Document:

EXHIBIT
4.3

 

REGISTRATION
RIGHTS AGREEMENT

 

Dated
as of June 6, 2006

 

By
and Among

 

BEAZER
HOMES USA, INC.,

as Issuer,

 

the
GUARANTORS named herein

 

and

 

UBS
SECURITIES LLC, CITIGROUP GLOBAL MARKETS INC., J.P. MORGAN
SECURITIES INC., 

WACHOVIA CAPITAL MARKETS, LLC, DEUTSCHE BANK SECURITIES INC., BNP PARIBAS 

SECURITIES CORP. AND GREENWICH CAPITAL MARKETS, INC.

as Initial Purchasers

 

8.125%
Senior Notes due 2016

 

 

 

TABLE OF CONTENTS

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Exchange Offer

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Shelf Registration

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Liquidated Damages

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Registration Procedures

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 6.

  	
  Registration Expenses

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Indemnification

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 8.

  	
  Rules 144 and 144A

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 9.

  	
  Underwritten Registrations

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Miscellaneous

  	
  19

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  No Inconsistent Agreements

  	
  19

  
	
   

  	
  (b)

  	
  Adjustments Affecting
  Registrable Notes

  	
  19

  
	
   

  	
  (c)

  	
  Amendments and Waivers

  	
  20

  
	
   

  	
  (d)

  	
  Notices

  	
  20

  
	
   

  	
  (e)

  	
  Guarantors

  	
  21

  
	
   

  	
  (f)

  	
  Successors and Assigns

  	
  21

  
	
   

  	
  (g)

  	
  Counterparts

  	
  21

  
	
   

  	
  (h)

  	
  Headings

  	
  21

  
	
   

  	
  (i)

  	
  Governing Law

  	
  21

  
	
   

  	
  (j)

  	
  Severability

  	
  22

  
	
   

  	
  (k)

  	
  Securities Held by the
  Company or Its Affiliates

  	
  22

  
	
   

  	
  (l)

  	
  Third-Party Beneficiaries

  	
  22

  
	
   

  	
  (m)

  	
  Attorneys’ Fees

  	
  22

  
	
   

  	
  (n)

  	
  Entire Agreement

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  

 

 

i

 

REGISTRATION RIGHTS
AGREEMENT

 

 

This Registration Rights Agreement (this “Agreement”) is dated
as of June 6, 2006, by and among Beazer Homes USA, Inc., a Delaware corporation
(the “Company”), and each of the Guarantors (as defined herein) (the
Company and the Guarantors are referred to collectively herein as the “Issuers”),
on the one hand, and UBS Securities LLC, Citigroup Global Markets Inc., J.P.
Morgan Securities Inc., Wachovia Capital Markets, LLC, Deutsche Bank Securities
Inc., BNP Paribas Securities Corp. and Greenwich Capital Markets, Inc. (collectively,
the “Initial Purchasers”), on the other hand.

 

This Agreement is entered into in connection with the Purchase
Agreement, dated as of June 1, 2006, by and among the Issuers and the Initial
Purchasers (the “Purchase Agreement”), relating to the offering and sale
of $275,000,000 aggregate principal amount of the Company’s 8.125% Senior Notes
due 2016 (including the guarantees thereof by the Guarantors, the “Notes”)
to the Initial Purchasers.  The execution
and delivery of this Agreement is a condition to the Initial Purchasers’
obligations to purchase the Notes under the Purchase Agreement.

 

The parties hereby agree as follows:

 

Section
1.                                  Definitions

 

As used in this Agreement, the following terms shall have the following
meanings:

 

“action” shall have the meaning set forth in Section 7(c)
hereof.

 

“Advice” shall have the meaning set forth in Section 5 hereof.

 

“Agreement” shall have the meaning set forth in the first
introductory paragraph hereto.

 

“Applicable Period” shall have the meaning set forth in Section
2(b) hereof.

 

“Board of Directors” shall have the meaning set forth in Section
5 hereof.

 

“Business Day” shall mean a day that is not a Legal Holiday.

 

“Commission” shall mean the Securities and Exchange Commission.

 

“Company” shall have the meaning set forth in the introductory
paragraph hereto and shall also include the Company’s permitted successors and
assigns.

 

“day” shall mean a calendar day.

 

“Delay Period” shall have the meaning set forth in Section 5
hereof.

 

“Effectiveness Period” shall have the meaning set forth in the
second paragraph of Section 3(a) hereof.

 

“Event Date” shall have the meaning set forth in Section 4(b)
hereof.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated
thereunder.

 

 

 

“Exchange Notes” shall have the meaning set forth in Section
2(a) hereof.

 

“Exchange Offer” shall have the meaning set forth in Section
2(a) hereof.

 

“Exchange Offer Registration Statement” shall have the meaning
set forth in Section 2(a) hereof.

 

“Guarantors” means each of the Persons executing this Agreement on
the date hereof listed on Schedule A and each Person who executes and
delivers a counterpart of this Agreement hereafter pursuant to Section 10(e)
hereof.

 

“Holder” shall mean any holder of a Registrable Note or Registrable
Notes.

 

“Indenture” shall mean the Indenture, dated as of April 17, 2002,
as amended or supplemented from time to time in accordance with the terms
thereof, by and among the Company and U.S. Bank National Association, as
trustee, including the Eighth Supplemental Indenture, dated as of June 6, 2006,
by and among the Issuers and U.S. Bank National Association, as trustee,
pursuant to which the Notes are being issued.

 

“Initial Purchasers” shall have the meaning set forth in the
first introductory paragraph hereof.

 

“Initial Shelf Registration Statement” shall have the meaning
set forth in Section 3(a) hereof.

 

“Inspectors” shall have the meaning set forth in Section 5(n)
hereof.

 

“Issue Date” shall mean June 6, 2006, the date of original
issuance of the Notes.

 

“Issuers” shall have the meaning set forth in the introductory
paragraph hereto.

 

“Legal Holiday” shall mean a Saturday, a Sunday or a day on
which banking institutions in New York, New York are required by law,
regulation or executive order to remain closed.

 

“Liquidated Damages” shall have the meaning set forth in Section
4(a) hereof.

 

“Losses” shall have the meaning set forth in Section 7(a)
hereof.

 

“NASD” shall have the meaning set forth in Section 5(s) hereof.

 

“Notes” shall have the meaning set forth in the second
introductory paragraph hereto.

 

“Participant” shall have the meaning set forth in Section 7(a)
hereof.

 

“Participating Broker-Dealer” shall have the meaning set forth
in Section 2(b) hereof.

 

“Person” shall mean an individual, corporation, partnership,
joint venture association, joint stock company, trust, unincorporated limited
liability company, government or any agency or political subdivision thereof or
any other entity.

 

“Private Exchange” shall have the meaning set forth in Section
2(b) hereof.

 

 

2

 

“Private Exchange Notes” shall have the meaning set forth in
Section 2(b) hereof.

 

“Prospectus” shall mean the prospectus included in any
Registration Statement (including, without limitation, any prospectus subject
to completion and a prospectus that includes any information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

 

“Purchase Agreement” shall have the meaning set forth in the
second introductory paragraph hereof.

 

“Records” shall have the meaning set forth in Section 5(n)
hereof.

 

“Registrable Notes” shall mean each Note upon its original
issuance and at all times subsequent thereto, each Exchange Note as to which
Section 2(c)(iv) hereof is applicable upon original issuance and at all times
subsequent thereto and each Private Exchange Note upon original issuance
thereof and at all times subsequent thereto, in each case until (i) a Registration
Statement (other than, with respect to any Exchange Note as to which Section
2(c)(iv) hereof is applicable, the Exchange Offer Registration Statement)
covering such Note, Exchange Note or Private Exchange Note has been declared effective
by the Commission and such Note, Exchange Note or such Private Exchange Note,
as the case may be, has been disposed of in accordance with such effective
Registration Statement, (ii) such Note has been exchanged pursuant to the
Exchange Offer for an Exchange Note or Exchange Notes that may be resold
without restriction under state and federal securities laws, (iii) such
Note, Exchange Note or Private Exchange Note, as the case may be, ceases to be
outstanding for purposes of the Indenture or (iv) such Note, Exchange Note or
Private Exchange Note has been sold in compliance with Rule 144 or is
salable pursuant to Rule 144(k).

 

“Registration Default” shall have the meaning set forth in
Section 4(a) hereof.

 

“Registration Statement” shall mean any appropriate registration
statement of the Issuers covering any of the Registrable Notes filed with the
Commission under the Securities Act, and all amendments and supplements to any
such Registration Statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

“Requesting Participating Broker-Dealer” shall have the meaning
set forth in Section 2(b) hereof.

 

“Rule 144” shall mean Rule 144 promulgated under the Securities
Act, as such Rule may be amended from time to time, or any similar rule (other
than Rule 144A) or regulation hereafter adopted by the Commission
providing for offers and sales of securities made in compliance therewith
resulting in offers and sales by subsequent holders that are not affiliates of
an issuer of such securities being free of the registration and prospectus
delivery requirements of the Securities Act.

 

“Rule 144A” shall mean Rule 144A promulgated under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule (other than Rule 144) or regulation hereafter adopted by the Commission.

 

 

3

 

“Rule 415” shall mean Rule 415 promulgated under the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission.

 

“Securities Act” shall mean the Securities Act of 1933, as
amended, and the rules and regulations of the Commission promulgated
thereunder.

 

“Shelf Filing Event” shall have the meaning set forth in Section
2(c) hereof.

 

“Shelf Registration Statement” shall have the meaning set forth
in Section 3(b) hereof.

