Document:

exv10w1

Exhibit 10.1

Execution Version

      

EXCHANGE AGREEMENT

among

BEAZER HOMES USA, INC.

and

TABERNA PREFERRED FUNDING V, LTD.,

TABERNA PREFERRED FUNDING VII, LTD.,

and

TABERNA PREFERRED FUNDING VIII, LTD.

Dated as of January 15, 2010

      

 

 

EXCHANGE AGREEMENT

     THIS EXCHANGE AGREEMENT, dated as of January 15, 2010 (this “Agreement”), is entered into by
and among BEAZER HOMES USA, INC., a Delaware corporation (the “Company”), and TABERNA PREFERRED
FUNDING V, LTD. (“Taberna V”), TABERNA PREFERRED FUNDING VII, LTD. (“Taberna VII”), and TABERNA
PREFERRED FUNDING VIII, LTD. (“Taberna VIII”, and together with Taberna V and Taberna VII,
collectively, “Taberna” or the “Taberna Entities”).

RECITAL:

     A. Reference is made to (i) that certain Junior Subordinated Indenture dated as of June 15,
2006 (the “Existing Indenture”), by and between the Company and The Bank of New York Mellon Trust
Company, National Association (“BNYM”) (as successor to JPMorgan Chase Bank, National Association,)
as trustee (the “Existing Indenture Trustee”).

     B. Reference is made to (i) that certain Amended and Restated Trust Agreement dated as of June
15, 2006 (the “Trust Agreement”), by and among the Company, as depositor, BNYM (successor to
JPMorgan Chase Bank, National Association, as property trustee) (the “Property Trustee”), The Bank
of New York (Delaware) (as successor to Chase Bank USA, National Association, as Delaware trustee)
(the “Delaware Trustee”), and the respective administrative trustees named therein.

     C. Beazer Homes Capital Trust I (“Trust I”) is the holder of the Junior Subordinated Notes due
2036 in the original aggregate principal amount of $103,093,000 issued by the Company pursuant to
the Existing Indenture (“Existing Subordinated Notes”).

     D. Pursuant to the Trust Agreement, Trust I issued one or more Preferred Securities
Certificates (as such term is defined in the Trust Agreement) in the aggregate liquidation amount
of One Hundred Million Dollars ($100,000,000) (the “Original Security”), which Original Security is
a global security.

     E. Taberna V, Taberna VII and Taberna VIII are the holders of $75,000,000 in aggregate
liquidation amount of the Original Security (the “Original Holdings”).

     F. Simultaneously herewith, the Company and Wilmington Trust Company, as trustee (the “New
Indenture Trustee”) have entered into that certain Junior Subordinated Indenture (the “New
Indenture”) pursuant to which Company proposes to issue Seventy Five Million Dollars ($75,000,000)
in aggregate principal amount of the Junior Subordinated Notes due 2036 of the Company as follows
(collectively, the “Securities”):

	 	(i)	 	Junior Subordinated Note due 2036 in the original principal amount of
$25,000,000 issued by the Company to Taberna V (registered in the name of Embassy &
Co., as nominee of U.S. Bank, National Association in its capacity as CDO Trustee with
respect to Taberna V) , a copy of which is attached hereto as Exhibit B-1 (“Note 1”);

 

 

	 	(ii)	 	Junior Subordinated Note due 2036 in the original principal amount of
$25,000,000 issued by the Company to Taberna VII (registered in the name of Hare & Co.,
as nominee of BNYM in its capacity as CDO Trustee with respect to Taberna VII), a copy
of which is attached hereto as Exhibit B-2 (“Note 2”); and
	 
	 	(iii)	 	Junior Subordinated Note due 2036 in the original principal amount of
$25,000,000 issued by the Company to Taberna VIII (registered in the name of Hare &
Co., as nominee of BNYM in its capacity as CDO Trustee with respect to Taberna VIII), a
copy of which is attached hereto as Exhibit B-3 (“Note 3”).

     G. On the terms and subject to the conditions set forth in this Agreement, the Company and
Taberna have agreed to exchange the Original Holdings for the Securities.

     NOW, THEREFORE, in consideration of the mutual agreements and subject to the terms and
conditions herein set forth, the parties hereto agree as follows:

     1.
Definitions. This Agreement, the New Indenture and the Securities and all documents
executed and delivered in connection with the foregoing are collectively referred to herein as the
“Operative Documents.” All other capitalized terms used but not defined in this Agreement shall
have the respective meanings ascribed thereto in the New Indenture.

     “Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. §§101 et seq., as
amended.

     “Benefit Plan” means an “employee benefit plan” (as defined in ERISA) that is subject to Title
I of ERISA, a “plan” as defined in Section 4975 of the Code or any entity whose assets include (for
purposes of U.S. Department of Labor Regulations Section 2510.3-101 or otherwise for purposes of
Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or
“plan.”

     “BNYM” has the meaning set forth in the Recitals.

     “CDO Trustee” has the meaning set forth in Section 2(b)(i).

     “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated under it.

     “Closing Date” has the meaning set forth in Section 2(b).

     “Closing Room” has the meaning set forth in Section 2(b).

     “Company” has the meaning set forth in the introductory paragraph hereof.

     “Company Counsel” has the meaning set forth in Section 3(b).

     “Commission” has the meaning set forth in Section 4(v).

     “Delaware Trustee” has the meaning set forth in the Recitals.

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     “Environmental Laws” has the meaning set forth in Section 4(kk).

     “Equity Interests” means with respect to any Person (a) if such a Person is a partnership, the
partnership interests (general or limited) in a partnership, (b) if such Person is a limited
liability company, the membership interests in a limited liability company and (c) if such Person
is a corporation, the shares or stock interests (both common stock and preferred stock) in a
corporation.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules
and regulations promulgated under it.

     “Exchange” has the meaning set forth in Section 2(b).

     “Exchange Act” has the meaning set forth in Section 4(j).

     “Existing Indenture” has the meaning set forth in the Recitals.

     “Existing Indenture Trustee” has the meaning set forth in the Recitals.

     “Existing Subordinated Notes” has the meaning set forth in the Recitals.

     “Financial Statements” has the meaning set forth in Section 4(w).

     “Form 10-K” means the Company’s annual report on Form 10-K for the fiscal year ended September
30, 2009 together with the Company’s Form 10-K/A filed December 7, 2009.

     “GAAP” has the meaning set forth in Section 4(w).

     “Governmental Entities” has the meaning set forth in Section 4(o).

     “Governmental Licenses” has the meaning set forth in Section 4(r).

     “Hazardous Materials” has the meaning set forth in Section 4(kk).

     “Holder” has the meaning set forth in the New Indenture.

     “Indemnified Party” has the meaning set forth in Section 8(a). “Indemnified Parties” shall
have the correlative meaning.

     “Investment Company Act” has the meaning set forth in Section 4(j).

     “Lien” has the meaning set forth in Section 4(o).

     “Material Adverse Effect” means a material adverse effect on the condition (financial or
otherwise), earnings, business, liabilities or assets of the Company and its subsidiaries taken as
a whole.

     “Material Adverse Change” has the meaning set forth in Section 3(f)(ii).

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     “New Indenture” has the meaning set forth in the Recitals.

     “New Indenture Trustee” has the meaning set forth in the Recitals.

     “Note 1” has the meaning set forth in the Recitals.

     “Note 2” has the meaning set forth in the Recitals.

     “Note 3” has the meaning set forth in the Recitals.

     “Original Holdings” has the meaning set forth in the Recitals.

     “Original Security” has the meaning set forth in the Recitals.

     “Properties” has the meaning set forth in Section 4(jj).

     “Property Trustee” has the meaning set forth in the Recitals.

     “Regulation D” has the meaning set forth in Section 4(h).

     “Repayment Event” has the meaning set forth in Section 4(o).

     “Rule 144A(d)(3)” has the meaning set forth in Section 4(j).

     “Securities” has the meaning set forth in the Recitals.

     “Securities Act” means the Securities Act of 1933, 15 U.S.C. §§77a et seq., as
amended, and the rules and regulations promulgated under it.

     “Significant Subsidiary” has the meaning set forth in Section 4(q).

     “Taberna” has the meaning set forth in the introductory paragraph hereof.

     “Taberna Entities” has the meaning set forth in the introductory paragraph hereof.

     “Taberna V” has the meaning set forth in the introductory paragraph hereof.

     “Taberna VII” has the meaning set forth in the introductory paragraph hereof.

     “Taberna VIII” has the meaning set forth in the introductory paragraph hereof.

     “Taberna Transferred Rights” means any and all of Taberna’s right, title, and interest in, to
and under the Original Holdings, together with the following:

          (i) all amounts payable to Taberna under the Original Holdings, the Existing Indenture
and/or the Trust Agreement, excluding, however, amounts payable on account of accrued
distributions for the period from October 30, 2009 through and including January 15, 2010;

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          (ii) all claims (including “claims” as defined in Bankruptcy Code §101(5)), suits,
causes of action, and any other right of Taberna, whether known or unknown, against the
Company or any of its affiliates (including the Trust), agents, representatives,
contractors, advisors, or any other entity that in any way is based upon, arises out of or
is related to any of the foregoing, including all claims (including contract claims, tort
claims, malpractice claims, and claims under any law governing the exchange of, purchase and
sale of, or indentures for, securities), suits, causes of action, and any other right of
Taberna against any attorney, accountant, financial advisor, or other entity arising under
or in connection with the Original Holdings, the Existing Indenture, the Trust Agreement or
the transactions related thereto or contemplated thereby;

          (iii) all guarantees and all collateral and security of any kind for or in respect of
the foregoing;

          (iv) all cash, securities, or other property, and all setoffs and recoupments, to be
received, applied, or effected by or for the account of Taberna under the Original Holdings,
other than fees, costs and expenses payable to Taberna hereunder and all cash, securities,
interest, dividends, and other property that may be exchanged for, or distributed or
collected with respect to, any of the foregoing; and

          (v) all proceeds of the foregoing.

	 	 	“Trust I” has the meaning set forth in the Recitals.

	 	 	“Trust Agreement” has the meaning set forth in the Recitals.

     2. Exchange of the Original Holdings for Securities.

          (a) The Company agrees to issue the Securities in accordance with the New Indenture and has
requested that Taberna accept such Securities in exchange for the Original Holdings, and Taberna
hereby accepts such Securities in exchange for the Original Holdings upon the terms and conditions
set forth herein.

          (b) The closing of the exchange contemplated herein shall occur at the offices of Nixon
Peabody, LLP in New York, New York (the “Closing Room”), or such other place as the parties hereto
and WILMINGTON TRUST COMPANY shall agree, at 11:00 a.m. New York time, on January 15, 2010 or such
later date as the parties may agree (such date and time of delivery the “Closing Date”). The
Company and Taberna hereby agree that the exchange (the “Exchange”) will occur in accordance with
the following procedures and conditions:

          (i) Taberna Capital Management, LLC (as collateral manager for each of the Taberna
Entities) shall have delivered an issuer order instructing each trustee (in each such
capacity, a “CDO Trustee”) under the applicable indenture pursuant to which such CDO Trustee
serves as trustee for the holders of the Original Holdings to exchange the Original Holdings
for the Securities.

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          (ii) The Company shall have executed and delivered the Securities to the Closing Room,
and the Securities shall have previously been made available for inspection, if so
requested.

          (iii) The Company shall have directed the New Indenture Trustee to authenticate the
Securities and deliver them to the applicable CDO Trustee, as follows: (i) Note 1 to Taberna
V, (ii) Note 2 to Taberna VII, and (iii) Note 3 to Taberna VIII.

          (iv) The New Indenture Trustee shall have authenticated the Securities in accordance
with the terms of the New Indenture and delivered them as provided above.

          (v) Pursuant to Section 4.9 of the Trust Agreement, (A) the Company shall have
delivered the Original Holdings to the Property Trustee and, in exchange therefor, the
Property Trustee shall have delivered to the Company a Like Amount of Notes and (B) the
Company shall have delivered 75% of the aggregate Liquidation Amount of the Outstanding
Common Securities to the Property Trustee and, in exchange therefor, the Property Trustee
shall have delivered to the Company a Like Amount of Notes. Each of the Taberna Entities
and the Company agree that such exchanges shall be made on the Closing Date without any
requirement to comply with any of the notice or timing provisions set forth in Section 4.9
of the Trust Agreement. The Bank of New York Mellon Trust Company, National Association, as
Property Trustee under the Trust Agreement, shall be permitted to conclusively rely on the
immediately preceding sentence. Each of the Taberna Entities and the Company also agree and
consent to the amendment to the Existing Indenture to provide that junior subordinated notes
issued under the Existing Indenture shall be issuable in minimum denominations of $10,000
and any integral multiple of $250 in excess thereof. Beazer Homes Capital Trust I and The
Bank of New York Mellon Trust Company, National Association, as Trustee under the Existing
Indenture, shall be permitted to conclusively rely on the immediately preceding sentence.
All capitalized terms used in this paragraph but not otherwise defined in this Agreement or
the New Indenture shall have the respective meanings ascribed thereto in the Trust
Agreement.

          (vi) Upon the occurrence of the events described in clauses (i) through (v) above and
all of the conditions precedent set forth in Section 3, the Company and Taberna shall
consummate the Exchange and (A) the Taberna Entities hereby irrevocably transfer, assign,
grant and convey the Original Holdings and the related Taberna Transferred Rights to the
Company and the Company assumes all rights and obligations of the Taberna Entities with
respect to the Original Holdings and the Taberna Transferred Rights and (B) each Holder
shall hereby be entitled to all of the rights, title and interest of a Holder of the
Securities under the terms of the Securities, the New Indenture and any other Operative
Documents.

          (vii) The Company shall have paid to Wilmington Trust Company all of such party’s legal
fees, costs and other expenses in connection with the Exchange, as well as all other accrued
and unpaid fees, costs and expenses under the Existing Indenture and the Trust Agreement, if
any.

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          (viii) The Company shall have paid to the Property Trustee, for applications upon the
Original Holdings and for distribution to Taberna V, Taberna VII and Taberna VIII pursuant
to the terms of the Trust Agreement, all accrued distributions for the period commencing on
the most recent distribution payment date under the Original Holdings and continuing through
and including January 15, 2010; provided, however, that such amounts shall be paid on the
first interest payment date under the New Indenture (January 30, 2010).

          (ix) Originally executed counterparts of the Operative Documents shall be delivered to
the parties thereto along with all opinions, certificates and other documents required
pursuant thereto and hereto.

     3. Conditions Precedent. The obligations of the parties under this Agreement are subject
to the following conditions precedent:

          (a) The representations and warranties contained herein shall be accurate as of the date of
delivery of the Securities.

          (b) Cahill Gordon & Reindel LLP, counsel for the Company (the “Company Counsel”), shall have
delivered an opinion, dated the Closing Date, addressed to each of the Taberna Entities (and the
initial transferee of the Securities by any such Taberna Entity) and to the New Indenture Trustee,
in substantially the form set out in Annex A hereto. In rendering its opinion, the Company
Counsel may rely as to factual matters upon certificates or other documents furnished by officers,
directors and trustees of the Company and by government officials; provided, however, that copies
of any such certificates or documents are delivered to the Taberna Entities) and by and upon such
other documents as such counsel may, in its reasonable opinion, deem appropriate as a basis for the
Company Counsel’s opinion. The Company Counsel may specify the jurisdictions in which it is
admitted to practice and that it is not admitted to practice in any other jurisdiction and is not
an expert in the law of any other jurisdiction. Such Company Counsel opinion shall not state that
it is to be governed or qualified by, or that it is otherwise subject to, any treatise, written
policy or other document relating to legal opinions, including, without limitation, the Legal
Opinion Accord of the ABA Section of Business Law (1991).

          (c) Taberna shall have been furnished the opinion of the general counsel of the Company, dated
as of the Closing Date, addressed to the Taberna Entities and the New Indenture Trustee (and the
initial transferee of the Securities by any such Taberna Entities) in substantially the form set
out in Annex B hereto.

          (d) Taberna shall have received the opinion of Richards, Layton & Finger, P.A., special
counsel for the New Indenture Trustee, dated as of the Closing Date, addressed to Taberna, in
substantially the form set out in Annex C hereto.

          (e) Taberna shall have been furnished the opinion of King & Spalding LLP, dated as of the
Closing Date, addressed to the Taberna Entities and the New Indenture Trustee, that for U.S.
federal income tax purposes the Securities more likely than not will constitute indebtedness of the
Company.

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          (f) The Company shall have furnished to the Taberna Entities a certificate of the Company,
signed by the Chief Executive Officer, President or an Executive Vice President, and Chief
Financial Officer, Treasurer or Assistant Treasurer of the Company, dated as of the Closing Date,
as to (i) and (ii) below:

          (i) the representations and warranties in this Agreement are true and correct on and as
of the Closing Date, and the Company has complied with all the agreements and satisfied all
the conditions on its part to be performed or satisfied at or prior to the Closing Date; and

          (ii) since the date of the latest Financial Statements, there has been no material
adverse change in the condition (financial or other), earnings, business or assets of the
Company and its subsidiaries, taken as a whole, whether or not arising from transactions
occurring in the ordinary course of business (a “Material Adverse Change”).

     If any of the conditions specified in this Section 3 shall not have been fulfilled
when and as provided in this Agreement, or if any of the opinions, certificates and documents
mentioned above or elsewhere in this Agreement shall not be reasonably satisfactory in form and
substance to Taberna or its counsel, this Agreement and any obligations of Taberna hereunder,
whether as holders of the Original Holdings or as prospective Holders of the Securities, may be
canceled at, or at any time prior to, the Closing Date by Taberna. Notice of such cancellation
shall be given to the Company in writing or by telephone and confirmed in writing, or by e-mail or
facsimile.

     Each certificate signed by any officer of the Company and delivered to Taberna or Taberna’s
counsel in connection with the Operative Documents and the transactions contemplated hereby and
thereby shall be deemed to be a representation and warranty of the Company and not by such officer
in any individual capacity.

     4. Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with the Taberna Entities, as holders of the Original Holdings and with the Holders
of the Securities, as follows:

          (a) It (i) is duly organized and validly existing under the laws of its jurisdiction of
organization or incorporation, (ii) is in good standing under such laws and (iii) has full power
and authority to execute, deliver and perform its obligations under this Agreement and the other
Operative Documents.

          (b) It is an “accredited investor” as defined in Rule 501 under the Securities Act. Without
characterizing the Original Holdings or any of the Taberna Transferred Rights as a “security”
within the meaning of applicable securities laws, it is not acquiring the Original Holdings or the
Taberna Transferred Rights with a view towards the sale or distribution thereof in violation of the
Securities Act.

          (c) Intentionally omitted.

          (d) The Company has no current intention to initiate any bankruptcy or insolvency proceedings.
The Company (i) has not entered into the Exchange or any Operative

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Documents with the actual intent to hinder, delay, or defraud any creditor and (ii) received
reasonably equivalent value in exchange for its obligations under the Operative Documents. The
Company does not intend to, and does not believe that it will, incur debt and liabilities
(including contingent liabilities and other commitments) beyond its ability to pay such debt and
liabilities as they mature.

          (e) It (i) is a sophisticated entity with respect to the Exchange, (ii) has such sufficient
knowledge and experience so as to be aware of the risks and uncertainties inherent in the Exchange
and (iii) has independently and without reliance upon Taberna, any Holder of the Securities,
Taberna Capital Management, LLC or New Indenture Trustee or any of their affiliates, and based on
such information as it has deemed appropriate, made its own analysis and decision to enter into
this Agreement, except that it has relied upon Taberna’s express representations, warranties,
covenants and agreements in this Agreement. The Company acknowledges that none of Taberna, any
Holders of the Securities, Taberna Capital Management, LLC or New Indenture Trustee or any of their
affiliates has given it any investment advice, credit information or opinion on whether the
Exchange is prudent.

          (f) It has not engaged any broker, finder or other entity acting under the authority of it or
any of its affiliates that is entitled to any broker’s commission or other fee in connection with
the transaction for which Taberna, any Holder, New Indenture Trustee or any of their affiliates
could be responsible.

          (g) No interest in the Taberna Transferred Rights is being acquired by or on behalf of an
entity that is one or more Benefit Plans.

          (h) Neither the Company nor any of its “Affiliates” (as defined in Rule 501(b) of Regulation D
(“Regulation D”) under the Securities Act), nor any person acting on its or their behalf, has,
directly or indirectly, made offers or sales of any security, or solicited offers to buy any
security, under circumstances that would require the registration of any of the Securities under
the Securities Act.

          (i) Neither the Company nor any of its Affiliates, nor any person acting on its or their
behalf, has engaged in any form of general solicitation or general advertising (within the meaning
of Regulation D) in connection with any offer or sale of any of the Securities.

          (j) The Securities (i) are not and have not been listed on a national securities exchange
registered under Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or quoted on a U.S. automated inter-dealer quotation system and (ii) are not of an open-end
investment company, unit investment trust or face-amount certificate company that are, or are
required to be, registered under Section 8 of the Investment Company Act of 1940, as amended (the
“Investment Company Act”), and the Securities otherwise satisfy the eligibility requirements of
Rule 144A(d)(3) promulgated pursuant to the Securities Act (“Rule 144A(d)(3)”).

          (k) Neither the Company nor any of its Affiliates, nor any person acting on its or their
behalf, has engaged, or will engage, in any “directed selling efforts” within the meaning of
Regulation S under the Securities Act with respect to the Securities.

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          (l) The Company is not, and immediately following consummation of the transactions
contemplated hereby, will not be, an “investment company” or an entity “controlled” by an
“investment company,” in each case within the meaning of Section 3(a) of the Investment Company
Act.

          (m) Each of this Agreement and the New Indenture and the consummation of the transactions
contemplated herein and therein have been duly authorized by the Company and, on the Closing Date,
will have been duly executed and delivered by the Company, and, assuming due authorization,
execution and delivery by Taberna and/or the New Indenture Trustee, as applicable, will be a legal,
valid and binding obligations of the Company enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally
and to general principles of equity.

          (n) The Securities have been duly authorized by the Company and, on the Closing Date, will
have been duly executed and delivered to the New Indenture Trustee for authentication in accordance
with the New Indenture and, when authenticated in the manner provided for in the New Indenture and
delivered to the Taberna Entities, will constitute legal, valid and binding obligations of the
Company entitled to the benefits of the New Indenture, enforceable against the Company in
accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors’ rights generally and to general principles of equity.

