Document:

ex10-1.htm

    
      

    

    Exhibit
      10.1

     

    EXECUTION
      COPY

     

    SECOND
      AMENDMENT

     

    SECOND
      AMENDMENT, dated as of October 26, 2007 (this “Second Amendment”), to the
      Credit Agreement, dated as of July 25, 2007 (as heretofore amended, supplemented
      or otherwise modified, the “Credit Agreement”), among Beazer Homes USA,
      Inc., a Delaware corporation (the “Borrower”), the several lenders from
      time to time parties thereto (the “Lenders”) and Wachovia Bank, National
      Association, as agent (in such capacity, the “Agent”).

     

    W
      I T
      N E S S E T H :

     

    WHEREAS,
      the Borrower, the Lenders and the Agent are parties to the Credit
      Agreement;

     

    WHEREAS,
      the Borrower has requested that the Lenders to amend the Credit Agreement,
      and
      the Lenders are agreeable to such request but only upon the terms and subject
      to
      the conditions set forth herein;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements contained
      herein, and for other valuable consideration the receipt of which is hereby
      acknowledged, the Borrower, the Lenders, and the Agent agree as
      follows:

     

    SECTION
      1.  DEFINITIONS.  Unless
      otherwise defined herein, capitalized terms are used herein as defined in the
      Credit Agreement.

     

    SECTION
      2.  AMENDMENTS.

     

    2.1  Amendment
      to Section 1.01.

     

    (a)  Section
      1.01 of the Credit Agreement is hereby amended by inserting the following new
      definition in its appropriate alphabetical order:

     

    “Interim
      Period” means the period commencing the date on which any adverse judgment shall
      have been entered in the Senior Notes Litigation until the Restated Financial
      Statements Delivery Date.

     

    (b)  Section
      1.01 of the Credit Agreement is hereby amended by deleting the definition of
      Secured Borrowing Base in its entirety and inserting in lieu thereof the
      following:

     

    “Secured
      Borrowing Base” means, with respect to any date of determination, an amount
      equal to the sum of the following assets of the Loan Parties with respect which
      the Borrower shall have satisfied the Secured Borrowing Base
      Conditions:  an amount equal to (i) 100% of the Unrestricted Cash
plus (ii) 100% (or at any time during the Interim Period, 90%)
      of

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    the
      book
      value of Receivables from Housing Unit Closings plus  (iii) 30%
      (or at any time during the Interim Period, 20%) of the book value of Lots under
      Development plus (iv) 50% (or at any time during the Interim Period, 40%)
      of the book value of Finished Lots plus (v) 65% (or at any time during
      the Interim Period, 45%) of the book value of Speculative Housing Units
plus (vi) 80% (or at any time during the Interim Period, 60%) of the book
      value of Housing Units under Contract; provided that if the Agent has an
      Acceptable Appraisal with respect to a Real Property (or any portion thereof)
      that is included in the Secured Borrowing Base, then the amount of availability
      includable in the Secured Borrowing Base attributable to such Real Property
      (or
      portion thereof) shall be equal to the lesser of (A) the amounts calculated
      as
      set forth above and (B) the amounts that would be calculated as set forth using
      the Appraised Value of such Real Property (or portion thereof) instead of book
      value.  Notwithstanding anything to the contrary herein, (x) not more
      than 30% of the total aggregate Secured Borrowing Base (including, without
      limitation, Unrestricted Cash and Receivables) shall be comprised of Lots Under
      Development and Finished Lots and (y) not more than 25% of the total aggregate
      Secured Borrowing Base (including, without limitation, Unrestricted Cash and
      Receivables) shall be comprised of Secured Borrowing Base Assets of the type
      described in the foregoing clauses (iii) through (vi) that relate to property
      located in a Single Market.

     

    2.2  Amendments
      to Section 2.01.2  Section 2.01.2 of the Credit Agreement is
      hereby amended by deleting each reference in clause (b)(v) thereof to “Issuing
      Lenders therefor” and inserting in lieu thereof “Issuer thereof”.

     

    2.3  Amendments
      to Section 2.11.  Section 2.11(c) is hereby amended by deleting
      the reference to “Borrowing Base” therein and substituting in lieu therein
“Secured Borrowing Base”.