 

“Subsequent Shelf Registration Statement” shall have the meaning
set forth in Section 3(b) hereof.

 

“TIA” shall mean the Trust Indenture Act of 1939, as amended.

 

“Trustee” shall mean the trustee under the Indenture and the
trustee (if any) under any indenture governing the Exchange Notes and Private
Exchange Notes.

 

“underwritten registration or underwritten offering”
shall mean a registration in which securities of the Company are sold to an
underwriter for reoffering to the public.

 

Section
2.                                  Exchange Offer

 

(a)           Unless
the Exchange Offer would violate applicable law or any applicable interpretation
of the staff of the Commission, the Issuers shall (i) file a Registration
Statement (the “Exchange Offer Registration Statement”) with the
Commission on an appropriate registration form with respect to a registered
offer (the “Exchange Offer”) to exchange any and all of the Registrable
Notes for a like aggregate principal amount of notes (including the guarantees
with respect thereto, the “Exchange Notes”) that are identical in all
material respects to the Notes (except that the Exchange Notes shall not
contain terms with respect to transfer restrictions or Liquidated Damages upon
a Registration Default), (ii) use their commercially reasonable efforts to
cause the Exchange Offer Registration Statement to be declared effective under
the Securities Act and (iii) use their commercially reasonable efforts to
consummate the Exchange Offer within 210 days after the Issue Date.  Upon the Exchange Offer Registration
Statement being declared effective by the Commission, the Company will offer the
Exchange Notes in exchange for surrender of the Notes.  The Company shall keep the Exchange Offer
open for not less than 20 Business Days (or longer if required by applicable
law) after the date notice of the Exchange Offer is mailed to Holders.

 

Each Holder that participates in the Exchange Offer will be required to
represent to the Company in writing that (i) any Exchange Notes to be received by
it will be acquired in the ordinary course of its business, (ii) it has no
arrangement or understanding with any Person to participate in the distribution
(within the meaning of the Securities Act) of the Exchange Notes in violation
of the provisions of the Securities Act, (iii) it is not an affiliate (as
defined in Rule 405 under the Securities Act) of any Issuer or, if it is an
affiliate, it will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable, (iv) if such
Holder is not a broker-dealer, it is not engaged in, and does not intend to
engage in, a distribution of Exchange Notes and (v) if such Holder is a
broker-dealer that will receive Exchange Notes for its own account in exchange
for Notes that were acquired as a result of market-making or other trading
activities, it will deliver a prospectus in connection with any resale of such
Exchange Notes.

 

 

4

 

(b)           The
Company and the Initial Purchasers acknowledge that the staff of the Commission
has taken the position that any broker-dealer that elects to exchange Notes
that were acquired by such broker-dealer for its own account as a result of
market-making or other trading activities for Exchange Notes in the Exchange
Offer (a “Participating Broker-Dealer”) may be deemed to be an “underwriter”
within the meaning of the Securities Act and must deliver a prospectus meeting
the requirements of the Securities Act in connection with any resale of such
Exchange Notes (other than a resale of an unsold allotment resulting from the
original offering of the Notes).

 

The Company and the Initial Purchasers also acknowledge that the staff
of the Commission has taken the position that if the Prospectus contained in
the Exchange Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which Participating
Broker-Dealers may resell the Exchange Notes, without naming the Participating
Broker-Dealers or specifying the amount of Exchange Notes owned by them, such
Prospectus may be delivered by Participating Broker-Dealers to satisfy their
prospectus delivery obligations under the Securities Act in connection with
resales of Exchange Notes for their own accounts, so long as the Prospectus
otherwise meets the requirements of the Securities Act.

 

In light of the foregoing, if requested by a Participating
Broker-Dealer (a “Requesting Participating Broker-Dealer”), the Issuers
agree to use their reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective for a period of up to 210 days after the date
on which the Exchange Registration Statement is declared effective, or such
longer period if extended pursuant to the last paragraph of Section 5
hereof (such period, the “Applicable Period”), or such earlier date as
all Requesting Participating Broker-Dealers shall have notified the Company in
writing that such Requesting Participating Broker-Dealers have resold all
Exchange Notes acquired in the Exchange Offer. 
The Company shall include a plan of distribution in such Exchange Offer
Registration Statement that meets the requirements set forth in the preceding
paragraph.

 

If, prior to consummation of the Exchange Offer, any Holder holds any
Notes acquired by it that have, or that are reasonably likely to be determined
to have, the status of an unsold allotment in an initial distribution, or if
any Holder is not entitled to participate in the Exchange Offer, the Company
upon the request of any such Holder shall simultaneously with the delivery of
the Exchange Notes in the Exchange Offer, issue and deliver to any such Holder,
in exchange (the “Private Exchange”) for such Notes held by any such
Holder, a like principal amount of notes (the “Private Exchange Notes”)
of the Company that are identical in all material respects to the Exchange
Notes.  The Private Exchange Notes shall
be issued pursuant to the same indenture as the Exchange Notes and bear the
same CUSIP number as the Exchange Notes.

 

In connection with the Exchange Offer, the Company shall:

 

(1)     mail or cause to be mailed to each Holder
entitled to participate in the Exchange Offer a copy of the Prospectus forming
part of the Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;

 

(2)     utilize the services of a depositary for
the Exchange Offer with an address in the Borough of Manhattan, The City of New
York;

 

(3)     permit Holders to withdraw tendered Notes
at any time prior to 5:00 p.m., New York time, on the last Business Day on
which the Exchange Offer shall remain open; and

 

(4)     otherwise comply in all material respects
with all applicable laws, rules and regulations.

 

 

5

 

As soon as practicable after the close of the Exchange Offer and the
Private Exchange, if any, the Company shall:

 

(1)     accept for exchange all Notes validly
tendered and not validly withdrawn pursuant to the Exchange Offer and the
Private Exchange;

 

(2)     deliver or cause to be delivered to the
Trustee for cancellation all Notes so accepted for exchange; and

 

(3)     cause the Trustee to authenticate and
deliver promptly to each Holder of Notes, Exchange Notes or Private Exchange
Notes, as the case may be, equal in principal amount to the Notes of such
Holder so accepted for exchange.

 

The Exchange Offer and the Private Exchange shall not be subject to any
conditions, other than that (i) the Exchange Offer or Private Exchange, as
the case may be, does not violate applicable law or any applicable
interpretation of the staff of the Commission, (ii) no action or
proceeding shall have been instituted or threatened in any court or by any
governmental agency which might materially impair the ability of the Issuers to
proceed with the Exchange Offer or the Private Exchange, and no material
adverse development shall have occurred in any existing action or proceeding
with respect to the Issuers and (iii) all governmental approvals shall
have been obtained, which approvals the Issuers deem necessary for the
consummation of the Exchange Offer or Private Exchange.

 

The Exchange Notes and the Private Exchange Notes shall be issued under
(i) the Indenture or (ii) an indenture identical in all material respects to
the Indenture (in either case, with such changes as are necessary to comply
with any requirements of the Commission to effect or maintain the qualification
thereof under the TIA) and which, in either case, has been qualified under the
TIA and shall provide that the Exchange Notes shall not be subject to the
transfer restrictions set forth in the Indenture.  The Indenture or such indenture shall provide
that the Exchange Notes, the Private Exchange Notes and the Notes shall vote
and consent together on all matters as one class and that none of the Exchange
Notes, the Private Exchange Notes or the Notes will have the right to vote or
consent as a separate class on any matter.

 

(c)           In
the event that (i) any changes in law or the applicable interpretations of
the staff of the Commission do not permit the Issuers to effect the Exchange
Offer, (ii) for any reason the Exchange Offer is not consummated within 210
days of the Issue Date, (iii) any Holder (other than the Initial
Purchasers) is prohibited by law or the applicable interpretations of the staff
of the Commission from participating in the Exchange Offer, (iv) in the case of
any Holder that participates in the Exchange Offer, such Holder does not
receive Exchange Notes on the date of the exchange that may be sold without restriction
under state and federal securities laws (other than due solely to the status of
such holder as an affiliate of any Issuer), (v) the Initial Purchasers so
request with respect to Notes that have, or that are reasonably likely to be
determined to have, the status of unsold allotments in an initial distribution
or (vi) any Holder of Private Exchange Notes so requests (each such event
referred to in clauses (i) through (vi) of this sentence, a “Shelf Filing
Event”), then the Issuers shall file a Shelf Registration pursuant to Section 3
hereof.

 

Section
3.                                  Shelf
Registration

 

If at any time a Shelf Filing Event shall occur, then:

 

(a)           Shelf
Registration.  The Issuers shall file
with the Commission a Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415 (the “Initial Shelf Registration Statement”)

 

6

 

covering all of the Registrable Notes. 
The Issuers shall file with the Commission the Initial Shelf
Registration Statement as promptly as practicable and in any event on or prior
to 45 days after such Shelf Filing Event occurs.  The Initial Shelf Registration Statement
shall be on Form S-3 or another appropriate form permitting registration of
such Registrable Notes for resale by Holders in the manner or manners
designated by them (including, without limitation, one or more underwritten offerings).  The Company shall not permit any securities
other than the Registrable Notes to be included in the Initial Shelf
Registration Statement or in any Subsequent Shelf Registration Statement (as
defined below).