          (o) Neither the issue of the Securities and exchange of the Securities for the Original
Holdings, nor the execution and delivery of and compliance with the Operative Documents by the
Company, nor the consummation of the transactions contemplated herein or therein, (i) will conflict
with or constitute a violation or breach of (x) the charter or bylaws or similar organizational
documents of the Company or any subsidiary of the Company or (y) any applicable law, statute, rule,
regulation, judgment, order, writ or decree of any government, governmental authority, agency or
instrumentality or court, domestic or foreign, having jurisdiction over the Company or any of its
subsidiaries or their respective properties or assets (collectively, the “Governmental Entities”),
(ii) will conflict with or constitute a violation or breach of, or a default or Repayment Event (as
defined below) under, or result in the creation or imposition of any pledge, security interest,
claim, lien or other encumbrance of any kind (each, a “Lien”) upon any property or assets of the
Company or any if its subsidiaries pursuant to any contract, indenture, mortgage, loan agreement,
note, lease or other agreement or instrument to which (A) the Company or any of its subsidiaries is
a party or by which it or any of them may be bound, or (B) to which any of the property or assets
of any of them is subject, or any judgment, order or decree of any court, Governmental Entity or
arbitrator, except, in the case of clause (i)(y) or this clause (ii), for such conflicts, breaches,
violations, defaults, Repayment Events (as defined below) or Liens which (X) would not, singly or
in the aggregate, adversely affect the consummation of the transactions contemplated by the
Operative Documents and (Y) would not, singly or in the aggregate, have a Material Adverse Effect
or (iii) will require the consent, approval, authorization or order of any court or Governmental
Entity. As used herein, a “Repayment Event” means any event or condition which gives the holder of
any note, debenture or other evidence of indebtedness (or any person acting on such holder’s
behalf) the right to require the repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any of its subsidiaries prior to its scheduled maturity.

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          (p) The Company has all requisite power and authority to own, lease and operate its properties
and assets and conduct the business it transacts and proposes to transact, and is duly qualified to
transact business and is in good standing in each jurisdiction where the nature of its activities
requires such qualification, except where the failure of the Company to be so qualified would not,
singly or in the aggregate, have a Material Adverse Effect.

          (q) The Company has no subsidiaries that are material to its business, financial condition or
earnings, other than those Significant Subsidiaries listed in Schedule 1 attached hereto
(which Schedule 1 includes each of the Company’s “significant subsidiaries” as defined in
Regulation S-X promulgated by the Commission) (collectively, the “Significant Subsidiaries”). Each
Significant Subsidiary is a corporation, partnership or limited liability company duly and properly
incorporated or organized or formed, as the case may be, validly existing and in good standing
under the laws of the jurisdiction in which it is chartered or organized or formed, with all
requisite power and authority to own, lease and operate its properties and conduct the business it
transacts. Each Significant Subsidiary is duly qualified to transact business as a foreign
corporation, partnership or limited liability company, as applicable, and is in good standing in
each jurisdiction where the nature of its activities requires such qualification, except where the
failure to be so qualified would not, singly or in the aggregate, have a Material Adverse Effect.

          (r) The Company and each of the Company’s Significant Subsidiaries hold all necessary
approvals, authorizations, orders, licenses, consents, registrations, qualifications, certificates
and permits (collectively, the “Governmental Licenses”) of and from Governmental Entities necessary
to conduct their respective businesses as now being conducted, and neither the Company nor any of
its Significant Subsidiaries has received any notice of proceedings relating to the revocation or
modification of any such Government License, except where the failure to be so licensed or approved
or the receipt of an unfavorable decision, ruling or finding, would not, singly or in the
aggregate, have a Material Adverse Effect; all of the Governmental Licenses are valid and in full
force and effect, except where the invalidity or the failure of such Governmental Licenses to be in
full force and effect, would not, singly or in the aggregate, have a Material Adverse Effect; and
the Company and its subsidiaries are in compliance with all applicable laws, rules, regulations,
judgments, orders, decrees and consents, except where the failure to be in compliance would not,
singly or in the aggregate, have a Material Adverse Effect.

          (s) All of the issued and outstanding Equity Interests of the Company and each of its
subsidiaries are validly issued, fully paid and non-assessable; all of the issued and outstanding
Equity Interests of each subsidiary of the Company, to the extent owned by the Company, is owned by
the Company, directly or through subsidiaries; and none of the issued and outstanding Equity
Interests of the Company or any subsidiary was issued in violation of any preemptive or similar
rights arising by operation of law, under the charter or by-laws of such entity or under any
agreement to which the Company or any of its subsidiaries is a party.

          (t) Neither the Company nor any of its subsidiaries is (i) in violation of its respective
charter or by-laws or similar organizational documents or (ii) in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease or other agreement or instrument to which the
Company or any such subsidiary is a party or by which it or any of them may be

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bound or to which any of the property or assets of any of them is subject, except, in the case
of clause (ii), where such violation or default would not, singly or in the aggregate, have a
Material Adverse Effect.

          (u) Except as disclosed in the Form 10-K, there is no action, suit or proceeding before or by
any Governmental Entity, arbitrator or court, domestic or foreign, now pending or, to the knowledge
of the Company, threatened against or affecting the Company or any of its subsidiaries, except for
such actions, suits or proceedings that, if adversely determined, would not, singly or in the
aggregate, adversely affect the consummation of the transactions contemplated by the Operative
Documents or have a Material Adverse Effect; and, except as disclosed in the Form 10-K, the
aggregate of all pending legal or governmental proceedings to which the Company or any of its
subsidiaries is a party or of which any of their respective properties or assets is subject,
including ordinary routine litigation incidental to the business, are not expected to result in a
Material Adverse Effect.

          (v) The accountants of the Company who certified the Financial Statements (defined below) are
independent public accountants of the Company and its subsidiaries within the meaning of the
Securities Act, and the rules and regulations of the Securities and Exchange Commission (the
“Commission”) thereunder.

          (w) The audited consolidated financial statements (including the notes thereto) and schedules
of the Company and its consolidated subsidiaries for the fiscal year ended September 30, 2009, (the
“Financial Statements”) provided to Taberna are the most recent available audited consolidated
financial statements of the Company and its consolidated subsidiaries and fairly present in all
material respects, in accordance with U.S. generally accepted accounting principles (“GAAP”), the
financial position of the Company and its consolidated subsidiaries, and the results of operations
and changes in financial condition as of the dates and for the periods therein specified. Such
consolidated financial statements and schedules have been prepared in accordance with GAAP
consistently applied throughout the periods involved (except as otherwise noted therein).

          (x) Neither the Company nor any of its subsidiaries has any material liability, whether
asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether
liquidated or unliquidated, and whether due or to become due, including any liability for taxes
(and there is no past or present fact, situation, circumstance, condition or other basis for any
present or future action, suit, proceeding, hearing, charge, complaint, claim or demand against the
Company or any of its subsidiaries that could give rise to any such liability), except for
(i) liabilities set forth in the Financial Statements or in the Form 10-K and (ii) normal
fluctuations in the amount of the liabilities referred to in clause (i) above occurring in the
ordinary course of business of the Company and all of its subsidiaries since the date of the most
recent balance sheet included in such Financial Statements.

          (y) Since September 30, 2009, there has not been (A) any Material Adverse Change or (B) any
dividend or distribution of any kind declared, paid or made by the Company on any class of its
Equity Interests.

- 12 -

 

          (z) The documents of the Company filed with the Commission in accordance with the Exchange
Act, from and including October 1, 2008, at the time they were or hereafter are filed by the
Company with the Commission (collectively, the “1934 Act Reports”), complied and will comply in all
material respects with the requirements of the Exchange Act and the rules and regulations of the
Commission thereunder (the “1934 Act Regulations”), and, at the date of this Exchange Agreement and
on the Closing Date, do not and will not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading; and other than such
instruments, agreements, contracts and other documents as are filed as exhibits to the Company’s
Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, there are no instruments,
agreements, contracts or documents of a character described in Item 601 of Regulation S-K
promulgated by the Commission to which the Company or any of its subsidiaries is a party that are
required to be so filed. Except as set forth in the Form 10-K, the Company is in compliance in all
material respects with all currently applicable requirements of the Exchange Act that were added by
the Sarbanes-Oxley Act of 2002.

          (aa) No labor dispute with the employees of the Company or any of its subsidiaries exists or,
to the knowledge of the Company, is imminent, except those which would not, singly or in the
aggregate, have a Material Adverse Effect.

          (bb) No filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any Governmental Entity, other than those that have been made or
obtained, is necessary or required for the performance by the Company of its obligations under the
Operative Documents or the consummation by the Company of the transactions contemplated by the
Operative Documents.

          (cc) The Company and each of its subsidiaries has good and marketable title to all of its
respective real and personal property, in each case free and clear of all Liens and defects, except
for those securing debt or those that would not, singly or in the aggregate, have a Material
Adverse Effect; and all of the leases and subleases under which the Company or any of its
subsidiaries holds properties are in full force and effect, except where the failure of such leases
and subleases to be in full force and effect would not, singly or in the aggregate, have a Material
Adverse Effect, and neither the Company nor any of its subsidiaries has any notice of any claim of
any sort that has been asserted by anyone adverse to the rights of the Company or any Significant
Subsidiary under any such leases or subleases, or affecting or questioning the rights of such
entity to the continued possession of the leased or subleased premises under any such lease or
sublease, except for such claims that would not, singly or in the aggregate, have a Material
Adverse Effect.

          (dd) The Company and each Significant Subsidiary has timely and duly filed (or filed
extensions thereof (and which extensions are presently in effect)) all Tax Returns (as defined
below) required to be filed by them, and all such Tax Returns are true, correct and complete except
for such failures to timely file or inaccuracies that would not singularly or in the aggregate,
have a Material Adverse Effect. The Company and each Significant Subsidiary has timely and duly
paid in full all material Taxes (as defined below) required to be paid by them (whether or not such
amounts are shown as due on any Tax Return). There are no material

- 13 -

 

federal, state, or other Tax audits or deficiency assessments proposed or pending with respect
to the Company or and Significant Subsidiary, and no such audits or assessments are threatened. As
used herein, the terms “Tax” or “Taxes” mean (i) all federal, state, local, and foreign taxes, and
other assessments of a similar nature (whether imposed directly or through withholding), including
any interest, additions to tax, or penalties applicable thereto, imposed by any Governmental
Entity, and (ii) all liabilities in respect of such amounts arising as a result of being a member
of any affiliated, consolidated, combined, unitary or similar group, as a successor to another
person or by contract. As used herein, the term “Tax Returns” means all federal, state, local, and
foreign Tax returns, declarations, statements, reports, schedules, forms, and information returns
and any amendments thereto filed or required to be filed with any Governmental Entity.

          (ee) Interest payable by the Company on the Securities is deductible by the Company for United
Stated Federal income Tax purposes.

          (ff) The books, records and accounts of the Company and its Significant Subsidiaries
accurately and fairly reflect, in all material respects and in reasonable detail, the transactions
in, and dispositions of, the assets of, and the results of operations of, the Company and its
Significant Subsidiaries. The Company and each of its subsidiaries maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in accordance with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.

          (gg) The Company and its Significant Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts in all material respects
as are customary in the businesses in which they are engaged. All policies of insurance and
fidelity or surety bonds insuring the Company or any of its Significant Subsidiaries’ respective
businesses, assets, employees, officers and directors are in full force and effect. The Company
and each of the Significant Subsidiaries are in compliance with the terms of such policies and
instruments in all material respects. Neither the Company nor any Significant Subsidiary has reason
to believe that it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not have a Material Adverse Effect.

          (hh) Neither the Company and its Significant Subsidiaries, nor, to the knowledge of the
Company, any person acting on behalf of the Company and/or its Significant Subsidiaries including,
without limitation, any director, officer, manager, agent or employee of the Company or its
Significant Subsidiaries has, directly or indirectly, while acting on behalf of the Company and/or
its Significant Subsidiaries (i) used any corporate, partnership or company funds for unlawful
contributions, gifts, entertainment or other unlawful expenses relating to political activity; (ii)
made any unlawful payment to foreign or domestic government officials or employees or to foreign or
domestic political parties or campaigns from corporate, partnership or

- 14 -

 

company funds; (iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as
amended; or (iv) made any other unlawful payment.

          (ii) The information provided by the Company pursuant to the Operative Documents does not, as
of the date hereof, and will not as of the Closing Date, contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

          (jj) Except as would not, individually or in the aggregate, result in a Material Adverse
Effect or as disclosed in the Form 10-K, (i) the Company and its subsidiaries have been and are in
material compliance with applicable Environmental Laws (as defined below), (ii) none of the
Company, any of its subsidiaries or, to the best of the Company’s knowledge, (a) any other owners
of any of the real properties currently or previously owned, leased or operated by the Company or
any of its Significant Subsidiaries (collectively, the “Properties”) at any time or any other
party, has at any time released (as such term is defined in CERCLA (as defined below)) or otherwise
disposed of Hazardous Materials (as defined below) on, to, in, under or from the Properties other
than in compliance with all applicable Environmental Laws, (iii) neither the Company nor any of its
subsidiaries has used nor intends to use the Properties or any subsequently acquired properties,
other than in compliance with applicable Environmental Laws, (iv) neither the Company nor any of
its subsidiaries has received any written notice of, or have any knowledge of any occurrence or
circumstance which, with notice or passage of time or both, would give rise to a claim under or
pursuant to any Environmental Law with respect to the Properties, or their respective assets or
arising out of the conduct of the Company or its subsidiaries, (v) none of the Properties are
included or, to the best knowledge of the Company, proposed for inclusion on the National
Priorities List issued pursuant to CERCLA by the United States Environmental Protection Agency or,
to the best of the Company’s knowledge, proposed for inclusion on any similar list or inventory
issued pursuant to any other Environmental Law or issued by any other Governmental Entity, (vi)
none of the Company, any of its subsidiaries or agents or, to the best of the Company’s knowledge,
any other person or entity for whose conduct any of them is or may reasonably likely to be held
responsible, has generated, manufactured, refined, transported, treated, stored, handled, disposed,
transferred, produced or processed any Hazardous Material at any of the Properties, except in
compliance with all applicable Environmental Laws, and has not transported or arranged for the
transport of any Hazardous Material from the Properties to another property, except in compliance
with all applicable Environmental Laws, (vii) to the Company’s knowledge, no lien has been imposed
on the Properties by any Governmental Entity in connection with the presence on or off such
Property of any Hazardous Material or with respect to an Environmental Law, and (viii) none of the
Company, any of its Significant Subsidiaries or, to the best knowledge of the Company, any other
person or entity for whose conduct any of them is or may reasonably likely to be held responsible,
has entered into or been subject to any consent decree, compliance order, or administrative order
in connection with an Environmental Law with respect to the Properties or any facilities or
improvements or any operations or activities thereon.

          (kk) As used herein, “Hazardous Materials” shall include, without limitation, any flammable
materials, explosives, radioactive materials, hazardous materials, hazardous substances, hazardous
wastes, toxic substances or related materials, asbestos, petroleum,

- 15 -

 

petroleum products and any hazardous material as defined by any federal, state or local
environmental law, statute, ordinance, rule or regulation, including, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42
U.S.C. §§ 9601-9675 (“CERCLA”), the Hazardous Materials Transportation Act, as amended, 49 U.S.C.
§§ 5101-5127, the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §§ 6901-6992k, the
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001-11050, the Toxic
Substances Control Act, 15 U.S.C. §§ 2601-2692, the Federal Insecticide, Fungicide and Rodenticide
Act, 7 U.S.C. §§ 136-136y, the Clean Air Act, 42 U.S.C. §§ 7401-7642, the Clean Water Act (Federal
Water Pollution Control Act), 33 U.S.C. §§ 1251-1387, the Safe Drinking Water Act, 42 U.S.C.
§§ 300f-300j-26, and the Occupational Safety and Health Act, 29 U.S.C. §§ 651-678, and any
analogous state laws, as any of the above may be amended from time to time and in the regulations
promulgated pursuant to each of the foregoing (including environmental statutes and laws not
specifically defined herein) (individually, an “Environmental Law” and collectively, the
“Environmental Laws”) or by any Governmental Entity.

     5. Representations and Warranties of Taberna. Each Taberna Entity, for itself,
represents and warrants to, and agrees with, the Company as follows:

          (a) It is a company duly formed, validly existing and in good standing under the laws of the
jurisdiction in which it is organized with all requisite (i) power and authority to execute,
deliver and perform under the Operative Documents to which it is a party, to make the
representations and warranties specified herein and therein and to consummate the transactions
contemplated in the Operative Documents.

          (b) This Agreement and the consummation of the transactions contemplated herein has been duly
authorized by it and, on the Closing Date, will have been duly executed and delivered by it and,
assuming due authorization, execution and delivery by the Company and the New Indenture Trustee of
the Operative Documents to which each is a party, will be a legal, valid and binding obligation of
such Taberna Entity, enforceable against such Taberna Entity in accordance with its terms, subject
to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to
general principles of equity.

          (c) No filing with, or authorization, approval, consent, license, order registration,
qualification or decree of, any Governmental Entity or any other Person, other than those that have
been made or obtained, is necessary or required for the performance by such Taberna Entity of its
obligations under this Agreement or to consummate the transactions contemplated herein.

          (d) It is a “Qualified Holder” as such term is defined in Section 2(a)(51) of the Investment
Company Act.

          (e) Taberna V, Taberna VII and Taberna VIII are the legal and beneficial owners of the
Original Holdings and the related Taberna Transferred Rights and shall deliver the Original
Holdings and the related Taberna Transferred Rights free and clear of any Lien created by such
Taberna Entities.

- 16 -

 

          (f) Intentionally Omitted.

          (g) Intentionally Omitted.

          (h) Intentionally Omitted.

          (i) There is no action, suit or proceeding before or by any Governmental Entity, arbitrator or
court, domestic or foreign, now pending or, to its knowledge, threatened against or affecting it,
except for such actions, suits or proceedings that, if adversely determined, would not, singly or
in the aggregate, adversely affect the consummation of the transactions contemplated by the
Operative Documents.

          (j) The outstanding principal amount of its respective Original Holdings is the face amount as
set forth in such Original Holdings.

          (k) It is aware that the Securities have not been and will not be registered under the
Securities Act and may not be offered or sold within the United States or to “U.S. persons” (as
defined in Regulation S under the Securities Act) except in accordance with Rule 903 of Regulation
S under the Securities Act or pursuant to an exemption from the registration requirements of the
Securities Act.

          (l) It is an “accredited investor,” as such term is defined in Rule 501(a) of Regulation D
under the Securities Act. Without characterizing the Original Holdings or the Taberna Transferred
Rights as a “security” within the meaning of applicable securities laws, it has not made any offers
to sell, or solicitations of any offers to buy, all or any portion of the Original Holdings or
Taberna Transferred Rights in violation of any applicable securities laws.

          (m) Neither it nor any of its Affiliates, nor any person acting on its or its Affiliate’s
behalf has engaged, or will engage, any form of “general solicitation or general advertising”
(within the meaning of Regulation D under the Securities Act) in connection with any offer or sale
of the Securities.

          (n) It understands and acknowledges that (i) no public market exists for any of the Securities
and that it is unlikely that a public market will ever exist for the Securities, (ii) it is
acquiring the Securities for its own account, for investment and not with a view to, or for offer
or sale in connection with, any distribution thereof in violation of the Securities Act or other
applicable securities laws, subject to any requirement of law that the disposition of its property
be at all times within its control and subject to its ability to resell such Securities pursuant to
an effective registration statement under the Securities Act or pursuant to an exemption therefrom
or in a transaction not subject thereto, and it agrees to the legends and transfer restrictions
applicable to the Securities contained in the New Indenture, and (iii) it has had the opportunity
to ask questions of, and receive answers and request additional information from, the Company and
is aware that it may be required to bear the economic risk of an investment in the Securities.

          (o) It has not engaged any broker, finder or other entity (other than Taberna Capital
Management, LLC) acting under its authority that is entitled to any broker’s commission or other
fee in connection with this Agreement and the consummation of transactions

- 17 -

 

contemplated in this Agreement and the New Indenture for which the Company could be
responsible.

          (p) It (i) is a sophisticated entity with respect to the Exchange, (ii) has such knowledge and
experience, and has made investments of a similar nature, so as to be aware of the risks and
uncertainties inherent in the Exchange and (iii) has independently and without reliance upon the
Company or any of their affiliates, and based on such information as it has deemed appropriate,
made its own analysis and decision to enter into this Agreement, except that it has relied upon the
Company’s express representations, warranties, covenants and agreements in the Operative Documents
and the other documents delivered by the Company in connection therewith.

     Except as expressly stated in this Agreement, Taberna makes no representations or warranties,
express or implied, with respect to the Exchange, the Taberna Transferred Rights, the Original
Holdings, the Existing Indenture, or any other matter.

     6. Covenants and Agreements of the Company. The Company agrees with the Taberna Entities
and the Holders as follows:

          (a) The Company will arrange (at Taberna’s sole cost and expense) for the qualification of the
Securities for sale under the laws of such jurisdictions as the Holders of not less than a majority
in principal amount of the Outstanding Securities may designate and will maintain such
qualifications in effect so long as required for the sale of the Securities. The Company will
promptly advise the Holders of the Securities of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose.

          (b) Intentionally Omitted.

          (c) Intentionally Omitted.

          (d) The Company will not, and will not permit any of its Affiliates or any person acting on
its or their behalf to, directly or indirectly, make offers or sales of any security, or solicit
offers to buy any security, under circumstances that would require the registration of any of the
Securities under the Securities Act.

          (e) The Company will not, and will not permit any of its Affiliates or any person acting on
its or their behalf to, engage in (i) any form of “general solicitation or general advertising”
(within the meaning of Regulation D), or (ii) any “directed selling efforts” within the meaning of
Regulation S under the Securities Act, in connection with any offer or sale of the any of the
Securities.

          (f) So long as any of the Securities are outstanding, (i) the Securities shall not be listed
on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a
U.S. automated inter-dealer quotation system and (ii) the Company shall not be an open-end
investment company, unit investment trust or face-amount certificate company that is, or is
required to be, registered under Section 8 of the Investment Company Act, and, the Securities shall
otherwise satisfy the eligibility requirements of Rule 144A(d)(3).

- 18 -

 

          (g) The Company will, during any period in which it is not subject to and in compliance with
Section 13 or 15(d) of the Exchange Act, or it is not exempt from such reporting requirements
pursuant to and in compliance with Rule 12g3-2(b) under the Exchange Act, provide to each Holder of
the Securities, upon the request of such Holder, any information required to be provided by
Rule 144A(d)(4) under the Securities Act. If the Company is required to register under the
Exchange Act, such reports filed in compliance with Rule 12g3-2(b) shall be sufficient information
as required above. This covenant is intended to be for the benefit of the Holders of the
Securities.

          (h) The Company will not identify any of the Indemnified Parties (as defined below) in a press
release or any other public statement made in connection with the Exchange without the consent of
such Indemnified Party (it being understood that the filing of any of the Operative Documents with
the Commission shall not be considered a public statement).

