Document:

Exhibit 10.7

                                    FORM OF
                       INCENTIVE STOCK OPTION AGREEMENT

                     MID-WISCONSIN FINANCIAL SERVICES, INC.
                             1999 STOCK OPTION PLAN

                       INCENTIVE STOCK OPTION AGREEMENT

  Agreement made as of _________________ __, 20__ (the "Date of Grant") between
Mid-Wisconsin Financial Services, Inc., a bank holding company organized under
the laws of the State of Wisconsin with its principal place of business at
Medford, Wisconsin (the "Company"), and _______________________ (the
"Optionee") for the purpose of granting certain options described below under
the terms of the Mid-Wisconsin Financial Services, Inc. 1999 Stock Option Plan
(the "Plan").

  1.  GRANT OF OPTION.  The Company hereby grants the Optionee the option to
purchase ___________ shares of the Common Stock (the "Shares") upon the terms
and conditions of the Plan, and the terms hereinafter stated.  It is intended
by the Company that this option constitute an incentive stock option within the
meaning of Section 422 of the Code.  There is no assurance that this option
will, in fact, be treated as an incentive stock option.

  2.  PURCHASE PRICE.  The Option Price shall be $______ for each Share.  Total
cost would be $______.

  3.  TIME OF EXERCISE.

    (a)  INITIAL EXERCISABILITY.  This option may be first exercised as to any
or all of the Shares subject to this option on or after _________, 20__.

    (b)  EXERCISE DURING OPTIONEE'S LIFETIME.  This option is exercisable
during the Optionee's lifetime only by him and only if this option is exercised
prior to the Expiration Date of this option.  For purposes of this Agreement,
the term "Expiration Date" of this option means the first to occur of:

          (i)  the tenth anniversary of the Date of Grant;

          (ii)  if the Optionee's Termination of Employment occurs because of
      the death of the Optionee, the first anniversary of the Optionee's death;

          (iii)  if the Optionee's Termination of Employment occurs because of
      the Disability of the Optionee, the first anniversary of the Optionee's
      Termination of Employment;
<PAGE>

          (iv)  if the Optionee's Termination of Employment occurs because of
      the Retirement of the Optionee, the date which is three months after the
      date on which the Optionee's Termination of Employment occurred;

          (v)  if the Optionee's Termination of Employment occurs because of a
      reason other than Disability or Retirement, the date which is three
      months after the date on which the Optionee's Termination of Employment
      occurs; or

          (vi)  if the Optionee has engaged in any act or omitted to take any
      action, and such action or omission constitutes Cause, the date of such
      action or failure to act.

provided, however, that notwithstanding the foregoing, in the event the
Optionee incurs a Termination of Employment for a reason other than for Cause
during the 24-month period following a Change in Control of the Company, this
option shall be exercisable in accordance with the terms of Section 6.3(e)(v)
of the Plan.

    (c)  EXERCISE AFTER OPTIONEE'S DEATH.  In the event of Termination of
Employment by reason of the Optionee's death, this option may be exercised in
whole or in part prior to the Expiration Date specified in subparagraph
3(b)(ii) by his estate or his designee by will to the extent this option was
exercisable by the Optionee immediately prior to his death but only prior to
the first anniversary of the Optionee's death.  In the event of the Optionee's
death after he had incurred a Termination of Employment by reason of Disability
or Retirement, this option may be exercised in whole or in part by the
Optionee's estate or his designee by will prior to the first to occur of (i)
the Expiration Date specified in subparagraph 3(b)(iii) or (iv), as the case
may be, and (ii) the first anniversary of the Optionee's death, but only to the
extent this option was exercisable by the Optionee immediately prior to his
death.

  4.  METHOD OF EXERCISE.

    (a)  NOTICE OF EXERCISE.  This option shall be exercisable by written
notice to the Secretary of the Company at its principal place of business at
Medford, Wisconsin.  Such notice shall be in substantially the form set forth
as Form 1 attached to this Agreement and shall state the exact number of Shares
as to which this option is being exercised and shall be signed by the person or
persons exercising this option.  The date of exercise shall be the date such
written notice and payment have been delivered to the Secretary of the Company
either in person or by depositing said notice and payment of the purchase price
in the United States mail, postage prepaid and addressed to the Secretary of
the Company at the Company's home business office.

    (b)  MINIMUM NUMBER OF SHARES.  This option cannot be exercised with
respect to any fractional Shares.

    (c)  PAYMENT FOR SHARES.  A notice of exercise shall be accompanied by
payment of the full purchase price of such Shares (plus minimum required tax
withholding, if any) by:
<PAGE>

          (i)  tendering cash (in the form of a check or otherwise) in such
      amount;

          (ii)  except as otherwise provided by the Committee prior to exercise
      of this option, tendering Shares with a Fair Market Value on the date of
      exercise equal to such amount; or

          (iii)  delivering irrevocable instructions to a broker to promptly
      deliver to the Company the sale or loan proceeds equal to such amount,
      along with documentation from such broker guaranteeing such payment.

    (d)  DELIVERY OF SHARES.  The Company shall deliver a certificate or
certificates representing Shares attributable to an exercise of this option as
soon as practicable after the notice of exercise and payment shall have been
received.  The certificate or certificates for the Shares as to which this
option shall have been exercised shall be registered in the name of the person
or persons exercising this option and shall be delivered as provided above to
the person or persons exercising this option.  The Company shall not be
obligated to deliver any certificates prior to the fulfillment by it of any
listing obligations with respect to the Shares on any exchange or over-the-
counter market or the registration or qualification of the Shares under any
federal or state securities laws which the Company deems advisable.

  5.  EFFECT OF CERTAIN EVENTS ON ISO STATUS.

    (a)  TERMINATION OF ISO TREATMENT.  This option is intended to constitute
an incentive stock option under Section 422 of the Code.  Among other things,
such status will not be afforded this option if:

          (i)  the exercise of this option occurs more than three months
      following the Optionee's Termination of Employment, except in the event
      of a Termination of Employment by reason of death or Disability; and

          (ii)  the Optionee disposes of any Shares received upon exercise of
      this option within two years after the date of this Agreement or within
      one year after such Shares were transferred to such Optionee.  In such
      case, the Optionee will be treated for federal income tax purposes as
      having received ordinary income at the time of such disposition in an
      amount generally measured by the difference between the Option Price and
      the lower of the Fair Market Value of the Shares at the date of the
      exercise or the Fair Market Value of the Shares at the date of
      disposition.  If the Optionee sells or disposes of such Shares at any
      time after the expiration of the two-year and one-year holding periods,
      any gain on such sale will be taxed as long-term capital gain.

    (b)  NOTICE OF DISQUALIFYING DISPOSITION OF SHARES.  The Optionee hereby
agrees to notify the Company in writing within 30 days after the date of any
sale or other disposition of any Shares received upon exercise of this option
within (i) two years after the date of this Agreement or (ii) one year after
such Shares were transferred to such Optionee.  Such notice shall be in a
Notice of Disqualifying Disposition in substantially the form attached hereto
as Form 2, which shall state the number of Shares sold or disposed of, the date
the shares were sold or disposed of, and the sale price, if applicable.
<PAGE>

  6.  ADJUSTMENT UPON CHANGES IN CAPITALIZATION.  If the Common Stock is
changed into a greater or lesser number of shares as a result of a stock
dividend, stock split-up, or combination of Shares, then the number of Shares
subject to this option and the Option Price shall be proportionately increased
or decreased to give effect to the change as provided for in the Plan.  In the
event of any other change in the Common Stock or change in the capitalization
of the Company, the Committee may make such changes in the terms of this option
as provided for in Section 3.5 of the Plan.

  7.  NON TRANSFERABILITY OF OPTION.  This option may be exercised only by the
Optionee or, if the Optionee dies, by the personal representative or designee
under the Optionee's will or by the Optionee's estate, as the case may be.
Except as otherwise provided in the preceding sentence, this option may not be
assigned, transferred, pledged or hypothecated in any way, shall not be
assignable by operation of law and shall not be subject to execution,
attachment or similar process.  Any attempted assignment, transfer, pledge,
hypothecation or other disposition of this option contrary to the provisions
hereof, and the levy of any execution, attachment or similar process upon this
option, shall be null and void and without effect.

  8.  SHARES AS INVESTMENT.  If not registered by the Company under the
Securities Act of 1933 (the "Act"), the Shares acquired pursuant to the
exercise of this option, will be "restricted" stock which will not be freely
transferable by the holder after exercise of this option.  The Optionee and any
successor in interest of the Optionee accordingly represents and acknowledges,
as a condition of the granting of this option, that (a) Shares which are
unregistered under the Act will be acquired for the Optionee's (or his
successor's) own account for investment only and not with a view to offer for
sale or for sale in connection with the distribution or transfer thereof and
(b) that the certificates representing Shares purchased pursuant to this option
which have not been registered pursuant to the Act will bear a legend as to
such restrictions on transfer.

  9.  EMPLOYMENT.  This Agreement does not constitute a contract of employment
between the Company or any subsidiary of the Company and the Optionee and it
shall not affect the right of the Company or any present or future subsidiary
of the Company to terminate the employment of the Optionee, with or without
cause, at any time.

  10.  CONSTRUCTION AND DEFINITIONS.  This Agreement is subject to and shall be
construed in accordance with the terms of the Plan which are explicitly made
applicable to this Agreement and incorporated by this reference.  Unless
otherwise defined, all terms used in this Agreement, when capitalized, have the
same meaning as such terms are defined in the Plan and each such definition is
hereby incorporated by this reference.  In the event of any conflict between
the provisions of this Agreement and the Plan, the provisions of the Plan shall
govern.

  11.  GOVERNING LAW.  This Agreement shall be governed by the laws of the
State of Wisconsin.
<PAGE>

  12.  BINDING EFFECT.  This Agreement shall be binding upon and inure to the
benefit of the Company and the Optionee and their successors in interest.

  13.  RECEIPT OF INFORMATION.  The Optionee hereby acknowledges receipt of a
copy of the Plan and of the Company's most recent annual report to its
shareholders.

  IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
officer, thereunto duly authorized, and the Optionee has acknowledged his
acceptance of this option in accordance with the terms of this Agreement and
the Plan, all as of the Date of Grant.

OPTIONEE:                      MID-WISCONSIN FINANCIAL SERVICES, INC.

_________________________      By:___________________________
_________________________            ________________________
Optionee                           As its ___________________

<PAGE>
                                                                        Form 1
                     MID-WISCONSIN FINANCIAL SERVICES, INC.
                           1999 STOCK OPTION PLAN
                   NOTICE OF INTENT TO EXERCISE STOCK OPTION

  The undersigned Optionee hereby exercises the option to purchase shares of
common stock of Mid-Wisconsin Financial Services, Inc. under the Mid-Wisconsin
Financial Services, Inc. 1999 Stock Option Plan as follows:

Date of Grant:    __________________, _____

Type of Option:  ( ) Incentive Stock Option
                 ( ) Non-qualified Stock Option

Number of Shares:  ____________ (whole shares only)

Option Price:    $___________ per Share

Income Tax Due*:  $___________

      *The Company is required to withhold taxes when a non-qualified option is
      being exercised.  Under current tax law, the Company is not required to
      withhold taxes when an optionee exercises an incentive stock option.

Total Amount Due:  $___________

Method of Payment:  Indicate the method or methods by which payment will be
made:

  ( ) Check

  ( ) Withholding
      The Company is directed to withhold ____ Shares.

  ( ) Surrender of Company Shares (subject to approval of the Committee)
      No. of Shares surrendered:_____________
     ( ) by delivery   ( ) by attestation
     (Shares must have been purchased on the open market and held for at least 6
     months)

  ( ) Cashless exercise and sale or loan by broker (attach copy of broker sale
      or loan agreement)  By checking this box, the Optionee certifies that
      no shares to be sold will violate any Company policies on insider
      trading.

Date:  _______________, 200__.

Optionee Name:   _______________________  Signature:   ______________________

Social Security No.   ____________________

Address: Street:
______________________________________________________________

City:   _____________________________   State: ____   Zip: __________
<PAGE>

                                                                         Form 2
                        MID-WISCONSIN FINANCIAL SERVICES, INC.
                              1999 STOCK OPTION PLAN

                        NOTICE OF DISQUALIFYING DISPOSITION

To:  Mid-Wisconsin Financial Services, Inc. (the "Company")

  I hereby notify the Company that I have disposed of the following Shares
which I acquired upon exercise of an option under the Mid-Wisconsin Financial
Services, Inc. 1999 Stock Option Plan.  I understand that for federal income
tax purposes, the Company is required to report as compensation on Form W-2 the
net proceeds of my sale of Shares which I acquired upon exercise of an
incentive stock option if I sell the Shares (1) within one year from the date I
exercised the option, or (2) within two years from the date of the grant of the
option.

  I sold the following shares:

  Date of Grant:      ___________________, _________

  Exercise Date:      ___________________, _________

  Option Price:      $__________________

  Date of Sale or Other
  Disposition:        ___________________, _________

  Market Value or Sales
  Price Received:    $__________________

  No. of Shares Sold or
  Disposed of:        ___________________

Date:  _______________, 200__.

Optionee Name:   _______________________    Signature:   ______________________

Social Security No.   ____________________

Address: Street:

______________________________________________________________

City:   _____________________________   State: ____   Zip: __________Exhibit 4.1 Indenture

Exhibit
4.1

 

 

M/I
HOMES, INC.,

 

THE
GUARANTORS

 

named
herein

 

and

 

U.S. BANK
National Association, as Trustee

 

INDENTURE

 

Dated as
of March 24,
2005

 

67⁄8%
Senior Notes due 2012

 

 

CROSS-REFERENCE
TABLE

TIA Indenture

Section 
Section 

 

	
      310
	
      (a)(1)
	
      
	
      7.10

	
      
	
      (a)(2)
	
      
	
      7.10

	
      
	
      (a)(3)
	
      
	
      N.A.

	
      
	
      (a)(4)
	
      
	
      N.A.

	
      
	
      (a)(5)
	
      
	
      N.A.

	
      
	
      (b)
	
      
	
      7.08;
      7.10; 12.02

	
      
	
      (b)(1)
	
      
	
      7.10

	
      
	
      (c)
	
      
	
      N.A.

	
      311
	
      (a)
	
      
	
      7.11

	
      
	
      (b)
	
      
	
      7.11

	
      
	
      (c)
	
      
	
      N.A.

	
      312
	
      (a)
	
      
	
      2.06

	
      
	
      (b)
	
      
	
      12.03

	
      
	
      (c)
	
      
	
      12.03

	
      313
	
      (a)
	
      
	
      7.06

	
      
	
      (b)(1)
	
      
	
      N.A.

	
      
	
      (b)(2)
	
      
	
      7.06

	
      
	
      (c)
	
      
	
      7.06;
      12.02

	
      
	
      (d)
	
      
	
      7.06

	
      314
	
      (a)
	
      
	
      4.02;
      4.04; 12.02

	
      
	
      (b)
	
      
	
      N.A.

	
      
	
      (c)(1)
	
      
	
      12.04

	
      
	
      (c)(2)
	
      
	
      12.04

	
      
	
      (c)(3)
	
      
	
      N.A.

	
      
	
      (d)
	
      
	
      N.A.

	
      
	
      (e)
	
      
	
      12.05

	
      
	
      (f)
	
      
	
      N.A.

	
      315
	
      (a)
	
      
	
      7.01(b)

	
      
	
      (b)
	
      
	
      7.05;
      12.02

	
      
	
      (c)
	
      
	
      7.01(a)

	
      
	
      (d)
	
      
	
      7.01(c)

	
      
	
      (e)
	
      
	
      6.12

	
      316
	
      (a)
      (last sentence)
	
      
	
      2.10

	
      
	
      (a)(1)(A)
	
      
	
      6.05

	
      
	
      (a)(1)(B)
	
      
	
      6.04

	
      
	
      (a)(2)
	
      
	
      N.A.

	
      
	
      (b)
	
      
	
      6.08

	
      
	
      (c)
	
      
	
      8.04

	
      317
	
      (a)(1)
	
      
	
      6.09

	
      
	
      (a)(2)
	
      
	
      6.10

	
      
	
      (b)
	
      
	
      2.05;
      7.12

	
      318
	
      (a)
	
      
	
      12.01

 

_______________________

N.A.
means Not Applicable

Note: This
Cross-Reference Table shall not, for any purpose, be deemed to be a part of the
Indenture

TABLE OF
CONTENTS

                                 
Page

ARTICLE
ONE

DEFINITIONS
AND INCORPORATION BY REFERENCE

	
      SECTION
      1.01.
	