     

    2.4  Amendment
      to Section 8.01.  Section 8.01(13) of the Credit Agreement is
      hereby amended by deleting such Section in its entirety and inserting in lieu
      thereof:

     

    “(13)
      (A) Any adverse judgment shall
      have been entered in the Senior Notes Litigation, and (B)(i) such adverse
      judgment shall not have been stayed, annulled or rescinded within 60 days of
      being entered and (ii) to the extent such judgment has the effect of determining
      that there has been a default with respect to one or more tranches of Senior
      Notes based on the Borrower’s failure to make a filing with the Securities and
      Exchange Commission or to deliver a copy of a Securities and Exchange Commission
      filing to the applicable trustees or denying a motion for preliminary injunction
      with respect to such a default, such defaults shall not have been waived by
      the
      requisite holders of such applicable tranches of Senior Notes in accordance
      with
      the applicable Senior Indentures;”.

    

    SECTION
      3.  CONDITIONS
      PRECEDENT.

     

    3.1  Effective
      Date.  This Second Amendment shall become effective as of the date
      first set forth above (the “Second Amendment Effective Date”) following
      the date on which all of the following conditions have been satisfied or
      waived:

     

    (a)  Execution
      and Delivery.  The Agent shall have received:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

                    (1)  this
      Second Amendment, executed and delivered by a duly authorized officer of the
      Borrower and the Lenders constituting Required Lenders; and

     

       
(2)  an
      executed Acknowledgment and Consent, in the form set forth as Exhibit A hereto,
      or a facsimile transmission thereof, from each Guarantor (such Acknowledgment
      and Consent, together with this Second Amendment, the “Amendment
      Documents”); and

     

    (b)  After
      giving effect to this Second Amendment, there shall be no Default or Event
      of
      Default.

     

    SECTION
      4.  GENERAL.

     

    4.1  Representations
      and Warranties.

     

    (a)  In
      order
      to induce the Agents and the Lenders to enter into this Second Amendment, the
      Borrower hereby represents and warrants to the Agents, the Arrangers and the
      Lenders that after giving effect to this Second Amendment, the representations
      and warranties of the Borrower contained in the Credit Agreement and the other
      Loan Documents are true and correct in all material respects on and as of the
      Second Amendment Effective Date (after giving effect hereto) as if made on
      and
      as of the Second Amendment Effective Date (except where such representations
      and
      warranties expressly relate to an earlier date in which case such
      representations and warranties were true and correct in all material respects
      as
      of such earlier date); provided that the representations and warranties
      contained in Section 4.04 (Financial Statements), Section 4.06 (Other
      Agreements), Section 4.07 (Litigation), Section 4.14 (Law; Environment) and
      Section 4.17 (Accuracy of Information) shall be deemed to be made as set forth
      in the Credit Agreement except that such representations and warranties shall
      be
      deemed to be made with an exception for the matters identified in the Audit
      Committee Report giving rise to the Restatement.

     

    (b)  In
      order
      to induce the Agents and the Lenders to enter into this Second Amendment, the
      Borrower hereby represents and warrants to the Agents, the Arrangers and the
      Lenders that each of the Borrower and the Guarantors has all necessary corporate
      power and authority to execute and deliver the Amendment Documents; the
      execution and delivery by each such party of the Amendment Documents have been
      duly authorized by all necessary corporate action on its part; and the Amendment
      Documents have been duly executed and delivered by each such party and
      constitute each such party’s legal, valid and binding obligation, enforceable in
      accordance with its terms.

     

    4.2  Notice
      of Effectiveness.  The Agent shall promptly advise the Lenders and
      the Borrower that this Second Amendment has become effective and of the Second
      Amendment Effective Date.

     

    4.3  APPLICABLE
      LAW AND JURISDICTION.  THE RIGHTS AND OBLIGATIONS OF THE PARTIES
      HERETO SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NORTH CAROLINA.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4.4  Counterparts.  This
      Second Amendment may be executed by the parties hereto in any number of separate
      counterparts and all of said counterparts taken together shall be deemed to
      constitute one and the same instrument.

     

    4.5  Successors
      and Assigns.  This Second Amendment shall be binding upon and
      inure to the benefit of the Borrower and its successors and assigns, and upon
      the Agents and the Lenders and each of their respective successors and
      assigns.  The execution and delivery of this Second Amendment by any
      Lender prior to the Second Amendment Effective Date shall be binding upon its
      successors and assigns and shall be effective as to any loans or commitments
      assigned to it after such execution and delivery.