     7. Payment of Expenses. Without duplication of the obligations agreed to by the Company
under Section 2(b)(vii) herein, the Company agrees to pay all costs and expenses incident to the
performance of the obligations of the Company under this Agreement, whether or not the transactions
contemplated herein are consummated or this Agreement is terminated, including all costs and
expenses incident to (i) the authorization, issuance, sale and delivery of the Securities and any
taxes payable in connection therewith; (ii) the fees and expenses of counsel, accountants and any
other experts or advisors retained by the Company; and (iv) the fees and all reasonable expenses of
the New Indenture Trustee and any other trustee or paying agent appointed under the Operative
Documents, including the fees and disbursements of counsel for such trustees. The fees of the New
Indenture Trustee (excluding fees and disbursements of counsel) shall not exceed the amounts set
forth in that certain Fee Agreement dated as of the date hereof between the Company and Wilmington
Trust Company, executed in connection with this Agreement and the New Indenture.

     8. Indemnification. (a) The Company agrees to indemnify and hold harmless Wilmington
Trust Company, the Taberna Entities, the Holders, Taberna Capital Management, LLC, Taberna
Securities, LLC, and their respective affiliates and their successors and assigns (collectively,
the “Indemnified Parties”), each person, if any, who controls any of the Indemnified Parties within
the meaning of the Securities Act or the Exchange Act, and the Indemnified Parties’ respective
directors, officers, employees and agents against any and all losses, claims, damages or
liabilities, joint or several, to which the Indemnified Parties may become subject, under the
Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based on (i) any untrue statement or alleged untrue statement of a
material fact contained in any information or documents provided by or on behalf of the Company to
the Indemnified Parties, (ii) any omission or alleged omission to state a material fact required to
be stated or necessary to make the statements contained in any information provided by the Company,
in light of the circumstances under which they were made, not misleading, or (iii) the breach or
alleged breach of any representation, warranty, or agreement of the Company contained herein, or
(iv) the execution and delivery by the Company of the Operative Documents and the consummation of
the transactions contemplated herein and therein, and agrees to reimburse each such Indemnified
Party, as incurred, for any legal or other expenses reasonably incurred by the Indemnified Parties
in connection with investigating or

- 19 -

 

defending
any such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any
liability that the Company may otherwise have.

          (b) Promptly after receipt by an Indemnified Party under this Section 8 of notice of the
commencement of any action, such Indemnified Party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 8, promptly notify the indemnifying party in
writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will
not relieve the indemnifying party from liability under paragraph (a) above unless and to the
extent that such failure results in the forfeiture by the indemnifying party of material rights and
defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to
any Indemnified Party other than the indemnification obligation provided in paragraph (a) above.
The Indemnified Parties shall be entitled to appoint counsel to represent the Indemnified Parties
in any action for which indemnification is sought. An indemnifying party may participate at its
own expense in the defense of any such action; provided, that counsel to the indemnifying party
shall not (except with the consent of the Indemnified Party) also be counsel to the Indemnified
Party. In no event shall the indemnifying parties be liable for fees and expenses of more than one
counsel (in addition to any local counsel) separate from their own counsel for all Indemnified
Parties in connection with any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances, unless an Indemnified
Party elects to engage separate counsel because such Indemnified Party reasonably believes that a
conflict of interest might result. An indemnifying party will not, without the prior written
consent of the Indemnified Parties, settle or compromise or consent to the entry of any judgment
with respect to any pending or threatened claim, action, suit or proceeding in respect of which
indemnification may be sought hereunder (whether or not the Indemnified Parties are actual or
potential parties to such claim, action, suit or proceeding) unless such settlement, compromise or
consent includes an unconditional release of each Indemnified Party from all liability arising out
of such claim, action, suit or proceeding.

     9. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company and/or its officers
set forth in or made pursuant to this Agreement will remain in full force and effect and will
survive the Exchange. The provisions of Sections 7 and 8 shall survive the termination or
cancellation of this Agreement.

     10. Amendments. This Agreement may not be modified, amended, altered or supplemented,
except upon the execution and delivery of a written agreement by each of the parties hereto.

     11. Notices. All communications hereunder will be in writing and effective only on
receipt, and will be mailed, delivered by hand or courier or sent by facsimile and confirmed or by
any other reasonable means of communication, including by electronic mail, to the relevant party at
its address specified in Exhibit C.

     12. Successors and Assigns. This Agreement will inure to the benefit of and be binding
upon the parties hereto and their respective successors and permitted assigns. Nothing expressed
or mentioned in this Agreement is intended or shall be construed to give any person other than the
parties hereto and the affiliates, directors, officers, employees, agents and

- 20 -

 

controlling persons
referred to in Section 8 hereof and their successors, assigns, heirs and legal representatives, any
right or obligation hereunder. None of the rights or obligations of the Company under this
Agreement may be assigned, whether by operation of law or otherwise, without Taberna’s prior
written consent. The rights and obligations of Taberna under this Agreement may be assigned by
Taberna without the Company’s consent; provided, that the assignee assumes the obligations of
Taberna under this Agreement.

     13. Applicable Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF
LAW (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

     14. Submission to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY
HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS AGREEMENT MAY BE BROUGHT IN OR REMOVED TO THE
COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF
AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN).
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF
APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

     15. Counterparts and Facsimile. This Agreement may be executed by any one or more of the
parties hereto in any number of counterparts, each of which shall be deemed to be an original, but
all such counterparts shall together constitute one and the same instrument. This Agreement may be
executed by any one or more of the parties hereto by facsimile.

     16. Entire Agreement. This Agreement constitutes the entire agreement of the parties to
this Agreement and supercedes all prior written or oral and all contemporaneous oral agreements,
understandings and negotiations with respect to the subject matter hereof.

[Signature Page Follows]

- 21 -

 

     IN WITNESS WHEREOF, this Agreement has been entered into as of the date first written above.

	 	 	 	 	 
	 	BEAZER HOMES USA, INC., a Delaware corporation

 	 
	 	By:  	/s/
Kenneth Khoury 	 
	 	 	Name:  	Kenneth Khoury 	 
	 	 	Title:  	EVP and GC 	 
	 

(Signatures continue on the next page)

- 22 -

 

TABERNA, AS HOLDERS OF THE ORIGINAL SECURITIES AND AS HOLDERS (AS

DEFINED IN THE NEW INDENTURE):

	 	 	 	 	 
	 	TABERNA PREFERRED FUNDING V LTD.

 	 
	 	By:  	/s/
Mora Goddard 	 
	 	 	Name:  	Mora Goddard 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	TABERNA PREFERRED FUNDING VII, LTD.

 	 
	 	By:  	/s/
Mora Goddard 	 
	 	 	Name:  	Mora Goddard 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	TABERNA PREFERRED FUNDING VIII, LTD.

 	 
	 	By:  	/s/
Mora Goddard 	 
	 	 	Name:  	Mora Goddard 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Exchange Agreement]

- 23 -

 

EXHIBIT A

Reserved

A-1

 

EXHIBIT B-1

Copy of Note 1

B-1

 

EXHIBIT B-2

Copy of Note 2

B-2

 

EXHIBIT B-3

Copy of Note 3

B-3

 

EXHIBIT C

Notice Information

Taberna:

c/o Taberna Capital Management, LLC

450 Park Avenue, 11th Floor

New York, NY 10022

Attention: Mr. Raphael Licht

Facsimile: (212) 243-9039

e-mail: rlicht@raitft.com

Company:

Beazer Homes USA, Inc.

1000 Abernathy Road, Suite 1200

Atlanta, GA 30328

Attention: Mr. Kenneth Khoury

Facsimile: (770)-481-2808

e-mail: kkhoury@beazer.com

with a copy to

Cahill Gordon & Reindel LLP

80 Pine Street

New York, NY 10005

Attention: Mr. Michael Sherman

Facsimile: (212) 378-2598

e-mail: msherman@cahill.com

C-1

 

SCHEDULE 1

List of Significant Subsidiaries

Sch. 1-1

 

ANNEX A

     Pursuant to Section 3(b) of the Agreement, Cahill Gordon & Reindel LLP, counsel for the
Company, shall deliver an opinion to the effect that:

     (i) the Company (A) is validly existing as a corporation in good standing under the
laws of the State of Delaware; (B) has full power and authority to own or lease its
properties and to conduct its business as such business is currently conducted in all
material respects; and (C) has power and authority to (x) execute and deliver, and to
perform its obligations under, the Operative Documents to which it is a party and (y) issue
and perform its obligations under the Securities and the New Indenture;

     (ii) reserved;

     (iii) reserved;

     (iv) none of (a) the issue of the Securities, (b) the Exchange, (c) the execution and
delivery of and compliance with the Operative Documents by the Company or the consummation
of the transactions contemplated thereby will constitute a breach or violation of the
charter or by-laws of the Company;

     (v) the New Indenture has been duly authorized, executed and delivered by the Company
and, assuming the New Indenture has been duly authorized, executed and delivered by the New
Indenture Trustee, constitute the valid and legally binding obligation of the Company
enforceable against the Company in accordance with its terms, except that the enforcement
thereof is subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance and
transfer acts, moratorium or other laws affecting creditor’s rights generally; (ii) judicial
discretion and general principles of equity (regardless of whether considered in a
proceeding in equity or at law), including, without limitation, principles that (a) include
a requirement that a creditor act with reasonableness and in good faith and deal fairly with
its debtors, (b) limit a creditor’s right to accelerate maturity of a debt upon the
occurrence of a default deemed immaterial, or (c) might render certain waivers
unenforceable, and we wish to advise you that the remedy of specific performance or
injunctive relief (whether considered in a proceeding in equity or at law) is subject to the
exercise of judicial discretion; and (iii) federal and state securities laws and the public
policies underlying such laws (collectively, the “Enforceability Exceptions”);

     (vi) the Securities have been duly authorized and executed by the Company and delivered
to the New Indenture Trustee for authentication in accordance with the New Indenture and,
when authenticated in accordance with the provisions of the New Indenture, will constitute
the valid and legally binding obligations of the Company entitled to the benefits of the New
Indenture and enforceable against the Company in accordance with their terms, except that
the enforcement thereof is subject to the Enforceability Exceptions;

Annex A-1

 

     (vii) assuming the truth and accuracy of the representations and warranties of Taberna
in the Exchange Agreement, it is not necessary in connection with the exchange of the
Securities to register the same under the Securities Act of 1933, as amended, under the
circumstances contemplated in the Exchange Agreement, or to require qualification of the New
Indenture under the Trust Indenture Act of 1939, as amended;

     (viii) the Exchange Agreement has been duly authorized, executed and delivered by the
Company and constitutes a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except that the enforcement thereof is
subject to the Enforceability Exceptions;

     (ix) the execution, delivery and performance of the Operative Documents and the
consummation of the transactions contemplated by the Exchange Agreement and the Operative
Documents do not and will not result in a breach or violation of or constitute a default
under (nor constitute any event which with notice, lapse of time, or both, would constitute
a breach of or default under), any provisions of (i) the charter, by-laws, limited liability
company agreement, partnership agreement, operating agreement or other constitutive
documents of the Company, (ii) any provisions of any Applicable Contract (except that in
making such determination under clause (ii) above, we may rely upon the mathematical
calculation provided by management of the Company with respect to financial covenants,
ratios or financial tests or any aspect of the financial condition or results of operations
of the Company or any of its subsidiaries without any obligation of independent
investigation as to the calculation or determination of the components included in any such
calculation or determination), (iii) any Applicable Law or (iv) to our knowledge, any
judgment, order or decree applicable to the Company or any of its subsidiaries of any
Governmental Authority , which, in the case of clause (ii) or (iii), breach or default could
reasonably be expected to have a Material Adverse Effect; and

     (x) except for filings, registrations or qualifications that may be required by applicable
securities laws, no authorization, approval, consent or order of, or filing, registration or
qualification with, any Governmental Authority is required in connection with the consummation of
the transactions contemplated in the Operative Documents.

Annex A-2

 

ANNEX B

     Pursuant to Section 3(c) of the Agreement, the general counsel of the Company shall deliver an
opinion to the effect that:

     (i) to our knowledge, neither the Company nor any of its “Affiliates” (as defined in
Rule 501(b) of Regulation D under the Securities Act (“Regulation D”) has directly or
indirectly, made offers or sales of any security, or solicited offers to buy any security,
under circumstances that would require the registration of any of the Securities being
issued pursuant to the Exchange under the Securities Act, engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D) in connection with
any offer or sale of any of the Securities, or engaged, nor will engage, in any “directed
selling efforts” within the meaning of Regulation S under the Securities Act with respect to
the Securities;

     (ii) to our knowledge, neither the Company nor any Significant Subsidiary of the
Company is in breach or violation of, or default under, with or without notice or lapse of
time or both, its articles of incorporation or charter, by-laws or other governing
documents;

     (iii) to our knowledge, and except as disclosed in the Form 10-K, (A) no action, suit
or proceeding at law or in equity is pending or threatened to which the Company or any
Significant Subsidiary of the Company is or may be a party, and (B) no action, suit or
proceeding is pending or threatened against or affecting the Company or any Significant
Subsidiary of the Company or any of their properties, before or by any court or governmental
official, commission, board or other administrative agency, authority or body, or any
arbitrator, wherein, in the case of each (A) and (B) above, an unfavorable decision, ruling
or finding could reasonably be expected to have a Material Adverse Effect on the
consummation of the transactions contemplated by the Operative Documents or the performance
by the Company of its obligations under the Operative Documents, including, but not limited
to, the issuance and delivery of the Securities and/or the exchange of the Original Holdings
for the Securities as contemplated therein or the condition (financial or otherwise),
earnings, affairs, business, or results of operations of the Company and its Significant
Subsidiaries on a consolidated basis.

Annex B-1

 

ANNEX C

     Pursuant to Section 3(d) of the Agreement, Richards, Layton & Finger, P.A., special counsel
for the New Indenture Trustee, shall deliver an opinion to the effect that:

     (i) Wilmington Trust Company (the “Bank”) is a Delaware banking corporation with trust
powers, duly and validly existing under the laws of the State of Delaware, with corporate
power and authority to execute, deliver and perform its obligations under the New Indenture
and to authenticate and deliver the Securities, and is duly eligible and qualified to act as
Trustee under the New Indenture pursuant to Section 6.1 thereof.

     (ii) The New Indenture has been duly authorized, executed and delivered by the Bank. To
the extent the New Indenture is enforceable under the law governing it, the New Indenture
constitutes the valid and binding obligation of the Bank, enforceable against it in
accordance with its terms except (A) as may be limited by bankruptcy, fraudulent conveyance,
fraudulent transfer, insolvency, reorganization, liquidation, receivership, moratorium or
other similar laws now or hereafter in effect relating to creditors’ rights generally, and
by general equitable principles, regardless of whether considered in a proceeding in equity
or at law and (B) that the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

     (iii) Neither the execution or delivery by the Bank of the New Indenture, the
authentication and delivery of the Securities pursuant to the terms of the New Indenture,
nor the performance by the Bank of its obligations under the New Indenture (A) requires the
consent or approval of, the giving of notice to or the registration or filing with, any
governmental authority or agency under the laws of the State of Delaware and the United
States of America governing the trust powers of the Bank or (B) violates the Certificate of
Incorporation or By-laws of the Bank or any law or regulation of the State of Delaware or
the United States of America governing the trust powers of the Bank.

     (iv) The Securities have been authenticated by a duly authorized officer of the Bank.

     In rendering such opinion, such counsel may (A) state that its opinion governing the trust
powers of the Bank is limited to the laws of the State of Delaware and the laws of the United
States of America, (B) rely as to matters of fact, to the extent deemed proper, on certificates of
responsible officers of the Bank, the Company and public officials, and (C) make customary
assumptions and exceptions as to enforceability and other matters.

Annex C-1exv10w2

Exhibit 10.2

Execution Version

JUNIOR SUBORDINATED INDENTURE

between

BEAZER HOMES USA, INC.

and

WILMINGTON TRUST COMPANY,

as Trustee

 

Dated as of January 15, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	 
	SECTION 1.1. Definitions
	 	 	1	 
	 
	SECTION 1.2. Compliance Certificate and Opinions
	 	 	9	 
	 
	SECTION 1.3. Forms of Documents Delivered to Trustee
	 	 	9	 
	 
	SECTION 1.4. Acts of Holders
	 	 	10	 
	 
	SECTION 1.5. Notices, Etc. to Trustee and Company
	 	 	12	 
	 
	SECTION 1.6. Notice to Holders; Waiver
	 	 	12	 
	 
	SECTION 1.7. Effect of Headings and Table of Contents
	 	 	13	 
	 
	SECTION 1.8. Successors and Assigns
	 	 	13	 
	 
	SECTION 1.9. Separability Clause
	 	 	13	 
	 
	SECTION 1.10. Benefits of Indenture
	 	 	13	 
	 
	SECTION 1.11. Governing Law
	 	 	13	 
	 
	SECTION 1.12. Submission to Jurisdiction
	 	 	13	 
	 
	SECTION 1.13. Non-Business Days
	 	 	14	 
	 
	SECTION 1.14. Shareholder Communications Act
	 	 	14	 
	 
	ARTICLE II SECURITY FORMS
	 	 	14	 
	 
	SECTION 2.1. Form of Security
	 	 	14	 
	 
	SECTION 2.2. Restricted Legend
	 	 	18	 
	 
	SECTION 2.3. Form of Trustee’s Certificate of Authentication
	 	 	20	 
	 
	SECTION 2.4. Temporary Securities
	 	 	21	 
	 
	SECTION 2.5. Definitive Securities
	 	 	21	 
	 
	ARTICLE III THE SECURITIES
	 	 	21	 
	 
	SECTION 3.1. Payment of Principal and Interest
	 	 	21	 

- i -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 3.2. Denominations
	 	 	23	 
	 
	SECTION 3.3. Execution, Authentication, Delivery and Dating
	 	 	23	 
	 
	SECTION 3.4. Global Securities
	 	 	24	 
	 
	SECTION 3.5. Registration, Transfer and Exchange Generally
	 	 	26	 
	 
	SECTION 3.6. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	28	 
	 
	SECTION 3.7. Persons Deemed Owners
	 	 	28	 
	 
	SECTION 3.8. Cancellation
	 	 	28	 
	 
	SECTION 3.9. Reserved
	 	 	29	 
	 
	SECTION 3.10. Reserved
	 	 	29	 
	 
	SECTION 3.11. Agreed Tax Treatment
	 	 	29	 
	 
	SECTION 3.12. CUSIP Numbers
	 	 	29	 
	 
	ARTICLE IV SATISFACTION AND DISCHARGE
	 	 	29	 
	 
	SECTION 4.1. Satisfaction and Discharge of Indenture
	 	 	29	 
	 
	SECTION 4.2. Application of Trust Money
	 	 	31	 
	 
	ARTICLE V REMEDIES
	 	 	31	 
	 
	SECTION 5.1. Events of Default
	 	 	31	 
	 
	SECTION 5.2. Acceleration of Maturity; Rescission and Annulment
	 	 	32	 
	 
	SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	32	 
	 
	SECTION 5.4. Trustee May File Proofs of Claim
	 	 	33	 
	 
	SECTION 5.5. Trustee May Enforce Claim Without Possession of Securities
	 	 	33	 
	 
	SECTION 5.6. Application of Money Collected
	 	 	34	 
	 
	SECTION 5.7. Limitation on Suits
	 	 	34	 
	 
	SECTION 5.8. Unconditional Right of Holders to Receive Principal, Premium, if any, and
Interest
	 	 	35	 
	 
	SECTION 5.9. Restoration of Rights and Remedies
	 	 	35	 
	 
	SECTION 5.10. Rights and Remedies Cumulative
	 	 	35	 

- ii -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 5.11. Delay or Omission Not Waiver
	 	 	35	 
	 
	SECTION 5.12. Control by Holders
	 	 	36	 
	 
	SECTION 5.13. Waiver of Past Defaults
	 	 	36	 
	 
	SECTION 5.14. Undertaking for Costs
	 	 	36	 
	 
	SECTION 5.15. Waiver of Usury, Stay or Extension Laws
	 	 	37	 
	 
	ARTICLE VI THE TRUSTEE
	 	 	37	 
	 
	SECTION 6.1. Corporate Trustee Required
	 	 	37	 
	 
	SECTION 6.2. Certain Duties and Responsibilities
	 	 	37	 
	 
	SECTION 6.3. Notice of Defaults
	 	 	38	 
	 
	SECTION 6.4. Certain Rights of Trustee
	 	 	39	 
	 
	SECTION 6.5. May Hold Securities
	 	 	41	 
	 
	SECTION 6.6. Compensation; Reimbursement; Indemnity
	 	 	41	 
	 
	SECTION 6.7. Resignation and Removal; Appointment of Successor
	 	 	42	 
	 
	SECTION 6.8. Acceptance of Appointment by Successor
	 	 	43	 
	 
	SECTION 6.9. Merger, Conversion, Consolidation or Succession to Business
	 	 	43	 
	 
	SECTION 6.10. Not Responsible for Recitals or Issuance of Securities
	 	 	43	 
	 
	SECTION 6.11. Appointment of Authenticating Agent
	 	 	44	 
	 
	ARTICLE VII HOLDER’S LISTS AND REPORTS BY COMPANY
	 	 	45	 
	 
	SECTION 7.1. Company to Furnish Trustee Names and Addresses of Holders
	 	 	45	 
	 
	SECTION 7.2. Preservation of Information, Communications to Holders
	 	 	45	 
	 
	SECTION 7.3. Reports by Company
	 	 	46	 
	 
	ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	46	 
	 
	SECTION 8.1. Company May Consolidate, Etc., Only on Certain Terms
	 	 	46	 
	 
	SECTION 8.2. Successor Company Substituted
	 	 	47	 
	 
	ARTICLE IX SUPPLEMENTAL INDENTURES
	 	 	48	 

- iii -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 9.1. Supplemental Indentures without Consent of Holders
	 	 	48	 
	 
	SECTION 9.2. Supplemental Indentures with Consent of Holders
	 	 	49	 
	 
	SECTION 9.3. Execution of Supplemental Indentures
	 	 	49	 
	 
	SECTION 9.4. Effect of Supplemental Indentures
	 	 	50	 
	 
	SECTION 9.5. Reference in Securities to Supplemental Indentures
	 	 	50	 
	 
	ARTICLE X COVENANTS
	 	 	50	 
	 
	SECTION 10.1. Payment of Principal, Premium, if any, and Interest
	 	 	50	 
	 
	SECTION 10.2. Money for Security Payments to be Held in Trust
	 	 	50	 
	 
	SECTION 10.3. Statement as to Compliance
	 	 	51	 
	 
	SECTION 10.4. Calculation Agent
	 	 	51	 
	 
	SECTION 10.5. Inspection of Books and Records; Access to Management Observation Rights
	 	 	52	 
	 
	SECTION 10.6. Additional Covenants
	 	 	53	 
	 
	SECTION 10.7. Waiver of Covenants
	 	 	53	 
	 
	SECTION 10.8. Treatment of Securities
	 	 	53	 
	 
	ARTICLE XI REDEMPTION OF SECURITIES
	 	 	54	 
	 
	SECTION 11.1. Optional Redemption
	 	 	54	 
	 
	SECTION 11.2. Special Event Redemption
	 	 	54	 
	 
	SECTION 11.3. Election to Redeem; Notice to Trustee
	 	 	54	 
	 
	SECTION 11.4. Selection of Securities to be Redeemed
	 	 	54	 
	 
	SECTION 11.5. Notice of Redemption
	 	 	55	 
	 
	SECTION 11.6. Deposit of Redemption Price
	 	 	56	 
	 
	SECTION 11.7. Payment of Securities Called for Redemption
	 	 	56	 
	 
	ARTICLE XII SUBORDINATION OF SECURITIES
	 	 	56	 
	 
	SECTION 12.1. Securities Subordinate to Senior Debt
	 	 	56	 

- iv -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	 
	SECTION 12.2. No Payment When Senior Debt in Default; Payment Over of Proceeds Upon
Dissolution, Etc.
	 	 	57	 
	 
	SECTION 12.3. Payment Permitted If No Default
	 	 	58	 
	 
	SECTION 12.4. Subrogation to Rights of Holders of Senior Debt
	 	 	58	 
	 
	SECTION 12.5. Provisions Solely to Define Relative Rights
	 	 	59	 
	 
	SECTION 12.6. Trustee to Effectuate Subordination
	 	 	59	 
	 
	SECTION 12.7. No Waiver of Subordination Provisions
	 	 	59	 
	 
	SECTION 12.8. Notice to Trustee
	 	 	60	 
	 
	SECTION 12.9. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	60	 
	 
	SECTION 12.10. Trustee Not Fiduciary for Holders of Senior Debt
	 	 	61	 
	 
	SECTION 12.11. Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights
	 	 	61	 
	 
	SECTION
12.12. Article Applicable to Paying Agents
	 	 	61	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	Schedule A  —  Determination of LIBOR
	 	 	 	 
	 
	Exhibit A  —  Form of Officer’s Financial Certificate
	 	 	 	 

- v -

 

     JUNIOR SUBORDINATED INDENTURE, dated as of January 15, 2010, between BEAZER HOMES USA, INC., a
Delaware (the “Company”), and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Trustee
(in such capacity, the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance of its unsecured junior subordinated notes (the “Securities”) and to
provide the terms and conditions upon which the Securities are to be authenticated, issued and
delivered; and

     WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.