      Definitions
	
      1

	
      SECTION
      1.02.
	
      Other
      Definitions
	
      34

	
      SECTION
      1.03.
	
      Incorporation
      by Reference of Trust Indenture Act
	
      35

	
      SECTION
      1.04.
	
      Rules
      of Construction
	
      36

	 	 	 
	
      ARTICLE
      TWO

	 	 	 
	
      THE
      NOTES

	 	 	 
	
      SECTION
      2.01.
	
      Amount
      of Notes
	
      37

	
      SECTION
      2.02.
	
      Form
      and Dating
	
      37

	
      SECTION
      2.03.
	
      Execution
      and Authentication
	
      38

	
      SECTION
      2.04.
	
      Registrar
      and Paying Agent
	
      39

	
      SECTION
      2.05.
	
      Paying
      Agent to Hold Money in Trust
	
      39

	
      SECTION
      2.06.
	
      Holder
      Lists
	
      39

	
      SECTION
      2.07.
	
      Transfer
      and Exchange
	
      40

	
      SECTION
      2.08.
	
      Replacement
      Notes
	
      40

	
      SECTION
      2.09.
	
      Outstanding
      Notes
	
      41

	
      SECTION
      2.10.
	
      Treasury
      Notes
	
      41

	
      SECTION
      2.11.
	
      Temporary
      Notes
	
      42

	
      SECTION
      2.12.
	
      Cancellation
	
      42

	
      SECTION
      2.13.
	
      Defaulted
      Interest
	
      42

	
      SECTION
      2.14.
	
      CUISP
      Number
	
      42

	
      SECTION
      2.15.
	
      Deposit
      of Moneys
	
      43

	
      SECTION
      2.16.
	
      Book-Entry
      Provisions for Global Notes
	
      43

	
      SECTION
      2.17.
	
      Special
      Transfer Provisions
	
      45

	
      SECTION
      2.18.
	
      Computation
      of Interest
	
      47

	 	 	 
	
      ARTICLE
      THREE

	 	 	 
	
      REDEMPTION

	 	 	 
	
      SECTION
      3.01
	
      Election
      To Redeem; Notices to Trustee
	
      47

	
      SECTION
      3.02
	
      Selection
      by Trustee of Notes To Be Redeemed
	
      47

	
      SECTION
      3.03.
	
      Notice
      of Redemption
	
      48

	
      SECTION
      3.04.
	
      Effect
      of Notice of Redemption
	
      49

	
      SECTION
      3.05.
	
      Deposit
      of Redemption Price
	
      49

	
      SECTION
      3.06.
	
      Notes
      Redeemed in Part
	
      50

	 	 	 
	 	 	 
	
      ARTICLE
      FOUR

	 	 	
       

	
      COVENANTS

	 	 	 
	
      SECTION
      4.01.
	
      Payment
      of Notes
	
      50

	
      SECTION
      4.02.
	
      Reports
      to Holders
	
      50

	
      SECTION
      4.03.
	
      Waiver
      of Stay, Extension of Usury Laws
	
      51

	
      SECTION
      4.04.
	
      Compliance
      Certificate
	
      51

	
      SECTION
      4.05.
	
      Taxes
	
      52

	
      SECTION
      4.06.
	
      Limitations
      on Additional Indebtedness
	
      52

	
      SECTION
      4.07.
	
      Limitations
      on Layering Indebtedness
	
      54

	
      SECTION
      4.08.
	
      Limitations
      on Restricted Payments
	
      54

	
      SECTION
      4.09.
	
      Limitations
      on Asset Sales
	
      56

	
      SECTION
      4.10.
	
      Limitations
      on Transactions with Affiliates
	
      59

	
      SECTION
      4.11.
	
      Limitations
      on Liens
	
      60

	
      SECTION
      4.12.
	
      Conduct
      of Business
	
      60

	
      SECTION
      4.13.
	
      Additional
      Guarantees
	
      61

	
      SECTION
      4.14.
	
      Limitations
      on Dividend and Other Restrictions Affecting
	 
	 	
      Restricted
      Subsidiaries
	
      61

	
      SECTION
      4.15.
	
      Limitations
      on Designation of Unrestricted Subsidiaries
	
      62

	
      SECTION
      4.16.
	
      [Intentionally
      Omitted]
	
      64

	
      SECTION
      4.17.
	
      [Intentionally
      Omitted]
	
      64

	
      SECTION
      4.18.
	
      Payments
      for Consent
	
      64

	
      SECTION
      4.19.
	
      Legal
      Existence
	
      64

	
      SECTION
      4.20
	
      Change
      of Control Offer
	
      64

	 	 	 
	
      ARTICLE
      FIVE

	 	 	 
	
      SUCCESSOR
      CORPORATION

	 	 	 
	
      SECTION
      5.01.
	
      Limitations
      on Mergers, Consolidations, Etc.
	
      66

	
      SECTION
      5.02.
	
      Successor
      Person Substituted
	
      68

	 	 	 
	
      ARTICLE
      SIX

	 	 	 
	
      DEFAULTS
      AND REMEDIES

	 	 	 
	
      SECTION
      6.01.
	
      Events
      of Default
	
      68

	
      SECTION
      6.02.
	
      Acceleration
	
      70

	
      SECTION
      6.03.
	
      Other
      Remedies
	
      70

	
      SECTION
      6.04.
	
      Waiver
      of Past Defaults and Events of Default
	
      70

	
      SECTION
      6.05.
	
      Control
      by Majority
	
      71

	
      SECTION
      6.06.
	
      Limitations
      on Suits
	
      71

	
      SECTION
      6.07.
	
      No
      Personal Liability of Directors, Officers, Employees and
	 
	 	
      Stockholders
	
      71

	
      SECTION
      6.08.
	
      Rights
      of Holders to Receive Payment
	
      72

	
      SECTION
      6.09.
	
      Collection
      Suit by Trustee
	
      72

	
      SECTION
      6.10.
	
      Trustee
      May File Proofs of Claim
	
      72

	 	 	
       

	 	 	 
	
      SECTION
      6.11.
	
      Priorities
	
      73

	
      SECTION
      6.12.
	
      Undertaking
      for Costs
	
      73

	
      SECTION
      6.13.
	
      Restoration
      of Rights and Remedies
	
      73

	 	 	 
	
      ARTICLE
      SEVEN

	 	 	 
	
      TRUSTEE

	 	 	 
	
      SECTION
      7.01.
	
      Duties
      of Trustee
	
      74

	
      SECTION
      7.02.
	
      Rights
      of Trustee
	
      75

	
      SECTION
      7.03.
	
      Individual
      Rights of Trustee
	
      76

	
      SECTION
      7.04.
	
      Trustee’s
      Disclaimer
	
      76

	
      SECTION
      7.05.
	
      Notice
      of Defaults
	
      76

	
      SECTION
      7.06.
	
      Reports
      by Trustee to Holders
	
      76

	
      SECTION
      7.07.
	
      Compensation
      and Indemnity
	
      77

	
      SECTION
      7.08.
	
      Replacement
      of Trustee
	
      78

	
      SECTION
      7.09.
	
      Successor
      Trustee by Consolidation, Merger, etc.
	
      79

	
      SECTION
      7.10.
	
      Eligibility;
      Disqualification
	
      79

	
      SECTION
      7.11.
	
      Preferential
      Collection of Claims Against Issuer
	
      79

	
      SECTION
      7.12.
	
      Payment
      Agents
	
      79

	 	 	 
	
      ARTICLE
      EIGHT

	 	 	 
	
      ADENDMENTS,
      SUPPLEMENTS AND WAIVERS

	 	 	 
	
      SECTION
      8.01.
	
      Without
      Consent of Holders
	
      80

	
      SECTION
      8.02.
	
      With
      Consent of Holders
	
      81

	
      SECTION
      8.03.
	
      Compliance
      with Trust Indenture Act
	
      82

	
      SECTION
      8.04.
	
      Revocation
      and Effect of Consents
	
      82

	
      SECTION
      8.05.
	
      Notation
      on or Exchange of Notes
	
      83

	
      SECTION
      8.06.
	
      Trustee
      to Sign Amendments, etc.
	
      83

	 	 	 
	
      ARTICLE
      NINE

	 	 	 
	
      DISCHARGE
      OF INDENTURE; DEFEASANCE

	 	 	 
	
      SECTION
      9.01.
	
      Discharge
      of Indenture
	
      83

	
      SECTION
      9.02.
	
      Legal
      Defeasance
	
      84

	
      SECTION
      9.03.
	
      Covenant
      Defeasance
	
      85

	
      SECTION
      9.04.
	
      Conditions
      to Defeasance or Covenant Defeasance
	
      85

	
      SECTION
      9.05.
	
      Deposited
      Money and U.S. Government Obligations To Be
	 
	 	
      Held
      in Trust; Other Miscellaneous Provisions
	
      87

	
      SECTION
      9.06.
	
      Reinstatement
	
      87

	
      SECTION
      9.07.
	
      Moneys
      Held by Paying Agent
	
      87

	
      SECTION
      9.08.
	
      Moneys
      Held by Trustee
	
      88

	 	 	 
	
       

	
      ARTICLE
      TEN

	 	 	 
	
      GUARANTEE
      OF NOTES

	 	 	 
	
      SECTION
      10.01.
	
      Guarantee
	
      88

	
      SECTION
      10.02.
	
      Execution
      and Delivery of Guarantee
	
      89

	
      SECTION
      10.03.
	
      Limitation
      of Guarantee
	
      90

	
      SECTION
      10.04.
	
      Release
      of Guarantor
	
      90

	
      SECTION
      10.05.
	
      Waiver
      of Subrogation
	
      91

	 	 	 
	
      ARTICLE
      ELEVEN

	 	 	 
	
      [INTENTIONALLY
      OMITTED]

	 	 	 
	
      ARTICLE
      TWELVE

	 	 	 
	
      MISCELLANEOUS

	 	 	 
	
      SECTION
      12.01.
	
      Trust
      Indenture Act Controls
	
      91

	
      SECTION
      12.02.
	
      Notices
	
      92

	
      SECTION
      12.03.
	
      Communications
      by Holders with Other Holders
	
      93

	
      SECTION
      12.04.
	
      Certificate
      and Opinion as to Conditions Precedent
	
      93

	
      SECTION
      12.05.
	
      Statement
      Required in Certificate and Opinion
	
      93

	
      SECTION
      12.06.
	
      Rules
      by Trustee and Agents
	
      94

	
      SECTION
      12.07.
	
      Business
      Days; Legal Holidays
	
      94

	
      SECTION
      12.08.
	
      Governing
      Law
	
      94

	
      SECTION
      12.09.
	
      No
      Adverse Interpretation of Other Agreements
	
      94

	
      SECTION
      12.10.
	
      No
      Recourse Against Others
	
      94

	
      SECTION
      12.11.
	
      Successors
	
      95

	
      SECTION
      12.12.
	
      Multiple
      Counterparts
	
      95

	
      SECTION
      12.13.
	
      Table
      of Contents, Headings, etc.
	
      95

	
      SECTION
      12.14
	
      Separability
	
      95

	 	 	 
	
      EXHIBITS

	 	 	 
	
      Exhibit
      A
	
      Form
      of Note
	
      A-1

	
      Exhibit
      B
	
      Form
      of Legend for Rule 144A Notes and Other Notes That
	 
	 	
      Are
      Restricted Notes
	
      B-1

	
      Exhibit
      C
	
      Form
      of Legend for Regulation S Note
	
      C-1

	
      Exhibit
      D
	
      Form
      of Legend for Global Note
	
      D-1

	
      Exhibit
      E
	
      Form
      of Certificate To Be Delivered in Connection with
	 
	 	
      Transfers
      to Non-QIB Accredited Investors
	
      E-1

	
      Exhibit
      F
	
      Form
      of Certificate To Be Delivered in Connection with
	 
	 	
      Pursuant
      to Regulation S
	
      F-1

	
      Exhibit
      G
	
      Form
      of Guarantee
	
      G-1

 

 

INDENTURE,
dated as of March 24, 2005, among M/I HOMES, INC., an Ohio corporation, as
issuer (the “Issuer”), the
Guarantors (as hereinafter defined) and U.S. BANK NATIONAL ASSOCIATION, as
trustee (the “Trustee”).

 

Each
party agrees as follows for the equal and ratable benefit of the
Holders.

 

 

ARTICLE
ONE  

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

	SECTION
      1.01.  	
      Definitions.

 

“Acquired
Indebtedness” means
(1) with respect to any Person that becomes a Restricted Subsidiary after the
Issue Date, Indebtedness of such Person and its Subsidiaries existing at the
time such Person becomes a Restricted Subsidiary that was not incurred in
connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary and (2) with respect to the Issuer or any Restricted Subsidiary, any
Indebtedness of a Person (other than the Issuer or a Restricted Subsidiary)
existing at the time such Person is merged with or into the Issuer or a
Restricted Subsidiary, or Indebtedness expressly assumed by the Issuer or any
Restricted Subsidiary in connection with the acquisition of an asset or assets
from another Person, which Indebtedness was not, in any case, incurred by such
other Person in connection with, or in contemplation of, such merger or
acquisition.

 

“Additional
Notes” shall
mean an unlimited principal amount of Notes having identical terms and
conditions to the Notes issued pursuant to Article Two and in compliance with
Section 4.06.

 

“Adjusted
Net Assets” of a
Guarantor at any date shall mean the lesser of the amount by which (x) the
fair value of the property of such Guarantor exceeds the total amount of
liabilities, including, without limitation, contingent liabilities (after giving
effect to all other fixed and contingent liabilities), but excluding liabilities
under the Guarantee, of such Guarantor at such date and (y) the present
fair salable value of the assets of such Guarantor at such date exceeds the
amount that will be required to pay the probable liability of such Guarantor on
its debts and all other fixed and contingent liabilities (after giving effect to
all other fixed and contingent liabilities and after giving effect to any
collection from any Subsidiary of such Guarantor in respect of the obligations
of such Guarantor under the Guarantee), excluding Indebtedness in respect of the
Guarantee, as they become absolute and matured.

 

“Affiliate” of any
Person means any other Person which directly or indirectly controls or is
controlled by, or is under direct or indirect common control with, the referent
Person. For purposes of Section 4.10, Affiliates shall be deemed to
include, with respect to any Person, any other Person (1) which beneficially
owns or holds, directly or indirectly, 10% or more of any class of the Voting
Stock of the referent Person, (2) of which 10% or more of the Voting Stock is
beneficially owned or held, directly or indirectly, by the referent Person or
(3) with respect to an individual, any immediate family member of such Person.
For purposes of this definition, “control” of a Person shall mean 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.

 

“Agent” means
any Registrar, Paying Agent or agent for service or notices and demands.

 

“amend” means
to amend, supplement, restate, amend and restate or otherwise modify; and
“amendment” shall
have a correlative meaning.

 

“asset” means
any asset or property.

 

“Asset
Acquisition”
means

 

(1) an
Investment by the Issuer or any Restricted Subsidiary of the Issuer in any other
Person if, as a result of such Investment, such Person shall become a Restricted
Subsidiary of the Issuer, or shall be merged with or into the Issuer or any
Restricted Subsidiary of the Issuer, or

 

(2) the
acquisition by the Issuer or any Restricted Subsidiary of the Issuer of all or
substantially all of the assets of any other Person or any division or line of
business of any other Person.

 

“Asset
Sale” means
any sale, issuance, conveyance, transfer, lease, assignment or other disposition
by the Issuer or any Restricted Subsidiary to any Person other than the Issuer
or any Restricted Subsidiary (including by means of a Sale and Leaseback
Transaction or a merger or consolidation), in one transaction or a series of
related transactions, of any assets (including Equity Interests) of the Issuer
or any of its Restricted Subsidiaries other than in the ordinary course of
business. For purposes of this definition, the term “Asset Sale” shall not
include:

 

(1) transfers
of cash or Cash Equivalents;

 

(2) transfers
of assets (including Equity Interests) that are governed by, and made in
accordance with, Section 5.01;

 

(3) Permitted
Investments and Restricted Payments permitted under
Section 4.08;

 

(4) the
creation or realization of any Permitted Lien;

 

(5) transactions
in the ordinary course of business, including, without limitation, sales
(directly or indirectly), dedications and other donations to governmental
authorities, leases and sales and leasebacks of (A) homes, improved land and
unimproved land and (B) real estate (including related amenities and
improvements);

 

(6) dispositions
of mortgage loans and related assets and mortgage-backed securities in the
ordinary course of a mortgage lending business; and

 

(7) any
transfer or series of related transfers that, but for this clause, would be
Asset Sales, if after giving effect to such transfers, the aggregate Fair Market
Value of the assets transferred in such transaction or any such series of
related transactions does not exceed $3.0 million.