     

    4.6  Continuing
      Effect.  Except as expressly amended hereby, the Credit Agreement
      as amended by this Second Amendment shall continue to be and shall remain in
      full force and effect in accordance with its terms.  This Second
      Amendment shall not constitute an amendment or waiver of any provision of the
      Credit Agreement not expressly referred to herein and shall not be construed
      as
      an amendment, waiver or consent to any action on the part of the Borrower that
      would require an amendment, waiver or consent of the Agent or the Lenders except
      as expressly stated herein.  Any reference to the “Credit Agreement”
in any Credit Document or any related documents shall be deemed to be a
      reference to the Credit Agreement as amended by this Second
      Amendment.

     

    4.7  Headings.  Section
      headings used in this Second Amendment are for convenience of reference only,
      are not part of this Second Amendment and are not to affect the constructions
      o,
      or to be taken into consideration in interpreting, this Second Amendment.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be
      executed and delivered by their respective duly authorized officers as of the
      date first above written.

     

    

    
      	
              BORROWER:

            	 	
              BEAZER
                HOMES USA, INC.,

            	 
	 	 	
              a
                Delaware corporation

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                /s/ Allan P. Merrill

            
	 	 	
              Name:
                Allan P. Merrill

            	 
	 	 	
              Title:   
                Executive Vice President

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION, 

            
	 	 	
              as
                Agent and as a Lender

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                /s/ R. Scott Holtzapple

            
	 	 	
              Name:
                R. Scott Holtzapple

            	 
	 	 	
              Title:  
                Senior Vice President

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              CITIBANK,
                N.A.,
                as a Lender

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                /s/ Marni McManus

            
	 	 	
              Name:
                Marni McManus

            	 
	 	 	
              Title:  
                Director

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              BNP
                PARIBAS,
                as a Lender

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                /s/ Duane Helkowski

            
	 	 	
              Name:
                Duane Helkowski

            	 
	 	 	
              Title:  
                Managing Director

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                /s/ Melissa Bailey

            
	 	 	
              Name: 
                Melissa Bailey

            	 
	 	 	
              Title:   
                Vice President

            	 
	 	 	 	 
	 	 	 	 
	 	 	
              THE
                ROYAL BANK OF
                SCOTLAND,
                as a Lender 

            
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                /s/ William McGinty

            
	 	 	
              Name:  William
                McGinty

            	 
	 	 	
              Title:    Senior
                Vice President  

            	 

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        	 	 	
                REGIONS
                  FINANCIAL
                  CORPORATION,
as
                  a
                  Lender

              	 
	 	 	 	 
	 	 	 	 
	 	 	
                By:
                  /s/ Ronny Hudspeth

              
	 	 	
                Name: Ronny
                  Hudspeth

              	 
	 	 	
                Title:  
                  Senior Vice President

              	 
	 	 	 	 
	 	 	 	 
	 	 	
                JPMORGAN
                  CHASE BANK,
                  N.A.,
                  as a Lender

              	 
	 	 	 	 
	 	 	 	 
	 	 	
                By:
                  /s/ Wayne E. Olson

              
	 	 	
                Name: 
                  Wayne E. Olson

              	 
	 	 	
                Title:   
                  Vice President

              	 
	 	 	 	 
	 	 	 	 
	 	 	
                UBS
                  LOAN FINANCE, LLC, as a Lender

              	 
	 	 	 	 
	 	 	 	 
	 	 	
                By:
                  /s/ Richard L. Tavrow

              
	 	 	
                Name: 
                  Richard L. Tavrow

              	 
	 	 	
                Title:   
                  Director, Banking Product Services, US 

              
	 	 	 	 
	 	 	 	 
	 	 	
                By:
                  /s/ Irja R. Otsa

              	 
	 	 	
                Name: 
                  Irja R. Otsa

              	 
	 	 	
                Title:   
                  Associate Director Banking, Products Services, US 

              
	 	 	 	 
	 	 	 	 
	 	 	
                COMERICA
                  BANK, as a Lender

              	 
	 	 	 	 
	 	 	 	 
	 	 	
                By:
                  /s/ James Graycheck

              
	 	 	
                Name: 
                  James Graycheck

              	 
	 	 	
                Title:   
                  Vice President

              	 

      

       

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      A

     

    ACKNOWLEDGMENT
      AND CONSENT

     

    Reference
      is made to the Second Amendment, dated as of October __, 2007 (the “Second
      Amendment”), to and under the Credit Agreement, dated as of July 25, 2007
      (as heretofore amended, supplemented or otherwise modified, the “Credit
      Agreement”), among Beazer Homes USA, Inc., a Delaware corporation (the
“Borrower”), the several lenders from time to time parties thereto (the
“Lenders”) and Wachovia Bank, National Association, as agent (in
      such
      capacity, the “Agent”).  Unless otherwise defined herein,
      capitalized terms used herein and defined in the Credit Agreement are used
      herein as therein defined.

