merged shall either (i) be a Credit Party or (ii)
         expressly assume in writing all of the obligations of a Credit Party
         under the Credit Documents; provided that if the transaction is between
         the Borrower and another Person, the Borrower must be the surviving
         entity;

                  (c)      immediately after giving effect to such transaction,
         no Default or Event of Default shall have occurred and be continuing;
         and

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                  (d)      the Borrower delivers to the Administrative Agent an
         opinion of counsel stating that such consolidation or merger and any
         written agreement entered into in connection therewith, comply with
         this Section 8.4.

         8.5      SALE OR LEASE OF ASSETS.

         No Credit Party will convey, sell, lease, transfer or otherwise dispose
of, in one transaction or a series of transactions, all or any part of its
business or assets whether now owned or hereafter acquired, including, without
limitation, inventory, receivables, equipment, real property interests (whether
owned or leasehold), and securities, other than (a) any inventory sold or
otherwise disposed of in the ordinary course of business; (b) the sale, lease,
transfer or other disposal by a Credit Party of any or all of its assets to
another Credit Party; (c) obsolete, slow-moving, idle or worn-out assets no
longer used or useful in its business; (d) the transfer of assets which
constitute a Permitted Investment; (e) any Equity Issuance by the Borrower; (f)
the sale, lease or sublease of real property interests in the ordinary course of
business; (g) the sale, transfer or other disposal for fair market value of all
or substantially all of the Capital Stock or assets of a Guarantor to a Person
that is not a Credit Party; provided that (i) after giving effect to any such
sale, transfer or other disposal, the Credit Parties shall be in compliance with
all of the terms and conditions of this Credit Agreement and the other Credit
Documents, including, without limitation, the terms of Section 7.12 and the
definition of Material Subsidiary, (ii) the net cash proceeds from any such
sale, transfer or other disposal shall be (A) first, applied to all outstanding
Reimbursement Obligations, (B) second, applied to all outstanding Swingline
Loans (first to Floating Rate Loans and then to Index Rate Swingline Loans in
direct order of Interest Period maturities), (C) third, applied to all
outstanding Revolving Loans (first to Floating Rate Loans and then to Eurodollar
Loans in direct order of Interest Period maturities) and (D) fourth, reinvested
in the business of the Credit Parties or used by the Credit Parties in the
ordinary course of business within 90 days after the closing of such transfer,
sale or other disposal and (iii) promptly after the net cash proceeds from any
such sale, transfer or other disposal have been so utilized, the Borrower shall
deliver to the Administrative Agent a certificate executed by an Authorized
Officer certifying on behalf of the Borrower (A) as to the amount of such net
cash proceeds and (B) that such net cash proceeds have been reinvested in
accordance with the terms of the foregoing clause (ii), and (h) other sales of
assets in the ordinary course of business so long as, after giving effect
thereto, the Borrower is in compliance with the financial covenants set forth in
Section 7.2.

         8.6      SALE AND LEASEBACK.

         No Credit Party will enter into any Sale and Leaseback Transaction,
unless each of the following conditions is satisfied: (a) such Credit Party
shall promptly give notice of such sale or transfer to the Administrative Agent;
(b) the net proceeds of such sale or transfer are at least equal to the fair
value (as determined in good faith by a resolution of such Credit Party's board
of directors, a copy of which has been delivered by the Credit Party to the
Administrative Agent) of the property which is the subject of such sale or
transfer; and (c) such Credit Party shall apply, within 365 days after the
effective date of such sale or transfer, or shall have committed within one year
after such effective date to apply, an amount at least equal to the net proceeds
of the sale or

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transfer of the property which is the subject of such sale or transfer to (A)
the repayment of the Loans or (B) the repayment of other Indebtedness owing by
any Credit Party or (C) the purchase of property by such Credit Party
substantially similar to the property that was the subject of such sale or
transfer or (D) in part to such repayment and in part to such purchase or
property; provided, however, that if such Credit Party commits to apply an
amount at least equal to the net proceeds of a sale or transfer to the repayment
of the Loans, the repayment of other Indebtedness or the purchase of property,
such commitment shall be made in a written instrument delivered by such Credit
Party to the Administrative Agent and shall require such Credit Party to so
apply said amount within 18 months after the effective date of such sale or
transfer, and it shall constitute a breach of the provisions of this Section 8.6
if such Credit Party shall fail so to apply said amount in satisfaction of such
commitment.

         8.7      ADVANCES, INVESTMENTS AND LOANS.

         No Credit Party will make any Investments except for Permitted
Investments.

         8.8      RESTRICTED PAYMENTS.

         No Credit Party will, directly or indirectly, use proceeds of Loans to
pay dividends or make any other distribution (excluding repurchases of shares of
Capital Stock) upon any shares of its Capital Stock of any class.

         8.9      TRANSACTIONS WITH AFFILIATES.

         No Credit Party will enter into any material transaction or series of
transactions, whether or not in the ordinary course of business, with any
officer, director, shareholder, Subsidiary or Affiliate other than on terms and
conditions substantially as favorable as would be obtainable in a comparable
arm's-length transaction with a Person other than an officer, director,
shareholder, Subsidiary or Affiliate.

         8.10     FISCAL YEAR; ORGANIZATIONAL DOCUMENTS.

         No Credit Party will (a) change its fiscal year or (b) in any manner
that would reasonably be likely to adversely affect the rights of the Lenders,
change its articles or certificate of incorporation or its bylaws, except as
permitted by Section 8.4.

         8.11     NO LIMITATIONS.

         No Credit Party will directly or indirectly, create or otherwise cause,
incur, assume, suffer or permit to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any such Person to (a)
pay dividends or make any other distribution on any of such Person's Capital
Stock, (b) pay any Indebtedness owed to any other Credit Party, (c) make loans
or advances to any other Credit Party or (d) transfer any of its property to any
other Credit Party, except for encumbrances or restrictions existing under or by
reason of (i) customary non-assignment or net worth provisions in any lease
governing a leasehold interest, (ii) any agreement or

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other instrument of a Person existing at the time it becomes a Subsidiary of a
Credit Party; provided that such encumbrance or restriction is not applicable to
any other Person, or any property of any other Person, other than such Person
becoming a Subsidiary of a Credit Party and was not entered into in
contemplation of such Person becoming a Subsidiary of a Credit Party, and (iii)
this Credit Agreement and the other Credit Documents.

         8.12     NO OTHER NEGATIVE PLEDGES.

         No Credit Party will enter into, assume or become subject to any
agreement prohibiting or otherwise restricting the creation or assumption of any
Lien upon its properties or assets, whether now owned or hereafter acquired, or
requiring the grant of any security for such obligation if security is given for
some other obligation except as set forth in (a) the Credit Documents and (b)
any bond indenture or equivalent instrument (or any amendment or supplement
thereto) to which such Credit Party is now or hereafter a party.

         8.13     OTHER INDEBTEDNESS.

         No Credit Party will, if any Event of Default has occurred and is
continuing or would be directly or indirectly caused as a result thereof, (a)
with respect to any Indebtedness (other than the Indebtedness under the Credit
Documents) of such Credit Party, shorten the final maturity or average life to
maturity or require any payment to be made sooner than originally scheduled or
increase the interest rate applicable thereto or change any subordination
provision thereof or (b) make (or give any notice with respect thereto) any
voluntary or optional payment or prepayment, redemption, acquisition for value
or defeasance of (including without limitation, by way of depositing money or
securities with the trustee with respect thereto before due for the purpose of
paying when due), refund, refinance or exchange of any Indebtedness (other than
the Indebtedness under the Credit Documents) of such Credit Party.

         8.14     RESTRICTIONS ON THE REITs.

         No REIT will engage in any activities or operations whatsoever other
than (a) general administrative and other functions permitted by law, (b)
possessing any promissory notes that evidence the Indebtedness permitted by
Section 8.1(h) and receiving payments of principal and interest on such
promissory notes, (c) possessing any other "real estate assets" within the
meaning of Section 856(c)(5) of the Code for purposes of satisfying the
requirements for a real estate investment trust under applicable tax laws, (d)
making or consenting to dividends and distributions to a Credit Party and (e)
notwithstanding the foregoing, any other functions or other activities that are
now or may become required or permitted of a REIT for purposes of satisfying the
requirements for a real estate investment trust under applicable tax laws.
Notwithstanding the terms of Sections 8.1 and 8.2, (i) no REIT will incur any
Indebtedness other than (A) its obligations under the Guaranty, (B) accounts
payable incurred for general administrative and other functions of such REIT
permitted by law in an amount not to exceed $100,000 at any time outstanding,
and (C) Indebtedness to the Borrower or any other Credit Party and (ii) no REIT
will contract, create, incur, assume or permit to exist any Lien with respect to
any of its property or assets of any kind (whether real or personal, tangible or
intangible), whether now owned or after acquired, except for Liens in

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favor of the Administrative Agent and Permitted Liens relating to the possession
and operation of its real property and other assets.

                                   SECTION 9

                                EVENTS OF DEFAULT

         9.1      EVENTS OF DEFAULT.

         An Event of Default shall exist upon the occurrence, and during the
continuation, of any of the following specified events (each an "Event of
Default"):

                  (a)      Payment. The Borrower shall default in the payment
         (i) when due of any principal of any of the Loans or any Reimbursement
         Obligations or (ii) within five Business Days of when due of any
         interest on the Loans or any Reimbursement Obligations or any fees or
         other amounts owing hereunder, under any of the other Credit Documents
         or in connection herewith.

                  (b)      Representations. Any representation, warranty or
         statement made or deemed to be made by any Credit Party herein, in any
         of the other Credit Documents, or in any statement or certificate
         delivered or required to be delivered pursuant hereto or thereto shall
         prove untrue in any material respect on the date as of which it was
         made or deemed to have been made.

                  (c)      Covenants. The Borrower shall:

                           (i)      default in the due performance or observance
                  of any term, covenant or agreement contained in Sections 7.2,
                  7.10 or 8.1 through 8.14 inclusive;

                           (ii)     default in the due performance or observance
                  of any term, covenant or agreement contained in Sections 7.1,
                  7.3, 7.5 or 7.11 and such default shall continue unremedied
                  for a period of five Business Days after the earlier of the
                  Borrower becoming aware of such default or notice thereof
                  given by the Administrative Agent; or

                           (iii)    default in the due performance or observance
                  by it of any term, covenant or agreement (other than those
                  referred to in subsections (a), (b) or (c)(i) or (c)(ii) of
                  this Section 9.1) contained in this Credit Agreement and such
                  default shall continue unremedied for a period of at least 30
                  days after the earlier of the Borrower becoming aware of such
                  default or written notice thereof given by the Administrative
                  Agent.

                  (d)      Other Credit Documents. (i) Any Credit Party shall
         default in the due performance or observance of any term, covenant or
         agreement in any of the other Credit Documents and such default shall
         continue unremedied for a period of at least 30 days

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         after the earlier of a Credit Party becoming aware of such default or
         written notice thereof given by the Administrative Agent, or (ii) any
         Credit Document shall fail to be in full force and effect or any Credit
         Party shall so assert or any Credit Document shall fail to give the
         Administrative Agent and the Lenders the security interests, liens,
         rights, powers and privileges purported to be created thereby.

                  (e)      Guaranties. Any Guaranty or any provision thereof
         shall cease to be in full force and effect, or any Guarantor thereunder
         or any Person acting by or on behalf of such Guarantor shall deny or
         disaffirm such Guarantor's obligations under such Guaranty.

                  (f)      Bankruptcy, etc. The occurrence of any of the
         following: (i) a court or governmental agency having jurisdiction shall
         enter a decree or order for relief in respect of any Credit Party or
         any of its Subsidiaries in an involuntary case under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         or appoint a receiver, liquidator, assignee, custodian, trustee,
         sequestrator or similar official of any Credit Party or any of its
         Subsidiaries or for any substantial part of its property or ordering
         the winding up or liquidation of its affairs; or (ii) an involuntary
         case under any applicable bankruptcy, insolvency or other similar law
         now or hereafter in effect is commenced against any Credit Party or any
         of its Subsidiaries and such petition remains unstayed and in effect
         for a period of 60 consecutive days; or (iii) any Credit Party or any
         of its Subsidiaries shall commence a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or consent to the entry of an order for relief in an
         involuntary case under any such law, or consent to the appointment or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official of such Person or any
         substantial part of its property or make any general assignment for the
         benefit of creditors; or (iv) any Credit Party or any of its
         Subsidiaries shall admit in writing its inability to pay its debts
         generally as they become due or any action shall be taken by such
         Person in furtherance of any of the aforesaid purposes.

                  (g)      Defaults under Other Agreements.

                           (i)      A Credit Party shall default in the due
                  performance or observance (beyond the applicable grace period
                  with respect thereto) of any material obligation or condition
                  of any contract or lease material to the Credit Parties taken
                  as a whole to which it is a party or by which it or its
                  property is bound; or

                           (ii)     With respect to any Indebtedness of a Credit
                  Party the principal amount of which is in excess of
                  $10,000,000 (other than Indebtedness outstanding under this
                  Credit Agreement and Non-Recourse Land Financing), (A) any
                  such Credit Party shall (x) default in any payment (beyond the
                  applicable grace period with respect thereto, if any) with
                  respect to any such Indebtedness, or (y) default (after giving
                  effect to any applicable grace period) in the observance or
                  performance relating to such Indebtedness or contained in any
                  instrument or agreement evidencing, securing or relating
                  thereto, or any other event or condition shall occur or
                  condition exist, the effect of which default or other event or
                  condition is to cause

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                  the holder or holders of such Indebtedness (or trustee or
                  agent on behalf of such holders) to cause (determined without
                  regard to whether any notice or lapse of time is required) any
                  such Indebtedness to become due prior to its stated maturity;
                  (B) any such Indebtedness shall be declared due and payable,
                  or required to be prepaid other than by a regularly scheduled
                  required prepayment prior to the stated maturity thereof; or
                  (C) any such Indebtedness shall mature and remain unpaid.

                  (h)      Judgments. Any judgment, order, or decree (including,
         without limitation, any judgment, order, or decree with respect to any
         litigation disclosed pursuant to the Credit Documents) shall be entered
         against any one or more of the Credit Parties involving a liability of
         $25,000,000 or more (to the extent not paid or covered by insurance
         provided by a carrier who has acknowledged coverage and in any event
         not including any Non-Recourse Land Financing), and such judgment,
         order or decree (i) is the subject of any enforcement proceeding
         commenced by any creditor or (ii) shall continue unsatisfied,
         undischarged and unstayed for a period ending on the first to occur of
         (A) the last day on which such judgment, order or decree becomes final
         and unappealable or (B) 30 days.

                  (i)      ERISA. The occurrence of any of the following events
         or conditions: (A) any "accumulated funding deficiency," as such term
         is defined in Section 302 of ERISA and Section 412 of the Code, whether
         or not waived, shall exist with respect to any Plan, or any Lien shall
         arise on the assets of any Credit Party, any of its Subsidiaries or any
         ERISA Affiliate in favor of the PBGC or a Plan; (B) a Termination Event
         shall occur with respect to a Single Employer Plan, which is, in the
         reasonable opinion of the Administrative Agent, likely to result in the
         termination of such Plan for purposes of Title IV of ERISA; (C) a
         Termination Event shall occur with respect to a Multiemployer Plan or
         Multiple Employer Plan, which is, in the reasonable opinion of the
         Administrative Agent, likely to result in (i) the termination of such
         Plan for purposes of Title IV of ERISA, or (ii) any Credit Party, any
         of its Subsidiaries or any ERISA Affiliate incurring any liability in
         connection with a withdrawal from, reorganization of (within the
         meaning of Section 4241 of ERISA), or insolvency (within the meaning of
         Section 4245 of ERISA) of such Plan; or (D) any prohibited transaction
         (within the meaning of Section 406 of ERISA or Section 4975 of the
         Code) or breach of fiduciary responsibility shall occur which may
         subject any Credit Party, any of its Subsidiaries or any ERISA
         Affiliate to any liability under Sections 406, 409, 502(i), or 502(l)
         of ERISA or Section 4975 of the Code, or under any agreement or other
         instrument pursuant to which any Credit Party, any of its Subsidiaries
         or any ERISA Affiliate has agreed or is required to indemnify any
         person against any such liability.

                  (j)      Ownership. There shall occur a Change of Control.

         9.2      ACCELERATION; REMEDIES.

         Upon the occurrence and during the continuance of an Event of Default,
and at any time thereafter unless and until such Event of Default has been
waived in writing by the Required

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<PAGE>

Lenders (or the Lenders as may be required hereunder), the Administrative Agent
shall, upon the request and direction of the Required Lenders, by written notice
to the Borrower, take the following actions without prejudice to the rights of
the Administrative Agent or any Lender or LC Issuer to enforce its claims
against the Credit Parties, except as otherwise specifically provided for
herein:

                  (a)      Termination of Commitments. Declare the Commitments
         terminated whereupon the Commitments and the obligation and power of
         the LC Issuers to issue Facility LCs shall be immediately terminated.

                  (b)      Acceleration of Loans. Declare the unpaid principal
         of and any accrued interest in respect of all Loans and any and all
         other indebtedness or obligations of any and every kind owing by a
         Credit Party to any of the Lenders hereunder to be due whereupon the
         same shall be immediately due and payable without presentment, demand,
         protest or other notice of any kind, all of which are hereby waived by
         the Borrower.

                  (c)      Facility LC Collateral Account. Demand that the
         Borrower pay, and the Borrower shall be and become thereby
         unconditionally obligated to pay, to the Administrative Agent an amount
         in immediately available funds, which funds shall be held in the
         Facility LC Collateral Account, equal to the difference of (x) the
         amount of Facility LC Obligations at such time, less (y) the amount (if
         any) on deposit in the LC Collateral Account at such time which is free
         and clear of all rights and claims of third parties and has not been
         applied against the Credit Party Obligations (such difference, the
         "Collateral Shortfall Amount").

                  (d)      Enforcement of Rights. Enforce any and all rights and
         interests created and existing under the Credit Documents, including,
         without limitation, all rights and remedies against a Guarantor and all
         rights of set-off.

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(f) shall occur, then (i) the Commitments and the obligation and power of the
LC Issuers to issue Facility LCs shall automatically terminate, (ii) all Loans,
all accrued interest in respect thereof, all accrued and unpaid fees and other
Credit Party Obligations shall immediately become due and payable and (iii) the
Borrower will also forthwith, and without any notice or act, pay to the
Administrative Agent the Collateral Shortfall Amount, which funds shall be
deposited in the Facility LC Collateral Account, all without the giving of any
notice or other action by the Administrative Agent or the Lenders, which notice
or other action is expressly waived by the Borrower.

Notwithstanding the fact that enforcement powers reside primarily with the
Administrative Agent, each Lender has, to the extent permitted by law, a
separate right of payment and shall be considered a separate "creditor" holding
a separate "claim" within the meaning of Section 101(5) of the Bankruptcy Code
or any other insolvency statute.

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<PAGE>

         9.3      FACILITY LC COLLATERAL ACCOUNT.

                  (a)      If at any time while any Event of Default is
         continuing, the Administrative Agent determines that the Collateral
         Shortfall Amount at such time is greater than zero, the Administrative
         Agent may, and at the direction of the Required Lenders shall, make
         demand on the Borrower to pay, and the Borrower will, forthwith upon
         such demand and without any further notice or act, pay to the
         Administrative Agent the Collateral Shortfall Amount, which funds shall
         be deposited in the Facility LC Collateral Account.

                  (b)      The Administrative Agent may, at any time or from
         time to time after funds are deposited in the Facility LC Collateral
         Account, apply such funds to the payment of the Credit Party
         Obligations and any other amounts as shall from time to time have
         become due and payable by the Borrower to the Lenders or LC Issuers
         under the Credit Documents.

                  (c)      At any time while any Event of Default is continuing,
         neither the Borrower nor any Person claiming on behalf of or through
         the Borrower shall have any right to withdraw any of the funds held in
         the Facility LC Collateral Account. After all of the Credit Party
         Obligations have been indefeasibly paid in full and the Commitments
         have been terminated and no Facility LCs remain outstanding, any funds
         remaining in the Facility LC Collateral Account shall be returned by
         the Administrative Agent to the Borrower or paid to whomever may be
         legally entitled thereto at such time.

                  (d)      If at any time at which funds are being held in the
         Facility LC Collateral Account there exists no Event of Default, or the
         Required Lenders (or the Lenders as may be required hereunder) have
         waived in writing any such Event of Default, the Administrative Agent
         shall, upon written request of the Borrower, return such funds to the
         Borrower.

         9.4      ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT.

         Notwithstanding any other provisions of this Credit Agreement, after
the occurrence and during the continuance of an Event of Default, all amounts
collected or received by the Administrative Agent or any Lender on account of
amounts outstanding under any of the Credit Documents shall be paid over or
delivered as follows:

                  FIRST, to the payment of all reasonable out-of-pocket costs
         and expenses (including without limitation reasonable attorneys' fees)
         of the Administrative Agent or any of the Lenders or LC Issuers in
         connection with enforcing the rights of the Lenders or LC Issuers under
         the Credit Documents;

                  SECOND, to payment of any fees owed to the Administrative
         Agent or any Lender or LC Issuer;

                  THIRD, to the payment of all accrued interest payable to the
         Lenders hereunder and all other obligations (other than those
         obligations to be paid pursuant to clause "FOURTH" or clause "FIFTH"
         below) which shall have become due and payable under the Credit
         Documents and not repaid pursuant to clauses "FIRST" and "SECOND"
         above;

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<PAGE>

                  FOURTH, to the payment of the outstanding principal amount of
         the Loans and Reimbursement Obligations, pro rata as set forth below;

                  FIFTH, to the Administrative Agent for deposit in the Facility
         LC Collateral Account to the extent of any Collateral Shortfall Amount;
         and

                  SIXTH, to the payment of the surplus, if any, to whomever may
         be lawfully entitled to receive such surplus.

In carrying out the foregoing, (a) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next
succeeding category and (b) each of the Lenders shall receive an amount equal to
its pro rata share (based on the proportion that the then outstanding Loans held
by such Lender bears to the aggregate then outstanding Loans) of amounts
available to be applied.

                                   SECTION 10

                                AGENCY PROVISIONS

         10.1     APPOINTMENT; NATURE OF RELATIONSHIP.

         Bank One is hereby appointed by each of the Lenders as its contractual
representative (herein referred to as the "Administrative Agent") hereunder and
under each other Credit Document, and each of the Lenders irrevocably authorizes
the Administrative Agent to act as the contractual representative of such Lender
with the rights and duties expressly set forth herein and in the other Credit
Documents. The Administrative Agent agrees to act as such contractual
representative upon the express conditions contained in this Section 10.
Notwithstanding the use of the defined term "Administrative Agent," it is
expressly understood and agreed that the Administrative Agent shall not have any
fiduciary responsibilities to any Lender by reason of this Agreement or any
other Credit Document and that the Administrative Agent is merely acting as the
contractual representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Credit Documents. In its
capacity as the Lenders' contractual representative, the Agent (i) does not
hereby assume any fiduciary duties to any of the Lenders, (ii) is a
"representative" of the Lenders within the meaning of the term "secured party"
as defined in the Illinois Uniform Commercial Code and (iii) is acting as an
independent contractor, the rights and duties of which are limited to those
expressly set forth in this Agreement and the other Credit Documents. Each of
the Lenders hereby agrees to assert no claim against the Administrative Agent on
any agency theory or any other theory of liability for breach of fiduciary duty,
all of which claims each Lender hereby waives.

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         10.2     POWERS.

         The Administrative Agent shall have and may exercise such powers under
the Credit Documents as are specifically delegated to the Administrative Agent
by the terms of each thereof, together with such powers as are reasonably
incidental thereto. The Administrative Agent shall have no implied duties to the
Lenders, or any obligation to the Lenders to take any action thereunder except
any action specifically provided by the Credit Documents to be taken by the
Administrative Agent.

         10.3     GENERAL IMMUNITY.

         Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be liable to the Borrower, the Lenders or any Lender
or LC Issuer for any action taken or omitted to be taken in good faith by it or
them hereunder or under any other Credit Document or in connection herewith or
therewith except to the extent such action or inaction is determined in a final
non-appealable judgment by a court of competent jurisdiction to have arisen from
the gross negligence or willful misconduct of such Person or from breach of such
Person's express obligations under this Agreement.

         10.4     NO RESPONSIBILITY FOR LOANS, RECITALS, ETC.

         Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be responsible for or have any duty to ascertain,
inquire into, or verify (a) any statement, warranty or representation made in
connection with any Credit Document or any borrowing hereunder; (b) the
performance or observance of any of the covenants or agreements of any obligor
under any Credit Document, including, without limitation, any agreement by an
obligor to furnish information directly to each Lender; (c) the satisfaction of
any condition specified in Section 5, except receipt of items required to be
delivered solely to the Administrative Agent; (d) the existence or possible
existence of any Event of Default or Default (other than an Event of Default
under Section 9.1(a)); (e) the validity, enforceability, effectiveness,
sufficiency or genuineness of any Credit Document or any other instrument or
writing furnished in connection therewith; (f) the value, sufficiency, creation,
perfection or priority of any Lien in any collateral security; or (g) the
financial condition of the Borrower or any Guarantor or of any of the Borrower's
or any such Guarantor's respective Subsidiaries. The Administrative Agent shall
have no duty to disclose to the Lenders information that is not required to be
furnished by the Borrower to the Administrative Agent at such time, but is
voluntarily furnished by the Borrower to the Administrative Agent (either in its
capacity as Administrative Agent or in its individual capacity).

         10.5     ACTION ON INSTRUCTIONS OF LENDERS.

         The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, hereunder and under any other Credit
Document in accordance with written instructions signed by the Required Lenders,
and such instructions and any action taken or failure to act pursuant thereto
shall be binding on all of the Lenders. The Lenders hereby acknowledge that the
Administrative Agent shall be under no duty to take any discretionary action
permitted to be taken by it pursuant to the provisions of this Agreement or any
other Credit Document unless

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it shall be requested in writing to do so by the Required Lenders. The
Administrative Agent shall be fully justified in failing or refusing to take any
action hereunder and under any other Credit Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.