 

“Attributable
Indebtedness,” when
used with respect to any Sale and Leaseback Transaction, means, as at the time
of determination, the present value (discounted at a rate equivalent to the
Issuer’s then-current weighted average cost of funds for borrowed money as at
the time of determination, compounded on a semi-annual basis) of the total
obligations of the lessee for rental payments during the remaining term of any
Capitalized Lease included in any such Sale and Leaseback
Transaction.

 

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

 

“Board
of Directors” means,
with respect to any Person, the board of directors or comparable governing body
of such Person.

 

“Board
Resolution” means a
copy of a resolution certified pursuant to an Officers’ Certificate to have been
duly adopted by the Board of Directors of the Issuer and to be in full force and
effect, and delivered to the Trustee.

 

“Borrowing
Base” means,
at any time of determination, the sum of the following unencumbered assets
(other than Liens permitted by clauses (1) and (12) of the definition of
Permitted Liens) of the Issuer and its Restricted Subsidiaries, without
duplication:

 

(1) one
hundred percent (100%) of the Receivables, plus

 

(2) ninety
percent (90%) of the book value of Housing Units Under Contract and Lots Under
Contract, plus

 

(3) seventy-five
percent (75%) of the book value of Speculative Housing Units, plus

 

(4) seventy
percent (70%) of the book value of Finished Lots (subject to the limitation set
forth below), plus

 

(5) fifty
percent (50%) of the book value of Lots Under Development (subject to the
limitation set forth below), plus

 

(6) thirty
percent (30%) of the book value of Unimproved Entitled Land (subject to the
limitation set forth below).

 

Notwithstanding
the foregoing, the Borrowing Base shall not include any amounts under clauses
(4), (5) and (6) above to the extent that the sum of such amounts exceeds
forty-five percent (45%) of the total Borrowing Base.

 

“Capitalized
Lease” means a
lease required to be capitalized for financial reporting purposes in accordance
with GAAP.

 

“Capitalized
Lease Obligations” of any
Person means the obligations of such Person to pay rent or other amounts under a
Capitalized Lease, and the amount of such obligation shall be the capitalized
amount thereof determined in accordance with GAAP.

 

“Cash
Equivalents”
means:

 

(1) marketable
obligations with a maturity of 360 days or less issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof;

 

(2) demand
and time deposits and certificates of deposit or acceptances with a maturity of
180 days or less of any financial institution that is a member of the Federal
Reserve System having combined capital and surplus and undivided profits of not
less than $500 million and is assigned at least a “B” rating by Thomson
Financial BankWatch;

 

(3) commercial
paper maturing no more than 180 days from the date of creation thereof issued by
a corporation that is not the Issuer or an Affiliate of the Issuer, and is
organized under the laws of any State of the United States of America or the
District of Columbia and rated at least A-1 by S&P or at least P-1 by
Moody’s;

 

(4) repurchase
obligations with a term of not more than ten days for underlying securities of
the types described in clause (1) above entered into with any commercial bank
meeting the specifications of clause (2) above; and

 

(5) investments
in money market or other mutual funds substantially all of whose assets comprise
securities of the types described in clauses (1) through (4) above.

 

“Change
of Control” means
the occurrence of any of the following events:

 

(1) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), other than one or more Permitted Holders, is or becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that for purposes of this clause that person or group shall be deemed to
have “beneficial ownership” of all securities that any such person or group has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of Voting Stock representing
more than 50% of the voting power of the total outstanding Voting Stock of the
Issuer;

 

(2) during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors of the Issuer (together with any new
directors whose election to such Board of Directors or whose nomination for
election by the stockholders of the Issuer was approved by a vote of the
majority of the directors of the Issuer then still in office who were either
directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Issuer;

 

(3) (a) all
or substantially all of the assets of the Issuer and the Restricted Subsidiaries
are sold or otherwise transferred to any Person other than a Wholly-Owned
Restricted Subsidiary or one or more Permitted Holders or (b) the Issuer
consolidates or merges with or into another Person other than a Permitted Holder
or any Person other than a Permitted Holder consolidates or merges with or into
the Issuer, in either case under this clause (3), in one transaction or a series
of related transactions in which immediately after the consummation thereof
Persons owning Voting Stock representing in the aggregate 100% of the total
voting power of the Voting Stock of the Issuer immediately prior to such
consummation do not own Voting Stock representing a majority of the total voting
power of the Voting Stock of the Issuer or the surviving or transferee Person;
or

 

(4) the
Issuer shall adopt a plan of liquidation or dissolution or any such plan shall
be approved by the stockholders of the Issuer.

 

“Comparable
Treasury Issue” means
the United States Treasury security selected by the Reference Treasury Dealer as
having a maturity comparable to the remaining term of the Notes being redeemed
that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of such Notes being
redeemed.

 

“Comparable
Treasury Price” means,
with respect to any Redemption Date:

 

(a) the
average of the bid and ask prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) on the third Business Day
preceding such Redemption Date, as set forth in the most recently published
statistical release designated “H.15(519)” (or any successor release) published
by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities”; or

 

(b) if such
release (or any successor release) is not published or does not contain such
prices on such Business Day, the Reference Treasury Dealer Quotation for such
Redemption Date.

 

“Consolidated
Amortization Expense” for any
period means the amortization expense of the Issuer and the Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated
Cash Flow Available for Fixed Charges” for any
period means, without duplication, the sum of the amounts for such period
of

 

(1) Consolidated
Net Income, plus

 

(2) in each
case only to the extent (and in the same proportion) deducted in determining
Consolidated Net Income and with respect to the portion of Consolidated Net
Income attributable to any Restricted Subsidiary only if a corresponding amount
would be permitted at the date of determination to be distributed to the Issuer
by such Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements, instruments,
judgments, decrees, orders, statutes, rules and governmental regulations
applicable to such Restricted Subsidiary or its stockholders,

 

(a) Consolidated
Income Tax Expense,

 

(b) Consolidated
Amortization Expense (but only to the extent not included in Consolidated
Interest Expense),

 

(c) Consolidated
Depreciation Expense,

 

(d) Consolidated
Interest Expense, and

 

(e) all other
non-cash items reducing Consolidated Net Income (excluding any non-cash charge
that results in an accrual of a reserve for cash charges in any future period)
for such period,

 

in each
case determined on a consolidated basis in accordance with GAAP, minus

 

(3) the
aggregate amount of all non-cash items, determined on a consolidated basis, to
the extent such items increased Consolidated Net Income for such
period.

 

“Consolidated
Depreciation Expense” for any
period means the depreciation expense of the Issuer and the Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated
Fixed Charge Coverage Ratio” means
the ratio of Consolidated Cash Flow Available for Fixed Charges during the most
recent four consecutive full fiscal quarters for which financial statements are
available (the “Four-Quarter
Period”) ending
on or prior to the date of the transaction giving rise to the need to calculate
the Consolidated Fixed Charge Coverage Ratio (the “Transaction
Date”) to
Consolidated Interest Incurred for the Four-Quarter Period. For purposes of this
definition, Consolidated Cash Flow Available for Fixed Charges and Consolidated
Interest Incurred shall be calculated after giving effect on a pro forma basis
for the period of such calculation to:

 

(1) the
incurrence of any Indebtedness or the issuance of any Preferred Stock of the
Issuer or any Restricted Subsidiary (and the application of the proceeds
thereof) and any repayment of other Indebtedness or redemption of other
Preferred Stock (and the application of the proceeds therefrom) (other than the
incurrence or repayment of Indebtedness in the ordinary course of business for
working capital purposes pursuant to any revolving credit arrangement) occurring
during the Four-Quarter Period or at any time subsequent to the last day of the
Four-Quarter Period and on or prior to the Transaction Date, as if such
incurrence, repayment, issuance or redemption, as the case may be (and the
application of the proceeds thereof), occurred on the first day of the
Four-Quarter Period; and

 

(2) any Asset
Sale or Asset Acquisition (including, without limitation, any Asset Acquisition
giving rise to the need to make such calculation as a result of the Issuer or
any Restricted Subsidiary (including any Person who becomes a Restricted
Subsidiary as a result of such Asset Acquisition) incurring Acquired
Indebtedness and also including any Consolidated Cash Flow Available for Fixed
Charges (including any pro forma expense and cost reductions calculated on a
basis consistent with Regulation S-X under the Exchange Act) associated with any
such Asset Acquisition) occurring during the Four-Quarter Period or at any time
subsequent to the last day of the Four-Quarter Period and on or prior to the
Transaction Date, as if such Asset Sale or Asset Acquisition or other
disposition (including the incurrence of, or assumption or liability for, any
such Indebtedness or Acquired Indebtedness) occurred on the first day of the
Four-Quarter Period;

 

provided, that
Indebtedness incurred under revolving credit facilities shall be deemed to be
the average daily balance of Indebtedness during such Four-Quarter Period (or
any shorter period in which such facilities are in effect).

 

If the
Issuer or any Restricted Subsidiary directly or indirectly guarantees
Indebtedness of a third Person, the preceding sentence shall give effect to the
incurrence of such guaranteed Indebtedness as if the Issuer or such Restricted
Subsidiary had directly incurred or otherwise assumed such guaranteed
Indebtedness.

 

In
calculating Consolidated Interest Incurred for purposes of determining the
denominator (but not the numerator) of the Consolidated Fixed Charge Coverage
Ratio:

 

(1) interest
on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall be
deemed to have accrued at a fixed rate per annum equal to the rate of interest
on this Indebtedness in effect on the Transaction Date;

 

(2) if
interest on any Indebtedness actually incurred on the Transaction Date may
optionally be determined at an interest rate based upon a factor of a prime or
similar rate, a eurocurrency interbank offered rate, or other rates, then the
interest rate in effect on the Transaction Date will be deemed to have been in
effect during the Four-Quarter Period; and

 

(3) notwithstanding
clause (1) or (2) above, interest on Indebtedness determined on a fluctuating
basis, to the extent such interest is covered by agreements with a term of at
least one year after the Transaction Date relating to Hedging Obligations, shall
be deemed to accrue at the rate per annum resulting after giving effect to the
operation of these agreements.

 

“Consolidated
Income Tax Expense” for any
period means the provision for taxes of the Issuer and the Restricted
Subsidiaries, determined on a consolidated basis in accordance with
GAAP.

 

“Consolidated
Indebtedness” means,
as of any date, the total Indebtedness of the Issuer and the Restricted
Subsidiaries as of such date, determined on a consolidated basis.

 

“Consolidated
Interest Expense” for any
period means the sum, without duplication, of the total interest expense of the
Issuer and the Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP and including without
duplication,

 

(1) imputed
interest on Capitalized Lease Obligations and Attributable
Indebtedness;

 

(2) commissions,
discounts and other fees and charges owed with respect to letters of credit
securing financial obligations, bankers’ acceptance financing and receivables
financings;

 

(3) the net
costs associated with Hedging Obligations;

 

(4) amortization
of debt issuance costs, debt discount or premium and other financing fees and
expenses;

 

(5) the
interest portion of any deferred payment obligations;

 

(6) all other
non-cash interest expense;

 

(7) the
product of (a) all dividend payments on any series of Disqualified Equity
Interests of the Issuer or any Preferred Stock of any Restricted Subsidiary
(other than any such Disqualified Equity Interests or any Preferred Stock held
by the Issuer or a Wholly-Owned Restricted Subsidiary), multiplied
by (b) a
fraction, the numerator of which is one and the denominator of which is one
minus
the then
current combined federal, state and local statutory tax rate of the Issuer and
the Restricted Subsidiaries, expressed as a decimal;

 

(8) interest
amortized to land and housing costs;

 

(9) all
interest payable with respect to discontinued operations; and

 

(10) all
interest on any Indebtedness of any other Person guaranteed by the Issuer or any
Restricted Subsidiary.

 

“Consolidated
Interest Incurred” for any
period means the sum, without duplication, of (1) Consolidated Interest Expense
and (2) interest capitalized for such period, but excluding interest amortized
to land and housing costs.

 

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

 

(1) the net
income (or loss) of any Person (other than a Restricted Subsidiary) in which any
Person other than the Issuer and the Restricted Subsidiaries has an ownership
interest, except to the extent that cash in an amount equal to any such income
has actually been received by the Issuer or any of its Restricted Subsidiaries
during such period;

 

(2) except to
the extent includible in the consolidated net income of the Issuer pursuant to
the foregoing clause (1), the net income (or loss) of any Person that accrued
prior to the date that (a) such Person becomes a Restricted Subsidiary or is
merged into or consolidated with the Issuer or any Restricted Subsidiary or (b)
the assets of such Person are acquired by the Issuer or any Restricted
Subsidiary;

 

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

 

(4) for the
purposes of calculating the Restricted Payments Basket only, in the case of a
successor to the Issuer by consolidation, merger or transfer of its assets, any
income (or loss) of the successor prior to such merger, consolidation or
transfer of assets;

 

(5) other
than for purposes of calculating the Restricted Payments Basket, any gain (or
loss), together with any related provisions for taxes on any such gain (or the
tax effect of any such loss), realized during such period by the Issuer or any
Restricted Subsidiary upon (a) the acquisition of any securities, or the
extinguishment of any Indebtedness, of the Issuer or any Restricted Subsidiary
or (b) any Asset Sale by the Issuer or any Restricted Subsidiary;
and

 

(6) other
than for purposes of calculating the Restricted Payments Basket, any
extraordinary gain (or extraordinary loss), together with any related provision
for taxes on any such extraordinary gain (or the tax effect of any such
extraordinary loss), realized by the Issuer or any Restricted Subsidiary during
such period.

 

In
addition, any return of capital with respect to an Investment that increased the
Restricted Payments Basket pursuant to clause (3)(d) of the first paragraph of
Section 4.08 or decreased the amount of Investments outstanding pursuant to
clause (14) of the definition of “Permitted Investments” shall be excluded from
Consolidated Net Income for purposes of calculating the Restricted Payments
Basket.

 

“Consolidated
Net Tangible Assets” means,
at any date, the Consolidated Tangible Assets of the Issuer and the Restricted
Subsidiaries at the end of the fiscal quarter immediately preceding such date,
as determined in accordance with GAAP, less, to the
extent otherwise included, the amounts of (without duplication): (1) minority
interests in consolidated Subsidiaries held by persons other than the Issuer or
a Restricted Subsidiary, (2) treasury stock and (3) Investments in and assets of
Unrestricted Subsidiaries.

 

“Consolidated
Net Worth” means,
with respect to any Person as of any date, the consolidated stockholders’ equity
of such Person, determined on a consolidated basis in accordance with GAAP,
less (without
duplication) (1) any amounts thereof attributable to Disqualified Equity
Interests of such Person or its Subsidiaries or any amount attributable to
Unrestricted Subsidiaries and (2) all write-ups (other than write-ups resulting
from foreign currency translations and write-ups of tangible assets of a going
concern business made within twelve months after the acquisition of such
business) subsequent to the Issue Date in the book value of any asset owned by
such Person or a Subsidiary of such Person.

 

“Consolidated
Tangible Assets” means,
as of any date, the total amount of assets of the Issuer and the Restricted
Subsidiaries on a consolidated basis at the end of the fiscal quarter
immediately preceding such date, as determined in accordance with GAAP,
less (1)
Intangible Assets and (2) any assets securing Non-Recourse
Indebtedness.

 

“Consolidated
Tangible Net Worth” means,
with respect to any Person as of any date, the Consolidated Net Worth of such
Person as of such date less (without
duplication) all Intangible Assets of such Person as of such date.

 

“Corporate
Trust Office” means
the office of the Trustee at which at any particular time its corporate trust
business shall be principally administered, which office at the date of
execution is located at U.S. Bank National Association, Corporate Trust
Department, 175 S. Third Street, 4th Floor, Columbus, Ohio 43215.

 

“Credit
Facilities” means
one or more credit agreements relating to Pari Passu Indebtedness, including
without limitation, the Credit Agreement dated as of September 27, 2004, among
the Issuer, the lenders party thereto, Bank One, NA, as agent, U.S. Bank
National Association, as syndication agent, Bank of America, N.A., The
Huntington National Bank, Keybank National Association and Wachovia Bank,
National Association, as documentation agents, Guaranty Bank, National City Bank
and SunTrust Bank, as co-agents, including any notes, guarantees, collateral and
security documents, instruments and agreements executed in connection therewith
(including Hedging Obligations related to the Indebtedness incurred thereunder),
and in each case as amended, restated or refinanced from time to time, including
any agreement extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of borrowings or other
Indebtedness outstanding or available to be borrowed thereunder) all or any
portion of the Indebtedness under such agreements, and any successor or
replacement agreement or agreements with the same or any other agents, creditor,
lender or group of creditors or lenders.

