Document:

Exhibit 4.1

 

 

BEAZER HOMES USA, INC. AND THE SUBSIDIARY
GUARANTORS PARTY HERETO

 

 

6-7/8% Senior Notes due 2015

 

 

 

Fifth Supplemental Indenture

 

Dated as of June 8, 2005

 

 

 

U.S. BANK NATIONAL ASSOCIATION,

Trustee

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  	
   

  
	
   

  	
   

  
	
  THE 6-7/8% SENIOR NOTES DUE 2015

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  1.01.

  	
  Designation of 6-7/8% Senior Notes Due 2015

  	
   

  
	
  Section
  1.02.

  	
  Interest

  	
   

  
	
  Section
  1.03.

  	
  Redemption

  	
   

  
	
  Section
  1.04.

  	
  Maturity

  	
   

  
	
  Section
  1.05.

  	
  Other Terms of the Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  
	
   

  	
   

  
	
  CERTAIN DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  Section
  3.01.

  	
  Disposition of Proceeds of Asset Sales

  	
   

  
	
  Section
  3.02.

  	
  Limitations on Restricted Payments

  	
   

  
	
  Section
  3.03.

  	
  Limitations on Additional Indebtedness

  	
   

  
	
  Section
  3.04.

  	
  Limitations and Restrictions on Issuance of
  Capital Stock of Restricted Subsidiaries

  	
   

  
	
  Section
  3.05.

  	
  Change of Control

  	
   

  
	
  Section
  3.06.

  	
  Limitations on Transactions with
  Stockholders and Affiliates

  	
   

  
	
  Section
  3.07.

  	
  Limitations on Liens

  	
   

  
	
  Section
  3.08.

  	
  Limitations on Restrictions on
  Distributions from Restricted Subsidiaries

  	
   

  
	
  Section
  3.09.

  	
  Maintenance of Consolidated Tangible Net
  Worth

  	
   

  
	
  Section
  3.10.

  	
  Limitations on Mergers and Consolidations

  	
   

  
	
  Section
  3.11.

  	
  Reports

  	
   

  
	
  Section
  3.12.

  	
  Subsidiary Guarantees

  	
   

  
	
  Section
  3.13.

  	
  Limitation of
  Applicability of Certain Covenants if the Notes Are Rated Investment Grade

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY GUARANTEES

  	
   

  
	
   

  	
   

  
	
  Section
  4.01.

  	
  Subsidiary Guarantees of Notes

  	
   

  

 

i

 

	
  Section
  4.02.

  	
  Execution and Delivery of Subsidiary
  Guarantee

  	
   

  
	
  Section
  4.03.

  	
  Additional Subsidiary Guarantors

  	
   

  
	
  Section
  4.04.

  	
  Release
  of a Subsidiary Guarantor

  	
   

  
	
  Section
  4.05.

  	
  Waiver of Subrogation

  	
   

  
	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section
  5.01.

  	
  Events of Default

  	
   

  
	
  Section
  5.02.

  	
  Amendment, Supplement and Waiver

  	
   

  
	
  Section
  5.03.

  	
  Indenture

  	
   

  
	
  Section
  5.04.

  	
  Governing
  Law

  	
   

  
	
  Section
  5.05.

  	
  No Adverse Interpretation of Other
  Agreements

  	
   

  
	
  Section
  5.06.

  	
  Successors and Assigns

  	
   

  
	
  Section
  5.07.

  	
  Duplicate Originals

  	
   

  
	
  Section
  5.08.

  	
  Severability

  	
   

  

 

	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  –

  	
  Form of Note

  
	
  Exhibit
  B

  	
  –

  	
  Form of Exchange Note

  
	
  Exhibit
  C

  	
  –

  	
  Form of Certificate to be Delivered in
  Connection with Transfers to Non-QIB Accredited Investors

  
	
  Exhibit
  D

  	
  –

  	
  Form of Certificate to be Delivered in
  Connection with Transfers Pursuant to Regulation S

  

 

ii

 

FIFTH SUPPLEMENTAL INDENTURE dated as of June
8, 2004 (the ”Supplemental Indenture”), to the Indenture dated as
of April 17, 2002 (as amended, modified or supplemented from time to time
in accordance therewith, the “Indenture”), by and among BEAZER HOMES
USA, INC., a Delaware corporation (the “Company”), each of the
Subsidiary Guarantors (as defined herein) and U.S. BANK NATIONAL ASSOCIATION,
as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit
of the other party and for the equal and ratable benefit of the holders of
Notes (as defined herein):

 

WHEREAS, the Company, the Subsidiary
Guarantors and the Trustee have duly authorized the execution and delivery of
the Indenture to provide for the issuance from time to time of senior debt
securities (“Securities”) to be issued in one or more series as in the
Indenture provided;

 

WHEREAS, the Company and the Subsidiary
Guarantors desire and have requested the Trustee to join them in the execution
and delivery of this Supplemental Indenture in order to establish and provide
for the issuance by the Company of a series of Securities designated as its 6-7/8%
Senior Notes due 2015, in the initial aggregate principal amount of $300,000,000.  The 6-7/8% Senior Notes due 2015 shall be
substantially in the form attached hereto as Exhibit A (the “Initial
Notes”) and the 6-7/8% Senior Notes due 2015 to be offered in exchange for
the Initial Notes pursuant to the terms of the Registration Rights Agreement,
shall be substantially in the form attached hereto as Exhibit B (the “Exchange
Notes” and together with the Initial Notes, the “Notes”), guaranteed
by the Subsidiary Guarantors, on the terms set forth herein;

 

WHEREAS, Section 2.01 of the Indenture
provides that a supplemental indenture may be entered into by the Company, the
Subsidiary Guarantors and the Trustee for such purpose provided certain
conditions are met;

 

WHEREAS, the conditions set forth in the
Indenture for the execution and delivery of this Supplemental Indenture have
been complied with; and

 

WHEREAS, all things necessary to make this
Supplemental Indenture a valid agreement of the Company, the Subsidiary
Guarantors and the Trustee, in accordance with its terms, and a valid amendment
of, and supplement to, the Indenture have been done;

 

NOW, THEREFORE:

 

In consideration of the premises and the
purchase and acceptance of the Notes by the holders thereof the Company and the
Subsidiary Guarantors mutually covenant and agree with the Trustee, for the
equal and ratable benefit of the holders, that the Indenture is supplemented
and amended, to the extent expressed herein, as follows:

 

 

ARTICLE ONE

 

The 6-7/8%
Senior Notes due 2015

 

Section 1.01.                                                Designation
of 6-7/8% Senior Notes due 2015.

 

The changes, modifications and supplements to
the Indenture effected by this Supplemental Indenture shall be applicable only
with respect to, and govern the terms of, the Notes, which shall not be limited
in aggregate principal amount, and shall not apply to any other Securities that
may be issued under the Indenture unless a supplemental indenture with respect
to such other Securities specifically incorporates such changes, modifications
and supplements.  Pursuant to this
Supplemental Indenture, there is hereby created and designated a series of Securities
under the Indenture entitled “6-7/8% Senior Notes due 2015.”  The Notes shall be in the form of Exhibit
A and Exhibit B hereto.  The
Notes shall be guaranteed by the Subsidiary Guarantors as provided herein.  The Notes may bear an appropriate legend
regarding original issue discount for federal income tax purposes.  Subject to the terms herein, including
compliance with Section 3.03 hereof, the Company may, at its option,
without consent from the Holders, issue additional Notes from time to time.

 

Section 1.02.                                                Interest.

 

The Notes shall bear interest at the rate set
forth in the Notes.  Interest on the
Notes shall be payable to the persons in whose name the Notes are registered at
the close of business on the record date for such interest payment.  The date from which interest shall accrue for
each Note shall be the most recent to occur of June 8, 2005 or the most recent
Interest Payment Date.

 

Section 1.03.                                                Redemption.

 

The Company, at its option, may redeem the
Notes in accordance with the provisions of and at the Redemption Prices set
forth in the Notes and in accordance with the provisions of the Indenture,
including, without limitation, Article Three thereof.

 

Section 1.04.                                                Maturity.

 

The date on which the principal of the Notes
is payable, unless accelerated pursuant to the terms hereof, shall be July 15,
2015.

 

Section 1.05.                                                Other
Terms of the Notes.

 

Without limiting the foregoing provisions of
this Article One, the terms of the Notes shall be as set forth in the forms of
Note set forth in Exhibit A and Exhibit B hereto and as
provided in the Indenture.

 

The Notes shall be payable and may be
presented for payment, purchase, conversion, registration of transfer and exchange,
without service charge, at the office of the Company maintained for such
purpose in New York, New York, which shall initially be the office or agency of
the Trustee.

 

2

 

ARTICLE TWO

 

Certain
Definitions

 

The following terms have the meanings set forth
below in this Supplemental Indenture. 
Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to such terms in the Indenture.  To the extent terms defined herein differ
from the Indenture the terms defined herein will govern.

 

“Acquisition Indebtedness” means
Indebtedness of any Person and its Subsidiaries existing at the time such
Person became a Subsidiary of the Company (or such Person is merged with or
into the Company or one of the Company’s Subsidiaries) or assumed in connection
with the acquisition of assets from any such Person, including, without
limitation, Indebtedness Incurred in connection with, or in contemplation of
(a) such Person being merged with or into or becoming a Subsidiary of the
Company or one of its Subsidiaries (but excluding Indebtedness of such Person
which is extinguished, retired or repaid in connection with such Person being
merged with or into or becoming a Subsidiary of the Company or one of its Subsidiaries)
or (b) such acquisition of assets from any such Person.

 

“Affiliate” of any Person means any
other Person directly or indirectly controlling or controlled by, or under
direct or indirect common control with, such Person.  For purposes hereof, each executive officer
and director of the Company and each Subsidiary of the Company will be an
Affiliate of the Company.  In addition,
for purposes hereof, control of a Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise. 
Notwithstanding the foregoing, the term “Affiliate” will not include,
with respect to the Company or any Restricted Subsidiary which is a Wholly
Owned Subsidiary of the Company, any Restricted Subsidiary which is a Wholly
Owned Subsidiary of the Company.

 

“Applicable Debt” means all
Indebtedness of the Company or any of its Restricted Subsidiaries (i) under the
Bank Credit Facility or (ii) that is publicly traded (including in the Rule
144A market), including without limitation the Company’s senior notes and
senior subordinated notes outstanding on the Issue Date. Applicable Debt
secured by a Lien on a Restricted Subsidiary’s property or issued by such
Restricted Subsidiary shall be deemed guaranteed by such Restricted Subsidiary.

 

“Asset Sale” for any Person means the
sale, lease, conveyance or other disposition (including, without limitation, by
merger, consolidation or sale and leaseback transaction, and whether by
operation of law or otherwise) of any of that Person’s assets (including,
without limitation, the sale or other disposition of Capital Stock of any
Subsidiary of such Person, whether by such Person or such Subsidiary), whether
owned on the date hereof or subsequently acquired in one transaction or a
series of related transactions, in which such Person and/or its Subsidiaries
receive cash and/or other consideration (including, without limitation, the
unconditional assumption of Indebtedness of such Person and/or its
Subsidiaries) having an aggregate Fair Market Value of $500,000 or more as to
each such transaction or series of related transactions; provided, however,
that

 

3

 

(i)                  a transaction or series of related
transactions that results in a Change of Control will not constitute an Asset
Sale,

 

(ii)               sales of homes in the ordinary course of
business will not constitute Asset Sales,

 

(iii)            sales, leases, conveyances or other
dispositions, including, without limitation, exchanges or swaps of real estate
in the ordinary course of business, for development of the Company’s or any of
its Subsidiaries’ projects, will not constitute Asset Sales,

 

(iv)           sales, leases, sale-leasebacks or other
dispositions of amenities, model homes and other improvements at the Company’s
or its Subsidiaries’ projects in the ordinary course of business will not
constitute Asset Sales, and

 

(v)              transactions between the Company and any
of its Restricted Subsidiaries which are Wholly Owned Subsidiaries, or among
such Restricted Subsidiaries which are Wholly Owned Subsidiaries of the
Company, will not constitute Asset Sales.

 

“Bank Credit Facility” means the
credit facility among the Company, as borrower thereunder, the Subsidiary Guarantors
and the financial institutions named therein, as such facility may be amended,
restated, supplemented or otherwise modified from time to time, and includes
any facility extending the maturity of, refinancing or restructuring (including,
without limitation, the inclusion of additional borrowers thereunder that are
Unrestricted Subsidiaries) all or any portion of, the Indebtedness under such facility
or any successor facilities and includes any facility with one or more lenders
refinancing or replacing all or any portion of the Indebtedness under such facility
or any successor facilities.

 

“Bankruptcy Law” means title 11 of the
United States Code, as amended, or any similar federal or state law for the
relief of debtors.

 

“Business Day” means any day other
than a Legal Holiday.

 

“Capital Stock” of any Person means
any and all shares, rights to purchase, warrants or options (whether or not currently
exercisable), participations or other equivalents of or interests in (however
designated and whether voting or non-voting) the equity (which includes, but is
not limited to, common stock, preferred stock and partnership and joint venture
interests) of such Person (excluding any debt securities that are convertible
into, or exchangeable for, such equity).

 

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

 

4

 

“Change of Control” means any of the
following:

 

(i)                                     the sale, lease,
conveyance or other disposition of all or substantially all of the Company’s
assets as an entirety or substantially as an entirety to any Person or “group”
(within the meaning of Section 13(d)(3) of the Exchange Act) in one or a series
of transactions; provided that a transaction where the holders of all
classes of Common Equity of the Company immediately prior to such transaction own,
directly or indirectly, 50% or more of the aggregate voting power of all
classes of Common Equity of such Person or group immediately after such
transaction will not be a Change of Control;

 

(ii)                                  the acquisition by
the Company and/or any of its Subsidiaries of 50% or more of the aggregate
voting power of all classes of Common Equity of the Company in one transaction
or a series of related transactions;

 

(iii)                               the liquidation or
dissolution of the Company; provided that a liquidation or dissolution
of the Company which is part of a transaction or series of related transactions
that does not constitute a Change of Control under the “provided” clause of
clause (i) above will not constitute a Change of Control under this clause
(iii);

 

(iv)                              any transaction or a
series of related transactions (as a result of a tender offer, merger,
consolidation or otherwise) that results in, or that is in connection with, (a)
any Person, including a “group” (within the meaning of Section 13(d)(3) of the
Exchange Act) acquiring “beneficial ownership” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of 50% or more of the aggregate
voting power of all classes of Common Equity of the Company or of any Person
that possesses “beneficial ownership” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% or more of the aggregate voting
power of all classes of Common Equity of the Company or (b) less than 50%
(measured by the aggregate voting power of all classes) of the Common Equity of
the Company being registered under Section 12(b) or 12(g) of the Exchange Act;
or

 

(v)                                 a majority of the
Board of Directors of the Company not being comprised of Continuing Directors.

 

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

 

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

 

“Consolidated Cash Flow Available for
Fixed Charges” of the Company and its Restricted Subsidiaries means for any
period, the sum of the amounts for such period of

 

(i)                                     Consolidated Net
Income, plus

 

5

 

(ii)                                  Consolidated Income
Tax Expense (without regard to income tax expense or credits attributable to
extraordinary and nonrecurring gains or losses on Asset Sales), plus

 

(iii)                               Consolidated Interest
Expense, plus

 

(iv)                              all depreciation, and,
without duplication, amortization (including, without limitation, capitalized
interest amortized to cost of sales), plus

 

(v)                                 all other non-cash
items reducing Consolidated Net Income during such period,

 

minus all
other non-cash items increasing Consolidated Net Income during such period, all
as determined on a consolidated basis for the Company and its Restricted
Subsidiaries in accordance with GAAP.

 

“Consolidated Fixed Charge Coverage Ratio”
of the Company means, with respect to any determination date, the ratio of
(i) Consolidated Cash Flow Available for Fixed Charges of the Company for
the prior four full fiscal quarters for which financial results have been
reported immediately preceding the determination date, to (ii) the
aggregate Consolidated Interest Incurred of the Company for the prior four full
fiscal quarters for which financial results have been reported immediately
preceding the determination date; provided that

 

(i)                                     with respect to
any Indebtedness Incurred during, and remaining outstanding at the end of, such
four full fiscal quarter period, such Indebtedness will be assumed to have been
incurred as of the first day of such four full fiscal quarter period,

 

(ii)                                  with respect to
Indebtedness repaid (other than a repayment of revolving credit obligations
repaid solely out of operating cash flows) during such four full fiscal quarter
period, such Indebtedness will be assumed to have been repaid on the first day
of such four full fiscal quarter period,

 

(iii)                               with respect to the
Incurrence of any Acquisition Indebtedness, such Indebtedness and any proceeds
therefrom will be assumed to have been Incurred and applied as of the first day
of such four full fiscal quarter period, and the results of operations of any
Person and any Subsidiary of such Person that, in connection with or in
contemplation of such Incurrence, becomes a Subsidiary of the Company or is
merged with or into the Company or one of the Company’s Subsidiaries or whose
assets are acquired, will be included, on a pro forma basis, in the calculation
of the Consolidated Fixed Charge Coverage Ratio as if such transaction had
occurred on the first day of such four full fiscal quarter period, and

 

(iv)                              with respect to any other
transaction pursuant to which any Person becomes a Subsidiary of the Company or
is merged with or into the Company or one of the Company’s Subsidiaries or
pursuant to which any Person’s assets are acquired, such Consolidated Fixed
Charge Coverage Ratio shall be calculated on a pro forma basis as if such
transaction had occurred on the first day of such four full fiscal quarter
period, but

 

6

 

only if such transaction would require a pro forma presentation in
financial statements prepared pursuant to Rule 11-02 of Regulation S-X
under the Securities Act.

 

“Consolidated Income Tax Expense” of
the Company for any period means the income tax expense of the Company and its
Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

 

“Consolidated Interest Expense” of the
Company for any period means the Interest Expense of the Company and its Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated Interest Incurred” of
the Company for any period means the Interest Incurred of the Company and its Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated Net Income” of the
Company for any period means the aggregate net income (or loss) of the Company
and its Restricted Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP; provided that there will be excluded from
such net income (to the extent otherwise included therein), without
duplication:

 

(i)                                     the net income (or
loss) of any Person (other than a Restricted Subsidiary) in which any Person
(including, without limitation, an Unrestricted Subsidiary) other than the
Company or any Restricted Subsidiary has an ownership interest, except to the
extent that any such income has actually been received by the Company or any
Restricted Subsidiary in the form of cash dividends or similar cash
distributions during such period, or in any other form but converted to cash
during such period,

 

(ii)                                  except to the extent
includable in Consolidated Net Income pursuant to the foregoing
clause (i), the net income (or loss) of any Person that accrued prior to
the date that (a) such Person becomes a Restricted Subsidiary or is merged
with or into or consolidated with the Company or any of its Restricted
Subsidiaries or (b) the assets of such Person are acquired by the Company
or any of its Restricted Subsidiaries,

 

(iii)                               the net income of any
Restricted Subsidiary to the extent that (but only so long as) the declaration
or payment of dividends or similar distributions by such Restricted Subsidiary
of that income is not permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Restricted Subsidiary during such period,

 

(iv)                              in the case of a
successor to the Company by consolidation, merger or transfer of its assets,
any earnings of the successor prior to such merger, consolidation or transfer
of assets and

 

(v)                                 the gains (but not
losses) realized during such period by the Company or any of its Restricted
Subsidiaries resulting from (a) the acquisition of securities issued by
the Company or extinguishment of Indebtedness of the Company or any of its
Restricted Subsidiaries, (b) Asset Sales by the Company or any of its
Restricted Subsidiaries and

 

7

 

(c) other extraordinary items realized by the Company or any of
its Restricted Subsidiaries.

 

Notwithstanding the foregoing, in calculating
Consolidated Net Income, the Company will be entitled to take into consideration
the tax benefits associated with any loss described in clause (v) of the
preceding sentence, but only to the extent such tax benefits are actually
recognized by the Company or any of its Restricted Subsidiaries during such
period; provided, further, that there will be included in such
net income, without duplication, the net income of any Unrestricted Subsidiary
to the extent such net income is actually received by the Company or any of its
Restricted Subsidiaries in the form of cash dividends or similar cash distributions
during such period, or in any other form but converted to cash during such
period.