 

The Issuers shall (x) use their commercially reasonable efforts to
cause the Initial Shelf Registration Statement to be declared effective under
the Securities Act on or prior to 90th day after such Shelf Filing
Event occurs (but in no event shall such effectiveness be required prior to 210
days following the Issue Date) and (y) use their commercially reasonable efforts to
keep the Initial Shelf Registration Statement continuously effective under the
Securities Act for the period ending on the date which is two years from the
date it becomes effective (or one year if the Initial Shelf Registration
Statement is filed at the request of the Initial Purchasers), subject to
extension pursuant to the penultimate paragraph of Section 5 hereof (the “Effectiveness
Period”), or such shorter period ending when (i) all Registrable Notes
covered by the Initial Shelf Registration Statement have been sold in the
manner set forth and as contemplated in the Initial Shelf Registration
Statement or (ii) a Subsequent Shelf Registration Statement covering all
of the Registrable Notes covered by and not sold under the Initial Shelf
Registration Statement or an earlier Subsequent Shelf Registration Statement
has been declared effective under the Securities Act; provided, however,
that (i) the Effectiveness Period in respect of the Initial Shelf
Registration Statement shall be extended to the extent required to permit
dealers to comply with the applicable prospectus delivery requirements of Rule
174 under the Securities Act and as otherwise provided herein and (ii) the Company
may suspend the effectiveness of the Initial Shelf Registration Statement by
written notice to the Holders solely as a result of the filing of a
post-effective amendment to the Initial Shelf Registration Statement to incorporate
annual audited financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared effective
to permit holders to use the related Prospectus.

 

(b)           Subsequent
Shelf Registration Statements.  If
the Initial Shelf Registration Statement or any Subsequent Shelf Registration
Statement ceases to be effective for any reason at any time during the Effectiveness
Period (other than because of the sale of all of the securities registered
thereunder), the Issuers shall use their respective reasonable best efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof,
and in any event shall as soon as practicable after such cessation amend the
Initial Shelf Registration Statement or such Subsequent Shelf Registration
Statement, as the case may be, in a manner to obtain the withdrawal of the
order suspending the effectiveness thereof, or file an additional Registration
Statement for an offering to be made on a continuing basis pursuant to Rule 415
covering all of the Registrable Notes covered by and not sold under the Initial
Shelf Registration Statement or such earlier Subsequent Shelf Registration Statement
(each, a “Subsequent Shelf Registration Statement”).  If a Subsequent Shelf Registration Statement
is filed, the Issuers shall use their commercially reasonable efforts to cause
the Subsequent Shelf Registration Statement to be declared effective under the
Securities Act as soon as practicable after such filing and to keep such Subsequent
Shelf Registration Statement continuously effective for a period equal to the
number of days in the Effectiveness Period less the aggregate number of days
during which the Initial Shelf Registration Statement and any Subsequent Shelf
Registration Statement was previously continuously effective.  As used herein, the term “Shelf
Registration Statement” includes the Initial Shelf Registration Statement
and any Subsequent Shelf Registration Statement.

 

(c)           Supplements
and Amendments.  The Issuers agree to
supplement or make amendments to the Shelf Registration Statement as and when
required by the rules, regulations or instructions 

 

 

7

 

applicable to the registration form used for such Shelf Registration
Statement or by the Securities Act for a shelf registration, or if reasonably
requested by  the Holders of a majority
in aggregate principal amount of the Registrable Notes covered by such
Registration Statement or by any underwriter of such Registrable Notes.

 

Section
4.                                  Liquidated
Damages

 

(a)           The
Issuers and the Initial Purchasers agree that the Holders will suffer damages
if the Issuers fail to fulfill their obligations under Section 2 or
Section 3 hereof and that it would not be feasible to ascertain the extent
of such damages with precision.  Accordingly,
the Issuers agree that if:

 

(i)      the Exchange Offer is not consummated on
or prior to the 210th day following the Issue Date, or, if that day is not a
Business Day, then the next succeeding day that is a Business Day, or

 

(ii)     the Shelf Registration Statement is
required to be filed but is not filed or declared effective within the time
periods set forth herein or is declared effective but thereafter ceases to be
effective or usable prior to the expiration of the Effectiveness Period, except
if the Shelf Registration Statement ceases to be effective or usable as
specifically permitted by the penultimate paragraph of Section 5 hereof,

 

(each such event referred to in clauses (i) through (iv), a “Registration
Default”), liquidated damages in the form of additional cash interest (“Liquidated
Damages”) will accrue on the affected Notes and the affected Exchange
Notes, as applicable.  The rate of
Liquidated Damages will be 0.25% per annum for the first 90-day period immediately
following the occurrence of a Registration Default, increasing by an additional
0.25% per annum with respect to each subsequent 90-day period up to a maximum
amount of additional interest of 1.0% per annum, from and including the date on
which any such Registration Default shall occur to, but excluding, the earlier
of (1) the date on which all Registration Defaults have been cured or (2) the
date on which all the Notes and Exchange Notes otherwise become freely
transferable by Holders other than affiliates of the Issuer without further
registration under the Securities Act.

 

Notwithstanding the foregoing, (1) the amount
of Liquidated Damages payable shall not increase because more than one
Registration Default has occurred and is pending and (2) a Holder of Notes or Exchange
Notes who is not entitled to the benefits of the Shelf Registration Statement (i.e.,
such Holder has not elected to include information) shall not be entitled to
Liquidated Damages with respect to a Registration Default that pertains to the
Shelf Registration Statement.

 

(b)           The
Company shall notify the Trustee within one Business Day after each and every
date on which an event occurs in respect of which Liquidated Damages are
required to be paid (an “Event Date”). 
Any amounts of Liquidated Damages due pursuant to this Section 4
will be payable in addition to any other interest payable from time to time
with respect to the Registrable Notes in cash semi-annually on the Interest
Payment Dates specified in the Indenture (to the holders of record as specified
in the Indenture), commencing with the first such interest payment date
occurring after any such Liquidated Damages commence to accrue.  The amount of Liquidated Damages will be
determined in a manner consistent with the calculation of interest under the
Indenture.

 

Section
5.                                  Registration
Procedures

 

In connection with the filing of any Registration Statement pursuant to
Section 2 or 3 hereof, the Issuers shall effect such registrations to permit
the sale of the securities covered thereby in 

 

 

8

 

accordance with the intended method or
methods of disposition thereof, and pursuant thereto and in connection with any
Registration Statement filed by the Issuers hereunder, the Issuers shall:

 

(a)           Prepare
and file with the Commission the Registration Statement or Registration Statements
prescribed by Section 2 or 3 hereof, and use their commercially reasonable
efforts to cause each such Registration Statement to become effective and remain
effective as provided herein; provided, however, that, if (1)
such filing is pursuant to Section 3 hereof, or (2) a Prospectus contained
in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof
is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period
relating thereto, before filing any Registration Statement or Prospectus or any
amendments or supplements thereto, the Company shall furnish to and afford the
Holders of the Registrable Notes covered by such Registration Statement or each
such Participating Broker-Dealer, as the case may be, their counsel and the
managing underwriters, if any, a reasonable opportunity to review copies of all
such documents (including copies of any documents to be incorporated by
reference therein and all exhibits thereto) proposed to be filed (in each case
at least five Business Days prior to such filing).  The Company shall not file any Registration
Statement or Prospectus or any amendments or supplements thereto if the Holders
of a majority in aggregate principal amount of the Registrable Notes covered by
such Registration Statement, or any such Participating Broker-Dealer, as the
case may be, their counsel, or the managing underwriters, if any, shall
reasonably object.

 

(b)           Prepare
and file with the Commission such amendments and post-effective amendments to
each Shelf Registration Statement or Exchange Offer Registration Statement, as
the case may be, as may be necessary to keep such Registration Statement
continuously effective for the Effectiveness Period or the Applicable Period,
as the case may be; cause the related Prospectus to be supplemented by any
Prospectus supplement required by applicable law, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the
Securities Act and the Exchange Act applicable to each of them with respect to
the disposition of all securities covered by such Registration Statement as so
amended or in such Prospectus as so supplemented and with respect to the
subsequent resale of any securities being sold by a Participating Broker-Dealer
covered by any such Prospectus, in each case, in accordance with the intended
methods of distribution set forth in such Registration Statement or Prospectus,
as so amended or supplemented, as the case may be.

 

(c)           If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period relating thereto (from whom the Issuers have received
written notice that it will be a Participating Broker-Dealer in the Exchange
Offer), notify the selling Holders of Registrable Notes, or each such
Participating Broker-Dealer, as the case may be, their counsel and the managing
underwriters, if any, as promptly as possible, and, if requested by any such
Person, confirm such notice in writing, (i) when a Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to a
Registration Statement or any post-effective amendment, when the same has
become effective under the Securities Act 
(including in such notice a written statement that any Holder may, upon
request, obtain, at the sole expense of the Company, one conformed copy of such
Registration Statement or post-effective amendment including financial
statements and schedules, documents incorporated or deemed to be incorporated
by reference and exhibits), (ii) of the issuance by the Commission of any
stop order suspending the effectiveness of a Registration Statement or of any order

 

9

 

preventing or suspending the
use of any preliminary prospectus or the initiation of any proceedings for that
purpose, (iii) if at any time when a Prospectus is required by the
Securities Act to be delivered in connection with sales of the Registrable
Notes or resales of Exchange Notes by Participating Broker-Dealers the
representations and warranties of the Issuers contained in any agreement
(including any underwriting agreement) contemplated by Section 5(m) hereof
cease to be true and correct in all material respects, (iv) of the receipt
by any of the Issuers of any notification with respect to the suspension of the
qualification or exemption from qualification of a Registration Statement or
any of the Registrable Notes or the Exchange Notes for offer or sale in any
jurisdiction, or the initiation or threatening of any proceeding for such
purpose, (v) subject to the penultimate paragraph of Section 5, of the
happening of any event, the existence of any condition or any information
becoming known to any Issuer that makes any statement made in such Registration
Statement or related Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires the making of any changes in or amendments or supplements to such Registration
Statement, Prospectus or documents so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the Prospectus,
it will not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, and (vi) subject to the penultimate paragraph of
Section 5, of the Company’s determination that a post-effective amendment to a
Registration Statement would be appropriate.