 

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

 

“Default” means
(1) any Event of Default or (2) any event, act or condition that,
after notice or the passage of time or both, would be an Event of
Default.

 

“Depository” means,
with respect to the Notes issued in the form of one or more Global Notes, The
Depository Trust Company or another Person designated as Depository by the
Issuer, which Person must be a clearing agency registered under the Exchange
Act.

 

“Disposition” means,
with respect to any Person, any merger, consolidation or other business
combination involving such Person (whether or not such Person is the Surviving
Person) or the sale, assignment, transfer, lease, conveyance or other
disposition of all or substantially all of such Person’s assets.

 

“Disqualified
Equity Interests” of any
Person means any Equity Interests of such Person that, by their terms, or by the
terms of any related agreement or of any security into which they are
convertible, puttable or exchangeable, are, or upon the happening of any event
or the passage of time would be, required to be redeemed by such Person, whether
or not at the option of the holder thereof, or mature or are mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, in whole or in
part, on or prior to the date which is 91 days after the final maturity date of
the Notes; provided,
however, that
any class of Equity Interests of such Person that, by its terms, authorizes such
Person to satisfy in full its obligations with respect to the payment of
dividends or upon maturity, redemption (pursuant to a sinking fund or otherwise)
or repurchase thereof or otherwise by the delivery of Equity Interests that are
not Disqualified Equity Interests, and that are not convertible, puttable or
exchangeable for Disqualified Equity Interests or Indebtedness, will not be
deemed to be Disqualified Equity Interests so long as such Person satisfies its
obligations with respect thereto solely by the delivery of Equity Interests that
are not Disqualified Equity Interests; provided,
further,
however, that
any Equity Interests that would not constitute Disqualified Equity Interests but
for provisions thereof giving holders thereof (or the holders of any security
into or for which such Equity Interests are convertible, exchangeable or
exercisable) the right to require the Issuer to redeem such Equity Interests
upon the occurrence of a change in control occurring prior to the final maturity
date of the Notes shall not constitute Disqualified Equity Interests if the
change in control provisions applicable to such Equity Interests are no more
favorable to such holders than the provisions of Section 4.20 and such
Equity Interests specifically provide that the Issuer will not redeem any such
Equity Interests pursuant to such provisions prior to the Issuer’s purchase of
the Notes as required pursuant to the provisions of
Section 4.20.

 

“Equity
Interests” of any
Person means (1) any and all shares or other equity interests (including common
stock, preferred stock, limited liability company interests and partnership
interests) in such Person and (2) all rights to purchase, warrants or options
(whether or not currently exercisable), participations or other equivalents of
or interests in (however designated) such shares or other interests in such
Person.

 

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

 

“Exchange
Notes” has the
meaning provided in the Registration Rights Agreement.

 

“Fair
Market Value” means,
with respect to any asset, the price (after taking into account any liabilities
relating to such assets) that would be negotiated in an arm’s-length transaction
for cash between a willing seller and a willing and able buyer, neither of which
is under any compulsion to complete the transaction, as such price is determined
in good faith by the Board of Directors of the Issuer or a duly authorized
committee thereof, as evidenced by a resolution of such Board or
committee.

 

“Finished
Lots” means
all Lots (excluding Lots Under Contract) owned by Issuer or any Restricted
Subsidiary with respect to which (1) development has been completed to such an
extent that permits that allow use and construction, including building,
sanitary sewer and water, could be obtained for a Housing Unit on each such Lot
and (2) Start of Construction has not occurred. The book value of Finished Lots
shall be calculated in accordance with GAAP and shall include all associated
costs required to be capitalized under GAAP.

 

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

 

“guarantee” means a
direct or indirect guarantee by any Person of any Indebtedness of any other
Person and includes any obligation, direct or indirect, contingent or otherwise,
of such Person: (1) to purchase or pay (or advance or supply funds for the
purchase or payment of) Indebtedness of such other Person (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services (unless such purchase arrangements are on
arm’s-length terms and are entered into in the ordinary course of business), to
take-or-pay, or to maintain financial statement conditions or otherwise); or
(2) entered into for purposes of assuring in any other manner the obligee
of such Indebtedness of the payment thereof or to protect such obligee against
loss in respect thereof (in whole or in part). “guarantee,” when
used as a verb, and “guaranteed” have
correlative meanings.

 

“Guarantee” means
the guarantee of the Notes by each Guarantor under this Indenture.

 

“Guarantor” means
each Restricted Subsidiary of the Issuer on the Issue Date, other than M/I Title
Agency Ltd.; Washington/Metro Residential Title Agency LLC; TransOhio
Residential Title Agency Ltd., Woods at Reynoldsburg, LLC and K-Tampa, LLC, and
each other Person that is required to become a Guarantor by the terms of this
Indenture after the Issue Date, in each case, until such Person is released from
its Guarantee.

 

“Hedging
Obligations” of any
Person means the obligations of such Person pursuant to (1) any interest rate
swap agreement, interest rate collar agreement or other similar agreement or
arrangement designed to protect such Person against fluctuations in interest
rates, (2) agreements or arrangements designed to protect such Person against
fluctuations in foreign currency exchange rates in the conduct of its operations
or (3) any forward contract, commodity swap agreement, commodity option
agreement or other similar agreement or arrangement designed to protect such
Person against fluctuations in commodity prices, in each case entered into in
the ordinary course of business for bona fide hedging purposes and not for the
purpose of speculation.

 

“Holder” means
any registered holder, from time to time, of the Notes.

 

“Housing
Unit” means a
detached or attached (including townhouse condominium or condominium)
single-family house (but excluding mobile homes) owned by Issuer or a Restricted
Subsidiary (1) which is completed or for which there has been a Start of
Construction and (2) which has been or is being constructed on Land which
immediately prior to the Start of Construction constituted a Lot. The book value
of Housing Units shall be calculated in accordance with GAAP and shall include
all associated costs (including the applicable Lot costs) required to be
capitalized under GAAP, provided that the
cost of obtaining commitments for financing terms to be provided to the buyers
of Housing Units shall be excluded.

 

“Housing
Unit Closing” means a
closing of the sale of a Housing Unit by the Issuer or a Restricted Subsidiary
to a bona fide purchaser for value that is not a Subsidiary or
Affiliate.

 

“Housing
Unit Under Contract” means,
at any date, a Housing Unit owned by the Issuer or a Restricted Subsidiary as to
which the Issuer or such Restricted Subsidiary has entered into a bona fide
contract of sale (1) in a form customarily employed by the Issuer or such
Restricted Subsidiary, (2) not more than 15 months prior to such date, (3) with
a Person who is not a Subsidiary or Affiliate, (4) which provides for closing on
or before the later of 30 days after completion of such Housing Unit or 60 days
after the date of such Contract and (5) under which no defaults then exist;
provided,
however, that in
the case of any Housing Unit the purchase of which is to be financed in whole or
in part by a loan insured by the Federal Housing Administration or guaranteed by
the Veterans Administration, the required minimum downpayment shall be the
amount (if any) required under the rules of the relevant agency. A Housing Unit
shall not constitute a Housing Unit Under Contract, at any date of
determination, if (a) such Housing Unit is not completed and (b) the Start of
Construction thereof occurred more than nine (9) months prior to such
date.

 

“incur” means,
with respect to any Indebtedness or Obligation, incur, create, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or
otherwise, with respect to such Indebtedness or Obligation; provided that (1)
the Indebtedness of a Person existing at the time such Person became a
Restricted Subsidiary or at the time such Person merged with or into the Issuer
or a Restricted Subsidiary shall be deemed to have been incurred at such time
and (2) neither the accrual of interest nor the accretion of original issue
discount shall be deemed to be an incurrence of Indebtedness.

 

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

 

(1) all
liabilities, contingent or otherwise, of such Person for borrowed money (whether
or not the recourse of the lender is to the whole of the assets of such Person
or only to a portion thereof);

 

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

 

(3) all
obligations of such Person in respect of letters of credit or other similar
instruments (or reimbursement obligations with respect thereto);

 

(4) all
obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except trade payables and accrued expenses incurred by
such Person in the ordinary course of business in connection with obtaining
goods, materials or services;

 

(5) the
maximum fixed redemption or repurchase price of all Disqualified Equity
Interests of such Person;

 

(6) all
Capitalized Lease Obligations of such Person;

 

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

 

(8) all
Indebtedness of others guaranteed by such Person to the extent of such
guarantee; provided that
Indebtedness of the Issuer or its Subsidiaries that is guaranteed by the Issuer
or the Issuer’s Subsidiaries shall be counted only once in the calculation of
the amount of Indebtedness of the Issuer and its Subsidiaries on a consolidated
basis;

 

(9) all
Attributable Indebtedness;

 

(10) to the
extent not otherwise included in this definition, Hedging Obligations of such
Person;

 

(11) all
obligations of such Person under conditional sale or other title retention
agreements relating to assets purchased by such Person; and

 

(12) the
liquidation value of Preferred Stock of a Subsidiary of such Person issued and
outstanding and held by any Person other than such Person (or one of its
Wholly-Owned Restricted Subsidiaries).

 

Notwithstanding
the foregoing, (a) earn-outs or similar profit sharing arrangements provided for
in acquisition agreements which are determined on the basis of future operating
earnings or other similar performance criteria (which are not determinable at
the time of acquisition) of the acquired assets or entities and (b) accrued
expenses, trade payables, customer deposits or deferred income taxes arising in
the ordinary course of business shall not be considered Indebtedness. Any
Indebtedness which is incurred at a discount to the principal amount at maturity
thereof shall be deemed to have been incurred in the amount of the full
principal amount at maturity thereof. The amount of Indebtedness of any Person
at any date shall be the outstanding balance at such date of all unconditional
obligations as described above, the maximum liability of such Person for any
such contingent obligations at such date and, in the case of clause (7), the
lesser of (a) the Fair Market Value of any asset subject to a Lien securing the
Indebtedness of others on the date that the Lien attaches and (b) the amount of
the Indebtedness secured. For purposes of clause (5), the “maximum fixed
redemption or repurchase price” of any Disqualified Equity Interests that do not
have a fixed redemption or repurchase price shall be calculated in accordance
with the terms of such Disqualified Equity Interests as if such Disqualified
Equity Interests were redeemed on any date on which an amount of Indebtedness
outstanding shall be required to be determined pursuant to this
Indenture.

 

Notwithstanding
the above, this Indenture does not restrict any Unrestricted Subsidiary from
incurring Indebtedness nor will Indebtedness of any Unrestricted Subsidiaries be
included in the Consolidated Fixed Charge Coverage Ratio or the ratio of
Consolidated Indebtedness to Consolidated Tangible Net Worth hereunder, as long
as the Unrestricted Subsidiary incurring such Indebtedness remains an
Unrestricted Subsidiary.

 

“Indenture” means
this Indenture as amended, restated or supplemented from time to
time.

 

“Independent
Director” means a
director of the Issuer who

 

(1) is
independent with respect to the transaction at issue; and

 

(2) qualifies
as an “independent director” under the rules of the New York Stock Exchange or
any other securities exchange on which a class of the Issuer’s capital stock is
listed.

 

“Independent
Financial Advisor” means
an accounting, appraisal or investment banking firm of nationally recognized
standing that is, in the reasonable judgment of the Issuer’s Board of Directors,
qualified to perform the task for which it has been engaged and disinterested
and independent with respect to the Issuer and its Affiliates; provided,
however, that
the prior rendering of service to the Issuer or an Affiliate of the Issuer shall
not, by itself, disqualify the advisor.

 

“Initial
Purchasers” means
Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Credit Suisse First
Boston LLC, Piper Jaffray & Co., SunTrust Capital Markets, Inc., Comerica
Securities, Inc., PNC Capital Markets, Inc., NatCity Investments, Inc., Fifth
Third Securities, Inc. and McDonald Investments Inc.

 

“Institutional
Accredited Investor” means
an institution that is an “accredited investor” as that term is defined in Rule
501(a)(1), (2), (3) or (7) promulgated under the Securities Act.

 

“Intangible
Assets” means,
with respect to any Person, (1) all unamortized debt discount and expense,
unamortized deferred charges, goodwill, patents, trademarks, service marks,
trade names, copyrights, write-ups of assets over their carrying value (other
than write-ups which occurred prior to the Issue Date and other than, in
connection with the acquisition of an asset, the write-up of the value of such
asset (within 12 months of its acquisition) to its Fair Market Value in
accordance with GAAP on the date of acquisition) and (2) all other items which
would be treated as intangibles on the consolidated balance sheet of such Person
prepared in accordance with GAAP.

 

“interest” means,
with respect to the Notes, interest and Registration Default Damages, if any, on
the Notes.

 

“Interest
Payment Dates” means
each April 1 and October 1, commencing October 1,
2005.

 

“Investment
Grade” shall
mean BBB- or higher by S&P and Baa3 or higher by Moody’s or the equivalent
of such ratings by S&P or Moody’s.

 

“Investments” of any
Person means:

 

(1) all
direct or indirect investments by such Person in any other Person in the form of
loans, advances or capital contributions or other credit extensions constituting
Indebtedness of such other Person, and any guarantee of Indebtedness of any
other Person;

 

(2) all
purchases (or other acquisitions for consideration) by such Person of
Indebtedness, Equity Interests or other securities of any other
Person;

 

(3) all other
items that would be classified as investments on a balance sheet of such Person
prepared in accordance with GAAP; and

 

(4) the
Designation of any Subsidiary as an Unrestricted Subsidiary.

 

Except as
otherwise expressly specified in this definition, the amount of any Investment
(other than an Investment made in cash) shall be the Fair Market Value thereof
on the date such Investment is made. The amount of Investment pursuant to clause
(4) shall be the Designation Amount determined in accordance with
Section 4.15. If the Issuer or any Subsidiary sells or otherwise disposes
of any Equity Interests of any direct or indirect Subsidiary such that, after
giving effect to any such sale or disposition, such Person is no longer a
Subsidiary, the Issuer shall be deemed to have made an Investment on the date of
any such sale or other disposition equal to the Fair Market Value of the Equity
Interests of and all other Investments in such Subsidiary not sold or disposed
of, which amount shall be determined by the Board of Directors of the Issuer.
Notwithstanding the foregoing, redemptions of Equity Interests of the Issuer
shall be deemed not to be Investments.

 

“Issue
Date” means
March 24, 2005.

 

“Issuer” means
the party named as such in the first paragraph of this Indenture until a
successor replaces such party pursuant to Article Five and thereafter means the
successor.

 

“Issuer
Request” means
any written request signed in the name of the Issuer by the Chairman of the
Board of Directors, the Chief Executive Officer, the President, any Vice
President, the Chief Financial Officer or the Treasurer of the Issuer and
attested to by the Secretary or any Assistant Secretary of the
Issuer.

 

“Land” means
land owned by the Issuer or a Restricted Subsidiary, which land is being
developed or is held for future development or sale.

 

“Lien” means,
with respect to any asset, any mortgage, deed of trust, lien (statutory or
other), pledge, lease, easement, restriction, covenant, charge, security
interest or other encumbrance of any kind or nature in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, and any lease
in the nature thereof, any option or other agreement to sell, and any filing of,
or agreement to give, any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction (other than cautionary filings in
respect of operating leases).

 

“Lot
Closing” means
the closing of the sale of a Lot Under Contract by Issuer or a Restricted
Subsidiary to a bona fide purchaser for value that is not a Subsidiary or
Affiliate.

 

“Lots” means
all Land owned by Issuer or a Restricted Subsidiary which is zoned, by the
applicable governmental authority having jurisdiction, for construction and use
as Housing Units and with respect to which Issuer or a Restricted Subsidiary has
obtained all necessary approvals for its subdivision for construction thereon of
Housing Units; provided,
however, that
the term “Lots” shall not include any Land upon which the Start of Construction
has occurred. The value of Lots shall be calculated in accordance with GAAP and
shall include all associated costs required to be capitalized, in accordance
with GAAP.

 

“Lots
Under Contract” means
all Lots owned by Issuer or a Restricted Subsidiary as to which Issuer or such
Restricted Subsidiary has entered into a bona fide contract of sale with a
Person who is not a Subsidiary or Affiliate.