     Now, THEREFORE, this Indenture Witnesseth:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities, as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     SECTION 1.1. Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) the terms defined in this Article I have the meanings assigned to them in
this Article I;

     (b) the words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”;

     (c) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP;

     (d) unless the context otherwise requires, any reference to an “Article” or a “Section”
refers to an Article or a Section, as the case may be, of this Indenture;

     (e) the words “hereby”, “herein”, “hereof” and “hereunder” and other words of similar
import refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision;

     (f) a reference to the singular includes the plural and vice versa; and

 

 

     (g) the masculine, feminine or neuter genders used herein shall include the masculine,
feminine and neuter genders.

     “Act” when used with respect to any Holder, has the meaning specified in Section 1.4.

     “Additional Interest” means the interest, if any, that shall accrue on any amounts payable on
the Securities, the payment of which has not been made on the applicable Interest Payment Date and
which shall accrue at the rate per annum specified or determined as specified in such Security, in
each case to the extent legally enforceable.

     “Affiliate” of any specified Person means any other Person directly or indirectly Controlling
or Controlled by or under direct or indirect common Control with such specified Person.

     “Applicable Depositary Procedures” means, with respect to any transfer or transaction
involving a Global Security or beneficial interest therein, the rules and procedures of the
Depositary for such Security, in each case to the extent applicable to such transaction and as in
effect from time to time.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section
6.11 to act on behalf of the Trustee to authenticate the Securities.

     “Board of Directors” means the board of directors of the Company or any duly authorized
committee of that board.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification.

     “Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking
institutions in the City of New York are authorized or required by law or executive order to remain
closed or (iii) a day on which the Corporate Trust Office of the Trustee is closed for business.

     “Calculation Agent” has the meaning specified in Section 10.4.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commission” has the meaning specified in Section 7.3(c).

     “Company” means the Person named as the “Company” in the first paragraph of this Indenture
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Request” and “Company Order” mean, respectively, the written request or order signed
in the name of the Company by (i) its Chairman of the Board of Directors, its Vice Chairman of the
Board of Directors, its Chief Executive Officer, President, an Executive Vice President or a Vice
President, and (ii) its Chief Financial Officer, its Treasurer, an Assistant

 - 2 -

 

Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.
Notwithstanding the foregoing, a Company Order for the purposes of authentication and delivery of
the Securities pursuant to Section 3.3(a) shall require the signature of only one of the above
referenced officers of the Company.

     “Control” when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

     “Corporate Trust Office” means the principal office of the Trustee at which at any particular
time its corporate trust business shall be administered, which office at the date of this Indenture
is located at 1100 North Market Street, Wilmington, Delaware 19890, Attn: Corporate Trust
Administration. Initially, all notices and correspondence shall be addressed to Mike Oller,
telephone number (302) 636-6410.

     “Debt” means, with respect to any Person, whether recourse is to all or a portion of the
assets of such Person, whether currently existing or hereafter incurred and whether or not
contingent and without duplication, (i) every obligation of such Person for money borrowed; (ii)
every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments,
including obligations incurred in connection with the acquisition of property, assets or
businesses; (iii) every reimbursement obligation of such Person with respect to letters of credit,
bankers’ acceptances or similar facilities issued for the account of such Person; (iv) every
obligation of such Person issued or assumed as the deferred purchase price of property or services
(but excluding trade accounts payable or other accrued liabilities arising in the ordinary course
of business); (v) every capital lease obligation of such Person; (vi) all indebtedness of such
Person, whether incurred on or prior to the date of this Indenture or thereafter incurred, for
claims in respect of derivative products, including interest rate, foreign exchange rate and
commodity forward contracts, options and swaps and similar arrangements; (vii) every obligation of
the type referred to in clauses (i) through (vi) of another Person and all dividends of another
Person the payment of which, in either case, such Person has guaranteed or is responsible or liable
for, directly or indirectly, as obligor or otherwise; and (viii) any renewals, extensions,
refundings, amendments or modifications of any obligation of the type referred to in clauses (i)
through (vii).

     “Defaulted Interest” has the meaning specified in Section 3.1.

     “Depositary” means an organization registered as a clearing agency under the Exchange Act that
is designated as Depositary by the Company or any successor thereto.

     “Depositary Participant” means a broker, dealer, bank, other financial institution or other
Person for whom from time to time a Depositary effects book-entry transfers and pledges of
securities deposited with the Depositary.

     “Dollar” or “$” means the currency of the United States of America that, as at the time of
payment, is legal tender for the payment of public and private debts.

 - 3 -

 

     “DTC” means The Depository Trust Company, a New York corporation, or any successor thereto.

     “EDGAR” has the meaning specified in Section 7.3(c).

     “Equity Interests” means with respect to any Person (a) if such Person is a partnership, the
partnership interests (general or limited) in a partnership, (b) if such Person is a limited
liability company, the membership interests in a limited liability company and (c) if such Person
is a corporation, the shares or stock interests (both common stock and preferred stock) in a
corporation.

     “Event of Default” has the meaning specified in Section 5.1.

     “Exchange Act” means the Securities Exchange Act of 1934 or any statute successor thereto, in
each case as amended from time to time.

     “Exchange Agreement” means that certain Exchange Agreement executed and delivered
contemporaneously with this Indenture by and among the Company and the parties named therein.

     “Expiration Date” has the meaning specified in Section 1.4(h).

     “Fixed Rate Period” shall have the meaning in the form of Security set forth in Section
2.1.

     “GAAP” means United States generally accepted accounting principles, consistently applied,
from time to time in effect.

     “Global Security” means a Security that evidences all or part of the Securities, the ownership
and transfers of which shall be made through book entries by a Depositary.

     “Government Obligation” means (a) any security that is (i) a direct obligation of the United
States of America of which the full faith and credit of the United States of America is pledged or
(ii) an obligation of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America or the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of America, which, in either
case (i) or (ii), is not callable or redeemable a the option of the issuer thereof, and (b) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
custodian with respect to any Government Obligation that is specified in clause (a) above and held
by such bank for the account of the holder of such depositary receipt, or with respect to any
specific payment of principal of or interest on any Government Obligation that is so specified and
held, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from any amount received
by the custodian in respect of the Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.

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

 - 4 -

 

     “Indenture” means this instrument as originally executed or as it may from time to time be
amended or supplemented by one or more amendments or indentures supplemental hereto entered into
pursuant to the applicable provisions hereof.

     “Interest Payment Date” means January 30, April 30, July 30 and October 30 of each year,
commencing on January 30, 2010, during the term of this Indenture.

     “Interest Period” means the period commencing on, and including, an Interest Payment Date and
continuing through and including the day prior to the next succeeding Interest Payment Date.

     “Investment Company Act” means the Investment Company Act of 1940 or any successor statute
thereto, in each case as amended from time to time.

     “Investment Company Event” means the receipt by the Company of an Opinion of Counsel
experienced in such matters to the effect that, as a result of the occurrence of a change in law or
regulation (including any announced prospective change) or a written change in interpretation or
application of law or regulation by any legislative body, court, governmental agency or regulatory
authority, there is more than an insubstantial risk that the Company is or, within ninety (90) days
of the date of such opinion will be, considered an “investment company” that is required to be
registered under the Investment Company Act, which change or prospective change becomes effective
or would become effective, as the case may be, on or after the date of the issuance of the
Securities.

     “LIBOR” has the meaning specified in Schedule A.

     “LIBOR Business Day” has the meaning specified in Schedule A.

     “LIBOR Determination Date” has the meaning specified in Schedule A.

     “Maturity,” means when used with respect to any Security, the date on which the principal of
such Security or any installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.

     “Notice of Default” means a written notice of the kind specified in Section 5.1(c).

     “Officers’ Certificate” means a certificate signed by (i) the Chairman of the Board, a Vice
Chairman of the Board, the Chief Executive Officer, the President, an Executive Vice President or a
Vice President, and (ii) the Chief Financial Officer, the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Company and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for or an employee
of the Company or any Affiliate of the Company.

     “Optional Redemption Price” has the meaning set forth in Section 11.1.

     “Original Issue Date” means the date of original issuance of each Security.

 - 5 -

 

     “Outstanding” means, when used in reference to any Securities, as of the date of
determination, all Securities theretofore authenticated and delivered under this Indenture, except:

     (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (ii) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent in trust for the Holders of such
Securities; provided that, if such Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made; and

     (iii) Securities that have been paid or in substitution for or in lieu of which other
Securities have been authenticated and delivered pursuant to the provisions of this
Indenture, unless proof satisfactory to the Trustee is presented that any such Securities
are held by Holders in whose hands such Securities are valid, binding and legal obligations
of the Company;

provided that in determining whether the Holders of the requisite principal amount of Outstanding
Securities have given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Securities owned by the Company, if any, or any other obligor upon the Securities, if
any, or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to
be Outstanding unless the Company shall hold all Outstanding Securities, except that, in
determining whether the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities that a Responsible Officer of
the Trustee actually knows to be so owned shall be so disregarded. Securities so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor.

     “Paying Agent” means the Trustee or any Person (other than the Company or any Affiliate of the
Company) authorized by the Company to pay the principal of or any premium or interest on, or other
amounts in respect of, any Securities on behalf of the Company.

     “Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint stock company, company, limited liability company, trust,
unincorporated association, or government, or any agency or political subdivision thereof, or any
other entity of whatever nature.

     “Place of Payment” means, with respect to the Securities, the Corporate Trust Office of the
Trustee.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security. For the purposes of
this definition, any security authenticated and delivered under Section 3.6 in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Security.

 - 6 -

 

     “Proceeding” has the meaning specified in Section 12.2(b).

     “Redemption Date” means, when used with respect to any Security to be redeemed, the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Price” means, when used with respect to any Security to be redeemed, in whole or
in part, the Special Redemption Price or the Optional Redemption Price, as applicable, at which
such Security or portion thereof is to be redeemed as fixed by or pursuant to this Indenture.

     “Reference Banks” has the meaning specified in Schedule A.

     “Regular Record Date” for the interest payable on any Interest Payment Date with respect to
the Securities means the date that is fifteen (15) days preceding such Interest Payment Date
(whether or not a Business Day).

     “Responsible Officer” means, when used with respect to the Trustee, any officer of the Trustee
duly authorized by the Trustee having direct responsibility for the administration of this
Indenture, and also means with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his knowledge and familiarity with the particular matter.

     “Rights Plan” means a plan of the Company providing for the issuance by the Company to all
holders of its Equity Interests of rights entitling the holders thereof to subscribe for or
purchase Equity Interests or any class or series of Equity Interests in the Company which rights
are deemed to be transferred with such Equity Interests and (ii) are also issued in respect of
future issuances of such Equity Interests, in each case until the occurrence of a specified event
or events.

     “Securities” or “Security” means any debt securities or debt security, as the case may be,
authenticated and delivered under this Indenture.

     “Securities Act” means the Securities Act of 1933 or any successor statute thereto, in each
case as amended from time to time.

     “Securities Register” and “Securities Registrar” have the respective meanings specified in
Section 3.5.

     “Senior Debt” means the principal of and any premium and interest on (including interest
accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the
Company, whether or not such claim for post-petition interest is allowed in such proceeding) all
Debt of the Company, whether incurred on or prior to the date of this Indenture or thereafter
incurred, unless it is provided in the instrument creating or evidencing the same or pursuant to
which the same is outstanding, that such obligations are not superior in right of payment to the
Securities issued under this Indenture; provided that Senior Debt shall not be deemed to include
any (i) debt or (ii) other debt securities (and guarantees, if any, in respect of such debt
securities) issued to any trust (or a trustee of any such trust), partnership or other entity
affiliated with the Company that is a financing vehicle of the Company (a “financing entity”) in
connection with

 - 7 -

 

the issuance by such financing entity of equity securities or other securities, in each case
of (i) or (ii) pursuant to an instrument that ranks pari passu with or junior in right of payment
to this Indenture.

     “Special Event” means the occurrence of an Investment Company Event or a Tax Event.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.1.

     “Special Redemption Price” has the meaning set forth in Section 11.2.

     “Stated Maturity” means July 30, 2036.

     “Subsidiary” of a Person means (a) any corporation more than fifty percent (50%) of the
outstanding securities having ordinary voting power of which shall at the time be owned or
Controlled, directly or indirectly, by such Person and/or by one or more of its Subsidiaries or (b)
any partnership, limited liability company, association, joint venture or similar business
organization more than fifty percent (50%) of the ownership interests having ordinary voting power
of which shall at the time be owned or Controlled, directly or indirectly, by such Person and/or by
one or more of its Subsidiaries. Unless otherwise expressly provided, all references herein to a
“Subsidiary” shall mean a Subsidiary of the Company.

     “Tax Event” means the receipt by the Company of an Opinion of Counsel experienced in such
matters to the effect that, as a result of (a) any amendment to or change (including any announced
prospective change) in the laws or any regulations thereunder of the United States or any political
subdivision or taxing authority thereof or therein or (b) any judicial decision or any official
administrative pronouncement (including any private letter ruling, technical advice memorandum or
field service advice) or regulatory procedure, including any notice or announcement of intent to
adopt any such pronouncement or procedure (an “Administrative Action”), regardless of whether such
judicial decision or Administrative Action is issued to or in connection with a proceeding
involving the Company and whether or not subject to review or appeal, which amendment, change,
judicial decision or Administrative Action is enacted, promulgated or announced, in each case, on
or after the date of issuance of the Securities, there is more than an insubstantial risk that
interest payable by the Company on the Securities is not, or within ninety (90) days of the date of
such opinion, will not be, deductible by the Company, in whole or in part, for United States
federal income tax purposes.

     “Taberna Capital Management LLC” means Taberna Capital Management, LLC and its successors
and/or assigns as collateral manager of one or more Holders, as applicable.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument,
solely in its capacity as such and not in its individual capacity, until a successor Trustee shall
have become such pursuant to the applicable provisions of this Indenture, and, thereafter,
“Trustee” shall mean or include each Person who is then a Trustee hereunder.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended and as in effect on
the date as of this Indenture.

 - 8 -

 

     SECTION 1.2. Compliance Certificate and Opinions.

     (a) Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee
an Officers’ Certificate stating that all conditions precedent (including covenants compliance with
which constitutes a condition precedent), if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent (including covenants compliance with which constitutes a
condition precedent), if any, have been complied with.

     (b) Every certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than the certificate provided pursuant to Section
10.3) shall include:

     (i) a statement by each individual signing such certificate or opinion that such
individual has read such covenant or condition and the definitions herein relating thereto;

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

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

     (iv) a statement as to whether, in the opinion of such individual, such condition or
covenant has been complied with.

     SECTION 1.3. Forms of Documents Delivered to Trustee.

     (a) In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only
one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

     (b) Any certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer has actual knowledge that the certificate or opinion or representations with respect
to matters upon which his or her certificate or opinion is based are erroneous. Any such
certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the Company stating
that the information with respect to such factual matters is in the possession of the Company,
unless such counsel has actual knowledge that the certificate or opinion or representations with
respect to such matters are erroneous.

 - 9 -

 

     (c) Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     (d) Whenever, subsequent to the receipt by the Trustee of any Board Resolution, Officers’
Certificate, Opinion of Counsel or other document or instrument, a clerical, typographical or other
inadvertent or unintentional error or omission shall be discovered therein, a new document or
instrument may be substituted therefor in corrected form with the same force and effect as if
originally received in the corrected form and, irrespective of the date or dates of the actual
execution and/or delivery thereof, such substitute document or instrument shall be deemed to have
been executed and/or delivered as of the date or dates required with respect to the document or
instrument for which it is substituted. Without limiting the generality of the foregoing, any
Securities issued under the authority of such defective document or instrument shall nevertheless
be the valid obligations of the Company entitled to the benefits of this Indenture equally and
ratably with all other Outstanding Securities.

     SECTION 1.4. Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given to or taken by Holders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Holders in person or by an
agent thereof duly appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments (including any appointment of an
agent) is or are delivered to the Trustee, and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.4.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of any notary public
or other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him or her the execution thereof. Where such
execution is by a Person acting in other than his or her individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his or her authority. The fact and date of the
execution by any Person of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other manner that the Trustee deems sufficient and in
accordance with such reasonable rules as the Trustee may determine.

     (c) The ownership of Securities shall be proved by the Securities Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange therefor

 - 10 -

 

or in lieu thereof in respect of anything done or suffered to be done by the Trustee or the
Company in reliance thereon, whether or not notation of such action is made upon such Security.

     (e) Without limiting the foregoing, a Holder entitled to take any action hereunder with regard
to any particular Security may do so with regard to all or any part of the principal amount of such
Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.

     (f) Except as set forth in paragraph (g) of this Section 1.4, the Company may set any
day as a record date for the purpose of determining the Holders of Outstanding Securities entitled
to give, make or take any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given, made or taken by Holders of
Securities. If any record date is set pursuant to this paragraph, the Holders of Outstanding
Securities on such record date, and no other Holders, shall be entitled to take the relevant
action, whether or not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable Expiration Date (as
defined in Section 1.4(h)) by Holders of the requisite principal amount of Outstanding
Securities on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect). Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record
date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee
in writing and to each Holder of Securities in the manner set forth in Section 1.6.

     (g) The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities entitled to join in the giving or making of (i) any Notice of Default, (ii)
any declaration of acceleration or rescission or annulment thereof referred to in Section
5.2, (iii) any request to institute proceedings referred to in Section 5.7(b) or (iv)
any direction referred to in Section 5.12. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities on such record date, and no other Holders, shall
be entitled to join in such notice, declaration, request or direction, whether or not such Holders
remain Holders after such record date; provided that no such action shall be effective hereunder
unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities on such record date. Nothing in this paragraph shall be construed
to prevent the Trustee from setting a new record date for any action for which a record date has
previously been set pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be canceled and of no effect). Promptly after any
record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause
notice of such record date, the proposed action by Holders and the applicable Expiration Date to be
given to the Company in writing and to each Holder of Securities in the manner set forth in
Section 1.6.

     (h) With respect to any record date set pursuant to paragraph (f) or (g) of this Section
1.4, the party hereto that sets such record date may designate any day as the “Expiration Date”
and from time to time may change the Expiration Date to any earlier or later day; provided that no
such change shall be effective unless notice of the proposed new Expiration Date is given

 - 11 -

 

to the other party hereto in writing, and to each Holder of Securities in the manner set forth in
Section 1.6, on or prior to the existing Expiration Date. If an Expiration Date is not
designated with respect to any record date set pursuant to this Section 1.4, the party
hereto that set such record date shall be deemed to have initially designated the ninetieth
(90th) day after such record date as the Expiration Date with respect thereto, subject
to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the
foregoing, no Expiration Date shall be later than the one hundred eightieth (180th) day
after the applicable record date.

     SECTION 1.5. Notices, Etc. to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver, Act of Holders, or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with:

     (i) the Trustee by any Holder or the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with and received by the
Trustee at its Corporate Trust Office, or

     (ii) the Company by the Trustee or any Holder shall be sufficient for every purpose
hereunder if in writing and mailed, first class, postage prepaid, to the Company addressed
to it at 1000 Abernathy Road Suite 1200, Atlanta, GA 30328 (telephone: (770) 829-3700, fax:
(770) 481-7564); with a copy to Cahill Gordon & Reindel LLP, 80 Pine Street, New York, NY
10005 (telephone: (212) 701-3000, fax: (212) 269-5420, Attention: Michael A. Sherman, Esq.)
or at any other address previously furnished in writing to the Trustee by the Company.

     SECTION 1.6. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first
class, postage prepaid, to each Holder affected by such event to the address of such Holder as it
appears in the Securities Register, not later than the latest date (if any), and not earlier than
the earliest date (if any), prescribed for the giving of such notice. If, by reason of the
suspension of or irregularities in regular mail service or for any other reason, it shall be
impossible or impracticable to mail notice of any event to Holders when said notice is required to
be given pursuant to any provision of this Indenture, then any manner of giving such notice as
shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice. In
any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

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     SECTION 1.7. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction of this Indenture.

     SECTION 1.8. Successors and Assigns.