     

    Each
      of
      the undersigned parties to the Guaranty hereby (a) consents to the
      transactions contemplated by the Second Amendment and (b) acknowledges and
      agrees that the guarantees and grants of security interests made by such party
      contained in the Guaranty are, and shall remain, in full force and effect after
      giving effect to the Second Amendment.

     

    

    
      	GUARANTORS: 	 	
              APRIL
                CORPORATION 

            
	 	 	
              BEAZER
                ALLIED COMPANIES HOLDINGS, INC. 

            
	 	 	
              BEAZER
                GENERAL SERVICES, INC. 

            
	 	 	
              BEAZER
                HOMES CORP. 

            
	 	 	
              BEAZER
                HOMES HOLDINGS CORP. 

            
	 	 	
              BEAZER
                HOMES INDIANA HOLDINGS CORP. 

            
	 	 	
              BEAZER
                HOMES SALES, INC. 

            
	 	 	
              BEAZER
                HOMES TEXAS HOLDINGS, INC. 

            
	 	 	
              BEAZER
                REALTY, INC. 

            
	 	 	
              BEAZER
                REALTY CORP. 

            
	 	 	
              BEAZER
                REALTY LOS ANGELES, INC. 

            
	 	 	
              BEAZER
                REALTY SACRAMENTO, INC. 

            
	 	 	
              BEAZER/SQUIRES
                REALTY, INC. 

            
	 	 	
              HOMEBUILDERS
                TITLE SERVICES, INC. 

            
	 	 	
              HOMEBUILDERS
                TITLE SERVICES OF VIRGINIA, INC. 

            

    

     

    

    
      	 	 	By:	/s/
              Allan P. Merrill
	 	 	 	
              Name:  Allan
                P. Merrill 

            
	 	 	 	
              Title:   
                Executive Vice President 

            

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	 	 	
              ARDEN
                PARK VENTURES, LLC

            	 
	 	 	
              BEAZER
                CLARKSBURG, LLC

            	 
	 	 	
              BEAZER
                COMMERCIAL HOLDINGS, LLC

            	 
	 	 	
              BEAZER
                HOMES INVESTMENTS, LLC

            	 
	 	 	
              BEAZER
                HOMES MICHIGAN, LLC

            	 

    

     

    
      
        	 	 	By:	
                BEAZER
                  HOMES CORP., its Managing Member

              
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
                Allan P. Merrill
	 	 	 	
                Name:  Allan
                  P. Merrill 

              
	 	 	 	
                Title:   
                  Executive Vice President 

              

      

       

      
        	 	 	
                BEAZER
                  SPE, LLC

              	 

      

    

     

    
       

      
        
          	 	 	By:	BEAZER
                  HOMES HOLDINGS CORP., its
                  Member
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
                  Allan P. Merrill
	 	 	 	
                  Name:  Allan
                    P. Merrill 

                
	 	 	 	
                  Title:   
                    Executive Vice President 

                

        

         

      

    

    

    
      	 	 	
              BEAZER
                HOMES INDIANA, LLP

            	 
	 	 	
              BEAZER
                REALTY SERVICES, LLC

            	 
	 	 	
              PARAGON
                TITLE, LLC

            	 
	 	 	
              TRINITY
                HOMES, LLC

            	 

    

     

     

    
      
        
          
            	 	 	By:	BEAZER HOMES INVESTMENTS,
                    LLC,
                    
	 	 	 	its
                    Managing Member or Managing Partner
	 	 	 	 
	 	 	 	 
	 	 	By:	BEAZER
                    HOMES CORP., its
                    Managing Member
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
                    Allan P. Merrill
	 	 	 	
                    Name:  Allan
                      P. Merrill 

                  
	 	 	 	
                    Title:   
                      Executive Vice President 

                  

          

           

        

      

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      

      

      
        	 	 	
                BEAZER
                  HOMES TEXAS, L.P.

              	 
	 	 	
                TEXAS
                  LONE STAR TITLE, L.P.