 

“Lots
Under Development” means
all Lots owned by Issuer or a Restricted Subsidiary with respect to which
construction of streets or other subdivision improvements has commenced but
which are not Finished Lots or Lots Under Contract. The value of Lots Under
Development shall be calculated in accordance with GAAP and shall include all
associated costs required to be capitalized in accordance with
GAAP.

 

“Model
Houses” means
(a) all Housing Units owned by the Issuer or any Restricted Subsidiary which are
being used as sales models and (b) all Housing Units owned by the Issuer or any
Restricted Subsidiary for which there has been a Start of Construction which
upon completion will be used as sales models.

 

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

 

“Mortgage” means a
first priority mortgage or first priority deed of trust on improved real
property.

 

“Net
Available Proceeds” means,
with respect to any Asset Sale, the proceeds thereof in the form of cash or Cash
Equivalents, net of

 

(1) brokerage
commissions and other fees and expenses (including fees and expenses of legal
counsel, accountants and investment banks) of such Asset Sale;

 

(2) provisions
for taxes payable as a result of such Asset Sale (after taking into account any
available tax credits or deductions and any tax sharing
arrangements);

 

(3) amounts
required to be paid to any Person (other than the Issuer or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale
or having a Lien thereon;

 

(4) payments
of unassumed liabilities (not constituting Indebtedness) relating to the assets
sold at the time of, or within 30 days after the date of, such Asset Sale;
and

 

(5) appropriate
amounts to be provided by the Issuer or any Restricted Subsidiary, as the case
may be, as a reserve required in accordance with GAAP against any liabilities
associated with such Asset Sale and retained by the Issuer or any Restricted
Subsidiary, as the case may be, after such Asset Sale, including pensions and
other post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as reflected in an Officers’ Certificate delivered to the
Trustee; provided,
however, that
any amounts remaining after adjustments, revaluations or liquidations of such
reserves shall constitute Net Available Proceeds.

 

“Non-Recourse
Indebtedness” with
respect to any Person means Indebtedness of such Person for which (1) the sole
legal recourse for collection of principal and interest on such Indebtedness is
against the specific property identified in the instruments evidencing or
securing such Indebtedness and such property was acquired with the proceeds of
such Indebtedness or such Indebtedness was incurred within 90 days after the
acquisition of such property and (2) no other assets of such Person may be
realized upon in collection of principal or interest on such
Indebtedness.

 

“Non-U.S.
Person” means a
Person who is not a U.S. person, as defined in Regulation S.

 

“Notes” means
the 67⁄8% Senior Notes due 2012 issued by the Issuer, including, without
limitation, the Private Exchange Notes, if any, and the Exchange Notes, treated
as a single class of securities, as amended from time to time in accordance with
the terms hereof, that are issued pursuant to this Indenture.

 

“Obligation” means
any principal, interest, penalties, fees, indemnification, reimbursements,
costs, expenses, damages and other liabilities payable under the documentation
governing any Indebtedness.

 

“Offer” has the
meaning set forth in the definition of “Offer to Purchase.”

 

“Offer
Expiration Date” has the
meaning set forth in the definition of “Offer to Purchase.”

 

“Offer
to Purchase” means a
written offer (the “Offer”) sent
by or on behalf of the Issuer by first-class mail, postage prepaid, to each
Holder at its address appearing in the register for the Notes on the date of the
Offer offering to purchase up to the principal amount of Notes specified in such
Offer at the purchase price specified in such Offer (as determined pursuant to
this Indenture). Unless otherwise required by applicable law, the Offer shall
specify an expiration date (the “Offer
Expiration Date”) of the
Offer to Purchase, which shall be not less than 30 Business Days nor more than
60 days after the date of such Offer, and a settlement date (the “Purchase
Date”) for
purchase of Notes to occur no later than three Business Days after the Offer
Expiration Date. The Offer shall contain all the information required by
applicable law to be included therein. The Offer shall also contain information
concerning the business of the Issuer and its Subsidiaries which the Issuer in
good faith believes will enable such Holders to make an informed decision with
respect to the Offer to Purchase. Such information shall include, at a minimum,
(i) the most recent annual and quarterly financial statements and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”
contained in the document required to be delivered to Holders pursuant to
Section 4.02 (which requirements may be satisfied by delivery of such
documents together with the Offer), (ii) a description of material developments
in the Issuer’s business subsequent to the date of the latest of such financial
statements referred to in clause (i) (including a description of the events
requiring the Issuer to make the Offer to Purchase), (iii) if applicable,
appropriate pro forma financial information concerning the Offer to Purchase and
the events requiring the Issuer to make the Offer to Purchase and (iv) any other
information required by applicable law to be included therein. The Offer shall
contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to the Offer to Purchase. The Offer shall also
state:

 

(1) the
Section of this Indenture pursuant to which the Offer to Purchase is being
made;

 

(2) the Offer
Expiration Date and the Purchase Date;

 

(3) the
aggregate principal amount of the outstanding Notes offered to be purchased by
the Issuer pursuant to the Offer to Purchase (including, if less than 100%, the
manner by which such amount has been determined pursuant to the Section of this
Indenture requiring the Offer to Purchase) (the “Purchase
Amount”);

 

(4) the
purchase price to be paid by the Issuer for each $1,000 aggregate principal
amount of Notes accepted for payment (the “Purchase
Price”);

 

(5) that the
Holder may tender all or any portion of the Notes registered in the name of such
Holder and that any portion of a Note tendered must be tendered in an integral
multiple of $1,000 principal amount;

 

(6) the place
or places where Notes are to be surrendered for tender pursuant to the Offer to
Purchase;

 

(7) that
interest on any Note not tendered or tendered but not purchased by the Issuer
pursuant to the Offer to Purchase will continue to accrue;

 

(8) that on
the Purchase Date the Purchase Price will become due and payable upon each Note
being accepted for payment pursuant to the Offer to Purchase and that interest
thereon shall cease to accrue on and after the Purchase Date;

 

(9) that each
Holder electing to tender all or any portion of a Note pursuant to the Offer to
Purchase will be required to surrender such Note, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of the Note completed, at the place
or places specified in the Offer prior to the close of business on the Offer
Expiration Date (such Note being, if the Issuer so requires, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Issuer duly executed by, the Holder thereof or its attorney duly authorized in
writing);

 

(10)that
Holders will be entitled to withdraw all or any portion of Notes tendered if the
Issuer receives, not later than the close of business on the fifth Business Day
preceding the Offer Expiration Date, a telegram, telex, facsimile transmission
or letter setting forth the name of the Holder, the principal amount of the Note
the Holder tendered, the certificate number of the Note the holder tendered and
a statement that such Holder is withdrawing all or a portion of its
tender;

 

(11)that (a)
if Notes in an aggregate principal amount less than or equal to the Purchase
Amount are duly tendered and not withdrawn pursuant to the Offer to Purchase,
the Issuer shall purchase all such Notes and (b) if Notes in an aggregate
principal amount in excess of the Purchase Amount are tendered and not withdrawn
pursuant to the Offer to Purchase, the Issuer shall purchase Notes having an
aggregate principal amount equal to the Purchase Amount on a pro
rata basis
(with such adjustments as may be deemed appropriate so that only Notes in
denominations of $1,000 principal amount or integral multiples thereof shall be
purchased); and

 

(12)that in
the case of any Holder whose Note is purchased only in part, the Issuer shall
execute and deliver to the Holder of such Note without service charge, a new
Note or Notes, of any authorized denomination as requested by such Holder, in an
aggregate principal amount equal to and in exchange for the unpurchased portion
of the Note so tendered.

 

An Offer
to Purchase shall be governed by and effected in accordance with the provisions
above pertaining to any Offer.

 

On or
before the Purchase Date, the Issuer shall (i) accept for payment Notes or
portions thereof tendered and not withdrawn pursuant to the Offer,
(ii) deposit with the Trustee U.S. Dollars sufficient to pay the Purchase
Price, plus accrued interest, if any, of all Notes to be purchased and
(iii) deliver to the Trustee Notes so accepted together with an Officers’
Certificate stating the Notes or portions thereof being purchased by the Issuer.
The Trustee shall promptly mail to the Holders of Notes so accepted payment in
an amount equal to the Purchase Price, plus accrued interest, if any,
thereon.

 

“Offering” means
the offering of the Notes as described in the Offering Memorandum.

 

“Offering
Memorandum” means
the Offering Memorandum dated March 17, 2005 pursuant to which the
Notes were offered.

 

“Officer” means
any of the following of the Issuer: the Chairman of the Board of Directors, the
Chief Executive Officer, the Chief Financial Officer, the President, any Vice
President, the Treasurer or the Secretary.

 

“Officers’
Certificate” means a
certificate signed by two Officers.

 

“Opinion
of Counsel” means a
written opinion reasonably satisfactory in form and substance to the Trustee
from legal counsel, which counsel is reasonably acceptable to the Trustee,
stating the matters required by Section 12.05 and delivered to the
Trustee.

 

“Pari
Passu Indebtedness” means
any Indebtedness of the Issuer or any Guarantor that ranks pari passu as to
payment with the Notes or the Guarantees, as applicable.

 

“Permitted
Business” means
the businesses engaged in by the Issuer and its Subsidiaries on the Issue Date
as described in the Issuer’s Form 10-K filed with the SEC for the year ended
December 31, 2004, and businesses that are reasonably related thereto or
reasonable extensions thereof.

 

“Permitted
Holders” means
Robert H. Schottenstein and Steven Schottenstein, their respective wives,
children, siblings, any corporation, limited liability company or partnership in
which either of them has voting control and is the direct and beneficial owner
of a majority of the Equity Interests and any trust for the benefit of either of
them or their wives or children.

 

“Permitted
Investment”
means:

 

(1) Investments
by the Issuer or any Restricted Subsidiary in (a) any Restricted Subsidiary or
(b) any Person that is or will become immediately after such Investment a
Restricted Subsidiary or that will merge or consolidate into the Issuer or a
Restricted Subsidiary;

 

(2) Investments
in the Issuer by any Restricted Subsidiary;

 

(3) loans and
advances to directors, employees and officers of the Issuer and the Restricted
Subsidiaries for bona fide business purposes and to purchase Equity Interests of
the Issuer not in excess of $2.0 million at any one time
outstanding;

 

(4) Hedging
Obligations incurred pursuant to clause (5) of the second paragraph of
Section 4.06;

 

(5) Cash
Equivalents;

 

(6) receivables
or loans owing to the Issuer or any Restricted Subsidiary if created or acquired
in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms; provided,
however, that
such trade terms may include such concessionary trade terms as the Issuer or any
such Restricted Subsidiary deems reasonable under the
circumstances;

 

(7) Investments
in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers;

 

(8) Investments
made by the Issuer or any Restricted Subsidiary as a result of non-cash
consideration (excluding any amounts deemed to be cash) received in connection
with an Asset Sale made in compliance with Section 4.09;

 

(9) lease,
utility and other similar deposits in the ordinary course of
business;

 

(10) Investments
made by the Issuer or a Restricted Subsidiary for consideration consisting only
of Qualified Equity Interests of the Issuer;

 

(11) stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Issuer or any Restricted Subsidiary
or in satisfaction of judgments;

 

(12) Investments
in existence on the Issue Date;

 

(13) Investments
made by the Issuer or any Restricted Subsidiary in joint ventures in a Permitted
Business with unaffiliated third parties in an aggregate amount at any one time
outstanding not to exceed 15% of the Issuer’s Consolidated Net Tangible Assets
at such time (with each Investment being valued as of the date made and without
regard to subsequent changes in value); and

 

(14) other
Investments in an aggregate amount not to exceed $25.0 million at any one time
outstanding (with each Investment being valued as of the date made and without
regard to subsequent changes in value).

 

The
amount of Investments outstanding at any time pursuant to clause (14) above
shall be deemed to be reduced:

 

(a) upon the
disposition or repayment of or return on any Investment made pursuant to clause
(14) above, by an amount equal to the return of capital with respect to such
Investment to the Issuer or any Restricted Subsidiary (to the extent not
included in the computation of Consolidated Net Income), less the cost of the
disposition of such Investment and net of taxes; and

 

(b) upon a
Redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, by an
amount equal to the lesser of (x) the Fair Market Value of the Issuer’s
proportionate interest in such Subsidiary immediately following such
Redesignation, and (y) the aggregate amount of Investments in such
Subsidiary that increased (and did not previously decrease) the amount of
Investments outstanding pursuant to clause (14) above.

 

“Permitted
Liens” means
the following types of Liens:

 

(1) (a)
statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
suppliers, materialmen, repairmen and other Liens imposed by law incurred in the
ordinary course of business and (b) Liens for taxes, assessments or governmental
charges or claims, in either case, for sums not yet delinquent or being
contested in good faith, if such reserve or other appropriate provision, if any,
as shall be required by GAAP shall have been made in respect
thereof;

 

(2) Liens
incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations, surety
and appeal bonds, bids, leases, government contracts, performance and
return-of-money bonds and other similar obligations (exclusive of obligations
for the payment of borrowed money);

 

(3) Liens
upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;

 

(4) Liens
securing reimbursement obligations with respect to commercial letters of credit
which encumber documents and other assets relating to such letters of credit and
products and proceeds thereof;

 

(5) Liens
encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Issuer or any Restricted
Subsidiary, including rights of offset and setoff;

 

(6) bankers’
Liens, rights of setoff and other similar Liens existing solely with respect to
cash and Cash Equivalents on deposit in one or more accounts maintained by the
Issuer or any Restricted Subsidiary, in each case granted in the ordinary course
of business in favor of the bank or banks with which such accounts are
maintained, securing amounts owing to such bank with respect to cash management
and operating account arrangements, including those involving pooled accounts
and netting arrangements; provided that in
no case shall any such Liens secure (either directly or indirectly) the
repayment of any Indebtedness;

 

(7) leases or
subleases (or any Liens related thereto) granted to others that do not
materially interfere with the ordinary course of business of the Issuer or any
Restricted Subsidiary;

 

(8) Liens
arising from filing Uniform Commercial Code financing statements regarding
leases;

 

(9) Liens
securing all of the Notes and Liens securing any Guarantee;

 

(10) Liens
existing on the Issue Date securing Indebtedness outstanding on the Issue Date
and Liens securing Refinancing Indebtedness with respect to Indebtedness
incurred pursuant to clause (2) of the second paragraph of
Section 4.06;

 

(11) Liens in
favor of the Issuer or a Guarantor;

 

(12) Liens
securing Indebtedness under the Credit Facilities;

 

(13) Liens
securing Non-Recourse Indebtedness of the Issuer or any Restricted Subsidiary
permitted to be incurred under this Indenture; provided that
such Liens apply only to the property financed out of the net proceeds of such
Non-Recourse Indebtedness within 90 days after the incurrence of such
Non-Recourse Indebtedness;

 

(14) Liens
securing Purchase Money Indebtedness, which indebtedness is permitted to be
incurred under this Indenture; provided that
such Liens apply only to the property acquired, constructed or improved with the
proceeds of such Purchase Money Indebtedness within 90 days after the incurrence
of such Purchase Money Indebtedness;

 

(15) Liens
securing Acquired Indebtedness permitted to be incurred under this Indenture;
provided that the
Liens do not extend to assets not subject to such Lien at the time of
acquisition (other than improvements thereon) and are no more favorable to the
lienholders than those securing such Acquired Indebtedness prior to the
incurrence of such Acquired Indebtedness by the Issuer or a Restricted
Subsidiary; provided,
further, that
the Liens were not incurred in connection with, or in contemplation of the
incurrence of such Acquired Indebtedness;

 

(16) Liens
securing a Warehouse Facility incurred pursuant to clause (4) of Section 4.06;
provided that
such liens shall not extend to any assets other than the Mortgages, promissory
notes and other collateral that secures Mortgage loans made by the Issuer or any
of its Restricted Subsidiaries;

 

(17) Liens on
assets of a Person existing at the time such Person is acquired or merged with
or into or consolidated with the Issuer or any such Restricted Subsidiary (and
not created in anticipation or contemplation thereof);

 

(18) Liens to
secure Attributable Indebtedness permitted to be incurred under this Indenture;
provided that any
such Lien shall not extend to or cover any assets of the Issuer or any
Restricted Subsidiary other than the assets which are the subject of the Sale
and Leaseback Transaction in which the Attributable Indebtedness is
incurred;

 

(19) attachment
or judgment Liens not giving rise to a Default and which are being contested in
good faith by appropriate proceedings;

 

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

 

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

 

(22) any
option, contract or other agreement to sell an asset; provided such
sale is not otherwise prohibited under this Indenture; and

 

(23) in
addition to the other clauses in this definition of “Permitted Liens,” Liens
securing Indebtedness of the Issuer or any Restricted Subsidiary permitted to be
incurred under this Indenture (including all Indebtedness permitted to be
secured by the other provisions of this definition, but excluding Non-Recourse
Indebtedness) in an aggregate principal amount not exceeding 5% of Consolidated
Net Tangible Assets at any one time outstanding (after giving effect to the
incurrence of such Indebtedness and the use of the proceeds
thereof).