 

“Consolidated Tangible Assets” of the
Company as of any date means the total amount of assets of the Company and its
Restricted Subsidiaries (less applicable reserves) on a consolidated basis at
the end of the fiscal quarter immediately preceding such date, as determined in
accordance with GAAP, less: 
(i) Intangible Assets and (ii) appropriate adjustments on
account of minority interests of other Persons holding equity investments in
Restricted Subsidiaries, in the case of each of clauses (i) and
(ii) above, as reflected on the consolidated balance sheet of the Company
and its Restricted Subsidiaries as of the end of the fiscal quarter immediately
preceding such date.

 

“Consolidated Tangible Net Worth” of
the Company as of any date means the stockholders’ equity (including any Preferred
Stock that is classified as equity under GAAP, other than Disqualified Stock)
of the Company and its Restricted Subsidiaries on a consolidated basis at the
end of the fiscal quarter immediately preceding such date, as determined in
accordance with GAAP, plus any amount of unvested deferred compensation
included, in accordance with GAAP, as an offset to stockholders’ equity, less
the amount of Intangible Assets reflected on the consolidated balance sheet of
the Company and its Restricted Subsidiaries as of the end of the fiscal quarter
immediately preceding such date.

 

“Continuing Director” means at any
date a member of the Board of Directors of the Company who

 

(i)                                     was a member of
the Board of Directors of the Company on the initial issuance date of the Notes
hereunder or

 

(ii)                                  was nominated for
election or elected to the Board of Directors of the Company with the
affirmative vote of at least a majority of the directors who were Continuing
Directors at the time of such nomination or election.

 

“Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Default” means any event, act or
condition that is, or after notice or the passage of time, or both, would be,
an Event of Default.

 

“Disqualified Stock” means any Capital
Stock that, by its terms (or by the terms of any security into which it is convertible
or for which it is exchangeable), or upon the happening

 

8

 

of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the option of the holder thereof, in whole or in part, on or
prior to the final maturity date of the Notes; provided that any Capital
Stock which would not constitute Disqualified Stock but for provisions thereof
giving holders thereof the right to require the Company to repurchase or redeem
such Capital Stock upon the occurrence of a change of control occurring prior
to the final maturity of the Notes will not constitute Disqualified Stock if
the change of control provisions applicable to such Capital Stock are no more
favorable to the holders of such Capital Stock than those contained in
Section 3.05 hereof and such Capital Stock specifically provides that the
Company will not repurchase or redeem (or be required to repurchase or redeem)
any such Capital Stock pursuant to such provisions prior to the Company’s repurchase
of Notes pursuant to Section 3.05 hereof.

 

“Disqualified Stock Dividend” of any
Person means, for any dividend payable with regard to Disqualified Stock issued
by such Person, the amount of such dividend multiplied by a fraction, the
numerator of which is one and the denominator of which is one minus the maximum
statutory combined federal, state and local income tax rate (expressed as a
decimal number between 1 and 0) then applicable to such Person.

 

“Equity Offering” means a public or
private equity offering or sale by the Company for cash of Capital Stock, other
than an offering or sale of Disqualified Stock.

 

“Event of Default” has the meaning set
forth in Section 5.01 hereof.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“Exchange Notes” has the meaning
provided in the Recitals.

 

“Existing Indebtedness” means all of
the Indebtedness of the Company and its Subsidiaries that is outstanding on the
date hereof.

 

“Extinguished Covenants” has the
meaning set forth in Section 3.13 hereof.

 

“Fair Market Value” with respect to
any asset or property means the sale value that would be obtained in an arm’s
length transaction between an informed and willing seller under no compulsion
to sell and an informed and willing buyer under no compulsion to buy.  Fair Market Value shall be determined by the
Board of Directors of the Company acting in good faith and shall be evidenced
by a board resolution (certified by the Secretary or Assistant Secretary of the
Company) delivered to the Trustee.

 

“GAAP” means generally accepted
accounting principles set forth in the opinions and interpretations of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
statements and interpretations of the Financial Accounting Standards Board or
in such other statements by such other entity as may be approved by a
significant segment of the accounting profession of the United States, as in
effect on April 17, 2002.

 

“Hedging Obligations” of any Person
means the obligations of such Person pursuant to any interest rate swap agreement,
foreign currency exchange agreement, interest rate

 

9

 

collar agreement, option or futures contract
or other similar agreement or arrangement relating to interest rates or foreign
exchange rates.

 

“Holder” means a Person in whose name
a Note is registered in the Security Register.

 

“Incur” means to, directly or
indirectly, create, incur, assume, guarantee, extend the maturity of, or
otherwise become liable with respect to any Indebtedness; provided, however,
that neither the accrual of interest (whether such interest is payable in cash
or kind) nor the accretion of original issue discount shall be considered an
Incurrence of Indebtedness.

 

“Indebtedness” of any Person at any
date means, without duplication,

 

(i)                                     all indebtedness
of such Person for borrowed money (whether or not the recourse of the lender is
to the whole of the assets of such Person or only to a portion thereof),

 

(ii)                                  all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments,

 

(iii)                               all fixed obligations of
such Person in respect of letters of credit or other similar instruments (or
reimbursement obligations with respect thereto), other than standby letters of
credit issued for the benefit of, or surety and performance bonds issued by,
such Person in the ordinary course of business,

 

(iv)                              all obligations of such
Person with respect to Hedging Obligations (other than those that fix or cap
the interest rate on variable rate Indebtedness otherwise permitted hereunder
or that fix the exchange rate in connection with Indebtedness denominated in a
foreign currency and otherwise permitted hereunder),

 

(v)                                 all obligations of
such Person to pay the deferred and unpaid purchase price of property or
services, including, without limitation, all conditional sale obligations of
such Person and all obligations under any title retention agreement; provided,
however, that (a) any obligations described in this clause (v)
which are non-interest bearing and which have a maturity of not more than six
months from the date of Incurrence thereof shall not constitute Indebtedness
and (b) trade payables and accrued expenses Incurred in the ordinary
course of business shall not constitute Indebtedness,

 

(vi)                              all Capitalized Lease Obligations
of such Person,

 

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

 

(viii)                        all Indebtedness of others
guaranteed by, or otherwise the liability of, such Person to the extent of such
guarantee or liability, and

 

10

 

(ix)                                all Disqualified Stock
issued by such Person (the amount of Indebtedness represented by any
Disqualified Stock will equal the greater of the voluntary or involuntary
liquidation preference plus accrued and unpaid dividends).

 

The amount of Indebtedness of any Person at
any date will be

 

(a)                                  the
outstanding balance at such date of all unconditional obligations as described
above,

 

(b)                                 the
maximum liability of such Person for any contingent obligations under
clause (viii) above and

 

(c)                                  in
the case of clause (vii) (if the Indebtedness referred to therein is not
assumed by such Person), the lesser of the (A) Fair Market Value of all
assets subject to a Lien securing the Indebtedness of others on the date that
the Lien attaches and (B) amount of the Indebtedness secured.

 

“Independent Financial Advisor” means
an accounting, appraisal or investment banking firm of nationally recognized
standing that is, in the reasonable judgment of the Company’s Board of
Directors, (i) qualified to perform the task for which it has been engaged, and
(ii) disinterested and independent, in a direct and indirect manner, of the
parties to the Affiliate Transaction with respect to which such firm has been
engaged.

 

“Initial Notes” has the meaning
provided in the Recitals.

 

“interest” means, with respect to the
Notes, the sum of interest and any Liquidated Damages on the Notes.

 

“Intangible Assets” of the Company
means all unamortized debt discount and expense, unamortized deferred charges,
goodwill, patents, trademarks, service marks, trade names, copyrights and all
other items which would be treated as intangibles on the consolidated balance
sheet of the Company and its Restricted Subsidiaries prepared in accordance
with GAAP.

 

“Interest Expense” of any Person for
any period means, without duplication, the aggregate amount of (i) interest
which, in conformity with GAAP, would be set opposite the caption “interest
expense” or any like caption on an income statement for such Person (including,
without limitation, imputed interest included in Capitalized Lease Obligations,
all commissions, discounts and other fees and charges owed with respect to
letters of credit securing financial obligations and bankers’ acceptance
financing, the net costs associated with Hedging Obligations, amortization of
other financing fees and expenses, the interest portion of any deferred payment
obligation, amortization of discount or premium, if any, and all other non-cash
interest expense other than interest and other charges amortized to cost of
sales) and includes, with respect to the Company and its Restricted
Subsidiaries, without duplication (including duplication of the foregoing
items), all interest amortized to cost of sales for such period, and (ii) the
amount of Disqualified Stock Dividends recognized by the Company on any
Disqualified Stock whether or not paid during such period.

 

11

 

“Interest Incurred” of any Person for
any period means, without duplication, the aggregate amount of (i) interest
which, in conformity with GAAP, would be set opposite the caption “interest
expense” or any like caption on an income statement for such Person (including,
without limitation, imputed interest included in Capitalized Lease Obligations,
all commissions, discounts and other fees and charges owed with respect to
letters of credit securing financial obligations and bankers’ acceptance
financing, the net costs associated with Hedging Obligations, amortization of
other financing fees and expenses, the interest portion of any deferred payment
obligation, amortization of discount or premium, if any, and all other non-cash
interest expense other than interest and other charges amortized to cost of
sales) and includes, with respect to the Company and its Restricted
Subsidiaries, without duplication (including duplication of the foregoing
items), all interest capitalized for such period, all interest attributable to
discontinued operations for such period to the extent not set forth on the income
statement under the caption “interest expense” or any like caption, and all
interest actually paid by the Company or a Restricted Subsidiary under any
guarantee of Indebtedness (including, without limitation, a guarantee of
principal, interest or any combination thereof) of any other Person during such
period and (ii) the amount of Disqualified Stock Dividends recognized by the
Company on any Disqualified Stock whether or not declared during such period.

 

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

 

“Investments” of any Person means all
(i) investments by such Person in any other Person in the form of loans, advances
or capital contributions, (ii) guarantees of Indebtedness or other obligations
of any other Person by such Person, (iii) purchases (or other acquisitions for
consideration) by such Person of Indebtedness, Capital Stock or other securities
of any other Person and (iv) other items that would be classified as
investments on a balance sheet of such Person determined in accordance with
GAAP.

 

“Issue Date” means the initial date of
issuance of the Notes hereunder.

 

“Legal Holiday” means Saturday, Sunday
or a day on which banking institutions in New York, New York, Chicago,
Illinois, or at a place of payment are authorized or obligated by law,
regulation or executive order to remain closed. 
If a payment date is a Legal Holiday at a place of payment, payment
shall be made at that place on the next succeeding day that is not a Legal
Holiday.

 

“Lien” means, with respect to any
asset, any mortgage, lien, pledge, charge, security interest or other similar
encumbrance of any kind upon or in respect of such asset, whether or not filed,
recorded or otherwise perfected under applicable law (including, without
limitation, any conditional sale or other title retention agreement, and any
lease in the nature thereof, any option or other agreement to sell, and any
filing of, or agreement to give, any financing statement under the Uniform
Commercial Code (or equivalent statutes) of any jurisdiction).

 

12

 

“Liquidated Damages” shall have the
meaning provided in paragraph 6 of the Initial Note.

 

“Material Subsidiary” means any
Subsidiary of the Company which accounted for five percent or more of the Consolidated
Tangible Assets or Consolidated Cash Flow Available for Fixed Charges of the
Company on a consolidated basis for the fiscal year ending immediately prior to
any Default or Event of Default.

 

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

 

“Net Proceeds” means

 

(i)                                     cash (in U.S.
dollars or freely convertible into U.S. dollars) received by the Company or any
Restricted Subsidiary from an Asset Sale net of

 

(a)                                  all brokerage
commissions, investment banking fees and all other fees and expenses
(including, without limitation, fees and expenses of counsel, financial advisors,
accountants and investment bankers) related to such Asset Sale,

 

(b)                                 provisions for all
income and other taxes measured by or resulting from such Asset Sale of the
Company or any of its Restricted Subsidiaries,

 

(c)                                  payments made to
retire Indebtedness that was Incurred in accordance with the terms hereof and
that either (1) is secured by a Lien incurred in accordance with the terms
hereof on the property or assets sold or (2) is required in connection with
such Asset Sale to the extent actually repaid in cash,

 

(d)                                 amounts required to be
paid to any Person (other than the Company or a Restricted Subsidiary) owning a
beneficial interest in the assets subject to the Asset Sale and

 

(e)                                  appropriate amounts
to be provided by the Company or any Restricted Subsidiary thereof, as the case
may be, as a reserve, in accordance with GAAP, against any liabilities
associated with such Asset Sale and retained by the Company or any Restricted
Subsidiary thereof, as the case may be, after such Asset Sale, including,
without limitation, pension and other post-employment benefit liabilities,
liabilities related to environmental matters and liabilities under any indemnification
obligations or post-closing purchase price adjustments associated with such
Asset Sale, all as reflected in an Officers’ Certificate delivered to the
Trustee, and

 

(ii)                                  all non-cash
consideration received by the Company or any of its Restricted Subsidiaries
from such Asset Sale upon the liquidation or conversion of such consideration
into cash, without duplication, net of all items enumerated in subclauses (a)
through (e) of clause (i) hereof.

 

13

 

“Non-Recourse Indebtedness” with
respect to any Person means Indebtedness of such Person for which (i) the sole
legal recourse for collection of principal and interest on such Indebtedness is
against the specific property identified in the instruments evidencing or
securing such Indebtedness and such property was acquired with the proceeds of
such Indebtedness or such Indebtedness was Incurred within 90 days after the
acquisition of such property and (ii) no other assets of such Person may be
realized upon in collection of principal or interest on such Indebtedness.

 

“Officer” means the chairman, the
chief executive officer, the president, the chief financial officer, the chief
operating officer, the chief accounting officer, the treasurer, or any
assistant treasurer, the controller, the secretary, any assistant secretary or
any executive vice president or vice president of a Person.

 

“Officers’ Certificate” means a
certificate signed by two Officers, one of whom must be the Person’s chief
executive officer, chief operating officer, chief financial officer or chief
accounting officer.

 

“Paying Agent” means any office or
agency where Notes and the Subsidiary Guarantees may be presented for payment.

 

“Permitted Investments” of any Person
means Investments of such Person in (i) direct obligations of the United States
or any agency thereof or obligations guaranteed by the United States or any
agency thereof, in each case maturing within 180 days of the date of
acquisition thereof, (ii) certificates of deposit maturing within 180 days of
the date of acquisition thereof issued by a bank, trust company or savings and loan
association which is organized under the laws of the United States or any state
thereof having capital, surplus and undivided profits aggregating in excess of
$250 million and a Keefe Bank Watch Rating of C or better, (iii) certificates
of deposit maturing within 180 days of the date of acquisition thereof issued
by a bank, trust company or savings and loan association organized under the
laws of the United States or any state thereof other than banks, trust
companies or savings and loan associations satisfying the criteria in (ii)
above, provided that the aggregate amount of all certificates of deposit
issued to the Company at any one time by such bank, trust company or savings
and loan association will not exceed $100,000, (iv) commercial paper given the
highest rating by two established national credit rating agencies and maturing
not more than 180 days from the date of the acquisition thereof, (v) repurchase
agreements or money-market accounts which are fully secured by direct obligations
of the United States or any agency thereof and (vi) in the case of the Company
and its Subsidiaries, any receivables or loans taken by the Company or a Subsidiary
in connection with the sale of any asset otherwise permitted hereunder.

 

“Permitted Liens” means

 

(i)                                     Liens for taxes,
assessments or governmental charges or claims that either (a) are not yet
delinquent or (b) are being contested in good faith by appropriate proceedings
and as to which appropriate reserves have been established or other provisions
have been made in accordance with GAAP,

 

14

 

(ii)                                  statutory Liens of
landlords and carriers’, warehousemen’s, mechanics’, suppliers’, materialmen’s,
repairmen’s or other Liens imposed by law and arising in the ordinary course of
business and with respect to amounts that, to the extent applicable, either (a)
are not yet delinquent or (b) are being contested in good faith by appropriate
proceedings and as to which appropriate reserves have been established or other
provisions have been made in accordance with GAAP,

 

(iii)                               Liens (other than any
Lien imposed by the Employee Retirement Income Security Act of 1974, as
amended) incurred or deposits made in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types
of social security,

 

(iv)                              Liens incurred or
deposits made to secure the performance of tenders, bids, leases, statutory
obligations, surety and appeal bonds, progress payments, government contracts
and other obligations of like nature (exclusive of obligations for the payment
of borrowed money), in each case incurred in the ordinary course of business of
the Company and its Subsidiaries,

 

(v)                                 attachment or judgment
Liens not giving rise to a Default or an Event of Default and which are being
contested in good faith by appropriate proceedings,

 

(vi)                              easements, rights-of-way,
restrictions and other similar charges or encumbrances not materially
interfering with the ordinary course of business of the Company and its Subsidiaries,

 

(vii)                           zoning restrictions,
licenses, restrictions on the use of real property or minor irregularities in
title thereto which do not materially impair the use of such real property in
the ordinary course of business of the Company and its Subsidiaries or the
value of such real property for the purpose of such business,

 

(viii)                        leases or subleases granted to
others not materially interfering with the ordinary course of business of the
Company and its Subsidiaries,

 

(ix)                                purchase money
mortgages (including, without limitation, Capitalized Lease Obligations and
purchase money security interests),

 

(x)                                   Liens securing
Refinancing Indebtedness; provided that such Liens only extend to assets
which are similar to the type of assets securing the Indebtedness being
refinanced and such refinanced Indebtedness was previously secured by such
similar assets,

 

(xi)                                Liens securing
Indebtedness of the Company and its Restricted Subsidiaries permitted to be
Incurred hereunder; provided that the aggregate amount of Indebtedness
secured by Liens (other than Non-Recourse Indebtedness secured by Liens) will
not exceed 40% of Consolidated Tangible Assets,

 

(xii)                             any interest in or title
of a lessor to property subject to any Capitalized Lease Obligations incurred
in compliance with the provisions hereof,

 

15

 

(xiii)                          Liens existing on the date
hereof, including, without limitation, Liens securing Existing Indebtedness,

 

(xiv)                         any option, contract or other
agreement to sell an asset; provided such sale is not otherwise
prohibited by the terms hereof,

 

(xv)                            Liens securing Non-Recourse
Indebtedness of the Company or a Restricted Subsidiary thereof; provided
that such Liens apply only to the property financed out of the net proceeds of
such Non-Recourse Indebtedness within 90 days of the Incurrence of such
Non-Recourse Indebtedness,

 

(xvi)                         Liens on property or assets of
any Restricted Subsidiary securing Indebtedness of such Restricted Subsidiary
owing to the Company or one or more Restricted Subsidiaries,

 

(xvii)                      Liens securing Indebtedness of an
Unrestricted Subsidiary,

 

(xviii)                   any right of a lender or lenders to
which the Company or a Restricted Subsidiary may be indebted to offset against,
or appropriate and apply to the payment of, such Indebtedness any and all
balances, credits, deposits, accounts or monies of the Company or a Restricted
Subsidiary with or held by such lender or lenders,

 

(xix)                           any pledge or deposit of
cash or property in conjunction with obtaining surety and performance bonds and
letters of credit required to engage in constructing on-site and off-site
improvements required by municipalities or other governmental authorities in
the ordinary course of business of the Company or any Restricted Subsidiary,

 

(xx)                              Liens in favor of customs
and revenue authorities arising as a matter of law to secure payment of customs
duties in connection with the importation of goods,

 

(xxi)                           Liens encumbering customary
initial deposits and margin deposits, and other Liens that are customary in the
industry and incurred in the ordinary course of business securing Indebtedness
under Hedging Obligations and forward contracts, options, futures contracts,
futures options or similar agreements or arrangements designed to protect the
Company or any of its Subsidiaries from fluctuations in the price of
commodities,

 

(xxii)                        Liens arising out of
conditional sale, title retention, consignment or similar arrangements for the
sale of goods entered into by the Company or any of its Subsidiaries in the
ordinary course of business,

 

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

 

16

 

(xxiv)                    Liens replacing any of the Liens
described in clauses (xiii) and (xxiii) above; provided that
(A) the principal amount of the Indebtedness secured by such Liens shall
not be increased (except to the extent of reasonable premiums or other payments
required to be paid in connection with the repayment of the previously secured
Indebtedness or Incurrence of related Refinancing Indebtedness and expenses
Incurred in connection therewith), (B) the principal amount of new Indebtedness
secured by such Liens, determined as of the date of Incurrence, has a Weighted
Average Life of Maturity at least equal to the remaining Weighted Average Life
to Maturity of the previously secured Indebtedness, (C) the maturity of
the new Indebtedness secured by such Liens is not earlier than that of the
previously secured Indebtedness Incurred or repaid, and (D) the new Liens
shall be limited to the property or part thereof which secured the Lien so
replaced or property substituted therefor as a result of the destruction,
condemnation or damage of such property.