 

(d)           If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, use their reasonable best efforts to prevent the issuance
of any order suspending the effectiveness of a Registration Statement or of any
order preventing or suspending the use of a Prospectus or suspending the
qualification (or exemption from qualification) of any of the Registrable Notes
or the Exchange Notes, as the case may be, for sale in any jurisdiction, and,
if any such order is issued, to use their reasonable best efforts to obtain the
withdrawal of any such order at the earliest practicable moment.

 

(e)           If
(1) a Shelf Registration is filed pursuant to Section 3 or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period and if requested by the managing underwriter or underwriters
(if any), the Holders of a majority in aggregate principal amount of the
Registrable Notes covered by such Registration Statement or any Participating
Broker-Dealer, as the case may be, (i) promptly incorporate in such
Registration Statement or Prospectus a prospectus supplement or post-effective
amendment such information as the managing underwriter or underwriters (if
any), such Holders or any Participating Broker-Dealer, as the case may be
(based upon advice of counsel), determine is reasonably necessary to be included
therein and (ii) make all required filings of such prospectus supplement
or such post-effective amendment as soon as practicable after the Company has
received notification of the matters to be incorporated in such prospectus
supplement or post-effective amendment; provided, however, that
the Issuers shall not be required to take any action hereunder that would, in
the opinion of counsel to the Company, violate applicable laws.

 

 

10

 

(f)            If
(1) a Shelf Registration is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, furnish to each selling Holder of Registrable Notes or
each such Participating Broker-Dealer, as the case may be, who so requests, their
counsel and each managing underwriter, if any, at the sole expense of the
Company, one conformed copy of the Registration Statement or Registration Statements
and each post-effective amendment thereto, including financial  statements and schedules, and, if requested,
all documents incorporated or deemed to be incorporated therein by reference
and all exhibits.

 

(g)           If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, deliver to each selling Holder of Registrable Notes or
each such Participating Broker-Dealer, as the case may be, their respective
counsel, and the underwriters, if any, at the sole expense of the Company, as
many copies of the Prospectus or Prospectuses (including each form of
preliminary prospectus) and each amendment or supplement thereto and any
documents incorporated by reference therein as such Persons may reasonably
request; and, subject to the last paragraph of this Section 5, the Issuers
hereby consent to the use of such Prospectus and each amendment or supplement thereto
by each of the selling Holders of Registrable Notes or each such Participating
Broker-Dealer, as the case may be, and the underwriters or agents, if any, and
dealers (if any), in connection with the offering and sale of the Registrable
Notes or the sale by Participating Broker-Dealers of the Exchange Notes.

 

(h)           Prior
to any public offering of Registrable Notes or Exchange Notes or any delivery
of a Prospectus contained in the Exchange Offer Registration Statement by any
Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable
Period, use their reasonable best efforts to register or qualify, and to
cooperate with the selling Holders of Registrable Notes or each such
Participating Broker-Dealer, as the case may be, the managing underwriter or
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or qualification)
of such Registrable Notes or Exchange Notes, as the case may be, for offer and
sale under the securities or Blue Sky laws of such jurisdictions within the
United States as any selling Holder, Participating Broker-Dealer, or the
managing underwriter or underwriters reasonably request; provided, however,
that where Exchange Notes or Registrable Notes are offered other than through
an underwritten offering, the Company agrees to cause the Company’s counsel to
perform Blue Sky investigations and file registrations and qualifications
required to be filed pursuant to this Section 5(h); keep each such registration
or qualification (or exemption therefrom) effective during the period such
Registration Statement is required to be kept effective and do any and all
other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of such Exchange Notes or Registrable Notes
covered by the applicable Registration Statement; provided, however,
that no Issuer shall be required to (A) qualify generally to do business in any
jurisdiction where it is not then so qualified, (B) take any action that would
subject it to general service of process in any such jurisdiction where it is
not then so subject or (C) subject itself to taxation in excess of a nominal
dollar amount in any such jurisdiction where it is not then so subject.

 

(i)            If
a Shelf Registration is filed pursuant to Section 3 hereof, cooperate with
the selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Notes to be sold, which certificates
shall not bear any restrictive legends and shall be in a form eligible for 

 

 

11

 

deposit with The Depository
Trust Company; and enable such Registrable Notes to be in such denominations
and registered in such names as the managing underwriter or underwriters, if
any, or selling Holders may request at least two Business Days prior to any
sale of such Registrable Notes or Exchange Notes.

 

(j)            Use
their reasonable best efforts to cause the Registrable Notes or Exchange Notes
covered by any Registration Statement to be registered with or approved by such
other governmental agencies or authorities as may be reasonably necessary to
enable the seller or sellers thereof or the underwriter or underwriters, if
any, to consummate the disposition of such Registrable Notes or Exchange Notes,
except as may be required solely as a consequence of the nature of such selling
Holder’s business, in which case the Company will cooperate in all reasonable
respects with the filing of such Registration Statement and the granting of
such approvals.

 

(k)           If
(1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, upon the occurrence of any event contemplated by Section
5(c)(v) or 5(c)(vi) hereof, as promptly as practicable prepare and (subject to
Section 5(a) and the penultimate paragraph of this Section 5) file
with the Commission, at the sole expense of the Company, a supplement or
post-effective amendment to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Notes being sold
thereunder or to the purchasers of the Exchange Notes to whom such Prospectus
will be delivered by a Participating Broker-Dealer, any such Prospectus will
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

(l)            Prior
to the effective date of the first Registration Statement relating to the
Registrable Notes, (i) provide the Trustee with certificates for the
Registrable Notes in a form eligible for deposit with The Depository Trust
Company and (ii) provide a CUSIP number for the Registrable Notes.

 

(m)          In
connection with any underwritten offering of Registrable Notes pursuant to a
Shelf Registration, enter into an underwriting agreement as is customary in
underwritten offerings of debt securities similar to the Notes and take all
such other actions as are reasonably requested by the managing underwriter or
underwriters in order to expedite or facilitate the registration or the
disposition of such Registrable Notes and, in such connection, (i) make
such representations and warranties to, and covenants with, the underwriters
with respect to the business of the Company and its subsidiaries (including any
acquired business, properties or entity, if applicable) and the Registration
Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated
by reference therein, in each case, as are customarily made by issuers to
underwriters in underwritten offerings of debt securities similar to the Notes,
and confirm the same in writing if and when requested; (ii) use their
reasonable best efforts to obtain the written opinions of counsel to the
Company and written updates thereof in form, scope and substance reasonably
satisfactory to the managing underwriter or underwriters, addressed to the
underwriters covering the matters customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by
the managing underwriter or underwriters; (iii) use their reasonable best
efforts to obtain “cold comfort” letters and updates thereof in form, scope and
substance reasonably satisfactory to the managing underwriter or underwriters
from the independent 

 

 

12

 

certified public accountants
of the Company (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements and financial data are, or are required
to be, included or incorporated by reference in the Registration Statement),
addressed to each of the underwriters, such letters to be in customary form and
covering matters of the type customarily covered in “cold comfort” letters in
connection with underwritten offerings; and (iv) if an underwriting
agreement is entered into, the same shall contain indemnification provisions
and procedures no less favorable than those set forth in Section 7 hereof
(or such other provisions and procedures acceptable to Holders of a majority in
aggregate principal amount of Registrable Notes covered by such Registration
Statement and the managing underwriter or underwriters or agents) with respect
to all parties to be indemnified pursuant to said Section.  The above shall be done at each closing under
such underwriting agreement, or as and to the extent required thereunder.

 

(n)           If
(1) a Shelf Registration is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, make available for inspection by any selling Holder of
such Registrable Notes being sold or each such Participating Broker-Dealer, as
the case may be, any underwriter participating in any such disposition of
Registrable Notes, if any, and any attorney, accountant or other agent retained
by any such selling Holder or each such Participating Broker-Dealer, as the
case may be, or underwriter (collectively, the “Inspectors”), at the
offices where normally kept, during reasonable business hours, all financial
and other records, pertinent corporate documents and instruments of the Company
and its subsidiaries (collectively, the “Records”) as shall be
reasonably necessary to enable them to exercise any applicable due diligence
responsibilities, and cause the officers, directors  and employees of the Company and its
subsidiaries to supply all information reasonably requested by any such
Inspector in connection with such Registration Statement and Prospectus.  Each Inspector shall agree in writing that it
will not disclose any records that the Company determines, in good faith, to be
confidential and that it notifies the Inspectors in writing are confidential
unless (i) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in such Registration Statement or Prospectus,
(ii) the release of such Records is ordered pursuant to a subpoena or
other order from a court of competent jurisdiction, (iii) disclosure of
such information is necessary or advisable in connection with any action,
claim, suit or proceeding, directly or indirectly, involving or potentially
involving such Inspector and arising out of, based upon, relating to, or
involving this Agreement or the Purchase Agreement, or any transactions contemplated
hereby or thereby or arising hereunder or thereunder, or (iv) the information
in such Records has been made generally available to the public; provided,
however, that such Inspectors shall take such actions as are reasonably
necessary to protect the confidentiality of such information (if practicable)
to the extent such action is otherwise not inconsistent with, an impairment of
or in derogation of the rights and interests of the Holder or any Inspector; provided,
however, further, that to the extent the foregoing inspections shall
be made contemporaneously by more than one Holder, there shall be one law firm
(plus local counsel) and one accounting firm retained by all such Holders to
make such investigation.