 

“Permitted
Unrestricted Subsidiary Debt” means
Indebtedness of an Unrestricted Subsidiary:

 

(1) as to
which neither the Issuer nor any Restricted Subsidiary (a) provides credit
support of any kind (including any undertaking, agreement or instrument that
would constitute Indebtedness), (b) is directly or indirectly liable as a
guarantor or otherwise, or (c) constitutes the lender;

 

(2) no
default with respect to which (including any rights that the holders thereof may
have to take enforcement action against an Unrestricted Subsidiary) would permit
upon notice, lapse of time or both any holder of any other Indebtedness (other
than the Notes) of the Issuer or any Restricted Subsidiary to declare a default
on the other Indebtedness or cause the payment thereof to be accelerated or
payable prior to its stated maturity; and

 

(3) as to
which the lenders have been notified in writing that they will not have any
recourse to the Equity Interests or assets of the Issuer or any Restricted
Subsidiary.

 

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

 

“Physical
Notes” means
certificated Notes in registered form in substantially the form set forth in
Exhibit
A.

 

“Plan
of Liquidation” with
respect to any Person, means a plan that provides for, contemplates or the
effectuation of which is preceded or accompanied by (whether or not
substantially contemporaneously, in phases or otherwise): (1) the sale,
lease, conveyance or other disposition of all or substantially all of the assets
of such Person otherwise than as an entirety or substantially as an entirety;
and (2) the distribution of all or substantially all of the proceeds of
such sale, lease, conveyance or other disposition of all or substantially all of
the remaining assets of such Person to creditors and holders of Equity Interests
of such Person.

 

“Preferred
Stock” means,
with respect to any Person, any and all preferred or preference stock or other
equity interests (however designated) of such Person whether now outstanding or
issued after the Issue Date.

 

“principal” means,
with respect to the Notes, the principal of, and premium, if any, on the
Notes.

 

“Private
Exchange” has the
meaning set forth in the Registration Rights Agreement.

 

“Private
Exchange Notes” has the
meaning set forth in the Registration Rights Agreement.

 

“Private
Placement Legend” means
the legend initially set forth on the Rule 144A Notes and Other Notes that are
Restricted Notes in the form set forth in Exhibit
B.

 

“Purchase
Amount” has the
meaning set forth in the definition of “Offer to Purchase.”

 

“Purchase
Date” has the
meaning set forth in the definition of “Offer to Purchase.”

 

“Purchase
Money Indebtedness” means
Indebtedness, including Capitalized Lease Obligations, of the Issuer or any
Restricted Subsidiary incurred for the purpose of financing all or any part of
the purchase price of property, plant or equipment used in the business of the
Issuer or any Restricted Subsidiary or the cost of installation, construction or
improvement thereof; provided,
however, that
(1) the amount of such Indebtedness shall not exceed such purchase price or
cost, (2) such Indebtedness shall not be secured by any asset other than the
specified asset being financed or, in the case of real property or fixtures,
including additions and improvements, the real property to which such asset is
attached and (3) such Indebtedness shall be incurred within 90 days after such
acquisition of such asset by the Issuer or such Restricted Subsidiary or such
installation, construction or improvement.

 

“Purchase
Price” has the
meaning set forth in the definition of “Offer to Purchase.”

 

“Qualified
Equity Interests” means
Equity Interests of the Issuer other than Disqualified Equity Interests;
provided that
such Equity Interests shall not be deemed Qualified Equity Interests to the
extent sold or owed to a Subsidiary of the Issuer or financed, directly or
indirectly, using funds (1) borrowed from the Issuer or any Subsidiary of the
Issuer until and to the extent such borrowing is repaid or (2) contributed,
extended, guaranteed or advanced by the Issuer or any Subsidiary of the Issuer
(including, without limitation, in respect of any employee stock ownership or
benefit plan).

 

“Qualified
Equity Offering” means
the issuance and sale of Qualified Equity Interests of the Issuer to Persons
other than any Permitted Holder or any other Person who is not, prior to such
issuance and sale, an Affiliate of the Issuer.

 

“Qualified
Institutional Buyer” or
“QIB” shall
have the meaning specified in Rule 144A promulgated under the Securities
Act.

 

“Rating
Agencies” means
each of (1) S&P and (2) Moody’s.

 

“Ratio
Exception” has the
meaning set forth in the proviso in the first paragraph of Section
4.06.

 

“Receivables” means
the net proceeds payable to, but not yet received by, the Issuer or a Restricted
Subsidiary following a Housing Unit Closing or Lot Closing, other than amounts
payable to the Issuer or a Restricted Subsidiary under a Mortgage
loan.

 

“redeem” means
to redeem, repurchase, purchase, defease, retire, discharge or otherwise acquire
or retire for value; and “redemption” shall
have a correlative meaning.

 

“Redemption
Date” when
used with respect to any Note to be redeemed means the date fixed for such
redemption pursuant to the terms of the Notes.

 

“Reference
Treasury Dealer” means
Citigroup Global Markets Inc. and its successors; provided,
however, that if
it shall cease to be a primary U.S. Government securities dealer in the New York
City (a “Primary
Treasury Dealer”), the
Issuer shall substitute therefor another Primary Treasury Dealer.

 

“Reference
Treasury Dealer Quotation” means,
with respect to the Reference Treasury Dealer and any Redemption Date, the
average of the bid and ask prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) quoted in writing to the
Trustee by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day
preceding such Redemption Date.

 

“refinance” means
to refinance, repay, prepay, replace, renew or refund.

 

“Refinancing
Indebtedness” means
Indebtedness of the Issuer or a Restricted Subsidiary issued in exchange for, or
the proceeds from the issuance and sale or disbursement of which are used
substantially concurrently to redeem or refinance in whole or in part, or
constituting an amendment of, any Indebtedness of the Issuer or any Restricted
Subsidiary (the “Refinanced
Indebtedness”) in a
principal amount not in excess of the principal amount of the Refinanced
Indebtedness so repaid or amended (plus the
amount of any premium paid and the amount of reasonable expenses incurred by the
Issuer or any Restricted Subsidiary in connection with such repayment or
amendment) (or, if such Refinancing Indebtedness refinances Indebtedness under a
revolving credit facility or other agreement providing a commitment for
subsequent borrowings, with a maximum commitment not to exceed the maximum
commitment under such revolving credit facility or other agreement);
provided
that:

 

(1) if the
Refinanced Indebtedness was subordinated to or pari passu with the
Notes or the Guarantees, as the case may be, then such Refinancing Indebtedness,
by its terms, is expressly pari passu with (in
the case of Refinanced Indebtedness that was pari passu with) or
subordinate in right of payment to (in the case of Refinanced Indebtedness that
was subordinated to) the Notes or the Guarantees, as the case may be, at least
to the same extent as the Refinanced Indebtedness;

 

(2) the
Refinancing Indebtedness is scheduled to mature either (a) no earlier than the
Refinanced Indebtedness being repaid or amended or (b) six months after the
maturity date of the Notes;

 

(3) the
portion, if any, of the Refinancing Indebtedness that is scheduled to mature on
or prior to the maturity date of the Notes has a Weighted Average Life to
Maturity at the time such Refinancing Indebtedness is incurred that is equal to
or greater than the Weighted Average Life to Maturity of the portion of the
Refinanced Indebtedness being repaid that is scheduled to mature on or prior to
the maturity date of the Notes; and

 

(4) the
Refinancing Indebtedness is secured only to the extent, if at all, and by the
assets, that the Refinanced Indebtedness being repaid, extended or amended is
secured.

 

“Registration
Default Damages” has the
meaning set forth in the Registration Rights Agreement.

 

“Registration
Rights Agreement” means
the registration rights agreement dated as of the Issue Date among the Issuer,
the Guarantors and the Initial Purchasers.

 

“Regulation
S” means
Regulation S promulgated under the Securities Act.

 

“Responsible
Officer” when
used with respect to the Trustee, means an officer or assistant officer assigned
to the corporate trust department of the Trustee (or any successor group of the
Trustee) with 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 of and
familiarity with the particular subject.

 

“Restricted
Note” has the
same meaning as “Restricted Security” set forth in Rule 144(a)(3) promulgated
under the Securities Act; provided, that
the Trustee shall be entitled to request and conclusively rely upon an Opinion
of Counsel with respect to whether any Note is a Restricted Note.

 

“Restricted
Payment” means
any of the following:

 

(1) the
declaration or payment of any dividend or any other distribution on Equity
Interests of the Issuer or any Restricted Subsidiary or any payment made to the
direct or indirect holders (in their capacities as such) of Equity Interests of
the Issuer or any Restricted Subsidiary, including, without limitation, any
payment in connection with any merger or consolidation involving the Issuer, but
excluding (a) dividends or distributions payable solely in Qualified Equity
Interests and (b) in the case of Restricted Subsidiaries, dividends or
distributions payable to the Issuer or to a Restricted Subsidiary and
pro rata
dividends or distributions payable to minority stockholders of any Restricted
Subsidiary;

 

(2) the
redemption of any Equity Interests of the Issuer or any Restricted Subsidiary,
including, without limitation, any payment in connection with any merger or
consolidation involving the Issuer, but excluding any such Equity Interests held
by the Issuer or any Restricted Subsidiary;

 

(3) any
Investment other than a Permitted Investment; or

 

(4) any
redemption prior to the scheduled maturity or prior to any scheduled repayment
of principal or sinking fund payment, as the case may be, in respect of
Subordinated Indebtedness.

 

“Restricted
Payments Basket” has the
meaning given to such term in the first paragraph of
Section 4.08.

 

“Restricted
Subsidiary” means
any Subsidiary of the Issuer other than an Unrestricted Subsidiary.

 

“Rule
144” means
Rule 144 promulgated under the Securities Act.

 

“Rule
144A” means
Rule 144A promulgated under the Securities Act.

 

“S&P” means
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies,
Inc., and its successors.

 

“Sale
and Leaseback Transaction” means,
with respect to any Person, an arrangement with any bank, insurance company or
other lender or investor or to which such lender or investor is a party,
providing for the leasing by such Person of any asset of such Person which has
been or is being sold or transferred by such Person to such lender or investor
or to any Person to whom funds have been or are to be advanced by such lender or
investor on the security of such asset.

 

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

 

“Secretary’s
Certificate” means a
certificate signed by the Secretary of the Issuer.

 

“Securities
Act” means
the U.S. Securities Act of 1933, as amended.

 

“Significant
Subsidiary” means
(1) any Restricted Subsidiary that would be a “significant subsidiary” as
defined in Regulation S-X promulgated pursuant to the Securities Act as such
Regulation is in effect on the Issue Date and (2) any Restricted Subsidiary
that, when aggregated with all other Restricted Subsidiaries that are not
otherwise Significant Subsidiaries and as to which any event described in clause
(7) or (8) of Section 6.01 has occurred and is continuing, would constitute
a Significant Subsidiary under clause (1) of this definition.

 

“Speculative
Housing Unit” shall
mean any Housing Unit owned by the Issuer or a Restricted Subsidiary that is not
a Housing Unit Under Contract and shall include, without limitation, all Model
Houses.

 

“Start
of Construction” shall
mean the commencement of the digging of the foundation or footer for a detached
or attached single family house (including a townhouse condominium building or
condominium building) on Land that immediately prior thereto constituted a Lot
hereunder.

 

“Subordinated
Indebtedness” means
Indebtedness of the Issuer or any Restricted Subsidiary that is subordinated in
right of payment to the Notes or the Guarantees, respectively.

 

“Subsidiary” means,
with respect to any Person:

 

(1) any
corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of the Equity Interests entitled
(without regard to the occurrence of any contingency) to vote in the election of
the Board of Directors thereof are at the time owned or controlled, any
Investment other than a Permitted Investment; or directly or indirectly, by such
Person or one or more of the other Subsidiaries of that Person (or a combination
thereof); and

 

(2) any
partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general
partners of which are such Person or one or more Subsidiaries of such Person (or
any combination thereof).

 

Unless
otherwise specified, “Subsidiary” refers to a Subsidiary of the
Issuer.

 

“Surviving
Person” means,
with respect to any Person involved in or that makes any Disposition, the Person
formed by or surviving such Disposition or the Person to which such Disposition
is made.

 

“Treasury
Rate” means,
with respect to any Redemption Date, the rate per annum equal to
the yield to maturity of the Comparable Treasury Issue, compounded
semi-annually, assuming a price for such Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date. The Treasury Rate will be calculated on the third Business
Day preceding the Redemption Date.

 

“Trust
Indenture Act” or
“TIA” means
the Trust Indenture Act of 1939, as amended.

 

“Trustee” means
the party named as such in this Indenture until a successor replaces it pursuant
to this Indenture and thereafter means the successor.

 

“Unimproved
Entitled Land” shall
mean all Lots that are neither Lots Under Development, Finished Lots or Lots
Under Contract.

 

“Unrestricted
Subsidiary” means
(1) any Subsidiary that at the time of determination shall be designated an
Unrestricted Subsidiary by the Board of Directors of the Issuer in accordance
with Section 4.15 and (2) any Subsidiary of an Unrestricted
Subsidiary.

 

“U.S.
Government Obligations” means
direct non-callable obligations of, or obligations guaranteed by, the United
States of America for the payment of which guarantee or obligations the full
faith and credit of the United States is pledged.

 

“Voting
Stock” with
respect to any Person, means securities of any class of Equity Interests of such
Person entitling the holders thereof (whether at all times or only so long as no
senior class of stock or other relevant equity interest has voting power by
reason of any contingency) to vote in the election of members of the Board of
Directors of such Person.

 

“Warehouse
Facility” means
the Revolving Credit Agreement dated as of May 3, 2001, as amended, among the
Issuer, M/I Financial Corp., and Guaranty Bank, in each case, or any bank credit
agreement, repurchase agreement or other credit facility entered into to finance
the making of Mortgage loans originated by the Issuer or any of its Restricted
Subsidiaries in the ordinary course of business.

 

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

 

“Wholly-Owned
Restricted Subsidiary” means a
Restricted Subsidiary of which 100% of the Equity Interests (except for
directors’ qualifying shares or certain minority interests owned by other
Persons solely due to local law requirements that there be more than one
stockholder, but which interest is not in excess of what is required for such
purpose) are owned directly by the Issuer or through one or more Wholly-Owned
Restricted Subsidiaries.

 

	SECTION
      1.02.  	
      Other
      Definitions.

 

The
definitions of the following terms may be found in the sections indicated as
follows:

 

	
      Term

       
	
      Defined
      in Section

       

	
      “Affiliate
      Transaction”
	
      4.10

	
      “Agent
      Members”
	
      2.16(a)

	
      “Business
      Day”
	
      12.07

	
      “Change
      of Control Date”
	
      4.20

	
      “Change
      of Control Offer”
	
      4.20

	
      “Change
      of Control Payment Date”
	
      4.20

	
      “Change
      of Control Purchase Price”
	
      4.20

	
      “Covenant
      Defeasance”
	
      9.03

	
      “Custodian”
	
      6.01

	
      “Designation”
	
      4.15

	
      “Designation
      Amount”
	
      4.15

	
      “Event
      of Default”
	
      6.01

	
      “Excess
      Proceeds”
	
      4.09

	
      “Global
      Notes”
	
      2.16(a)

	
      “Legal
      Defeasance”
	
      9.02

	
      “Legal
      Holiday”
	
      12.07

	
      “Net
      Proceeds Deficiency”
	
      4.09

	
      “Net
      Proceeds Offer”
	
      4.09

	
      “Offered
      Price”
	
      4.09

	
      “Other
      Notes”
	
      2.02

	
      “Pari
      Passu Indebtedness Price”
	
      4.09

	
      “Paying
      Agent”
	
      2.04

	
      “Payment
      Amount”
	
      4.09

	
      “Permitted
      Indebtedness”
	
      4.06

	
      “Ratio
      Exception”
	
      4.06

	
      “Redesignation”
	
      4.15

	
      “Registrar”
	
      2.04

	
      “Regulation
      S Global Note”
	
      2.16(a)

	
      “Regulation
      S Notes”
	
      2.02

	
      “Restricted
      Global Note”
	
      2.16(a)

	
      “Restricted
      Payments Basket”
	
      4.08

	
      “Restricted
      Period”
	
      2.16(f)

	
      “Rule
      144A Notes”
	
      2.02

	
      “Successor”
	
      5.01

	SECTION
      1.03.  	
      Incorporation
      by Reference of Trust Indenture Act.