 

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

 

“Preferred Stock” of any Person means
all Capital Stock of such Person which has a preference in liquidation or with
respect to the payment of dividends.

 

“Rating Agency” means a statistical
rating agency or agencies, as the case may be, nationally recognized in the
United States and selected by the Company (as certified by a resolution of the
Board of Directors of the Company) which shall be substituted for S&P or
Moody’s, or both, as the case may be.

 

“Refinancing Indebtedness” means
Indebtedness that refunds, refinances or extends any Existing Indebtedness or
other Indebtedness permitted to be incurred by the Company or its Restricted
Subsidiaries pursuant to the terms hereof, but only to the extent that

 

(i)                                     the Refinancing
Indebtedness is subordinated to the Notes or the Subsidiary Guarantees, as the
case may be, to the same extent as the Indebtedness being refunded, refinanced
or extended, if at all,

 

(ii)                                  the Refinancing
Indebtedness is scheduled to mature either (a) no earlier than the Indebtedness
being refunded, refinanced or extended, or (b) after the maturity date of the
Notes,

 

(iii)                               the portion, if any, of
the Refinancing Indebtedness that is scheduled to mature on or prior to the
maturity date of the Notes has a Weighted Average Life to Maturity at the time
such Refinancing Indebtedness is Incurred that is equal to or greater than the
Weighted Average Life to Maturity of the portion of the Indebtedness being
refunded, refinanced or extended that is scheduled to mature on or prior to the
maturity date of the Notes,

 

(iv)                              such Refinancing
Indebtedness is in an aggregate amount that is equal to or less than the
aggregate amount then outstanding (including accrued interest) under the

 

17

 

Indebtedness being refunded, refinanced or extended plus an amount
necessary to pay any reasonable fees and expenses, including premiums and
defeasance costs, related to such refinancing,

 

(v)                                 such Refinancing
Indebtedness is Incurred by the same Person that initially Incurred the
Indebtedness being refunded, refinanced or extended, except that the Company
may Incur Refinancing Indebtedness to refund, refinance or extend Indebtedness
of any Restricted Subsidiary, and

 

(vi)                              such Refinancing
Indebtedness is Incurred within 180 days after the Indebtedness being refunded,
refinanced or extended is so refunded, refinanced or extended.

 

“Registrar” means an office or agency
where Notes may be presented for registration of transfer or for exchange.

 

“Registration Rights Agreement” means
that certain registration rights agreement by and among the Company, the Subsidiary
Guarantors and the Initial Purchasers dated as of June 8, 2005.

 

“Restricted Investment” with respect
to any Person means any Investment (other than any Permitted Investment) by
such Person in any (i) of its Affiliates, (ii) executive officer or director or
any Affiliate of such Person, or (iii) any other Person other than a Restricted
Subsidiary.  Notwithstanding the above, a
Subsidiary Guarantee shall not be deemed a Restricted Investment.

 

“Restricted Payment” with respect to
any Person means

 

(i)                                     the declaration of
any dividend or the making of any other payment or distribution of cash,
securities or other property or assets in respect of such Person’s Capital
Stock (except that a dividend payable solely in Capital Stock (other than Disqualified
Stock) of such Person will not constitute a Restricted Payment),

 

(ii)                                  any payment on
account of the purchase, redemption, retirement or other acquisition for value
of such Person’s Capital Stock or any other payment or distribution made in
respect thereof (other than payments or distributions excluded from the definition
of Restricted Payment in clause (i) above), either directly or indirectly,

 

(iii)                               any Restricted
Investment, and

 

(iv)                              any principal payment,
redemption, repurchase, defeasance or other acquisition or retirement of any Indebtedness
of any Unrestricted Subsidiary or of Indebtedness of the Company which is
subordinated in right of payment to the Notes or of Indebtedness of a
Restricted Subsidiary which is subordinated in right of payment to its
Subsidiary Guarantee;

 

provided,
however, that with respect to the Company and its Subsidiaries,
Restricted Payments will not include (a) any payment described in clause (i),
(ii) or (iii) above made to the Company

 

18

 

or any of its
Restricted Subsidiaries which are Wholly Owned Subsidiaries by any of the
Company’s Subsidiaries, or (b) any purchase, redemption, retirement or other
acquisition for value of Indebtedness or Capital Stock of such Person or its
Subsidiaries if the consideration therefor consists solely of Capital Stock
(other than Disqualified Stock) of such Person.

 

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

 

“S&P” means Standard and Poor’s
Ratings Service, a division of McGraw Hill, Inc., a New York corporation, or
any successor to its debt rating business.

 

“Security Register” is a register of the
Notes and of their transfer and exchange kept by the Registrar.

 

“Subsidiary” of any Person means any
(i) corporation of which at least a majority of the aggregate voting power of
all classes of the Common Equity is directly or indirectly beneficially owned
by such Person, and (ii) any entity other than a corporation of which such
Person, directly or indirectly, beneficially owns at least a majority of the
Common Equity.

 

“Subsidiary Guarantee” means the
guarantee of the Notes by each Subsidiary Guarantor hereunder.

 

“Subsidiary Guarantors” means each of (i)
Beazer Homes Corp., a Tennessee corporation, Beazer/Squires Realty, Inc., a
North Carolina corporation, Beazer Homes Sales Inc., a Delaware corporation,
Beazer Realty Corp., a Georgia corporation, Beazer Mortgage Corporation, a
Delaware corporation, Beazer Homes Holdings Corp., a Delaware corporation,
Beazer Homes Texas Holdings, Inc., a Delaware corporation, Beazer Homes Texas,
L.P., a Delaware limited partnership, April Corporation, a Colorado corporation,
Beazer SPE, LLC, a Georgia limited liability company, Beazer Homes Investments,
LLC, a Delaware limited liability company, Beazer Realty, Inc., a New Jersey
corporation, Homebuilders Title Services of Virginia, Inc., a Virginia
corporation, Homebuilders Title Services, Inc., a Delaware corporation, Texas
Lone Star Title, L.P., a Texas limited partnership, Beazer Allied Companies
Holdings, Inc., a Delaware corporation, Paragon Title, LLC, an Indiana limited
liability company, Trinity Homes LLC, an Indiana limited liability company,
Beazer Homes Indiana, LLP, an Indiana limited liability partnership, Beazer
Homes Indiana Holdings Corp., a Delaware corporation, Beazer Realty Services,
LLC, a Delaware limited liability company, Beazer Realty Los Angeles, Inc., a
Delaware corporation, Beazer Realty Sacramento, Inc., a Delaware corporation,
Beazer Title Agency of Arizona, LLC, an Arizona limited liability company,
Beazer Title Agency of Nevada, LLC, a Nevada limited liability company, BH
Building Products, LP, a Delaware limited partnership, BH Procurement Services,
LLC, a Delaware limited partnership, Beazer General Services, Inc., a Delaware
corporation, Beazer Commercial Holdings, LLC, a Delaware limited liability
company and Beazer Clarksburg, LLC, a Missouri limited liability company and
(ii) each of the Company’s Subsidiaries that becomes a guarantor of the Notes
pursuant to the provisions of this Supplemental Indenture.

 

“Trust Officer” means any vice
president, trust officer or other authorized person of the Trustee assigned by
the Trustee to administer its corporate trust matters.

 

19

 

“Trustee” means the party named as
such until a successor replaces such party in accordance with the applicable
provisions of the Indenture and thereafter means the successor trustee serving
under the Indenture.

 

“Unrestricted Subsidiary” means United
Home Insurance Corporation, a Vermont corporation, and Security Title Insurance
Company, Inc., a Vermont corporation, and each of the Subsidiaries of the
Company (including any newly formed or acquired Subsidiary) so designated by a
resolution adopted by the Board of Directors of the Company as provided below
and provided that (a) neither the Company nor any of its other Subsidiaries
(other than Unrestricted Subsidiaries) (1) provides any direct or indirect
credit support for any Indebtedness of such Subsidiary (including any
undertaking, agreement or instrument evidencing such Indebtedness) or (2) is
directly or indirectly liable for any Indebtedness of such Subsidiary, (b) the
creditors with respect to Indebtedness for borrowed money of such Subsidiary
have agreed in writing that they have no recourse, direct or indirect, to the
Company or any other Subsidiary of the Company (other than Unrestricted
Subsidiaries), including, without limitation, recourse with respect to the
payment of principal or interest on any Indebtedness of such Subsidiary and (c)
no default with respect to any Indebtedness of such Subsidiary (including any right
which the holders thereof may have to take enforcement action against such
Subsidiary) would permit (upon notice, lapse of time or both) any holder of any
other Indebtedness of the Company and of its other Subsidiaries (other than
other Unrestricted Subsidiaries), to declare a default on such other
Indebtedness or cause the payment thereof to be accelerated or payable prior to
its stated maturity.  The Board of Directors
of the Company may designate an Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that (i) any such redesignation will be deemed to
be an Incurrence by the Company and its Restricted Subsidiaries of the
Indebtedness (if any) of such redesignated Subsidiary in accordance with
Section 3.03 hereof as of the date of such redesignation, (ii) immediately
after giving effect to such redesignation and the Incurrence of any such
additional Indebtedness, the Company and its Restricted Subsidiaries could
incur $1.00 of additional Indebtedness under the Consolidated Fixed Charge
Coverage Ratio contained in Section 3.03 hereof and (iii) the Liens of such
Unrestricted Subsidiary could then be incurred in accordance with
Section 3.07 hereof as of the date of such redesignation.  Subject to the foregoing, the Board of
Directors of the Company also may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary; provided that (i) all previous Investments by
the Company and its Restricted Subsidiaries in such Restricted Subsidiary (net
of any returns previously paid on such Investments) will be deemed to be
Restricted Payments at the time of such designation and will reduce the amount
available for Restricted Payments under Section 3.02 hereof, (ii) immediately
after giving effect to such designation and reduction of amounts available for
Restricted Payments under Section 3.02 hereof, the Company and its Restricted
Subsidiaries could incur $1.00 of additional Indebtedness under the
Consolidated Fixed Charge Coverage Ratio contained in Section 3.03 hereof and
(iii) no Default or Event of Default shall have occurred or be continuing.  Any such designation or redesignation by the
Board of Directors of the Company will be evidenced to the Trustee by the
filing with the Trustee of a certified copy of the resolution of the Board of
Directors of the Company giving effect to such designation or redesignation and
an Officers’ Certificate certifying that such designation or redesignation
complied with the foregoing conditions and setting forth the underlying calculations.

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness or portion thereof, at any date, the number
of years obtained by dividing (i) the sum of the products

 

20

 

obtained by multiplying (a) the amount of
each then remaining installment, sinking fund, serial maturity or other
required payment of principal, including, without limitation, payment at final
maturity, in respect thereof, by (b) the number of years (calculated to the
nearest one-twelfth) that will elapse between such date and the making of such
payment by (ii) the sum of all such payments described in clause (a) above.

 

“Wholly Owned Subsidiary” of any
Person means (i) a Subsidiary, of which 100% of the Common Equity (except for
directors’ qualifying shares or certain minority interests owned by other
Persons solely due to local law requirements that there be more than one stockholder,
but which interest is not in excess of what is required for such purpose) is
owned directly by such Person or through one or more other Wholly Owned
Subsidiaries of such Person, or (ii) any entity other than a corporation in
which such Person, directly or indirectly, owns all of the Common Equity of
such entity.

 

“Working Capital Facilities” means,
collectively, the Bank Credit Facility and one or more other facilities among
the Company, any Subsidiary Guarantor and one or more lenders pursuant to which
the Company or any Subsidiary Guarantor may Incur Indebtedness for working
capital purposes or to finance the acquisition, holding or development of
property by the Company and the Restricted Subsidiaries (including the
financing of any related interest reserve), as any such facility may be
amended, restated, supplemented or otherwise modified from time to time, and
includes any agreement extending the maturity of, or restructuring (including,
without limitation, the inclusion of additional borrowers thereunder that are
Unrestricted Subsidiaries), all or any portion of the Indebtedness under such
facility or any successor facilities and includes any facility with one or more
lenders refinancing or replacing all or any portion of the Indebtedness under
such facility or any successor facility.

 

ARTICLE THREE

 

Covenants

 

Section 3.01.                                                Disposition
of Proceeds of Asset Sales.

 

(a)                                  The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, make any Asset Sale unless

 

(i)                                     the
Company or the Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the Fair Market
Value for the shares or assets sold or otherwise disposed of; provided
that the aggregate Fair Market Value of the consideration received from any
Asset Sale that is not in the form of cash or cash equivalents (in U.S. dollars
or freely convertible into U.S. dollars) will not, when aggregated with the
Fair Market Value of all other non-cash consideration received by the Company
and its Restricted Subsidiaries from all previous Asset Sales since the date of
the Indenture that has not been converted into cash or cash equivalents (in
U.S. dollars or freely convertible into U.S. dollars), exceed five percent of
the Consolidated Tangible Assets of the Company at the time of the Asset Sale
under consideration, and

 

21

 

(ii)                                  the
Company will apply or will cause one or more of its Restricted Subsidiaries to
apply an amount equal to the aggregate Net Proceeds received by the Company or
any Restricted Subsidiary from all Asset Sales occurring subsequent to the date
of the Indenture as follows:  (A) to
repay any outstanding Indebtedness of the Company that is not subordinated to
the Notes or other Indebtedness of the Company, or to the payment of any
Indebtedness of any Restricted Subsidiary that is not subordinated to the
Subsidiary Guarantee of such Restricted Subsidiary, in each case within one
year after such Asset Sale; or (B) to acquire properties and assets that will
be used in the businesses of the Company and its Restricted Subsidiaries
existing on the date hereof within one year after such Asset Sale,

 

provided,
however, that (x) in the case of applications contemplated by clause
(ii)(A) the payment of such Indebtedness will result in a permanent reduction
in committed amounts, if any, under the Indebtedness repaid at least equal to
the amount of the payment made, (y) in the case of applications contemplated by
clause (ii)(B), the Board of Directors has, within such one year period,
adopted in good faith a resolution committing such Net Proceeds to such use and
(z) none of such Net Proceeds shall be used to make any Restricted Payment.

 

The amount of such Net Proceeds neither used
to repay the Indebtedness described above nor used or invested as set forth in
the preceding sentence constitutes “Excess Proceeds.”  Notwithstanding the above, any Asset Sale
that is subject to Section 3.10 hereof shall not be subject to this
Section 3.01.

 

(b)                                 Notwithstanding
this Section 3.01 hereof, to the extent the Company or any of its Restricted
Subsidiaries receives securities or other non-cash property or assets as proceeds
of an Asset Sale, the Company will not be required to make any application of
such non-cash proceeds required by clause (ii) of this Section 3.01 until it
receives cash or cash equivalent proceeds from a sale, repayment, exchange,
redemption or retirement of or extraordinary dividend or return of capital on
such non-cash property.  Any amounts
deferred pursuant to the preceding sentence shall be applied in accordance with
clause (ii) of this Section 3.01 when cash or cash equivalent proceeds are
thereafter received from a sale, repayment, exchange, redemption or retirement
of or extraordinary dividend or return of capital on such non-cash property.

 

(c)                                  When
the aggregate amount of Excess Proceeds equals $10,000,000 or more, the Company
shall so notify the Trustee in writing by delivery of an Officers’ Certificate
and will offer to purchase from all Holders (an “Excess Proceeds Offer”),
and shall purchase from Holders accepting such Excess Proceeds Offer on the
date fixed for the closing of such Excess Proceeds Offer (the “Asset Sale
Offer Date”), the maximum principal amount (expressed as a multiple of
$1,000) of Notes plus accrued and unpaid interest thereon, if any, to the Asset
Sale Offer Date that may be purchased and paid, as the case may be, out of the
Excess Proceeds, at an offer price (the “Asset Sale Offer Price”) in
cash in an amount equal to 100% of the principal amount thereof plus accrued
and unpaid interest, if any, to the Asset Sale Offer Date, in accordance with
the procedures set forth in this Section 3.01. 
To the extent that the aggregate amount of Notes tendered pursuant to an
Excess Proceeds Offer is less than the Excess Proceeds relating thereto, then
the Company may use such Excess Proceeds, or a portion thereof, for general corporate
purposes in the business of the Company and its Restricted Subsidiaries
existing on the

 

22

 

date hereof.  Upon completion of
an Excess Proceeds Offer, the amount of Excess Proceeds shall be reset at zero.

 

(d)                                 Within
30 days after the date on which the amount of Excess Proceeds equals
$10,000,000 or more, the Company (with notice to the Trustee) or the Trustee at
the Company’s request (and at the expense of the Company) will send or cause to
be sent by first-class mail to all Persons who were Holders on the date such
Excess Proceeds equaled $10,000,000, at their respective addresses appearing in
the Security Register, a notice of such occurrence and of such Holders’ rights
arising as a result thereof.  Such notice
will contain all instructions and materials necessary to enable Holders to
tender their Notes to the Company.  Such
notice, which will govern the terms of the Excess Proceeds Offer, will state:

 

(i)                                     that
the Excess Proceeds Offer is being made pursuant to this Section 3.01 and the
length of time such Excess Proceeds Offer will remain open;

 

(ii)                                  that
the Holder has the right to require the Company to repurchase such Holder’s
Notes at the Asset Sale Offer Price;

 

(iii)                               that
any Note not tendered will continue to accrue interest;

 

(iv)                              that
any Note accepted for payment pursuant to the Excess Proceeds Offer will cease
to accrue interest on the Asset Sale Offer Date;

 

(v)                                 that
the Asset Sale Offer Date will be no earlier than 45 days nor later than 60
days from the date such notice is mailed;

 

(vi)                              that
Holders electing to have a Note purchased pursuant to any Excess Proceeds Offer
will be required to surrender the Note to the Company, a depositary, if
appointed by the Company, or a Paying Agent at the address specified in the
notice prior to termination of the Excess Proceeds Offer;

 

(vii)                           that
Holders will be entitled to withdraw their election if the Company, depositary
or Paying Agent, as the case may be, receives, not later than the expiration of
the Excess Proceeds Offer, or such longer period as may be required by law, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Note the Holder delivered for purchase and
a statement that such Holder is withdrawing its election to have the Note purchased;

 

(viii)                        that
Holders whose Notes are purchased only in part will be issued Notes equal in
principal amount to the unpurchased portion of the Notes surrendered; and

 

(ix)                                information
concerning the details of the Excess Proceeds Offer and the business of the
Company which the Company in good faith believes will enable such Holders to
make an informed decision (which at a minimum will include (A) the most
recently filed Annual Report on Form 10-K (including audited consolidated
financial statements of the Company), the most recent subsequently filed
Quarterly Report on Form 10-Q and any Current Report on Form 8-K of the Company
filed subsequent to such Quarterly Report, other than Current Reports
describing Asset Sales otherwise described

 

23

 

in the
offering materials relating to the Excess Proceeds Offer (or corresponding
successor reports) (or in the event the Company is not required to prepare any
of the foregoing Forms, the comparable information required pursuant to
Section 3.11 hereof); provided that the Company may at its option
incorporate by reference any such filed reports in the notice, (B) a description
of material developments in the Company’s business subsequent to the date of
the latest of such reports and (C) if material, appropriate pro forma financial
information).