         10.6     EMPLOYMENT OF AGENTS AND COUNSEL.

         The Administrative Agent may execute any of its duties as
Administrative Agent hereunder and under any other Credit Document by or through
employees, agents, and attorneys-in-fact and shall not be answerable to the
Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Administrative Agent shall be entitled
to advice of counsel concerning the contractual arrangement between the
Administrative Agent and the Lenders and all matters pertaining to the
Administrative Agent's duties hereunder and under any other Credit Document.

         10.7     RELIANCE ON DOCUMENTS; COUNSEL.

         The Administrative Agent shall be entitled to rely upon any Note,
notice, consent, certificate, affidavit, letter, telegram, statement, paper or
document believed by it to be genuine and correct and to have been signed or
sent by the proper person or persons, and, in respect to legal matters, upon the
opinion of counsel selected by the Administrative Agent, which counsel may be
employees of the Administrative Agent.

         10.8     ADMINISTRATIVE AGENT'S REIMBURSEMENT AND INDEMNIFICATION.

         The Lenders agree to reimburse and indemnify the Administrative Agent
ratably in proportion of their respective Pro Rata Shares (i) for any amounts
not reimbursed by the Borrower for which the Administrative Agent is entitled to
reimbursement by the Borrower under the Credit Documents, (ii) for any other
expenses incurred by the Administrative Agent on behalf of the Lenders, in
connection with the preparation, execution, delivery, administration and
enforcement of the Credit Documents (including, without limitation, for any
expenses incurred by the Administrative Agent in connection with any dispute
between the Administrative Agent and any Lender or between two or more of the
Lenders) and (iii) for any liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against the
Administrative Agent in any way relating to or arising out of the Credit
Documents or any other document delivered in connection therewith or the
transactions contemplated thereby (including, without limitation, for any such
amounts incurred by or asserted against the Administrative Agent in connection
with any dispute between the Administrative Agent and any Lender or between two
or more of the Lenders), or the enforcement of any of the terms of the Credit
Documents or of any such other documents, provided that (i) no Lender shall be
liable for any of the foregoing to the extent any of the foregoing is found in a
final non-appealable judgment by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct

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of the Administrative Agent and (ii) any indemnification required pursuant to
Section 3.13(b)(iv) shall, notwithstanding the provisions of this Section 10.8,
be paid by the relevant Lender in accordance with the provisions thereof. The
obligations of the Lenders under this Section 10.8 shall survive payment of the
Obligations and termination of this Agreement.

         10.9     NOTICE OF DEFAULT.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Event of Default or Default hereunder (other
than an Event of Default under Section 9.1(a)) unless the Administrative Agent
has received written notice from a Lender or the Borrower referring to this
Agreement describing such Event of Default or Default and stating that such
notice is a "notice of default." In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders.

         10.10    RIGHTS AS A LENDER.

         In the event the Administrative Agent is a Lender, the Administrative
Agent shall have the same rights and powers hereunder and under any other Credit
Document with respect to its Commitments and its Loans as any Lender and may
exercise the same as though it were not the Administrative Agent, and the term
"Lender" or "Lenders" shall, at any time when the Administrative Agent is a
Lender, unless the context otherwise indicates, include the Administrative Agent
in its individual capacity. The Administrative Agent and its Affiliates may
accept deposits from, lend money to, and generally engage in any kind of trust,
debt, equity or other transaction, in addition to those contemplated by this
Agreement or any other Credit Document, with the Borrower or any of its
Subsidiaries in which the Borrower or such Subsidiary is not restricted hereby
from engaging with any other Person.

         10.11    LENDER CREDIT DECISION.

         Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent, the Arranger or any other Lender and
based on the financial statements prepared by the Borrower and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement and the other Credit
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent, the Arranger or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement and the other Credit Documents.

         10.12    SUCCESSOR ADMINISTRATIVE AGENT.

         The Administrative Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower, such resignation to be effective
upon the appointment of a successor Administrative Agent or, if no successor
Administrative Agent has been appointed, sixty (60) days after the retiring
Administrative Agent gives notice of its intention to resign. The

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Administrative Agent may be removed at any time with or without cause by written
notice received by the Administrative Agent from the Required Lenders, such
removal to be effective on the date specified by the Required Lenders, provided
that, as long as no Event of Default has occurred that is continuing, such
removal shall be subject to the approval of the Borrower, not to be unreasonably
withheld or delayed. Upon any such resignation or removal, the Required Lenders
shall have the right to appoint, on behalf of the Borrower and the Lenders, a
successor Administrative Agent, provided that, as long as no Event of Default
has occurred that is continuing, the appointment of such successor
Administrative Agent shall be subject to the approval of the Borrower, not to be
unreasonably withheld or delayed. If no successor Administrative Agent shall
have been so appointed by the Required Lenders within sixty (60) days after the
resigning Administrative Agent's giving notice of its intention to resign, then
the resigning Administrative Agent may appoint, on behalf of the Borrower and
the Lenders, a successor Administrative Agent, provided that, as long as no
Event of Default has occurred that is continuing, the appointment of such
successor Administrative Agent shall be subject to the approval of the Borrower,
not to be unreasonably withheld or delayed. Notwithstanding the previous
sentence, the Administrative Agent may at any time without the consent of the
Borrower or any Lender, appoint any of its Affiliates which is a commercial bank
as a successor Administrative Agent hereunder. If the Administrative Agent has
resigned or been removed and no successor Administrative Agent has been
appointed, the Lenders may perform all the duties of the Administrative Agent
hereunder and the Borrower shall make all payments in respect of the Obligations
to the applicable Lender and for all other purposes shall deal directly with the
Lenders. No successor Administrative Agent shall be deemed to be appointed
hereunder until such successor Administrative Agent has accepted the
appointment. Any such successor Administrative Agent shall be a commercial bank
having capital and retained earnings of at least $100,000,000. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the resigning or removed Administrative Agent. Upon the effectiveness of the
resignation or removal of the Administrative Agent, the resigning or removed
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the Credit Documents. After the effectiveness of the
resignation or removal of an Administrative Agent, the provisions of this
Section 10 shall continue in effect for the benefit of such Administrative Agent
in respect of any actions taken or omitted to be taken by it while it was acting
as the Administrative Agent hereunder and under the other Credit Documents. In
the event that there is a successor to the Administrative Agent by merger, or
the Administrative Agent assigns its duties and obligations to an Affiliate
pursuant to this Section 10.12, then the term "Prime Rate" as used in this
Agreement shall mean the prime rate, base rate or other analogous rate of the
new Administrative Agent.

         10.13    ADMINISTRATIVE AGENT AND ARRANGER FEES.

         The Borrower agrees to pay to the Administrative Agent and the
Arranger, for their respective accounts, the fees agreed to by the Borrower, the
Administrative Agent and the Arranger pursuant to the Fee Letter or as otherwise
agreed from time to time.

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         10.14    DELEGATION TO AFFILIATES.

         The Borrower and the Lenders agree that the Administrative Agent may
delegate any of its duties under this Agreement to any of its Affiliates. Any
such Affiliate (and such Affiliate's directors, officers, agents and employees)
which performs duties in connection with this Agreement shall be entitled to the
same benefits of the indemnification, waiver and other protective provisions to
which the Administrative Agent is entitled under Sections 10 and 11.

         10.15    AUTHORIZATION OF INTERCREDITOR AGREEMENT.

         Each of the Lenders hereby authorizes the Administrative Agent to enter
into the Intercreditor Agreement on their behalf and to carry out the
responsibilities and exercise the powers afforded the Administrative Agent
therein.

         10.16    DOCUMENTATION AGENT, SYNDICATION AGENT, ETC.

         None of the Lenders identified in this Agreement as a Documentation
Agent or Syndication Agent shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all
Lenders as such. Without limiting the foregoing, none of such Lenders shall have
or be deemed to have a fiduciary relationship with any Lender. Each Lender
hereby makes the same acknowledgments with respect to such Lenders as it makes
with respect to the Administrative Agent in Section 10.11.

         10.17    BENEFITS OF SECTION 10.

         None of the provisions of this Section 10 shall inure to the benefit of
the Borrower or of any Person other than Administrative Agent and each of the
Lenders and their respective successors and permitted assigns. Accordingly,
neither the Borrower nor any Person other than Administrative Agent and the
Lenders (and their respective successors and permitted assigns) shall be
entitled to rely upon, or to raise as a defense, the failure of the
Administrative Agent or any Lenders to comply with the provisions of this
Section 10.

                                   SECTION 11

                                  MISCELLANEOUS

         11.1     NOTICES.

         Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (a) when
delivered in writing, (b) when transmitted via telecopy (or other facsimile
device) to the number set out below, (c) the Business Day following the day on
which the same has been delivered prepaid (or on an invoice basis) to a
reputable national overnight air courier service, or (d) the third Business Day
following the day on which the same is sent by certified or registered mail,
postage prepaid, in each case to the respective parties at the address or
telecopy numbers set forth on Schedule 11.1, or at such other address as such
party may specify by written notice to the other parties hereto.

                                       83
<PAGE>

         11.2     RIGHT OF SET-OFF.

         In addition to any rights now or hereafter granted under applicable law
or otherwise, and not by way of limitation of any such rights, upon the
occurrence of an Event of Default and the commencement of remedies described in
Section 9.2, each Lender, and each Affiliate of such Lender, is authorized at
any time and from time to time, without presentment, demand, protest or other
notice of any kind (all of which rights being hereby expressly waived), to
set-off and to appropriate and apply any and all deposits (general or special)
and any other indebtedness at any time held or owing by such Lender or its
Affiliates (including, without limitation, branches or agencies of such Lender
or its Affiliates wherever located) to or for the credit or the account of any
Credit Party or any of its Subsidiaries against the Credit Party Obligations of
such Credit Party, irrespective of whether the Administrative Agent or the
Lenders shall have made any demand hereunder and although such Credit Party
Obligations may be contingent or unmatured, and any such set-off shall be deemed
to have been made immediately upon the occurrence of an Event of Default even
though such charge is made or entered on the books of such Lender subsequent
thereto. The Borrower hereby agrees that any Person purchasing a participation
in the Loans and Commitments hereunder pursuant to Section 11.3(e) or 3.8 may
exercise all rights of set-off with respect to its participation interest as
fully as if such Person were a Lender hereunder.

         11.3     BENEFIT OF AGREEMENT.

                  (a)      Generally. This Credit Agreement shall be binding
         upon and inure to the benefit of and be enforceable by the respective
         successors and assigns of the parties hereto; provided that none of the
         Credit Parties may assign and transfer any of its interests (except as
         permitted by Section 8.4 or 8.5) without the prior written consent of
         the Lenders; and provided further that the rights of each Lender to
         transfer, assign or grant participations in its rights and/or
         obligations hereunder shall be limited as set forth below in this
         Section 11.3.

                  (b)      Assignments. Each Lender may assign to one or more
         Eligible Assignees all or a portion of its rights and obligations under
         this Credit Agreement (including, without limitation, all or a portion
         of its Loans, its Notes, and its Commitments); provided, however, that:

                           (i)      unless each of the Administrative Agent and
                  (as long as no Event of Default exists) Borrower otherwise
                  agrees, any such partial assignment shall be (A) in an amount
                  at least equal to $5,000,000 or an integral multiple of
                  $1,000,000 in excess thereof or (B) in an amount equal to such
                  Lender's entire remaining Commitment;

                           (ii)     each such assignment by a Lender shall be of
                  a constant, and not varying, percentage of all of its rights
                  and obligations under this Credit Agreement and the Notes; and

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<PAGE>

                           (iii)    the parties to such assignment shall execute
                  and deliver to the Administrative Agent for its acceptance an
                  assignment agreement in substantially the form of Exhibit
                  11.3(b) (each an "Assignment Agreement"), together with a
                  processing fee from the assignor of $3,500.

         Upon execution, delivery, and acceptance of such Assignment Agreement,
         the assignee thereunder shall be a party hereto and, to the extent of
         such assignment, have the obligations, rights, and benefits of a Lender
         hereunder and the assigning Lender shall, to the extent of such
         assignment, relinquish its rights (except its rights with respect to
         indemnification under the Credit Documents accruing prior to such
         assignment) and be released from its obligations under this Credit
         Agreement. Upon the consummation of any assignment pursuant to this
         Section 11.3(b), the assignor, the Administrative Agent and the
         Borrower shall make appropriate arrangements so that, if required, new
         Notes are issued to the assignor and the assignee. If the assignee is
         not incorporated under the laws of the United States of America or a
         state thereof, it shall deliver to the Borrower and the Administrative
         Agent certification as to exemption from deduction or withholding of
         taxes in accordance with Section 3.13.

         By executing and delivering an Assignment Agreement in accordance with
         this Section 11.3(b), the assigning Lender thereunder and the assignee
         thereunder shall be deemed to confirm to and agree with each other and
         the other parties hereto as follows: (A) such assigning Lender warrants
         that it is the legal and beneficial owner of the interest being
         assigned thereby free and clear of any adverse claim and the assignee
         warrants that it is an Eligible Assignee; (B) except as set forth in
         clause (A) above, such assigning Lender makes no representation or
         warranty and assumes no responsibility with respect to any statements,
         warranties or representations made in or in connection with this Credit
         Agreement, any of the other Credit Documents or any other instrument or
         document furnished pursuant hereto or thereto, or the execution,
         legality, validity, enforceability, genuineness, sufficiency or value
         of this Credit Agreement, any of the other Credit Documents or any
         other instrument or document furnished pursuant hereto or thereto or
         the financial condition of any Credit Party or any of its Subsidiaries
         or the performance or observance by any Credit Party of any of its
         obligations under this Credit Agreement, any of the other Credit
         Documents or any other instrument or document furnished pursuant hereto
         or thereto; (C) such assignee represents and warrants that it is
         legally authorized to enter into such Assignment Agreement; (D) such
         assignee confirms that it has received a copy of this Credit Agreement,
         the other Credit Documents and such other documents and information as
         it has deemed appropriate to make its own credit analysis and decision
         to enter into such Assignment Agreement; (E) such assignee will
         independently and without reliance upon the Administrative Agent, such
         assigning Lender or any other Lender, and based on such documents and
         information as it shall deem appropriate at the time, continue to make
         its own credit decisions in taking or not taking action under this
         Credit Agreement and the other Credit Documents; (F) such assignee
         appoints and authorizes the Administrative Agent to take such action on
         its behalf and to exercise such powers under this Credit Agreement or
         any other Credit Document as are delegated to the Administrative Agent
         by the terms hereof or thereof, together with such powers as are
         reasonably incidental thereto;

                                       85
<PAGE>

         and (G) such assignee agrees that it will perform in accordance with
         their terms all the obligations which by the terms of this Credit
         Agreement and the other Credit Documents are required to be performed
         by it as a Lender.

                  (c)      Register. The Administrative Agent shall maintain a
         copy of each Assignment Agreement delivered to and accepted by it and a
         register for the recordation of the names and addresses of the Lenders
         and the Commitment of, and principal amount of the Loans owing to, each
         Lender from time to time (the "Register"). The entries in the Register
         shall be conclusive and binding for all purposes, absent manifest
         error, and the Borrower, the Administrative Agent and the Lenders may
         treat each Person whose name is recorded in the Register as a Lender
         hereunder for all purposes of this Credit Agreement. The Register shall
         be available for inspection by the Borrower or any Lender at any
         reasonable time and from time to time upon reasonable prior notice.

                  (d)      Acceptance. Upon its receipt of an Assignment
         Agreement executed by the parties thereto, together with any Note
         subject to such assignment and payment of the processing fee, the
         Administrative Agent shall, if such Assignment Agreement has been
         completed and is in substantially the form of Exhibit 11.3(b) hereto,
         (i) accept such Assignment Agreement, (ii) record the information
         contained therein in the Register and (iii) give prompt notice thereof
         to the parties thereto.

                  (e)      Participations. Each Lender may sell participations
         to one or more Persons in all or a portion of its rights, obligations
         or rights and obligations under this Credit Agreement (including all or
         a portion of its Commitments and its Loans); provided, however, that
         (i) such Lender's obligations under this Credit Agreement shall remain
         unchanged, (ii) such Lender shall remain solely responsible to the
         other parties hereto for the performance of such obligations, (iii) the
         participant shall be entitled to the benefit of the yield protection
         provisions contained in Sections 3.9 through 3.14, inclusive, and the
         right of set-off contained in Section 11.2, (iv) the Borrower shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Credit Agreement,
         and such Lender shall retain the sole right to enforce the obligations
         of the Borrower relating to its Loans and its Notes and to approve any
         amendment, modification, or waiver of any provision of this Credit
         Agreement (other than amendments, modifications, or waivers decreasing
         the amount of principal of or the rate at which interest is payable on
         such Loans or Notes, extending any scheduled principal payment date or
         date fixed for the payment of interest on such Loans or Notes or fees
         (other than Administrative Fees) (other than as a result of the
         extension of the Maturity Date in accordance with the terms of Section
         2.5), postponing the expiry date of any Facility LC beyond the Maturity
         Date, extending its Commitments or releasing all or substantially all
         of the Guarantors) and (v) such Lender shall provide written notice of
         any participation to the Borrower and the Administrative Agent.

                  (f)      Nonrestricted Assignments. Notwithstanding any other
         provision set forth in this Credit Agreement, any Lender may at any
         time assign and pledge all or any portion of its Loans and its Notes to
         any Federal Reserve Bank as collateral security pursuant to

                                       86
<PAGE>

         Regulation A and any Operating Circular issued by such Federal Reserve
         Bank. No such assignment shall release the assigning Lender from its
         obligations hereunder.

                  (g)      Information. Any Lender may furnish any information
         concerning the Borrower or any of its Subsidiaries in the possession of
         such Lender from time to time to assignees and participants (including
         prospective assignees and participants), subject, however, to the
         provisions of Section 11.16.

         11.4     NO WAIVER; REMEDIES CUMULATIVE.

         No failure or delay on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege hereunder or under any other
Credit Document and no course of dealing between the Borrower or any of its
Subsidiaries and the Administrative Agent or any Lender shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or under any other Credit Document preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder or thereunder. The rights and remedies provided herein are cumulative
and not exclusive of any rights or remedies which the Administrative Agent or
any Lender would otherwise have. No notice to or demand on any Credit Party in
any case shall entitle any Credit Party to any other or further notice or demand
in similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent or the Lenders to any other or further action in any
circumstances without notice or demand.

         11.5     PAYMENT OF EXPENSES; INDEMNIFICATION.

         The Borrower agrees to: (a) pay all reasonable out-of-pocket costs and
expenses of (i) the Administrative Agent and Arranger in connection with (A) the
negotiation, preparation, execution and delivery, syndication and administration
of this Credit Agreement and the other Credit Documents and the documents and
instruments referred to therein, and (B) any amendment, waiver or consent
relating hereto and thereto including, but not limited to, any such amendments,
waivers or consents resulting from or related to any work-out, renegotiation or
restructure relating to the performance by the Credit Parties under this Credit
Agreement (including, without limitation, in the case of either (A) or (B)
above, the reasonable fees and expenses of counsel to the Administrative Agent,
who may or may not be employees of the Administrative Agent) and (ii) the
Administrative Agent and the Lenders in connection with (A) enforcement and
collection of the Credit Documents and the documents and instruments referred to
therein, including, without limitation, in connection with any such enforcement,
the reasonable fees and disbursements of counsel for the Administrative Agent,
who may or may not be employees of the Administrative Agent and each of the
Lenders, and (B) any bankruptcy or insolvency proceeding of a Credit Party or
any of its Subsidiaries and (b) indemnify the Administrative Agent, Arranger,
each Lender and each of their officers, directors, employees, representatives,
Affiliates and agents from and hold each of them harmless against any and all
losses, liabilities, claims, damages or expenses (including, without limitation,
the reasonable fees and expenses of legal counsel (including the allocated cost
of internal counsel) and settlement costs incurred by any of them as a result
of, or arising out of, or in any way related to, or by reason of, any
investigation, litigation or other proceeding (whether or not the Administrative
Agent, Arranger or any Lender is a party thereto) related to (i) the entering
into

                                       87
<PAGE>

and/or performance of any Credit Document or the use of proceeds of any Loans
(including other Extensions of Credit) hereunder or the consummation of any
other transactions contemplated in any Credit Document, including, without
limitation, the reasonable fees and disbursements of counsel incurred in
connection with any such investigation, litigation or other proceeding, (ii) any
Environmental Claim, (iii) any claims for Non-Excluded Taxes (but excluding in
the case of clauses (i), (ii) and (iii) above, any such losses, liabilities,
claims, damages or expenses to the extent incurred by reason of gross negligence
or willful misconduct on the part of the Person to be indemnified).

         11.6     AMENDMENTS, WAIVERS AND CONSENTS.

         Subject to Section 11.16(b), neither this Credit Agreement nor any
other Credit Document nor any of the terms hereof or thereof may be amended,
changed, waived, discharged or terminated unless such amendment, change, waiver,
discharge or termination is in writing and signed by the Required Lenders and
the Credit Parties that are parties to the Credit Document being amended,
changed or terminated or with respect to which such waiver or discharge is being
given; provided that no such amendment, change, waiver, discharge or termination
shall without the consent of each Lender affected thereby:

                  (a)      extend the Maturity Date (other than with the consent
         of the Extension Required Lenders pursuant to Section 2.5) or extend
         the expiry date of any Facility LC beyond the Maturity Date;

                  (b)      reduce the rate or extend the time of payment of
         interest or fees hereunder (it being understood and agreed that a
         waiver of the applicability of any post-default increase in interest
         rates shall not constitute a reduction in the rate of interest for
         purposes of this clause (b));

                  (c)      reduce or waive the principal amount, or extend the
         date for payment of any Loan or any Reimbursement Obligation;

                  (d)      increase or extend any Commitment of a Lender (it
         being understood and agreed that a waiver of any Default or Event of
         Default or a waiver of any mandatory reduction in the Commitments or
         any increase in the Revolving Committed Amount pursuant to Section
         2.1(e) shall not constitute a change in the terms of any Commitment of
         any Lender);

                  (e)      except as the result of or in connection with a
         merger or other disposition of a Credit Party permitted under Section
         8.4, (i) release the Borrower from its obligations under the Credit
         Documents or (ii) release any Credit Party that individually or,
         together with any other Credit Party previously released or to be
         released simultaneously therewith, cumulatively accounts for more than
         5% of Tangible Net Worth from its obligations under the Credit
         Documents;

                                       88
<PAGE>

                  (f)      amend, modify or waive any provision of this Section
         11.6 or Section 3.4(a), 3.4(b), 3.7, 3.8, 5.1, 5.2, 9.1(a), 11.2, 11.3
         or 11.5;

                  (g)      reduce any percentage specified in, or otherwise
         modify, the definition of Required Lenders set forth in Section 1.1; or

                  (h)      consent to the assignment or transfer by a Borrower
         or all or substantially all of the other Credit Parties of any of its
         or their rights and obligations under (or in respect of) the Credit
         Documents except as permitted thereby.

Notwithstanding the above, no provision of Section 10 may be amended or modified
without the consent of the Administrative Agent. No provision affecting the
Swingline Loans may be amended or modified without the consent of the Swingline
Lender. No provision affecting an LC Issuer may be amended or modified without
its consent.

Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as
such Lender sees fit on any reorganization plan that affects the Loans, LC
Obligations or any other Credit Party Obligations and each Lender acknowledges
that the provisions of Section 1126(c) of the Bankruptcy Code supersedes the
unanimous consent provisions set forth herein and (y) the Required Lenders may
consent to allow a Credit Party to use cash collateral in the context of a
bankruptcy or insolvency proceeding.

         11.7     COUNTERPARTS/TELECOPY.

         This Credit Agreement may be executed in any number of counterparts,
each of which where so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. Delivery of executed
counterparts by telecopy shall be as effective as an original and shall
constitute a representation that an original will be delivered.

         11.8     HEADINGS.

         The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Credit Agreement.

         11.9     DEFAULTING LENDER.

         Each Lender understands and agrees that if such Lender is a Defaulting
Lender then notwithstanding the provisions of Section 11.6 it shall not be
entitled to vote on any matter requiring the consent of the Required Lenders or
to object to any matter (other than those provided for in Section 11.6(b), (c)
and (d)) requiring the consent of all the Lenders; provided, however, that all
other benefits and obligations under the Credit Documents shall apply to such
Defaulting Lender.

                                       89
<PAGE>

         11.10    SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND
                  WARRANTIES.

         All indemnities set forth herein and all representations and warranties
made herein shall survive the execution and delivery of this Credit Agreement,
the making of the Credit Extensions, and the repayment of the Loans and other
Credit Party Obligations and the termination of the Commitments hereunder.

         11.11    GOVERNING LAW; JURISDICTION.

                  (a)      CHOICE OF LAW. THE CREDIT DOCUMENTS (OTHER THAN THOSE
         CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE
         CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT
         LIMITATION, 735 ILCS SECTION 105/5-1 ET SEQ, BUT OTHERWISE WITHOUT
         REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS,
         BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

                  (b)      CONSENT TO JURISDICTION. THE BORROWER HEREBY
         IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED
         STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS IN
         ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY CREDIT
         DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN
         RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY
         SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
         HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
         SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING
         HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER
         OR LC ISSUER TO BRING PROCEEDINGS AGAINST THE BORROWER IN THE COURTS OF
         ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER AGAINST
         THE ADMINISTRATIVE AGENT OR ANY LENDER OR LC ISSUER OR ANY AFFILIATE OF
         THE ADMINISTRATIVE AGENT ANY LENDER OR LC ISSUER INVOLVING, DIRECTLY OR
         INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
         CONNECTED WITH ANY CREDIT DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN
         CHICAGO, ILLINOIS.

         11.12    WAIVER OF JURY TRIAL.

         EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

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<PAGE>

         11.13    SEVERABILITY.

         If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

         11.14    FURTHER ASSURANCES.

         The Credit Parties agree, upon the request of the Administrative Agent,
to promptly take such actions, as reasonably requested, as is necessary to carry
out the intent of this Credit Agreement and the other Credit Documents.

         11.15    ENTIRETY.

         This Credit Agreement together with the other Credit Documents and the
Fee Letter represent the entire agreement of the parties hereto and thereto, and
supersede all prior agreements and understandings, oral or written, if any,
including any commitment letters or correspondence relating to the Credit
Documents or the transactions contemplated herein and therein.