     This Indenture shall be binding upon and shall inure to the benefit of any successor to the
Company and the Trustee, including any successor by operation of law. Except in connection with a
transaction involving the Company that is permitted under Article VIII and pursuant to
which the assignee agrees in writing to perform the Company’s obligations hereunder, the Company
shall not assign its obligations hereunder.

     SECTION 1.9. Separability Clause.

     If any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby, and there shall be deemed substituted for the provision at
issue a valid, legal and enforceable provision as similar as possible to the provision at issue.

     SECTION 1.10. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors and assigns, the holders of Senior Debt and the
Holders of the Securities any benefit or any legal or equitable right, remedy or claim under this
Indenture.

     SECTION 1.11. Governing Law.

     This Indenture and the rights and obligations of each of the Holders, the Company and the
Trustee shall be construed and enforced in accordance with and governed by the laws of the State of
New York without reference to its conflict of laws provisions (other than Section 5-1401 of the
General Obligations Law).

     SECTION 1.12. Submission to Jurisdiction.

     ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING
OUT OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK, IN AND
FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS
INDENTURE, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR
LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE.

- 13 -

 

     SECTION 1.13. Non-Business Days.

     If any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be
a Business Day, then (notwithstanding any other provision of this Indenture or the Securities)
payment of interest, premium, if any, or principal or other amounts in respect of such Security
shall not be made on such date, but shall be made on the next succeeding Business Day (and no
interest shall accrue in respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, until
such next succeeding Business Day) except that, if such Business Day falls in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case
with the same force and effect as if made on the Interest Payment Date or Redemption Date or at the
Stated Maturity.

     SECTION 1.14. Shareholder Communications Act

     (a) With respect to securities under and as defined in the Shareholders Communications Act of
1985 (the “SCA”) issued in the United States, the SCA requires the Trustee to disclose to issuers,
upon their request, the name, address and securities position of its customers who are (i) the
“beneficial owners” (as defined in the SCA) of the issuers’ securities, if the beneficial owner
does not object to such disclosure, or (ii) acting as a “respondent bank” (as defined in the SCA)
with respect to the securities. Under the SCA, “respondent banks” do not have the option of
objecting to such disclosure upon the issuers’ request. The SCA defines a “beneficial owner” as
any person who has, or shares, the power to vote a security (pursuant to an agreement or
otherwise), or who directs the voting for a security. The SCA defines a “respondent bank” as any
bank, association or other entity that exercises fiduciary powers which holds securities on behalf
of beneficial owners and deposits such securities for safekeeping with a bank, such as the Trustee.
Under the SCA, each Holder is either the “beneficial owner” or a “respondent bank.”

     (b) For Purposes of this Indenture, until the Trustee receives a contrary written instruction
from a Holder, the Trustee shall assume that such Holder is the beneficial owner of the Securities.

     (c) For Purposes of this Indenture, until the Trustee receives a contrary instruction from a
Holder, the Trustee shall release the name, address and securities position to the Company, if the
Company requests such information pursuant to the SCA for the specific purpose of direct
communications between the Company and such Holder. With respect to securities issued outside of
the United States, if applicable, information shall be released to issuers only if required by law
or regulation of the particular country in which the securities are located.

ARTICLE II

SECURITY FORMS

     SECTION 2.1. Form of Security.

     Any Security issued hereunder shall be in substantially the following form:

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BEAZER HOMES USA, INC.

Junior Subordinated Note due 2036

	 	 	 
	No.                    

	 	$                    

     Beazer Homes USA, Inc., a corporation organized and existing under the laws of Delaware
(hereinafter called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay
to
[                    ], or its
registered assigns, the principal sum of [                    ] Dollars [($                    )] or such other principal
amount represented hereby as may be set forth in the records of the Securities Registrar
hereinafter referred to in accordance with the Indenture on July 30, 2036. The Company further
promises to pay interest on said principal sum from January 15, 2010, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears on
January 30, April 30, July 30 and October 30 of each year, commencing January 30, 2010, or if any
such day is not a Business Day, on the next succeeding Business Day (and no interest shall accrue
in respect of the amounts whose payment is so delayed for the period from and after such Interest
Payment Date until such next succeeding Business Day), except that, if such Business Day falls in
the next succeeding calendar year, such payment shall be made on the immediately preceding Business
Day, in each case, with the same force and effect as if made on the Interest Payment Date, at a
fixed rate equal to 7.987% per annum through the interest payment date in July 2016 (“Fixed
Rate Period”) and thereafter at a variable rate equal to LIBOR plus 2.45% per annum, provided
that such variable rate shall not be less than 4.25% per annum or greater than 9.25% per annum,
until the principal hereof is paid or duly provided for or made available for payment; provided,
further, that any overdue principal, premium, if any, and any overdue installment of interest shall
bear Additional Interest at a fixed rate equal to 7.987% through the Interest Payment Date in July
2016 and thereafter at a variable rate equal to LIBOR plus 2.45% per annum, provided that such
variable rate shall not be less than 4.25% per annum or greater than 9.25% per annum (to the extent
that the payment of such interest shall be legally enforceable), compounded quarterly, from the
dates such amounts are due until they are paid or made available for payment, and such interest
shall be payable on demand.

     During the Fixed Rate Period, the amount of interest payable shall be computed on the basis of
a 360-day year of twelve 30-day months and the amount payable for any partial period shall be
computed on the basis of the number of days elapsed in a 360-day year of twelve 30-day months.
Upon expiration of the Fixed Rate Period, the amount of interest payable for any Interest Period
will be computed on the basis of a 360-day year and the actual number of days elapsed in the
relevant Interest Period. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest installment. Any such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and
may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities not less than ten (10) days prior to such Special Record Date, or be paid

- 15 -

 

at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in the Indenture.

     Payment of principal of, premium, if any, and interest on this Security shall be made in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payments of principal, premium, if any, and interest due at
the Maturity of this Security shall be made at the Place of Payment upon surrender of such
Securities to the Paying Agent, and payments of interest shall be made, subject to such surrender
where applicable, by wire transfer at such place and to such account at a banking institution in
the United States as may be designated in writing to the Paying Agent at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper written transfer
instructions have not been received by the relevant record date, in which case such payments shall
be made by check mailed to the address of such Person as such address shall appear in the Security
Register.

     The indebtedness evidenced by this Security is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all Senior Debt, and
this Security is issued subject to the provisions of the Indenture with respect thereto. Each
Holder of this Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take such actions as may
be necessary or appropriate to effectuate the subordination so provided and (c) appoints the
Trustee his or her attorney-in-fact for any and all such purposes. Each Holder hereof, by his or
her acceptance hereof, waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Debt, whether now outstanding or
hereafter incurred, and waives reliance by each such holder upon said provisions.

     Unless the certificate of authentication hereon has been executed by the Trustee by manual
signature, this Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

[FORM OF REVERSE OF SECURITY]

     This Security is one of a duly authorized issue of securities of the Company (the
“Securities”) issued under the Junior Subordinated Indenture, dated as of January 15, 2010 (the
“Indenture”), between the Company and Wilmington Trust Company, as Trustee (in such capacity, the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, the
holders of Senior Debt, and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     The Company may, at its option, upon not less than thirty (30) days’ nor more than sixty (60)
days’ written notice to the Holders of the Securities (unless a shorter notice period shall be

- 16 -

 

satisfactory to the Trustee) on or after June 1, 2012 and subject to the terms and conditions
of Article XI of the Indenture, redeem the Securities in whole at any time or in part from time to
time, at a Redemption Price equal to seventy-five percent (75%) of the principal amount hereof (or
of the redeemed portion hereof, as applicable), provided that (i) such Redemption Price shall
increase annually beginning on June 1, 2022 by an amount equal to one and seven hundred eighty-five
thousandths percent (1.785%) (e.g., 76.875% commencing on June 1, 2022, 78.57% commencing on June
1, 2023 and so on) and (ii) such Redemption Price shall be equal to 100% during the continuance of
an Event of Default, together, in the case of any such redemption, with accrued and unpaid
interest, including any Additional Interest, through but excluding the date fixed as the Redemption
Date.

     In addition, upon the occurrence and during the continuation of a Special Event, the Company
may, at its option, upon not less than thirty (30) days’ nor more than sixty (60) days’ written
notice to the Holders of the Securities (unless a shorter notice period shall be satisfactory to
the Trustee), redeem this Security, in whole but not in part, subject to the terms and conditions
of Article XI of the Indenture at a Redemption Price equal to one hundred seven and one
half percent (107.5%) of the principal amount hereof, together, in the case of any such redemption,
with accrued interest, including any Additional Interest, through but excluding the date fixed as
the Redemption Date.

     In the event of redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof. If less than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected not more than sixty (60) days prior to the Redemption Date by the
Trustee from the Outstanding Securities not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate and which may provide for the selection for redemption of a
portion of the principal amount of any Security.

     The Indenture permits, with certain exceptions as therein provided, the Company and the
Trustee at any time to enter into a supplemental indenture or indentures for the purpose of
modifying in any manner the rights and obligations of the Company and of the Holders of the
Securities, with the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities. The Indenture also contains provisions permitting Holders of specified
percentages in principal amount of the Securities, on behalf of the Holders of all Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver, is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium, if any, and interest, including any Additional Interest (to the
extent legally enforceable), on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

- 17 -

 

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is restricted to transfers to “Qualified Purchasers” (as such term is
defined in the Investment Company Act of 1940, as amended), and is registrable in the Securities
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company maintained for such purpose, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Securities Registrar and duly executed by,
the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more
new Securities, of like tenor, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

     The Securities are issuable only in registered form without coupons in minimum denominations
of $100,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture
and subject to certain limitations therein set forth, Securities are exchangeable for a like
aggregate principal amount of Securities and of like tenor of a different authorized denomination,
as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

     The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

     The Company and, by its acceptance of this Security or a beneficial interest herein, the
Holder of, and any Person that acquires a beneficial interest in, this Security agree that, for
United States federal, state and local tax purposes, it is intended that this Security constitute
indebtedness.

     This Security shall be construed and enforced in accordance with and governed by the laws of
the State of New York, without reference to its conflict of laws provisions (other than section
5-1401 of the General Obligations Law).

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed on this ___
day of                     , 20_.

	 	 	 	 	 
	 	

BEAZER HOMES USA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     SECTION 2.2. Restricted Legend.

     (a) Any Security issued hereunder shall bear a legend in substantially the following form:

- 18 -

 

“[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER
THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF
DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS 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.]

THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF ANY SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A UNDER THE SECURITIES ACT.

THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE
COMPANY THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO
THE COMPANY OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED
PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY SECURITIES FROM IT OF THE
RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
ATTEMPTED TRANSFER OF SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK

- 19 -

 

HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH
SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR
INTEREST ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE
DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.

THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF
ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY,
AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY
INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE
DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF
THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR
PLAN TO FINANCE SUCH PURCHASE.”

     (b) The above legends shall not be removed from any Security unless there is delivered to the
Company satisfactory evidence, which may include an Opinion of Counsel, as may be reasonably
required to ensure that any future transfers thereof may be made without restriction under or
violation of the provisions of the Securities Act and other applicable law. Upon provision of such
satisfactory evidence, the Company shall execute and deliver to the Trustee, and the Trustee shall
deliver, upon receipt of a Company Order directing it to do so, a Security that does not bear the
legend.

     SECTION 2.3. Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificate of authentication shall be in substantially the following form:

     This is one of the Securities referred to in the within-mentioned Indenture.

Dated:

- 20 -

 

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY, not in its individual
capacity, but solely as trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

     SECTION 2.4. Temporary Securities.

     (a) Pending the preparation of definitive Securities, the Company may execute, and upon
Company Order the Trustee shall authenticate and deliver, temporary Securities that are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any denomination, substantially
of the tenor of the definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the officers executing
such Securities may determine, as evidenced by their execution of such Securities.

     (b) If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for that purpose without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor one or more definitive
Securities of any authorized denominations having the same Original Issue Date and Stated Maturity
and having the same terms as such temporary Securities. Until so exchanged, the temporary
Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities.

     SECTION 2.5. Definitive Securities.

     The Securities issued on the Original Issue Date shall be in definitive form. The definitive
Securities shall be printed, lithographed or engraved, or produced by any combination of these
methods, if required by any securities exchange on which the Securities may be listed, on a steel
engraved border or steel engraved borders or may be produced in any other manner permitted by the
rules of any securities exchange on which the Securities may be listed, all as determined by the
officers executing such Securities, as evidenced by their execution of such Securities.

ARTICLE III

THE SECURITIES

     SECTION 3.1. Payment of Principal and Interest.

     (a) The unpaid principal amount of the Securities shall bear interest at a fixed rate equal to
7.987% per annum through the Interest Payment Date in July 2016 and thereafter at a variable rate
of LIBOR plus 2.45% per annum, provided that such variable rate shall not be less than 4.25% per
annum or greater than 9.25% per annum, until paid or duly provided for, such interest to accrue
from the Original Issue Date or from the most recent Interest Payment Date to

- 21 -

 

which interest has been paid or duly provided for, and any overdue principal, premium, if any,
and any overdue installment of interest shall bear Additional Interest at the rate equal to a fixed
rate equal to 7.987% per annum through the Interest Payment Date in July 2016 and thereafter at a
variable rate of LIBOR plus 2.45% per annum, provided that such variable rate shall not be less
than 4.25% per annum or greater than 9.25% per annum, compounded quarterly from the dates such
amounts are due until they are paid or funds for the payment thereof are made available for
payment.

     (b) Interest and Additional Interest on any Security that is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, except that interest and any Additional Interest payable on
the Stated Maturity (or any date of principal repayment upon early maturity) of the principal of a
Security or on a Redemption Date shall be paid to the Person to whom principal is paid. The
initial payment of interest on any Security that is issued between a Regular Record Date and the
related Interest Payment Date shall be payable as provided in such Security.

     (c) Any interest on any Security that is due and payable, but is not timely paid or duly
provided for, on any Interest Payment Date for Securities (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by
virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in paragraph (i) or (ii) below:

     (i) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective Predecessor Securities) are registered at
the close of business on a special record date for the payment of such Defaulted Interest (a
“Special Record Date”), which shall be fixed in the following manner. At least thirty (30)
days prior to the date of the proposed payment, the Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Security and the
date of the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to be held in
trust uninvested for the benefit of the Persons entitled to such Defaulted Interest.
Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest, which shall be not more than fifteen (15) days and not less than ten (10) days
prior to the date of the proposed payment and not less than ten (10) days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first class, postage prepaid, to each Holder of a Security at
the address of such Holder as it appears in the Securities Register not less than ten (10)
days prior to such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities (or their respective Predecessor
Securities) are registered on such Special Record Date; or

- 22 -

 

     (ii) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange or automated quotation
system on which the Securities may be listed, traded or quoted and, upon such notice as may
be required by such exchange or automated quotation system (or by the Trustee if the
Securities are not listed), if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such payment shall be deemed practicable by the
Trustee.

     (d) Payments of interest on the Securities shall include interest accrued to but excluding the
respective Interest Payment Dates. During the Fixed Rate Period, the amount of interest payable
shall be computed on the basis of a 360-day year of twelve 30-day months and the amount payable for
any partial period shall be computed on the basis of the number of days elapsed in a 360-day year
of twelve 30-day months. Upon expiration of the Fixed Rate Period, the amount of interest payable
for any Interest Period will be computed on the basis of a 360-day year and the actual number of
days elapsed in the relevant Interest Period.

     (e) Payment of principal of, premium, if any, and interest on the Securities shall be made in
such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payments of principal, premium, if any, and interest due at
the Maturity of such Securities shall be made at the Place of Payment upon surrender of such
Securities to the Paying Agent and payments of interest shall be made subject to such surrender
where applicable, by wire transfer at such place and to such account at a banking institution in
the United States as may be designated in writing to the Paying Agent at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper written transfer
instructions have not been received by the relevant record date, in which case such payments shall
be made by check mailed to the address of such Person as such address shall appear in the Security
Register.

     (f) Subject to the foregoing provisions of this Section 3.1, each Security delivered
under this Indenture upon transfer of or in exchange for or in lieu of any other Security shall
carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other
Security.

     SECTION 3.2. Denominations.

     The Securities shall be in registered form without coupons and shall be issuable in minimum
denominations of $100,000 and any integral multiple of $1,000 in excess thereof.

     SECTION 3.3. Execution, Authentication, Delivery and Dating.

     (a) At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities in an aggregate principal amount (including all then Outstanding
Securities) not in excess of Seventy-Five Million Dollars ($75,000,000) executed by the Company to
the Trustee for authentication, together with a Company Order for the authentication and delivery
of such Securities, and the Trustee in accordance with the Company Order shall authenticate and
deliver such Securities. In authenticating such Securities,

- 23 -

 

and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and shall be fully protected in relying upon:

     (i) a copy of any Board Resolution relating thereto; and

     (ii) an Opinion of Counsel stating that: (1) such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute, and the Indenture
constitutes, valid and legally binding obligations of the Company, each enforceable in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles; (2) the Securities have been
duly authorized and executed by the Company and have been delivered to the Trustee for
authentication in accordance with this Indenture; (3) the Securities are not required to be
registered under the Securities Act; and (4) the Indenture is not required to be qualified
under the Trust Indenture Act.

     (b) The Securities shall be executed on behalf of the Company by its Chairman of the Board,
its Vice Chairman of the Board, its Chief Executive Officer, its President, one of its Executive
Vice Presidents or Vice Presidents or by the Chief Financial Officer, the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary. The signature of any of these officers on the
Securities may be manual or facsimile. Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at the date of such
Securities.

     (c) No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by the manual signature of
one of its authorized signatories, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 3.8, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

     (d) Each Security shall be dated the date of its authentication.

     SECTION 3.4. Global Securities.

     (a) Upon the election of the Holder after the Original Issue Date, which election need not be
in writing, the Securities owned by such Holder shall be issued in the form of one or more Global
Securities registered in the name of the Depositary or its nominee. Each Global Security issued
under this Indenture shall be registered in the name of the Depositary designated by the Company
for such Global Security or a nominee thereof and delivered to such Depositary or a

- 24 -

 

nominee thereof or custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture.

     (b) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for registered Securities, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (i) such Depositary advises the Trustee and the Company in
writing that such Depositary is no longer willing or able to properly discharge its
responsibilities as Depositary with respect to such Global Security, and no qualified successor is
appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii)
such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor
is appointed by the Company within ninety (90) days after obtaining knowledge of such event, (iii)
the Company executes and delivers to the Trustee a Company Order stating that the Company elects to
terminate the book-entry system through the Depositary or (iv) an Event of Default shall have
occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii)
or (iv) above, the Trustee shall notify the Depositary and instruct the Depositary to notify all
owners of beneficial interests in such Global Security of the occurrence of such event and of the
availability of Securities to such owners of beneficial interests requesting the same. The Trustee
may conclusively rely, and be protected in relying, upon the written identification of the owners
of beneficial interests furnished by the Depositary, and shall not be liable for any delay
resulting from a delay by the Depositary. Upon the issuance of such Securities and the
registration in the Securities Register of such Securities in the names of the Holders of the
beneficial interests therein, the Trustees shall recognize such holders of beneficial interests as
Holders.

     (c) If any Global Security is to be exchanged for other Securities or canceled in part, or if
another Security is to be exchanged in whole or in part for a beneficial interest in any Global
Security, then either (i) such Global Security shall be so surrendered for exchange or cancellation
as provided in this Article III or (ii) the principal amount thereof shall be reduced or
increased by an amount equal to (x) the portion thereof to be so exchanged or canceled, or (y) the
principal amount of such other Security to be so exchanged for a beneficial interest therein, as
the case may be, by means of an appropriate adjustment made on the records of the Securities
Registrar, whereupon the Trustee, in accordance with the Applicable Depositary Procedures, shall
instruct the Depositary or its authorized representative to make a corresponding adjustment to its
records. Upon any such surrender or adjustment of a Global Security by the Depositary, accompanied
by registration instructions, the Company shall execute and the Trustee shall authenticate and
deliver any Securities issuable in exchange for such Global Security (or any portion thereof) in
accordance with the instructions of the Depositary. The Trustee shall not be liable for any delay
in delivery of such instructions and may conclusively rely on, and shall be fully protected in
relying on, such instructions.

     (d) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof shall be authenticated and
delivered in the form of, and shall be, a Global Security, unless such Security is registered in
the name of a Person other than the Depositary for such Global Security or a nominee thereof.

     (e) Reserved.

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     (f) The Depositary or its nominee, as the registered owner of a Global Security, shall be the
Holder of such Global Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant to the Applicable
Depositary Procedures. Accordingly, any such owner’s beneficial interest in a Global Security
shall be shown only on, and the transfer of such interest shall be effected only through, records
maintained by the Depositary or its nominee or its Depositary Participants. The Securities
Registrar and the Trustee shall be entitled to deal with the Depositary for all purposes of this
Indenture relating to a Global Security (including the payment of principal and interest thereon
and the giving of instructions or directions by owners of beneficial interests therein and the
giving of notices) as the sole Holder of the Security and shall have no obligations to the owners
of beneficial interests therein. Neither the Trustee nor the Securities Registrar shall have any
liability in respect of any transfers effected by the Depositary.

     (g) The rights of owners of beneficial interests in a Global Security shall be exercised only
through the Depositary and shall be limited to those established by law and agreements between such
owners and the Depositary and/or its Depositary Participants.

     (h) No holder of any beneficial interest in any Global Security held on its behalf by a
Depositary shall have any rights under this Indenture with respect to such Global Security, and
such Depositary may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the owner of such Global Security for all purposes whatsoever. None of the Company, the
Trustee nor any agent of the Company or the Trustee will have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial ownership interests
of a Global Security or maintaining, supervising or reviewing any records relating to such
beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by a Depositary or impair, as between a
Depositary and such holders of beneficial interests, the operation of customary practices governing
the exercise of the rights of the Depositary (or its nominee) as Holder of any Security.

     SECTION 3.5. Registration, Transfer and Exchange Generally.

     (a) The Trustee shall cause to be kept at the Corporate Trust Office a register (the
“Securities Register”) in which the registrar and transfer agent with respect to the Securities
(the “Securities Registrar”), subject to such reasonable regulations as it may prescribe, shall
provide for the registration of Securities and of transfers and exchanges of Securities. The
Trustee shall at all times also be the Securities Registrar. The provisions of Article VI
shall apply to the Trustee in its role as Securities Registrar.

     (b) Subject to compliance with Section 2.2(b), upon surrender for registration of
transfer of any Security at the offices or agencies of the Company designated for that purpose the
Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of any authorized denominations of
like tenor and aggregate principal amount.

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     (c) At the option of the Holder, Securities may be exchanged for other Securities of any
authorized denominations, of like tenor and aggregate principal amount, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the
Securities that the Holder making the exchange is entitled to receive.