 

(o)           Provide
an indenture trustee for the Registrable Notes or the Exchange Notes, as the
case may be, and cause the Indenture or the trust indenture provided for in
Section 2(b) hereof to be qualified under the TIA not later than the effective
date of the Exchange Offer or the first Registration Statement relating to the
Registrable Notes; and in connection therewith, cooperate with the trustee under
any such indenture and the Holders of the Registrable Notes or Exchange Notes,
as applicable, to effect such changes to such indenture as may be required for
such indenture 

 

13

 

to be so qualified in
accordance with the terms of the TIA; and execute, and use their reasonable
best efforts to cause such trustee to execute, all documents as may be required
to effect such changes, and all other forms and documents required to be filed
with the Commission to enable such indenture to be so qualified in a timely
manner.

 

(p)           Comply
with all applicable rules and regulations of the Commission and make generally
available to the Company’s securityholders earnings statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or
any similar rule promulgated under the Securities Act) no later than 45 days
after the end of any 12-month period (or 90 days after the end of any 12-month
period if such period is a fiscal year) (i) commencing at the end of any
fiscal quarter in which Registrable Notes or Exchange Notes are sold to
underwriters in a firm commitment or best efforts underwritten offering and (ii) if
not sold to underwriters in such an offering, commencing on the first day of
the first fiscal quarter of the Company after the effective date of a
Registration Statement, which statements shall cover said 12-month periods.

 

(q)           Upon
the request of a Holder, upon consummation of the Exchange Offer or a Private
Exchange, use their reasonable best efforts to obtain an opinion of counsel to
the Company, in a form customary for underwritten transactions, addressed to
the Trustee for the benefit of all Holders of Registrable Notes participating
in the Exchange Offer or the Private Exchange, as the case may be, that the
Exchange Notes or Private Exchange Notes, as the case may be, and the related
indenture constitute legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with its respective terms,
subject to customary exceptions and qualifications.

 

(r)            If
the Exchange Offer or a Private Exchange is to be consummated, upon delivery of
the Registrable Notes by Holders to the Company (or to such other Person as
directed by the Company) in exchange for the Exchange Notes or the Private
Exchange Notes, as the case may be, mark, or cause to be marked, on such
Registrable Notes that such Registrable Notes are being canceled in exchange
for the Exchange Notes or the Private Exchange Notes, as the case may be; in no
event shall such Registrable Notes be marked as paid or otherwise satisfied.

 

(s)           Cooperate
with each seller of Registrable Notes covered by any Registration Statement and
each underwriter, if any, participating in the disposition of such Registrable
Notes and their respective counsel in connection with any filings required to
be made with the National Association of Securities Dealers, Inc. (the “NASD”).

 

(t)            Use
their reasonable best efforts to take all other steps necessary or advisable to
effect the registration of the Exchange Notes and/or Registrable Notes covered
by a Registration Statement contemplated hereby.

 

The Company may require each seller of Registrable Notes or Exchange
Notes as to which any registration is being effected to furnish to the Company
such information regarding such seller and the distribution of such Registrable
Notes or Exchange Notes as the Company may, from time to time, reasonably request.  The Company may exclude from such
registration the Registrable Notes or Exchange Notes of any seller so long as
such seller fails to furnish such information within a reasonable time after
receiving such request and the failure to include any such seller shall not be
deemed to be a Registration Default. 
Each seller as to which any Shelf Registration is being effected agrees
to furnish promptly to the Company all information required to be disclosed in
order to make any information previously furnished to the Company by such
seller not materially misleading.

 

 

14

 

If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance reasonably satisfactory to such Holder, to the effect that the
holding by such Holder of such securities is not to be construed as a
recommendation by such Holder of the investment quality of the securities
covered thereby and that such holding does not imply that such Holder will
assist in meeting any future financial requirements of the Company, or (ii) in
the event that such reference to such Holder by name or otherwise is not required
by the Securities Act or any similar federal statute then in force, the
deletion of the reference to such Holder in any amendment or supplement to the
Registration Statement filed or prepared subsequent to the time that such
reference ceases to be required.

 

Each Holder of Registrable Notes and each Participating Broker-Dealer
agrees by acquisition of such Registrable Notes or Exchange Notes that, upon
actual receipt of any notice from the Company (x) of the happening of any event
of the kind described in Section 5(c)(ii), 5(c)(iii), 5(c)(iv), or 5(c)(v)
hereof, or (y) that the Board of Directors of the Company (the “Board
of Directors”) has resolved that the Company has a bona fide
business purpose for doing so, then the Company may delay the filing or the
effectiveness of the Exchange Offer Registration Statement or the Shelf Registration
Statement (if not then filed or effective, as applicable) and shall not be
required to maintain the effectiveness thereof or amend or supplement the
Exchange Offer Registration Statement or the Shelf Registration, in all cases,
for a period (a “Delay Period”) expiring upon the earlier to occur of
(i) in the case of the immediately preceding clause (x), such Holder’s
or Participating Broker-Dealer’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 5(k) hereof or until it is advised
in writing (the “Advice”) by the Company that the use of the applicable
Prospectus may be resumed, and has received copies of any amendments or supplements
thereto or (ii) in the case of the immediately preceding clause (y),
the date which is the earlier of (A) the date on which such business
purpose ceases to interfere with the Company’s obligations to file or maintain
the effectiveness of any such Registration Statement pursuant to this Agreement
or (B) 60 days after the Company notifies the Holders of such good faith
determination (and it is further agreed that during the Delay Period, the
Issuers shall not be required to provide any information pursuant to Section
5(c)(v) or 5(c)(vi) to the extent the provision thereof would violate
Regulation FD under the Exchange Act). 
There shall not be more than 60 days of Delay Periods during any
12-month period.  Each of the Effectiveness
Period and the Applicable Period, if applicable, shall be extended by the
number of days during any Delay Period. 
Any Delay Period will not alter the obligations of the Company to pay
Liquidated Damages under the circumstances set forth in Section 4 hereof.

 

In the event of any Delay Period pursuant to clause (y) of the
preceding paragraph, notice shall be given as soon as practicable after the
Board of Directors makes such a determination of the need for a Delay Period
and shall state, to the extent practicable, an estimate of the duration of such
Delay Period and shall advise the recipient thereof of the agreement of such
Holder provided in the next succeeding sentence.  Each Holder, by his acceptance of any
Registrable Note, agrees that during any Delay Period, each Holder will discontinue
disposition of such Notes or Exchange Notes covered by such Registration
Statement or Prospectus or Exchange Notes to be sold by such Holder or
Participating Broker-Dealer, as the case may be.

 

Section
6.                                  Registration
Expenses

 

All fees and expenses incident to the performance of or compliance with
this Agreement by the Issuers shall be borne by the Issuers, whether or not the
Exchange Offer Registration Statement or the Shelf Registration is filed or
becomes effective or the Exchange Offer is consummated, including, without
limitation, (i) all registration and filing fees (including, without
limitation, (A) fees with respect to filings required to be made with the
NASD in connection with an underwritten offering and (B) fees 

 

 

15

 

and expenses of compliance with state
securities or Blue Sky laws (including, without limitation, reasonable fees and
disbursements of counsel in connection with Blue Sky qualifications of the
Registrable Notes or Exchange Notes and determination of the eligibility of the
Registrable Notes or Exchange Notes for investment under the laws of such
jurisdictions (x) where the holders of Registrable Notes are located, in
the case of an Exchange Offer, or (y) as provided in Section 5(h) hereof,
in the case of a Shelf Registration or in the case of Exchange Notes to be sold
by a Participating Broker-Dealer during the Applicable Period)),
(ii) printing expenses, including, without limitation, expenses of printing
certificates for Registrable Notes or Exchange Notes in a form eligible for
deposit with The Depository Trust Company and of printing prospectuses if the
printing of prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement or in
respect of Exchange Notes to be sold by any Participating Broker-Dealer during
the Applicable Period, as the case may be, (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Company
and reasonable fees and disbursements of one special counsel for all of the
sellers of Registrable Notes pursuant to a Shelf Registration Statement
(exclusive of any counsel retained pursuant to Section 7 hereof), (v) fees
and disbursements of all independent certified public accountants referred to
in Section 5(m)(iii) hereof (including, without limitation, the expenses of any
special audit and “cold comfort” letters required by or incident to such
performance), (vi) Securities Act liability insurance, if the Company
desires such insurance, (vii) fees and expenses of all other Persons
retained by any of the Issuers, (viii) internal expenses of the Issuers
(including, without limitation, all salaries and expenses of officers and
employees of the Company performing legal or accounting duties), (ix) the
expense of any audit, (x) the fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange,
and the obtaining of a rating of the securities, in each case, if applicable,
and (xi) the expenses relating to printing, word processing and distributing
all Registration Statements, underwriting agreements, indentures and any other
documents necessary in order to comply with this Agreement.  Notwithstanding the foregoing or anything to
the contrary, (i) each Holder shall pay all underwriting discounts and commissions
of any underwriters with respect to any Registrable Notes sold by or on behalf
of it and (ii) all Holders shall pay all fees and expenses of counsel to the
underwriters in any underwritten offering made pursuant to a Shelf Registration.