         11.16    CONFIDENTIALITY.

         Each Lender agrees to hold any confidential information which it may
receive from the Borrower pursuant to this Agreement in confidence, except for
disclosure (i) to its Affiliates and to other Lenders and their respective
Affiliates, who shall be advised of and directed to maintain the confidentiality
of such information, (ii) to legal counsel, accountants, and other professional
advisors to such Lender or to an assignee or participant of a Lender, who shall
be advised of and directed to maintain the confidentiality of such information,
(iii) to regulatory officials, (iv) to any Person as requested pursuant to or as
required by law, regulation, or legal process, (v) to any Person in connection
with any legal proceeding to which such Lender is a party, (vi) to such Lender's
direct or indirect contractual counterparties in swap agreements or to legal
counsel, accountants and other professional advisors to such counterparties, who
shall be advised of and directed to maintain the confidentiality of such
information, (vii) permitted by Section 11.3(g) and (viii) to rating agencies if
requested or required by such agencies in connection with a rating relating to
the Loans and other Extensions of Credit hereunder. Notwithstanding anything
herein to the contrary, confidential information shall not include, and each
Lender (and each employee, representative or other agent of any Lender) may
disclose to any and all Persons, without limitation of any kind, the "tax
treatment" and "tax structure" (in each case, within the meaning of Treasury
Regulation Section 1.6011-4) of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are or
have been provided to such Lender relating to such tax treatment or tax
structure; provided that with respect to any document or similar item that in
either case contains information concerning such tax treatment or tax structure
of the transactions contemplated hereby as well as other information, this

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<PAGE>

sentence shall only apply to such portions of the document or similar item that
relate to such tax treatment or tax structure.

         11.17    BINDING EFFECT; CONTINUING AGREEMENT.

                  (a)      This Credit Agreement shall become effective at such
         time when all of the conditions set forth in Section 5.1 have been
         satisfied or waived by the Lenders and it shall have been executed by
         the Borrower and the Administrative Agent, and the Administrative Agent
         shall have received copies hereof (telefaxed or otherwise) which, when
         taken together, bear the signatures of each Lender, and thereafter this
         Credit Agreement shall be binding upon and inure to the benefit of the
         Borrower, the Administrative Agent and each Lender and their respective
         successors and assigns.

                  (b)      This Credit Agreement shall be a continuing agreement
         and shall remain in full force and effect until all Loans, interest,
         fees and other Credit Party Obligations have been paid in full and all
         Commitments have been terminated. Upon termination, the Credit Parties
         shall have no further obligations (other than the indemnification
         provisions that survive) under the Credit Documents; provided that
         should any payment, in whole or in part, of the Credit Party
         Obligations be rescinded or otherwise required to be restored or
         returned by the Administrative Agent or any Lender, whether as a result
         of any proceedings in bankruptcy or reorganization or otherwise, then
         the Credit Documents shall automatically be reinstated and all amounts
         required to be restored or returned and all costs and expenses incurred
         by the Administrative Agent or Lender in connection therewith shall be
         deemed included as part of the Credit Party Obligations.

                  11.18    NO CONSEQUENTIAL DAMAGES.

         Each party hereto waives any claim for consequential damages by reason
of the breach of any provision of the Credit Documents by any other party.

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<PAGE>

         Each of the parties hereto has caused a counterpart of this Credit
Agreement to be duly executed and delivered as of the date first above written.

BORROWER:
                                      PULTE HOMES, INC.,
                                      a Michigan corporation

                                      By: /s/ Bruce E. Robinson
                                         -------------------------------------
                                               Bruce E. Robinson
                                               Vice President and Treasurer

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<PAGE>

LENDERS:

                                 BANK ONE, NA,
                                 individually in its capacity as a Lender and
                                 in its capacity as the Administrative Agent

                                 By: /s/ Allison L. Crayne
                                    -------------------------------------------

                                 Name: Allison L. Crayne
                                      -----------------------------------------

                                 Title: Associate Director

                                       94

<PAGE>

                                   SCHEDULE 1

<TABLE>
<CAPTION>
                        Lender                                 Commitment               Pro Rata Share
--------------------------------------------------            ------------              --------------
<S>                                                           <C>                       <C>
Bank One. NA                                                  $ 75,000,000               0.0887352942
Citicorp North America, Inc.                                  $ 75,000,000               0.0887352942
Comerica Bank                                                 $ 70,000,000               0.0823529412
SunTrust Bank                                                 $ 70,000,000               0.0823529412
The Royal Bank of Scotland plc                                $ 70,000,000               0.0823529412
UBS AG, Cayman Islands Branch                                 $ 70,000,000               0.0823529412
Credit Lyonnais New York Branch                               $ 45,000,000               0.0529411765
Guaranty Bank                                                 $ 45,000,000               0.0529411765
Standard Federal Bank N.A.                                    $ 45,000,000               0.0529411765
Deutsche Bank Trust Company Americas                          $ 40,000,000               0.0470588235
Mizuho Corporate Bank, LTD.                                   $ 40,000,000               0.0470588235
Washington Mutual Bank, FA                                    $ 40,000,000               0.0470588235
The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch            $ 30,000,000               0.0352941176
BNP Paribas                                                   $ 30,000,000               0.0352941176
PNC Bank, N.A.                                                $ 30,000,000               0.0352941176
Compass Bank                                                  $ 25,000,000               0.0294117647
Fifth Third Bank, Eastern Michigan                            $ 15,000,000               0.0176470588
The Northern Trust Company                                    $ 15,000,000               0.0176470588
The Norinchukin Bank, New York Branch                         $ 15,000,000               0.0176470588
The Bank of East Asia Limited                                 $  5,000,000               0.0058823529

TOTAL                                                         $850,000,000                        100%
                                                              ============               ============
</TABLE>
<PAGE>

                                 SCHEDULE 1.1(b)

                           EXISTING LETTERS OF CREDIT

<TABLE>
<CAPTION>
                                                                                                            AUTO     L/C PURPOSE
  BANK      MARKET       LC NUMBER      AMOUNT         ISSUE DATE   EXPIRY DATE         BENEFICIARY         REN         TYPE
  ----      ------       ---------      ------         ----------   -----------         -----------         ----        ----
<S>        <C>        <C>              <C>             <C>          <C>           <C>                       <C>      <C>
BANK ONE   PHOENIX            332668   $2,255,000.00   08/13/2003   08/08/2004    FIDELITY NATIONAL AND       N      Finance
                                                                                  PINAL CTY
BANK ONE   PHOENIX            335472   $  207,790.00   05/09/2003   03/30/2004    REMINGTON HTS HOA           N      Performance
BANK ONE   PHOENIX            335979   $1,901,784.14   12/13/2002   11/01/2004    FIRST AM TITLE COMPANY      N      Performance
BANK ONE   PHOENIX            335980   $2,569,872.67   12/13/2002   11/01/2004    FIRST AM TITLE COMPANY      N      Performance
BANK ONE   ILLINOIS           336583   $   50,000.00   08/25/2003   08/28/2004    COSMOPOLITAN NAT'L BANK     N      Financial
                                       -------------
                      TOTAL BANK ONE   $6,984,446.81

                                       =============

COMERICA   MICHIGAN           506007   $  418,000.00   06/03/1999   06/08/2004    WAYNE COUNTY DPS            Y      Performance
COMERICA   MICHIGAN           506008   $  332,000.00   06/03/1999   06/08/2004    WAYNE COUNTY DPS            Y      Performance
COMERICA   MICHIGAN           506009   $  373,000.00   06/03/1999   06/08/2004    WAYNE COUNTY DPS            Y      Performance
COMERICA   MICHIGAN           506010   $  534,000.00   06/03/1999   06/08/2004    WAYNE COUNTY DPS            Y      Performance
COMERICA   MICHIGAN           506012   $   10,000.00   07/21/1999   07/23/2004    YPSILANTI TOWNSHIP          Y      Performance
</TABLE>

<PAGE>

<TABLE>
<S>        <C>                <C>      <C>             <C>          <C>           <C>                         <C>    <C>
COMERICA   MICHIGAN           506021   $   50,000.00   04/27/2000   04/26/2004    DEPT ENVIRONMENT QUALITY    Y      Performance
COMERICA   MICHIGAN           506022   $1,885,728.00   04/27/2000   04/26/2004    YPSILANTI TOWNSHIP          Y      Performance
COMERICA   MICHIGAN           506023   $   57,630.00   04/27/2000   04/26/2004    YPSILANTI TOWNSHIP          Y      Performance
COMERICA   MICHIGAN           506026   $   31,200.00   04/27/2000   04/26/2004    YPSILANTI TOWNSHIP          Y      Performance
COMERICA   MICHIGAN           506027   $  103,445.00   04/27/2000   04/26/2004    YPSILANTI TOWNSHIP          Y      Performance
COMERICA   MICHIGAN           506031   $  200,000.00   10/10/2000   10/15/2003    CANTON TOWNSHIP             N      Performance
COMERICA   MICHIGAN           506042   $   28,800.00   01/18/2001   01/22/2004    CITY OF STERLING HEIGHTS    N      Performance
COMERICA   MICHIGAN           506043   $    5,616.00   01/18/2001   01/22/2004    CITY OF STERLING HEIGHTS    N      Performance
COMERICA   ILLINOIS           506054   $4,405,687.44   08/01/2001   07/30/2004    VILLAGE OF KILDEER          Y      Performance
COMERICA   CLEVELAND          506057   $1,716,873.00   08/10/2001   08/31/2004    CITY OF BROADVIEW HTS       Y      Performance
COMERICA   MICHIGAN           506060   $  389,800.00   10/22/2001   10/25/2003    WAYNE COUNTY DPS            N      Performance
COMERICA   MICHIGAN           506061   $  257,800.00   10/22/2001   10/25/2003    WAYNE COUNTY DPS            N      Performance
COMERICA   MICHIGAN           506064   $1,174,983.00   12/17/2001   12/28/2003    OAKLAND TOWNSHIP            Y      Performance
COMERICA   MICHIGAN           506065   $  565,690.00   01/10/2002   01/12/2004    OAKLAND TOWNSHIP            Y      Performance
COMERICA   HOME OFFICE        511074   $4,666,343.00   01/31/1991   02/15/2004    OLD REPUBLIC INSURANCE      Y      Financial
                                                                                  COMPANY
</TABLE>

                                        2
<PAGE>

<TABLE>
<S>        <C>                <C>      <C>             <C>          <C>           <C>                         <C>    <C>
COMERICA   HOME OFFICE        511395   $5,432,499.00   03/21/1991   05/01/2004    LIBERTY MUTUAL INSURANCE    Y      Financial
                                                                                  COMPANY
COMERICA   HOME OFFICE        526021   $  500,000.00   11/18/1994   11/01/2003    COLORADO COMM OF INSURANCE  Y      Financial
COMERICA   MICHIGAN           535729   $   32,000.00   10/24/1996   10/29/2003    PLYMOUTH CHARTER TOWNSHIP   Y      Performance
COMERICA   GRAND RAPIDS       539061   $  110,000.00   04/25/1997   04/28/2004    CITY OF KENTWOOD            Y      Performance
COMERICA   HOME OFFICE        539792   $   13,500.00   06/06/1997   05/06/2004    WAYNE COUNTY DEPT           N      Performance
                                                                                  ENVIRONMENT
COMERICA   MICHIGAN           547625   $   25,000.00   09/04/1998   09/15/2004    WASHTENAW COUNTY DRAIN      Y      Performance
COMERICA   MICHIGAN           547694   $  112,500.00   09/08/1998   09/30/2003    PLYMOUTH CHARTER TWNSP      Y      Performance
COMERICA   MICHIGAN           571546   $   59,500.00   01/08/2002   12/23/2003    WASHTENAW COUNTY ROAD       N      Performance
COMERICA   CLEVELAND          575196   $1,722,995.00   06/25/2002   06/25/2004    CITY OF BROADVIEW HEIGHTS   Y      Performance
COMERICA   MICHIGAN           576583   $   20,000.00   08/20/2002   08/20/2004    WASHTENAW COUNTY DRAIN      Y      Performance
COMERICA   MICHIGAN           578243   $    3,935.00   10/29/2002   11/03/2003    NORTHVILLE TOWNSHIP         Y      Performance
COMERICA   MICHIGAN           578650   $  131,330.00   11/15/2002   11/01/2003    WASHTENAW ROAD COMM         N      Performance
COMERICA   CLEVELAND          580674   $  602,054.00   02/10/2003   02/06/2004    CITY OF BROADVIEW HTS       Y      Performance
COMERICA   MICHIGAN           582013   $  102,000.00   04/03/2003   04/16/2004    WAYNE COUNTY PUB SERV       Y      Performance
COMERICA   MICHIGAN           582374   $   37,500.00   04/16/2003   04/21/2004    WAYNE COUNTY DPS            Y      Performance
</TABLE>

                                        3
<PAGE>
<TABLE>
<S>        <C>                <C>      <C>             <C>          <C>           <C>                         <C>    <C>
COMERICA   MICHIGAN           582542   $   88,800.00   04/22/2003   04/26/2004    CHARTER TOWNSHIP OF         N      Performance
                                                                                  SUPERIOR
COMERICA   MICHIGAN           582948   $   66,675.00   05/09/2003   05/12/2004    CANTON TOWNSHIP             N      Performance
COMERICA   MICHIGAN           583037   $1,223,964.00   05/13/2003   05/17/2004    WASHTENAW COUNTY DRAIN      Y      Performance
COMERICA   MICHIGAN           583050   $  240,000.00   05/13/2003   05/17/2004    WASHTENAW COUNTY            Y      Performance
COMERICA   MICHIGAN           583164   $    2,500.00   05/19/2003   05/20/2004    WASHTENAW COUNTY DRAIN      Y      Performance
COMERICA   MICHIGAN           583660   $  376,960.00   06/09/2003   06/09/2004    CHARTER TOWNSHIP OF         N      Performance
                                                                                  YPSILANTI
COMERICA   MICHIGAN           585450   $   73,000.00   08/26/2003   08/31/2004    SUPERIOR TOWNSHIP           N      Performance
COMERICA   MICHIGAN           585451   $    3,750.00   08/26/2003   08/31/2004    HOLLY TOWNSHIP              N      Performance
COMERICA   MICHIGAN           585452   $   56,038.00   08/26/2003   08/31/2004    HOLLY TOWNSHIP              N      Performance
COMERICA   MICHIGAN           585455   $  348,800.00   08/26/2003   08/31/2004    HOLLY TOWNSHIP              N      Performance
COMERICA   MICHIGAN           585456   $  456,094.00   08/26/2003   08/31/2004    HOLLY TOWNSHIP              N      Performance
COMERICA   MICHIGAN           585457   $  348,133.00   08/26/2003   08/31/2004    HOLLY TOWNSHIP              N      Performance
COMERICA   MICHIGAN           585460   $  496,555.00   08/26/2003   08/31/2004    WASHTENAW COUNTY DRAIN      Y      Performance
COMERICA   MICHIGAN           585564   $   65,000.00   08/29/2003   08/31/2004    WAYNE COUNTY PUB SERV       Y      Performance
COMERICA   MICHIGAN           585735   $   50,000.00   09/08/2003   09/10/2004    WAYNE COUNTY                Y      Performance
</TABLE>

                                        4
<PAGE>

<TABLE>
<S>           <C>            <C>              <C>              <C>          <C>          <C>                    <C>  <C>
COMERICA      HOME OFFICE         545620-01   $ 3,686,739.00   05/20/1998   05/15/2004   PACIFIC EMPLOYERS      Y    Performance
                                                                                         INSURANCE
COMERICA      MICHIGAN               586012   $   584,372.00   09/18/2003   09/20/2004   BOARD OF COUNTRY       Y    Performance
                                                                                         ROAD
COMERICA      MICHIGAN               586013   $   200,000.00   09/18/2003   09/20/2004   WAYNE COUNTY           Y    Performance
COMERICA      MICHIGAN               586108   $   156,225.00   09/23/2003   09/25/2004   CHARTER TOWNSHIP OF    N    Performance
                                                                                         YPSILANTI
COMERICA      MICHIGAN               586109   $   483,609.00   09/23/2003   09/23/2004   CHARTER TOWNSHIP OF    N    Performance
                                                                                         YPSILANT
COMERICA      MICHIGAN               586125   $    33,800.00   09/23/2003   09/24/2004   CHARTER TOWNSHIP OF    N    Performance
                                                                                         YPSILANT
COMERICA      MICHIGAN               586190   $    22,500.00   09/25/2003   09/30/2004   CHARTER TOWNSHIP OF    N    Performance
                                                                                         YPSILANT
                             TOTAL COMERICA   $35,174,922.44

COMPASS BANK  PHILADELPHIA            25559   $   109,500.00   03/06/2002   03/06/2004   UPPER MAKEFIELD TWSP   Y    Performance
COMPASS BANK  PHILADELPHIA            25560   $   564,427.70   03/05/2002   03/06/2004   UPPER MAKEFIELD TWSP   Y    Performance
COMPASS BANK  PHILADELPHIA            25561   $   364,416.00   03/05/2002   03/06/2004   UPPER MAKEFIELD TWSP   Y    Performance
COMPASS BANK  CLEVELAND               26162   $   276,870.00   07/11/2003   07/07/2004   CITY OF BROADVIEW      N    Performance
                                                                                         HEIGHT
COMPASS BANK  MICHIGAN                26163   $   368,175.00   07/11/2003   07/07/2004   CHARTER TOWNSHIP OF    N    Performance
                                                                                         CANTON
COMPASS BANK  PHOENIX                 26194   $ 1,375,000.00   08/14/2003   08/08/2004   FIDELITY NATIONAL AND  N    Financial
                                                                                         PINAL CTY
</TABLE>

                                        5
<PAGE>

<TABLE>
<S>               <C>           <C>                  <C>                <C>         <C>         <C>                 <C> <C>
COMPASS BANK      CLEVELAND                  26161   $      652,057.50  07/11/2003  07/07/2004  CITY OF BROADVIEW   N   Performance
                                                                                                HEIGHTS
                                TOTAL COMPASS BANK   $    3,710,446.20

PNC               ILLINOIS                  257306   $    1,064,699.59  05/30/2003  05/05/2004  VILLAGE OF          Y   Performance
                                                                                                BOLINGBROOK
PNC               ILLINOIS                  257965   $    2,545,575.50  06/06/2003  05/26/2004  VILLAGE OF          Y   Performance
                                                                                                BOLINGBROOK
PNC               PHILADELPHIA              257966   $    1,557,907.00  06/05/2003  06/03/2004  EAST BRADFORD       Y   Performance
                                                                                                TOWNSHIP
PNC               PHILADELPHIA              258087   $       20,752.05  06/06/2003  06/04/2004  PENNSYLVANIA DOT    Y   Performance
PNC               PHILADELPHIA              260362   $      114,452.31  09/02/2003  08/27/2004  PECO ENERGY CO      Y   Performance
PNC               PHILADELPHIA              260987   $    2,179,834.36  09/29/2003  09/29/2004  SOLEBURY TOWNSHIP   Y   Performance
                                TOTAL PNC BANK       $    7,483,220.81

STANDARD FEDERAL  CLEVELAND                 450065   $      726,700.00  04/01/1996  04/10/2004  CITY OF TWINSBURG   Y   Performance
STANDARD FEDERAL  MICHIGAN                  450118   $       79,750.00  02/05/1998  02/10/2004  PLYMOUTH TOWNSHIP   N   Performance
STANDARD FEDERAL  GRAND RAPIDS              450160   $      130,000.00  11/25/1997  10/01/2003  CITY OF KENTWOOD    Y   Performance
STANDARD FEDERAL  MICHIGAN                  450169   $        5,000.00  05/12/1998  05/17/2004  ORION TOWNSHIP      Y   Performance
</TABLE>

                                        6
<PAGE>

<TABLE>
<S>               <C>                       <C>      <C>                <C>         <C>         <C>                 <C> <C>
STANDARD FEDERAL  MICHIGAN                  450171   $       10,710.00  06/03/1998  06/03/2004  YPSILANTI TOWNSHIP  Y   Performance
STANDARD FEDERAL  MICHIGAN                  450172   $      250,000.00  08/11/1999  08/13/2004  PLYMOUTH CHARTER    N   Performance
                                                                                                TOWNSHIP
STANDARD FEDERAL  MICHIGAN                  450173   $       35,071.50  06/03/1998  06/03/2004  YPSILANTI TOWNSHIP  Y   Performance
STANDARD FEDERAL  MICHIGAN                  450174   $       20,000.00  07/21/1998  06/23/2004  WAYNE COUNTY        Y   Performance
STANDARD FEDERAL  MICHIGAN                  450176   $      128,975.00  08/11/1999  08/13/2004  PLYMOUTH CHARTER    N   Performance
                                                                                                TOWNSHIP
STANDARD FEDERAL  MICHIGAN                  450183   $       18,225.00  06/03/1998  06/03/2004  YPSILANTI TOWNSHIP  Y   Performance
STANDARD FEDERAL  MICHIGAN                  450191   $       99,525.00  06/03/1998  06/03/2004  YPSILANTI TOWNSHIP  Y   Performance
STANDARD FEDERAL  MICHIGAN                  450193   $       90,000.00  06/16/1998  06/18/2004  WAYNE COUNTY        Y   Performance
STANDARD FEDERAL  MICHIGAN                  450209   $       25,000.00  08/08/2000  08/10/2004  WASHTENAW COUNTY    N   Performance
                                                                                                DRAIN CMMR
STANDARD FEDERAL  MICHIGAN                  450237   $      655,000.00  05/01/2000  05/01/2004  WAYNE COUNTY DPS    Y   Performance
STANDARD FEDERAL  MICHIGAN                  450238   $      551,000.00  05/01/2000  05/01/2004  WAYNE COUNTY DPS    Y   Performance
STANDARD FEDERAL  MICHIGAN                  450263   $        5,590.00  06/27/2000  06/30/2004  YPSILANTI TOWNSHIP  Y   Performance
STANDARD FEDERAL  MICHIGAN                  450266   $      954,229.00  06/27/2000  06/30/2004  YPSILANTI TOWNSHIP  Y   Performance
STANDARD FEDERAL  ILLINOIS                  450348   $    2,132,000.00  07/10/2000  07/16/2004  VILLAGE OF WEST     Y   Performance
                                                                                                DUNDEE
STANDARD FEDERAL  MICHIGAN                  450399   $      196,966.00  06/19/2001  06/21/2004  CANTON TOWNSHIP     N   Performance
</TABLE>

                                        7
<PAGE>

<TABLE>
<S>               <C>                <C>             <C>              <C>         <C>         <C>                    <C> <C>
STANDARD FEDERAL  MICHIGAN                   451588  $   219,667.00   05/08/2002  05/15/2004  WASHTENAW COUNTY RD    N   Performance
STANDARD FEDERAL  MICHIGAN                   451596  $ 1,290,764.00   05/14/2002  05/15/2004  WASHTENAW DRAIN COMM   Y   Performance
STANDARD FEDERAL  MICHIGAN                   451916  $   460,000.00   10/11/2002  10/15/2003  WAYNE COUNTY PUBLIC    Y   Performance
                                                                                              SERV
STANDARD FEDERAL  MICHIGAN                   451917  $   287,641.00   10/11/2002  10/15/2004  WASHTENAW COUNTY ROAD  N   Performance
STANDARD FEDERAL  PC/BRE-LIFESTYLES          452121  $ 1,935,217.90   01/14/2003  01/20/2005  S/A ASSOCIATES         N   Performance
STANDARD FEDERAL  MICHIGAN                   452137  $ 2,291,250.00   01/24/2003  01/28/2004  METROPOLITAN TITLE CO  N   Financial
STANDARD FEDERAL  MICHIGAN                   452444  $   753,795.00   06/13/2003  06/11/2004  COUNTY OF WASHTENAW    Y   Performance
STANDARD FEDERAL  ILLINOIS                   452485  $    50,000.00   07/02/2003  06/25/2004  ISPAT INLAND MORTG     Y   Financial

                                     TOTAL STANDARD
                                            FEDERAL  $13,402,076.40

SUN TRUST         HOME OFFICE                502818  $   315,251.00   12/29/2000  01/03/2004  LIBERTY MUTUAL         Y   Financial
                                                                                              INSURANCE
SUN TRUST         ORLANDO                    503490  $   210,000.00   09/19/2002  09/20/2004  ASHTON WOODS ORLANDO   N   Financial
SUN TRUST         PC/BRE-LIFESTYLES          600223  $    94,331.80   04/01/1996  04/04/2004  MONROE TOWNSHIP, MUA   Y   Performance
SUN TRUST         PC/BRE-LIFESTYLES          600224  $    87,581.60   04/01/1996  04/04/2004  MONROE TOWNSHIP, MUA   Y   Performance
SUN TRUST         COLORADO                   600431  $    67,338.00   06/08/1998  06/11/2004  CITY & COUNTY OF       Y   Performance
                                                                                              DENVER
</TABLE>

                                        8
<PAGE>

<TABLE>
<S>               <C>                        <C>     <C>              <C>         <C>         <C>                    <C> <C>
SUN TRUST         COLORADO                   600432  $    83,252.00   06/08/1998  06/11/2004  CITY & COUNTY OF       Y   Performance
                                                                                              DENVER
SUN TRUST         WASHINGTON                 600441  $    21,500.00   06/18/1998  12/18/2003  PRINCE WILLIAM COUNTY  Y   Performance
SUN TRUST         WASHINGTON                 600443  $    94,438.69   06/18/1998  12/18/2003  PRINCE WILLIAM COUNTY  Y   Performance
SUN TRUST         MINNESOTA                  600463  $    11,000.00   07/07/1998  10/30/2003  CITY OF MAPLE GROVE    Y   Performance
SUN TRUST         TENNESSEE                  600488  $    28,500.00   07/29/1998  08/12/2004  CITY OF FRANKLIN       N   Performance
SUN TRUST         MINNESOTA                  600502  $     3,188.00   08/17/1998  08/20/2004  CITY OF APPLE VALLEY   Y   Performance
SUN TRUST         TENNESSEE                  600552  $     3,000.00   10/07/1998  09/21/2004  WILSON COUNTY ROAD     Y   Performance
                                                                                              COM
SUN TRUST         TENNESSEE                  600554  $    55,400.00   10/07/1998  11/15/2004  CITY OF FRANKLIN       N   Performance
SUN TRUST         TENNESSEE                  600562  $     7,400.00   10/13/1998  10/14/2004  WILSON COUNTY ROAD     Y   Performance
SUN TRUST         TENNESSEE                  600587  $    16,600.00   11/04/1998  10/28/2003  WILSON COUNTY ROAD     Y   Performance
SUN TRUST         TENNESSEE                  600588  $     3,800.00   11/04/1998  10/28/2003  WILSON COUNTY ROAD     Y   Performance
SUN TRUST         GEORGIA                    600622  $     1,000.00   12/02/1998  12/08/2003  FULTON COUNTY          Y   Performance
SUN TRUST         WASHINGTON                 600674  $     7,442.21   01/27/1999  07/26/2004  PRINCE WILLIAM COUNTY  Y   Performance
SUN TRUST         PHILADELPHIA               600705  $   457,620.48   03/23/1999  09/21/2004  TOWNSHIP OF HORSHAM    Y   Performance
SUN TRUST         FT. MYERS                  600723  $    44,597.39   04/19/1999  11/15/2003  B0CC COLLIER COUNTY    Y   Performance
</TABLE>