 

Whenever
this Indenture refers to a provision of the TIA, the portion of such provision
required to be incorporated herein in order for this Indenture to be qualified
under the TIA is incorporated by reference in and made a part of this Indenture.
The following TIA terms used in this Indenture have the following
meanings:

 

“indenture
securities” means
the Notes.

 

“indenture
securityholder” means a
Holder or Noteholder.

 

“indenture
to be qualified” means
this Indenture.

 

“indenture
trustee” or
“institutional
trustee” means
the Trustee.

 

“obligor
on the indenture securities” means
the Issuer, the Guarantors or any other obligor on the Notes.

 

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

 

	SECTION
      1.04.  	
      Rules
      of Construction.

 

Unless
the context otherwise requires:

 

(1)  a term
has the meaning assigned to it herein, whether defined expressly or by
reference;

 

(2)  “or” is
not exclusive;

 

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

 

(4)  words
used herein implying any gender shall apply to both genders; 

 

(5)  “herein”,
“hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other Subsection;

 

(6)  unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP as in effect from time to time, applied on a basis
consistent with the most recent audited consolidated financial statements of the
Issuer;

 

(7)  “$,”
“U.S. Dollars” and “United States Dollars” each refer to United States dollars,
or such other money of the United States that at the time of payment is legal
tender for payment of public and private debts; and

 

(8)  whenever
in this Indenture there is mentioned, in any context, principal, interest or any
other amount payable under or with respect to any Note, such mention shall be
deemed to include mention of the payment of Registration Default Damages to the
extent that, in such context, Registration Default Damages are, were or would be
payable in respect thereof.

 

 

ARTICLE
TWO  

 

THE
NOTES

 

	SECTION
      2.01.  	
      Amount
      of Notes.

 

The
Trustee shall authenticate (i) Notes for original issue on the Issue Date
in the aggregate principal amount not to exceed $150,000,000 and
(ii) subject to Section 4.06, Additional Notes in an unlimited
principal amount, upon a written order of the Issuer in the form of an Officers’
Certificate of the Issuer. The Officers’ Certificate shall specify the amount of
Notes to be authenticated and the date on which the Notes are to be
authenticated.

 

Upon
receipt of a written order of the Issuer in the form of an Officers’
Certificate, the Trustee shall authenticate Notes in substitution for Notes
originally issued to reflect any name change of the Issuer. Any Additional Notes
shall be part of the same issue as the Notes being issued on the date hereof and
will vote on all matters as one class with the Notes being issued on the date
hereof, including, without limitation, waivers, amendments, redemptions and
Offers to Purchase. For the purposes of this Indenture, except for Section 4.06,
references to the Notes include Additional Notes, if any.

 

Upon
receipt of an Issuer Request and an Officers’ Certificate certifying that a
registration statement relating to an exchange offer specified in the
Registration Rights Agreement or any registration rights agreement relating to
the Additional Notes is effective or that the conditions precedent to a private
exchange thereunder have been met, the Trustee shall authenticate an additional
series of Notes for issuance in exchange for the Notes tendered for exchange
pursuant to such exchange offer registered under the Securities Act or pursuant
to a Private Exchange. Exchange Notes or Private Exchange Notes may have such
distinctive series designations and such changes in the form thereof as are
specified in the Issuer Request referred to in the preceding
sentence.

 

	SECTION
      2.02.  	
      Form
      and Dating.

 

The Notes
and the Trustee’s certificate of authentication with respect thereto shall be
substantially in the form set forth in Exhibit
A, which
is incorporated in and forms a part of this Indenture. The Notes may have
notations, legends or endorsements required by law, rule or usage to which the
Issuer is subject. Without limiting the generality of the foregoing, Notes
offered and sold to Qualified Institutional Buyers in reliance on Rule 144A
(“Rule
144A Notes”) shall
bear the legend and include the form of assignment set forth in Exhibit
B, Notes
offered and sold in offshore transactions in reliance on Regulation S
(“Regulation
S Notes”) shall
bear the legend and include the form of assignment set forth in Exhibit C, and
Notes offered and sold to Institutional Accredited Investors in transactions
exempt from registration under the Securities Act not made in reliance on Rule
144A or Regulation S (“Other
Notes”) may be
represented by a Restricted Global Note or, if such an investor may not hold an
interest in the Restricted Global Note, a Physical Note, in each case, bearing
the Private Placement Legend. Each Note shall be dated the date of its
authentication.

 

The terms
and provisions contained in the Notes shall constitute, and are expressly made,
a part of this Indenture and, to the extent applicable, the Issuer, the
Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and agree to be bound
thereby.

 

The Notes
may be presented for registration of transfer and exchange at the offices of the
Registrar.

 

	SECTION
      2.03.  	
      Execution
      and Authentication.

 

Two
Officers shall sign, or one Officer shall sign and one Officer (each of whom
shall, in each case, have been duly authorized by all requisite corporate
actions) shall attest to, the Notes for the Issuer by manual or facsimile
signature.

 

If an
Officer whose signature is on a Note was an Officer at the time of such
execution but no longer holds that office at the time the Trustee authenticates
the Note, the Note shall be valid nevertheless.

 

No Note
shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Note a certificate of
authentication substantially in the form provided for herein executed by the
Trustee by manual signature, and such certificate upon any Note shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Note shall have been authenticated and delivered hereunder but never issued and
sold by the Issuer, and the Issuer shall deliver such Note to the Trustee for
cancellation as provided in Section 2.12, for all purposes of this
Indenture such Note shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

The
Trustee may appoint an authenticating agent reasonably acceptable to the Issuer
to authenticate the Notes. Unless otherwise provided in the appointment, an
authenticating agent may authenticate the Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with the Issuer and Affiliates of the Issuer. Each Paying Agent is
designated as an authenticating agent for purposes of this
Indenture.

 

The Notes
shall be issuable only in registered form without coupons in denominations of
$1,000 and any integral multiple thereof.

 

	SECTION
      2.04.  	
      Registrar
      and Paying Agent.

 

The
Issuer shall maintain an office or agency (which shall be located in the Borough
of Manhattan in The City of New York, State of New York) where Notes may be
presented for registration of transfer or for exchange (the “Registrar”), and
an office or agency where Notes may be presented for payment (the “Paying
Agent”) and an
office or agency where notices and demands to or upon the Issuer, if any, in
respect of the Notes and this Indenture may be served. The Registrar shall keep
a register of the Notes and of their transfer and exchange. The Issuer may have
one or more additional Paying Agents. The term “Paying Agent” includes any
additional Paying Agent. Neither the Issuer nor any Affiliate thereof may act as
Paying Agent.

 

The
Issuer shall enter into an appropriate agency agreement, which shall incorporate
the provisions of the TIA, with any Agent that is not a party to this Indenture.
The agreement shall implement the provisions of this Indenture that relate to
such Agent. The Issuer shall notify the Trustee of the name and address of any
such Agent. If the Issuer fails to maintain a Registrar or Paying Agent, or
fails to give the foregoing notice, the Trustee shall act as such and shall be
entitled to appropriate compensation in accordance with Section
7.07.

 

The
Issuer initially appoints the Trustee as Registrar, Paying Agent and Agent for
service of notices and demands in connection with the Notes and this
Indenture.

 

	SECTION
      2.05.  	
      Paying
      Agent To Hold Money in Trust.

 

Each
Paying Agent shall hold in trust for the benefit of the Holders or the Trustee
all money held by the Paying Agent for the payment of principal of or premium or
interest on the Notes (whether such money has been paid to it by the Issuer or
any other obligor on the Notes or the Guarantors), and the Issuer and the Paying
Agent shall notify the Trustee of any default by the Issuer (or any other
obligor on the Notes) in making any such payment. Money held in trust by the
Paying Agent need not be segregated except as required by law and in no event
shall the Paying Agent be liable for any interest on any money received or held
by it hereunder. The Issuer at any time may require the Paying Agent to pay all
money held by it to the Trustee and account for any funds disbursed and the
Trustee may at any time during the continuance of any Event of Default specified
in Section 6.01(1) or (2), upon written request to the Paying Agent, require
such Paying Agent to pay forthwith all money so held by it to the Trustee and to
account for any funds disbursed. Upon making such payment, the Paying Agent
shall have no further liability for the money delivered to the
Trustee.

 

	SECTION
      2.06.  	
      Holder
      Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of the Holders. If
the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at
least five Business Days before each Interest Payment Date, and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of the
Holders.

 

	SECTION
      2.07.  	
      Transfer
      and Exchange.

 

Subject
to Sections 2.16 and 2.17, when Notes are presented to the Registrar with a
request from the Holder of such Notes to register a transfer or to exchange them
for an equal principal amount of Notes of other authorized denominations, the
Registrar shall register the transfer as requested. Every Note presented or
surrendered for registration of transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Registrar, duly executed by the Holder thereof or his attorneys
duly authorized in writing. To permit registrations of transfers and exchanges,
the Issuer shall issue and execute and the Trustee shall authenticate new Notes
(and the Guarantors shall execute the guarantee thereon) evidencing such
transfer or exchange at the Registrar’s request. No service charge shall be made
to the Holder for any registration of transfer or exchange. The Issuer may
require from the Holder payment of a sum sufficient to cover any transfer taxes
or other governmental charge that may be imposed in relation to a transfer or
exchange, but this provision shall not apply to any exchange pursuant to
Section 2.11, 3.06, 4.09, 4.20 or 8.05 (in which events the Issuer shall be
responsible for the payment of such taxes). The Registrar shall not be required
to exchange or register a transfer of any Note for a period of 15 days
immediately preceding the mailing of notice of redemption of Notes to be
redeemed or of any Note selected, called or being called for redemption except
the unredeemed portion of any Note being redeemed in part.

 

Any
Holder of the Global Note shall, by acceptance of such Global Note, agree that
transfers of the beneficial interests in such Global Note may be effected only
through a book entry system maintained by the Holder of such Global Note (or its
agent), and that ownership of a beneficial interest in the Global Note shall be
required to be reflected in a book entry.

 

Each
Holder of a Note agrees to indemnify the Issuer and the Trustee against any
loss, cost, expense (including reasonable attorneys fees and expenses), claims
or liability that may result from the transfer, exchange or assignment of such
Holder’s Note in violation of any provision of this Indenture and/or applicable
U.S. Federal or state securities law.

 

Unless
expressly provided herein, neither the Trustee nor the Registrar shall have any
duty to monitor the Issuer’s compliance with or have any responsibility with
respect to the Issuer’s compliance with any Federal or state securities
laws.

 

	SECTION
      2.08.  	
      Replacement
      Notes.

 

If a
mutilated Note is surrendered to the Registrar or the Trustee, or if the Holder
of a Note claims that the Note has been lost, destroyed or wrongfully taken, the
Issuer shall issue and the Trustee shall authenticate a replacement Note (and
the Guarantors shall execute the guarantee thereon) if the Holder of such Note
furnishes to the Issuer and the Trustee evidence reasonably acceptable to them
of the ownership and the destruction, loss or theft of such Note and if the
requirements of Section 8-405 of the New York Uniform Commercial Code as in
effect on the date of this Indenture are met. If required by the Trustee or the
Issuer, an indemnity bond shall be posted, sufficient in the judgment of both to
protect the Issuer, the Guarantors, the Trustee or any Paying Agent from any
loss that any of them may suffer if such Note is replaced. The Issuer may charge
such Holder for the Issuer’s reasonable out-of-pocket expenses in replacing such
Note and the Trustee may charge the Issuer for the Trustee’s expenses
(including, without limitation, attorneys’ fees and disbursements) in replacing
such Note. Every replacement Note shall constitute a contractual obligation of
the Issuer.

 

	SECTION
      2.09.  	
      Outstanding
      Notes.

 

The Notes
outstanding at any time are all Notes that have been authenticated by the
Trustee except for (a) those cancelled by it, (b) those delivered to
it for cancellation, (c) to the extent set forth in Sections 9.01 and
9.02, on or after the date on which the conditions set forth in Section 9.01 or
9.02 have been satisfied, those Notes theretofore authenticated and delivered by
the Trustee hereunder and (d) those described in this Section 2.09 as
not outstanding. Subject to Section 2.10, a Note does not cease to be
outstanding because the Issuer or one of its Affiliates holds the
Note.

 

If a Note
is replaced pursuant to Section 2.08, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Note is held by
a bona fide purchaser in whose hands such Note is a legal, valid and binding
obligation of the Issuer.

 

If the
Paying Agent holds, in its capacity as such, on any maturity date, money
sufficient to pay all accrued interest and principal with respect to the Notes
payable on that date and is not prohibited from paying such money to the Holders
thereof pursuant to the terms of this Indenture, then on and after that date
such Notes cease to be outstanding and interest on them ceases to
accrue.

 

	SECTION
      2.10.  	
      Treasury
      Notes.

 

In
determining whether the Holders of the required principal amount of Notes have
concurred in any declaration of acceleration or notice of default or direction,
waiver or consent or any amendment, modification or other change to this
Indenture, Notes owned by the Issuer or any Affiliate of the Issuer shall be
disregarded as though they were not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent or any amendment, modification or other change to
this Indenture, only Notes as to which a Responsible Officer of the Trustee has
received an Officers’ Certificate stating that such Notes are so owned shall be
so disregarded; provided,
however, that
Notes so owned which have been pledged in good faith shall not be disregarded if
the pledgee (which shall not be the Issuer, a Guarantor, any other obligor on
the Notes or any of their respective Affiliates) has the right so to act with
respect to the Notes and said pledged Notes are identified as such in the
Officers’ Certificate received by a Responsible Officer of the
Trustee.

 

	SECTION
      2.11.  	
      Temporary
      Notes.

 

Until
definitive Notes are prepared and ready for delivery, the Issuer may prepare and
the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Issuer considers appropriate for temporary Notes. Without unreasonable delay,
the Issuer shall prepare and the Trustee shall authenticate definitive Notes in
exchange for temporary Notes. Until such exchange, temporary Notes shall be
entitled to the same rights, benefits and privileges as definitive
Notes.

 

	SECTION
      2.12.  	
      Cancellation.

 

The
Issuer at any time may deliver Notes to the Trustee for cancellation. The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The
Trustee shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall (subject to the
record-retention requirements of the Exchange Act) destroy cancelled Notes. The
Issuer may not reissue or resell, or issue new Notes to replace, Notes that the
Issuer has redeemed or paid, or that have been delivered to the Trustee for
cancellation.

 

	SECTION
      2.13.  	
      Defaulted
      Interest.

 

If the
Issuer defaults on a payment of interest on the Notes, it shall pay the
defaulted interest, plus (to the extent permitted by law) any interest payable
on the defaulted interest, in accordance with the terms hereof, to the Persons
who are Holders on a subsequent special record date, which date shall be at
least five Business Days prior to the payment date. The Issuer shall fix such
special record date and payment date in a manner satisfactory to the Trustee. At
least 10 days before such special record date, the Issuer shall mail to each
Holder a notice that states the special record date, the payment date and the
amount of defaulted interest, and interest payable on defaulted interest, if
any, to be paid. The Issuer may make payment of any defaulted interest in any
other lawful manner not inconsistent with the requirements (if applicable) of
any securities exchange on which the Notes may be listed and, upon such notice
as may be required by such exchange, if, after written notice given by the
Issuer to the Trustee of the proposed payment pursuant to this sentence, such
manner of payment shall be deemed practicable by the Trustee.

 

	SECTION
      2.14.  	
      CUSIP
      Number.

 

The
Issuer in issuing the Notes may use a “CUSIP” number, and if so, such CUSIP
number shall be included in notices of redemption or exchange as a convenience
to Holders; provided, that
any such notice may state that no representation is made as to the correctness
or accuracy of the CUSIP number printed in the notice or on the Notes, and that
reliance may be placed only on the other identification numbers printed on the
Notes. The Issuer shall promptly notify the Trustee of any such CUSIP number
used by the Issuer in connection with the issuance of the Notes and of any
change in the CUSIP number.

 

	SECTION
      2.15.  	
      Deposit
      of Moneys.