 

Section
7.                                  Indemnification

 

(a)           Each
Issuer, jointly and severally, agrees to indemnify and hold harmless each
Holder of Registrable Notes and each Participating Broker-Dealer selling
Exchange Notes during the Applicable Period, each Person, if any, who controls
any such Person within the meaning of Section 15 of the Securities Act or
Section 20(a) of the Exchange Act, the agents, employees, officers and
directors of each Holder and each such Participating Broker-Dealer and the
agents, employees, officers and directors of any such controlling Person (each,
a “Participant”) from and against any and all losses, liabilities,
claims, damages and expenses whatsoever (including, but not limited to,
reasonable attorneys’ fees and any and all reasonable expenses whatsoever
incurred in investigating, preparing or defending against any litigation,
commenced or threatened, or any claim whatsoever, and any and all reasonable
amounts paid in settlement of any claim or litigation) (collectively, “Losses”)
to which they or any of them may become subject under the Securities Act, the
Exchange Act or otherwise insofar as such Losses (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement (or any
amendment thereto) or Prospectus (as amended or supplemented if the Company
shall have furnished any amendments or supplements thereto) or any preliminary
prospectus, or caused by, arising out of or based upon any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the case of the Prospectus, in the
light of the circumstances under which they were made, not misleading, provided
that (i) the foregoing indemnity shall not be available to any Participant
insofar as such Losses are caused by any untrue statement or omission or
alleged untrue statement or omission made in reliance upon and in 

 

 

16

 

conformity with information relating to such Participant furnished to the
Company in writing by or on behalf of such Participant expressly for use
therein, and (ii) that the foregoing indemnity with respect to any preliminary
prospectus shall not inure to the benefit of any Participant from whom the
Person asserting such Losses purchased Registrable Notes if (x) it is
established in the related proceeding that such Participant failed to send or
give a copy of the Prospectus (as amended or supplemented if such amendment or
supplement was furnished to such Participant prior to the written confirmation
of such sale) to such Person with or prior to the written confirmation of such
sale, if required by applicable law, and (y) the untrue statement or
omission or alleged untrue statement or omission was completely corrected in
the Prospectus (as amended or supplemented if amended or supplemented as
aforesaid) and such Prospectus does not contain any other untrue statement or
omission or alleged untrue statement or omission that was the subject matter of
the related proceeding.  This indemnity
agreement will be in addition to any liability that the Issuers may otherwise
have, including, but not limited to, liability under this Agreement.

 

(b)           Each
Participant agrees, severally and not jointly, to indemnify and hold harmless
each Issuer, each Person, if any, who controls any Issuer within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange
Act, and each of their respective agents, employees, officers and directors and
the agents, employees, officers and directors of any such controlling Person
from and against any Losses to which they or any of them may become subject
under the Securities Act, the Exchange Act or otherwise insofar as such Losses
(or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) or Prospectus (as amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) or any preliminary prospectus, or caused by, arising out of or based
upon any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in the case
of the Prospectus, in light of the circumstances under which they were made,
not misleading, in each case to the extent, but only to the extent, that any
such Loss arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with information relating to such Participant furnished in writing
to the Company by or on behalf of such Participant expressly for use therein.

 

(c)           Promptly
after receipt by an indemnified party under subsection 7(a) or 7(b) above of
notice of the commencement of any action, suit or proceeding (collectively, an “action”),
such indemnified party shall, if a claim in respect thereof is to be made
against the indemnifying party under such subsection, notify each party against
whom indemnification is to be sought in writing of the commencement of such
action (but the failure so to notify an indemnifying party shall not relieve
such indemnifying party from any liability that it may have under this Section
7 except to the extent that it has been prejudiced in any material respect by
such failure).  In case any such action
is brought against any indemnified party, and it notifies an indemnifying party
of the commencement of such action, the indemnifying party will be entitled to
participate in such action, and to the extent it may elect by written notice
delivered to the indemnified party promptly after receiving the aforesaid
notice from such indemnified party, to assume the defense of such action with
counsel reasonably satisfactory to such indemnified party.  Notwithstanding the foregoing, the
indemnified party or parties shall have the right to employ its or their own
counsel in any such action, but the reasonable fees and expenses of such
counsel shall be at the expense of such indemnified party or parties unless (i)
the employment of such counsel shall have been authorized in writing by the
indemnifying parties in connection with the defense of such action, (ii) the
indemnifying parties shall not have employed counsel to take charge of the
defense of such action within a reasonable time after notice of commencement of
the action, or (iii) the named parties to such action (including any impleaded
parties) include such indemnified party and the indemnifying party or parties
(or such indemnifying parties have assumed the defense of such action), and
such indemnified party or parties shall have reasonably concluded that there
may be defenses available to it or them that are 

 

 

17

 

different from or additional to those available to one or all of the
indemnifying parties (in which case the indemnifying parties shall not have the
right to direct the defense of such action on behalf of the indemnified party
or parties), in any of which events such reasonable fees and expenses of
counsel shall be borne by the indemnifying parties.  In no event shall the indemnifying party be
liable for the fees and expenses of more than one counsel (together with
appropriate local counsel) at any time for all indemnified parties in
connection with any one action or separate but substantially similar or related
actions arising in the same jurisdiction out of the same general allegations or
circumstances.  An indemnifying party
shall not be liable for any settlement of any claim or action effected without
its written consent, which consent may not be unreasonably withheld.  Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated
by paragraph (a) or (b) of this Section 7, then the indemnifying party agrees
that it shall be liable for any settlement of any proceeding effected without
its written consent if (i) such settlement is entered into more than 60
Business Days after receipt by such indemnifying party of the aforesaid
request, (ii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with such request prior to the date of such
settlement and (iii) such indemnified party shall have given the
indemnifying party at least 45 days’ prior notice of its intention to
settle.  No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement of
any pending or threatened proceeding in respect of which any indemnified party
is or could have been a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the
subject matter of such proceeding.

 

(d)           In
order to provide for contribution in circumstances in which the indemnification
provided for in this Section 7 is for any reason held to be unavailable from
the indemnifying party, or is insufficient to hold harmless a party indemnified
under this Section 7, each indemnifying party shall contribute to the amount
paid or payable by such indemnified party as a result of such aggregate Losses
(i) in such proportion as is appropriate to reflect the relative benefits
received by each indemnifying party, on the one hand, and each indemnified
party, on the other hand, from the sale of the Notes to the Initial Purchasers
or the resale of the Registrable Notes by such Holder, as applicable, or
(ii) if such allocation is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to above but also the relative fault of each indemnified party, on the one
hand, and each indemnifying party, on the other hand, in connection with the
statements or omissions that resulted in such Losses, as well as any other
relevant equitable considerations.  The
relative benefits received by the Issuers, on the one hand, and each
Participant, on the other hand, shall be deemed to be in the same proportion as
(x) the total proceeds from the sale of the Notes to the Initial Purchasers
(net of discounts and commissions but before deducting expenses) received by
the Issuers are to (y) the total net profit received by such Participant in
connection with the sale of the Registrable Notes.  The relative fault of the parties shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Issuers or such Participant
and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission or alleged statement
or omission.

 

(e)           The
parties agree that it would not be just and equitable if contribution pursuant
to this Section 7 were determined by pro rata allocation or by any other method
of allocation that does not take into account the equitable considerations
referred to above.  Notwithstanding the
provisions of this Section 7, (i) in no case shall any Participant be required
to contribute any amount in excess of the amount by which the total net profit
received by such Participant in connection with the sale of the Registrable
Notes exceeds the amount of any damages that such Participant has otherwise
been required to pay by reason of any untrue or alleged untrue statement or
omission or alleged omission and (ii) no person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to 

 

 

18

 

contribution from any person who was not guilty of such fraudulent
misrepresentation.  Any party entitled to
contribution will, promptly after receipt of notice of commencement of any
action against such party in respect of which a claim for contribution may be
made against another party or parties under this Section 7, notify such party
or parties from whom contribution may be sought, but the omission to so notify
such party or parties shall not relieve the party or parties from whom
contribution may be sought from any obligation it or they may have under this
Section 7 or otherwise, except to the extent that it has been prejudiced in any
material respect by such failure; provided, however, that no
additional notice shall be required with respect to any action for which notice
has been given under this Section 7 for purposes of indemnification.  Anything in this section to the contrary
notwithstanding, no party shall be liable for contribution with respect to any
action or claim settled without its written consent, provided, however,
that such written consent was not unreasonably withheld.

 

Section
8.                                  Rules 144 and
144A

 

The Company covenants that it will file the reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the Commission thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act
and, if at any time the Company is not required to file such reports, it will,
upon the request of any Holder or beneficial owner of Registrable Notes, make
available such information necessary to permit sales pursuant to Rule 144A
under the Securities Act.  The Issuers
further covenant that they will take such further action as any Holder of
Registrable Notes may reasonably request from time to time to enable such
Holder to sell Registrable Notes without registration under the Securities Act
within the limitation of the exemptions provided by (a) Rule 144(k) and Rule
144A under the Securities Act, as such Rules may be amended from time to time,
or (b) any similar rule or regulation hereafter adopted by the Commission.

 

Section
9.                                  Underwritten
Registrations

 

If any of the Registrable Notes covered by any Shelf Registration are
to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering and shall be reasonably acceptable to the Company.

 

No Holder of Registrable Notes may participate in any underwritten
registration hereunder if such Holder does not (a) agree to sell such
Holder’s Registrable Notes on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) complete and execute all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the
terms of such underwriting arrangements.