                                        9
<PAGE>

<TABLE>
<S>         <C>                 <C>      <C>               <C>            <C>          <C>                       <C>    <C>
SUN TRUST   PHILADELPHIA        600755   $ 95,752.80       05/26/1999     05/27/2004   NORTHAMPTON TOWNSHIP      Y      Performance
SUN TRUST   PHILADELPHIA        600760   $ 50,000.00       06/02/1999     06/06/2004   NORTHAMPTON TOWNSHIP      Y      Performance
SUN TRUST   PHILADELPHIA        600815   $603,429.83       08/20/1999     08/26/2004   HORSHAM WATER & SEWER     Y      Performance
SUN TRUST   FT. MYERS           600858   $ 39,882.43       11/01/1999     11/03/2003   MANATEE COUNTY            N      Performance
SUN TRUST   FT. MYERS           600861   $  5,742.00       11/03/1999     11/15/2003   COLLIER COUNTY            Y      Performance
SUN TRUST   WASHINGTON          600923   $ 98,643.00       02/10/2000     02/13/2004   MONTGOMERY COUNTY         Y      Performance
SUN TRUST   FT. MYERS           600982   $453,478.27       05/05/2000     12/15/2003   COLLIER COUNTY BCC        Y      Performance
SUN TRUST   TENNESSEE           600993   $145,045.00       05/12/2000     05/16/2004   CITY OF BRENTWOOD         Y      Performance
SUN TRUST   MINNESOTA           601009   $ 40,000.00       05/31/2000     06/02/2004   CITY OF OTSEGO            Y      Performance
SUN TRUST   WASHINGTON          601028   $ 80,922.00       06/20/2000     06/23/2004   MONTGOMERY COUNTY         Y      Performance
SUN TRUST   HOME OFFICE         601030   $250,000.00       06/22/2000     08/01/2004   VERMONT INS. COMM         Y      Performance
SUN TRUST   TENNESSEE           601032   $ 99,770.00       06/23/2000     06/30/2004   CITY OF MT JULIET         N      Performance
SUN TRUST   TENNESSEE           601033   $461,231.00       06/23/2000     06/30/2004   CITY OF MT. JULIET        N      Performance
SUN TRUST   TENNESSEE           601034   $423,537.00       06/23/2000     06/30/2004   CITY OF MT VERNON         N      Performance
SUN TRUST   AUSTIN              601119   $ 80,000.00       09/22/2000     09/22/2003   CITY OF AUSTIN            N      Performance
</TABLE>

                                       10
<PAGE>

<TABLE>
<S>         <C>                 <C>      <C>             <C>            <C>          <C>                         <C>    <C>
SUN TRUST   SAN ANTONIO         601265   $  252,905.00   04/18/2001     01/09/2004   CITY OF SAN ANTONIO         N      Performance
SUN TRUST   WASHINGTON          601278   $  195,442.04   05/07/2001     05/08/2004   PRINCE WILLIAM COUNTY       Y      Performance
SUN TRUST   MINNESOTA           601329   $  683,267.84   06/19/2001     06/21/2004   CITY OF COTTAGE GROVE       Y      Performance
SUN TRUST   TENNESSEE           601404   $  200,000.00   11/08/2001     11/15/2003   CITY OF BRENTWOOD           N      Performance
SUN TRUST   TENNESSEE           601405   $  268,648.00   11/08/2001     11/15/2003   CITY OF BRENTWOOD           N      Performance
SUN TRUST   TENNESSEE           601406   $  168,533.00   11/08/2001     11/15/2003   CITY OF BRENTWOOD           N      Performance
SUN TRUST   ILLINOIS            601430   $   25,000.00   01/16/2002     01/18/2004   NAT'L BANK AND TRUST        Y      Performance
SUN TRUST   ILLINOIS            601433   $   25,000.00   01/16/2002     01/18/2004   VIJAY AND DOLLY GUPTA       Y      Performance
SUN TRUST   TENNESSEE           601438   $  339,500.00   01/22/2002     11/10/2003   CITY OF FRANKLIN            N      Performance
SUN TRUST   ILLINOIS            601439   $   25,000.00   01/22/2002     01/16/2004   DEMYER FAMILY               N      Performance
SUN TRUST   TENNESSEE           601448   $   65,150.00   01/28/2002     01/15/2004   CITY OF FRANKLIN            N      Performance
SUN TRUST   MINNESOTA           601481   $  222,400.00   03/28/2002     04/03/2004   CITY OF EAGAN               Y      Performance
SUN TRUST   S. CALIFORNIA-      601484   $  250,000.00   04/23/2002     04/04/2004   STRATEGIC CAPITAL RESOUR    Y      Performance
            NORTH
SUN TRUST   MINNESOTA           601492   $  175,140.70   04/08/2002     04/08/2004   CITY OF CHANHASSEN          Y      Performance
SUN TRUST   RALEIGH             601508   $1,483,346.00   04/23/2002     05/05/2004   CITY OF RALEIGH             N      Performance
</TABLE>

                                       11
<PAGE>

<TABLE>
<S>         <C>                 <C>      <C>             <C>           <C>          <C>                          <C>    <C>
SUN TRUST   PHILADELPHIA        601524   $  113,147.01   05/15/2002    05/15/2004   N PENN WATER AUTHORITY       Y      Performance
SUN TRUST   ORLANDO             601562   $  500,000.00   06/20/2002    05/31/2004   AKERMAN, SENTERFITT & EIDS   N      Performance
SUN TRUST   S CALIFORNIA        601570   $  246,691.00   06/28/2002    10/31/2003   STATE STREET BANK & TRUST    N      Performance
SUN TRUST   FREDERICKSBURG      601577   $1,168,913.00   07/12/2002    06/30/2004   STAFFORD COUNTY              Y      Performance
SUN TRUST   FREDERICKSBURG      601578   $   53,438.00   07/12/2002    06/30/2004   STAFFORD COUNTY              Y      Performance
SUN TRUST   ILLINOIS            601594   $   19,750.00   07/29/2002    07/24/2004   KANE COUNTY DOT              N      Performance
SUN TRUST   ILLINOIS            601598   $   30,000.00   07/31/2002    07/30/2004   ALOYSIUS ELFERING            Y      Performance
SUN TRUST   MINNESOTA           601601   $  918,778.96   08/07/2002    08/12/2004   CITY OF COTTAGE GROVE        Y      Performance
SUN TRUST   FREDERICKSBURG      601603   $   58,607.00   08/09/2002    08/08/2004   STAFFORD COUNTY              Y      Performance
SUN TRUST   SACRAMENTO          601605   $  217,500.00   08/15/2002    08/16/2004   LENNAR WINNCREST, LLC        N      Performance
SUN TRUST   FREDERICKSBURG      601619   $   31,964.00   08/30/2002    09/03/2004   STAFFORD COUNTY              Y      Performance
SUN TRUST   MINNESOTA           601620   $   18,000.00   08/30/2002    09/01/2004   QUEST                        Y      Performance
SUN TRUST   MINNESOTA           601623   $   23,865.00   09/05/2002    09/10/2004   CITY OF PRIOR LAKE           Y      Performance
SUN TRUST   CLEVELAND           601628   $  664,479.00   09/18/2002    09/20/2004   CITY OF BROADVIEW HTS        Y      Performance
SUN TRUST   TENNESSEE           601636   $   30,000.00   09/30/2002    10/01/2004   CITY OF BRENTWOOD            Y      Performance
</TABLE>

                                       12
<PAGE>

<TABLE>
<S>         <C>                 <C>      <C>             <C>           <C>          <C>                          <C>    <C>
SUN TRUST   MICHIGAN            601640   $1,162,524.00   10/02/2002    10/02/2003   WASHTENAW COUNTY DRAIN       Y      Performance
SUN TRUST   MICHIGAN            601641   $   10,875.00   10/02/2002    10/03/2003   CANTON TOWNSHIP              N      Performance
SUN TRUST   FREDERICKSBURG      601642   $  204,956.25   10/03/2002    10/05/2004   STAFFORD COUNTY              Y      Performance
SUN TRUST   MICHIGAN            601643   $   99,000.00   10/04/2002    10/08/2004   WASHTENAW COUNTY ROAD        N      Performance
SUN TRUST   MARYLAND            601650   $  336,464.27   10/17/2002    10/16/2003   CITY OF BRUNSWICK            Y      Performance
SUN TRUST   MARYLAND            601655   $  167,354.90   10/17/2002    10/16/2003   CITY OF BRUNSWICK            Y      Performance
SUN TRUST   ILLINOIS            841187   $   50,000.00   05/06/2003    05/06/2004   COSMOPOLITAN NATL BK OF      N      Financial
                                                                                    CHICAGO
SUN TRUST   PC/BRE-LIFESTYLES   841302   $  148,502.10   05/29/2003    06/01/2004   SOMERSET COUNTY              Y      Financial
SUN TRUST   PC/BRE-LIFESTYLES   841303   $  157,932.40   05/29/2003    08/31/2004   SOMERSET COUNTY              N      Financial
SUN TRUST   CENTRAL NEW JERSEY  841304   $   25,000.00   05/29/2003    12/15/2003   STATE LAND CORPORATION       N      Financial
SUN TRUST   CENTRAL NEW JERSEY  841305   $  100,000.00   05/29/2003    12/15/2003   STATE LAND CORPORATION       N      Financial
SUN TRUST   MARYLAND            841361   $   65,500.00   06/10/2003    06/11/2004   HARFORD COUNTY GOVERNMENT    Y      Financial
SUN TRUST   CENTRAL NEW JERSEY  841367   $  100,000.00   06/10/2003    04/01/2004   CARL BACHSTADT               N      Financial
SUN TRUST   GEORGIA             841465   $  100,000.00   06/27/2003    06/26/2004   MANSELL & JOHNSON            N      Financial
SUN TRUST   ORLANDO             841588   $  510,150.00   07/16/2003    02/18/2004   AKERMAN SENTERFITT EIDSON    N      Financial
</TABLE>

                                       13
<PAGE>

<TABLE>
<S>         <C>                 <C>      <C>             <C>           <C>          <C>                          <C>    <C>
SUN TRUST   JACKSONVILLE         841640  $  400,000.00   07/24/2003    02/01/2004   BAILET & BLACKARD            N      Financial
SUN TRUST   FREDERICKSBURG       841664  $  303,381.25   07/28/2003    07/29/2005   STAFFORD COUNTY              Y      Financial
SUN TRUST   PHOENIX              841753  $   40,283.64   08/14/2003    08/31/2004   LAWYERS TITLE OF AZ          N      Financial
SUN TRUST   PHOENIX              841754  $   42,669.55   08/14/2003    08/31/2004   LAWYERS TITLE OF AZ          N      Financial
SUN TRUST   PHOENIX              841755  $   30,727.14   08/14/2003    08/31/2004   LAWYERS TITLE OF AZ          N      Financial
SUN TRUST   MINNESOTA            841782  $   38,400.00   08/21/2003    08/22/2004   CITY OF MAPLE GROVE          N      Financial
SUN TRUST   SAN ANTONIO          841924  $  465,670.00   09/17/2003    09/17/2004   ALAMO TITLE COMPANY          N      Financial
SUN TRUST   SAN ANTONIO          841926  $  407,000.00   09/17/2003    09/17/2004   ALAMO TITLE COMPANY          N      Financial
SUN TRUST                       F841932  $   35,000.00   09/24/2003    09/17/2004   COSMOPOLITAN NATL BK OF      Y      Financial
                                                                                    CHICAGO
SUN TRUST   ILLINOIS            F840611  $    3,500.00   02/27/2003    02/27/2004   VILLAGE OF PALOS PARK        N      Financial
SUN TRUST   PHOENIX             F840747  $1,627,000.00   03/11/2003    03/04/2004   FIRST AMERICAN TITLE INS     N      Financial
SUN TRUST   MARYLAND            P000022  $2,072,251.24   10/24/2002    10/25/2003   CITY OF BRUNSWICK            Y      Performance
SUN TRUST   MARYLAND            P000023  $2,357,953.56   10/24/2002    10/25/2003   CITY OF BRUNSWICK            Y      Performance
SUN TRUST   MARYLAND            P000024  $   62,572.12   10/24/2002    10/25/2003   CITY OF BRUNSWICK            Y      Performance
SUN TRUST   PHILADELPHIA        P000029  $  938,047.26   10/28/2002    10/30/2004   TOWNSHIP OF WILLISTOWN       Y      Performance
</TABLE>

                                       14
<PAGE>

<TABLE>
<S>         <C>              <C>       <C>            <C>            <C>          <C>                              <C>  <C>
SUN TRUST   PHILADELPHIA     P000030   $ 192,954.30   10/28/2002     10/30/2004   TOWNSHIP OF WILLISTOWN           Y    Performance
SUN TRUST   PHILADELPHIA     P000033   $ 300,000.00   10/29/2002     07/31/2004   GENERAL RESIDENTIAL HOLDINGS,    N    Performance
SUN TRUST   MARYLAND         P000042   $ 990,000.00   11/01/2002     10/31/2003   CITY OF BRUNSWICK                Y    Performance
SUN TRUST   MARYLAND         P000043   $ 675,000.00   11/01/2002     10/31/2003   CITY OF BRUNSWICK                Y    Performance
SUN TRUST   MINNESOTA        P000074   $  55,000.00   11/18/2002     11/16/2003   CITY OF WOODBURY                 N    Performance
SUN TRUST   DIVOSTA          P000101   $ 250,000.00   11/27/2002     04/30/2004   COLLINS, BROWN, CALDWELL         N    Performance
SUN TRUST   MARYLAND         P000109   $ 150,000.00   12/03/2002     12/02/2003   ABRAMOFF, NEUBERGER              Y    Performance
SUN TRUST   FREDERICKSBURG   P000131   $  71,628.75   12/13/2002     12/12/2004   STAFFORD COUNTY                  Y    Performance
SUN TRUST   ORLANDO          P000135   $  30,288.00   12/16/2002     01/15/2004   ORANGE COUNTY CONSTRUCTION       N    Performance
SUN TRUST   MINNESOTA        P000144   $  28,000.00   12/18/2002     12/18/2003   CITY OF WOODBURY                 N    Performance
SUN TRUST   RALEIGH          P000238   $  60,740.61   01/22/2003     01/21/2004   CITY OF RALEIGH                  N    Performance
SUN TRUST   FREDERICKSBURG   P000240   $ 761,567.00   01/22/2003     01/23/2005   STAFFORD COUNTY                  Y    Performance
SUN TRUST   GEORGIA          P000247   $ 100,000.00   01/24/2003     01/31/2004   MCGINNIS, LLC                    N    Performance
SUN TRUST   MINNESOTA        P000261   $  18,900.00   01/29/2003     01/22/2004   QUEST (US WEST)                  Y    Performance
SUN TRUST   ILLINOIS         P000286   $ 114,855.30   02/04/2003     01/30/2004   IL-AMERICAN WATER CO             N    Performance
</TABLE>

                                       15
<PAGE>

<TABLE>
<S>         <C>              <C>       <C>            <C>            <C>          <C>                              <C>  <C>
SUN TRUST   NEW ENGLAND      P000338   $  37,500.00   02/25/2003     02/28/2004   FREDERICK F. SCHALLER, JR        N    Performance
SUN TRUST   TAMPA BAY        P000353   $  25,000.00   03/04/2003     03/07/2004   MEADOW PT GEN PARTNERSHIP        N    Performance
SUN TRUST   PHILADELPHIA     P000369   $ 219,743.88   04/08/2003     04/09/2004   NORTH PENN WATER                 Y    Performance
SUN TRUST   ILLINOIS         P000375   $ 200,000.00   03/10/2003     02/28/2004   CHICAGO TITLE/G STADE            N    Performance
SUN TRUST   FREDERICKSBURG   P000404   $ 761,567.00   03/15/2003     03/20/2005   STAFFORD COUNTY                  Y    Performance
SUN TRUST   FREDERICKSBURG   P000440   $ 135,907.00   04/01/2003     03/31/2005   STAFFORD COUNTY                  Y    Performance
SUN TRUST   ILLINOIS         P000442   $ 187,705.00   04/02/2003     03/31/2004   ILLINOIS AM WATER CO             N    Performance
SUN TRUST   ILLINOIS         P000443   $  87,734.00   04/02/2003     03/31/2004   ILLINOIS AM WATER CO             N    Performance
SUN TRUST   FREDERICKSBURG   P000482   $ 104,949.38   04/22/2003     04/26/2005   STAFFORD COUNTY BOD              Y    Performance
SUN TRUST   TENNESSEE        P000483   $  24,844.00   04/23/2003     04/23/2005   CITY OF BRENTWOOD                Y    Performance
SUN TRUST   TENNESSEE        P000484   $  31,500.00   04/23/2003     04/23/2005   METRO WATER AND SEWER            N    Performance
SUN TRUST   TENNESSEE        P000485   $ 115,500.00   04/23/2003     04/23/2005   METRO DEPT OF WATER AND          N    Performance
                                                                                  SEWERAGE
SUN TRUST   FREDERICKSBURG   P000537   $ 774,743.00   07/16/2003     07/16/2005   STAFFORD COUNTY                  Y    Performance
SUN TRUST   TUCSON           P000665   $ 114,978.16   07/25/2003     07/27/2004   TRICO ELECTRIC COOP              Y    Performance
SUN TRUST   TENNESSEE        P000682   $  49,345.00   08/04/2003     08/05/2005   CITY OF BRENTWOOD                N    Performance
</TABLE>

                                       16
<PAGE>

<TABLE>
<S>         <C>              <C>       <C>            <C>            <C>          <C>                              <C>  <C>
SUN TRUST   ILLINOIS         P000695   $ 700,000.00   08/14/2003     08/08/2005   KANE COUNTY                      N    Performance
SUN TRUST   WASHINGTON       P000724   $  88,000.00   08/21/2003     08/21/2004   LOUDOUN COUNTY                   Y    Performance
SUN TRUST   MINNESOTA        P000731   $  20,000.00   08/26/2003     08/31/2004   CITY OF MAPLE GROVE              Y    Performance
SUN TRUST   WASHINGTON       P000747   $  18,900.00   09/03/2003     09/08/2004   PRINCE WILLIAM COUNTY            Y    Performance
SUN TRUST   WASHINGTON       P000748   $ 122,192.91   09/03/2003     09/08/2004   PRINCE WILLIAM COUNTY            Y    Performance
SUN TRUST   TENNESSEE        P000754   $   6,000.00   09/04/2003     11/15/2004   METRO WATER SEWER                N    Performance
SUN TRUST   TENNESSEE        P000755   $  10,000.00   09/04/2003     11/15/2004   METRO WATER & SEWER              N    Performance
SUN TRUST   ILLINOIS         P000782   $ 154,893.75   09/18/2003     09/23/2005   KANE COUNTY DOT                  N    Performance
SUN TRUST   TENNESSEE        P000783   $   3,900.00   09/17/2003     09/22/2004   NOLENSVILLE/COLLEGE UTILITY      N    Performance
SUN TRUST   TENNESSEE        P000784   $  80,000.00   09/17/2003     09/22/2005   CITY OF BRENTWOOD                Y    Performance
SUN TRUST   TENNESSEE        P000785   $  98,250.00   09/17/2003     09/22/2005   CITY OF BRENTWOOD                Y    Performance
SUN TRUST                    P000801   $   6,140.00   09/23/2003     09/23/2004   CHARTER TOWNSHIP OF SUPERIOR     N    Performance
SUN TRUST                    P000802   $  76,550.00   09/23/2003     09/23/2004   CHARTER TOWNSHIP OF SUPERIOR     N    Performance
SUN TRUST                    P000803   $   8,500.00   09/23/2003     09/23/2005   METRO WATER & SEWER              N    Performance
SUN TRUST                    P000804   $ 108,306.00   09/23/2003     09/22/2004   CITY OF AUSTIN TEXAS             N    Performance
</TABLE>

                                       17
<PAGE>

<TABLE>
<S>         <C>              <C>       <C>            <C>            <C>          <C>                              <C>  <C>
SUN TRUST   RALEIGH          P000811   $ 417,609.00   09/25/2003     11/30/2004   CITY OF RALEIGH                  N    Performance
SUN TRUST   SC-HILTON HEAD   P000080   $  10,000.00   11/21/2002     12/31/2003   WEATHER SHIELD MFG INC           N    Performance
SUN TRUST                    F841974   $ 375,000.00   09/29/2003     10/01/2005   HILL, WARD AND HENDERSON         Y    Financial
SUN TRUST                    P000814   $  40,000.00   09/29/2003     10/01/2005   CITY OF MAPLE GROVE              Y    Performance
</TABLE>

                                       18
<PAGE>

                                 SCHEDULE 1.1(c)

                                 PERMITTED LIENS

                                      None

                                        1
<PAGE>

                                  SCHEDULE 6.10

                                  INDEBTEDNESS

                                      None

                                        1
<PAGE>

                                  SCHEDULE 6.11

                                   LITIGATION

                                      None

                                       1

<PAGE>

                                  SCHEDULE 6.15

                       SUBSIDIARIES AS OF AUGUST 31, 2003

<TABLE>
<CAPTION>
                                                         STATE OF     SHARES                                              OBLIGATION
                         NAME                         INCORPORATION    O/S                     OWNED BY                     SHARES
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>            <C>      <C>                                         <C>
1.   56th and Lone Mountain, L.L.C.                      Arizona                    Del Webb's Coventry Homes, Inc.
2.   Abacoa Homes, Inc.                                  Florida       5,000           DiVosta and Company, Inc.              5,000
3.   American Title of the Palm Beaches Corporation      Michigan      1,000       Pulte Diversified Companies, Inc.          1,000
4.   Andrea's Court, S.E.                              Puerto Rico                Pulte International Building Corp.
5.   Anthem Arizona L.L.C. (Arizona)                     Arizona                            Bellasera Corp.
6.   Asset Five Corp.                                    Arizona         100             Del Webb Corporation                   100
7.   Asset One Corp.                                     Arizona       1,000             Del Webb Corporation                 1,000
8.   Asset Seven Corp.                                   Arizona       1,711             Del Webb Corporation                 1,711
9.   August Woods, LLC                                   Maryland                       Pulte Home Corporation
10.  Bel North, LLC                                      Maryland                           Wil Corporation
11.  Bellasera Corp.                                     Arizona       1,000             Del Webb Corporation                 1,000
12.  Butterfield Properties LLC                          Michigan                        Pulte Homes of Ohio L.L.C.
13.  Campus Lakes, LLC                                   Maryland                       Pulte Home Corporation
14.  Carr's Grant, L.L.C.                                Maryland                       Pulte Home Corporation
15.  Chandler DJ Basin, LLC                              Michigan                  Chandler Natural Resources Corp.
16.  Chandler Natural Resources Corporation              Michigan      1,000            Pulte Home Corporation                1,000
17.  Chase Triple M, LLC                                 Delaware                       Pulte Home Corporation
18.  City Homes Development L.L.C.                       Michigan                          Pulte Homes, Inc.
19.  Ciudad Riviera, S.A. de C.V.                         Mexico         500        Controladora PHC, S.A. DE C.V.              500
20.  Clairmont, L.L.C.                                   Michigan        100            Pulte Home Corporation                  100
21.  Coachman Development, LLC                           Michigan                   Pulte Homes of New Engkand, LLC
22.  Contractors Insurance Company of North America,      Hawaii                        NABIC/Pulte Homes, Inc.
     Inc. a Risk Retention Group
23.  Controladora PHC, S.A. DE C.V.                       Mexico     499,955       Pulte International-Mexico, Inc.         499,955
                                                                                        Pulte Home Corporation
24.  Corta Bella Golf Club, LLC                          Michigan                       Pulte Home Corporation
25.  Dean Realty Company                                 Michigan        100            Pulte Home Corporation                  100
26.  Del E. Webb Development Co., L.P.                   Delaware                     Del Webb Communities, Inc.
                                                                                  Del Webb Construction Services Co.
27.  Del E. Webb Financial Corporation                   Arizona       1,000             Del Webb Corporation                 1,000
28.  Del E. Webb Foothills Corporation                   Arizona       1,000  Del Webb Commercial Properties Corporation      1,000
29.  Del E. Webb Land Conservancy                        Arizona