 

(e)                                  In
the event the aggregate principal amount of Notes surrendered by Holders
together with accrued interest thereon exceeds the amount of Excess Proceeds,
the Company will select the Notes to be purchased on a pro rata basis from all
Notes so surrendered, with such adjustments as may be deemed appropriate by the
Company so that only Notes in denominations of $1,000, or integral multiples
thereof, will be purchased.  To the
extent that the Excess Proceeds remaining are less than $1,000, the Company may
use such Excess Proceeds for general corporate purposes.  Holders whose Notes are purchased only in
part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered.

 

(f)                                    Not
later than one Business Day after the Asset Sale Offer Date in connection with
which the Excess Proceeds Offer is being made, the Company will (i) accept for
payment Notes or portions thereof tendered pursuant to the Excess Proceeds
Offer (on a pro rata basis if required), (ii) deposit with the Paying Agent
money sufficient, in immediately available funds, to pay the purchase price of
all Notes or portions thereof so accepted and (iii) deliver to the Paying
Agent an Officers’ Certificate identifying the Notes or portions thereof
accepted for payment by the Company.  The
Paying Agent will promptly mail or deliver to Holders so accepted payment in an
amount equal to the Asset Sale Offer Price of the Notes purchased from each
such Holder, and the Company will execute and upon receipt of an Officers’
Certificate of the Company the Trustee will promptly authenticate and mail or deliver
to such Holder a new Note equal in principal amount to any unpurchased portion
of the Note surrendered.  Any Notes not
so accepted will be promptly mailed or delivered by the Paying Agent at the
Company’s expense to the Holder thereof. 
The Company will publicly announce the results of the Excess Proceeds
Offer promptly after the Asset Sale Offer Date. 
For purposes of this Section 3.01(f), the Company will choose a Paying
Agent which will not be the Company or a Subsidiary thereof.

 

(g)                                 Any
Excess Proceeds Offer will be conducted by the Company in compliance with
applicable law, including, without limitation, Section 14(e) of the Exchange
Act and Rule 14e -1 thereunder, if applicable.

 

(h)                                 Whenever
Excess Proceeds are received by the Company, and prior to the allocation of
such Excess Proceeds pursuant to this Section 3.01, such Excess Proceeds will
be set aside by the Company in a separate account to be held in trust for the
benefit of the Holders; provided, however, that in the event the
Company will be unable to set aside such Excess Proceeds in a separate account
because of provisions of applicable law or of the Working Capital Facilities,
the Company will not be required to set aside such Excess Proceeds.

 

(i)                                     Notwithstanding
the foregoing, an Excess Proceeds Offer may be made by one or more Restricted
Subsidiaries in lieu of the Company.

 

24

 

Section 3.02.                                                Limitations
on Restricted Payments.

 

(a)                                  The
Company shall not, and shall not cause or permit any of its Restricted
Subsidiaries to, make any Restricted Payment, directly or indirectly, after the
date hereof if at the time of such Restricted Payment:

 

(i)                                     the
amount of such proposed Restricted Payment (the amount of such Restricted Payment,
if other than in cash, will be determined in good faith by a majority of the
disinterested members of the Board of Directors of the Company), when added to
the aggregate amount of all Restricted Payments, or payments that would have
been Restricted Payments if the Supplemental Indenture had been in effect at
the time of such payments, declared or made after April 17, 2002, exceeds the
sum of:

 

(1)                                  $100
million, plus

 

(2)                                  50%
of the Company’s Consolidated Net Income accrued during the period (taken as a
single period) commencing April 1, 2002 and ending on the last day of the
fiscal quarter immediately preceding the fiscal quarter in which the Restricted
Payment is to occur (or, if such aggregate Consolidated Net Income is a
deficit, minus 100% of such aggregate deficit), plus

 

(3)                                  the
Net Proceeds derived from the issuance and sale of Capital Stock of the Company
and its Restricted Subsidiaries that is not Disqualified Stock (other than a
sale to a Subsidiary of the Company) after April 17, 2002, plus

 

(4)                                  100%
of the principal amount of, or, if issued at a discount, the accreted value of,
any Indebtedness of the Company or a Restricted Subsidiary which is issued
(other than to a Subsidiary of the Company) after April 17, 2002 that is
converted into or exchanged for Capital Stock of the Company that is not Disqualified
Stock, plus

 

(5)                                  100%
of the aggregate amounts received by the Company or any Restricted Subsidiary
from the sale, disposition or liquidation (including by way of dividends) of
any Investment (other than to any Subsidiary of the Company and other than to
the extent sold, disposed of or liquidated with recourse to the Company or any
of its Subsidiaries or to any of their respective properties or assets) but
only to the extent (x) not included in clause (2) above and (y) that the making
of such Investment constituted a permitted Restricted Investment (assuming for
such purpose that the Supplemental Indenture had been in effect since
April 17, 2002), plus

 

(6)                                  100%
of the principal amount of, or if issued at a discount, the accreted value of,
any Indebtedness or other obligation that is the subject of a guarantee by the
Company which is released (other than due to a payment on such guarantee) after
April 17, 2002, but only to the extent that such guarantee constituted a
permitted Restricted Payment (assuming for such purpose that the Supplemental
Indenture had been in effect since April 17, 2002); or

 

25

 

(ii)                                  the
Company would be unable to incur $1.00 of additional Indebtedness under the
Consolidated Fixed Charge Coverage Ratio contained in Section 3.03 hereof; or

 

(iii)                               a
Default or Event of Default has occurred and is continuing or occurs as a consequence
thereof.

 

(b)                                 Notwithstanding
the foregoing, the provisions of this Section 3.02 shall not prevent:

 

(i)                                     the
payment of any dividend within 60 days after the date of declaration thereof if
the payment thereof would have complied with the limitations of the Indenture
on the date of declaration, provided that (x) such dividend shall be
deemed to have been paid as of its date of declaration for the purposes of this
Section 3.02 and (y) at the time of payment of such dividend no other Default
or Event of Default shall have occurred and be continuing or would result
therefrom;

 

(ii)                                  the
retirement of shares of the Company’s Capital Stock or the Company’s or a
Restricted Subsidiary of the Company’s Indebtedness for, or out of the net
proceeds of a substantially concurrent sale (other than a sale to a Subsidiary
of the Company) of, other shares of its Capital Stock (other than Disqualified
Stock), provided that the proceeds of any such sale shall be excluded in
any computation made under clause (3) above;

 

(iii)                               the
redemption, repurchase, defeasance or retirement for value of Indebtedness,
including premium, if any, with the proceeds of Refinancing Indebtedness;

 

(iv)                              payments
or distributions pursuant to or in connection with a merger, consolidation or
transfer of assets that complies with the provisions hereof applicable to
mergers, consolidations and transfers of all or substantially all of the property
and assets of the Company or any Guarantor; or

 

(v)                                 any
purchase, redemption, retirement or other acquisition for value of Capital
Stock of the Company or any Subsidiary held by officers or employees or former
officers or employees of the Company or any Subsidiary (or their estates or
beneficiaries under their estates) not to exceed $500,000 in any calendar year
and $5 million in the aggregate since April 17, 2002.

 

Section 3.03.                                                Limitations
on Additional Indebtedness.

 

(a)                                  The
Company shall not, and shall not cause or permit any of its Restricted
Subsidiaries, directly or indirectly, to, Incur any Indebtedness including
Acquisition Indebtedness; provided that the Company and the Subsidiary
Guarantors may Incur Indebtedness, including Acquisition Indebtedness, if,
after giving effect thereto and the application of the proceeds therefrom,
either (i) the Company’s Consolidated Fixed Charge  Coverage Ratio on the date thereof would be
at least 2.0 to 1.0 or (ii) the ratio of Indebtedness of the Company and
the Restricted Subsidiaries to Consolidated Tangible Net Worth is less than
2.25 to 1.

 

26

 

(b)                                 Notwithstanding
the foregoing, the provisions hereof shall not prevent:

 

(i)                                     the
Company or any Subsidiary Guarantor from Incurring (A) Refinancing
Indebtedness or (B) Non-Recourse Indebtedness,

 

(ii)                                  the
Company from Incurring Indebtedness evidenced by the Notes issued on the Issue
Date or the Exchange Notes,

 

(iii)                               the
Company or any Subsidiary Guarantor from Incurring Indebtedness under Working
Capital Facilities not to exceed the greater of $250 million or 15% of Consolidated
Tangible Assets,

 

(iv)                              any
Subsidiary Guarantee of Indebtedness of the Company under the Notes,

 

(v)                                 the
Company and its Restricted Subsidiaries from Incurring Indebtedness under any
deposits made to secure performance of tenders, bids, leases, statutory
obligations, surety and appeal bonds, progress statements, government contracts
and other obligations of like nature (exclusive of the obligation for the
payment of borrowed money),

 

(vi)                              any
Subsidiary Guarantor from guaranteeing Indebtedness of the Company or any other
Subsidiary Guarantor, or the Company from guaranteeing Indebtedness of any
Subsidiary Guarantor, in each case permitted to be Incurred under the Indenture
(other than Non-Recourse Indebtedness),

 

(vii)                           (a) any
Restricted Subsidiary from Incurring Indebtedness owing to the Company or any
Subsidiary Guarantor that is both a Wholly Owned Subsidiary and a Restricted
Subsidiary; provided that (I) such Indebtedness is subordinated to
any Subsidiary Guarantee of such Restricted Subsidiary, if any, and
(II) such Indebtedness shall only be permitted pursuant to this
clause (vii)(a) for so long as the Person to whom such Indebtedness is
owing is the Company or a Subsidiary Guarantor that is both a Wholly Owned
Subsidiary and a Restricted Subsidiary, and (b) the Company from Incurring
Indebtedness owing to any Subsidiary Guarantor that is both a Wholly Owned
Subsidiary and a Restricted Subsidiary; provided that (I) such
Indebtedness is subordinated to the Company’s obligations under the Notes and
the provisions hereof, and (II) such Indebtedness shall only be permitted
pursuant to this clause (vii)(b) for so long as the Person to whom such
Indebtedness is owing is a Subsidiary Guarantor that is both a Wholly Owned Subsidiary
and a Restricted Subsidiary,

 

(viii)                        the
Company and any Subsidiary Guarantor from Incurring Indebtedness under
Capitalized Lease Obligations or purchase money obligations, in each case
Incurred for the purpose of acquiring or financing all or any part of the purchase
price or cost of construction or improvement of property or equipment used in
the business of the Company or such Subsidiary Guarantor, as the case may be,
in an aggregate amount not to exceed $20 million, and

 

(ix)                                Indebtedness
of the Company or any Restricted Subsidiary in an aggregate principal amount at
any time outstanding not to exceed $20 million.

 

27

 

(c)                                  The
Company shall not, and the Company will not cause or permit any Subsidiary
Guarantor that is a Restricted Subsidiary to, directly or indirectly, in any event
Incur any Indebtedness that purports to be by its terms (or by the terms of any
agreement governing such Indebtedness) subordinated to any other Indebtedness
of the Company or of such Subsidiary Guarantor, as the case may be, unless such
Indebtedness is also by its terms (or by the terms of any agreement governing
such Indebtedness) made expressly subordinated to the Notes or the Subsidiary
Guarantee of such Subsidiary Guarantor, as the case may be, to the same extent
and in the same manner as such Indebtedness is subordinated to such other
Indebtedness of the Company or such Subsidiary Guarantor, as the case may be.

 

(d)                                 For
purposes of determining compliance with this Section 3.03, in the event an item
of Indebtedness meets the criteria of more than one of the types of
Indebtedness described in the above clauses of this Section 3.03, the Company,
in its sole discretion, shall classify such item of Indebtedness in any manner
that complies with this covenant and may from time to time reclassify such item
of Indebtedness in any manner in which such item could be Incurred at the time
of such reclassification.

 

Section 3.04.                                                Limitations
and Restrictions on Issuance of Capital Stock of Restricted Subsidiaries.

 

The Company will not permit any Restricted
Subsidiary to issue, or permit to be outstanding at any time, Preferred Stock
or any other Capital Stock constituting Disqualified Stock other than any such
Capital Stock issued to or held by the Company or any Restricted Subsidiary of
the Company which is a Wholly Owned Subsidiary.

 

Section 3.05.                                                Change
of Control.

 

(a)                                  Following
the occurrence of any Change of Control, the Company shall so notify the
Trustee in writing by delivery of an Officers’ Certificate and shall offer to
purchase (a “Change of Control Offer”) from all Holders, and shall
purchase from Holders accepting such Change of Control Offer on the date fixed
for the closing of such Change of Control Offer (the “Change of Control
Payment Date”), the outstanding principal amount of Notes at an offer price
(the “Change of Control Price”) in cash in an amount equal to 101% of
the aggregate principal amount thereof plus accrued and unpaid interest, if
any, to the Change of Control Payment Date in accordance with the procedures
set forth in this Section 3.05.

 

(b)                                 Within
30 days after the date on which a Change of Control occurs, the Company (with
notice to the Trustee) or the Trustee at the Company’s request (and at the expense
of the Company), will send or cause to be sent by first class mail, postage
prepaid, to all Persons who were Holders on the date of the Change of Control
at their respective addresses appearing in the Security Register, a notice of
such occurrence and of such Holders’ rights arising as a result thereof.  Such notice will contain all instructions and
materials necessary to enable Holders to tender their Notes to the
Company.  Such notice, which will govern
the terms of the Change of Control Offer, will state:

 

(i)                                     that
the Change of Control Offer is being made pursuant to Section 3.05(a) hereof
and the length of time the Change of Control Offer will remain open;

 

28

 

 

(ii)                                  that the Holder has
the right to require the Company to repurchase such Holder’s Notes at the
Change of Control Price;

 

(iii)                               that any Note not
tendered will continue to accrue interest;

 

(iv)                              that any Note accepted
for payment pursuant to the Change of Control Offer will cease to accrue
interest on the Change of Control Payment Date;

 

(v)                                 that the Change of
Control Payment Date will be no earlier than 45 days nor later than 60 days
from the date such notice is mailed;

 

(vi)                              that Holders electing to
have a Note purchased pursuant to any Change of Control Offer will be, required
to surrender the Note to the Company, a depositary, if appointed by the
Company, or a Paying Agent at the address specified in the notice prior to
termination of the Change of Control Offer;

 

(vii)                           that Holders will be
entitled to withdraw their election if the Company, depositary or Paying Agent,
as the case may be, receives, not later than the expiration of the Change of
Control Offer, or such longer period as may be required by law, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing its election to have the Note
purchased;

 

(viii)                        that Holders which elect to
have their Notes purchased only in part will be issued new Notes in a principal
amount equal to the unpurchased portion of the Notes surrendered;

 

(ix)                                information concerning
the date and details of the Change of Control and the business of the Company
which the Company in good faith believes will enable such Holders to make an
informed decision (which at a minimum will include (A) the most recently
filed Annual Report on Form 10-K (including audited consolidated financial
statements) of the Company, the most recent subsequently filed Quarterly Report
on Form 10-Q and any Current Report on Form 8-K of the Company filed
subsequent to such Quarterly Report, other than Current Reports describing
Asset Sales otherwise described in the offering materials relating to the
Change of Control Offer (or corresponding successor reports) (or in the event
the Company is not required to prepare any of the foregoing Forms, the
comparable information required pursuant to Section 4.03 hereof); provided
that the Company may at its option incorporate by reference any such filed
reports in the notice, (B) a description of material developments in the
Company’s business subsequent to the date of the latest of such reports, and (C) if
material, appropriate pro forma financial information).

 

(c)                                  In
the event of a Change of Control Offer, the Company will only be required to
accept Notes in denominations of $1,000 or integral multiples thereof.

 

(d)                                 Not
later than one Business Day after the Change of Control Payment Date in
connection with which the Change of Control Offer is being made, the Company
will (i) accept for payment Notes or portions thereof tendered pursuant to
the Change of Control Offer,

 

29

 

(ii) deposit with the
Paying Agent money sufficient, in immediately available funds, to pay the
purchase price of all Notes or portions thereof so accepted and (iii) deliver
to the Paying Agent an Officers’ Certificate identifying the Notes or portions
thereof accepted for payment by the Company. 
The Paying Agent will promptly mail or deliver to Holders of Notes so accepted
payment in an amount equal to the Change of Control Price of the Notes purchased
from each such Holder, and the Company will execute and, upon receipt of an
Officers’ Certificate of the Company, the Trustee will promptly authenticate
and mail or deliver to such Holder a new Note equal in principal amount to any
unpurchased portion of the Note surrendered. 
Any Notes not so accepted will be promptly mailed or delivered by the
Paying Agent at the Company’s expense to the Holder thereof.  The Company shall publicly announce the
results of the Change of Control Offer promptly after the Change of Control Payment
Date.  For purposes of this Section 3.05(d),
the Company will choose a Paying Agent which will not be the Company or a Subsidiary
thereof.

 

(e)                                  Any
Change of Control Offer will be conducted by the Company in compliance with
applicable law, including, without limitation, Section 14(e) of the
Exchange Act and Rule 14e-1 thereunder.

 

Section 3.06.                                                Limitations
on Transactions with Stockholders and Affiliates.

 

The Company
shall not, and shall not permit any of its Subsidiaries to, make any
Investment, loan, advance, guarantee or capital contribution to or for the
benefit of, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or for the benefit of, or purchase or lease any
property or assets from, or enter into or amend any contract, agreement or understanding
with, or for the benefit of, (i) any Affiliate of the Company or any
Affiliate of the Company’s Subsidiaries or (ii) any Person (or any Affiliate
of such person) holding 10% or more of the Common Equity of the Company or any
of its Subsidiaries (each an “Affiliate Transaction”), except on terms
that are no less favorable to the Company or the relevant Subsidiary, as the
case may be, than those that could have been obtained in a comparable
transaction on an arm’s length basis from a person that is not an Affiliate.

 

The Company
shall not, and shall not permit any of its Subsidiaries to, enter into any
Affiliate Transaction involving or having a value of more than $5 million,
unless, in each case, such Affiliate Transaction has been approved by a
majority of the disinterested members of the Company’s Board of Directors.

 

The Company
will not, and will not permit any of its Subsidiaries to, enter into an
Affiliate Transaction involving or having a value of more than $20 million
unless the Company has delivered to the Trustee an opinion of an Independent
Financial Advisor to the effect that the transaction is fair to the Company or
the relevant Subsidiary, as the case may be, from a financial point of view.

 

Notwithstanding
the foregoing, an Affiliate Transaction shall not include (i) any
contract, agreement or understanding with, or for the benefit of, or plan for
the benefit of, employees of the Company or its Subsidiaries (in their capacity
as such) that has been approved by the Company’s Board of Directors, (ii) Capital
Stock issuances to members of the Board of Directors, officers and employees,
of the Company or its Subsidiaries pursuant to plans approved

 

30

 

by the stockholders of the Company, (iii) any Restricted Payment
otherwise permitted under Section 3.02 hereof or (iv) any transaction
between the Company and a Restricted Subsidiary or a Restricted Subsidiary and
another Restricted Subsidiary.

 

Section 3.07.                                                Limitations
on Liens.

 

The Company
shall not, and shall not permit any of its Restricted Subsidiaries to, create,
incur, assume or suffer to exist any Liens, other than Permitted Liens, on any
of its or their assets, property, income or profits therefrom unless
contemporaneously therewith or prior thereto all payments due under the Indenture
and the Notes are secured on an equal and ratable basis with the obligation or
liability so secured until such time as such obligation or liability is no
longer secured by a Lien.  No Liens will
be permitted to be created or suffered to exist on any Indebtedness from the
Company in favor of any Restricted Subsidiary and that such Indebtedness will
not be permitted to be sold, disposed of or otherwise transferred.

 

Section 3.08.                                                Limitations
on Restrictions on Distributions from Restricted Subsidiaries.