              	 

      

       

      
        
          	 	 	By:	BEAZER
                  HOMES TEXAS HOLDINGS, INC., its General Partner
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
                  Allan P. Merrill
	 	 	 	
                  Name:  Allan
                    P. Merrill 

                
	 	 	 	
                  Title:   
                    Executive Vice President 

                

        

         

        
          	 	 	
                  BH
                    BUILDING PRODUCTS, LP

                	 

        

      

       

      
         

        
          
            	 	 	By:	BH PROCUREMENT SERVICES,
                    LLC, its
                    General Partner
	 	 	 	 
	 	 	 	 
	 	 	By:	BEAZER
                    HOMES TEXAS, L.P., its Managing Member
	 	 	 	 
	 	 	 	 
	 	 	By:	BEAZER
                    HOMES TEXAS HOLDINGS, INC., its General Partner
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
                    Allan P. Merrill
	 	 	 	
                    Name:  Allan
                      P. Merrill 

                  
	 	 	 	
                    Title:   
                      Executive Vice President 

                  

          

           

        

      

      

      
        	 	 	
                BH
                  PROCUREMENT SERVICES, LLC

              	 

      

       

       

      
        
          
            
              	 	 	By:	BEAZER HOMES TEXAS,
                      L.P., its
                      Managing Member
	 	 	 	 
	 	 	 	 
	 	 	By:	BEAZER HOMES TEXAS
                      HOLDINGS, INC.,
                      its General Partner
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
                      Allan P. Merrill
	 	 	 	
                      Name:  Allan
                        P. Merrill 

                    
	 	 	 	
                      Title:   
                        Executive Vice Presidentex10-2.htm

    
      

    

    Exhibit
      10.2

     

    

    
      

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

    

     

     

    8-5/8%
      Senior Notes Due 2011

     
      
        

      

    

    
      

    

    Seventh
      Supplemental Indenture

     
      
        

      

    

     

    Dated
      as of October 26, 2007

     

    
      
        
          

        

      U.S.
        BANK NATIONAL ASSOCIATION,

    

    as
      Trustee

     
      
        

      

    

    
       

       

       

       

       

       

      
 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    THIS
      SEVENTH SUPPLEMENTAL INDENTURE, dated as of October 26, 2007, among BEAZER
      HOMES USA, INC., a corporation duly incorporated and
      existing under the laws of the State of Delaware (the “Company”), having its
      principal office at 1000 Abernathy Road, Suite 1200, Atlanta, Georgia 30328,
      the
      Subsidiary Guarantors signatory hereto, each having principal offices at 1000
      Abernathy Road, Suite 1200, Atlanta, Georgia 30328, and U.S. BANK NATIONAL
      ASSOCIATION, a national banking association, having an office at U.S. Bank
      Corporate Trust Center, 180 East 5th Street, Suite 200, St. Paul, Minnesota
      55101, as successor to U.S. Bank Trust National Association, as Trustee (the
      “Trustee”), under the Indenture, dated as of May 21, 2001 (the “Original
      Indenture”), which Original Indenture was executed and delivered by the Company
      and Subsidiary Guarantors party thereto to the Trustee to secure the payment
      of
      senior debt securities issued or to be issued under and in accordance with
      the
      provisions of the Original Indenture, reference to which Original Indenture
      is
      hereby made, this instrument (hereinafter called the “Seventh Supplemental
      Indenture”) being supplemental thereto;

     

    RECITALS

     

    WHEREAS,
      the Company, the Trustee and the Subsidiary Guarantors party hereto are parties
      to the Original Indenture, as amended and supplemented by the First Supplemental
      Indenture, dated May 21, 2001, (the “First Supplemental Indenture”), the Second
      Supplemental Indenture, dated as of November 6, 2001 (the “Second Supplemental
      Indenture”), the Third Supplemental Indenture, dated as of January 9, 2004 (the
“Third Supplemental Indenture”), the Fourth Supplemental Indenture, dated as of
      February 18, 2005 (the “Fourth Supplemental Indenture”), the Fifth Supplemental
      Indenture, dated as of November 9, 2005 (the “Fifth Supplement Indenture”) and
      the Sixth Supplemental Indenture, dated as of January 9, 2006 (the “Sixth
      Supplemental Indenture”) (as so amended, the “Original Indenture”, and together
      with this Seventh Supplemental Indenture, the “Indenture”) among the Company,
      the Trustee and the Subsidiary Guarantors signatory thereto, providing for
      the
      issuance by the Company from time to time of its unsecured debt securities
      to be
      issued in one or more series (in the Original Indenture and herein called the
      “Securities”);