<CAPTION>
                                                                OPTIONS    MATERIAL
                         NAME                          OWNED      O/S        SUB?
-----------------------------------------------------------------------------------
<S>                                                   <C>       <C>        <C>
1.   56th and Lone Mountain, L.L.C.                      50%      No
2.   Abacoa Homes, Inc.                                 100%      No         Yes
3.   American Title of the Palm Beaches Corporation     100%      No
4.   Andrea's Court, S.E.                                50%      No
5.   Anthem Arizona L.L.C. (Arizona)                    100%      No         Yes
6.   Asset Five Corp.                                   100%      No
7.   Asset One Corp.                                    100%      No
8.   Asset Seven Corp.                                   89%      No         Yes
9.   August Woods, LLC                                  100%      No
10.  Bel North, LLC                                     100%      No
11.  Bellasera Corp.                                    100%      No         Yes
12.  Butterfield Properties LLC                         100%      No
13.  Campus Lakes, LLC                                  100%      No
14.  Carr's Grant, L.L.C.                               100%      No
15.  Chandler DJ Basin, LLC                             100%      No
16.  Chandler Natural Resources Corporation             100%      No
17.  Chase Triple M, LLC                              51.61%      No
18.  City Homes Development L.L.C.                       50%      No
19.  Ciudad Riviera, S.A. de C.V.                        25%      No
20.  Clairmont, L.L.C.                                  100%      No
21.  Coachman Development, LLC                          100%      No
22.  Contractors Insurance Company of North America
     Inc. a Risk Retention Group
23.  Controladora PHC, S.A. DE C.V.                   99.99%      No
                                                       0.01%
24.  Corta Bella Golf Club, LLC                         100%      No
25.  Dean Realty Company                                100%      No
26.  Del E. Webb Development Co., L.P.                   99%      No
                                                          1%
27.  Del E. Webb Financial Corporation                  100%      No
28.  Del E. Webb Foothills Corporation                  100%      No
29.  Del E. Webb Land Conservancy
</TABLE>

                                       1

<PAGE>

<TABLE>
<CAPTION>
                                                         STATE OF     SHARES                                              OBLIGATION
                         NAME                         INCORPORATION    O/S                     OWNED BY                     SHARES
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>            <C>      <C>                                         <C>
30.  Del Webb California Corp.                           Arizona         250         Del Webb Corporation                      250
31.  Del Webb Commercial Properties Corporation          Arizona       1,000         Del Webb Corporation                    1,000
32.  Del Webb Communities, Inc.                          Arizona     751,852         Del Webb Corporation                  751,852
33.  Del Webb Community Management Co.                   Arizona       1,000     Pulte Arizona Services, Inc.                1,000
34.  Del Webb Conservation Holding Corp.                 Arizona         100      Del Webb Communities, Inc.                   100
35.  Del Webb Construction Services Co.                  Arizona         100         Del Webb Corporation                      100
36.  Del Webb Corporation                                Delaware        100           Pulte Homes, Inc.                       100
37.  Del Webb Golf Corp.                                 Arizona       1,000         Del Webb Corporation                    1,000
38.  Del Webb Home Construction, Inc.                    Arizona         100       Del Webb Communities, Inc                   100
39.  Del Webb Homes, Inc.                                Arizona       1,000         Del Webb Corporation                    1,000
40.  Del Webb Limited Holding Co.                        Arizona       1,000       Del Webb Communities, Inc                 1,000
41.  Del Webb Midatlantic Corp.                          Arizona         100         Del Webb Corporation                      100
42.  Del Webb Mortgage Corporation                       Arizona     400,000          Pulte Mortgage LLC                   400,000
43.  Del Webb Property Corp.                             Arizona         100         Del Webb Corporation                      100
44.  Del Webb Purchasing Company of Illinois, Inc.       Arizona       1,000         Del Webb Corporation                    1,000
45.  Del Webb Southwest Co.                              Arizona       1,000  Del Webb Construction Services Co.             1,000
46.  Del Webb Texas Limited Partnership                  Arizona                 Del Webb Limited Holding Co.
                                                                                     Del Webb Southwest Co.
47.  Del Webb Texas Title Agency Co.                     Arizona       1,000         Del Webb Southwest Co                   1,000
48.  Del Webb Title Company of Nevada, Inc.               Nevada         100         Del Webb Corporation                      100
49.  Del Webb's Contracting Services, Inc.               Arizona       1,000       Del Webb Communities, Inc                 1,000
50.  Del Webb's Coventry Homes Construction Co.          Arizona       1,000    Del Webb's Coventry Homes, Inc.              1,000
51.  Del Webb's Coventry Homes of Nevada                 Arizona       1,000    Del Webb's Coventry Homes, Inc.              1,000
52.  Del Webb's Spruce Creek Communities, Inc.           Arizona       1,000         Del Webb Corporation                    1,000
53.  Del Webb's Sunflower of Tucson, Inc.                Arizona       1,000      Del Webb Communities, Inc.                 1,000
54.  Del Webb's Coventry Homes, Inc.                     Arizona       1,000         Del Webb Corporation                    1,000
55.  Desarrolladous Urbanos (Canooanas) SE             Puerto Rico               Pulte International Building
56.  Detroit City Homes L.L.C.                           Michigan                      Pulte Homes, Inc.
57.  Devtex Land, L.P.                                    Texas                           PN II, Inc.
                                                                                          PN I, Inc.
58.  DiVosta and Company, Inc.                           Florida     270,000   Pulte Diversified Companies, Inc.           270,000
59.  DiVosta Building Corporation                        Florida       5,000       DiVosta and Company, Inc.                 5,000
60.  DiVosta Homes Sales, Inc.                           Florida       1,000       DiVosta and Company, Inc.                 1,000
61.  DiVosta Homes, Inc.                                 Florida       5,000       DiVosta and Company, Inc.                 5,000
62.  DW Aviation Co.                                     Arizona       1,000         Del Webb Corporation                    1,000
63.  DW Homebuilding Co.                                 Arizona       1,000         Del Webb Corporation                    1,000
64.  Edinburgh Realty Corporation                        Michigan     10,000        Pulte Home Corporation                  10,000
65.  Fallsgrove Associates LLC                           Maryland                   Pulte Home Corporation
66.  Fideicomiso 102412                                   Mexico         222          Pulte Mortgage LLC

<CAPTION>
                                                              OPTIONS  MATERIAL
                         NAME                          OWNED    O/S      SUB?
-------------------------------------------------------------------------------
<S>                                                   <C>     <C>      <C>
30.  Del Webb California Corp.                          100%    No       Yes
31.  Del Webb Commercial Properties Corporation         100%    No
32.  Del Webb Communities, Inc.                         100%    No       Yes
33.  Del Webb Community Management Co.                  100%    No
34.  Del Webb Conservation Holding Corp.                100%    No
35.  Del Webb Construction Services Co.                 100%    No
36.  Del Webb Corporation                               100%    No       Yes
37.  Del Webb Golf Corp.                                100%    No       Yes
38.  Del Webb Home Construction, Inc.                   100%    No       Yes
39.  Del Webb Homes, Inc.                               100%    No
40.  Del Webb Limited Holding Co.                       100%    No       Yes
41.  Del Webb Midatlantic Corp.                         100%    No
42.  Del Webb Mortgage Corporation                      100%    No
43.  Del Webb Property Corp.                            100%    No
44.  Del Webb Purchasing Company of Illinois, Inc.      100%    No
45.  Del Webb Southwest Co.                             100%    No
46.  Del Webb Texas Limited Partnership                  99%    No       Yes
                                                          1%
47.  Del Webb Texas Title Agency Co.                    100%    No
48.  Del Webb Title Company of Nevada, Inc.             100%    No
49.  Del Webb's Contracting Services, Inc.              100%    No
50.  Del Webb's Coventry Homes Construction Co.         100%    No       Yes
51.  Del Webb's Coventry Homes of Nevada                100%    No
52.  Del Webb's Spruce Creek Communities, Inc.          100%    No       Yes
53.  Del Webb's Sunflower of Tucson, Inc.               100%    No
54.  Del Webb's Coventry Homes, Inc.                    100%    No       Yes
55.  Desarrolladous Urbanos (Canooanas) SE               50%    No
56.  Detroit City Homes L.L.C.                           45%    No
57.  Devtex Land, L.P.                                99.90%    No
                                                       0.10%
58.  DiVosta and Company, Inc.                          100%    No       Yes
59.  DiVosta Building Corporation                       100%    No       Yes
60.  DiVosta Homes Sales, Inc.                          100%    No
61.  DiVosta Homes, Inc.                                100%    No       Yes
62.  DW Aviation Co.                                    100%    No
63.  DW Homebuilding Co.                                100%    No
64.  Edinburgh Realty Corporation                       100%    No
65.  Fallsgrove Associates LLC                        35.36%    No
66.  Fideicomiso 102412
</TABLE>

                                       2

<PAGE>

<TABLE>
<CAPTION>
                                               STATE OF      SHARES                                       OBLIGATION
                      NAME                  INCORPORATION     O/S                 OWNED BY                  SHARES
--------------------------------------------------------------------------------------------------------------------
<S>                                         <C>            <C>        <C>                                 <C>
67.   Fieldstone Estates, LLC                  Arizona                       Pulte Home Corporation
68.   First Heights Bank, fsb                   Texas      7,500,100      Pulte Diversified Companies      7,500,100
69.   Florida Building Products, Inc.          Florida         5,000       DiVosta and Company, Inc.           5,000
70.   Florida Club Homes, Inc.                 Florida         5,000       DiVosta and Company, Inc.           5,000
71.   Fox Glen Retreat, LLC                    Michigan                     Pulte Home Corporation
72.   Frederick Holding Corp.                  Michigan        1,000        Pulte Home Corporation             1,000
73.   Gatestone, LLC                           Michigan                     Pulte Home Corporation
74.   GI Development Corporation               Michigan        1,000    Pulte Homes of New England, LLC        1,000
75.   Grand Place Hayward, LLC                California                    Pulte Home Corporation
76.   Grayhaven Estates Limited, L.L.C.        Michigan                        Pulte Homes, Inc.
77.   Great Island Community, LLC              Michigan                   GI Development Corporation
78.   Guaranteed Mortgage Corporation III      Michigan        1,000    Pulte Financial Companies, Inc.        1,000
79.   H. D. Investments I, LLC                 Maryland                         Wil Corporation
80.   Hammock Reserve Development Company      Florida         5,000       DiVosta and Company, Inc.           5,000
81.   Harrison Hills, LLC                      Maryland                     Pulte Home Corporation
82.   Herring Pond Development Corporation     Michigan        1,000    Pulte Homes of New England, LLC        1,000
83.   Highlands One                            Maryland                         Wil Corporation
84.   Hilltop Farms Development, LLC           Michigan                 Pulte Homes of New England LLC
85.   Hipotecaria Su Casita, S.A. de C.V.       Mexico     1,320,136          Pulte Mortgage LLC             335,680
86.   Homesite Solutions Corporation           Michigan        1,000        Pulte Home Corporation             1,000
87.   HydroSource Acquisition, Inc.            Michigan        1,000           Preserve I, Inc.                1,000
88.   Island Walk Development Company          Florida         5,000       DiVosta and Company, Inc.           5,000
89.   Island Walk Realty, Inc.                 Florida           500       DiVosta and Company, Inc.             500
90.   Iteresa, S.A. de C.V.                     Mexico     1,872,688    Fideicomiso (3,395,461 Outst.)
91.   JNN Properties LLC                       Michigan          100        Pulte Home Corporation
92.   Joliet Mortgage Reinsurance Company      Vermont           100          Pulte Mortgage LLC                 100
93.   Lexington Oaks Golf Club, Inc.           Florida         1,000        Pulte Home Corporation             1,000
94.   Lone Tree Golf Club, LLC                 Michigan                     Pulte Home Corporation
95.   Lyons, LC                                Maryland                     Pulte Home Corporation
96.   MALDP Development Corporation            Michigan        1,000    Pulte Homes of New England, LLC        1,000
97.   Marina Operations Corp.                  Arizona         1,000         Sun City Homes, Inc.              1,000
98.   Marquette Title Insurance Company        Vermont       100,000           Pulte Homes, Inc.             100,000
99.   Mayaguez Partners, S. E.               Puerto Rico              Pulte International Building Corp.
100.  Mountain View One LLC                    Arizona                          Asset One Corp.
101.  Mountain View Two LLC                    Arizona                          Del Webb Corp.
102.  Nantar, S. DE R.L. DE C.V.                Mexico                  Controladora PHC, S.A. DE C.V.
                                                                       Pulte International-Mexico, Inc.
103.  New Mexico Asset Corporation             Arizona           100         Del Webb Corporation                100

<CAPTION>

                                                    OPTIONS  MATERIAL
                      NAME                   OWNED    O/S      SUB?
---------------------------------------------------------------------
<S>                                         <C>     <C>      <C>
67.   Fieldstone Estates, LLC                  50%    No
68.   First Heights Bank, fsb                 100%    No
69.   Florida Building Products, Inc.         100%    No       Yes
70.   Florida Club Homes, Inc.                100%    No
71.   Fox Glen Retreat, LLC                   100%    No
72.   Frederick Holding Corp.                 100%    No
73.   Gatestone, LLC                          100%    No
74.   GI Development Corporation              100%    No
75.   Grand Place Hayward, LLC                100%    No
76.   Grayhaven Estates Limited, L.L.C.        99%    No
77.   Great Island Community, LLC             100%    No
78.   Guaranteed Mortgage Corporation III     100%    No
79.   H. D. Investments I, LLC                100%    No
80.   Hammock Reserve Development Company     100%    No
81.   Harrison Hills, LLC                     100%    No
82.   Herring Pond Development Corporation    100%    No
83.   Highlands One                           100%    No
84.   Hilltop Farms Development, LLC          100%    No
85.   Hipotecaria Su Casita, S.A. de C.V.   22.90%    No
86.   Homesite Solutions Corporation          100%    No
87.   HydroSource Acquisition, Inc.           100%    No
88.   Island Walk Development Company         100%    No       Yes
89.   Island Walk Realty, Inc.                100%    No
90.   Iteresa, S.A. de C.V.                           No
91.   JNN Properties LLC                      100%    No
92.   Joliet Mortgage Reinsurance Company     100%    No
93.   Lexington Oaks Golf Club, Inc.          100%    No
94.   Lone Tree Golf Club, LLC                100%    No
95.   Lyons, LC                               100%    No
96.   MALDP Development Corporation           100%    No
97.   Marina Operations Corp.                 100%    No
98.   Marquette Title Insurance Company       100%    No
99.   Mayaguez Partners, S. E.                 50%    No
100.  Mountain View One LLC                    50%    No
101.  Mountain View Two LLC                   100%    No
102.  Nantar, S. DE R.L. DE C.V.            99.30%    No
                                             0.70%
103.  New Mexico Asset Corporation            100%    No
</TABLE>

                                       3

<PAGE>

<TABLE>
<CAPTION>
                                               STATE OF      SHARES                                           OBLIGATION
                      NAME                  INCORPORATION     O/S                 OWNED BY                      SHARES
------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>             <C>       <C>                                     <C>
104.  New Mexico Asset Limited Partnership     Arizona                          New Mexico Asset Corp.
                                                                                  Del Webb Corp.
105.  North American Builders Indemnity        Colorado     300,000              Pulte Homes, Inc.             300,000
      Company
106.  North Valley Enterprise, LLC              Nevada                      Del Webb Communities, Inc.
107.  Oceanside Village, LLC                   Michigan                   Pulte Homes of New England, LLC
108.  One Willowbrook, L.L.C.                  Maryland                           Wil Corporation
                                                                                  PBW Corporation
109.  P & H Clinton Partnership               Ptrshp-not              Pulte Homes of NJ, Limited Partnership
                                              registered
110.  PB Venture L.L.C.                        Michigan                          Pulte Homes, Inc.
111.  PBW Corporation                          Michigan       1,000           Pulte Home Corporation             1,000
112.  PC/BRE Development L.L.C.                Delaware                        PC/BRE Venture L.L.C.
113.  PC/BRE Springfield, L.L.C.               Delaware                        PC/BRE Venture L.L.C.
114.  PC/BRE Venture L.L.C.                    Delaware                          PB Venture L.L.C.
115.  PC/BRE Whitney Oaks L.L.C.               Delaware                        PC/BRE Venture L.L.C.
116.  PC/BRE Winfield L.L.C.                   Delaware                        PC/BRE Venture L.L.C.
117.  PCIC Corporation                         Michigan       1,000             Pulte Mortgage LLC               1,000
118.  PH Arizona LLC                           Michigan         100          50-Pulte Home Corporation             100
                                                                         50-Pulte Development Corporation
119.  PH1 Corporation                          Michigan         100              Pulte Homes, Inc.
120.  PH2 Corporation                          Michigan                          Pulte Home Corp.                  100
121.  PH3 Corporation                          Michigan       1,000          Divosta and Company, Inc.           1,000
122.  PH4 Corporation                          Michigan       1,000            Del Webb Corporation              1,000
123.  PHC Title Corporation                    Michigan       1,000           Pulte Home Corporation             1,000
124.  PHM Title Agency L.L.C.                  Delaware                           TVM Corporation
125.  PHNE Business Trust                   Massachusetts                Pulte Homes Corporation, Trustee
126.  PHS Virginia, Inc.                       Michigan       1,000              Pulte Homes, Inc.               1,000
127.  PHT Building Materials Limited           Michigan                      Pulte Homes of Texas, LP
      Partnership                                                           PHT Operating Company, LLC
128.  PHT Operating Company LLC                Michigan                      Pulte Homes of Texas, LP
129.  PHT Title Agency, L.P.                    Texas                          PHC Title Corporation
                                                                               PHT Title Corporation
130.  PHT Title Corporation                    Michigan       1,000           Pulte Home Corporation             1,000
131.  PN I, Inc.                                Nevada        1,000           Pulte Home Corporation             1,000
132.  PN II, Inc.                               Nevada        1,000           Pulte Home Corporation             1,000
133.  PQL Realty Corporation                   Michigan       1,000           Pulte Home Corporation             1,000
134.  Preserve I, Inc.                         Michigan       1,000           Pulte Home Corporation             1,000
135.  Preserve II, Inc.                        Michigan       1,000           Pulte Home Corporation             1,000
136.  Pulte Argentina Corporation              Michigan      10,000       Pulte International Corporation       10,000

<CAPTION>

                                                    OPTIONS  MATERIAL
                      NAME                   OWNED    O/S      SUB?
---------------------------------------------------------------------
<S>                                         <C>     <C>      <C>
104.  New Mexico Asset Limited Partnership    99%     No
                                               1%
105.  North American Builders Indemnity      100%     No
      Company
106.  North Valley Enterprise, LLC            50%     No
107.  Oceanside Village, LLC                 100%     No
108.  One Willowbrook, L.L.C.                 50%     No
                                              50%
109.  P & H Clinton Partnership              100%     No

110.  PB Venture L.L.C.                      100%     No       Yes
111.  PBW Corporation                        100%     No
112.  PC/BRE Development L.L.C.              100%     No
113.  PC/BRE Springfield, L.L.C.             100%     No
114.  PC/BRE Venture L.L.C.                  100%     No
115.  PC/BRE Whitney Oaks L.L.C.             100%     No
116.  PC/BRE Winfield L.L.C.                 100%     No
117.  PCIC Corporation                       100%     No
118.  PH Arizona LLC                         100%     No
119.  PH1 Corporation                        100%     No
120.  PH2 Corporation                        100%     No
121.  PH3 Corporation                        100%     No
122.  PH4 Corporation                        100%     No
123.  PHC Title Corporation                  100%     No
124.  PHM Title Agency L.L.C.                 63%     No
125.  PHNE Business Trust
126.  PHS Virginia, Inc.                     100%     No
127.  PHT Building Materials Limited          99%     No
      Partnership                              1%
128.  PHT Operating Company LLC              100%     No
129.  PHT Title Agency, L.P.                  99%     No
                                               1%
130.  PHT Title Corporation                  100%     No
131.  PN I, Inc.                             100%     No
132.  PN II, Inc.                            100%     No       Yes
133.  PQL Realty Corporation                 100%     No
134.  Preserve I, Inc.                       100%     No
135.  Preserve II, Inc.                      100%     No
136.  Pulte Argentina Corporation            100%     No
</TABLE>

                                       4

<PAGE>

<TABLE>
<CAPTION>
                                               STATE OF      SHARES                                           OBLIGATION
                      NAME                  INCORPORATION     O/S                 OWNED BY                      SHARES
------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>             <C>       <C>                                     <C>
137.  Pulte Arizona Services, Inc.             Michigan      1,000             PH Arizona, LLC                   1,000
138.  Pulte Bajio Construcciones, S. de         Mexico                Pulte Mexico, S. de R.L. de C.V.
      R.L. de C.V.                                                    Pulte International Mexico, Inc.
139.  Pulte Chile Corporation                  Michigan      1,000     Pulte International Corporation           1,000
140.  Pulte Communities NJ, Limited            Michigan                       Preserve II, Inc.
      Partnership                                                             Preserve I, Inc.
141.  Pulte de Chile Limitada                   Chile                      Pulte Chile Corporation
                                                                            Pulte SA Corporation
142.  Pulte Development Corporation            Michigan      1,000         Pulte Home Corporation                1,000
143.  Pulte Development New Mexico, Inc.       Michigan      1,000         Pulte Home Corporation                1,000
144.  Pulte Diversified Companies, Inc.        Michigan      1,000            Pulte Homes, Inc.                  1,000
145.  Pulte Financial Companies, Inc.          Michigan      1,000            Pulte Homes, Inc.                  1,000
146.  Pulte Funding, Inc.                      Michigan                      Pulte Mortgage LLC
147.  Pulte Home Corporation                   Michigan      1,000    Pulte Diversified Companies, Inc.          1,000
148.  Pulte Home Corporation of The            Michigan      1,000         Pulte Home Corporation                1,000
      Delaware Valley
149.  Pulte Home Sciences of Virginia, LLC     Michigan                      PHS Virginia, Inc.
150.  Pulte Home Sciences, LLC                 Michigan                  Pulte Homes of Michigan LLC
151.  Pulte Homes of Greater Kansas City,      Michigan      1,000         Pulte Home Corporation                1,000
      Inc.
152.  Pulte Homes of Indiana, LLC              Indiana                  Sean/Christopher Homes, Inc.
                                                                            Pulte-IN Corporation
153.  Pulte Homes of Michigan I, Limited       Michigan                             P/MI
      Partnership                                                           Pulte MI Holding Corp
154.  Pulte Homes of Michigan LLC              Michigan                       Pulte Homes, Inc.
155.  Pulte Homes of Minnesota Corporation    Minnesota      1,000         Pulte Home Corporation                1,000
156.  Pulte Homes of New England LLC           Michigan                      PHNE Business Trust
157.  Pulte Homes of New Mexico, Inc.          Michigan      1,000         Pulte Home Corporation                1,000
158.  Pulte Homes of New York, Inc.            Michigan     10,000         Pulte Home Corporation               10,000
159.  Pulte Homes of NJ, LP                    Michigan                      PHC/Delaware Valley
                                                                                 Preserve II
160.  Pulte Homes of Ohio LLC                    Ohio                         Pulte Homes, Inc.
161.  Pulte Homes of PA, LP                    Michigan                      PHC/Delaware Valley
                                                                                 Preserve II
162.  Pulte Homes of South Carolina, Inc.      Michigan      1,000         Pulte Home Corporation                1,000
163.  Pulte Homes of Texas, L.P.                Texas                    Pulte Texas Holdings, Inc.
                                                                                 PN I, Inc.
164.  Pulte Homes Tennessee Limited             Nevada                     RN Acquisition 2 Corp.
      Partnership                                                            Radnor Homes, Inc.
165.  Pulte Homes, Inc.                        Michigan                        Publicly Traded
166.  Pulte Internacional Mexico S. DE          Mexico      50,000              Controladora                    49,500
      R.L. DE C.V.                                                     Pulte International-Mexico, Inc.            500

<CAPTION>

                                                    OPTIONS  MATERIAL
                      NAME                   OWNED    O/S      SUB?
---------------------------------------------------------------------
<S>                                         <S>     <C>      <C>
137.  Pulte Arizona Services, Inc.            100%    No
138.  Pulte Bajio Construcciones, S. de     99.99%    No
      R.L. de C.V.                            .01%
139.  Pulte Chile Corporation                 100%    No
140.  Pulte Communities NJ, Limited            99%    No       Yes
      Partnership                               1%
141.  Pulte de Chile Limitada                  99%    No
                                                1%
142.  Pulte Development Corporation           100%    No       Yes
143.  Pulte Development New Mexico, Inc.      100%    No
144.  Pulte Diversified Companies, Inc.       100%    No       Yes
145.  Pulte Financial Companies, Inc.         100%    No
146.  Pulte Funding, Inc.                     100%    No
147.  Pulte Home Corporation                  100%    No       Yes
148.  Pulte Home Corporation of The           100%    No       Yes
      Delaware Valley
149.  Pulte Home Sciences of Virginia, LLC    100%    No
150.  Pulte Home Sciences, LLC                100%    No
151.  Pulte Homes of Greater Kansas City,     100%    No       Yes
      Inc.
152.  Pulte Homes of Indiana, LLC              50%    No
                                               50%
153.  Pulte Homes of Michigan I, Limited       99%    No
      Partnership                               1%
154.  Pulte Homes of Michigan LLC             100%    No       Yes
155.  Pulte Homes of Minnesota Corporation    100%    No       Yes
156.  Pulte Homes of New England LLC          100%    No       Yes
157.  Pulte Homes of New Mexico, Inc.         100%    No       Yes
158.  Pulte Homes of New York, Inc.           100%    No       Yes
159.  Pulte Homes of NJ, LP                     1%    No       Yes
                                               99%
160.  Pulte Homes of Ohio LLC                 100%    No       Yes
161.  Pulte Homes of PA, LP                     1%    No       Yes
                                               99%
162.  Pulte Homes of South Carolina, Inc.     100%    No
163.  Pulte Homes of Texas, L.P.            99.90%    No       Yes
                                             0.10%    No
164.  Pulte Homes Tennessee Limited         74.40%    No
      Partnership                           25.60%    No
165.  Pulte Homes, Inc.                               No
166.  Pulte Internacional Mexico S. DE         99%    No
      R.L. DE C.V.                              1%
</TABLE>