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

     (e) Every Security presented or surrendered for transfer or exchange shall (if so required by
the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Company and the Securities Registrar, duly executed by the Holder
thereof or such Holder’s attorney duly authorized in writing.

     (f) No service charge shall be made to a Holder for any transfer or exchange of Securities,
but the Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Securities.

     (g) Neither the Company nor the Trustee shall be required pursuant to the provisions of this
Section 3.5 (g): (i) to issue, register the transfer of or exchange any Security within
fifteen (15) days prior to an Interest Payment Date or during a period beginning at the opening of
business fifteen (15) days before the day of selection for redemption of Securities pursuant to
Article XI and ending at the close of business on-the day of mailing of the notice of
redemption or (ii) to register the transfer of or exchange any Security so selected for redemption
in whole or in part, except, in the case of any such Security to be redeemed in part, any portion
thereof not to be redeemed.

     (h) The Company shall designate an office or offices or agency or agencies where Securities
may be surrendered for registration or transfer or exchange. The Company initially designates the
Corporate Trust Office as its office and agency for such purposes. The Company shall give prompt
written notice to the Trustee and to the Holders of any change in the location of any such office
or agency.

     (i) The Securities may only be transferred to a “Qualified Purchaser” as such term is defined
in Section 2(a)(51) of the Investment Company Act.

     (j) Neither the Trustee nor the Securities Registrar shall be responsible for ascertaining
whether any transfer hereunder complies with the registration provisions of or any exemptions from
the Securities Act, applicable state securities laws or the applicable laws of any other
jurisdiction, ERISA, the Code, or the Investment Company Act; provided that if a certificate is
specifically required by the express terms of this Section 3.5 to be delivered to the Trustee or
the Securities Registrar by a Holder or transferee of a Security, the Trustee and the Securities
Registrar shall be under a duty to receive and examine the same to determine whether or not the
certificate substantially conforms on its face to the requirements of this Indenture and

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shall promptly notify the party delivering the same if such certificate does not comply with
such terms.

     SECTION 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

     (a) If any mutilated Security is surrendered to the Trustee together with such security or
indemnity as may be required by the Trustee to save the Company and the Trustee harmless, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new
Security of like tenor and aggregate principal amount and bearing a number not contemporaneously
outstanding.

     (b) If there shall be delivered to the Trustee (i) evidence to its satisfaction of the
destruction, loss or theft of any Security and (ii) such security or indemnity as may be required
by it to save each of the Company and the Trustee harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company
shall execute and upon its written request the Trustee shall authenticate and deliver, in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and aggregate principal
amount as such destroyed, lost or stolen Security, and bearing a number not contemporaneously
outstanding.

     (c) If any such mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new Security, pay such
Security.

     (d) Upon the issuance of any new Security under this Section 3.6, the Company or the
Trustee may require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith.

     (e) Every new Security issued pursuant to this Section 3.6 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

     (f) The provisions of this Section 3.6 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.

     SECTION 3.7. Persons Deemed Owners.

     The Company, the Trustee and any agent of the Company or the Trustee shall treat the Person in
whose name any Security is registered as the owner of such Security for the purpose of receiving
payment of principal of and any interest on such Security and for all other purposes whatsoever,
and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected
by notice to the contrary.

     SECTION 3.8. Cancellation.

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     All Securities surrendered for payment, redemption, transfer or exchange shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee, and any such Securities and
Securities surrendered directly to the Trustee for any such purpose shall be promptly canceled by
it. The Company may at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever,
and all Securities so delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided in this Section
3.8, except as expressly permitted by this Indenture. All canceled Securities shall be
retained or disposed of by the Trustee in accordance with its customary practices and the Trustee
shall deliver to the Company a certificate of such disposition.

     SECTION 3.9. Reserved.

     SECTION 3.10. Reserved.

     SECTION 3.11. Agreed Tax Treatment.

     Each Security issued hereunder shall provide that the Company and, by its acceptance or
acquisition of a Security or a beneficial interest therein, the Holder of, and any Person that
acquires a direct or indirect beneficial interest in, such Security, intend and agree to treat such
Security as indebtedness of the Company for United States Federal, state and local tax purposes.
The provisions of this Indenture shall be interpreted to further this intention and agreement of
the parties.

     SECTION 3.12. CUSIP Numbers.

     The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” numbers in notices of redemption and other similar or related
materials as a convenience to Holders; provided that any such notice or other materials may state
that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of redemption or other materials and that reliance may be
placed only on the other identification numbers printed on the Securities, and any such redemption
shall not be affected by any defect in or omission of such numbers.

ARTICLE IV

SATISFACTION AND DISCHARGE

     SECTION 4.1. Satisfaction and Discharge of Indenture.

     This Indenture shall, upon Company Request, cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for and as otherwise provided in this Section 4.1) and the Trustee, on demand of and at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture, when

     (a) either

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     (i) all Securities theretofore authenticated and delivered (other than (A) Securities
that have been mutilated, destroyed, lost or stolen and that have been replaced or paid as
provided in Section 3.6 and (B) Securities for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust as provided in Section 10.2) have been
delivered to the Trustee for cancellation; or

     (ii) all such Securities not theretofore delivered to the Trustee for cancellation

     (A) have become due and payable, or

     (B) will become due and payable at their Stated Maturity within one year of the
date of deposit, or

     (C) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the name, and at the expense, of the Company,

and the Company, in the case of subclause (ii)(A), (B) or (C) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust for such purpose (x) an amount in
the currency or currencies in which the Securities are payable, (y) Government Obligations
which through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than the due date of any payment, money
in an amount or (z) a combination thereof, in each case sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness
on such Securities not theretofore delivered to the Trustee for cancellation, for principal
and any premium and interest (including any Additional Interest) to the date of such deposit
(in the case of Securities that have become due and payable) or to the Stated Maturity (or
any date of principal repayment upon early maturity) or Redemption Date, as the case may be;

     (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel each stating that all conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 6.6, the obligations of the Company to any Authenticating Agent
under Section 6.11 and, if money shall have been deposited with the Trustee pursuant to
subclause (a)(ii) of this Section 4.1, the obligations of the Trustee under
Section 4.2 and Section 10.2(d) shall survive.

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     SECTION 4.2. Application of Trust Money.

     Subject to the provisions of Section 10.2(d), all money deposited with the Trustee
pursuant to Section 4.1 shall be held in trust and applied by the Trustee, in accordance
with the provisions of the Securities and this Indenture, to the payment in accordance with
Section 3.1, either directly or through any Paying Agent as the Trustee may determine, to
the Persons entitled thereto, of the principal and any premium and interest (including any
Additional Interest) for the payment of which such money or obligations have been deposited with or
received by the Trustee. Moneys held by the Trustee under this Section 4.2 shall not be
subject to the claims of holders of Senior Debt under Article XII.

ARTICLE V

REMEDIES

     SECTION 5.1. Events of Default.

     “Event of Default” means, wherever used herein with respect to the Securities, any one of the
following events (whatever the reason for such Event of Default and whether it shall 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):

     (a) default in the payment of any interest upon any Security, including any Additional
Interest in respect thereof, when it becomes due and payable, and continuance of such default for a
period of thirty (30) days; or

     (b) default in the payment of the principal of or any premium on any Security at its Maturity;
or

     (c) default in the performance, or breach, of any covenant or warranty of the Company in this
Indenture or the Exchange Agreement, and continuance of such default or breach for a period of
thirty (30) days after there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least twenty five percent (25%) in
aggregate principal amount of the Outstanding Securities a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder;

     (d) the entry by a court having jurisdiction in the premises of a decree or order that (i)
adjudges the Company a bankrupt or insolvent, (ii) is for relief against the Company as debtor in
an involuntary case, (iii) appoints a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial part of its property,
or (iv) orders the winding up or liquidation of its affairs, and the continuance of any such decree
or order for relief or any such other decree or order unstayed and in effect for a period of ninety
(90) consecutive days; or

     (e) the institution by the Company of proceedings to be adjudicated a bankrupt or insolvent,
or the consent by the Company to the institution of bankruptcy or insolvency

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proceedings against it, or the filing by the Company of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial part of its property,
or the making by it of a general assignment for the benefit of creditors, or the admission by it in
writing of its inability to pay its debts generally as they become due and its willingness to be
adjudicated a bankrupt or insolvent, or the taking of corporate action by the Company in
furtherance of any such action.

     SECTION 5.2. Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default occurs and is continuing, then and in every such case the Trustee
or the Holders of not less than twenty five percent (25%) in aggregate principal amount of the
Outstanding Securities may declare the principal amount of all the Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and
upon any such declaration the principal amount of and the accrued interest (including any
Additional Interest) on all the Securities shall become immediately due and payable.

     (b) At any time after such a declaration of acceleration with respect to Securities has been
made and before a judgment or decree for payment of the money due has been obtained by the Trustee
as hereinafter provided in this Article V, the Holders of a majority in aggregate principal
of amount of the Outstanding Securities, by written notice to the Trustee, may rescind and annul
such declaration and its consequences if:

     (i) the Company has paid or deposited with the Trustee a sum sufficient to pay:

     (A) all overdue installments of interest on all Securities,

     (B) any accrued Additional Interest on all Securities,

     (C) the principal of and any premium on any Securities that have become due
otherwise than by such declaration of acceleration and interest (including any
Additional Interest) thereon at the rate borne by the Securities, and

     (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee and its agents and
counsel; and

     (ii) all Events of Default with respect to Securities, other than the non-payment of
the principal of Securities that has become due solely by such acceleration, have been cured
or waived as provided in Section 5.13.

No such rescission shall affect any subsequent default or impair any right consequent thereon.

     SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

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(a) The Company covenants that if

     (i) default is made in the payment of any installment of interest (including any
Additional Interest) on any Security when such interest becomes due and payable and such
default continues for a period of thirty (30) days, or

     (ii) default is made in the payment of the principal of and any premium on any Security
at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of
such Securities, the whole amount then due and payable on such Securities for principal and any
premium and interest (including any Additional Interest) and, in addition thereto, all amounts
owing the Trustee under Section 6.6.

     (b) If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its
own name and as trustee of an express trust, may institute a judicial proceeding for the collection
of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and
may enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon the Securities, wherever situated.

     (c) If an Event of Default with respect to Securities occurs and is continuing, the Trustee
may in its discretion proceed to protect and enforce its rights and the rights of the Holders of
Securities by such appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

     SECTION 5.4. Trustee May File Proofs of Claim.

     In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or similar judicial proceeding relative to the Company (or any other
obligor upon the Securities), its property or its creditors, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized
hereunder in order to have claims of the Holders and the Trustee allowed in any such proceeding.
In particular, the Trustee shall be authorized to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to
first pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts owing the Trustee, any
predecessor Trustee and other Persons under Section 6.6.

     SECTION 5.5. Trustee May Enforce Claim Without Possession of Securities.

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     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, subject
to Article XII and after provision for the payment of all the amounts owing the Trustee,
any predecessor Trustee and other Persons under Section 6.6, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been recovered.

     SECTION 5.6. Application of Money Collected.

     Any money or property collected or to be applied by the Trustee with respect to the Securities
pursuant to this Article V shall be applied in the following order, at the date or dates
fixed by the Trustee and, in case of the distribution of such money or property on account of
principal or any premium or interest (including any Additional Interest), upon presentation of the
Securities and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee, any predecessor Trustee and other
Persons under Section 6.6;

     SECOND: To the payment of all Senior Debt of the Company if and to the extent required by
Article XII;

     THIRD: Subject to Article XII, to the payment of the amounts then due and unpaid upon
the Securities for principal and any premium and interest (including any Additional Interest) in
respect of which or for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on the Securities for
principal and any premium and interest (including any Additional Interest), respectively; and

     FOURTH: The balance, if any, to the Person or Persons entitled thereto.

     SECTION 5.7. Limitation on Suits.

     Subject to Section 5.8, no Holder of any Securities shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a
custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) or for
any other remedy hereunder, unless:

     (a) such Holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities;

     (b) the Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;

     (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs,
expenses and liabilities to be incurred in compliance with such request;

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     (d) the Trustee after its receipt of such notice, request and offer of indemnity has failed to
institute any such proceeding for sixty (60) days; and

     (e) no direction inconsistent with such written request has been given to the Trustee during
such sixty (60)-day period by the Holders of a majority in aggregate principal amount of the
Outstanding Securities;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing itself of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other Holders of Securities, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable benefit of all such
Holders.

     SECTION 5.8. Unconditional Right of Holders to Receive Principal, Premium, if any, and
Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium on such Security at its Maturity and payment of interest (including any Additional
Interest) on such Security when due and payable and to institute suit for the enforcement of any
such payment, and such right shall not be impaired without the consent of such Holder.

     SECTION 5.9. Restoration of Rights and Remedies.

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or such Holder, then and in every such case the Company,
the Trustee and such Holders shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter all rights and
remedies of the Trustee and such Holder shall continue as though no such proceeding had been
instituted.

     SECTION 5.10. Rights and Remedies Cumulative.

     Except as otherwise provided in Section 3.6(f), no right or remedy herein conferred
upon or reserved to the Trustee or the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

     SECTION 5.11. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or any Holder of any Securities to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the Trustee or to the Holders may be exercised from

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time to time, and as often as may be deemed expedient, by the Trustee or the Holders as the
case may be.

     SECTION 5.12. Control by Holders.

     The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee;
provided that:

     (a) such direction shall not be in conflict with any rule of law or with this Indenture,

     (b) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction, and

     (c) subject to the provisions of Section 6.2, the Trustee shall have the right to
decline to follow such direction if a Responsible Officer or Officers of the Trustee shall, in good
faith, reasonably determine that the proceeding so directed would be unjustly prejudicial to the
Holders not joining in any such direction or would involve the Trustee in personal liability.

     SECTION 5.13. Waiver of Past Defaults.

     (a) The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities may waive any past Event of Default hereunder and its consequences except an Event of
Default:

     (i) in the payment of the principal of or any premium or interest (including any
Additional Interest) on any Outstanding Security (unless such Event of Default has been
cured and the Company has paid to or deposited with the Trustee a sum sufficient to pay all
installments of interest (including any Additional Interest) due and past due and all
principal of and any premium on all Securities due otherwise than by acceleration), or

     (ii) in respect of a covenant or provision hereof that under Article IX cannot
be modified or amended without the consent of each Holder of any Outstanding Security.

     (b) Any such waiver shall be deemed to be on behalf of the Holders of all the Outstanding
Securities.

     (c) Upon any such waiver, such Event of Default shall cease to exist and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Event of Default or impair any right consequent
thereon.

     SECTION 5.14. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by his or her acceptance
thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit against

- 36 -

 

the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section 5.14 shall not
apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than ten percent (10%) in aggregate principal amount of the
Outstanding Securities, or to any suit instituted by any Holder for the enforcement of the payment
of the principal of or any premium on the Security after the Stated Maturity or any interest
(including any Additional Interest) on any Security after it is due and payable.

     SECTION 5.15. Waiver of Usury, Stay or Extension Laws.

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

ARTICLE VI

THE TRUSTEE

     SECTION 6.1. Corporate Trustee Required.

     There shall at all times be a Trustee hereunder with respect to the Securities. The Trustee
shall be a corporation or national banking association organized and doing business under the laws
of the United States or of any state thereof, authorized to exercise corporate trust powers, having
a combined capital and surplus of at least $50,000,000, subject to supervision or examination by
Federal or state authority and having an office within the United States. If such entity publishes
reports of condition at least annually, pursuant to law or to the requirements of such supervising
or examining authority, then, for the purposes of this Section 6.1, the combined capital
and surplus of such entity shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 6.1, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article VI.

     SECTION 6.2. Certain Duties and Responsibilities.

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

     (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

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     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; provided that in the case of any such certificates or opinions that by any
provision hereof are specifically required to be furnished to the Trustee, the Trustee shall
be under a duty to examine the same to determine whether or not they substantially conform
on their face to the requirements of this Indenture.

     (b) If an Event of Default known to the a Responsible Officer of Trustee has occurred and is
continuing, the Trustee shall, prior to the receipt of directions, if any, from the Holders of at
least a majority in aggregate principal amount of the Outstanding Securities, exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of care and skill in its
exercise, as a prudent person would exercise or use under the circumstances in the conduct of such
person’s own affairs.

     (c) Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 6.2.
To the extent that, at law or in equity, the Trustee has duties and liabilities relating to the
Holders, the Trustee shall not be liable to any Holder for the Trustee’s good faith reliance on the
provisions of this Indenture. The provisions of this Indenture, to the extent that they restrict
the duties and liabilities of the Trustee otherwise existing at law or in equity, are agreed by the
Company and the Holders to replace such other duties and liabilities of the Trustee.

     (d) No provisions of this Indenture shall be construed to relieve the Trustee from liability
with respect to matters that are within the authority of the Trustee under this Indenture for its
own grossly negligent action, grossly negligent failure to act or willful misconduct, except that:

     (i) the Trustee shall not be liable for any error or judgment made in good faith by an
authorized officer of the Trustee, unless it shall be proved that the Trustee was negligent
in ascertaining the pertinent facts;

     (ii) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of at least a
majority in aggregate principal amount of the Outstanding Securities; and

     (iii) the Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed in writing with the Company and money held by the
Trustee in trust hereunder need not be segregated from other funds except to the extent
required by law.

     SECTION 6.3. Notice of Defaults.

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     Within ninety (90) days after the occurrence of any default actually known to a Responsible
Officer of the Trustee, the Trustee shall give the Holders notice of such default unless such
default shall have been cured or waived; provided that except in the case of a default in the
payment of the principal of or any premium or interest on any Securities, the Trustee shall be
fully protected in withholding the notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the Trustee in good
faith determines that withholding the notice is in the interest of Holders of Securities; and
provided, further, that in the case of any default of the character specified in
Section 5.1(c), no such notice to Holders shall be given until at least thirty (30) days
after the occurrence thereof. For the purpose of this Section 6.3, the term “default”
means any event which is, or after notice or lapse of time or both would become, an Event of
Default.

     SECTION 6.4. Certain Rights of Trustee.

     Subject to the provisions of Section 6.2:

     (a) the Trustee may conclusively rely and shall be fully protected in acting or refraining
from acting in good faith and in accordance with the terms hereof upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     (b) if (i) in performing its duties under this Indenture the Trustee is required to decide
between alternative courses of action, (ii) in construing any of the provisions of this Indenture
the Trustee finds ambiguous or inconsistent with any other provisions contained herein or (iii) the
Trustee is unsure of the application of any provision of this Indenture, then, except as to any
matter as to which the Holders are entitled to decide under the terms of this Indenture, the
Trustee shall deliver a notice to the Company requesting the Company’s written instruction as to
the course of action to be taken and the Trustee shall take such action, or refrain from taking
such action, as the Trustee shall be instructed in writing to take, or to refrain from taking, by
the Company; provided that if the Trustee does not receive such instructions from the Company
within ten (10) Business Days after it has delivered such notice or such reasonably shorter period
of time set forth in such notice the Trustee may, but shall be under no duty to, take such action,
or refrain from taking such action, as the Trustee shall deem advisable and in the best interests
of the Holders, in which event the Trustee shall have no liability except for its own negligence,
bad faith or willful misconduct;

     (c) any request or direction of the Company shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced
by a Board Resolution;

     (d) the Trustee may consult with counsel (which counsel may be counsel to the Trustee, the
Company or any of its Affiliates, and may include any of its employees) and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;

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     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory
to it against the costs, expenses (including reasonable attorneys’ fees and expenses) and
liabilities that might be incurred by it in compliance with such request or direction, including
reasonable advances as may be requested by the Trustee;

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, indenture, note or other paper or document, but the Trustee in its discretion
may make such inquiry or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys, custodians or nominees and the
Trustee shall not be responsible for any misconduct or negligence on the part of any such agent,
attorney, custodian or nominee appointed with due care by it hereunder;

     (h) whenever in the administration of this Indenture the Trustee shall deem it desirable to
receive instructions with respect to enforcing any remedy or right or taking any other action with
respect to enforcing any remedy or right hereunder, the Trustee (i) may request instructions from
the Holders (which instructions may only be given by the Holders of the same aggregate principal
amount of Outstanding Securities as would be entitled to direct the Trustee under this Indenture in
respect of such remedy, right or action), (ii) may refrain from enforcing such remedy or right or
taking such action until such instructions are received and (iii) shall be protected in acting in
accordance with such instructions;

     (i) except as otherwise expressly provided by this Indenture, the Trustee shall not be under
any obligation to take any action that is discretionary under the provisions of this Indenture;

     (j) without prejudice to any other rights available to the Trustee under applicable law, when
the Trustee incurs expenses or renders services in connection with any bankruptcy, insolvency or
other proceeding referred to in clauses (d) or (e) of the definition of Event of Default, such
expenses (including legal fees and expenses of its agents and counsel) and the compensation for
such services are intended to constitute expenses of administration under any bankruptcy laws or
law relating to creditors rights generally;

     (k) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officers’ Certificate addressing such matter, which, upon
receipt of such request, shall be promptly delivered by the Company;

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     (l) the Trustee shall not be charged with knowledge of any Event of Default unless either
(i) a Responsible Officer of the Trustee shall have actual knowledge or (ii) the Trustee shall have
received written notice thereof from the Company or a Holder; and

     (m) in the event that the Trustee is also acting as Paying Agent, Authenticating Agent,
Calculation Agent or Securities Registrar hereunder, the rights and protections afforded to the
Trustee pursuant to this Article VI shall also be afforded such Paying Agent,
Authenticating Agent, Calculation Agent or Securities Registrar.

     SECTION 6.5. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and may otherwise deal with the Company with the same rights it would have if it were
not Trustee, Authenticating Agent, Paying Agent, Securities Registrar or such other agent.

     SECTION 6.6. Compensation; Reimbursement; Indemnity.

     (a) The Company agrees:

     (i) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder in such amounts as the Company and the Trustee shall agree from
time to time;

     (ii) to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses and disbursements
of its agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence, bad faith or willful misconduct; and

     (iii) to the fullest extent permitted by applicable law, to indemnify the Trustee and
its Affiliates, and their officers, directors, shareholders, agents, representatives and
employees for, and to hold them harmless against, any loss, damage, liability, tax (other
than income, franchise or other taxes imposed on amounts paid pursuant to (i) or (ii)
hereof), penalty, expense, action, suit or claim of any kind or nature whatsoever incurred
without gross negligence, bad faith or willful misconduct on its part arising out of or in
connection with the acceptance or administration of this Indenture or the performance of the
Trustee’s duties hereunder, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its powers or
duties hereunder.

     (b) To secure the Company’s payment obligations in this Section 6.6, the Company
hereby grants and pledges to the Trustee and the Trustee shall have a lien prior to the Securities
on all money or property held or collected by the Trustee, other than money or property held in
trust to pay principal and interest on particular Securities. Such lien shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

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     (c) The obligations of the Company under this Section 6.6 shall survive the
satisfaction and discharge of this Indenture and the earlier resignation or removal of the Trustee.