 

The Company
shall not, and shall not permit any of its Restricted Subsidiaries to, create,
assume or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary to (i) pay
dividends or make any other distributions on its Capital Stock or any other
interest or participation in, or measured by, its profits, owned by the Company
or any of its other Restricted Subsidiaries, or pay interest on or principal of
any Indebtedness owed to the Company or any of its other Restricted
Subsidiaries, (ii) make loans or advances to the Company or any of its
other Restricted Subsidiaries, or (iii) transfer any of its properties or
assets to the Company or any of its other Restricted Subsidiaries, except for
encumbrances or restrictions existing under or by reason of (a) applicable
law, (b) covenants or restrictions contained in the agreements evidencing
Existing Indebtedness as in effect on the date hereof, (c) any
restrictions or encumbrances arising under Acquisition Indebtedness; provided
that such encumbrance or restriction applies only to the obligor on such
Indebtedness and its Subsidiaries and that such Acquisition Indebtedness was
not incurred by the Company or any of its Subsidiaries or by the Person being
acquired in connection with or in anticipation of such acquisition, (d) any
restrictions or encumbrances arising in connection with Refinancing Indebtedness;
provided that any restrictions and encumbrances of the type described in
this clause (d) that arise under such Refinancing Indebtedness are not
more restrictive than those under the agreement creating or evidencing the
Indebtedness being refunded, refinanced, replaced or extended, (e) any
agreement restricting the sale or other disposition of property securing
Indebtedness permitted by the Indenture if such agreement does not expressly
restrict the ability of a Subsidiary of the Company to pay dividends or make
loans or advances, and (f) reasonable and customary borrowing base
covenants set forth in agreements evidencing Indebtedness otherwise permitted
by the Indenture, which covenants restrict or limit the distribution of
revenues or sale proceeds from real estate or a real estate project based upon
the amount of indebtedness outstanding on such real estate or real estate
project and the value of some or all of the remaining real estate or the
project’s remaining assets, and customary provisions restricting subletting or
assignment of any lease governing a leasehold interest of the Company or any of
its Restricted Subsidiaries.

 

31

 

Section 3.09.                                                Maintenance
of Consolidated Tangible Net Worth.

 

(a)                                  In
the event that the Consolidated Tangible Net Worth of the Company is less than
$85 million at the end of any two consecutive fiscal quarters (the last day of
the second fiscal quarter being referred to herein as the “Deficiency Date”),
within 30 days after the end of each such period or 60 days in the event that
the end of the period is the end of the Company’s fiscal year, the Company
shall so notify the Trustee in writing by delivery of an Officers’ Certificate
and will offer to purchase from all Holders (a “Net Worth Offer”), and
shall purchase from Holders accepting such Net Worth Offer on the date fixed
for the closing of such Net Worth Offer (the “Net Worth Offer Date”), 10%
of the original outstanding principal amount of the Notes (the “Net Worth
Amount”) at an offer price (the “Net Worth Offer Price”) in cash in
an amount equal to 100% of the aggregate principal amount thereof plus accrued
and unpaid interest, if any, to the Net Worth Offer Date; provided that
no such offer shall be required if, following such two fiscal quarters but
prior to the date the Company is required to make such offer, capital in cash
or cash equivalents is contributed to the Company in an Equity Offering
sufficient to increase the Company’s Consolidated Tangible Net Worth after
giving effect to such contribution to an amount equal to or greater than $85
million.  To the extent that the
aggregate amount of Notes tendered pursuant to a Net Worth Offer is less than
the Net Worth Amount relating thereto, then the Company may use the excess of
the Net Worth Amount over the amount of Notes tendered, or a portion thereof,
for general corporate purposes.  In no
event shall the Company’s failure to meet the Consolidated Tangible Net Worth
threshold at the end of any fiscal quarter be counted toward the making of more
than one Net Worth Offer.  The Company
may reduce the principal amount of Notes to be purchased pursuant to the Net
Worth Offer by subtracting 100% of the principal amount (excluding premium) of
Notes acquired by the Company or any Wholly Owned Subsidiary subsequent to the
Deficiency Date and surrendered for cancellation through purchase, redemption
(other than pursuant to this Section 3.09) or exchange, and that were not
previously used as a credit against any obligation to repurchase Notes pursuant
to this Section 3.09.

 

(b)                                 Subject
to the proviso contained in Section 3.09(a) above, in the event the
Consolidated Tangible Net Worth of the Company is less than $85,000,000 at the
end of any two consecutive fiscal quarters, within 30 days after the end of
such period, the Company (with notice to the Trustee) or the Trustee at the
Company’s request (and at the expense of the Company) will send or cause to be
sent by first-class mail, postage pre-paid, to all Persons who were Holders on
the date of the end of the second such consecutive fiscal quarter, at their
respective addresses appearing in the Security Register, a notice of such
occurrence and of each Holder’s rights arising as a result thereof.  Such notice will contain all instructions and
materials necessary to enable Holders to tender their Notes to the
Company.  Such notice, which will govern
the terms of the Net Worth Offer, will state:

 

(i)                                     that the Net Worth
Offer is being made pursuant to Section 3.09(a) hereof and the length
of time such Net Worth Offer will remain open;

 

(ii)                                  that the Holder has
the right to require the Company to repurchase such Holder’s Notes at the Net
Worth Offer Price;

 

(iii)                               that any Note not
tendered will continue to accrue interest;

 

32

 

(iv)                              that any Note accepted
for payment pursuant to the Net Worth Offer will cease to accrue interest on
the Net Worth Offer Date;

 

(v)                                 that the Net Worth
Offer Date will be no earlier than 45 days nor later than 60 days from the date
such notice is mailed;

 

(vi)                              that Holders electing to
have a Note purchased pursuant to any Net Worth Offer will be required to surrender
the Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, to the Company, a depositary, if appointed by
the Company, or a Paying Agent at the address specified in the notice prior to
termination of the Net Worth Offer;

 

(vii)                           that Holders will be
entitled to withdraw their election if the Company, depositary or Paying Agent,
as the case may be, receives, not later than the expiration of the Net Worth
Offer, or such longer period as may be required by law, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Note the Holder delivered for the purchase and a
statement that such Holder is withdrawing its election to have the Note purchased;

 

(viii)                        that Holders whose Notes are
purchased only in part will be issued Notes equal in principal amount to the
unpurchased portion of the Notes surrendered; and

 

(ix)                                information concerning
the period and details of the events requiring the Net Worth Offer and the
business of the Company which the Company in good faith believes will enable
such Holders to make an informed decision (which at a minimum will include (A) the
most recently filed Annual Report on Form 10-K (including audited
consolidated financial statements) of the Company, the most recent subsequently
filed Quarterly Report on Form 10-Q and any Current Report on Form 8-K
of the Company filed subsequent to such Quarterly Report, other than Current
Reports describing Asset Sales otherwise described in the offering materials
relating to the Net Worth Offer (or corresponding successor reports) (or in the
event the Company is not required to prepare any of the foregoing Forms, the
comparable information required pursuant to Section 3.11 hereof); provided
that the Company may, at its option, incorporate by reference any such filed
reports in the notice, (B) a description of material developments in the
Company’s business subsequent to the date of the latest of such reports, and (C) if
material, appropriate pro forma financial information).

 

(c)                                  In
the event that the aggregate principal amount of Notes surrendered by Holders
exceeds the Net Worth Amount, the Company will select the Notes to be purchased
on a pro rata basis from all Notes so
surrendered, with such adjustments as may be deemed appropriate by the Company
so that only Notes in denominations of $1,000, or integral multiples thereof,
will be purchased.  To the extent that
the Net Worth Amount remaining is less than $1,000, the Company may use such
Net Worth Amount for general corporate purposes.  Holders whose Notes are purchased only in
part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered.

 

33

 

(d)                                 Not
later than one Business Day after the Net Worth Offer Date in connection with
which the Net Worth Offer is being made, the Company will (i) accept for
payment Notes or portions thereof tendered pursuant to the Net Worth offer (on
a pro rata basis if required pursuant to Section 3.09(c) above),
(ii) deposit with the Paying Agent money sufficient, in immediately
available funds, to pay the purchase price of all Notes or portions thereof so
accepted and (iii) deliver to the Paying Agent an Officers’ Certificate
identifying the Notes or portions thereof accepted for payment by the
Company.  The Paying Agent will promptly
mail or deliver to Holders of Notes so accepted payment in an amount equal to
the Net Worth Offer Price of the Notes purchased from each such Holder, and the
Company will execute and the Trustee will promptly authenticate and mail or
deliver to such Holder a new Note equal in principal amount to any unpurchased
portion of the Note surrendered.  Any
Notes not so accepted will be promptly mailed or delivered by the Paying Agent
at the Company’s expense to the Holder thereof. 
The Company will publicly announce the results of the Net Worth Offer
promptly after the Net Worth Offer Date.

 

(e)                                  Any
Net Worth Offer will be conducted by the Company in compliance with applicable
law, including, without limitation, Section 14(e) of the Exchange Act
and Rule 14e-1 thereunder, if applicable.

 

Section 3.10.                                                Limitations
on Mergers and Consolidations.

 

Section 5.01 of the Indenture is hereby replaced in its entirety
by the following:

 

(a)                                  Neither
the Company nor any Subsidiary Guarantor shall consolidate or merge with or
into, or sell, lease, convey or otherwise dispose of all or substantially all
of its assets (including, without limitation, by way of liquidation or
dissolution), or assign any of its obligations under the Notes or the
Guarantees or hereunder (as an entirety or substantially in one transaction or
series of related transactions), to any Person or permit any of its Restricted
Subsidiaries to do any of the foregoing (in each case other than with the
Company or another Wholly Owned Restricted Subsidiary) unless:

 

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

 

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

 

(iii)                               immediately after giving
effect to such transaction and the use of any net proceeds therefrom, on a pro
forma basis, the Consolidated Tangible Net Worth of the Company or the
Successor (in the case of a transaction involving the Company), as the

 

34

 

case may be, would be at least equal to the Consolidated Tangible Net
Worth of the Company immediately prior to such transaction,

 

(iv)                              immediately after giving
effect to such transaction and the use of any net proceeds therefrom, on a pro
forma basis, the Consolidated Fixed Charge Coverage Ratio of the Company or the
Successor (in the case of a transaction involving the Company), as the case may
be, would be such that the Company or the Successor (in the case of a
transaction involving the Company), as the case may be, would be entitled to
Incur at least $1.00 of additional Indebtedness under such Consolidated Fixed
Charge Coverage Ratio test set forth in Section 3.03 hereof, and

 

(v)                                 The Company or any
Subsidiary Guarantor, as the case may be, will deliver to the Trustee prior to
the consummation of the proposed transaction an Officers’ Certificate to the
foregoing effect and an opinion of counsel stating that the proposed
transaction and such supplemental indenture comply with this Supplemental Indenture.

 

(b)                                 Upon
any consolidation or merger, or any sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company or any
assignment of its obligations under this Supplemental Indenture or the Notes in
accordance with this Section 3.10, upon assumption by the successor
corporation, by supplemental indenture, executed and delivered to the Trustee
and satisfactory in form to the Trustee, of the due and punctual payment of the
principal of, premium, if any, and interest on all of the Notes and the due and
punctual performance and observance of all the covenants and conditions of this
Supplemental Indenture to be performed or observed by the Company, the
Successor formed by such consolidation or into or with which the Company is
merged or to which such sale, lease, conveyance or other disposition or
assignment is made will succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Supplemental Indenture with
the same effect as if such Successor has been named as the Company herein and
such Successor may cause to be signed and may issue in its own name or in the
name of the Company, any or all Notes issuable hereunder and the predecessor
Company, in the case of a sale, lease, conveyance or other disposition or
assignment, will be released from all obligations under this Supplemental
Indenture and the Notes.

 

(c)                                  The
foregoing provisions shall not apply to a transaction involving the
consolidation or merger of a Subsidiary Guarantor with or into another Person,
or the sale, lease, conveyance or other disposition of all or substantially all
of the assets of such Subsidiary Guarantor, that results in such Subsidiary
Guarantor being released from its Subsidiary Guarantee as provided under Section 4.04.

 

(d)                                 Any
consolidation, merger, sale, lease or conveyance permitted under subsection (a) above
is also subject to the condition that the Trustee receive an Officers’ Certificate
and an Opinion of Counsel to the effect that any such consolidation, merger,
sale, lease or conveyance, and the assumption by any successor corporation,
complies with the provisions of this Section 3.10 and that all conditions
precedent herein provided for relating to such transaction have been complied
with.

 

35

 

Section 3.11.                                                Reports.

 

As long as any
of the Notes are outstanding, the Company shall deliver to the Trustee and mail
to each Holder within 15 days after the filing of the same with the Commission
copies of the quarterly and annual reports and of the information, documents
and other reports with respect to the Company and the Subsidiary Guarantors, if
any, which the Company and the Subsidiary Guarantors may be required to file
with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act.  Notwithstanding that neither the
Company nor any of the Subsidiary Guarantors may be required to remain subject
to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, the Company shall continue to file with the Commission and provide the
Trustee and Holders with such annual and quarterly reports and such
information, documents and other reports with respect to the Company and the
Subsidiary Guarantors as are required under Sections 13 and 15(d) of the
Exchange Act.  If filing of documents by
the Company with the Commission as aforementioned in this paragraph is not
permitted under the Exchange Act, the Company shall promptly upon written
notice supply copies of such documents to any prospective holder.  The Company and each Subsidiary Guarantor
shall also comply with the other provisions of Section 314(a) of the
Trust Indenture Act.

 

Section 3.12.                                                Subsidiary
Guarantees.

 

After the date
hereof, the Company will cause each of its Subsidiaries that is or becomes a
Restricted Subsidiary (other than, in the Company’s discretion, any Restricted
Subsidiary the assets of which have a book value of not more than $5,000,000)
to be a Subsidiary Guarantor hereunder in accordance with the provisions of Section 4.03
hereof.  The Company may, in its
discretion, cause any Unrestricted Subsidiary to become a Subsidiary Guarantor
hereunder in the same manner.

 

Section 3.13.                                                Limitation
of Applicability of Certain Covenants if the Notes Are Rated Investment Grade.

 

(a)                                  The
Company and its Restricted Subsidiaries’ obligations to comply with the
provisions of the Supplemental Indenture under this Article 3 (except for
Sections 3.05, 3.07, 3.10 (other than clauses (iii) and (iv) of subsection (a) thereof)
and 3.11 hereof) will terminate (such terminated covenants, the “Extinguished
Covenants”) and cease to have any further effect from and after the first
date when the Notes issued under this Supplemental Indenture are rated
Investment Grade; provided that if the Notes subsequently cease to
be rated Investment Grade, then, from and after the time the Notes cease to be
rated Investment Grade, the Company and its Restricted Subsidiaries’ obligation
to comply with the Extinguished Covenants shall be reinstated; provided further
that from and after the time the Notes are rated Investment Grade, no
Restricted Subsidiary that conducts homebuilding or land development activities
or owns Capital Stock in any Subsidiary that conducts homebuilding or land
development activities may be designated an Unrestricted Subsidiary.

 

(b)                                 Notwithstanding
the foregoing, in the event of any such reinstatement, no action taken or
omitted to be taken by the Company or any of its Subsidiaries prior to such
reinstatement shall give rise to a Default or Event of Default under the Supplemental
Indenture upon reinstatement; provided
that (i) with respect to Restricted Payments made after any such
reinstatement,

 

36

 

the amount of Restricted Payments made after April 17, 2002 will
be calculated as though Section 3.02 had been in effect during the entire
period after such date and (ii) with respect to Indebtedness, all
Indebtedness Incurred from the date of the achievement of such Investment Grade
ratings to the date of any such reinstatement will be classified as having been
Incurred pursuant to and permitted under the Consolidated Fixed Charge Coverage
Ratio or one of the clauses set forth in Section 3.03(b) (to the
extent such Indebtedness would be permitted to be Incurred thereunder as of the
date of such reinstatement and after giving effect to Indebtedness Incurred
prior to the date of achievement of such Investment Grade rating and
outstanding on the date of such reinstatement). 
To the extent any Indebtedness would not be permitted to be Incurred
pursuant to the Consolidated Fixed Charge Coverage Ratio or any of the clauses
set forth in Section 3.03(b), such Indebtedness will be deemed to have
been outstanding on the Issue Date, so that it is classified as Existing Indebtedness
and permitted to be refinanced as Refinancing Indebtedness under Section 3.03(b)(i)(A).

 

ARTICLE FOUR

 

Subsidiary Guarantees

 

Section 4.01.                                                Subsidiary
Guarantees of Notes.

 

Subject to the
provisions of this Article Four, each Subsidiary Guarantor hereby jointly
and severally unconditionally guarantees to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Supplemental Indenture,
the Notes or the obligations of the Company or any other Subsidiary Guarantor
to the Holders or the Trustee hereunder or thereunder, that: (a) the
principal of, premium, if any, and interest on the Notes will be duly and
punctually paid in full when due, whether at maturity, by acceleration or otherwise,
and interest on the overdue principal and (to the extent permitted by law)
interest, if any, on the Notes and all other obligations of the Company or the
Subsidiary Guarantors to the Holders or the Trustee hereunder or thereunder
(including fees, expenses or other) and all other obligations with respect to
the Notes, this Supplemental Indenture and the Indenture will be promptly paid
in full or performed, all in accordance with the terms hereof and thereof; and (b) in
case of any extension of time of payment or renewal of any Notes, the same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at maturity, by acceleration or
otherwise.  Failing payment when due of
any amount so guaranteed, or failing performance of any other obligation of the
Company to the Holders, for whatever reason, each Subsidiary Guarantor will be
obligated to pay, or to perform or cause the performance of, the same
immediately.  An Event of Default under
the Indenture, this Supplemental Indenture or the Notes shall constitute an
event of default under this Subsidiary Guarantee, and shall entitle the Holders
of Notes to accelerate the obligations of the Subsidiary Guarantors hereunder
in the same manner and to the same extent as the obligations of the Company and
the Subsidiary Guarantors.

 

Each of the
Subsidiary Guarantors hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Notes or the Indenture or this Supplemental Indenture, the absence of any
action to enforce the same, any waiver or consent by any holder of the Notes
with respect to any provisions hereof or thereof, any release of any other
Subsidiary Guarantor, the recovery of any judgment against the Company,

 

37

 

any action to enforce the same, whether or not a Subsidiary Guarantee
is affixed to any particular Note, or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a Subsidiary
Guarantor.  Each of the Subsidiary Guarantors
hereby waives the benefit of diligence, presentment, demand of payment, filing
of claims with a court in the event of insolvency or bankruptcy of the Company,
any right to require a proceeding first against the Company, protest, notice
and all demands whatsoever and covenants that its Subsidiary Guarantee will not
be discharged except by complete performance of the obligations contained in
the Notes, this Supplemental Indenture and this Subsidiary Guarantee.  If any Holder or the Trustee is required by
any court or otherwise to return to the Company or to any Subsidiary Guarantor,
or any custodian, trustee, liquidator or other similar official acting in
relation to the Company or such Subsidiary Guarantor, any amount paid by the
Company or such Subsidiary Guarantor to the Trustee or such Holder, this
Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated
in full force and effect.  Each Subsidiary
Guarantor further agrees that, as between it, on the one hand, and the Holders
of Notes and the Trustee, on the other hand, (a) subject to this Article Four,
the maturity of the obligations guaranteed hereby may be accelerated as
provided in Article Five hereof or Article Five of the Indenture for
the purposes of this Subsidiary Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (b) in the event of any acceleration of such obligations
as provided in Article Five hereof or Article Five of the Indenture,
such obligations (whether or not due and payable) shall forthwith become due
and payable by the Subsidiary Guarantors for the purpose of this Subsidiary
Guarantee.

 

This
Subsidiary Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Company for
liquidation or reorganization, should the Company become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any significant part of the Company’s assets, and shall,
to the fullest extent permitted by law, continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the
Notes are, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any obligee on the Notes, whether as a “voidable
preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made.  In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Subsidiary Guarantees shall, to the fullest extent permitted by
law, be reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

 

No
stockholder, officer, director, employer or incorporator, past, present or
future, or any Subsidiary Guarantor, as such, shall have any personal liability
under this Subsidiary Guarantee by reason of his, her or its status as such
stockholder, officer, director, employer or incorporator.

 

The Subsidiary
Guarantors shall have the right to seek contribution from any non-paying
Subsidiary Guarantor so long as the exercise of such right does not impair the
rights of the Holders under this Subsidiary Guarantee.