     

    WHEREAS,
      pursuant to the First Supplemental Indenture, the Company issued $200,000,000
      aggregate principal amount of its 8-5/8% Senior Notes due 2011 (the “2011
      Notes”);

     

    WHEREAS,
      pursuant to the Second Supplemental Indenture, certain additional subsidiaries
      of the Company became Guarantors of the 2011 Notes;

     

    WHEREAS,
      pursuant to the Third Supplemental Indenture, certain additional subsidiaries
      of
      the Company became Guarantors of the 2011 Notes;

     

    WHEREAS,
      pursuant to the Fourth Supplemental Indenture, certain additional subsidiaries
      of the Company became Guarantors of the 2011 Notes;

     

    WHEREAS,
      pursuant to the Fifth Supplemental Indenture, certain additional subsidiaries
      of
      the Company became Guarantors of the 2011 Notes;

     

    WHEREAS,
      pursuant to the Sixth Supplemental Indenture, the Company corrected a defect
      identified in Section 4.04 of the First Supplemental Indenture;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WHEREAS,
      as of the date of this Seventh Supplemental Indenture, there are $180,000,000
      aggregate principal amount of 2011 Notes outstanding;

     

    WHEREAS,
      the Company has commenced a solicitation of consents (the “Solicitation”) from
      the holders of the Securities (the “Holders”) to certain amendments to the
      Original Indenture as set forth in the Consent Solicitation Statement, dated
      as
      of October 15, 2007 (the “Statement”) and the Supplemental Consent Solicitation
      Statement, dated October 23, 2007;

     

    WHEREAS,
      the amendments are consistent with the action of a majority in principal amount
      of the Holders of the Securities as of October 26, 2007, and the amendments
      are made without in any way affecting the interpretation or application of
      any
      provision of the Indenture for any reason other than the matter specifically
      addressed herein;

     

    WHEREAS,
      pursuant to the Solicitation, the Holders of at least a majority in aggregate
      principal amount of the Securities outstanding have consented to the amendments
      effected by this Seventh Supplemental Indenture in accordance with the
      provisions of Section 9.02 of the Original Indenture and Section 5.02 of the
      First Supplemental Indenture;

     

    WHEREAS,
      pursuant to Section 9.03 of the Indenture, there has been delivered to the
      Trustee on the date hereof an Opinion of Counsel certifying, among other things,
      that this Seventh Supplemental Indenture is authorized or permitted by the
      Indenture;

     

    NOW
      THEREFORE, in consideration of the foregoing and the mutual premises and
      covenants contained herein and for other good and valuable consideration, the
      parties hereto agree as follows:

     

    Section
      1.  Definitions.  Capitalized
      terms used but not defined in this Seventh Supplemental Indenture shall have
      the
      specified meanings set forth in the Original Indenture.

     

    Section
      2.  Amendments
      to the Indenture.

     

    (a)  The
      amendments set forth below will become effective upon the execution and delivery
      of this Seventh Supplemental Indenture by the Company, the Trustee and the
      Subsidiary Guarantors signatory hereto.

     

    (b)  The
      sections of the Original Indenture identified below will be amended as
      indicated.

     

    (i)       
      The
      Indenture is hereby amended by replacing clause (xi) of the definition of
“Permitted Liens” in Article Two of the First Supplemental Indenture with the
      following:

     

            “(xi)                      Liens
      securing Indebtedness of the Company and its Restricted Subsidiaries permitted
      to be Incurred hereunder; provided that the aggregate amount of
      Indebtedness secured by Liens (other than Non-Recourse Indebtedness secured
      by
      Liens) will not exceed (x) $700.0 million or (y) if the Company’s Consolidated
      Fixed Charge Coverage Ratio is at least 2.0 to 1.0 for any four consecutive
      fiscal quarters ended on or after September 30, 2007, 40 percent of Consolidated
      Tangible Assets.”

     

    
      
        
        

      

      
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          2
          -

        
          

        

      

      
        
        

      

    

     

            (ii)  The
      Indenture is hereby amended by adding clause (vii) to the definition of
“Permitted Investments” in Article Two of the First Supplemental Indenture as
      follows:

     

       “(vii)                     Investments
      in joint ventures or Unrestricted Subsidiaries having an aggregate fair market
      value (with the fair market value of each Investment being measured at the
      time
      made and without giving effect to subsequent changes in value), taken together
      with all other Investments made pursuant to this clause (vii) that are at the
      time outstanding, net of any amounts paid to the Company or any Restricted
      Subsidiary as a return of, or on, such Investments not to exceed $50.0
      million.”