     (d) In no event shall the Trustee be liable for any indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits,
even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the
form of action.

     (e) In no event shall the Trustee be liable for any failure or delay in the performance of its
obligations hereunder because of circumstances beyond its control, including, but not limited to,
acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
government action, including any laws, ordinances, regulations, governmental action or the like
which delay, restrict or prohibit the providing of the services contemplated by this Indenture.

     SECTION 6.7. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article VI shall become effective until the acceptance of appointment by
the successor Trustee under Section 6.8.

     (b) The Trustee may resign at any time by giving written notice thereof to the Company.

     (c) Unless an Event of Default shall have occurred and be continuing, the Trustee may be
removed, subject to Section 6.7(d), at any time by the Company by a Board Resolution. If an Event
of Default shall have occurred and be continuing, the Trustee may be removed by the Act of the
Holders of at least a majority in aggregate principal amount of the Outstanding Securities,
delivered to the Trustee and the Company.

     (d) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any reason, at a time when no Event of Default shall have
occurred and be continuing, the Company, by a Board Resolution, shall promptly appoint a successor
Trustee, subject to the consent of the Holders of not less than a majority in principal amount of
the Outstanding Securities, and such successor Trustee and the retiring Trustee shall comply with
the applicable requirements of Section 6.8. If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of Trustee for any reason,
when an Event of Default shall have occurred and be continuing, the Holders, by Act of the Holders
of a majority in aggregate principal amount of the Outstanding Securities, shall promptly appoint a
successor Trustee, and such successor Trustee and the retiring Trustee shall comply with the
applicable requirements of Section 6.8. If no successor Trustee shall have been so
appointed by the Company and accepted appointment within sixty (60) days after the giving of a
notice of resignation by the Trustee or the removal of the Trustee in the manner required by
Section 6.8, any Holder who has been a bona fide Holder for at least six months (or, if the
Securities have been Outstanding for less than six (6) months, the entire period of such lesser
time) may, on behalf of such Holder and all others similarly situated, and any resigning Trustee

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may, at the expense of the Company, petition any court of competent jurisdiction for the
appointment of a successor Trustee.

     SECTION 6.8. Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee, each successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall,
upon payment of its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer
and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder.

     (b) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
rights, powers and trusts referred to in paragraph (a) of this Section 6.8.

     (c) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article VI.

     SECTION 6.9. Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder, without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that such Person shall be otherwise qualified and eligible under this Article VI.
In case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation or as otherwise provided above in this
Section 6.9 to such authenticating Trustee may adopt such authentication and deliver the
Securities so authenticated, and in case any Securities shall not have been authenticated, any
successor to the Trustee may authenticate such Securities either in the name of any predecessor
Trustee or in the name of such successor Trustee, and in all cases the certificate of
authentication shall have the full force which it is provided anywhere in the Securities or in this
Indenture that the certificate of the Trustee shall have.

     SECTION 6.10. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.

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     SECTION 6.11. Appointment of Authenticating Agent.

     (a) The Trustee may appoint an Authenticating Agent or Agents with respect to the Securities,
which shall be authorized to act on behalf of the Trustee to authenticate Securities issued upon
original issue and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 3.6, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall
be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating
Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a
corporation or national banking association organized and doing business under the laws of the
United States of America, or of any State or Territory thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal or state authority.
If such Authenticating Agent publishes reports of condition at least annually pursuant to law or to
the requirements of said supervising or examining authority, then for the purposes of this
Section 6.11 the combined capital and surplus of such Authenticating Agent shall be deemed
to be its combined capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section 6.11, such Authenticating Agent shall resign immediately in
the manner and with the effect specified in this Section 6.11.

     (b) Any Person into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or consolidation to which
such Authenticating Agent shall be a party, or any Person succeeding to all or substantially all of
the corporate trust business of an Authenticating Agent shall be the successor Authenticating Agent
hereunder, provided such Person shall be otherwise eligible under this Section 6.11,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

     (c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon
receiving such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section 6.11, the Trustee may appoint a successor Authenticating Agent eligible under the
provisions of this Section 6.11, which shall be acceptable to the Company, and shall give
notice of such appointment to all Holders. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent.

     (d) The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.11 in such amounts as the Company and
the Authenticating Agent shall agree from time to time.

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     (e) If an appointment of an Authenticating Agent is made pursuant to this
Section 6.11, the Securities may have endorsed thereon, in addition to the Trustee’s
certificate of authentication, an alternative certificate of authentication in the following form:

This is one of the Securities referred to in the within mentioned Indenture.

	 	 	 	 	 	 	 
	Dated:	 	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authenticating Agent
	 	 

ARTICLE VII

HOLDER’S LISTS AND REPORTS BY COMPANY

     SECTION 7.1. Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee:

     (a) semiannually, on or before June 30 and December 31 of each year, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders as of a date not more
than fifteen (15) days prior to the delivery thereof, and

     (b) at such other times as the Trustee may request in writing, within thirty (30) days after
the receipt by the Company of any such request, a list of similar form and content as of a date not
more than fifteen (15) days prior to the time such list is furnished,

in each case to the extent such information is in the possession or control of the Company and has
not otherwise been received by the Trustee in its capacity as Securities Registrar.

     SECTION 7.2. Preservation of Information, Communications to Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity
as Securities Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished.

     (b) The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee,
shall be as provided in the Trust Indenture Act.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of

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them shall be held accountable by reason of the disclosure of information as to the names and
addresses of the Holders made pursuant to the Trust Indenture Act.

     SECTION 7.3. Reports by Company.

     (a) The Company shall furnish to the Holders and to prospective purchasers of Securities, upon
their request, the information required to be furnished pursuant to Rule 144A(d)(4) under the
Securities Act. The delivery requirement set forth in the preceding sentence may be satisfied by
compliance with Section 7.3(b).

     (b) The Company shall furnish to each of (i) the Trustee, (ii) the Holders and to subsequent
holders of Securities, (iii) Taberna Capital Management, LLC, 450 Park Avenue, New York, New York
10022, Attn: Raphael Licht (or such other address as designated by Taberna Capital Management,
LLC) and (iv) any beneficial owner of the Securities reasonably identified to the Company (which
identification may be made either by such beneficial owner or by Taberna Capital Management, LLC),
a duly completed and executed certificate substantially and substantively in the form attached
hereto as Exhibit A, including the financial statements referenced in such Exhibit, which
certificate and financial statements shall be so furnished by the Company not later than forty-five
(45) days after the end of each of the first three fiscal quarters of each fiscal year of the
Company and not later than ninety (90) days after the end of each fiscal year of the Company.

     (c) If the Company intends to file its annual and quarterly information with the Securities
and Exchange Commission (the “Commission”) in electronic form pursuant to Regulation S-T of the
Commission using the Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”)
system, the Company shall notify the Trustee in the manner prescribed herein of each such annual
and quarterly filing. The Trustee is hereby authorized and directed to access the EDGAR system for
purposes of retrieving the financial information so filed. Compliance with the foregoing shall
constitute delivery by the Company of its financial statements to the Trustee in compliance with
the provisions of Section 314(a) of the Trust Indenture Act, if applicable. The Trustee shall have
no duty to search for or obtain any electronic or other filings that the Company makes with the
Commission, regardless of whether such filings are periodic, supplemental or otherwise. Delivery
of reports, information and documents to the Trustee pursuant to this Section 7.3(c) shall
be solely for purposes of compliance with this Section 7.3(c) and, if applicable, with
Section 314(a) of the Trust Indenture Act and shall satisfy the Company’s obligation with respect
to the subject of such filing under Section 7.3(b) hereof. The Trustee’s receipt of such
reports, information and documents shall not constitute notice to it of the content thereof or any
matter determinable from the content thereof, including the Company’s compliance with any of its
covenants hereunder, as to which the Trustee is entitled to rely upon Officers’ Certificates.

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     SECTION 8.1. Company May Consolidate, Etc., Only on Certain Terms.

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     The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, and no Person shall
consolidate with or merge into the Company or convey, transfer or lease its properties and assets
substantially as an entirety to the Company, unless:

     (a) if the Company shall consolidate with or merge into another Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, the entity formed by
such consolidation or into which the Company is merged or the Person that acquires by conveyance or
transfer, or that leases, the properties and assets of the Company substantially as an entirety
shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee,
in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of
and any premium and interest (including any Additional Interest) on all the Securities and the
performance of every covenant of this Indenture on the part of the Company to be performed or
observed and such entity shall be organized and existing under the laws of the United States of
America or any State or Territory thereof or the District of Columbia unless it has (1) agreed to
make all payments due in respect of the Securities without withholding or deduction for, or on
account of, any taxes, duties, assessments or other governmental charges under the laws or
regulations of the jurisdiction of organization or residence (for tax purposes) of such entity or
any political subdivision or taxing authority thereof or therein unless required by applicable law,
in which case such entity shall have agreed to pay such additional amounts as shall be required so
that the net amounts received and retained by the Holders of such Securities after payment of all
taxes (including withholding taxes), duties, assessments or other governmental charges, will be
equal to the amounts that such Holders would have received and retained had no such taxes
(including withholding taxes), duties, assessments or other governmental charges been imposed;
(2) irrevocably and unconditionally consented and submitted to the jurisdiction of any United
States federal court or New York state court, in each case located in the Borough of Manhattan, The
City of New York, in respect of any action, suit or proceeding against it arising out of or in
connection with this Indenture or the Securities and irrevocably and unconditionally waived, to the
fullest extent permitted by law, any objection to the laying of venue in any such court or that any
such action, suit or proceeding has been brought in an inconvenient forum; and (3) irrevocably
appointed an agent in The City of New York for service of process in any action, suit or proceeding
referred to in clause (2) above;

     (b) immediately after giving effect to such transaction, no Event of Default, and no event
that, after notice or lapse of time, or both, would constitute an Event of Default, shall have
happened and be continuing; and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, any such supplemental
indenture comply with this Article VIII and that all conditions precedent herein provided
for relating to such transaction have been complied with; and the Trustee may rely upon such
Officers’ Certificate and Opinion of Counsel as conclusive evidence that such transaction complies
with this Section 8.1.

     SECTION 8.2. Successor Company Substituted.

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     (a) Upon any consolidation or merger by the Company with or into any other Person, or any
conveyance, transfer or lease by the Company of its properties and assets substantially as an
entirety to any Person in accordance with Section 8.1 and the execution and delivery to the
Trustee of the supplemental indenture described in Section 8.1(a), the successor entity
formed by such consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture with the same effect as if such successor Person had
been named as the Company herein; and in the event of any such conveyance or transfer, following
the execution and delivery of such supplemental indenture, the Company shall be discharged from all
obligations and covenants under the Indenture and the Securities.

     (b) Such successor Person may cause to be executed, and may issue either in its own name or in
the name of the Company, any or all of the Securities issuable hereunder that theretofore shall not
have been signed by the Company and delivered to the Trustee; and, upon the order of such successor
Person instead of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities that
previously shall have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities that such successor-Person thereafter shall cause to be executed
and delivered to the Trustee on its behalf. All the Securities so issued shall in all respects
have the same legal rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture.

     (c) In case of any such consolidation, merger, sale, conveyance or lease, such changes in
phraseology and form may be made in the Securities thereafter to be issued as may be appropriate to
reflect such occurrence.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     SECTION 9.1. Supplemental Indentures without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto, in form reasonably satisfactory to the Trustee, for any of the following purposes:

     (a) to evidence the succession of another Person to the Company, and the assumption by any
such successor of the covenants of the Company herein and in the Securities; or

     (b) to evidence and provide for the acceptance of appointment hereunder by a successor
trustee; or

     (c) to cure any ambiguity, to correct or supplement any provision herein that may be defective
or inconsistent with any other provision herein, or to make or amend any other provisions with
respect to matters or questions arising under this Indenture, which shall not be inconsistent with
the other provisions of this Indenture, provided that such action pursuant to this clause (c) shall
not adversely affect in any material respect the interests of any Holders; or

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     (d) to comply with the rules and regulations of any securities exchange or automated quotation
system on which any of the Securities may be listed, traded or quoted; or

     (e) to add to the covenants, restrictions or obligations of the Company or to add to the
Events of Default, provided that such action pursuant to this clause (c) shall not adversely affect
in any material respect the interests of any Holders; or

     (f) to modify, eliminate or add to any provisions of the Indenture or the Securities to such
extent as shall be necessary to ensure that the Securities are treated as indebtedness of the
Company for United States Federal income tax purposes, provided that such action pursuant to this
clause (f) shall not adversely affect in any material respect the interests of any Holders.

     SECTION 9.2. Supplemental Indentures with Consent of Holders.

     (a) Subject to Section 9.1, with the consent of the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities, by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and
the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Securities under this Indenture;
provided that no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Security,

     (i) change the Stated Maturity of the principal or any premium of any Security or
change the date of payment of any installment of interest (including any Additional
Interest) on any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof or change the place of payment
where, or the coin or currency in which, any Security or interest thereon is payable, or
restrict or impair the right to institute suit for the enforcement of any such payment on or
after such date, or

     (ii) reduce the percentage in aggregate principal amount of the Outstanding Securities,
the consent of whose Holders is required for any such supplemental indenture, or the consent
of whose Holders is required for any waiver of compliance with any provision of this
Indenture or of defaults hereunder and their consequences provided for in this Indenture, or

     (iii) modify any of the provisions of this Section 9.2, Section 5.13 or
Section 10.7, except to increase any percentage in aggregate principal amount of the
Outstanding Securities, the consent of whose Holders is required for any reason, or to
provide that certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Security.

     (b) It shall not be necessary for any Act of Holders under this Section 9.2 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     SECTION 9.3. Execution of Supplemental Indentures.

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     In executing or accepting the additional trusts created by any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and shall be fully protected in conclusively
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture, and that all conditions
precedent herein provided for relating to such action have been complied with. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture that affects the
Trustee’s own rights, duties, indemnities or immunities under this Indenture or otherwise. Copies
of the final form of each supplemental indenture shall be delivered by the Trustee at the expense
of the Company to each Holder promptly after the execution thereof.

     SECTION 9.4. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article IX, this Indenture
shall be modified in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

     SECTION 9.5. Reference in Securities to Supplemental Indentures.

     Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and shall if required by the Company, bear a notation in
form approved by the Company as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities so modified as to conform, in the opinion of the
Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities.

ARTICLE X

COVENANTS

     SECTION 10.1. Payment of Principal, Premium, if any, and Interest.

     The Company covenants and agrees for the benefit of the Holders of the Securities that it will
duly and punctually pay the principal of and any premium and interest (including any Additional
Interest) on the Securities in accordance with the terms of the Securities and this Indenture.

     SECTION 10.2. Money for Security Payments to be Held in Trust.

     (a) Whenever the Company shall have one or more Paying Agents, it will, prior to 10:00 a.m.,
New York City time, on each due date of the principal of or any premium or interest (including any
Additional Interest) on any Securities, deposit with such Paying Agent a sum sufficient to pay such
amount, such sum to be held as provided in the Trust Indenture Act and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of its failure to so act.

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     (b) The Company will cause each Paying Agent for the Securities other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee (who by executing and delivering this Indenture agrees to be so bound), subject to the
provisions of this Section 10.2, that such Paying Agent will (i) comply with the provisions
of this Indenture and the Trust Indenture Act applicable to it as a Paying Agent and (ii) during
the continuance of any default by the Company (or any other obligor upon the Securities) in the
making of any payment in respect of the Securities, upon the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of
the Securities.

     (c) The Company may at any time, for the purpose of obtaining the satisfaction and discharge
of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be
held by the Trustee upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent
shall be released from all further liability with respect to such money.

     (d) Any money deposited with the Trustee or any Paying Agent for the payment of the principal
of and any premium or interest (including any Additional Interest) on any Security and remaining
unclaimed for two years after such principal and any premium or interest has become due and payable
shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be paid on Company Request to the Company, or (if then held by the Company)
shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City of New York, notice
that such money remains unclaimed and that, after a date specified therein, which shall not be less
than thirty (30) days from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Company.

     SECTION 10.3. Statement as to Compliance.

     The Company shall deliver to the Trustee, within one hundred and twenty (120) days after the
end of each fiscal year of the Company ending after the date hereof, an Officers’ Certificate
covering the preceding calendar year, stating whether or not to the knowledge of the signers
thereof the Company is in default in the performance or observance of any of the terms, provisions
and conditions of this Indenture (without regard to any period of grace or requirement of notice
provided hereunder), and if the Company shall be in default, specifying all such defaults and the
nature and status thereof of which they may have knowledge.

     SECTION 10.4. Calculation Agent.

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     (a) The Company hereby agrees that for so long as any of the Securities remain Outstanding,
there will at all times be an agent appointed to calculate LIBOR in respect of each Interest
Payment Date in accordance with the terms of Schedule A (the “Calculation Agent”). The
Company has initially appointed the Trustee as Calculation Agent for purposes of determining LIBOR
for each Interest Payment Date. The Calculation Agent may be removed by the Company at any time.
If the Calculation Agent is unable or unwilling to act as such or is removed by the Company, the
Company will promptly appoint as a replacement Calculation Agent the London office of a leading
bank which is engaged in transactions in Eurodollar deposits in the international Eurodollar market
and which does not control or is not controlled by or under common control with the Company or its
Affiliates. The Calculation Agent may not resign its duties without a successor having been duly
appointed.

     (b) The Calculation Agent shall be required to agree that, as soon as possible after 11:00
a.m. (London time) on each LIBOR Determination Date (as defined in Schedule A), but in no
event later than 11:00 a.m. (London time) on the Business Day immediately following each LIBOR
Determination Date, the Calculation Agent will calculate the interest rate (the interest payment
shall be rounded to the nearest cent, with half a cent being rounded upwards) for the related
Interest Payment Date, and will communicate such rate and amount to the Company, the Trustee, each
Paying Agent and the Depositary. The Calculation Agent will also specify to the Company the
quotations upon which the foregoing rates and amounts are based and, in any event, the Calculation
Agent shall notify the Company before 5:00 p.m. (London time) on each LIBOR Determination Date that
either: (i) it has determined or is in the process of determining the foregoing rates and amounts
or (ii) it has not determined and is not in the process of determining the foregoing rates and
amounts, together with its reasons therefor. The Calculation Agent’s determination of the
foregoing rates and amounts for any Interest Payment Date will (in the absence of manifest error)
be final and binding upon all parties. For the sole purpose of calculating the interest rate for
the Securities, “Business Day” shall be defined as any day on which dealings in deposits in Dollars
are transacted in the London interbank market.

     SECTION 10.5. Inspection of Books and Records; Access to Management Observation Rights.

     At any time after the date hereof until June 1, 2012, upon written notice from the Holders of
a majority of the aggregate principal amount of the Outstanding Securities at least five (5)
Business Days in advance, the Company shall permit such Holders or their designated representatives
(each, a “Designated Person”) to examine the books and records of account of the Company and its
subsidiaries with respect to information generally available to the public, and to discuss said
affairs, finances and accounts with, and to be advised as to the same by, such management
representatives of the Company and its subsidiaries as such Designated Persons may reasonably
request, either in person at the Company’s offices or telephonically, all at such reasonable times
and intervals during normal business hours as such Designated Persons may reasonably request, not
more often than once per calendar year should no Event of Default exist, and if an Event of Default
exists, not more often than once per calendar quarter, at the expense of the Company, which shall
not exceed $1,000 per visit.

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     SECTION 10.6. Additional Covenants.

     The Company covenants and agrees with each Holder of Securities that if an Event of Default
shall have occurred and be continuing, it shall not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any
of the Company’s Equity Interests, (ii) vote in favor of or permit or otherwise allow any of its
Subsidiaries to declare or pay any dividends or distributions on, or redeem, purchase, acquire or
make a liquidation payment with respect to or otherwise retire, any shares of any such Subsidiary’s
preferred stock or other Equity Interests entitling the holders thereof to a stated rate of return
(for the avoidance of doubt, whether such preferred stock or other Equity Interests are perpetual
or otherwise) other than the Company, or (iii) make any payment of principal of or any interest or
premium, if any, on or repay, repurchase or redeem any debt securities of the Company that rank
pari passu in all respects with or junior in interest to the Securities (other than
(A) repurchases, redemptions or other acquisitions of Equity Interests of the Company in connection
with any employment contract, benefit plan or other similar arrangement with or for the benefit of
any one or more employees, officers, directors or consultants, in connection with a dividend
reinvestment or stockholder stock purchase plan or in connection with the issuance of Equity
Interests of the Company (or securities convertible into or exercisable for such Equity Interests)
as consideration in an acquisition transaction entered into prior to the date of the event of
default (B) as a result of an exchange or conversion of any class or series of the Company’s Equity
Interests (or any Equity Interests of a Subsidiary of the Company) for any class or series of the
Company’s Equity Interests or of any class or series of the Company’s indebtedness for any class or
series of the Company’s Equity Interests, (C) the purchase of fractional interests in shares of the
Company’s Equity Interests pursuant to the conversion or exchange provisions of such Equity
Interests or the security being converted or exchanged, (D) any declaration of a dividend in
connection with any Rights Plan, the issuance of rights, stock or other property under any Rights
Plan or the redemption or repurchase of rights pursuant thereto or (E) any dividend in the form of
stock, warrants, options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on which the dividend
is being paid or ranks pan/ passu with or junior to such stock).

     SECTION 10.7. Waiver of Covenants.

     The Company may omit in any particular instance to comply with any covenant or condition
contained in Sections 10.5 and 10.6 if, before or after the time for such compliance, the
Holders of at least a majority in aggregate principal amount of the Outstanding Securities shall,
by Act of such Holders, either waive such compliance in such instance or generally waive compliance
with such covenant or condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company in respect of any such covenant or condition shall remain in full
force and effect.

     SECTION 10.8. Treatment of Securities.

     The Company will treat the Securities as indebtedness, and the amounts, other than payments of
principal, payable in respect of the principal amount of such Securities as interest, for all U.S.
federal income tax purposes. All payments in respect of the Securities will be made

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free and clear of U.S. withholding tax to any beneficial owner thereof that has provided an
Internal Revenue Service Form W-9 or W-8BEN (or any substitute or successor form) establishing its
U.S. or non-U.S. status for U.S. federal income tax purposes, or any other applicable form
establishing a complete exemption from U.S. withholding tax.

ARTICLE XI

REDEMPTION OF SECURITIES

     SECTION 11.1. Optional Redemption.