 

Section
10.                            Miscellaneous

 

(a)           No
Inconsistent Agreements.  The Issuers
have not, as of the date hereof, and shall not, after the date of this
Agreement, enter into any agreement with respect to any of their securities
that is inconsistent with the rights granted to the Holders of Registrable
Notes in this Agreement or otherwise conflicts with the provisions hereof.  The rights granted to the Holders hereunder
do not conflict with and are not inconsistent with, in any material respect,
the rights granted to the holders of any of the Issuers’ other issued and outstanding
securities under any such agreements. 
The Issuers have not entered and will not enter into any agreement with
respect to any of their securities which will grant to any Person piggy-back
registration rights with respect to any Registration Statement.

 

(b)           Adjustments
Affecting Registrable Notes.  The
Company shall not, directly or indirectly, take any action
with respect to the Registrable Notes as a class that would adversely affect
the 

 

 

19

 

ability of the Holders of Registrable  Notes to include such Registrable Notes in a
registration undertaken pursuant to this Agreement.

 

(c)           Amendments
and Waivers.  The provisions of this
Agreement may not be amended, modified
or supplemented, and waivers or consents to departures from the provisions
hereof may not be given except pursuant to a written agreement duly signed and
delivered by (I) the Company (on behalf of all Issuers) and (II)(A) the
Holders of not less than a majority in aggregate principal amount of the then
outstanding Registrable Notes and (B) in circumstances that would
adversely affect the Participating Broker-Dealers, the Participating Broker-Dealers
holding not less than a majority in aggregate principal amount of the Exchange
Notes held by all Participating Broker-Dealers; provided, however, that
Section 7 and this Section 10(c) may not be amended, modified or
supplemented except pursuant to a written agreement duly signed and delivered
by each Holder and each Participating Broker-Dealer (including any Person who
was a Holder or Participating Broker-Dealer of Registrable Notes or Exchange
Notes, as the case may be, disposed of pursuant to any Registration Statement)
affected by any such amendment, modification, supplement or waiver.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Notes whose
securities are being sold pursuant to a Registration Statement and that does
not directly or indirectly affect, impair, limit or compromise the rights of
other Holders of Registrable Notes may be given by Holders of at least a
majority in aggregate principal amount of the Registrable Notes being sold
pursuant to such Registration Statement.

 

(d)           Notices.  All notices and other communications (including,
without limitation, any notices or other communications
to the Trustee) provided for or permitted hereunder shall be made in writing by
hand-delivery, registered first-class mail, next-day air courier or telecopier:

 

(i)      if to a Holder of the Registrable Notes or
any Participating Broker-Dealer, at the most current address of such Holder or
Participating Broker-Dealer, as the case may be, set forth on the records of
the registrar under the Indenture.

 

(ii)     if to the Company, at the
address as follows:

 

Beazer
Homes USA, Inc.

1000 Abernathy Road, Suite 1200

Atlanta, Georgia 30328 

Telephone:  (770) 829-3700

Fax:  (770) 481-0431

Attention:  President

 

With a copy to:

 

Paul,
Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, New York  10022

Telephone:  (212) 318-6000

Fax:  (212) 319-4090

Attention:  William F. Schwitter, Esq.

 

20

 

(iii)    if to the Initial Purchasers, at the address
as follows:

 

UBS
Securities LLC

299 Park Avenue

New York, New York 10171

Telephone:  (212) 821-3000

Fax number:  (212) 821-6890

Attention:  Syndicate Department

 

With a copy to:

 

Cahill
Gordon & Reindel LLP

80 Pine Street

New York, New York  10005

Telephone:  (212) 701-3000

Fax:  (212) 269-5420

Attention:  Daniel J. Zubkoff, Esq.

 

All such notices and communications shall be deemed to have been duly
given:  when delivered by hand, if
personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by the recipient’s telecopier
machine, if telecopied; and on the next Business Day, if timely delivered to an
air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address and in the manner specified in such Indenture.

 

(e)           Guarantors.  So long as any Registrable Notes remain
outstanding, the Issuers shall cause each Person that becomes
a guarantor of the Notes under the Indenture to execute and deliver a
counterpart to this Agreement which subjects such Person to the provisions of
this Agreement as a Guarantor.  Each of
the Guarantors agrees to join the Company in all of its undertakings hereunder
to effect the Exchange Offer for the Exchange Notes and the filing of any Shelf
Registration Statement required hereunder.

 

(f)            Successors
and Assigns.  This Agreement shall
inure to the benefit of and be binding upon
the successors and assigns of each of the parties hereto, the Holders and the
Participating Broker-Dealers; provided, however, that this Agreement shall not
inure to the benefit of or be binding upon a successor or assign of a Holder
unless and to the extent such successor or assign holds Registrable Notes.

 

(g)           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto
in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same
agreement.

 

(h)           Headings.  The headings in this Agreement are for
convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

 

(i)            Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WHOLLY WITHIN THE
STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

 

21

 

(j)            Severability.  If any term, provision, covenant or restriction
of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

 

(k)           Securities
Held by the Company or Its Affiliates. 
Whenever the consent or approval of Holders of a specified
percentage of Registrable Notes is required hereunder, Registrable Notes held
by the Company or any of its affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

(l)            Third-Party
Beneficiaries.  Holders and
beneficial owners of Registrable Notes and Participating Broker-Dealers are
intended third-party beneficiaries of this Agreement, and this Agreement may be
enforced by such Persons.  No other
Person is intended to be, or shall be construed as, a third-party beneficiary
of this Agreement.

 

(m)          Attorneys’
Fees.  As between the parties to this
Agreement, in any action or proceeding
brought to enforce any provision of this Agreement, or where any provision
hereof is validly asserted as a defense, the successful party shall be entitled
to recover reasonable attorneys’ fees actually incurred in addition to its
costs and expenses and any other available remedy.

 

(n)           Entire
Agreement.  This Agreement, together
with  the Purchase Agreement and the Indenture, is intended by the parties as a
final and exclusive statement of the agreement and understanding of the parties
hereto in respect of the subject matter contained herein and therein and any
and all prior oral or written agreements, representations, or warranties,
contracts, understandings, correspondence, conversations and memoranda between
the Holders on the one hand and the Company on the other, or between or among
any agents, representatives, parents, subsidiaries, affiliates, predecessors in
interest or successors in interest with respect to the subject matter hereof
and thereof are merged herein and replaced hereby.

 

 

22

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

 

	
   

  	
  BEAZER HOMES USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President &

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  APRIL CORPORATION

  BEAZER ALLIED COMPANIES HOLDINGS, INC.

  BEAZER GENERAL SERVICES, INC.

  BEAZER HOMES CORP.

  BEAZER HOMES HOLDINGS CORP.

  BEAZER HOMES INDIANA HOLDINGS CORP.

  BEAZER HOMES SALES, INC.

  BEAZER HOMES TEXAS HOLDINGS, INC.

  BEAZER REALTY CORP.

  BEAZER REALTY, INC.

  BEAZER REALTY LOS ANGELES, INC.

  BEAZER REALTY SACRAMENTO, INC.

  BEAZER/SQUIRES REALTY, INC.

  HOMEBUILDERS TITLE SERVICES OF
            VIRGINIA, INC.

  HOMEBUILDERS TITLE SERVICES, INC.

  

 

 

 

	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  

 

 

	
   

  	
  BEAZER HOMES INDIANA, LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  its Managing Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BEAZER HOMES INVESTMENTS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BEAZER HOMES TEXAS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS, INC., its
  Managing Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BEAZER REALTY SERVICES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  

 

 

 

	
   

  	
  BEAZER SPE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP., its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BH BUILDING PRODUCTS, LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BH PROCUREMENT SERVICES, LLC, its managing
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS, L.P.,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS, INC., its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BH PROCUREMENT SERVICES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS, L.P.,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS, INC., its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  

 

 

 

	
   

  	
  PARAGON TITLE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC, its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TEXAS LONE STAR TITLE, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS, INC., its
  managing partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TRINITY HOMES LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS LLC, its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  

 

 

 

	
   

  	
  BEAZER COMMERCIAL HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP. its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BEAZER CLARKSBURG, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARDEN PARK VENTURES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O’Leary

  
	
   

  	
   

  	
  Name:

  	
  James O’Leary

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  

 

 

 

Accepted and agreed to as of the date

first above written, on behalf of itself

and the other several Initial Purchasers:

 

UBS SECURITIES LLC

 

	
  By:

  	
  /s/ Matthew S. Clark

  	
   

  
	
   

  	
  Name:

  	
  Matthew Clark

  
	
   

  	
  Title:

  	
  Executive Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Eric Lee

  	
   

  
	
   

  	
  Name:

  	
  Eric Lee

  
	
   

  	
  Title:

  	
  Associate Director

  
					

 

 

 

 

 

Schedule
A

Schedule of Guarantors

Beazer General Services, Inc.

Beazer Homes Corp.

Beazer/Squires Realty, Inc.

Beazer Homes Sales, Inc..

Beazer Homes Investments, LLC

Beazer Realty Corp.

Beazer Homes Holdings Corp.

Beazer Homes Indiana Holdings Corp.

Beazer Homes Texas Holdings, Inc.

Beazer Homes Texas, L.P.

Beazer Homes Indiana, LLP

April Corporation

Beazer SPE, LLC

Beazer Realty, Inc.

Beazer Realty Services, LLC

Beazer Realty Los Angeles, Inc.

Beazer Realty Sacramento, Inc.

BH Building Products, LP

BH Procurement Services, LLC

Homebuilders Title Services of Virginia, Inc.

Homebuilders Title Services, Inc.

Texas Lone Star Title, L.P.

Beazer Allied Companies Holdings, Inc.