 

Each
Subsidiary Guarantor, and by its acceptance hereof each Holder, hereby confirms
that it is the intention of all such parties that the guarantee by each
Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute a
fraudulent transfer or conveyance for

 

38

 

purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act,
the Uniform Fraudulent Transfer Act or any similar Federal or state law.  To effectuate the foregoing intention, the
Holders and each Subsidiary Guarantor hereby irrevocably agree that the
obligations of each Subsidiary Guarantor under the Subsidiary Guarantees shall
be limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of each Subsidiary Guarantor, result in the
obligations of each Subsidiary Guarantor under the Subsidiary Guarantees not
constituting such fraudulent transfer or conveyance.

 

Section 4.02.                                                Execution
and Delivery of Subsidiary Guarantee.

 

To further
evidence the Subsidiary Guarantee set forth in Section 4.01, each
Subsidiary Guarantors hereby agrees that a notation of such Subsidiary
Guarantee, substantially in the form included in Exhibit C hereto, shall
be endorsed on each Note authenticated and delivered by the Trustee after such
Subsidiary Guarantee is executed and executed by either manual or facsimile
signature of an Officer of each Subsidiary Guarantor.  The validity and enforceability of any
Subsidiary Guarantee shall not be affected by the fact that it is not affixed
to any particular Note.

 

Each of the
Subsidiary Guarantors hereby agrees that its Subsidiary Guarantee set forth in Section 4.01
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Subsidiary Guarantee.

 

If an Officer
of a Subsidiary Guarantor whose signature is on this Supplemental Indenture or
a Note no longer holds that office at the time the Trustee authenticates such
Note or at any time thereafter, such Subsidiary Guarantor’s Subsidiary
Guarantee of such Note shall be valid nevertheless.

 

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

 

Section 4.03.                                                Additional
Subsidiary Guarantors.

 

Any Person may
become a Subsidiary Guarantor by executing and delivering to the Trustee (a) a
supplemental indenture in form and substance satisfactory to the Trustee which
subjects such Person to the provisions of this Supplemental Indenture as a
Subsidiary Guarantor, and (b) an opinion of Counsel to the effect that
such supplemental indenture has been duly authorized and executed by such
Person and constitutes the legal, valid, binding and enforceable obligation of
such Person (subject to such customary exceptions concerning fraudulent
conveyance laws, creditors’ rights and equitable principles as may be
acceptable to the Trustee in its discretion).

 

Section 4.04.                                                Release
of a Subsidiary Guarantor.

 

(a)                                  Except
in the case where the prohibition on transfer in Section 3.10 is
applicable, if all or substantially all of the assets of any Subsidiary
Guarantor or all of the capital stock of any Subsidiary Guarantor is sold
(including by issuance or otherwise) by the Company or any of its Subsidiaries
in a transaction constituting an Asset Sale, and if the Net Proceeds from

 

39

 

such Asset Sale are used in accordance with Section 3.01, then
such Subsidiary Guarantor (in the event of a sale or other disposition of all
of the capital stock of such Subsidiary Guarantor) or the corporation acquiring
such assets (in the event of a sale or other disposition of all or
substantially all of the assets of such Subsidiary Guarantor) shall be deemed
automatically and unconditionally released and discharged from all obligations
under this Article Four without any further action required on the part of
the Trustee or any Holder, provided that each such Subsidiary Guarantor
(or its assets) is sold or disposed of in accordance with Section 3.01.

 

(b)                                 Upon
the release of the guarantee by a Subsidiary Guarantor under all then
outstanding Applicable Debt, at any time after the suspension of the
Extinguished Covenants pursuant to Section 3.13 hereof, the Subsidiary Guarantee
of such Subsidiary Guarantor under the Supplemental Indenture will be released
and discharged at such time and no Restricted Subsidiary thereafter acquired or
created will be required to be a Subsidiary Guarantor; provided that the
foregoing shall not apply to any release of any Subsidiary Guarantor done in
contemplation of, or in connection with, any cessation of the Notes being rated
Investment Grade.  In the event that (i) any
such released Subsidiary Guarantor thereafter guarantees any Applicable Debt
(or if any released guarantee under any Applicable Debt is reinstated or
renewed) or (ii) the Extinguished Covenants cease to be suspended pursuant
to Section 3.13 hereof, then any such released Subsidiary Guarantor and
any other Restricted Subsidiary of the Company then existing will guarantee the
Notes on the terms and conditions set forth in the Supplemental Indenture.  For purposes of this clause (b), Applicable
Debt secured by a Lien on such Restricted Subsidiary’s Property or issued by
such Restricted Subsidiary shall be deemed guaranteed by such Restricted Subsidiary.

 

(c)                                  The
Trustee shall deliver an appropriate instrument evidencing the release of a
Subsidiary Guarantor upon receipt of a request of the Company accompanied by an
Officers’ Certificate certifying as to the compliance with this Section 4.04.
 Any Subsidiary Guarantor not so released
or the entity surviving such Subsidiary Guarantor, as applicable, will remain
or be liable under its Subsidiary Guarantee as provided in this Article Four.

 

The Trustee
shall execute any documents reasonably requested by the Company or a Subsidiary
Guarantor in order to evidence the release of such Subsidiary Guarantor from
its obligations under its Subsidiary Guarantee endorsed on the Notes and under
this Article Four.

 

Except as set
forth in Article Three hereof and this Section 4.04, nothing
contained in this Supplemental Indenture or in any of the Notes shall prevent
any consolidation or merger of a Subsidiary Guarantor with or into the Company
or another Subsidiary Guarantor or shall prevent any sale or conveyance of the
property of a Subsidiary Guarantor as an entirety or substantially as an
entirety to the Company or another Subsidiary Guarantor.

 

Section 4.05.                                                Waiver
of Subrogation.

 

Each
Subsidiary Guarantor hereby irrevocably waives any claim or other rights which
it may now or hereafter acquire against the Company or any of its Subsidiaries
that arise from the existence, payment, performance or enforcement of such Subsidiary
Guarantor’s obligations under this Subsidiary Guarantee and this Supplemental
Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right

 

40

 

to participate in any claim or remedy of any Holder of Notes against
the Company or any of its Subsidiaries, whether or not such claim, remedy or
right arises in equity, or under contract, statute or common law, including,
without limitation, the right to take or receive from the Company or any of its
Subsidiaries, directly or indirectly, in cash or other property or by set-off
or in any other manner, payment or security on account of such claim or other
rights.  If any amount shall be paid to
any Subsidiary Guarantor in violation of the preceding sentence and the Notes
shall not have been paid in full, such amount shall have been deemed to have
been paid to such Subsidiary Guarantor for the benefit of, and held in trust
for the benefit of, the Holders of the Notes, and shall forthwith be paid to
the Trustee for the benefit of such Holders to be credited and applied upon the
Notes, whether matured or unmatured, in accordance with the terms of this
Supplemental Indenture.  Each Subsidiary
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Supplemental Indenture and that
the waiver set forth in this Section 4.05 is knowingly made in
contemplation of such benefits.

 

ARTICLE FIVE

 

Miscellaneous

 

Section 5.01.                                                Events
of Default.

 

Sections 6.01
and 6.02 of the Indenture are hereby replaced in their entirety by the following:

 

(a)                                  “Event
of Default,” wherever used herein, means any of the following events (whatever
the reason for such Event of Default and whether it will be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

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

 

(ii)                                  the failure by the
Company to pay the principal or premium of any Note when the same becomes due
and payable at maturity, upon acceleration or otherwise (including the failure
to make payment pursuant to a Change of Control Offer, a Net Worth Offer or an
Excess Proceeds Offer);

 

(iii)                               the failure by the
Company or any of its Subsidiaries to comply with any of its agreements or
covenants in, or provisions of, the Notes, the Subsidiary Guarantees or this
Supplemental Indenture and such failure continues for the period and after the
notice specified below;

 

(iv)                              the acceleration of any
Indebtedness (other than Non-Recourse Indebtedness) of the Company or any of
its Subsidiaries that has an outstanding principal amount of $25 million or
more in the aggregate;

 

(v)                                 the failure by the
Company or any of its Subsidiaries to make any principal or interest payment in
respect of Indebtedness (other than Non-Recourse Indebtedness)

 

41

 

of the Company or any of its Subsidiaries with an outstanding aggregate
amount of $25 million or more within five days of such principal or interest
payment becoming due and payable (after giving effect to any applicable grace
period set forth in the documents governing such Indebtedness); provided
that if such failure to pay shall be remedied, waived or extended, then the
Event of Default hereunder shall be deemed likewise to be remedied, waived or
extended without further action by the Company;

 

(vi)                              a final judgment or
judgments that exceed $25 million or more in the aggregate, for the payment of
money, having been entered by a court or courts of competent jurisdiction
against the Company or any of its Subsidiaries and such judgment or judgments
is not satisfied, stayed, annulled or rescinded within 60 days of being entered;

 

(vii)                           the Company or any Material
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(A)                              commences a voluntary
case,

 

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

 

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

 

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

 

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

 

(A)                              is for relief against the
Company or any Material Subsidiary as debtor in an involuntary case,

 

(B)                                appoints a Custodian of
the Company or any Material Subsidiary or a Custodian for all or substantially
all of the property of the Company or any Material Subsidiary, or

 

(C)                                orders the liquidation
of the Company or any Material Subsidiary and the order or decree remains
unstayed and in effect for 60 days; or

 

(ix)                                any Subsidiary
Guarantee ceases to be in full force and effect (other than in accordance with
the terms of such Subsidiary Guarantee and this Supplemental Indenture) or is
declared null and void and unenforceable or found to be invalid or any
Subsidiary Guarantor denies its liability under its Subsidiary Guarantee (other
than by reason of release of a Subsidiary Guarantor from its Subsidiary
Guarantee in accordance with the terms of this Supplemental Indenture and the
Subsidiary Guarantee).

 

42

 

(b)                                 The
Trustee will not be deemed to know of a Default unless a Trust Officer has
actual knowledge of such Default or receives written notice of such Default
with specific reference to such Default.

 

(c)                                  A
Default under Section 5.01(a)(iii) hereof will not be deemed an Event
of Default until the Trustee notifies the Company, or the Holders of at least
25% in principal amount of the then outstanding Notes notify the Company and
the Trustee, of the Default and the Company does not cure the Default within 60
days after receipt of the notice.  The
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.” If such a Default is cured within such time period,
it ceases.

 

(d)                                 If
an Event of Default (other than an Event of Default with respect to the Company
specified in clause (vii) or (viii) of Section 5.01(a) hereof)
shall have occurred and be continuing under this Supplemental Indenture, the
Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the Notes then outstanding by notice to the Company and the Trustee,
may declare all Notes to be due and payable immediately.  Upon such declaration of acceleration, the
amounts due and payable on the Notes, as determined in Section 5.01(e) hereof,
will be due and payable immediately.  If
an Event of Default with respect to the Company specified in clause (vii) or
(viii) of Section 5.01(a) hereof occurs, such an amount will ipso
facto become and be immediately due and payable without any declaration,
notice or other act on the part of the Trustee and the Company or any
Holder.  The Holders of a majority in
principal amount of the Notes then outstanding by written notice to the Trustee
and the Company may waive such Default or Event of Default (other than any Default
or Event of Default in payment of principal or interest) on the Notes under
this Supplemental Indenture.  Holders of
a majority in principal amount of the then outstanding Notes may rescind an
acceleration and its consequences (except an acceleration due to nonpayment of
principal or interest on the Notes) if the rescission would not conflict with
any judgment or decree and if all existing Events of Default have been cured or
waived.

 

(e)                                  In
the event that the maturity of the Notes is accelerated pursuant to Section 5.01(d) hereof,
100% of the principal amount of the Notes (or, in the case of a default under Section 5.01(b)(ii) or
(iii) hereof resulting from a breach of the covenant set forth in Section 3.05
hereof, 101% of the principal amount of the Notes) will become due and payable
plus accrued interest, if any, to the date of payment.

 

(f)                                    The
Company shall deliver to the Trustee a quarterly statement regarding compliance
with the provisions under this Supplemental Indenture, and include in such statement,
if any Officer of the Company is aware of any Default or Event of Default, a
statement specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.  In addition, the Company shall deliver to the
Trustee prompt written notice of the occurrence of any Default or Event of
Default and any other development, financial or otherwise, which might
materially affect its business, properties or affairs or the ability of the
Company to perform its obligations under this Supplemental Indenture.

 

43

 

Section 5.02.                                                Amendment,
Supplement and Waiver.

 

Subject to
certain exceptions, this Supplemental Indenture or the Notes may be amended or
supplemented with the consent (which may include consents obtained in connection
with a tender offer or exchange offer for Notes) of the Holders of at least a
majority in principal amount of the Notes then outstanding, and any existing
Default or Event of Default (other than any continuing Default or Event of
Default in the payment of interest on or the principal of the Notes) under, or
compliance with any provision of, the Indenture or this Supplemental Indenture
may be waived with the consent (which may include consents obtained in
connection with a tender offer or exchange offer for Notes) of the Holders of a
majority in principal amount of the Notes then outstanding.  Without the consent of any Holder, the
Company, the Subsidiary Guarantors and the Trustee may amend this Supplemental
Indenture or the Notes or waive any provision of the Indenture or this
Supplemental Indenture to cure any ambiguity, defect or inconsistency, to
comply with Section 3.10; to provide for uncertificated Notes in addition
to certificated Notes; to make any change that does not adversely affect the
legal rights under this Supplemental Indenture of any Holder; to comply with or
qualify the Indenture under the Trust Indenture Act; or to reflect a Subsidiary
Guarantor ceasing to be liable on the Subsidiary Guarantees because it is no
longer a Subsidiary of the Company.

 

Without the
consent of each Holder affected, the Company may not

 

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

 

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

 

(iii)                               reduce the principal of
or change the fixed maturity of any Note or alter the provisions with respect
to redemption under the “Optional Redemption” section set forth in the
Notes or with respect to mandatory offers to repurchase Notes pursuant to
Sections 3.01, 3.05 and 3.09 of this Supplemental Indenture,

 

(iv)                              make any Note payable in
money other than that stated in the Note,

 

(v)                                 make any change in the
“Waiver of Past Defaults” or “Right of Holders to Receive Payment” or, in part,
the “With Consent of Holders” sections set forth in the Indenture,

 

(vi)                              modify the ranking or
priority of the Notes or any Subsidiary Guarantee,

 

(vii)                           release any Subsidiary
Guarantor from any of its obligations under its Subsidiary Guarantee or the
Indenture otherwise than in accordance with the terms of the Indenture, or

 

(viii)                        waive a continuing Default or
Event of Default in the payment of principal of or interest on the Notes.

 

44

 

The right of
any Holder to participate in any consent required or sought pursuant to any
provision of the Indenture (and the obligation of the Company to obtain any
such consent otherwise required from such Holder) may be subject to the requirement
that such Holder shall have been the Holder of record of any Notes with respect
to which such consent is required or sought as of a date identified by the
Trustee in a notice furnished to Holders in accordance with the terms of the
Indenture.

 

Section 5.03.                                                Indenture.

 

In the event
of any conflict between this Supplemental Indenture and the Indenture, the
provisions of this Supplemental Indenture shall prevail.

 

Section 5.04.                                                Governing
Law.

 

The laws of
the State of New York shall govern this Supplemental Indenture, the Securities
of the Series created hereby and the Subsidiary Guarantees thereof.

 

Section 5.05.                                                No
Adverse Interpretation of Other Agreements.

 

This
Supplemental Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. 
Any such indenture, loan or debt agreement may not be used to interpret
this Supplemental Indenture.

 

Section 5.06.                                                Successors
and Assigns.

 

All covenants
and agreements of the Company and the Subsidiary Guarantors in this
Supplemental Indenture and the Notes shall bind its successors and
assigns.  All agreements of the Trustee
in this Supplemental Indenture shall bind its successors and assigns.

 

Section 5.07.                                                Duplicate
Originals.

 

The parties
may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

 

Section 5.08.                                                Severability.

 

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

 

[Signature Pages Follow]

 

45

 

SIGNATURES

 

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

 

	
   

  	
  BEAZER HOMES USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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 INDIANA HOLDINGS INC.

  
	
   

  	
  BEAZER HOMES TEXAS HOLDINGS, INC.

  
	
   

  	
  BEAZER MORTGAGE CORPORATION

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-1

 

	
   

  	
  BEAZER HOMES INDIANA, LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES TEXAS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS, INC.,

  
	
   

  	
   

  	
  its managing partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER REALTY SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

S-2

 

	
   

  	
  BEAZER TITLE AGENCY OF ARIZONA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER TITLE AGENCY OF NEVADA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER SPE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its managing member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BH BUILDING PRODUCTS, LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

S-3

 

	
   

  	
  BH PROCUREMENT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  [                                 ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARAGON TITLE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENT CORP.,

  
	
   

  	
   

  	
  its partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXAS LONE STAR TITLE, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS, INC.,

  
	
   

  	
   

  	
  its managing partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRINITY HOMES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENT CORP.,

  
	
   

  	
   

  	
  its manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

S-4

 

	
   

  	
  BEAZER COMMERCIAL HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER CLARKSBURG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

S-5

 

	
  U.S. BANK NATIONAL ASSOCIATION,

  as Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

S-6

 

Exhibit A

 

UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY, OR BY ANY SUCH NOMINEE OF THE DEPOSITORY, OR BY THE
DEPOSITORY OR NOMINEE OF SUCH SUCCESSOR DEPOSITORY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO AN ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.17
OF THE INDENTURE REFERRED TO HEREIN.(1)

 

THE NOTE
(OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
ACT OF 1933, AND THE NOTE EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM.  EACH PURCHASER OF
THE NOTE EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER THE
SECURITIES ACT.  THE HOLDER OF THE

 

(1)                                  This
paragraph should be included if the Note is issued in global form.

 

A-1

 

NOTE EVIDENCED HEREBY AGREES FOR THE BENEFIT
OF BEAZER HOMES USA, INC. THAT (A) SUCH NOTE MAY BE RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED ONLY (1)(A) TO A PERSON WHO THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), PURCHASING FOR ITS OWN ACCOUNT IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (B) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144 OF THE SECURITIES ACT, (C) OUTSIDE
THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D) TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER
THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) THAT IS PURCHASING
AT LEAST $100,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF AN
INSTITUTIONAL ACCREDITED INVESTOR (AND BASED UPON AN OPINION OF COUNSEL IF
BEAZER HOMES USA, INC. SO REQUESTS) OR (E) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED
THAT IN THE CASE OF A TRANSFER UNDER CLAUSE (E) SUCH TRANSFER IS
SUBJECT TO THE RECEIPT BY THE TRUSTEE (AND BEAZER HOMES USA, INC., IF IT SO
REQUESTS) OF A CERTIFICATION OF THE TRANSFEROR AND AN OPINION OF COUNSEL TO THE
EFFECT THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (2) TO
BEAZER HOMES USA, INC. OR ANY OF ITS SUBSIDIARIES OR (3) UNDER AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION AND THE INDENTURE GOVERNING THE
NOTES AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE NOTE EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE. 
IF ANY RESALE OR OTHER TRANSFER OF ANY NOTE IS PROPOSED TO BE MADE UNDER
CLAUSE (A)(1)(D) ABOVE WHILE THESE TRANSFER RESTRICTIONS ARE IN FORCE THEN
THE TRANSFEROR SHALL DELIVER A LETTER FROM THE TRANSFEREE TO BEAZER AND THE
TRUSTEE WHICH SHALL PROVIDE, AMONG OTHER THINGS, THAT THE TRANSFEREE IS AN
INSTITUTIONAL ACCREDITED INVESTOR AND THAT IT IS ACQUIRING THE NOTES FOR
INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES
ACT.

 

A-2

 

	
  No.