     

    (c)  The
      Indenture is hereby amended such that, on and prior to May 15, 2008, any
      failure by the Company to file any SEC Reports by the applicable SEC filing
      deadlines or to deliver any SEC Reports to the Trustee or the Holders shall
      not
      constitute a Default or Event of Default.

     

                “SEC
      Filing
      Deadlines” means the applicable deadline under the Exchange Act (including any
      permitted extensions) on or prior to which the Company is required to file
      any
      SEC Report under the Exchange Act.

     

    “SEC
      Reports” means any reports or other information the Company would be required to
      file with the Commission under Section 13(a) or 15(d) of the Exchange Act or
      any
      report or other information required pursuant to Section 314 of the TIA or
      any
      related notices or reports.

     

    Section
      3.  Ratification
      of Indenture; Supplemental Indenture Part of Indenture.  The
      Original Indenture, as heretofore supplemented and amended by the First
      Supplemental Indenture, the Second Supplemental Indenture, the Third
      Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth
      Supplemental Indenture, the Sixth Supplemental Indenture and this Seventh
      Supplemental Indenture, is in all respects ratified and confirmed, and the
      Original Indenture, the First Supplemental Indenture, the Second Supplemental
      Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture,
      the Fifth Supplemental Indenture, the Sixth Supplemental Indenture and this
      Seventh Supplemental Indenture and all indentures supplemental thereto shall
      be
      read, taken and construed as one and the same instrument.

     

    Section
      4.  Governing
      Law.  This Seventh Supplemental Indenture shall be governed by,
      and construed in accordance with, the laws of the state of New York, but without
      giving effect to applicable principles of conflicts of law to the extent that
      the application of the laws of another jurisdiction would be required
      thereby.

     

    Section
      5.  Trustee
      Makes No Representations  The Trustee makes no representation as
      to the validity or sufficiency of this Seventh Supplemental
      Indenture.  The recitals of fact contained herein shall be taken as
      the statements solely of the Company, and the Trustee assumes no responsibility
      for the correctness thereof.

     

    
      
        
        

      

      
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          3
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    Section
      6.  Counterparts.  The
      parties may sign any number of copies of this Seventh Supplemental
      Indenture.  Each signed copy shall be an original, but all of them
      together represent the same agreement.

     

    Section
      7.  Effect
      of Headings.  The section headings herein are for convenience
      only and shall not effect the construction thereof.

     

    Section
      8.  Successors
      and Assigns.  All covenants and agreements in this Seventh
      Supplemental Indenture by the Company shall bind its successors and assigns,
      whether so expressed or not.

     

    Section
      9.  Separability
      Clause.  In case any provision in this Seventh Supplemental
      Indenture 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.

     

    [The
      remainder of this page is intentionally left blank]

     

    

    
      
        
          
          

        

        
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            -

          
            

          

        

        
          
          

        

      

    

    

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

     

     

     

    
      	 	 	ISSUER:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	BEAZER
              HOMES USA, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              By:      /s/Allan
                P. Merrill 

            
	 	 	Name:
              Allan P. Merrill	 
	 	 	Title:  
              Executive Vice President	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	SUBSIDIARY
              GUARANTORS:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	APRIL
              CORPORATION 
	 	 	BEAZER
              ALLIED COMPANIES HOLDINGS, INC. 
	 	 	BEAZER
              GENERAL SERVICES, INC. 
	 	 	BEAZER
              HOMES CORP. 
	 	 	BEAZER
              HOMES HOLDINGS CORP. 
	 	 	BEAZER
              HOMES INDIANA HOLDINGS CORP. 
	 	 	BEAZER
              HOMES SALES, INC. 
	 	 	BEAZER
              HOMES TEXAS HOLDINGS, INC. 
	 	 	BEAZER
              MORTGAGE CORP. 
	 	 	BEAZER
              REALTY CORP. 
	 	 	BEAZER
              REALTY, INC. 
	 	 	BEAZER
              REALTY LOS ANGELES, INC. 
	 	 	BEAZER
              REALTY SACRAMENTO, INC. 
	 	 	BEAZER/SQUIRES
              REALTY, INC. 
	 	 	HOMEBUILDERS
              TITLE SERVICES, INC. 
	 	 	HOMEBUILDERS
              TITLE SERVICES OF VIRGINIA,
              INC. 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	
              