                                       5

<PAGE>

<TABLE>
<CAPTION>
                                               STATE OF      SHARES                                           OBLIGATION
                      NAME                  INCORPORATION     O/S                 OWNED BY                      SHARES
------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>              <C>      <C>                                     <C>
167.  Pulte International Building             Michigan       1,000    Pulte International Caribbean Corp.      1,000
      Corporation
168.  Pulte International Caribbean Corp.      Michigan       1,000      Pulte International Corporation        1,000
169.  Pulte International Corporation          Michigan       1,000     Pulte Diversified Companies, Inc.       1,000
170.  Pulte International-Mexico, Inc.         Michigan       1,000      Pulte International Corporation        1,000
171.  Pulte Land Company, LLC                  Michigan                         Pulte Homes, Inc.
172.  Pulte Land Development Corporation       Michigan       1,000          Pulte Home Corporation             1,000
173.  Pulte Lifestyle Communities, Inc.        Michigan       1,000          Pulte Home Corporation             1,000
174.  Pulte Mexico Division Centro Sur          Mexico                  Pulte Mexico, S. de R.L. de C.V.
                                                                      Pulte International - Mexico, Inc.
175.  Pulte Mexico Division Norte, S. DE        Mexico                    Pulte Mexico S. DE RL DE C.V.
      RL DE C.V.                                                      Pulte International - Mexico, Inc.
176.  Pulte Mexico, S. de R.L. de C.V.          Mexico                   Controladora PHC, S.A. de C.V.
177.  Pulte Michigan Holdings Corporation      Michigan      10,000          Pulte Home Corporation
178.  Pulte Michigan Services, LLC             Michigan                 Pulte Diversified Companies, Inc.
179.  Pulte Mortgage LLC                       Delaware                      Pulte Home Corporation
180.  Pulte Payroll Corporation                Michigan       1,000          Pulte Home Corporation             1,000
181.  Pulte Real Estate Company                Florida          200            Dean Realty Company                200
182.  Pulte Realty Corporation                 Arizona        1,000             Pulte Homes, Inc.               1,000
183.  Pulte S.R.L.                            Argentina                    Pulte Argentina Corporation
                                                                              Pulte SRL Corporation
184.  Pulte SA Corporation                     Michigan       1,000      Pulte International Corporation        1,000
185.  Pulte Services California, LLC           Michigan                 Marquette Title Insurance Company
186.  Pulte Services Corporation               Michigan       1,000          Pulte Home Corporation             1,000
187.  Pulte SRL Corporation                    Michigan      10,000      Pulte International Corporation       10,000
188.  Pulte Texas Holdings, Inc.               Michigan       1,000                PNII, Inc.                   1,000
189.  Pulte Title Agency of Michigan,          Michigan                       PHC Title Corporation
      L.L.C.
190.  Pulte Title Agency of Minnesota,        Minnesota                       PHC Title Corporation
      L.L.C.
191.  Pulte Title Agency of Ohio, Limited        Ohio                         PHC Title Corporation
      Liability Company
192.  Pulte Trades of North Carolina, LLC      Michigan                      Pulte Home Corporation
193.  Pulte.com, Inc.                          Michigan      10,000             Pulte Homes, Inc.              10,000
194.  Pulte-IN Corporation                     Michigan       1,000        Pulte Homes of Michigan LLC          1,000
195.  Radnor Homes, Inc.                       Michigan       1,000             Pulte Homes, Inc.               1,000
196.  Residencial Riviera, S.A. de C.V.         Mexico                   Controladora PHC, S.A. de C.V.
197.  Residencias del Norte Limitada            Chile                        Pulte Chile Corporation
                                                                              Pulte SA Corporation
198.  Riverwalk of the Palm Beaches            Florida        5,000         DiVosta and Company, Inc.           5,000
      Development Company, Inc.
199.  RN Acquisition 2 Corp.                    Nevada        1,000             Pulte Homes, Inc.               1,000

<CAPTION>
                                                          OPTIONS  MATERIAL
                    NAME                           OWNED    O/S      SUB?
---------------------------------------------------------------------------
<S>                                               <C>     <C>      <C>
167.  Pulte International Building                  100%    No
      Corporation
168.  Pulte International Caribbean Corp.           100%    No
169.  Pulte International Corporation               100%    No
170.  Pulte International-Mexico, Inc.              100%    No
171.  Pulte Land Company, LLC                       100%    No      Yes
172.  Pulte Land Development Corporation            100%    No
173.  Pulte Lifestyle Communities, Inc.             100%    No
174.  Pulte Mexico Division Centro Sur             99.9%    No
                                                     .1%    No
175.  Pulte Mexico Division Norte, S. DE           96.7%    No
      RL DE C.V.                                    3.3%    No
176.  Pulte Mexico, S. de R.L. de C.V.               64%    No
177.  Pulte Michigan Holdings Corporation           100%    No
178.  Pulte Michigan Services, LLC                  100%    No
179.  Pulte Mortgage LLC                            100%    No
180.  Pulte Payroll Corporation                     100%    No
181.  Pulte Real Estate Company                     100%    No
182.  Pulte Realty Corporation                      100%    No      Yes
183.  Pulte S.R.L.                                   50%    No
                                                     50%
184.  Pulte SA Corporation                          100%    No
185.  Pulte Services California, LLC                100%    No
186.  Pulte Services Corporation                    100%    No
187.  Pulte SRL Corporation                         100%    No
188.  Pulte Texas Holdings, Inc.                    100%    No
189.  Pulte Title Agency of Michigan,                49%    No
      L.L.C.
190.  Pulte Title Agency of Minnesota,               80%    No
      L.L.C.
191.  Pulte Title Agency of Ohio, Limited            49%    No
      Liability Company
192.  Pulte Trades of North Carolina, LLC           100%    No
193.  Pulte.com, Inc.                               100%    No
194.  Pulte-IN Corporation                          100%    No      Yes
195.  Radnor Homes, Inc.                            100%    No      Yes
196.  Residencial Riviera, S.A. de C.V.              25%    No
197.  Residencias del Norte Limitada              99.90%    No
                                                   0.10%    No
198.  Riverwalk of the Palm Beaches                 100%    No
      Development Company, Inc.
199.  RN Acquisition 2 Corp.                        100%    No      Yes
</TABLE>

                                       6

<PAGE>

<TABLE>
<CAPTION>
                                               STATE OF      SHARES                                              OBLIGATION
                      NAME                  INCORPORATION     O/S                   OWNED BY                       SHARES
---------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>             <C>       <C>                                        <C>
200.  Sean/Christopher Homes, Inc.             Michigan         750          Pulte Homes of Michigan LLC              750
201.  Shorepointe Village Homes, L.L.C.        Michigan                           Pulte Homes, Inc.
202.  Spa L Builders LLC                      California                       Pulte Home Corporation
203.  Springfield Golf Resort, L.L.C.          Arizona                        PC/BRE Springfield L.L.C.
204.  Springfield Realty Corporation           Michigan       2,500         Pulte Arizona Services, Inc.            2,500
205.  Spruce Creek South Utilities, Inc.       Florida           50   Del Webb's Spruce Creek Communities, Inc.        50
      (Assets sold to Florida
      Water Utility Co. 6/30/00)
206.  Stetson Ventures II, LLC                 Arizona                         Pulte Home Corporation
207.  Sun City Homes, Inc. (formerly Del        Nevada          100             Del Webb Corporation                  100
      E. Webb Finance Company)
208.  Sun City Sales Corporation               Michigan       1,000           Del Webb Communities, Inc             1,000
209.  Sun City Title Agency Co.                Arizona      100,000           Del Webb Communities, Inc           100,000
210.  Sun City Title Agency of Illinois,       Arizona        1,000             Del Webb Corporation                1,000
      Inc.
211.  Sun State Insulation Co., Inc.           Arizona        1,000           Del Webb Communities, Inc             1,000
212.  Terravita Corp.                          Arizona        1,000             Del Webb Corporation                1,000
213.  Terravita Home Construction Co.          Arizona        1,000             Del Webb Corporation                1,000
214.  Trovas Construction Co.                  Arizona        1,000        Del Webb's Coventry Homes, Inc.          1,000
215.  TVM Corporation                          Michigan       1,000            Pulte Home Corporation               1,000
216.  Village Walk Development Company,        Florida        5,000           DiVosta and Company, Inc.             5,000
      Inc.
217.  Wil Corporation                          Michigan       1,000            Pulte Home Corporation               1,000
218.  Wilben II Limited Partnership            Maryland                            PBW Corporation
                                                                                   Wil Corporation
219.  Wilben, LLLP                             Maryland                            Wil Corporation
                                                                                   PBW Corporation
220.  Williams' Field at Perry Hall, LLC       Maryland                            Wil Corporation
221.  Willow Brook Associates Limited       Massachusetts                  Pulte Homes of New England, LLC
      Partnership

<CAPTION>
                                                    OPTIONS  MATERIAL
                      NAME                   OWNED    O/S      SUB?
---------------------------------------------------------------------
<S>                                          <C>    <C>      <C>
200.  Sean/Christopher Homes, Inc.            100%    No       Yes
201.  Shorepointe Village Homes, L.L.C.      82.5%    No
202.  Spa L Builders LLC                     38.6%    No
203.  Springfield Golf Resort, L.L.C.          88%    No
204.  Springfield Realty Corporation          100%    No
205.  Spruce Creek South Utilities, Inc.      100%    No
      (Assets sold to Florida
      Water Utility Co. 6/30/00)
206.  Stetson Ventures II, LLC                100%    No
207.  Sun City Homes, Inc. (formerly Del      100%    No
      E. Webb Finance Company)
208.  Sun City Sales Corporation              100%    No
209.  Sun City Title Agency Co.               100%    No
210.  Sun City Title Agency of Illinois,      100%    No
      Inc.
211.  Sun State Insulation Co., Inc.          100%    No
212.  Terravita Corp.                         100%    No       Yes
213.  Terravita Home Construction Co.         100%    No       Yes
214.  Trovas Construction Co.                 100%    No
215.  TVM Corporation                         100%    No
216.  Village Walk Development Company,       100%    No
      Inc.
217.  Wil Corporation                         100%    No       Yes
218.  Wilben II Limited Partnership            99%    No
                                                1%
219.  Wilben, LLLP                             95%    No
                                                5%
220.  Williams' Field at Perry Hall, LLC      100%    No
221.  Willow Brook Associates Limited          99%    No
      Partnership
</TABLE>
                                       7
<PAGE>

                                SCHEDULE 6.21(b)

                                   INVESTMENTS

                                      None

                                       1
<PAGE>

                                  SCHEDULE 6.25

                           LABOR CONTRACT AND DISPUTES

                                      None

                                       1
<PAGE>

                                  SCHEDULE 11.1

                                     NOTICES

Borrower Address:

Pulte Homes, Inc.
100 Bloomfield Hills Parkway
Suite 300
Bloomfield Hills, MI 48304
Attn: Bruce E. Robinson
Telecopy No.: (248) 433-4529

with a copy to:

Pulte Homes, Inc.
100 Bloomfield Hills
Suite 300
Bloomfield Hills, MI 48304
Attn: Calvin Boyd
Telecopy No.: (248) 433-4529

Bank One as Administrative Agent and Lender

Bank One, NA
131 S. Dearborn
Chicago, IL 60670
Attn: Patt Schiewitz
Telecopy No.: (312) 325-3122

Other Lenders

Citicorp North America, Inc.
390 Greenwich Street - 1st Floor
New York, NY 10013
Attn: Michael Psyllos
Telecopy No.: (212) 723-8380

Comerica Bank
500 Woodward Avenue - MC 3256
Detroit, MI 48226
Attn: Charles Weddell
Telecopy No.: (313) 222-9295

                                       1
<PAGE>

SunTrust Bank
10710 Midlothian Turnpike
Richmond, VA 23235
Attn: Scott Gilpin
Telecopy No.: (804) 594-1139

The Royal Bank of Scotland plc
101 Park Avenue - 12th Floor
New York, NY 10178
Attn: Juanita Baird/Rebecca Zhang
Telecopy No.: (212) 401-1494/1336

UBS AG, Cayman Islands Branch
677 Washington Boulevard
6th Floor South
Stamford, CT 06901
Attn: Christopher Aitkin
Telecopy No.: (203) 719-3888

Credit Lyonnais New York Branch
1301 Avenue of the Americas
New York, NY 10019
Attn: George Lewis
Telecopy No.: (917) 849-5439

Guaranty Bank
8333 Douglas Avenue
11th Floor
Dallas, TX 75225
Attn: Clay Carter
Telecopy No.: (214) 360-1660

Standard Federal Bank N.A.
2600 W. Big Beaver, M0900-420
Troy, MI 48084
Attn: Wayne T. Bota
Telecopy No.: (248) 822-5749

Deutsche Bank Trust Company Americas
60 Wall Street - 45th Fl.
New York, NY 10086
Attn: Christopher Blum
Telecopy No.: (212) 797-0088

                                       2
<PAGE>

Mizuho Corporate Bank, Ltd.
1251 Avenue of the Americas
New York, NY 10020
Attn: Ricky Simmons
Telecopy No.: (212) 354-7205

Washington Mutual Bank, FA
5950 La Place Court
Suite 205
Carlsbad, CA 92008
Attn: Thomas S. Griffin
Telecopy No.: (760) 804-8590

The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch
227 West Monroe Street
Suite 2300
Chicago, IL 60606
Attn: Tom Denio
Telecopy No.: (312) 696-4535

BNP Paribas
209 South LaSalle Street
Suite 500
Chicago, IL 60604
Attn: Thomas Ambrose
Telecopy No.: (312) 977-1380

PNC Bank, National Association
Two Tower Center, 18th Floor
East Brunswick, NJ 08816
Attn: Real Estate Department -- Irene Chan
Telecopy No.: (732) 220-3744

Compass Bank
2850 E. Camelback Road - Suite 140
10060 Skinner Lake Drive
Phoenix, AZ 85016
Attn: Judy Mendoza
Telecopy No.: (602) 840-1031

Fifth Third Bank, Eastern Michigan
1000 Town Center - Suite 1500
Southfield, MI 48075
Attn: Mike Dolson
Telecopy No.: (248) 603-0548

                                       3
<PAGE>

The Northern Trust Company
50 S. LaSalle Street
Chicago, IL 60675
Attn: Mark Taylor
Telecopy No.: (312) 444-7028

The Norinchukin Bank, New York Branch
245 Park Avenue - 29th Floor
New York, NY 10167
Attn: Nicholas A. Fiore
Telecopy No.: (212) 697-5754

The Bank of East Asia Limited
202 Canal Street
New York, NY 10013
Attn: Jay Chen
Telecopy No.: (212) 219-3211

                                       4
<PAGE>

                                   EXHIBIT 1.1

                               SUBSIDIARY GUARANTY

         THIS SUBSIDIARY GUARANTY (this "Guaranty") is made as of the
___________ day of ___________, ____, by the undersigned (collectively, the
"Subsidiary Guarantors") in favor of the Administrative Agent, for the benefit
of the Lenders, under the Credit Agreement referred to below.

                                   WITNESSETH:

         WHEREAS, Pulte Homes, Inc., a Michigan corporation (the "Principal"),
and Bank One, NA, a national banking association having its principal office in
Chicago, Illinois, as Administrative Agent, and certain other Lenders from time
to time party thereto have entered into a certain Credit Agreement dated
_________________, 2003 (as same may be amended or modified from time to time,
the "Credit Agreement"), providing, subject to the terms and conditions thereof,
for extensions of credit to be made by the Lenders to the Principal;

         WHEREAS, the Credit Agreement requires that each of the Subsidiary
Guarantors execute and deliver this Guaranty whereby each of the Subsidiary
Guarantors shall guarantee the payment when due, subject to Section 10 hereof,
of all Guaranteed Obligations, as defined below; and

         WHEREAS, in consideration of the financial and other support that the
Principal has provided, and such financial and other support as the Principal
may in the future provide, to the Subsidiary Guarantors, and because each
Subsidiary Guarantor has determined that executing this Guaranty is in its
interest and to its financial benefit, each of the Subsidiary Guarantors is
willing to guarantee the obligations of the Principal under the Credit
Agreement, any Note and the other Credit Documents;

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1.       Defined Terms. "Guaranteed Obligations" is defined in Section
4 below. Other capitalized terms used herein but not defined herein shall have
the meaning set forth in the Credit Agreement.

         2.       Representations and Warranties. Each of the Subsidiary
Guarantors represents and warrants (which representations and warranties shall
be deemed to have been renewed upon each Extension of Credit under the Credit
Agreement) that:

         (a)      It (i) is a corporation, partnership or limited liability
company duly organized, validly existing and in good standing under the laws of
the state (or other jurisdiction) of its organization, (ii) is duly qualified
and in good standing as a foreign entity and authorized to do

                                       1
<PAGE>

business in every jurisdiction unless the failure to be so qualified, in good
standing or authorized would not have or could not be reasonably expected to
have a Material Adverse Effect and (iii) has the requisite power and authority
to own its properties and to carry on its business as now conducted and as
proposed to be conducted.

         (b)      It (i) has the requisite power and authority to execute,
deliver and perform this Guaranty and any other Credit Document to which it is a
party and to incur the obligations herein and therein provided for and (ii) is
duly authorized to, and has been authorized by all necessary action, to execute,
deliver and perform this Guaranty and any other Credit Document to which it is a
party.

         (c)      Neither the execution and delivery of the Credit Documents,
nor the consummation of the transactions contemplated therein, nor performance
of and compliance with the terms and provisions thereof by it (i) violate or
conflict with any provision of its articles or certificate of incorporation or
bylaws, (ii) violate, contravene or materially conflict with any Requirement of
Law or any other law, regulation (including, without limitation, Regulation D,
O, T, U or X), order, writ, judgment, injunction, decree or permit applicable to
it, (iii) violate, contravene or conflict with contractual provisions of, or
cause an event of default under, any indenture, loan agreement, mortgage, deed
of trust, contract or other agreement or instrument to which it is a party or by
which it may be bound, the violation of which would have or could be reasonably
expected to have a Material Adverse Effect, or (iv) result in or require the
creation of any Lien (other than those contemplated in or created in connection
with the Credit Documents) upon or with respect to its properties.

         (d)      Except for consents, approvals and authorizations which have
been obtained, no consent, approval, authorization or order of, or filing,
registration or qualification with, any court or Governmental Authority or third
party is required in connection with its execution, delivery or performance of
this Guaranty and any other Credit Agreement to which it is a party.

         3.       Covenants. Each of the Subsidiary Guarantors covenants that,
so long as any Lender has any Commitment outstanding under the Credit Agreement
or any of the Guaranteed Obligations shall remain unpaid, that it will, and, if
necessary, will enable the Principal to, fully comply with those covenants and
agreements set forth in the Credit Agreement.

         4.       The Guaranty. Subject to Section 10 hereof, each of the
Subsidiary Guarantors hereby absolutely and unconditionally guarantees, as
primary obligor and not as surety, the full and punctual payment (whether at
stated maturity, upon acceleration or early termination or otherwise, and at all
times thereafter) and performance of the Credit Party Obligations, including
without limitation any such Credit Party Obligations incurred or accrued during
the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, whether or not allowed or allowable in such proceeding
(collectively, subject to the provisions of Section 10 hereof, being referred to
collectively as the "Guaranteed Obligations"). Upon failure by the Principal to
pay punctually any such amount, each of the Subsidiary Guarantors agrees that it
shall forthwith on demand pay to the Administrative Agent for the benefit of the
Lenders and, if applicable, their Affiliates, the amount not so paid at the
place and in the manner specified in the Credit

                                       2
<PAGE>

Agreement, any Note or the relevant Credit Document, as the case may be. This
Guaranty is a guaranty of payment and not of collection. Each of the Subsidiary
Guarantors waives any right to require the Lenders or the Administrative Agent
to sue the Principal, any other guarantor, or any other person obligated for all
or any part of the Guaranteed Obligations, or otherwise to enforce its payment
against any collateral securing all or any part of the Guaranteed Obligations.

         5.       Guaranty Unconditional. Subject to Section 10 hereof, the
obligations of each of the Subsidiary Guarantors hereunder shall be
unconditional and absolute and, without limiting the generality of the
foregoing, shall not be released, discharged or otherwise affected by:

                  (a)      any extension, renewal, settlement, compromise,
         waiver or release in respect of any of the Guaranteed Obligations, by
         operation of law or otherwise, or any obligation of any other guarantor
         of any of the Guaranteed Obligations, or any default, failure or delay,
         willful or otherwise, in the payment or performance of the Guaranteed
         Obligations;

                  (b)      any modification or amendment of or supplement to the
         Credit Agreement, any Note or any other Credit Document;

                  (c)      any release, nonperfection or invalidity of any
         direct or indirect security for any obligation of the Principal under
         the Credit Agreement, any Note, any Collateral Document, any other
         Credit Document, or any obligations of any other guarantor of any of
         the Guaranteed Obligations, or any action or failure to act by the
         Administrative Agent, any Lender or any Affiliate of any Lender with
         respect to any collateral securing all or any part of the Guaranteed
         Obligations;

                  (d)      any change in the corporate or other legal existence,
         structure or ownership of the Principal or any other guarantor of any
         of the Guaranteed Obligations, or any insolvency, bankruptcy,
         reorganization or other similar proceeding affecting the Principal, or
         any other guarantor of the Guaranteed Obligations, or its assets or any
         resulting release or discharge of any obligation of the Principal, or
         any other guarantor of any of the Guaranteed Obligations;

                  (e)      the existence of any claim, setoff or other rights
         which the Subsidiary Guarantors may have at any time against the
         Principal, any other guarantor of any of the Guaranteed Obligations,
         the Administrative Agent, any Lender or any other Person, whether in
         connection herewith or any unrelated transactions;

                  (f)      any invalidity or unenforceability relating to any
         other guarantor of any of the Guaranteed Obligations, for any reason
         related to the Credit Agreement, any Note on any other Credit Document,
         or any provision of applicable law or regulation purporting to prohibit
         the payment by any other guarantor of the Guaranteed Obligations, of
         the principal of or interest on any Note or any other amount payable
         under the Credit Agreement, any Note or any other Credit Document; or

                                       3
<PAGE>

                  (g)      any other act or omission to act or delay of any kind
         by the Principal, any other guarantor of the Guaranteed Obligations,
         the Administrative Agent, any Lender or any other Person or any other
         circumstance whatsoever which might, but for the provisions of this
         paragraph, constitute a legal or equitable discharge of any Subsidiary
         Guarantor's obligations hereunder.

Notwithstanding the foregoing, the Subsidiary Guarantors do not waive defenses
to the Guaranteed Obligations that are available to the Principal, except for
such defenses as may arise by reason of any insolvency, bankruptcy,
reorganization or similar proceeding affecting the Principal.

         6.       Discharge Only Upon Payment In Full: Reinstatement In Certain
Circumstances. Each of the Subsidiary Guarantors' obligations hereunder shall
remain in full force and effect until all Guaranteed Obligations shall have been
indefeasibly paid in full and the Commitments under the Credit Agreement shall
have terminated or expired. If at any time any payment of the principal of or
interest on any Note or any other amount payable by the Principal or any other
party under the Credit Agreement or any other Credit Document is rescinded or
must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of the Principal or otherwise, each of the Subsidiary Guarantor's
obligations hereunder with respect to such payment shall be reinstated as though
such payment had been due but not made at such time.

         7.       Waivers. Each of the Subsidiary Guarantors irrevocably waives
acceptance hereof, presentment, demand, protest and, to the fullest extent
permitted by law, any notice not provided for herein, as well as any requirement
that at any time any action be taken by any Person against the Principal, any
other guarantor of any of the Guaranteed Obligations, or any other Person.

         8.       Subrogation. Each of the Subsidiary Guarantors hereby agrees
not to assert any right, claim or cause of action, including, without
limitation, a claim for subrogation, reimbursement, indemnification or
otherwise, against the Principal arising out of or by reason of this Guaranty or
the obligations hereunder, including, without limitation, the payment or
securing or purchasing of any of the Guaranteed Obligations by any of the
Subsidiary Guarantors unless and until the Guaranteed Obligations are
indefeasibly paid in full, and any commitment to lend under the Credit Agreement
and any other Credit Documents is terminated or has expired.

         9.       Stay of Acceleration. If acceleration of the time for payment
of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy
or reorganization of the Principal, all such amounts otherwise subject to
acceleration under the terms of the Credit Agreement, any Note or any other
Credit Document shall nonetheless be payable by each of the Subsidiary
Guarantors hereunder forthwith on demand by the Administrative Agent made at the
request of the Required Lenders.

         10.      Limitation on Obligations. (i) The provisions of this Guaranty
are severable, and in any action or proceeding involving any state corporate
law, or any state, federal or foreign bankruptcy, insolvency, reorganization or
other law affecting the rights of creditors generally, if

                                       4
<PAGE>

the obligations of any Subsidiary Guarantor under this Guaranty would otherwise
be held or determined to be avoidable, invalid or unenforceable on account of
the amount of such Subsidiary Guarantor's liability under this Guaranty, then,
notwithstanding any other provision of this Guaranty to the contrary, the amount
of such liability shall, without any further action by the Subsidiary
Guarantors, the Administrative Agent or any Lender, be automatically limited and
reduced to the highest amount that is valid and enforceable as determined in
such action or proceeding (such highest amount determined hereunder being the
relevant Subsidiary Guarantor's "Maximum Liability"). This Section 10(a) with
respect to the Maximum Liability of the Subsidiary Guarantors is intended solely
to preserve the rights of the Administrative Agent hereunder to the maximum
extent not subject to avoidance under applicable law, and neither the Subsidiary
Guarantor nor any other person or entity shall have any right or claim under
this Section 10(a) with respect to the Maximum Liability, except to the extent
necessary so that the obligations of the Subsidiary Guarantor hereunder shall
not be rendered voidable under applicable law.

                  (a)      Each of the Subsidiary Guarantors agrees that the
         Guaranteed Obligations may at any time and from time to time exceed the
         Maximum Liability of each Subsidiary Guarantor, and may exceed the
         aggregate Maximum Liability of all other Subsidiary Guarantors, without
         impairing this Guaranty or affecting the rights and remedies of the
         Administrative Agent hereunder. Nothing in this Section 10(b) shall be
         construed to increase any Subsidiary Guarantor's obligations hereunder
         beyond its Maximum Liability.