     The Company may, at its option, on or after June 1, 2012, redeem the Securities in whole at
any time or in part from time to time, at a Redemption Price equal to seventy-five percent (75%) of
the principal amount thereof (or of the redeemed portion thereof, as applicable), provided that (i)
such Redemption Price shall increase annually beginning on June 1, 2022 by an amount equal to one
and seven hundred eighty-five thousandths percent (1.785%) (e.g. 76.785% commencing on June 1,
2022, 78.57% commencing on June 1, 2023 and so on) and (ii) such Redemption Price shall be equal to
100% during the continuance of an Event of Default, together, in the case of any such redemption,
with accrued and unpaid interest, including any Additional Interest, through but excluding the date
fixed as the Redemption Date (the “Optional Redemption Price”).

     SECTION 11.2. Special Event Redemption.

     Prior to June 1, 2012 upon the occurrence and during the continuation of a Special Event, the
Company may, at its option, redeem the Securities, in whole but not in part, at a Redemption Price
equal to one hundred seven and one half percent (107.5%) of the principal amount thereof, together,
in the case of any such redemption, with accrued interest, including any Additional Interest,
through but excluding the date fixed as the Redemption Date (the “Special Redemption Price”).

     SECTION 11.3. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities, in whole or in part, shall be evidenced
by or pursuant to a Board Resolution. In case of any redemption at the election of the Company,
the Company shall, not less than forty-five (45) days and not more than seventy-five (75) days
prior to the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee in writing of such date and of the principal amount of the Securities to be redeemed
and provide the additional information required to be included in the notice or notices
contemplated by Section 11.5. In the case of any redemption of Securities, in whole or in
part, (a) prior to the expiration of any restriction on such redemption provided in this Indenture
or the Securities or (b) pursuant to an election of the Company which is subject to a condition
specified in this Indenture or the Securities, the Company shall furnish the Trustee with an
Officers’ Certificate and an Opinion of Counsel evidencing compliance with such restriction or
condition.

     SECTION 11.4. Selection of Securities to be Redeemed.

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     (a) If less than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected and redeemed on a pro rata basis not more than sixty (60) days prior to
the Redemption Date by the Trustee from the Outstanding Securities not previously called for
redemption, provided that the unredeemed portion of the principal amount of any Security shall be
in an authorized denomination (which shall not be less than the minimum authorized denomination)
for such Security.

     (b) The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the case of any Security
redeemed or to be redeemed only in part, to the portion of the principal amount of such Security
that has been or is to be redeemed.

     (c) The provisions of paragraphs (a) and (b) of this Section 11.4 shall not apply with
respect to any redemption affecting only a single Security, whether such Security is to be redeemed
in whole or in part. In the case of any such redemption in part, the unredeemed portion of the
principal amount of the Security shall be in an authorized denomination (which shall not be less
than the minimum authorized denomination) for such Security.

     SECTION 11.5. Notice of Redemption.

     (a) Notice of redemption shall be given not later than the thirtieth (30th) day,
and not earlier than the sixtieth (60th) day, prior to the Redemption Date to the Trustee and each
Holder of Securities to be redeemed, in whole or in part (unless a shorter notice shall be
satisfactory to the Trustee).

     (b) With respect to Securities to be redeemed, in whole or in part, each notice of redemption
shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price or, if the Redemption Price cannot be calculated prior to the
time the notice is required to be sent, the estimate of the Redemption Price, as calculated
by the Company, together with a statement that it is an estimate and that the actual
Redemption Price will be calculated on the fifth Business Day prior to the Redemption Date
(and if an estimate is provided, a further notice shall be sent of the actual Redemption
Price on the date that such Redemption Price is calculated);

     (iii) if less than all Outstanding Securities are to be redeemed, the identification
(and, in the case of partial redemption, the respective principal amounts) of the amount of
and particular Securities to be redeemed;

     (iv) that on the Redemption Date, the Redemption Price will become due and payable upon
each such Security or portion thereof, and that any interest (including any Additional
Interest) on such Security or such portion, as the case may be, shall cease to accrue on and
after said date; and

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     (v) the place or places where such Securities are to be surrendered for payment of the
Redemption Price.

     (c) Notice of redemption of Securities to be redeemed, in whole or in part, at the election of
the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name
and at the expense of the Company and shall be irrevocable. The notice if mailed in the manner
provided above shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. In any case, a failure to give such notice by mail or any defect in the
notice to the Holder of any Security designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Security.

     SECTION 11.6. Deposit of Redemption Price.

     Prior to 10:00 a.m., New York City time, on the Redemption Date specified in the notice of
redemption given as provided in Section 11.5, the Company will deposit with the Trustee or
with one or more Paying Agents an amount of money sufficient to pay the Redemption Price of, and
any accrued interest (including any Additional Interest) on, all the Securities (or portions
thereof) that are to be redeemed on that date.

     SECTION 11.7. Payment of Securities Called for Redemption.

     (a) If any notice of redemption has been given as provided in Section 11.5, the
Securities or portion of Securities with respect to which such notice has been given shall become
due and payable on the date and at the place or places stated in such notice at the applicable
Redemption Price, together with accrued interest (including any Additional Interest) to the
Redemption Date. On presentation and surrender of such Securities at a Place of Payment specified
in such notice, the Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date.

     (b) Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new
Security or Securities, of authorized denominations, in aggregate principal amount equal to the
unredeemed portion of the Security so presented and having the same Original Issue Date, Stated
Maturity and terms.

     (c) If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal of and any premium on such Security shall, until paid, bear interest from
the Redemption Date at the rate prescribed therefor in the Security.

ARTICLE XII

SUBORDINATION OF SECURITIES

     SECTION 12.1. Securities Subordinate to Senior Debt.

     The Company covenants and agrees, and each Holder of a Security, by its acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth

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in this Article XII, the payment of the principal of and any premium and interest
(including any Additional Interest) on each and all of the Securities are hereby expressly made
subordinate and subject in right of payment to the prior payment in full of all Senior Debt.

     SECTION 12.2. No Payment When Senior Debt in Default; Payment Over of Proceeds Upon
Dissolution, Etc.

     (a) In the event and during the continuation of any default by the Company in the payment of
any principal of or any premium or interest on any Senior Debt (following any grace period, if
applicable) when the same becomes due and payable, whether at maturity or at a date fixed for
prepayment or by declaration of acceleration or otherwise, then, upon written notice of such
default to the Company by the holders of such Senior Debt or any trustee therefor, unless and until
such default shall have been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, securities, by set-off or otherwise) shall be made or agreed to be made
on account of the principal of or any premium or interest (including any Additional Interest) on
any of the Securities, or in respect of any redemption, repayment, retirement, purchase or other
acquisition of any of the Securities.

     (b) In the event of a bankruptcy, insolvency or other proceeding described in clause (d) or
(e) of the definition of Event of Default (each such event, if any, herein sometimes referred to as
a “Proceeding”), all Senior Debt (including any interest thereon accruing after the commencement of
any such proceedings) shall first be paid in full before any payment or distribution, whether in
cash, securities or other property, shall be made to any Holder of any of the Securities on account
thereof. Any payment or distribution, whether in cash, securities or other property (other than
securities of the Company or any other entity provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the Securities, to the
payment of all Senior Debt at the time outstanding and to any securities issued in respect thereof
under any such plan of reorganization or readjustment), which would otherwise (but for these
subordination provisions) be payable or deliverable in respect of the Securities shall be paid or
delivered directly to the holders of Senior Debt in accordance with the priorities then existing
among such holders until all Senior Debt (including any interest thereon accruing after the
commencement of any Proceeding) shall have been paid in full.

     (c) In the event of any Proceeding, after payment in full of all sums owing with respect to
Senior Debt, the Holders of the Securities, together with the holders of any obligations of the
Company ranking on a parity with the Securities, shall be entitled to be paid from the remaining
assets of the Company the amounts at the time due and owing on account of unpaid principal of and
any premium and interest (including any Additional Interest) on the Securities and such other
obligations before any payment or other distribution, whether in cash, property or otherwise, shall
be made on account of any Equity Interests or any obligations of the Company ranking junior to the
Securities and such other obligations. If, notwithstanding the foregoing, any payment or
distribution of any character on any security, whether in cash, securities or other property (other
than securities of the Company or any other entity provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the Securities, to the
payment of all Senior Debt at the time outstanding and to any securities issued

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in respect thereof under any such plan of reorganization or readjustment) shall be received by
the Trustee or any Holder in contravention of any of the terms hereof and before all Senior Debt
shall have been paid in full, such payment or distribution or security shall be received in trust
for the benefit of, and shall be paid over or delivered and transferred to, the holders of the
Senior Debt at the time outstanding in accordance with the priorities then existing among such
holders for application to the payment of all Senior Debt remaining unpaid, to the extent necessary
to pay all such Senior Debt (including any interest thereon accruing after the commencement of any
Proceeding) in full. In the event of the failure of the Trustee or any Holder to endorse or assign
any such payment, distribution or security, each holder of Senior Debt is hereby irrevocably
authorized to endorse or assign the same.

     (d) The Trustee and the Holders, at the expense of the Company, shall take such reasonable
action (including the delivery of this Indenture to an agent for any holders of Senior Debt or
consent to the filing of a financing statement with respect hereto) as may, in the opinion of
counsel designated by the holders of a majority in aggregate of principal amount of the Senior Debt
at the time outstanding, be necessary or appropriate to assure the effectiveness of the
subordination effected by these provisions.

     (e) The provisions of this Section 12.2 shall not impair any rights, interests,
remedies or powers of any secured creditor of the Company in respect of any security interest the
creation of which is not prohibited by the provisions of this Indenture.

     (f) The securing of any obligations of the Company, otherwise ranking on a parity with the
Securities or ranking junior to the Securities, shall not be deemed to prevent such obligations
from constituting, respectively, obligations ranking on a parity with the Securities or ranking
junior to the Securities.

     SECTION 12.3. Payment Permitted If No Default.

     Nothing contained in this Article XII or elsewhere in this Indenture or in any of the
Securities shall prevent (a) the Company, at any time, except during the pendency of the conditions
described in paragraph (a) of Section 12.2 or of any Proceeding referred to in
Section 12.2, from making payments at any time of principal of and any premium or interest
(including any Additional Interest) on the Securities or (b) the application by the Trustee of any
moneys deposited with it hereunder to the payment of or on account of the principal of and any
premium or interest (including any Additional Interest) on the Securities or the retention of such
payment by the Holders, if, at the time of such application by the Trustee, it did not have
knowledge (in accordance with Section 12.8) that such payment would have been prohibited by
the provisions of this Article XII, except as provided in Section 12.8.

     SECTION 12.4. Subrogation to Rights of Holders of Senior Debt.

     Subject to the payment in full of all amounts due or to become due on all Senior Debt, or the
provision for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the
holders of Senior Debt, the Holders of the Securities shall be subrogated to the extent of the
payments or distributions made to the holders of such Senior Debt pursuant to the provisions of
this Article XII (equally and ratably with the holders of all indebtedness of the Company
that

- 58 -

 

by its express terms is subordinated to Senior Debt of the Company to substantially the same
extent as the Securities are subordinated to the Senior Debt and is entitled to like rights of
subrogation by reason of any payments or distributions made to holders of such Senior Debt) to the
rights of the holders of such Senior Debt to receive payments and distributions of cash, property
and securities applicable to the Senior Debt until the principal of and any premium and interest
(including any Additional Interest) on the Securities shall be paid in full. For purposes of such
subrogation, no payments or distributions to the holders of the Senior Debt of any cash, property
or securities to which the Holders of the Securities or the Trustee would be entitled except for
the provisions of this Article XII, and no payments made pursuant to the provisions of this
Article XII to the holders of Senior Debt by Holders of the Securities or the Trustee,
shall, as among the Company, its creditors other than holders of Senior Debt, and the Holders of
the Securities, be deemed to be a payment or distribution by the Company to or on account of the
Senior Debt.

     SECTION 12.5. Provisions Solely to Define Relative Rights.

     The provisions of this Article XII are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities on the one hand and the holders of
Senior Debt on the other hand. Nothing contained in this Article XII or elsewhere in this
Indenture or in the Securities is intended to or shall (a) impair, as between the Company and the
Holders of the Securities, the obligations of the Company, which are absolute and unconditional, to
pay to the Holders of the Securities the principal of and any premium and interest (including any
Additional Interest) on the Securities as and when the same shall become due and payable in
accordance with their terms, (b) affect the relative rights against the Company of the Holders of
the Securities and creditors of the Company other than their rights in relation to the holders of
Senior Debt or (c) prevent the Trustee or the Holder of any Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, including filing and
voting claims in any Proceeding, subject to the rights, if any, under this Article XII of
the holders of Senior Debt to receive cash, property and securities otherwise payable or
deliverable to the Trustee or such Holder.

     SECTION 12.6. Trustee to Effectuate Subordination.

     Each Holder of a Security by his or her acceptance thereof authorizes and directs the Trustee
on his or her behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination provided in this Article XII and appoints the Trustee his or
her attorney-in-fact for any and all such purposes.

     SECTION 12.7. No Waiver of Subordination Provisions.

     (a) No right of any present or future holder of any Senior Debt to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act
on the part of the Company or by any act or failure to act, in good faith, by any such holder, or
by any noncompliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof that any such holder may have or be otherwise charged with.

- 59 -

 

     (b) Without in any way limiting the generality of paragraph (a) of this Section 12.7,
the holders of Senior Debt may, at any time and from to time, without the consent of or notice to
the Trustee or the Holders of the Securities, without incurring responsibility to such Holders of
the Securities and without impairing or releasing the subordination provided in this
Article XII or the obligations hereunder of such Holders of the Securities to the holders
of Senior Debt, do any one or more of the following: (i) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Debt, or otherwise amend or
supplement in any manner Senior Debt or any instrument evidencing the same or any agreement under
which Senior Debt is outstanding, (ii) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing Senior Debt, (iii) release any Person liable in any manner
for the payment of Senior Debt and (iv) exercise or refrain from exercising any rights against the
Company and any other Person.

     SECTION 12.8. Notice to Trustee.

     (a) The Company shall give prompt written notice to a Responsible Officer of the Trustee of
any fact known to the Company that would prohibit the making of any payment to or by the Trustee in
respect of the Securities. Notwithstanding the provisions of this Article XII or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment to or by the Trustee in respect of the
Securities, unless and until a Responsible Officer of the Trustee shall have received written
notice thereof from the Company or a holder of Senior Debt or from any trustee, agent or
representative therefor; provided that if the Trustee shall not have received the notice provided
for in this Section 12.8 at least two Business Days prior to the date upon which by the
terms hereof any monies may become payable for any purpose (including, the payment of the principal
of and any premium on or interest (including any Additional Interest) on any Security), then,
anything herein contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such monies and to apply the same to the purpose for which they were received
and shall not be affected by any notice to the contrary that may be received by it within two
Business Days prior to such date.

     (b) The Trustee shall be entitled to rely on the delivery to it of a written notice by a
Person representing himself or herself to be a holder of Senior Debt (or a trustee, agent,
representative or attorney-in-fact therefor) to establish that such notice has been given by a
holder of Senior Debt (or a trustee, agent, representative or attorney-in-fact therefor). In the
event that the Trustee determines in good faith that further evidence is required with respect to
the right of any Person as a holder of Senior Debt to participate in any payment or distribution
pursuant to this Article XII, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior Debt held by such Person, the
extent to which such Person is entitled to participate in such payment or distribution and any
other facts pertinent to the rights of such Person under this Article XII, and if such
evidence is not furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

     SECTION 12.9. Reliance on Judicial Order or Certificate of Liquidating Agent.

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     Upon any payment or distribution of assets of the Company referred to in this
Article XII, the Trustee and the Holders of the Securities shall be entitled to
conclusively rely upon any order or decree entered by any court of competent jurisdiction in which
such Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person making such
payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose
of ascertaining the Persons entitled to participate in such payment or distribution, the holders of
the Senior Debt and other indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article XII.

     SECTION 12.10. Trustee Not Fiduciary for Holders of Senior Debt.

     The Trustee, in its capacity as trustee under this Indenture, shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and shall not be liable to any such holders if it
shall in good faith mistakenly pay over or distribute to Holders of Securities or to the Company or
to any other Person cash, property or securities to which any holders of Senior Debt shall be
entitled by virtue of this Article XII or otherwise.

     SECTION 12.11. Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article XII with respect to any Senior Debt that may at any time be held by it, to the same
extent as any other holder of Senior Debt, and nothing in this Indenture shall deprive the Trustee
of any of its rights as such holder.

     SECTION 12.12. Article Applicable to Paying Agents

     If at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article XII shall
in such case (unless the context otherwise requires) be construed as extending to and including
such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article XII in addition to or in place of the Trustee. For the
avoidance of doubt, the Company shall not be permitted to appoint itself or any Affiliate as a
Paying Agent hereunder.

****

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

****

- 61 -

 

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

	 	 	 	 	 	 	 
	 	 	BEAZER HOMES USA, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kenneth Khoury 
	 

	 	 	 	 

Name: Kenneth Khoury

	 

	 	 	 	Title:   EVP
and GC

 

 

	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ J. Christopher Murphy 	 	 
	 

	 	 	 	 

Name:  J. Christopher Murphy
	 	 
	 

	 	 	 	Title:    Financial
Services Officer	 	 

[Signature Page to Indenture]

 

 

Schedule A

DETERMINATION OF LIBOR

     With respect to the Securities, the London interbank offered rate (“LIBOR”) shall be
determined by the Calculation Agent in accordance with the following provisions (in each case
rounded to the nearest .000001%):

(1) On the second LIBOR Business Day (as defined below) prior to an Interest Payment Date after the
expiration of the Fixed Rate Period (each such day, a “LIBOR Determination Date”), LIBOR for any
given security shall for the following interest payment period equal the rate (expressed as a
percentage per annum) for U.S. dollar deposits in Europe, for a three (3) month period, that
appears on Dow Jones Telerate (as defined in the International Swaps and Derivatives Association,
Inc. 2000 Interest Rate and Currency Exchange Definitions) Page 3750, or such other page as may
replace such Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date, as
reported by Bloomberg Financial Market Commodities News or any successor service. If such rate is
superseded on Telerate Page 3750 by a corrected rate before 12:00 noon (London time) on such LIBOR
Determination Date, the corrected rate as so substituted will be LIBOR for such LIBOR Determination
Date.

(2) If on any LIBOR Determination Date such rate does not appear on Dow Jones Telerate Page 3750 or
such other page as may replace such Page 3750, the Calculation Agent shall determine the arithmetic
mean of the offered quotations (expressed as a percentage per annum) of the Reference Banks (as
defined below) to leading banks in the London interbank market for U.S. dollar deposits in Europe,
for a three (3) month period, for an amount determined by the Calculation Agent (but not less than
U.S. $1,000,000) by reference to requests for quotations as of approximately 11:00 A.M. (London
time) on the LIBOR Determination Date made by the Calculation Agent to the Reference Banks. If on
any LIBOR Determination Date at least two of the Reference Banks provide such quotations, LIBOR
shall equal such arithmetic mean of such quotations. If on any LIBOR Determination Date only one
or none of the Reference Banks provide such quotations, LIBOR shall be deemed to be the arithmetic
mean of the offered quotations (expressed as a percentage per annum) that two (2) leading banks in
the City of New York selected by the Calculation Agent are quoting on the relevant LIBOR
Determination Date for U.S. dollar deposits in Europe, for a three (3) month period, for an amount
determined by the Calculation Agent (but not less than U.S. $1,000,000); provided, that if the
Calculation Agent is required but is unable to determine a rate in accordance with at least one of
the procedures provided above, LIBOR shall be LIBOR as determined on the previous LIBOR
Determination Date.

(3) As used herein: “Reference Banks” means four major banks in the London interbank market
selected by the Calculation Agent; and “LIBOR Business Day” means a day (a) on which commercial
banks are open for business (including dealings in foreign exchange and foreign currency deposits)
in London and (b) is not a Saturday, Sunday or other day on which commercial banking institutions
in New York, New York are authorized or obligated by law or executive order to be closed.

Schedule A-1

 

Exhibit A

Form of Officer’s Financial Certificate

     The undersigned, the [Chairman/Vice Chairman/Chief Executive Officer/President/ Vice
President/Chief Financial Officer/Treasurer/Assistant Treasurer], hereby certifies, pursuant to
Section 7.3(b) of the Junior Subordinated Indenture (the “Indenture”), dated as of January 15,
2010, among Beazer Homes USA, Inc. (the “Company”) and Wilmington Trust Company, as trustee, that,
as of [date], [20___], the Company had the following ratios and balances (unless otherwise
indicated, capitalized terms used herein have the meaning set forth in the Indenture):

As of [Quarterly/Annual Financial Date], 20___

	 	 	 	 	 
	Senior secured indebtedness for borrowed money (“Debt”)
	 	$	 	 
	 
	 	 	 
	 
	Senior unsecured Debt
	 	$	 	 
	 
	 	 	 
	 
	Subordinated Debt
	 	$	 	 
	 
	 	 	 
	 
	Total Debt
	 	$	 	 
	 
	 	 	 
	 
	Ratio of (x) senior secured and unsecured Debt to (y) total Debt
	 	 	 	%
	 
	 	 	 

 

			
	*	 	A table describing the quarterly report calculation procedures is provided on page ___

[FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial statements
(including the balance sheet, income statement and statement of cash flows, and notes thereto,
together with the report of the independent accountants thereon) of the Company and its
consolidated subsidiaries for the three years ended [date], 20___.

[FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated financial statements
(including the balance sheet and income statement) of the Company and its consolidated subsidiaries
for the fiscal quarter ended [date], 20___.]

The financial statements fairly present in all material respects, in accordance with U.S. generally
accepted accounting principles (“GAAP”), the financial position of the Company and its consolidated
subsidiaries, and the results of operations and changes in financial condition as of the date, and
for the [___ quarter interim]
[annual] period ended [date], 20___ and such financial statements have
been prepared in accordance with GAAP consistently applied throughout the period involved, subject
in the case of interim financial information to normal year-end adjustments and absence of
footnotes required by GAAP (expect as otherwise noted therein).

There has been no monetary default with respect to any indebtedness owed by the Company and/or its
subsidiaries (other than those defaults cured within 30 days of the occurrence of the same) [,
except as set forth below:].

 

 

[Insert any exceptions by listing, in detail, the nature of the condition or event causing such
noncompliance, the period during which such condition or event has existed and the action(s) the
Company has taken, is taking, or proposes to take with respect to each such condition or event.]

     IN WITNESS WHEREOF, the undersigned has executed this Officer’s Financial Certificate as of
this ___ day of ___, 20___.

	 	 	 	 	 	 	 
	 
	 	 	BEAZER HOMES USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 	 	Beazer Homes USA, Inc.	 	 
	 	 	1000 Abernathy Road, Suite 1200	 	 
	 	 	Atlanta, GA 30328	 	 
	 	 	(770) 829-3716

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