                /s/Allan
                  P.
                  Merrill

              

            
	 	 	 	
              Name:
                Allan P. Merrill

            	 
	 	 	 	
              Title:  
                Executive Vice President

            	 

    

     

     

     

     

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

     

    
      	 	 	ARDEN
              PARK VENTURES, LLC	 
	 	 	BEAZER
              CLARKSBURG, LLC	 
	 	 	BEAZER
              COMMERCIAL HOLDINGS, LLC	 
	 	 	BEAZER
              HOMES INVESTMENTS, LLC	 
	 	 	BEAZER
              HOMES MICHIGAN, LLC	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	BEAZER
              HOMES CORP., its Managing Member 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	
              
                /s/Allan
                  P.
                  Merrill                                          
                    

              

            
	 	 	 	 	
              Name:
                Allan P. Merrill

            	 
	 	 	 	 	
              Title: 
                 Executive Vice President

            	 
	 	 	 	 	 	 
	 	 	
              BEAZER
                SPE, LLC

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:
              	BEAZER
              HOMES HOLDINGS CORP., its Member  
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	
              /s/Allan
                P.
                Merrill                                          
                  

            
	 	 	 	 	Name:
              Allan P. Merrill	 
	 	 	 	 	Title:   Executive
              Vice President	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	
              BEAZER
                HOMES INDIANA, LLP  

            	 
	 	 	
              BEAZER
                REALTY SERVICES, LLC

            	 
	 	 	
              PARAGON
                TITLE, LLC

            	 
	 	 	
              TRINITY
                HOMES, LLC

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:
              	
              BEAZER
                HOMES INVESTMENTS, LLC its
                Managing Member or Managing Partner 

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:
              	BEAZER
              HOMES CORP., its Managing Member  
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	
              /s/Allan
                P.
                Merrill                                          
                 

            
	 	 	 	 	
              Name:
                Allan P. Merrill

            	 
	 	 	 	 	
              Title: 
                 Executive Vice President

            	 

    

     

     

     

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
       

       

      
        	 	 	
                BEAZER
                  HOMES TEXAS, L.P.

              	 
	 	 	
                TEXAS
                  LONE STAR TITLE, L.P.

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	BEAZER
                HOMES TEXAS HOLDINGS, INC., its Managing partner
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	
                
                  /s/Allan
                    P.
                    Merrill                                          
                      

                

              
	 	 	 	 	
                Name:
                  Allan P. Merrill

              	 
	 	 	 	 	
                Title: 
                   Executive Vice President

              	 
	 	 	 	 	 	 
	 	 	
                BH
                  BUILDING PRODUCTS, LP

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:
                	BH
                PROCUREMENT SERVICES, LLC, its General Partner
	 	 	 	 
	 	 	
                By:

              	BEAZER
                HOMES TEXAS, L.P., its Managing
                Member
	 	 	 	 
	 	 	
                By:

              	BEAZER
                HOMES TEXAS HOLDINGS, INC., its General
                Partner
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	
                /s/Allan
                  P.
                  Merrill                                          
                    

              
	 	 	 	 	Name:
                Allan P. Merrill	 
	 	 	 	 	Title:   Executive
                Vice President	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	
                BH
                  PROCUREMENT SERVICES, LLC

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:
                	BEAZER
                HOMES TEXAS, L.P., its Managing Member
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:
                	BEAZER
                HOMES TEXAS HOLDINGS, INC., its General
                Partner
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	
                /s/Allan
                  P.
                  Merrill                                          
                   

              
	 	 	 	 	
                Name:
                  Allan P. Merrill

              	 
	 	 	 	 	
                Title: 
                   Executive Vice President

              	 

      

    

     

    
      
        
        

      

      
        
          S - 1

           

          
            [Signature
              Page - Supplemental Indenture to Indenture, dated as of May 21,
              2001]

          

        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              U.S.
                BANK NATIONAL ASSOCIATION,
                as
                Trustee

            	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/Charles
              S. Hodges	 	 	 
	 	
              Name:
                Charles S. Hodges

            	 	 	 
	 	
              Title:  Vice
                President

            	 	 	 

    

     

     

    S
      -
      2

    

      [Signature
        Page - Supplemental Indenture to Indenture, dated as of May 21,
        2001]

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