                  (b)      In the event any Subsidiary Guarantor (a "Paying
         Subsidiary Guarantor") shall make any payment or payments under this
         Guaranty or shall suffer any loss as a result of any realization upon
         any collateral granted by it to secure its obligations under this
         Guaranty, each other Subsidiary Guarantor (each a "Non-Paying
         Subsidiary Guarantor") shall contribute to such Paying Subsidiary
         Guarantor an amount equal to such Non-Paying Subsidiary Guarantor's
         "Pro Rata Share" of such payment or payments made, or losses suffered,
         by such Paying Subsidiary Guarantor. For the purposes hereof, each
         Non-Paying Subsidiary Guarantor's "Pro Rata Share" with respect to any
         such payment or loss by a Paying Subsidiary Guarantor shall be
         determined as of the date on which such payment or loss was made by
         reference to the ratio of (i) such Non-Paying Subsidiary Guarantor's
         Maximum Liability as of such date (without giving effect to any right
         to receive, or obligation to make, any contribution hereunder) or, if
         such Non-Paying Subsidiary Guarantor's Maximum Liability has not been
         determined, the aggregate amount of all monies received by such
         Non-Paying Subsidiary Guarantor from the Principal after the date
         hereof (whether by loan, capital infusion or by other means) to (ii)
         the aggregate Maximum Liability of all Subsidiary Guarantors hereunder
         (including such Paying Subsidiary Guarantor) as of such date (without
         giving effect to any right to receive, or obligation to make, any
         contribution hereunder), or to the extent that a Maximum Liability has
         not been determined for any Subsidiary Guarantors, the aggregate amount
         of all monies received by such Subsidiary Guarantors from the Principal
         after the date hereof (whether by loan, capital infusion or by other
         means). Nothing in this Section 10(c) shall affect any Subsidiary
         Guarantor's several liability for the entire amount of the

                                       5
<PAGE>

         Guaranteed Obligations (up to such Subsidiary Guarantor's Maximum
         Liability). Each of the Subsidiary Guarantors covenants and agrees that
         its right to receive any contribution under this Guaranty from a
         Non-Paying Subsidiary Guarantor shall be subordinate and junior in
         right of payment to all the Guaranteed Obligations. The provisions of
         this Section 10(c) are for the benefit of both the Administrative Agent
         and the Subsidiary Guarantors and may be enforced by any one, or more,
         or all of them in accordance with the terms hereof.

         11.      Application of Payments. All payments received by the
Administrative Agent hereunder shall be applied by the Administrative Agent to
payment of the Guaranteed Obligations in the order of priority set forth in
Section 9.4 of the Credit Agreement unless a court of competent jurisdiction
shall otherwise direct.

         12.      Notices. All notices, requests and other communications to any
party hereunder shall be given or made by telecopier or other writing and
telecopied, or mailed or delivered to the intended recipient at its address or
telecopier number set forth on the signature pages hereof or such other address
or telecopy number as such party may hereafter specify for such purpose by
notice to the Administrative Agent in accordance with the provisions of Section
11.1 of the Credit Agreement. Except as otherwise provided in this Guaranty, all
such communications shall be deemed to have been duly given when transmitted by
telecopier, or personally delivered or, in the case of a mailed notice sent by
certified mail return-receipt requested, on the date set forth on the receipt
(provided, that any refusal to accept any such notice shall be deemed to be
notice thereof as of the time of any such refusal), in each case given or
addressed as aforesaid.

         13.      No Waivers. No failure or delay by the Administrative Agent or
any Lender in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies provided in this Guaranty, the Credit
Agreement, any Note and the other Credit Documents shall be cumulative and not
exclusive of any rights or remedies provided by law.

         14.      No Duty to Advise. Each of the Subsidiary Guarantors assumes
all responsibility for being and keeping itself informed of the Principal's
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations and the nature, scope and
extent of the risks that each of the Subsidiary Guarantors assumes and incurs
under this Guaranty, and agrees that neither the Administrative Agent nor any
Lender has any duty to advise any of the Subsidiary Guarantors of information
known to it regarding those circumstances or risks.

         15.      Successors and Assigns. This Guaranty is for the benefit of
the Administrative Agent and the Lenders and their respective successors and
permitted assigns and in the event of an assignment of any amounts payable under
the Credit Agreement, any Note, or the other Credit Documents, the rights
hereunder, to the extent applicable to the indebtedness so assigned, shall be
transferred with such indebtedness. This Guaranty shall be binding upon each of
the Subsidiary Guarantors and their respective successors and permitted assigns.

                                       6
<PAGE>

         16.      Changes in Writing. Neither this Guaranty nor any provision
hereof may be changed, waived, discharged or terminated orally, but only in
writing signed by each of the Subsidiary Guarantors and the Administrative Agent
with the consent of the Required Lenders.

         17.      Costs of Enforcement. Each of the Subsidiary Guarantors agrees
to pay all costs and expenses including, without limitation, all court costs and
attorneys' fees and expenses paid or incurred by the Administrative Agent or any
Lender or any Affiliate of any Lender in endeavoring to collect all or any part
of the Guaranteed Obligations from, or in prosecuting any action against, the
Principal, the Subsidiary Guarantors or any other guarantor of all or any part
of the Guaranteed Obligations.

         18.      GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY
TRIAL. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAW OF THE STATE OF ILLINOIS. EACH OF THE SUBSIDIARY GUARANTORS HEREBY SUBMITS
TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS AND OF ANY ILLINOIS STATE COURT SITTING IN
CHICAGO, ILLINOIS AND FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS GUARANTY (INCLUDING, WITHOUT LIMITATION, ANY OF THE OTHER
CREDIT DOCUMENTS) OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE
SUBSIDIARY GUARANTORS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION WHICH ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY
SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. EACH OF THE SUBSIDIARY GUARANTORS, AND THE ADMINISTRATIVE AGENT AND THE
LENDERS ACCEPTING THIS GUARANTY, HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         19.      Setoff. Without limiting the rights of the Administrative
Agent or the Lenders under applicable law, if all or any part of the Guaranteed
Obligations is then due, whether pursuant to the occurrence of an Event of
Default or otherwise, then the Guarantor authorizes the Administrative Agent and
the Lenders to apply any sums standing to the credit of the Guarantor with the
Administrative Agent or any Lender of the Administrative Agent or any Lender
toward the payment of the Guaranteed Obligations.

         20.      Taxes, etc. All payments required to be made by any of the
Subsidiary Guarantors hereunder shall be made without setoff or counterclaim and
free and clear of and without deduction or withholding for or on account of, any
present or future taxes, levies, imposts, duties or other charges of whatsoever
nature imposed by any government or any political or taxing authority thereof
(excluding federal taxation of the overall income of any Lender), provided,
however, that if any of the Subsidiary Guarantors is required by law to make
such deduction or

                                       7
<PAGE>

withholding, such Subsidiary Guarantor shall forthwith (i) pay to the
Administrative Agent or any Lender, as applicable, such additional amount as
results in the net amount received by the Administrative Agent or any Lender, as
applicable, equaling the full amount which would have been received by the
Administrative Agent or any Lender, as applicable, had no such deduction or
withholding been made, (ii) pay the full amount deducted to the relevant
authority in accordance with applicable law, and (iii) furnish to the
Administrative Agent or any Lender, as applicable, certified copies of official
receipts evidencing payment of such withholding taxes within 30 days after such
payment is made.

         21.      Supplemental Guarantors. Pursuant to Section 7.12 of the
Credit Agreement, additional Subsidiaries shall become obligated as Subsidiary
Guarantors hereunder (each as fully as though an original signatory hereto) by
executing and delivering to the Administrative Agent a supplemental guaranty in
the form of Exhibit A attached hereto (with blanks appropriately filled in).

IN WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this Guaranty
to be duly executed, under seal, by its authorized officer as of the day and
year first above written.

                                    [Signature of Subsidiary Guarantors]

                                       8
<PAGE>

                                    EXHIBIT A

                              SUPPLEMENTAL GUARANTY

                                     [Date]

Bank One, NA, as Administrative Agent

Ladies and Gentlemen:

                  Reference is hereby made to (i) that certain Credit Agreement,
dated as of ________________, 2003, as amended, among Pulte Homes, Inc., the
lenders from time to time parties thereto (the "Lenders"), and Bank One, NA, as
a Lender and as administrative agent (the "Administrative Agent") on behalf of
itself and the other Lenders (as amended, restated, supplemented or otherwise
modified from time to time, the "Credit Agreement") and (ii) that certain
Guaranty, dated as of even date with the Credit Agreement, executed and
delivered by the Subsidiary Guarantors parties thereto in favor of the
Administrative Agent, for the benefit of the Lenders (as amended, restated,
supplemented or otherwise modified from time to time, the "Guaranty"). Terms not
defined herein which are defined in the Credit Agreement shall have for the
purposes hereof the respective meanings provided therein.

                  In accordance with Section 7.12 of the Credit Agreement and
Section 21 of the Guaranty, the undersigned, [GUARANTOR]____________, a
corporation [limited partnership/limited liability company] organized under the
laws of ___________, hereby elects to be a "Guarantor" for all purposes of the
Credit Agreement "Subsidiary Guarantor" for all purposes of the Guaranty,
respectively, effective from the date hereof.

                  Without limiting the generality of the foregoing, the
undersigned hereby agrees to perform all the obligations of a Subsidiary
Guarantor under, and to be bound in all respects by the terms of, the Guaranty,
to the same extent and with the same force and effect as if the undersigned were
a direct signatory thereto.

                  This Supplemental Guaranty shall be construed in accordance
with and governed by the internal laws of the State of Illinois (but otherwise
without regard to the conflict of laws provisions).

                  IN WITNESS WHEREOF, this Supplemental Guaranty has been duly
executed by the undersigned as of the __ day of ____, 200_.

                                             [GUARANTOR]
                                             By: _______________________________
                                             Name:
                                             Title:

                                       9
<PAGE>

                                   EXHIBIT 1.2

                    INTERCREDITOR AND SUBORDINATION AGREEMENT

         THIS INTERCREDITOR AND SUBORDINATION AGREEMENT (this "Intercreditor
Agreement"), dated as of October 1, 2003, is by and among ASSET SEVEN CORP., an
Arizona corporation ("Asset Seven"), PULTE REALTY CORPORATION, an Arizona
corporation ("Pulte Realty"), each subsidiary of Pulte Homes, Inc. that from
time to time executes an Intercreditor Joinder Agreement (as defined below)
(together with Asset Seven and Pulte Realty, individually a "Subordinated
Creditor" and collectively the "Subordinated Creditors"), BANK ONE, NA, as
administrative agent for the Revolving Credit Lenders from time to time party to
the Revolving Credit Agreement described below (in such capacity, "Bank One"),
and BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION, as trustee for the Noteholders
pursuant to the Indenture described below (in such capacity, the "Trustee").

RECITALS:

         A. Pursuant to the terms of that certain Credit Agreement, dated as of
October 1, 2003 (as amended, modified, supplemented or restated from time to
time, the "Revolving Credit Agreement"), among Pulte Homes, Inc. (the
"Borrower"), the lenders from time to time party thereto (the "Revolving Credit
Lenders") and Bank One, the Revolving Credit Lenders have provided a revolving
credit facility to the Borrower. The obligations of the Borrower under the
Revolving Credit Agreement are guaranteed by certain subsidiaries of the
Borrower (the "Guarantors").

         B. The Borrower has issued and may issue from time to time senior
unsecured notes (the "Senior Notes") pursuant to that certain indenture, dated
as of October 24, 1995, or a supplement thereto (as previously amended, modified
or supplemented and as amended, modified, supplemented or restated from time to
time, the "Indenture").

         C. The Subordinated Creditors are holders of promissory notes (the
"Subordinated Notes") from certain subsidiaries of the Borrower (the "Note
Issuers"), which Subordinated Notes are secured by mortgages on certain real
properties owned by the Note Issuers (the "Collateral").

         D. Each Subordinated Creditor is a subsidiary of the Borrower.

         E. In order to induce the Revolving Credit Lenders and the holders of
the Senior Notes (the "Noteholders") to provide or continue to provide the
financial accommodations to the Borrower under the Revolving Credit Agreement
and the Senior Notes (collectively, the "Senior Loan Documents" and
individually, a "Senior Loan Document"), and because of the direct benefit to
the Subordinated Creditors of such financial accommodations, Bank One and the
Trustee have agreed to enter into this Intercreditor Agreement.

                                       1
<PAGE>

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                                   Definitions

1.1      Certain Defined Terms. For the purposes hereof:

         (a)      "Code" means the Internal Revenue Code of 1986 and the rules
and regulations promulgated thereunder, as amended, modified, succeeded or
replaced from time to time. References to sections of the Code should be
construed also to refer to any successor sections.

         (b)      "Event of Default" means (i) an "Event of Default" as defined
in the Revolving Credit Agreement or (ii) an event of default under the Senior
Notes or the Indenture.

         (c)      "Senior Creditors" means (i) so long as any Senior Obligations
(or commitments with respect thereto) remains outstanding under the Revolving
Credit Agreement, Bank One and (ii) so long as any Senior Obligations (or
commitments with respect thereto) remains outstanding under the Senior Notes,
the Trustee.

         (d)      "Senior Obligations" means (i) the "Credit Party Obligations"
as defined in the Revolving Credit Agreement and (ii) all obligations
(including, without limitation, principal, interest and fees) outstanding under
the Senior Notes.

         (e)      "Subordinated Obligations" means (i) the principal amount of,
and accrued interest (including, without limitation, any interest which accrues
after the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of a Note Issuer) on any Subordinated
Note, and (ii) all other indebtedness, obligations and liabilities of the Note
Issuers to the Subordinated Creditors now existing or hereafter incurred.

         (f)      "Intercreditor Joinder Agreement" means an intercreditor
joinder agreement in substantially the form of Exhibit A attached hereto.

1.2      Other Definitional Provisions. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Intercreditor
Agreement shall refer to this Intercreditor Agreement as a whole and not to any
particular provision of this Intercreditor Agreement, and section, subsection,
schedule and exhibit references are to this Intercreditor Agreement unless
otherwise specified. Defined terms herein shall include in the singular number
the plural and in the plural the singular.

                                       2
<PAGE>

                                   ARTICLE II

                             Terms of Subordination

2.1      Subordination.

         (a)      Each of the Subordinated Creditors agrees, for itself and each
future holder of the Subordinated Obligations held by such Subordinated
Creditor, that the Subordinated Obligations are expressly subordinate and junior
in right of payment (as defined in subsection 2.1(b)) to all Senior Obligations
in all respects.

         (b)      "Subordinate and junior in right of payment" shall mean that:

                  (i)      Upon the occurrence and during the continuance of an
         Event of Default, none of the Subordinated Creditors will, without the
         express prior written consent of the Senior Creditors or unless
         otherwise instructed by the Senior Creditors, take, demand or receive,
         directly or indirectly, by set-off, redemption, purchase or in any
         other manner, any payment on or security for the whole or any part of
         the Subordinated Obligations, and, without the express prior written
         consent of the Senior Creditors or unless otherwise instructed by the
         Senior Creditors, none of the Subordinated Creditors will make demand
         for the payment of or accelerate the scheduled maturities of any
         amounts owing under the Subordinated Obligations.

                  (ii)     Until the Senior Obligations shall have been paid in
         full and satisfied, upon the occurrence and during the continuance of
         an Event of Default, none of the Subordinated Creditors will
         accelerate, declare to be immediately due and payable, enforce or take
         any action to enforce or collect, or otherwise exercise any rights or
         remedies it may possess with respect to the Subordinated Obligations or
         any portion thereof, or take any action to enforce or otherwise
         exercise any rights or remedies with respect to, or realize upon, the
         Collateral, in each case without the prior written consent of the
         Senior Creditors.

                  (iii)    Without limiting the generality of the foregoing
         provisions of this Section 2.1, in the event of any liquidation,
         termination, revocation or other winding-up of a Note Issuer, or in the
         event of any receivership, insolvency, reorganization or bankruptcy
         proceedings, assignment for the benefit of creditors or any proceeding
         by or against a Note Issuer for any relief under any bankruptcy,
         reorganization or insolvency law or laws (federal or state) or any law
         (federal or state) relating to the relief of debtors, readjustment of
         indebtedness, reorganization, composition or extension of indebtedness,
         then, upon the occurrence and during the continuance of an Event of
         Default, unless otherwise agreed to or instructed in writing by the
         Senior Creditors, all Senior Obligations shall first be paid in full
         before any payment or distribution is made in respect of the
         Subordinated Obligations, and any payment or distribution of any kind
         or character (whether in cash, property or securities) that, but for
         the subordination provisions contained herein, would otherwise be
         payable or deliverable to a Subordinated Creditor upon or in respect of
         the Subordinated Obligations, shall instead be paid over or delivered
         to the Senior Creditors or their representatives, and such Subordinated
         Creditor shall not receive any such payment or distribution or any
         benefit therefrom unless and until the Senior Obligations shall have
         been fully paid and satisfied.

2.2      Power of Attorney; Agreement to Cooperate. Each of the Subordinated
Creditors hereby agrees, upon the occurrence of an Event of Default, to duly and
promptly take such action as may

                                       3
<PAGE>

be requested at any time and from time to time by the Senior Creditors, to file
appropriate proofs of claim in respect of the Subordinated Obligations, and to
execute and deliver such powers of attorney, assignment of proofs of claim or
other instruments as may be requested by the Senior Creditors in order to enable
the Senior Creditors to enforce any and all claims upon or in respect of the
Subordinated Obligations and to collect and receive any and all payments or
distributions which may be payable or deliverable at any time upon or in respect
of the Subordinated Obligations.

2.3      Payments Received by a Subordinated Creditor. Should any payment or
distribution or security or realization of the Collateral, or the proceeds of
any thereof, be collected or received by a Subordinated Creditor in respect of
the Subordinated Obligations, and such collection or receipt is received in a
receivership, insolvency, reorganization or bankruptcy proceeding involving a
Note Issuer or is not expressly permitted hereunder, the Subordinated Creditor
will forthwith turn over the same to the Senior Creditors in the form received
(except for endorsement or assignment by the Subordinated Creditor when
necessary) to be applied to the Senior Obligations and, until so turned over,
the same shall be held in trust by the Subordinated Creditor as the property of
the Senior Creditors.

2.4      Subrogation. The Subordinated Creditors shall not be subrogated to the
rights of the Senior Creditors to receive payments or distributions of assets of
the Note Issuers for the Senior Obligations.

2.5      Application of Payments Among Senior Creditors. Any payment with
respect to the Senior Obligations or received by a Senior Creditor pursuant to
the terms of this Intercreditor Agreement shall be applied pro rata to the
Senior Obligations outstanding under the Revolving Credit Agreement and the
Senior Notes based on the aggregate amount of Senior Obligations outstanding
under the Revolving Credit Agreement and the Senior Notes, respectively, on the
date of such payment, as certified by Bank One and the Trustee, respectively, to
the other Senior Creditors.

                                   ARTICLE III

                           Regulations and Warranties

3.1      Each of the Subordinated Creditors represents and warrants to the
Senior Creditors that:

         (a)      Subordinated Obligations. The Subordinated Obligations are
payable solely and exclusively to the Subordinated Creditors and to no other
person, firm, corporation or other entity, without deduction for any defense,
offset or counterclaim.

         (b)      Power and Authority; Authorization; No Violation. Each
Subordinated Creditor has full power, authority and legal right to execute,
deliver and perform this Intercreditor Agreement, and, the execution, delivery
and performance of this Intercreditor Agreement have been duly authorized by all
necessary action on the part of such Subordinated Creditor, do not require any
approval or consent of any holders of any indebtedness or obligations of such
Subordinated Creditor and will not violate any provision of law, governmental
regulation, order

                                       4
<PAGE>

or decree or any provision of any indenture, mortgage, contract or other
agreement to which such Subordinated Creditor is party or by which such
Subordinated Creditor is bound.

         (c)      Consents. No consent, license, approval or authorization of,
or registration or declaration with, any governmental instrumentality, domestic
or foreign, is required in connection with the execution, delivery and
performance by the Subordinated Creditor of this Intercreditor Agreement.

         (d)      Binding Obligation. This Intercreditor Agreement constitutes a
legal, valid and binding obligation of the Subordinated Creditor enforceable in
accordance with its terms.

                                   ARTICLE IV

                  Modification of Senior Obligations; Reliance

4.1      Each of the Subordinated Creditors agrees that, without the necessity
of any reservation of rights against such Subordinated Creditor and without
notice to or further assent by such Subordinated Creditor, (a) any demand for
payment of any Senior Obligation may be continued, and the Senior Obligations or
the liability of the Borrower or any of its subsidiaries for any part thereof,
or any guaranty therefor, or right of offset with respect thereto, may, from
time to time, in whole or in part, be renewed, extended, modified, accelerated,
compromised, waived, surrendered, or released and (b) any document or instrument
evidencing or governing the terms of the Senior Obligations or guaranties or
documents in connection with the Senior Obligations may be amended, modified,
supplemented or terminated, in whole or in part, as the applicable Senior
Creditor may deem advisable from time to time, in each case all without notice
to or further assent by such Subordinated Creditor, which will remain bound
under this Intercreditor Agreement, and all without impairing, abridging,
releasing or affecting the subordination provided for herein, notwithstanding
any such renewal, extension, modification, acceleration, compromise, amendment,
supplement, termination, waiver, surrender or release. Each of the Subordinated
Creditors waives (i) any and all notice of the creation, modification, renewal,
extension or accrual of any of the Senior Obligations and (ii) notice of or
proof of reliance on this Intercreditor Agreement and protest, demand for
payment and notice of an Event of Default. The Senior Obligations shall
conclusively be deemed to have been created, contracted, incurred or continued
in reliance upon this Intercreditor Agreement, and all dealings between or among
the Note Issuers and the Senior Creditors shall be deemed to have been
consummated in reliance upon this Intercreditor Agreement. The Subordinated
Creditors acknowledge and agree that the Senior Creditors, the Revolving Credit
Lenders and the Noteholders have relied upon the subordination provided for
herein in making the Senior Obligations available to the Borrower.

                                    ARTICLE V

              No Transfer of Subordinated Obligations or Collateral

5.1      The Subordinated Creditors will not (a) sell, assign or otherwise
transfer, in whole or in part, any Subordinated Obligation or any Collateral
held by the Subordinated Creditors or any interest therein to any other person
or entity (a "Transferee") other than a Subordinated Creditor

                                       5
<PAGE>

or (b) create, incur or suffer to exist any security interest, lien, charge or
other encumbrance whatsoever upon the Subordinated Obligations or the Collateral
in favor of any Transferee.

                                   ARTICLE VI

                     Joinder of Other Subordinated Creditors

6.1      Any subsidiary of the Borrower that properly elects to be taxed as a
real estate investment trust under Section 856 (c) of the Code may become a
Subordinated Creditor hereunder by executing and delivering an Intercreditor
Joinder Agreement. Upon receipt by the Senior Creditors of an Intercreditor
Joinder Agreement from a subsidiary of the Borrower, such subsidiary shall be
considered a Subordinated Creditor under the terms of this Intercreditor
Agreement.

                                   ARTICLE VII

                                  Miscellaneous

7.1      No Waiver; Cumulative Remedies. No failure or delay on the part of any
Senior Creditor, Revolving Credit Lender or Noteholder in exercising any right,
power or privilege hereunder or under any Senior Loan Document or any other loan
document entered into in connection therewith and no course of dealing between
the Subordinated Creditors and any Senior Creditor, Revolving Credit Lender or
Noteholder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under any other Senior
Loan Document or any other loan document entered into in connection therewith
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder or thereunder. The rights and remedies
provided herein are cumulative and not exclusive of any rights or remedies which
the Senior Creditors, the Revolving Credit Lenders and the Noteholders would
otherwise have. No notice to or demand on any Subordinated Creditor in any case
shall entitle such Subordinated Creditor to any other or further notice or
demand in similar or other circumstances or constitute a waiver of the rights of
the Senior Creditors, the Revolving Credit Lenders and the Noteholders to any
other or further action in any circumstances without notice or demand.

7.2      Further Assurances. The Subordinated Creditors agree, upon the request
of a Senior Creditor, to promptly take such actions, as reasonably requested, as
is necessary to carry out the intent of this Intercreditor Agreement.

7.3      Notices. All notices and other communications with respect to this
Intercreditor Agreement shall have been duly given and shall be effective (a)
when delivered in writing, (b) when transmitted via telecopy (or other facsimile
device) to the number set out below, (c) the business day following the day on
which the same has been delivered prepaid (or on an invoice basis) to a
reputable national overnight air courier service, or (d) the third business day
following the day on which the same is sent by certified or registered mail,
postage prepaid, in each case to the respective parties at the address or
telecopy numbers set forth below or at such other address as such party may
specify by written notice to the other parties hereto.

                                       6
<PAGE>

To Bank One:                        Bank One, NA
                                    131 S. Dearborn Street
                                    Chicago, IL 60670
                                    Attn:   Patt Schiewitz
                                    Ph:     (312) 325-3132
                                    Fax:    (312) 325-3122

To the Trustee:                     Bank One Trust Company, National Association
                                    ____________________________________________
                                    ____________________________________________
                                    ____________________________________________
                                    Attn:  _____________________________________
                                    Ph:    _____________________________________
                                    Fax:   _____________________________________

7.4      Governing Law; Jurisdiction.

         (a)      THIS INTERCREDITOR AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any legal action or
proceeding with respect to this Intercreditor Agreement may be brought in the
courts of the State of New York or of the United States for the Southern
District of New York, and, by execution and delivery of this Intercreditor
Agreement, each party hereto hereby irrevocably accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of such
courts. Each party hereto further irrevocably consents to the service of process
out of any of the aforementioned courts in any such action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to
it at the address for notices pursuant to Section 7.3, such service to become
effective 20 days after such mailing. Nothing herein shall affect the right of a
Senior Creditor to serve process on a Subordinated Creditor in any other manner
permitted by law or to commence legal proceedings or to otherwise proceed
against a Subordinated Creditor in any other jurisdiction.

         (b)      Each party hereto hereby irrevocably waives any objection
which it may now or hereafter have to the laying of venue of any of the
aforesaid actions or proceedings arising out of or in connection with this
Intercreditor Agreement brought in the courts referred to in subsection (a)
hereof and hereby further irrevocably waives and agrees not to plead or claim in
any such court that any such action or proceeding brought in any such court has
been brought in an inconvenient forum.

7.5      Waiver of Jury Trial. EACH OF THE PARTIES TO THIS INTERCREDITOR
AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS INTERCREDITOR
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                                       7
<PAGE>

7.6      Successors and Assigns. This Intercreditor Agreement shall be binding
upon and inure to the benefit of the Senior Creditors, the Subordinated
Creditors, and their respective successors, transferees and assigns.