  	
  CUSIP
  No.:             

  

 

6-7/8%
Senior Notes due 2015, Series A

 

BEAZER
HOMES USA, INC.

a Delaware
corporation

 

	
  promises to pay to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  or registered assigns

  	
   

  	
   

  
	
  the principal sum of

  	
   

  	
  [Dollars] on
  July 15, 2015        

  

 

6-7/8% Senior Notes due 2015

Interest Payment Dates:  January 15
and July 15, commencing on January 15, 2006

Record Dates:  January 1 and
July 1

 

	
  Authenticated:

  	
  Dated:

  

 

 

[The
Remainder of This Page Has Intentionally Been Left Blank.]

 

A-3

 

IN WITNESS WHEREOF, the Company has caused this Note
to be executed as of the date first above written.

 

	
   

  	
  BEAZER HOMES USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  U.S. BANK NATIONAL ASSOCIATION, as Trustee,

  certifies that this is one of the Notes referred to in the

  within mentioned Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  

 

A-4

 

BEAZER
HOMES USA, INC.

 

6-7/8%
Senior Notes due 2015, Series A

 

1.                                       Interest.

 

BEAZER HOMES
USA, INC. (the “Company”), a Delaware corporation, promises to pay
interest on the principal amount of this Note at the rate per annum shown
above.  The Company will pay interest semiannually
on January 15 and July 15 of each year, commencing January 15,
2006, until the principal is paid or made available for payment.  Interest on the Notes will accrue from the
most recent date to which interest has been paid or duly provided for or, if no
interest has been paid, from June 8, 2005. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.

 

2.                                       Method
of Payment.

 

The Company
will pay interest on the Notes (except defaulted interest, if any, which will
be paid on such special payment date to Holders of record on such special
record date as may be fixed by the Company) to the persons who are registered
Holders of Notes at the close of business on January 1 and July 1.  Holders must surrender Notes to a Paying Agent
to collect principal payments.  The
Company will pay principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts.

 

3.                                       Paying
Agent and Registrar.

 

Initially,
U.S. Bank National Association (the “Trustee”) will act as Paying Agent
and Registrar.  The Company may change or
appoint any Paying Agent, Registrar or co-Registrar without notice.  The Company or any of its Subsidiaries may
act as Paying Agent, Registrar or co-Registrar.

 

4.                                       Indenture.

 

The Company
issued the Notes under an Indenture dated as of April 17, 2002 (as amended
or supplemented, the “Indenture”) among the Company, the Subsidiary
Guarantors and the Trustee.  The terms of
the Notes and the Subsidiary Guarantees include those stated in the Indenture
(including those terms set forth in the Authorizing Resolution or supplemental
indenture pertaining to the Notes of the Series of which this Note is a
part) and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (“TIA”) as in effect on the date of the Indenture.  The Notes and the Subsidiary Guarantees are
subject to all such terms, and Securityholders are referred to the Indenture
and the Act for a statement of them.  The
Notes include the Initial Notes and the Exchange Notes (each as defined in the
Indenture) issued in exchange for the Initial Notes pursuant to the
Registration Rights Agreement (as hereinafter defined).

 

A-5

 

The Company
will furnish to any Securityholder upon written request and without charge a
copy of the Indenture and the applicable Authorizing Resolution or supplemental
indenture.  Requests may be made to:  Beazer Homes USA, Inc., 1000 Abernathy
Road, Suite 1200, Atlanta, Georgia 30328, Attention:  President.

 

5.                                       Optional
Redemption.

 

The Company
may redeem all or any portion of the Notes at any time and from time to time on
or after July 15, 2010 and prior to maturity at the following redemption
prices (expressed in percentages of the principal amount thereof) together, in
each case, with accrued and unpaid interest to the date fixed for redemption if
redeemed during the 12-month period beginning on July 15 of each year
indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.438

  	
  %

  
	
  2011

  	
   

  	
  102.292

  	
  %

  
	
  2012

  	
   

  	
  101.146

  	
  %

  
	
  2013 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
on or prior to July 15, 2008, the Company may, at its option, redeem up to
35% of the aggregate principal amount of Notes issued under the Indenture with
the net proceeds of an Equity Offering at 106.875% of the principal amount
thereof plus accrued and unpaid interest, if any, to the date fixed for
redemption; provided, that at least 65% of the aggregate
principal amount of the Notes issued under the Indenture remain outstanding
after such redemption.  Notice of any
such redemption must be given within 60 days after the date of the closing of
the relevant Public Equity Offering.

 

Prior to July 15,
2010, we may at our option redeem the Notes, in whole or in part, at a redemption
price equal to 100% of the principal amount of the Notes to be redeemed plus
the Applicable Premium as of, and accrued and unpaid interest to, the
redemption date (subject to the right of Holders on the relevant record date to
receive interest due on the relevant interest payment date).  Notice of such redemption must be mailed by first-class
mail to each Holder’s registered address, not less than 30 nor more than 60
days prior to the redemption date.

 

“Applicable
Premium” means, with respect to a Note at any redemption date, the greater of (i) 1.00%
of the principal amount of such Note and (ii) the excess of (A) the
present value at such redemption date of (1) the redemption price of such
Note on July 15, 2010 (such redemption price being described in the first paragraph
of this section 5 exclusive of any accrued interest) plus (2) all
required remaining scheduled interest payments due on such Note through July 15,
2010 (but excluding accrued and unpaid interest to the redemption date),
computed using a discount rate equal to the Adjusted Treasury Rate, over (B) the
principal amount of such Note on such redemption date.

 

A-6

 

“Adjusted
Treasury Rate” means, with respect to any redemption date, (i) the yield, under
the heading which represents the average for the immediately preceding week, appearing
in the most recently published statistical release designated “H.15(519)” or
any successor publication which is published weekly by the Board of Governors
of the Federal Reserve System and which establishes yields on actively traded
United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities”, for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months before or
after July 15, 2010, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue shall be determined and the
Adjusted Treasury Rate shall be interpolated or extrapolated from such yields
on a straight line basis, rounding to the nearest month) or (ii) if such
release (or any successor release) is not published during the week preceding
the calculation date or does not contain such yields, the rate per year equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date, in each case calculated on
the third Business Day immediately preceding the redemption date, plus 0.50%
per annum.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the
Notes from the redemption date to July 15, 2010, that would be utilized,
at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities of a maturity most nearly
equal to July 15, 2010.

 

“Comparable
Treasury Price” means, with respect to any redemption date, if clause (ii) of
the Adjusted Treasury Rate is applicable, the average of three, or such lesser
num-ber as is obtained by the Trustee, Reference Treasury Dealer Quotations for
such redemption date.

 

“Quotation
Agent” means the Reference Treasury Dealer selected by the Trustee after
consultation with the Company.

 

“Reference
Treasury Dealer” means UBS Securities LLC and its successors and assigns, and
two other nationally recognized investment banking firms selected by the
Company that are primary U.S. Government securities dealers.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue, expressed in each
case as a percentage of its principal amount, quoted in writing to the Trustee
by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the
third Business Day immediately preceding such redemption date.

 

In the event
less than all of the Notes are to be redeemed at any time, selection of the
Notes to be redeemed will be made by the Trustee from among the outstanding
Notes on a pro rata basis, by lot or by any other
method permitted by the Indenture. 
Notice of redemption

 

A-7

 

will be mailed at least 15 days but not more than 60 days before the
redemption date to each Holder whose Notes are to be redeemed at the registered
address of such Holder.  On and after the
redemption date, interest will cease to accrue on the Notes or portions thereof
called for redemption.

 

The Indenture
requires the Company

 

(i)                                     to
offer to purchase all of the outstanding Notes upon a Change of Control of the
Company,

 

(ii)                                  to
offer to purchase a portion of the outstanding Notes using Net Proceeds neither
used to repay certain Indebtedness nor used or invested as provided in the Supplemental
Indenture or

 

(iii)                               to
offer to purchase 10% of the original outstanding principal amount of the Notes
in the event that, at the end of any two consecutive fiscal quarters, the
Company’s Consolidated Tangible Net Worth is less than $85 million; provided that no such offer shall be required if, following
such two fiscal quarters but prior to the date the Company is required to make
such offer, capital in cash or cash equivalents is contributed to the Company
in an Equity Offering sufficient to increase the Company’s Consolidated
Tangible Net Worth after giving effect to such contribution to an amount equal
to or greater than $85 million.

 

6.                                       Registration
Rights Agreement.

 

The Holder of
this Note is entitled to the benefits of a Registration Rights Agreement, dated
as of June 8, 2005, among the Company, the Subsidiary Guarantors and the
Initial Purchasers named therein (as such may be amended from time to time, the
“Registration Rights Agreement”). 
Capitalized terms used in this subsection but not defined herein
have the meanings assigned to them in the Registration Rights Agreement.

 

If (i) the
Exchange Offer is not completed on or before the 180th calendar day following
the Issue Date or, if that day is not a Business Day, then the next 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 required
by the Registration Rights Agreement or is declared effective but thereafter
ceases to be effective or usable (subject to certain exceptions) (each such
event referred to in clauses (i) and (ii), a “Registration Default”),
the interest rate borne by the Notes will be increased by 0.25% per annum upon
the occurrence of a Registration Default. 
This rate will continue to increase by 0.25% each 90 day period that the
Liquidated Damages (as defined below) continue to accrue under any such
circumstance.  However, the maximum total
increase in the interest rate will in no event exceed one percent (1.0%) per
year.  The increase in the interest rate
on the Notes is referred to as “Liquidated Damages.”  Such interest is payable in addition to any
other interest payable from time to time with respect to the Initial Notes and
the Exchange Notes in cash on each interest payment date to the Holders of
record for such interest payment date.

 

A-8

 

 

7.                                       Denominations,
Transfer, Exchange.

 

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

 

8.                                       Persons
Deemed Owners.

 

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

 

9.                                       Unclaimed
Money.

 

If money for
the payment of principal or interest remains unclaimed for two years, the
Trustee or Paying Agent will pay the money back to the Company at its
request.  After that, Holders entitled to
the money must look to the Company for payment unless an abandoned property law
designates another person.

 

10.                                 Amendment,
Supplement, Waiver.

 

Subject to
certain exceptions, the Indenture or the Notes may be amended or supplemented
with the consent (which may include consents obtained in connection with a
tender offer or exchange offer for Notes) of the Holders of at least a majority
in principal amount of the Notes then outstanding, and any existing Default or
Event of Default (other than any continuing Default or Event of Default in the
payment of interest on or the principal of the Notes) under, or compliance with
any provision of, the Indenture may be waived with the consent (which may
include consents obtained in connection with a tender offer or exchange offer
for Notes) of the Holders of a majority in principal amount of the Notes then
outstanding.  Without the consent of any
Holder, the Company, the Subsidiary Guarantors and the Trustee may amend the
Indenture or the Notes or waive any provision of the Indenture to cure any
ambiguity, defect or inconsistency, to comply with Section 3.10 of the
Supplemental Indenture; to provide for uncertificated Notes in addition to
certificated Notes; to make any change that does not adversely affect the legal
rights under the Indenture of any Holder; to comply with or qualify the
Indenture under the Trust Indenture Act; or to reflect a Subsidiary Guarantor
ceasing to be liable on the Subsidiary Guarantees because it is no longer a
Subsidiary of the Company.

 

A-9

 

11.                                 Successor
Corporation.

 

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

 

12.                                 Trustee
Dealings With Company.

 

U.S. Bank
National Association, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its affiliates, and may otherwise deal with the Company or
its affiliates, as if it were not Trustee.

 

13.                                 No
Recourse Against Others.

 

A director,
officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of or by reason of, such obligations or
their creation.  Each Securityholder by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issue of the Notes.

 

14.                                 Discharge
of Indenture.

 

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

 

15.                                 Authentication.

 

This Note
shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Note.

 

16.                                 Abbreviations.

 

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

 

A-10

 

ASSIGNMENT
FORM

 

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

 

I or we assign
and transfer this Note to

 

 

 

(Insert assignee’s social security
or tax ID number)

 

 

 

 

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

 

 

and irrevocably appoint

 

 

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

 

 

 

	
  Date: 

  	
   

  	
   

  	
  Your signature:

  	
   

  
	
   

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

  this Note)

  

 

SIGNATURE GUARANTEE

 

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

 

In connection
with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of the declaration by the Commission of the effectiveness
of a registration statement under the Securities Act of 1933, as amended (the “Securities
Act”) covering

 

 

resales of this Note (which effectiveness shall not have been suspended
or terminated at the date of the transfer) and (ii) two years from the
Issue Date, the undersigned confirms that it has not utilized any general
solicitation or general advertising in connection with the transfer:

 

[Check One]

 

(1)  o                                                                to the Company
or a subsidiary thereof; or

 

(2)  o                                                                pursuant to and
in compliance with Rule 144A under the Securities Act of 1933, as amended;
or

 

(3)  o                                                                to an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended) that has furnished to
the Trustee a signed letter containing certain representations and agreements
(the form of which letter can be obtained from the Trustee); or

 

(4)  o                                                                outside the
United States to a “foreign person” in compliance with Rule 904 of
Regulation S under the Securities Act of 1933, as amended; or

 

(5)  o                                                                pursuant to the
exemption from registration provided by Rule 144 under the Securities Act of
1933, as amended; or

 

(6)  o                                                                pursuant to an
effective registration statement under the Securities Act of 1933, as amended;
or

 

(7)  o                                                                pursuant to
another available exemption from the registration requirements of the
Securities Act of 1933, as amended;

 

and unless the box below is checked, the undersigned confirms that such
Note is not being transferred to an “affiliate” of the Company as defined in Rule 144
under the Securities Act of 1933, as amended (an “Affiliate”):

 

 

o                                    The transferee is
an Affiliate of the Company.

 

Unless one of
the items is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however, that if item (3),
(4), (5) or (7) is checked, the Company or the Trustee may require,
prior to registering any such transfer of the Notes, in their sole discretion,
such written legal opinions, certifications (including an investment letter in
the case of box (3) or (4)) and other information as the Trustee or the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as amended.

 

If none of the
foregoing items are checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Section 2.14 of the Indenture shall have been satisfied.

 

	
  Dated: 

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears on

  the other side of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Subsidiary Guarantee:

  	
   

  	
   

  
								

 

(SIGNATURE MUST BE GUARANTEED)

 

SIGNATURE GUARANTEE

 

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

 

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as
amended and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not
to request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: 
  To be executed by an executive officer

  

 

 

[FORM OF NOTATION ON NOTE
RELATING TO GUARANTEE]

 

GUARANTEE

 

Beazer
Commercial Holdings, LLC, Beazer Clarksburg, LLC, Beazer General Services, Inc.,
Beazer Homes Corp., Beazer/Squires Realty, Inc., Beazer Homes Sales, Inc.,
Beazer Homes Investments, LLC, Beazer Realty Corp., Beazer Mortgage
Corporation, 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., Beazer Title Agency of Arizona, LLC, Beazer Title
Agency of Nevada, LLC, 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 Homes Indiana, LLP, Beazer Homes Indiana
Holdings Corp., Beazer Realty Services, LLC, Beazer Realty Los Angeles, Inc.,
Beazer Realty Sacramento, Inc., Beazer Title Agency of Arizona, LLC,
Beazer Title Agency of Nevada, LLC, BH Products, LP, BH Procurement Services,
LLC, Beazer General Services, Inc., Beazer Commercial Holdings, LLC and
Beazer Clarksburg, LLC (the “Subsidiary Guarantors”) have
unconditionally guaranteed, jointly and severally (such guarantee by each
Subsidiary Guarantor being referred to herein as the “Subsidiary Guarantee”)
(i) the due and punctual payment of the principal of and interest on the
Notes, whether at maturity, by acceleration or otherwise, the due and punctual
payment of interest on the overdue principal and interest, if any, on the
Notes, to the extent lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms set forth in Article Nine of the Indenture and (ii) in case
of any extension of time of payment or renewal of any Notes or any of such
other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

 

No past,
present or future stockholder, officer, director, employee or incorporator, as
such, of any of the Subsidiary Guarantors shall have any liability under the
Subsidiary Guarantee by reason of such person’s status as stockholder, officer,
director, employee or incorporator.  Each
holder of a Note by accepting a Note waives and releases all such
liability.  This waiver and release are
part of the consideration for the issuance of the Subsidiary Guarantees.

 

Each holder of
a Note by accepting a Note agrees that any Subsidiary Guarantor named below
shall have no further liability with respect to its Subsidiary Guarantee if
such Subsidiary Guarantor otherwise ceases to be liable in respect of its Subsidiary
Guarantee in accordance with the terms of the Indenture.

 

 

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

 

	
   

  	
  SUBSIDIARY GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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 MORTGAGE CORPORATION

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  BEAZER HOMES INDIANA, LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  
	
   

  	
   

  	
  its Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES TEXAS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS,

  INC., its Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER REALTY SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  
	
   

  	
   

  	
  its Managing Member

  

 

 

	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER TITLE AGENCY OF ARIZONA,

  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER TITLE AGENCY OF NEVADA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER SPE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP.,

  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BH PROCUREMENT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS, L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS,

  INC., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  PARAGON TITLE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXAS LONE STAR TITLE, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS,

  INC., its managing partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRINITY HOMES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS LLC,

  its manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  BEAZER COMMERCIAL HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP. its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER CLARKSBURG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit B

 

	
  No.

  	
  CUSIP
  No.:             

  

 

6-7/8%
Senior Notes due 2015, Series B

 

BEAZER HOMES
USA, INC.

a Delaware
corporation

 

	
  promises to pay to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  or registered assigns

  	
   

  	
   

  
	
  the principal sum of

  	
   

  	
  [Dollars] on
  July 15, 2015        

  

 

6-7/8% Senior Notes due 2015

Interest Payment Dates:  January 15
and July 15, commencing on January 15, 2006

Record Dates:  January 1 and
July 1

 

	
  Authenticated:

  	
  Dated:

  

 

 

[The
Remainder of This Page Has Intentionally Been Left Blank.]

 

B-1

 

IN WITNESS WHEREOF, the Company has caused this Note
to be executed as of the date first above written.

 

	
   

  	
  BEAZER HOMES USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  U.S. BANK NATIONAL ASSOCIATION, as Trustee,

  certifies that this is one of the Notes referred to in the

  within mentioned Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  

 

B-2

 

BEAZER
HOMES USA, INC.

 

6-7/8%
Senior Notes due 2015, Series B

 

1.                                       Interest.

 

BEAZER HOMES
USA, INC. (the “Company”), a Delaware corporation, promises to pay
interest on the principal amount of this Note at the rate per annum shown
above.  The Company will pay interest
semiannually on January 15 and July 15 of each year, commencing January 15,
2006, until the principal is paid or made available for payment.  Interest on the Notes will accrue from the
most recent date to which interest has been paid or duly provided for or, if no
interest has been paid, from June 8, 2005. 
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

 

2.                                       Method
of Payment.

 

The Company
will pay interest on the Notes (except defaulted interest, if any, which will
be paid on such special payment date to Holders of record on such special
record date as may be fixed by the Company) to the persons who are registered
Holders of Notes at the close of business on January 1 and July 1.  Holders must surrender Notes to a Paying
Agent to collect principal payments.  The
Company will pay principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts.

 

3.                                       Paying
Agent and Registrar.

 

Initially,
U.S. Bank National Association (the “Trustee”) will act as Paying Agent
and Registrar.  The Company may change or
appoint any Paying Agent, Registrar or co-Registrar without notice.  The Company or any of its Subsidiaries may
act as Paying Agent, Registrar or co-Registrar.

 

4.                                       Indenture.

 

The Company
issued the Notes under an Indenture dated as of April 17, 2002 (as amended
or supplemented, the “Indenture”) among the Company, the Subsidiary
Guarantors and the Trustee.  This Note is
one of the duly authorized Exchange Notes of the Company designated as its 6-7/8%
Senior Notes due 2015 (the “Exchange Notes”).  The terms of the Notes and the Subsidiary
Guarantees include those stated in the Indenture (including those terms set
forth in the Authorizing Resolution or supplemental indenture pertaining to the
Notes of the Series of which this Note is a part) and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (“TIA”) as
in effect on the date of the Indenture. 
The Notes and the Subsidiary Guarantees are subject to all such terms,
and Securityholders are referred to the Indenture and the Act for a statement
of them.  The Notes include the Initial
Notes and the Exchange Notes (each as defined in the Indenture) issued in
exchange for the Initial Notes pursuant to the Registration Rights Agreement.