Paragon Title, LLC

Trinity Homes LLC

Beazer Commercial Holdings, LLC

Beazer Clarksburg, LLC

Arden Park Ventures, LLCExhibit
10.40

 

	
  2006 Employee Equity Incentive
  Plan

  Notice of Grant of Stock Options

  and Option Agreement

  	
  Synopsys, Inc.

  ID: 56-1546236

  700 East Middlefield Road

  Mountain View, CA  94043

  
	
   

  	
   

  	
   

  
	
  <<Name>>

  <<Address Line>>

  <<City, State Zip
  Country>>

  	
  Option Number:

  

  ID:

  	
  <<number>>

  

  <<ID>>

  

 

Effective <<Grant
Date>>, Synopsys, Inc. (the “Company”) has granted you a
Nonstatutory Stock Option (the “Option”) under the 2006 Employee Equity
Incentive Plan (the “Plan”) to buy <<# of
Shares>>  shares
of  common stock of the Company at an
exercise price of <<price>> per
share.

 

This Option may be exercised, in whole or in
part, in accordance with the following vesting

schedule, subject to your continued service
with the Company or an affiliate.

 

 

	
  Shares

  	
   

  	
  Vest Type

  	
   

  	
  Full Vest

  	
   

  	
  Expiration

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  date

  	
   

  	
  expiration

  	
   

  
	
   

  	
   

  	
  On
  Vest Date

  	
   

  	
  date

  	
   

  	
  expiration

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Monthly

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1.             Exercise upon Termination of
Employment.  In the
event of termination of your employment or service with the Company for any
reason, you will be permitted to exercise the Option to the extent vested at
the time of termination for ninety (90) days following your date of
termination; provided, however, that if your termination is due to death or
disability, the post-termination exercise period is twelve (12) months; and
provided further that if your termination is for “Cause” as defined in the
Plan, you shall not be permitted to exercise the Option in any respect.

 

2.             Responsibility for Taxes.  Regardless of any action the Company, or my
employer, if different from the Company (the “Employer”) takes with respect to
any or all income tax, social insurance, payroll tax, payment on account or
other tax-related withholding (“Tax-Related Items”), I acknowledge that the
ultimate liability for all Tax-Related Items legally due by me is and remains
my responsibility and that the Employer (1) makes no representations or
undertakings regarding the treatment of any Tax-Related Items in connection
with any aspect of the Option, including the grant, vesting or exercise of the
Option, the subsequent sale of shares acquired pursuant to such exercise and
the receipt of any dividends; and (2) does not commit to structure the terms of
the grant or any aspect of the Option to reduce or eliminate my liability for
Tax-Related Items.

 

Prior to exercise of the
Option, I shall pay or make adequate arrangements satisfactory to the Employer
to satisfy all withholding and payment on account obligations of the
Employer.  In this regard, I authorize
the Employer to withhold all applicable Tax-Related Items from my wages or
other cash compensation paid to me by the Employer or from proceeds of the sale
of the shares.  Alternatively, or in
addition, if permissible under local law, the Employer may (1) sell or arrange
for the sale of shares that I acquire to meet the withholding obligation for
Tax-Related Items, and/or (2) withhold in shares, provided that the Employer
only withholds the amount of shares necessary to satisfy the minimum
withholding amount.  Finally, I shall pay
to the 

 

 

1

 

Employer any amount of Tax-Related Items that
the Employer may be required to withhold as a result of my receipt or exercise
of the Option and my sale of the shares obtained pursuant to any exercise of
the Option that cannot be satisfied by the means previously described.  The Employer may refuse to honor the exercise
and refuse to deliver the shares if I fail to comply with my obligations in
connection with the Tax-Related Items as described in this section.

 

3.             Nature of Grant.  In accepting the grant of the Option, I
acknowledge that:

(a)           the Plan is established voluntarily
by the Employer, is discretionary in nature, and may be modified, amended,
suspended or terminated by the Company as provided in the Plan;

(b)           the grant of the Option and any other
options under the Plan is voluntary and occasional and does not create any
contractual or other right to receive future grants of options, shares or any
other benefit or compensation in lieu of future options, even if options have
been granted repeatedly in the past;

(c)           all decisions with respect to future
option grants, if any, will be at the sole discretion of the Company;

(d)           my participation in the Plan shall
not create a right to further employment or service with the Employer and shall
not interfere with the ability of the Employer to terminate my employment or
service relationship at any time with or without cause;

(e)           I am voluntarily participating in the
Plan;

(f)            the Option is an extraordinary item
that does not constitute compensation of any kind for services of any kind
rendered to the Employer, and which is outside the scope of my employment or
service contract, if any;

(g)           the Option and any income derived
therefrom is a potential bonus payment not paid in lieu of any normal or
expected compensation or salary for any purposes, including, but not limited
to, calculating any severance, resignation, termination, redundancy, end of
service payments, bonuses, long-service awards, life or accident insurance
benefits, pension or retirement benefits or similar payments;

(h)           in the event of the termination of my
employment or service relationship, the Option will not be interpreted to form
an employment or service contract or relationship with the Employer; and
furthermore, the Option will not be interpreted to form an employment or
service contract with the Employer or any subsidiary or affiliate;

(i)            in the event of the termination of
my employment or service relationship, my eligibility to receive shares of
common stock or payments under the Option or the Plan, if any, will terminate
as of the date expressly provided in the Option, regardless of any reasonable
notice period mandated by local law;

(j)            the future value of the shares
underlying the Option is unknown and cannot be predicted with certainty;

 

2

 

(k)           if the value of the underlying shares
does not exceed the exercise price upon exercise, the Option will have no value
and if I exercise the Option, the value of the shares acquired upon exercise
may increase or decrease in value, even below the exercise price;

(l)            I understand that should I die
owning shares of Company common stock or the Option, such shares or the Option
may subject my estate to United States federal estate taxes.  I understand that I should seek my own tax
advice regarding this potential tax;

(m)          I disclaim any entitlement to
compensation or damages arises from the termination of the Option or diminution
in value of the shares of common stock and I hereby irrevocably release the
Company and the Employer from any such claim that may arise; and

(n)           the Plan and the Option set forth the
entire understanding between me, the Company, the Employer, and any affiliate
thereof regarding the acquisition of the shares of common stock and supersedes
all prior oral and written agreements pertaining to the Option.

4.             Data Privacy.  I hereby explicitly and unambiguously consent
to the collection, use and transfer, in electronic or other form, of my personal
data as described in this document by and among, as applicable, the Employer
and its subsidiaries and affiliates for the exclusive purpose of implementing,
administering and managing my participation in the Plan.

I
understand that the Employer holds certain personal information about me,
including, but not limited to, my name, home address and telephone number, date
of birth, social insurance number or other identification number, salary,
nationality, job title, any shares of stock or directorships held in Employer,
details of all options or any other entitlement to shares of stock awarded,
canceled, exercised, vested, unvested or outstanding in my favor (the “Personal
Data”), for the purpose of implementing, administering and managing the Plan.  I understand that Personal Data may be
transferred to any third parties assisting in the implementation,
administration and management of the Plan, that these recipients may be located
in my country or elsewhere, and that the recipient’s country may have different
data privacy laws and protections than my country.  I understand that I may request a list with
the names and addresses of any potential recipients of the Personal Data by
contacting my local human resources representative.  I authorize the recipients to receive,
possess, use, retain and transfer the Personal Data, in electronic or other
form, for the purposes of implementing, administering and managing my
participation in the Plan, including any requisite transfer of such Personal
Data as may be required to a broker or other third party with whom I may elect
to deposit any shares of stock acquired upon exercise of the Option.  I understand that Personal Data will be held
only as long as is necessary to implement, administer and manage my
participation in the Plan.  I understand
that I may, at any time, view the Personal Data, request additional information
about the storage and processing of the Personal Data, require any necessary
amendments to the Personal Data or refuse or withdraw the consents herein, in
any case without cost, by contacting in writing my local human resources
representative.  I understand, however,
that refusing or withdrawing my consent may affect my ability to hold the
Option and participate in the Plan.  For
more information on the consequences of my refusal to consent or withdrawal of
consent, I understand that I may contact my local human resources
representative.

5.             Governing Law.  The Option is governed by, and subject to,
the laws of the State of California without resort to that State’s
conflict-of-laws rules.  For purposes of
litigating any dispute that arises directly or indirectly from the relationship
of the parties evidenced by this grant or the Agreement, the parties hereby
submit to and consent to the exclusive jurisdiction of the State of California
and agree that such litigation shall be conducted only in the courts of Santa

 

3

 

Clara, California, or the federal courts for
the United States for the Northern District of California, and no other courts,
where this grant is made and/or to be performed.

 

6.             Electronic
Delivery.  The Company
may, in its sole discretion, decide to deliver any documents related to the
Option granted hereunder or to participation in the Plan (or future options or
other equity awards that may be granted under the Plan) by electronic means or
to request my consent to participate in the Plan by electronic means.  I hereby consent to receive such documents by
electronic delivery and, if requested, to agree to participate in the Plan
through an on-line or electronic system established and maintained by the
Company or another third party designated by the Company.

7.             Severability.  The provisions of this Agreement are
severable and if any one or more provisions are determined to be illegal or
otherwise unenforceable, in whole or in part, the remaining provisions shall
nevertheless be binding and enforceable.

 

*  * 
*  *  * 
*  *  * 
*  *  * 
*  *  *  *

 

My signature below indicates that I have read
this Notice of Grant of Stock Options and Option Agreement and agree to be
bound by the terms and conditions of the Plan and this Agreement.

 

 

<<Name>>                                                                                            Date

 

 

Brian Beattie, CFO

 

 

4

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