7.7      Severability. If any provision of any of this Intercreditor Agreement
is determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

7.8      Counterparts. This Intercreditor Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument.
Delivery of executed counterparts by telecopy shall be as effective as an
original and shall constitute a representation that an original will be
delivered.

7.9      Waivers, Amendments, Etc. This Intercreditor Agreement may not be
rescinded or canceled or modified in any way, nor may any provision of this
Intercreditor Agreement be waived or changed without the express prior written
consent thereto of the Senior Creditors.

                                       8
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Intercreditor
Agreement to be executed as of the day and year first above written.

SUBORDINATED CREDITOR:                          ASSET SEVEN CORP.,
                                                an Arizona corporation

                                                By:    _________________________
                                                Name:  _________________________
                                                Title: _________________________

SUBORDINATED CREDITOR:                          PULTE REALTY CORPORATION, an
                                                Arizona corporation

                                                By:    _________________________
                                                Name:  _________________________
                                                Title: _________________________

SENIOR CREDITOR:                                BANK ONE, NA,
                                                as administrative agent for the
                                                Revolving Credit Lenders

                                                By:
                                                Name:
                                                Title:

SENIOR CREDITOR:                                BANK ONE TRUST COMPANY,
                                                NATIONAL ASSOCIATION, as
                                                Trustee

                                                By:    _________________________
                                                Name:  _________________________
                                                Title: _________________________

                                       9
<PAGE>

                                    EXHIBIT A

                     Form of Intercreditor Joinder Agreement

         THIS INTERCREDITOR JOINDER AGREEMENT (the "Agreement"), dated as of
__________________________ is entered into among _________________________, (the
"New REIT") and BANK ONE, N.A. and BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,
in their capacity as Senior Creditors (the "Senior Creditors") under that
certain Intercreditor and Subordination Agreement, dated as of October 1, 2003,
among ASSET SEVEN CORP., an Arizona corporation, PULTE REALTY CORPORATION, an
Arizona corporation, the other Subordinated Creditors party thereto and the
Senior Creditors (as the same may be amended, modified, extended or restated
from time to time, the "Intercreditor Agreement"). All capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the
Intercreditor Agreement.

         1.       The New REIT hereby acknowledges, agrees and confirms that, by
its execution of this Agreement, the New REIT will be deemed to be a
Subordinated Creditor under the Intercreditor Agreement shall have all of the
rights and obligations of a Subordinated Creditor thereunder as if it had
executed the Intercreditor Agreement. The New REIT hereby ratifies, as of the
date hereof, and agrees to be bound by, all of the terms, provisions and
conditions contained in the Intercreditor Agreement, including without
limitation, all of the subordination terms set forth in Article II of the
Intercreditor Agreement.

         2.       This Agreement may be executed in any number of counterparts,
each of which where so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. Delivery of executed
counterparts by telecopy shall be as effective as an original and shall
constitute a representation that an original will be delivered.

         3.       THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.

         IN WITNESS WHEREOF, the New REIT has caused this Agreement to be duly
executed by its authorized officer, as of the day and year first above written.

                                               [NEW REIT]

                                               By:     _________________________
                                               Name:   _________________________
                                               Title:  _________________________

                                       10
<PAGE>

Acknowledged and Accepted

BANK ONE, NA, as administrative agent, in its
capacity as a Senior Creditor

By:     ____________________________
Name:   ____________________________
Title:  ____________________________

BANK ONE TRUST COMPANY, NATIONAL
ASSOCIATION, as Trustee, in its capacity as a Senior
Creditor

By:     ____________________________
Name:   ____________________________
Title:  ____________________________

                                       11
<PAGE>

                                 EXHIBIT 2.1(e)

                            COMMITMENT AND ACCEPTANCE

         This Commitment and Acceptance (this "Commitment and Acceptance") dated
as of_________ , 200_, is entered into among the parties listed on the signature
pages hereof. Capitalized terms used herein and not otherwise defined herein
shall have the meanings attributed to them in the Credit Agreement (as defined
below).

                             PRELIMINARY STATEMENTS

         Reference is made to that certain Credit Agreement dated as of
___________, 2003, by and among Pulte Homes, Inc., a Michigan corporation (the
"Borrower"), Bank One, NA, as Administrative Agent, and the Lenders that are
parties thereto (as the same may from time to time be amended, modified,
supplemented or restated, in whole or in part and without limitation as to
amount, terms, conditions or covenants, the "Credit Agreement").

         Pursuant to Section 2.1(e) of the Credit Agreement, the Borrower has
requested an increase in the Revolving Committed Amount from $_______________ to
$__________________. Such increase in the Revolving Committed Amount is to
become effective on _______________ __, ____ (the "Increase Date") [THIS DATE IS
TO BE MUTUALLY AGREED UPON BY THE BORROWER, THE ACCEPTING LENDER AND AGENT IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 2.1(e)) OF THE CREDIT AGREEMENT]. In
connection with such requested increase in the Revolving Committed Amount, the
Borrower, Administrative Agent and _________________ ("Accepting Lender") hereby
agree as follows:

         1. ACCEPTING LENDER'S COMMITMENT. Effective as of the Increase Date,
[Accepting Lender shall become a party to the Credit Agreement as a Lender,
shall have all of the rights and obligations of a Lender thereunder, shall agree
to be bound by the terms and provisions thereof and shall thereupon have a
Commitment under and for purposes of the Credit Agreement in an amount equal
[the Commitment of Accepting Lender under the Credit Agreement shall be
increased from $___________________] to the amount set forth opposite Accepting
Lender's name on the signature pages hereof.

         2. REPRESENTATIONS AND AGREEMENTS OF ACCEPTING BANK. Accepting Lender
(i) confirms that it has received a copy of the Credit Agreement, together with
copies of the financial statements requested by Accepting Lender and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Commitment and Acceptance, (ii) agrees
that it will, independently and without reliance upon Administrative Agent or
any Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Documents, (iii) appoints and authorizes
Administrative Agent to take such actions as Administrative Agent on its behalf
and to exercise such powers under the Credit Documents as are delegated to
Administrative Agent by the terms thereof, together with

                                       1
<PAGE>

such powers as are reasonably incidental thereto, (iv) agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of the Credit Documents are required to be performed by it as a Lender, (v)
agrees that its payment instructions and notice instructions are as set forth in
the attachment to Schedule 1, (vi) confirms that none of the funds, monies,
assets or other consideration being used to make the commitment and acceptance
hereunder are "plan assets" as defined under ERISA and that its rights, benefits
and interests in and under the Credit Documents will not be "plan assets" under
ERISA, and (vii) if applicable attaches the forms prescribed by the Internal
Revenue Service of the United States certifying that Accepting Lender is
entitled to receive payments under the Credit Documents without deduction or
withholding of any United States federal income taxes.*

*Paragraph 2 is to be inserted only if Accepting Lender is not already a party
to the Credit Agreement prior to the Increase Date.

         3. REPRESENTATION OF BORROWER. The Borrower hereby represents and
warrants that, as of the date hereof and as of the Increase Date, (a) no event
or condition shall have occurred and then be continuing which constitutes an
Event of Default or Default and (b) the representations and warranties of the
Borrower contained in the Credit Agreement are true and correct in all material
respects (except to the extent any such representation or warranty is stated to
relate solely to an earlier date).

         4. ADMINISTRATIVE AGENT'S FEE. On or before the Increase Date, the
Borrower shall pay to the Administrative Agent an administrative fee in the
amount of $3,500.00.

         5. GOVERNING LAW. This Commitment and Acceptance shall be governed by
the internal law, and not the law of conflicts, of the State of Illinois.

         6. NOTICES. For the purpose of notices to be given under the Credit
Agreement, the address of Accepting Lender (until notice of a change is
delivered) shall be the address set forth in Schedule 1.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Commitment
and Acceptance by their duly authorized officers as of the date first above
written.

                                        BORROWER:

                                        PULTE HOMES, INC.

                                        By: ____________________________________
                                        Name:
                                        Title:

                                        ADMINISTRATIVE AGENT:

                                        BANK ONE, NA, as ADMINISTRATIVE AGENT

                                        By: ____________________________________
                                        Name:
                                        Title:

COMMITMENT:                             ACCEPTING LENDER:

$_______________________                [NAME OF ACCEPTING LENDER]

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                       3
<PAGE>

                                   SCHEDULE 1
                          TO COMMITMENT AND ACCEPTANCE

1.       Attach Accepting Lender's Administrative Information Sheet, which must
include its payment instructions and notice address.

                                       4
<PAGE>

                                 EXHIBIT 2.1(f)

                                      NOTE

$______________                                                ___________, 200_

         Pulte Homes, Inc., a Michigan corporation (the "Borrower"), promises to
pay to the order of ____________________________________ (the "Lender") the
lesser of the principal sum of ______________________________ Dollars
($_____________) or the aggregate unpaid principal amount of all Revolving Loans
made by the Lender to the Borrower pursuant to Section 2 of the Agreement (as
hereinafter defined), in immediately available funds at the main office of Bank
One, NA in Chicago, Illinois, as Administrative Agent, together with interest on
the unpaid principal amount hereof at the rates and on the dates set forth in
the Agreement. The Borrower shall pay the principal of and accrued and unpaid
interest on the Loans in full on the Maturity Date.

         The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of each Loan and the date and amount of each principal
payment hereunder.

         This Note is one of the Revolving Notes issued pursuant to, and is
entitled to the benefits of, the Credit Agreement dated as of ____________, 2003
(which, as it may be amended or modified and in effect from time to time, is
herein called the "Agreement"), among the Borrower, the lenders party thereto,
including the Lender, and Bank One, NA, as Administrative Agent, to which
Agreement reference is hereby made for a statement of the terms and conditions
governing this Note, including the terms and conditions under which this Note
may be prepaid or its maturity date accelerated. Capitalized terms used herein
and not otherwise defined herein have the meanings attributed to them in the
Agreement.

                                        PULTE HOMES, INC.

                                        By:_____________________________________

                                        Name: __________________________________

                                        Title: _________________________________

                                       1
<PAGE>

                   SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
                                       TO
                            NOTE OF PULTE HOMES, INC.
                           DATED _______________, 200_

Principal         Maturity       Principal
Amount of       of Interest       Amount         Unpaid
  Loan            Period           Paid         Balance

                                       2
<PAGE>

                                 EXHIBIT 2.2(e)

                                 SWINGLINE NOTE

$50,000,000.00                                                 ____________,200_

         Pulte Homes, Inc., a Michigan corporation (the "Borrower") promises to
pay to the order of Bank One, NA (the "Swingline Lender") the lesser of the
principal sum of Fifty Million and no/100 Dollars ($50,000,000.00) or the
aggregate unpaid principal amount of all Swingline Loans made by the Swingline
Lender to the Borrower pursuant to the Agreement (as hereinafter defined) in
immediately available funds at the main office of Bank One, NA, in Chicago,
Illinois, as Administrative Agent, together with interest on the unpaid
principal amount hereof at the rates and on the dates set forth in the
Agreement. The Borrower shall pay the principal of and accrued and unpaid
interest on all Swingline Loans in full, if not sooner due and payable under the
Agreement, on the Maturity Date.

         This Note is the Swingline Note issued pursuant to, and is entitled to
the benefits of, the Credit Agreement, dated as of ____________, 2003 (which as
it may be amended or modified and in effect from time to time is herein called
the "Agreement") among the Borrower, the lenders party thereto (including the
Swingline Lender) and Bank One, NA, as Administrative Agent, to which Agreement
reference is hereby made for a statement of the terms and conditions governing
this Note, including the terms and conditions under which this Note may be
prepaid or its maturity date accelerated. Capitalized terms used herein and not
otherwise defined herein are used with the meanings attributed to them in the
Agreement.

                                        PULTE HOMES, INC.

                                        By: ____________________________________
                                        Name:
                                        Title:

                                       1
<PAGE>

                                 EXHIBIT 7.1(c)

                          FORM OF OFFICER'S CERTIFICATE

TO:      BANK ONE, NA, as Administrative Agent
         [ADDRESS]

RE:      Credit Agreement dated as of October 1, 2003 among PULTE HOMES, INC., a
                  Michigan corporation (the "Borrower"), the Lenders identified
                  therein, Bank One, NA as Administrative Agent (the
                  "Administrative Agent")(as the same may be amended, modified,
                  extended or restated from time to time, the "Credit
                  Agreement")

DATE     :

_________________________________________________________________

         Pursuant to the terms of the Credit Agreement, I, Bruce E. Robinson,
Vice President and Treasurer of the Borrower, hereby certify on behalf of the
Credit Parties that, as of the fiscal quarter/year ending _________ ____, 200__,
the statements below are accurate and complete in all material respects (all
capitalized terms used herein unless otherwise defined shall have the meanings
set forth in the Credit Agreement):

                  a.       Attached hereto as Schedule 1 are calculations
         (calculated as of the date of the financial statements referred to in
         paragraph c. below) demonstrating compliance by the Credit Parties with
         the financial covenants contained in Section 7.2 of the Credit
         Agreement.

                  b.       No Default or Event of Default exists under the
         Credit Agreement.

                  c.       The quarterly/annual financial statements for the
         fiscal quarter/year ended _________ ___, 200__ which accompany this
         certificate are true and correct and have been prepared in accordance
         with GAAP (in the case of any quarterly financial statements, subject
         to changes resulting from audit and normal year-end audit adjustments).

                                        PULTE HOMES, INC.

                                        a Michigan corporation

                                        By: ____________________________________
                                        Name:  Bruce E. Robinson
                                        Title: Vice President and Treasurer

                                       1
<PAGE>

                                 EXHIBIT 11.3(b)

                              ASSIGNMENT AGREEMENT

         This Assignment Agreement (this "Assignment Agreement") between
_____________ (the "Assignor") and __________________ (the "Assignee") is dated
as of _____________, 200_. The parties hereto agree as follows:

         1. PRELIMINARY STATEMENT. The Assignor is a party to a Credit Agreement
(which, as it may be amended, modified, renewed or extended from time to time,
is herein called the "Credit Agreement") described in Item 1 of Schedule 1
attached hereto ("Schedule 1"). Capitalized terms used herein and not otherwise
defined herein shall have the meanings attributed to them in the Credit
Agreement.

         2. ASSIGNMENT AND ASSUMPTION. The Assignor hereby sells and assigns to
the Assignee, and the Assignee hereby purchases and assumes from the Assignor,
an interest in and to the Assignor's rights and obligations under the Credit
Agreement such that after giving effect to such assignment the Assignee shall
have purchased pursuant to this Assignment Agreement the percentage interest
specified in Item 3 of Schedule 1 of all outstanding rights and obligations
under the Credit Agreement relating to the facilities listed in Item 3 of
Schedule 1 and the other Credit Documents. The Commitment (or Loans, if the
Commitment has been terminated) purchased by the Assignee hereunder is set forth
in Item 3 of Schedule 1.

         3. EFFECTIVE DATE. The effective date of this Assignment Agreement (the
"Effective Date") shall be the later of the date specified in Item 3 of Schedule
1 or two Business Days (or such shorter period agreed to by the Agent) after a
Notice of Assignment substantially in the form of Exhibit 1 attached hereto has
been delivered to the Agent. Such Notice of Assignment must include any consents
required to be delivered to the Agent by Section 11.13 of the Credit Agreement
(including the consent of the Agent). In no event will the Effective Date occur
if the payments required to be made by the Assignee to the Assignor on the
Effective Date under Sections 4 and 5 hereof are not made on the proposed
Effective Date. The Assignor will notify the Assignee of the proposed Effective
Date no later than the Business Day prior to the proposed Effective Date. As of
the Effective Date, (i) the Assignee shall have the rights and obligations of a
Lender under the Credit Documents with respect to the rights and obligations
assigned to the Assignee hereunder and (ii) the Assignor shall relinquish its
rights and be released from its corresponding obligations under the Credit
Documents with respect to the rights and obligations assigned to the Assignee
hereunder.

         4. PAYMENTS, OBLIGATIONS. On and after the Effective Date, the Assignee
shall be entitled to receive from the Agent all payments of principal, interest
and fees with respect to the interest assigned hereby. The Assignee shall
advance funds directly to the Agent with respect to all Loans and reimbursement
payments made on or after the Effective Date with respect to the interest
assigned hereby. [In consideration for the sale and assignment of Loans
hereunder, (i) the Assignee shall pay the Assignor on the Effective Date, an
amount equal to the principal amount of the portion of all Floating Rate Loans
assigned to the Assignee hereunder and (ii) with respect to each Eurodollar Loan
made by the Assignor and assigned to the

                                       1
<PAGE>

Assignee hereunder which is outstanding on the Effective Date, (a) on the last
day of the Interest Period therefor or (b) on such earlier date agreed to by the
Assignor and the Assignee or (c) on the date on which any such Eurodollar Loan
either becomes due (by acceleration or otherwise) or is prepaid (the date as
described in the foregoing clauses (a), (b) or (c) being hereinafter referred to
as the "Payment Date"), the Assignee shall pay the Assignor an amount equal to
the principal amounts of the portion of such Eurodollar Loan assigned to the
Assignee which is outstanding on the Payment Date. If the Assignor and the
Assignee agree that the Payment Date for such Eurodollar Loan shall be the
Effective Date, they shall agree to the interest rate applicable to the portion
of such Loan assigned hereunder for the period from the Effective Date to the
end of the existing Interest Period applicable to such Eurodollar Loan (the
"Agreed Interest Rate") and any interest received by the Assignee in excess of
the Agreed Interest Rate shall be remitted to the Assignor. In the event
interest for the period from the Effective Date to but not including the Payment
Date is not paid by the Borrower with respect to any Eurodollar Loan sold by the
Assignor to the Assignee hereunder, the Assignee shall pay to the Assignor
interest for such period on the portion of such Eurodollar Loan sold by the
Assignor to the Assignee hereunder at the applicable rate provided by the Credit
Agreement. In the event a prepayment of any Eurodollar Loan which is existing on
the Payment Date and assigned by the Assignor to the Assignee hereunder occurs
after the Payment Date but before the end of the Interest Period applicable to
such Eurodollar Loan, the Assignee shall remit to the Assignor the excess of the
prepayment penalty paid with respect to the portion of such Eurodollar Loan
assigned to the Assignee hereunder over the amount which would have been paid if
such prepayment penalty was calculated based on the Agreed Interest Rate. The
Assignee will also promptly remit to the Assignor (i) any principal payments
received from the Administrative Agent with respect to Eurodollar Loans prior to
the Payment Date and (ii) any amounts of interest on Loans and fees received
from the Administrative Agent which relate to the portion of the Loans assigned
to the Assignee hereunder for periods prior to the Effective Date, in the case
of Floating Rate Loans, or the Payment Date, in the case of Eurodollar Loans,
and not previously paid by the Assignee to the Assignor.]* In the event that
either party hereto receives any payment to which the other party hereto is
entitled under this Assignment Agreement, then the party receiving such amount
shall promptly remit it to the other party hereto.

*THE PARTIES MAY INSERT ALTERNATIVE PAYMENT PROVISIONS IN LIEU OF THE PAYMENT
TERMS INCLUDED IN THIS EXHIBIT.

         5. FEES PAYABLE BY THE ASSIGNEE. [To the extent applicable, the
Assignee shall pay to the Assignor a fee on each day on which a payment of
interest or commitment fee is made under the Credit Agreement with respect to
the amounts assigned to the Assignee hereunder (other than a payment of interest
or commitment fee for the period prior to the Effective Date or, in the case of
Eurodollar Loans, the Payment Date, which the Assignee is obligated to deliver
to the Assignor pursuant to Section 4 hereof). The amount of such fee shall be
the difference between (i) the interest or fee, as applicable, paid with respect
to the amounts assigned to the Assignee hereunder and (ii) the interest or fee,
as applicable, which would have been paid with respect to the amounts assigned
to the Assignee hereunder if each interest rate was ___ of 1% less than the
interest rate paid by the Borrower or if the commitment fee was _____ of 1% less
than the commitment fee paid by the Borrower, as applicable. In addition, the

                                       2
<PAGE>

Assignee agrees to pay ____% of the recordation fee required to be paid to the
Administrative Agent pursuant to the Credit Agreement in connection with this
Assignment Agreement.]*

*THE PARTIES MAY INSERT ALTERNATIVE PAYMENT PROVISIONS IN LIEU OF THE PAYMENT
TERMS INCLUDED IN THIS EXHIBIT.

         6. REPRESENTATIONS OF THE ASSIGNOR: LIMITATIONS ON THE ASSIGNOR'S
LIABILITY. The Assignor represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim created by the Assignor. It is
understood and agreed that the assignment and assumption hereunder are made
without recourse to the Assignor and that the Assignor makes no other
representation or warranty of any kind to the Assignee. Neither the Assignor nor
any of its officers, directors, employees, agents or attorneys shall be
responsible for (i) the due execution, legality, validity, enforceability,
genuineness, sufficiency or collectibility of any Credit Documents, including
without limitation, documents granting the Assignor and the other Lenders a
security interest in assets of the Borrower, any Subsidiary, or any Guarantor,
(ii) any representation, warranty or statement made in or in connection with any
of the Credit Documents, (iii) the financial condition or creditworthiness of
the Borrower, any Subsidiary, or any Guarantor, (iv) the performance of or
compliance with any of the terms or provisions of any of the Credit Documents,
(v) inspecting any of the property, books or records of the Borrower, any
Subsidiary, or any Guarantor, (vi) the validity, enforceability, perfection,
priority, condition, value or sufficiency of any collateral securing or
purporting to secure the Loans or (vii) any mistake, error of judgment, or
action taken or omitted to be taken in connection with the Loans or the Credit
Documents.

         7. REPRESENTATIONS OF THE ASSIGNEE. The Assignee (i) confirms that it
has received a copy of the Credit Agreement, together with copies of such
financial statements requested by the Assignee and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment Agreement, (ii) agrees that it will,
independently and without reliance upon the Agent, the Assignor or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Documents, (iii) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Documents as are delegated to the Agent by the
terms thereof, together with such powers as are reasonably incidental thereto,
(iv) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Documents are required to be
performed by it as a Lender and represents that as of the Effective Date no
limitation or prohibition provided by any applicable statute or regulation
affects its ability to extend credit under the Credit Agreement, (v) agrees that
its payment instructions and notice instructions are as set forth in the
attachment to Schedule 1, (vi) confirms that none of the funds, monies, assets
or other consideration being used to make the purchase and assumption hereunder
are "plan assets" as defined under ERISA and that its rights, benefits and
interests in and under the Credit Documents will not be "plan assets" under
ERISA, [and (vii) attaches the forms prescribed by the Internal Revenue Service
of the United States certifying that the Assignee is entitled to receive
payments under the Credit Documents without deduction or withholding of any
United States federal income taxes]*.

                                       3
<PAGE>

*TO BE INSERTED IF THE ASSIGNEE IS NOT INCORPORATED UNDER THE LAWS OF THE UNITED
STATES, OR A STATE THEREOF.

         8. INDEMNITY. The Assignee agrees to indemnify and hold the Assignor
harmless against any and all losses, costs and expenses (including, without
limitation, reasonable attorneys' fees) and liabilities incurred by the Assignor
in connection with or arising in any manner from the Assignee's non-performance
of the obligations assumed under this Assignment Agreement.

         9. SUBSEQUENT ASSIGNMENTS. After the Effective Date, the Assignee shall
have the right pursuant to Section 11.13 of the Credit Agreement to assign the
rights which are assigned to the Assignee hereunder to any entity or person,
provided that (i) any such subsequent assignment does not violate any of the
terms or conditions of the Credit Documents or any law, rule, regulation, order,
writ, judgment, injunction or decree and that all consents required under the
terms of the Credit Documents have been obtained and (ii) unless the prior
written consent of the Assignor is obtained, the Assignee is not thereby
released from its obligations to the Assignor hereunder, if any remain
unsatisfied, including, without limitation, its obligations under Sections 4, 5
and 8 hereof.

         10. REDUCTIONS OF COMMITMENT. If any reduction in the Commitment occurs
between the date of this Assignment Agreement and the Effective Date, the
percentage interest specified in Item 3 of Schedule 1 shall remain the same, but
the dollar amount purchased shall be recalculated based on the reduced
Commitment of the Assignor.

         11. ENTIRE AGREEMENT. This Assignment Agreement and the attached Notice
of Assignment embody the entire agreement and understanding between the parties
hereto and supersede all prior agreements and understandings between the parties
hereto relating to the subject matter hereof.

         12. GOVERNING LAW. This Assignment Agreement shall be governed by and
construed in accordance with, the laws of the State of Illinois without regard
to principles of conflict of laws.

         13. NOTICES. Notices shall be given under this Assignment Agreement in
the manner set forth in the Credit Agreement. For the purpose hereof the
addresses of the parties hereto (until notice of a change is delivered) shall be
the addresses set forth in the attachment to Schedule 1.

                                       4
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Assignment
Agreement by their duly authorized officers as of the date first above written.

         [NAME OF ASSIGNOR]

         By:________________________________
         Title:_____________________________

         [NAME OF ASSIGNEE]
         By:________________________________
         Title:_____________________________

                                       5
<PAGE>

                                   SCHEDULE 1

                             to Assignment Agreement

1. Description and Date of Credit Agreement:

2. Date of Assignment Agreement: _________________, 200_

3. Amounts (As of Date of Item 2 above):

a. Total of Commitments
   (Loans)* under
   Credit Agreement                         $_______

b. Assignee's Percentage
   purchased under the
   Assignment
   Agreement**                               _______%

c. Amount of Assigned
   Share purchased under the
   Assignment Agreement                     $_______

d. Assignee's aggregate
   Commitment Amount
   (Loan Amount)*
   Purchased Hereunder:                     $_______

e. Proposed Effective
   Date:                                     _______

Accepted and Agreed:

[NAME OF ASSIGNOR]                          [NAME OF ASSIGNEE]

By:___________________________              By:____________________________

Title:________________________              Title:_________________________

*If a Commitment has been terminated, insert outstanding Loans in place of
Commitment

**Percentage taken to 10 decimal places

                                       1

<PAGE>

                Attachment to SCHEDULE 1 to ASSIGNMENT AGREEMENT

Attach Assignor's Administrative Information Sheet, which must include notice
address for the Assignor and the Assignee.

                                       2

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