 

B-3

 

The Company
will furnish to any Securityholder upon written request and without charge a
copy of the Indenture and the applicable Authorizing Resolution or supplemental
indenture.  Requests may be made to:  Beazer Homes USA, Inc., 1000 Abernathy, Suite 1200,
Atlanta, Georgia 30328, Attention:  President.

 

5.                                       Optional
Redemption.

 

The Company
may redeem all or any portion of the Notes at any time and from time to time on
or after July 15, 2010 and prior to maturity at the following redemption
prices (expressed in percentages of the principal amount thereof) together, in
each case, with accrued and unpaid interest to the date fixed for redemption if
redeemed during the 12-month period beginning on July 15 of each year
indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.438

  	
  %

  
	
  2011

  	
   

  	
  102.292

  	
  %

  
	
  2012

  	
   

  	
  101.146

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
on or prior to July 15, 2008, the Company may, at its option, redeem up to
35% of the aggregate principal amount of Notes issued under the Indenture with
the net proceeds of an Equity Offering at 106.875% of the principal amount
thereof plus accrued and unpaid interest, if any, to the date fixed for
redemption; provided, that at least 65% of the aggregate
principal amount of the Notes issued under the Indenture remain outstanding
after such redemption. Notice of any such redemption must be given within 60
days after the date of the closing of the relevant Public Equity Offering.

 

Prior to July 15,
2010, we may at our option redeem the Notes, in whole  or in part, at a redemption price equal to
100% of the principal amount of the Notes to be redeemed plus the Applicable
Premium as of, and accrued and unpaid interest to, the redemption date (subject
to the right of Holders on the relevant record date to receive interest due on
the relevant interest payment date). 
Notice of such redemption must be mailed by first-class mail to each
Holder’s registered address, not less than 30 nor more than 60 days prior to
the redemption date.

 

“Applicable Premium” means,
with respect to a Note at any redemption date, the greater of (i) 1.00% of
the principal amount of such Note and (ii) the excess of (A) the
present value at such redemption date of (1) the redemption price of such
Note on July 15, 2010 (such redemption price being described in the first paragraph
of this section 5 exclusive of any accrued interest) plus (2) all
required remaining scheduled interest payments due on such Note through July 15,
2010 (but excluding accrued and unpaid interest to the redemption date),
computed using a discount rate equal to the Adjusted Treasury Rate, over (B) the
principal amount of such Note on such redemption date.

 

B-4

 

“Adjusted Treasury Rate” means,
with respect to any redemption date, (i) the yield, under the heading
which represents the average for the immediately preceding week, appearing in
the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of
the Federal Reserve System and which establishes yields on actively traded
United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities”, for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months before or
after July 15, 2010, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue shall be determined and the
Adjusted Treasury Rate shall be interpolated or extrapolated from such yields
on a straight line basis, rounding to the nearest month) or (ii) if such
release (or any successor release) is not published during the week preceding
the calculation date or does not contain such yields, the rate per year equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date, in each case calculated on
the third Business Day immediately preceding the redemption date, plus 0.50%
per annum.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the
Notes from the redemption date to July 15, 2010, that would be utilized,
at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities of a maturity most nearly
equal to July 15, 2010.

 

“Comparable Treasury Price”
means, with respect to any redemption date, if clause (ii) of
the Adjusted Treasury Rate is applicable, the average of three, or such lesser
number as is obtained by the Trustee, Reference Treasury Dealer Quotations for
such redemption date.

 

“Quotation Agent” means
the Reference Treasury Dealer selected by the Trustee after consultation with
the Company.

 

“Reference Treasury Dealer”
means UBS Securities LLC and its successors and assigns, and two
other nationally recognized investment banking firms selected by the Company
that are primary U.S. Government securities dealers.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue,
expressed in each case as a percentage of its principal amount, quoted in writing
to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day immediately preceding such redemption
date.

 

In the event
less than all of the Notes are to be redeemed at any time, selection of the
Notes to be redeemed will be made by the Trustee from among the outstanding
Notes on a pro rata basis, by lot or by any other
method permitted by the Indenture. 
Notice of redemption

 

B-5

 

will be mailed at least 15 days but not more than 60 days before the
redemption date to each Holder whose Notes are be redeemed at the registered
address of such Holder.  On and after the
redemption date, interest will cease to accrue on the Notes or portions thereof
called for redemption.

 

The Indenture
requires the Company

 

(i)                                     to
offer to purchase all of the outstanding Notes upon a Change of Control of the
Company,

 

(ii)                                  to
offer to purchase a portion of the outstanding Notes using Net Proceeds neither
used to repay certain Indebtedness nor used or invested as provided in the Supplemental
Indenture or

 

(iii)                               to
offer to purchase 10% of the original outstanding principal amount of the Notes
in the event that, at the end of any two consecutive fiscal quarters, the
Company’s Consolidated Tangible Net Worth is less than $85 million; provided that no such offer shall be required if, following
such two fiscal quarters but prior to the date the Company is required to make
such offer, capital in cash or cash equivalents is contributed to the Company
in an Equity Offering sufficient to increase the Company’s Consolidated
Tangible Net Worth after giving effect to such contribution to an amount equal
to or greater than $85 million.

 

6.                                       Denominations,
Transfer, Exchange.

 

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

 

7.                                       Persons
Deemed Owners.

 

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

 

8.                                       Unclaimed
Money.

 

If money for
the payment of principal or interest remains unclaimed for two years, the
Trustee or Paying Agent will pay the money back to the Company at its
request.  After that, Holders entitled to
the money must look to the Company for payment unless an abandoned property law
designates another person.

 

B-6

 

9.                                       Amendment,
Supplement, Waiver.

 

Subject to
certain exceptions, the Indenture or the Notes may be amended or supplemented
with the consent (which may include consents obtained in connection with a
tender offer or exchange offer for Notes) of the Holders of at least a majority
in principal amount of the Notes then outstanding, and any existing Default or
Event of Default (other than any continuing Default or Event of Default in the
payment of interest on or the principal of the Notes) under, or compliance with
any provision of, the Indenture may be waived with the consent (which may
include consents obtained in connection with a tender offer or exchange offer
for Notes) of the Holders of a majority in principal amount of the Notes then
outstanding.  Without the consent of any
Holder, the Company, the Subsidiary Guarantors and the Trustee may amend the
Indenture or the Notes or waive any provision of the Indenture to cure any
ambiguity, defect or inconsistency, to comply with Section 3.10 of the
Supplemental Indenture; to provide for uncertificated Notes in addition to
certificated Notes; to make any change that does not adversely affect the legal
rights under the Indenture of any Holder; to comply with or qualify the Indenture
under the Trust Indenture Act; or to reflect a Subsidiary Guarantor ceasing to
be liable on the Subsidiary Guarantees because it is no longer a Subsidiary of
the Company.

 

10.                                 Successor
Corporation.

 

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

 

11.                                 Trustee
Dealings With Company.

 

U.S. Bank
National Association, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its affiliates, and may otherwise deal with the Company or
its affiliates, as if it were not Trustee.

 

12.                                 No
Recourse Against Others.

 

A director,
officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of or by reason of, such obligations or
their creation.  Each Securityholder by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issue of the Notes.

 

13.                                 Discharge
of Indenture.

 

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

 

B-7

 

14.                                 Authentication.

 

This Note
shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Note.

 

15.                                 Abbreviations.

 

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

 

B-8

 

ASSIGNMENT
FORM

 

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

 

I or we assign
and transfer this Note to

 

 

 

(Insert assignee’s social
security or tax ID number)

 

 

 

 

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

 

 

and irrevocably appoint

 

 

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

 

 

 

	
  Date: 

  	
   

  	
   

  	
  Your signature:

  	
   

  
	
   

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

  this Note)

  

 

SIGNATURE GUARANTEE

 

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

 

B-9

 

[FORM OF NOTATION ON NOTE
RELATING TO GUARANTEE]

 

GUARANTEE

 

Beazer
Commercial Holdings, LLC, Beazer Clarksburg, LLC, Beazer General Services, Inc.,
Beazer Homes Corp., Beazer/Squires Realty, Inc., Beazer Homes Sales, Inc.,
Beazer Homes Investments, LLC, Beazer Realty Corp., Beazer Mortgage
Corporation, 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., Beazer Title Agency of Arizona, LLC, Beazer Title
Agency of Nevada, LLC, 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 Homes Indiana, LLP, Beazer Homes Indiana
Holdings Corp., Beazer Realty Services, LLC, Beazer Realty Los Angeles, Inc.,
Beazer Realty Sacramento, Inc., Beazer Title Agency of Arizona, LLC,
Beazer Title Agency of Nevada, LLC, BH Products, LP, BH Procurement Services,
LLC, Beazer General Services, Inc., Beazer Commercial Holdings, LLC and
Beazer Clarksburg, LLC (the “Subsidiary Guarantors”) have
unconditionally guaranteed, jointly and severally (such guarantee by each
Subsidiary Guarantor being referred to herein as the “Subsidiary Guarantee”)
(i) the due and punctual payment of the principal of and interest on the
Notes, whether at maturity, by acceleration or otherwise, the due and punctual
payment of interest on the overdue principal and interest, if any, on the
Notes, to the extent lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms set forth in Article Nine of the Indenture and (ii) in case
of any extension of time of payment or renewal of any Notes or any of such
other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

 

No past,
present or future stockholder, officer, director, employee or incorporator, as
such, of any of the Subsidiary Guarantors shall have any liability under the
Subsidiary Guarantee by reason of such person’s status as stockholder, officer,
director, employee or incorporator.  Each
holder of a Note by accepting a Note waives and releases all such
liability.  This waiver and release are
part of the consideration for the issuance of the Subsidiary Guarantees.

 

Each holder of
a Note by accepting a Note agrees that any Subsidiary Guarantor named below
shall have no further liability with respect to its Subsidiary Guarantee if
such Subsidiary Guarantor otherwise ceases to be liable in respect of its Subsidiary
Guarantee in accordance with the terms of the Indenture.

 

B-10

 

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

 

	
   

  	
  SUBSIDIARY GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  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 MORTGAGE CORPORATION

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-11

 

	
   

  	
  BEAZER HOMES INDIANA, LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  
	
   

  	
  its Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP., its Managing

  
	
   

  	
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES TEXAS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS,

  
	
   

  	
  INC., its Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-12

 

	
   

  	
  BEAZER REALTY SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER TITLE AGENCY OF ARIZONA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER TITLE AGENCY OF NEVADA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-13

 

	
   

  	
  BEAZER SPE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES HOLDINGS CORP., its

  
	
   

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BH PROCUREMENT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS, L.P.,

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS,

  
	
   

  	
  INC.,

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-14

 

	
   

  	
  PARAGON TITLE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS, LLC,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXAS LONE STAR TITLE, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES TEXAS HOLDINGS,

  
	
   

  	
  INC.,

  
	
   

  	
  its managing partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRINITY HOMES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES INVESTMENTS LLC,

  
	
   

  	
  its manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-15

 

	
   

  	
  BEAZER COMMERCIAL HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER CLARKSBURG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES CORP.,

  
	
   

  	
  its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-16

 

Exhibit C

 

Form of Certificate To Be

Delivered in Connection with

Transfers to
Non-QIB Accredited Investors

 

[Date]

 

U.S. Bank National Association

U.S. Bank Corporate Trust Center

180 East 5th Street

Suite 200

St. Paul, MN  55101

 

Ladies and Gentlemen:

 

In connection
with our proposed purchase of 6-7/8% Senior Notes due 2015  (the “Notes”) of Beazer Homes USA, Inc.,
a Delaware corporation (the “Company”), we confirm that:

 

1.                                       We
have received a copy of the Offering Memorandum (the “Offering Memorandum”),
dated
[                    ],
relating to the Notes and such other information as we deem necessary in order
to make our investment decision.  We
acknowledge that we have read and agreed to the matters stated in the section entitled
“Notice to Investors” of such Offering Memorandum.

 

2.                                       We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture relating to the Notes
(the “Indenture”) as described in the Offering Memorandum and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes except in compliance with, such restrictions and conditions
and the Securities Act of 1933, as amended (the “Securities Act”), and
all applicable State securities laws.

 

3.                                       We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons except as
permitted in the following sentence.  We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell any Notes, we will do so only (i) to
the Company or any subsidiary thereof, (ii) inside the United States in
accordance with Rule 144A under the Securities Act to a “qualified
institutional buyer” (as defined in Rule 144A promulgated under the
Securities Act), (iii) inside the United States to an institutional “accredited
investor” (as defined below) that, prior to such transfer, furnishes (or has
furnished on its behalf by a U.S. broker-dealer) to the Trustee (as defined in
the Indenture) a signed letter containing certain representations and
agreements relating to the restrictions on transfer of the Notes (the form of
which

 

C-1

 

letter can be obtained from the Trustee), (iv) outside the United
States in accordance with Rule 904 of Regulation S promulgated under the
Securities Act to non-U.S. persons, (v) pursuant to the exemption from
registration provided by Rule 144 under the Securities Act (if available),
or (vi) pursuant to an effective registration statement under the Securities
Act, and we further agree to provide to any person purchasing any of the Notes
from us a notice advising such purchaser that resales of the Notes are restricted
as stated herein.

 

4.                                       We
understand that, on any proposed resale of any Notes, we will be required to
furnish to the Trustee and the Company such certification, legal opinions and
other information as the Trustee and the Company may reasonably require to
confirm that the proposed sale complies with the foregoing restrictions.  We further understand that the Notes
purchased by us will bear a legend to the foregoing effect.

 

5.                                       We
are an institutional “accredited investor” (as defined in Rule 501(a)(1),
(2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Notes, and
we and any accounts for which we are acting are each able to bear the economic
risk of our or their investment, as the case may be.

 

6.                                       We
are acquiring the Notes purchased by us for our account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each
of which we exercise sole investment discretion.

 

You, the
Company, the Trustee and others are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-2

 

Exhibit D

 

Form of Certificate To Be
Delivered

in Connection with Transfers

Pursuant to
Regulation S

 

[Date]

 

U.S. Bank National Association

U.S. Bank Corporate Trust Center

180 East 5th Street

Suite 200

St. Paul, MN  55101

 

Re:                               Beazer
Homes USA, Inc. (the “Company”)

6-7/8% Senior Notes due 2015 (the “Notes”)      

 

Ladies and Gentlemen:

 

In connection
with our proposed sale of
$[          ] aggregate
principal amount of the Notes, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the U.S. Securities Act
of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

 

(1)                                  the
offer of the Notes was not made to a person in the United States;

 

(2)                                  either
(a) at the time the buy offer was originated, the transferee was outside
the United States or we and any person acting on our behalf reasonably believed
that the transferee was outside the United States, or (b) the transaction
was executed in, on or through the facilities of a designated off-shore
securities market and neither we nor any person acting on our behalf knows that
the transaction has been pre-arranged with a buyer in the United States;

 

(3)                                  no
directed selling efforts have been made in the United States in contravention
of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable;

 

(4)                                  the
transaction is not part of a plan or scheme to evade the registration requirements
of the Securities Act; and

 

(5)                                  we
have advised the transferee of the transfer restrictions applicable to the
Notes.

 

You, the
Company and counsel for the Company are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested

 

D-1

 

party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. 
Terms used in this certificate have the meanings set forth in Regulation
S.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

D-2Exhibit 4.3

 

 

REGISTRATION RIGHTS AGREEMENT

 

Dated as of June 8, 2005

 

By and Among

 

BEAZER HOMES USA, INC.,

as Issuer,

 

the
GUARANTORS named herein

 

and

 

UBS SECURITIES LLC

as Initial Purchaser

 

6-7/8% Senior Notes due 2015

 

 

 

TABLE OF CONTENTS

 

	
  Section 1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Exchange Offer

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Shelf Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Liquidated Damages

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Registration Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.

  	
  Registration Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.

  	
  Rules 144 and 144A

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.

  	
  Underwritten Registrations

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  No Inconsistent Agreements

  	
   

  
	
   

  	
  (b)

  	
  Adjustments Affecting Registrable Notes

  	
   

  
	
   

  	
  (c)

  	
  Amendments and Waivers

  	
   

  
	
   

  	
  (d)

  	
  Notices

  	
   

  
	
   

  	
  (e)

  	
  Guarantors

  	
   

  
	
   

  	
  (f)

  	
  Successors and Assigns

  	
   

  
	
   

  	
  (g)

  	
  Counterparts

  	
   

  
	
   

  	
  (h)

  	
  Headings

  	
   

  
	
   

  	
  (i)

  	
  Governing Law

  	
   

  
	
   

  	
  (j)

  	
  Severability

  	
   

  
	
   

  	
  (k)

  	
  Securities Held by the Company or Its Affiliates

  	
   

  
	
   

  	
  (l)

  	
  Third-Party Beneficiaries

  	
   

  
	
   

  	
  (m)

  	
  Attorneys’ Fees

  	
   

  
	
   

  	
  (n)

  	
  Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  

 

i

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is dated as of June 8,
2005, 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 (the “Initial Purchaser”), on the other hand.

 

This Agreement
is entered into in connection with the Purchase Agreement, dated as of June 1,
2005, by and among the Issuers and the Initial Purchaser (the “Purchase
Agreement”), relating to the offering and sale of $300,000,000 aggregate
principal amount of the Company’s 6-7/8% Senior Notes due 2015 (including the
guarantees thereof by the Guarantors, the “Notes”) to the Initial
Purchaser.  The execution and delivery of
this Agreement is a condition to the Initial Purchaser’s obligation 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, and the Fifth Supplemental
Indenture, dated as of June 8, 2005, by and among the Issuers and U.S.
Bank National Association, as trustee, pursuant to which the Notes are being
issued.

 

“Initial
Purchaser” 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 8, 2005, 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.

 

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

 

2

 

“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.

 

“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.

 

3

 

“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 180 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.

 

(b)                                 The
Company and the Initial Purchaser 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”

 

4

 

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 Purchaser 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 180 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.

 

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

 

5

 

(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
180 days of the Issue Date, (iii) any Holder (other than the Initial
Purchaser) 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
Purchaser so requests 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”) 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

 

6

 

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
Self 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 180 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 an Initial Purchaser), 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 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

 

7

 

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 Purchaser 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 180th 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 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:

 

8

 

(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 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

 

9

 

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.

 

(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

 

10

 

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
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.

 

11

 

(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 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

 

12

 

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 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.

 

13

 

(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.

 

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

 

14

 

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 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

 

15

 

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 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

 

16

 

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 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

 

17

 

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 Purchaser 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 Purchaser (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 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

 

18

 

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 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

 

19

 

(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.

 

(iii)                               if
to the Initial Purchaser, 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

 

20

 

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.

 

(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.

 

21

 

(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:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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
  MORTGAGE CORPORATION

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

S-1

 

	
   

  	
  BEAZER HOMES
  INDIANA, LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  INVESTMENTS, LLC,

  
	
   

  	
   

  	
  its Managing
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER HOMES
  INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP., its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAZER HOMES
  TEXAS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  TEXAS HOLDINGS,

  INC., its Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-2

 

	
   

  	
  BEAZER
  REALTY SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  INVESTMENTS, LLC,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAZER TITLE
  AGENCY OF ARIZONA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  HOLDINGS CORP.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER TITLE
  AGENCY OF NEVADA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  HOLDINGS CORP.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER SPE,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  HOLDINGS CORP., its

  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-3

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BH PROCUREMENT
  SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  TEXAS, L.P.,

  
	
   

  	
   

  	
  its General
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  TEXAS HOLDINGS,

  INC., its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARAGON
  TITLE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  INVESTMENTS, LLC, its

  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-4

 

	
   

  	
  TEXAS LONE
  STAR TITLE, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  TEXAS HOLDINGS,

  INC., its managing partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRINITY
  HOMES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  INVESTMENTS LLC, its

  manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP., its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER COMMERCIAL
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP. its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAZER
  CLARKSBURG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BEAZER HOMES
  CORP., its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-5

 

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 Mortgage Corporation

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.

Beazer Title Agency of Arizona, LLC

Beazer Title Agency of Nevada, LLC

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]