 

Prior to
10:00 a.m., New York City time, on each Interest Payment Date and maturity date,
the Issuer shall have deposited with the Paying Agent in immediately available
funds money sufficient to make cash payments, if any, due on such Interest
Payment Date or maturity date, as the case may be, in a timely manner which
permits the Trustee to remit payment to the Holders on such Interest Payment
Date or maturity date, as the case may be. The principal and interest on Global
Notes shall be payable to the Depository or its nominee, as the case may be, as
the sole registered owner and the sole holder of the Global Notes represented
thereby. The principal and interest on Physical Notes shall be payable, either
in person or by mail, at the office of the Paying Agent.

 

	SECTION
      2.16.  	
      Book-Entry
      Provisions for Global Notes.

 

(a)  Rule 144A
Notes initially shall be represented by one or more notes in registered, global
form without interest coupons (collectively, the “Restricted
Global Note”).
Regulation S Notes initially shall be represented by one or more notes in
registered, global form without interest coupons (collectively, the
“Regulation
S Global Note,” and,
together with the Restricted Global Note and any other global notes representing
Notes, the “Global
Notes”). The
Global Notes shall bear legends as set forth in Exhibit
D. The
Global Notes initially shall (i) be registered in the name of the Depository or
the nominee of such Depository, in each case for credit to an account of an
Agent Member (or, in the case of the Regulation S Global Notes, of Euroclear
System and Cedel Bank, S.A.), (ii) be delivered to the Trustee as custodian for
such Depository and (iii) bear legends as set forth in Exhibit B with
respect to Restricted Global Notes and Exhibit C with
respect to Regulation S Global Notes.

 

Members
of, or direct or indirect participants in, the Depository (“Agent
Members”) shall
have no rights under this Indenture with respect to any Global Note held on
their behalf by the Depository, or the Trustee as its custodian, or under the
Global Notes, and the Depository may be treated by the Issuer, the Trustee and
any agent of the Issuer or the Trustee as the absolute owner of the Global Note
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from
giving effect to any written certification, proxy or other authorization
furnished by the Depository or impair, as between the Depository and its Agent
Members, the operation of customary practices governing the exercise of the
rights of a Holder of any Note.

 

(b)  Transfers
of Global Notes shall be limited to transfer in whole, but not in part, to the
Depository, its successors or their respective nominees. Interests of beneficial
owners in the Global Notes may be transferred or exchanged for Physical Notes in
accordance with the rules and procedures of the Depository and the provisions of
Section 2.17. In addition, a Global Note shall be exchangeable for Physical
Notes if (i) the Depository (x) notifies the Issuer that it is unwilling or
unable to continue as depository for such Global Note and the Issuer thereupon
fails to appoint a successor depository or (y) has ceased to be a clearing
agency registered under the Exchange Act or (ii) there shall have occurred and
be continuing an Event of Default with respect to the Notes. In all cases,
Physical Notes delivered in exchange for any Global Note or beneficial interests
therein shall be registered in the names, and issued in any approved
denominations, requested by or on behalf of the Depository (in accordance with
its customary procedures).

 

(c)  In
connection with any transfer or exchange of a portion of the beneficial interest
in any Global Note to beneficial owners pursuant to paragraph (b), the Registrar
shall (if one or more Physical Notes are to be issued) reflect on its books and
records the date and a decrease in the principal amount of the Global Note in an
amount equal to the principal amount of the beneficial interest in the Global
Note to be transferred, and the Issuer shall execute, and the Trustee shall upon
receipt of a written order from the Issuer authenticate and make available for
delivery, one or more Physical Notes of like tenor and amount.

 

(d)  In
connection with the transfer of Global Notes as an entirety to beneficial owners
pursuant to paragraph (b), the Global Notes shall be deemed to be surrendered to
the Trustee for cancellation, and the Issuer shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the
Depository in writing in exchange for its beneficial interest in the Global
Notes, an equal aggregate principal amount of Physical Notes of authorized
denominations.

 

(e)  Any
Physical Note constituting a Restricted Note delivered in exchange for an
interest in a Global Note pursuant to paragraph (b), (c) or (d) shall, except as
otherwise provided by paragraphs (a)(i)(x) and (c) of Section 2.17, bear the
Private Placement Legend or, in the case of the Regulation S Global Note, the
legend set forth in Exhibit
C, in each
case, unless the Issuer determines otherwise in compliance with applicable
law.

 

(f)  On or
prior to the 40th day after the later of the commencement of the offering of the
Notes represented by the Regulation S Global Note and the issue date of such
Notes (such period through and including such 40th day, the “Restricted
Period”), a
beneficial interest in a Regulation S Global Note may be transferred to a Person
who takes delivery in the form of an interest in the corresponding Restricted
Global Note only upon receipt by the Trustee of a written certification from the
transferor to the effect that such transfer is being made (i) (a) to a Person
whom the transferor reasonably believes is a Qualified Institutional Buyer in a
transaction meeting the requirements of Rule 144A or (b) pursuant to another
exemption from the registration requirements under the Securities Act which is
accompanied by an Opinion of Counsel regarding the availability of such
exemption and (ii) in accordance with all applicable securities laws of any
state of the United States or any other jurisdiction.

 

(g)  Beneficial
interests in the Restricted Global Note may be transferred to a Person who takes
delivery in the form of an interest in the Regulation S Global Note, whether
before or after the expiration of the Restricted Period, only if the transferor
first delivers to the Trustee a written certificate to the effect that such
transfer is being made in accordance with Rule 903 or 904 of Regulation S or
Rule 144 (if available).

 

(h)  Any
beneficial interest in one of the Global Notes that is transferred to a Person
who takes delivery in the form of an interest in another Global Note shall, upon
transfer, cease to be an interest in such Global Note and become an interest in
such other Global Note and, accordingly, shall thereafter be subject to all
transfer restrictions and other procedures applicable to beneficial interests in
such other Global Note for as long as it remains such an interest.

 

(i)  The
Holder of any Global Note may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

 

	SECTION
      2.17.  	
      Special
      Transfer Provisions.

 

(a)  Transfers
to Non-QIB Institutional Accredited Investors and Non-U.S.
Persons. The
following provisions shall apply with respect to the registration of any
proposed transfer of a Note constituting a Restricted Note to any Institutional
Accredited Investor which is not a QIB or to any Non-U.S. Person:

 

(i)  the
Registrar shall register the transfer of any Note constituting a Restricted
Note, whether or not such Note bears the Private Placement Legend, if (x) the
requested transfer is after March 24, 2007 or such other date as such Note
shall be freely transferable under Rule 144 as certified in an Officers’
Certificate or (y) (1) in the case of a transfer to an Institutional
Accredited Investor which is not a QIB (excluding Non-U.S. Persons), the
proposed transferee has delivered to the Registrar a certificate substantially
in the form of Exhibit
E hereto
or (2) in the case of a transfer to a Non-U.S. Person (including a QIB), the
proposed transferor has delivered to the Registrar a certificate substantially
in the form of Exhibit
F hereto;
provided that in
the case of any transfer of a Note bearing the Private Placement Legend for a
Note not bearing the Private Placement Legend, the Registrar has received an
Officers’ Certificate authorizing such transfer; and

 

(ii)  if the
proposed transferor is an Agent Member holding a beneficial interest in a Global
Note, upon receipt by the Registrar of (x) the certificate, if any, required by
paragraph (i) above and (y) instructions given in accordance with the
Depository’s and the Registrar’s procedures,

 

whereupon
(a) the Registrar shall reflect on its books and records the date and (if the
transfer does not involve a transfer of outstanding Physical Notes) a decrease
in the principal amount of a Global Note in an amount equal to the principal
amount of the beneficial interest in a Global Note to be transferred, and
(b) the Registrar shall reflect on its books and records the date and an
increase in the principal amount of a Global Note in an amount equal to the
principal amount of the beneficial interest in the Global Note transferred or
the Issuer shall execute and the Trustee shall authenticate and make available
for delivery one or more Physical Notes of like tenor and amount.

 

(b)  Transfers
to QIBs. The
following provisions shall apply with respect to the registration or any
proposed registration of transfer of a Note constituting a Restricted Note to a
QIB (excluding transfers to Non-U.S. Persons):

 

(i)  the
Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on such Holder’s Note
stating, or has otherwise advised the Issuer and the Registrar in writing, that
the sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on such Holder’s Note
stating, or has otherwise advised the Issuer and the Registrar in writing, that
it is purchasing the Note for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a QIB within the meaning of Rule 144A, and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Issuer as it has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A; and

 

(ii)  if the
proposed transferee is an Agent Member, and the Notes to be transferred consist
of Physical Notes which after transfer are to be evidenced by an interest in the
Global Note, upon receipt by the Registrar of instructions given in accordance
with the Depository’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and an increase in the principal
amount of the Global Note in an amount equal to the principal amount of the
Physical Notes to be transferred, and the Trustee shall cancel the Physical
Notes so transferred.

 

(c)  Private
Placement Legend. Upon
the registration of transfer, exchange or replacement of Notes not bearing the
Private Placement Legend, the Registrar shall deliver Notes that do not bear the
Private Placement Legend. Upon the registration of transfer, exchange or
replacement of Notes bearing the Private Placement Legend, the Registrar shall
deliver only Notes that bear the Private Placement Legend unless (i) it has
received the Officers’ Certificate required by paragraph (a)(i)(y) of this
Section 2.17, (ii) there is delivered to the Registrar an Opinion of
Counsel reasonably satisfactory to the Issuer and the Trustee to the effect that
neither such legend nor the related restrictions on transfer are required in
order to maintain compliance with the provisions of the Securities Act or (iii)
such Note has been sold pursuant to an effective registration statement under
the Securities Act and the Registrar has received an Officers’ Certificate from
the Issuer to such effect.

 

(d)  General. By its
acceptance of any Note bearing the Private Placement Legend, each Holder of such
Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer
such Note only as provided in this Indenture.

 

The
Registrar shall retain for a period of two years copies of all letters, notices
and other written communications received pursuant to Section 2.16 or this
Section 2.17. The Issuer shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable notice to the Registrar.

 

	SECTION
      2.18.  	
      Computation
      of Interest.

 

Interest
on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
months.

 

 

ARTICLE
THREE  

 

REDEMPTION

 

	SECTION
      3.01.  	
      Election
      To Redeem; Notices to Trustee.

 

If the
Issuer elects to redeem Notes pursuant to paragraph 6 of the Notes, at least 45
days prior to the Redemption Date (unless a shorter notice shall be agreed to in
writing by the Trustee) but not more than 65 days before the Redemption Date,
the Issuer shall notify the Trustee in writing of the Redemption Date, the
principal amount of Notes to be redeemed and the redemption price, and deliver
to the Trustee an Officers’ Certificate stating that such redemption will comply
with the conditions contained in paragraph 6 of the Notes. Notice given to the
Trustee pursuant to this Section 3.01 may not be revoked after the time that
notice is given to Holders pursuant to Section 3.03.

 

	SECTION
      3.02.  	
      Selection
      by Trustee of Notes To Be Redeemed.

 

In the
event that less than all of the Notes are to be redeemed pursuant to a
redemption made pursuant to paragraph 6 of the Notes, selection of the
Notes for redemption shall be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Notes are listed or, if the Notes are not then listed on a national security
exchange, on a pro rata basis,
by lot or by such method as the Trustee shall deem fair and appropriate;
provided,
however, that no
Notes of a principal amount of $1,000 or less shall be redeemed in part. If a
partial redemption is made pursuant to paragraph 6 of the Notes, selection of
the Notes or portions thereof for redemption shall be made by the Trustee only
on a pro rata basis or
on as nearly a pro rata basis as
is practicable (subject to the procedures of the Depository), unless that method
is otherwise prohibited. The Trustee shall promptly notify the Issuer of the
Notes selected for redemption and, in the case of any Notes selected for partial
redemption, the principal amount thereof to be redeemed. The Trustee may select
for redemption portions of the principal of the Notes that have denominations
larger than $1,000. For all purposes of this Indenture unless the context
otherwise requires, provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption. The Issuer may
acquire Notes by means other than redemption, whether pursuant to an Issuer
tender offer, open market purchase or otherwise; provided such
acquisition does not otherwise violate the other terms of this
Indenture.

 

	SECTION
      3.03.  	
      Notice
      of Redemption.

 

At least
30 days, and no more than 60 days, before a Redemption Date, the Issuer shall
mail, or cause to be mailed, a notice of redemption by first-class mail to each
Holder of Notes to be redeemed at his or her last address as the same appears on
the registry books maintained by the Registrar pursuant to Section
2.04.

 

The
notice shall identify the Notes to be redeemed (including the CUSIP numbers
thereof) and shall state:

 

(1)  the
Redemption Date;

 

(2)  the
redemption price and the amount of premium and accrued interest to be
paid;

 

(3)  if any
Note is being redeemed in part, the portion of the principal amount of such Note
to be redeemed and that, after the Redemption Date and upon surrender of such
Note, a new Note or Notes in principal amount equal to the unredeemed portion
will be issued;

 

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

 

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

 

(6)  that
unless the Issuer defaults in making the redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption
Date;

 

(7)  the
provision of paragraph 6 of the Notes, as the case may be, pursuant to which the
Notes called for redemption are being redeemed; and

 

(8)  the
aggregate principal amount of Notes that are being redeemed.

 

At the
Issuer’s written request made at least five Business Days prior to the date on
which notice is to be given, the Trustee shall give the notice of redemption in
the Issuer’s name and at the Issuer’s sole expense.

 

	SECTION
      3.04.  	
      Effect
      of Notice of Redemption.

 

Once the
notice of redemption described in Section 3.03 is mailed, Notes called for
redemption become due and payable on the Redemption Date and at the redemption
price, including any premium, plus interest accrued to the Redemption Date. Upon
surrender to the Paying Agent, such Notes shall be paid at the redemption price,
including any premium, plus interest accrued to the Redemption Date,
provided that if
the Redemption Date is after a regular record date and on or prior to the
Interest Payment Date, the accrued interest shall be payable to the Holder of
the redeemed Notes registered on the relevant record date, and provided,
further, that if
a Redemption Date is a Legal Holiday, payment shall be made on the next
succeeding Business Day and no interest shall accrue for the period from such
Redemption Date to such succeeding Business Day.

 

	SECTION
      3.05.  	
      Deposit
      of Redemption Price.

 

(a)  On or
prior to 10:00 a.m., New York City time, on each Redemption Date, the
Issuer shall deposit with the Paying Agent in immediately available funds money
sufficient to pay the redemption price of, including premium, if any, and
accrued interest on all Notes to be redeemed on that date other than Notes or
portions thereof called for redemption on that date which have been delivered by
the Issuer to the Trustee for cancellation.

 

(b)  On and
after any Redemption Date, if money sufficient to pay the redemption price of,
including premium, if any, and accrued interest on Notes called for redemption
shall have been made available in accordance with Section 3.05(a), the Notes
called for redemption will cease to accrue interest and the only right of the
Holders of such Notes will be to receive payment of the redemption price of and,
subject to the first proviso in Section 3.04, accrued and unpaid interest on
such Notes to the Redemption Date. If any Note surrendered for redemption shall
not be so paid, interest will be paid, from the Redemption Date until such
redemption payment is made, on the unpaid principal of the Note and any interest
not paid on such unpaid principal, in each case, at the rate and in the manner
provided in the Notes.

 

	SECTION
      3.06.  	
      Notes
      Redeemed in Part.

 

Upon
surrender of a Note that is redeemed in part, the Trustee shall authenticate for
the Holder thereof a new Note equal in principal amount to the unredeemed
portion of the Note surrendered.

 

 

ARTICLE
FOUR  

 

COVENANTS

 

	SECTION
      4.01.  	
      Payment
      of Notes.

 

The
Issuer shall pay the principal of and interest (including all Registration
Default Damages as provided in the Registration Rights Agreement) on the Notes
on the dates and in the manner provided in the Notes and this Indenture. An
installment of principal or interest shall be considered paid on the date it is
due if the Trustee or Paying Agent holds on that date money designated for and
sufficient to pay such installment.

 

The
Issuer shall pay interest on overdue principal (including post-petition interest
in a proceeding under any Bankruptcy Law), and overdue interest, to the extent
lawful, at the rate specified in the Notes.

 

	SECTION
      4.02.  	
      Reports
      to Holders.

 

Whether
or not required by the SEC, so long as any Notes are outstanding, the Issuer
shall furnish to the Holders of Notes, within the time periods specified in the
SEC’s rules and regulations (including any grace periods or extensions permitted
by the SEC):

 

(1) all
quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Issuer were
required to file these Forms, including a “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and, with respect to the
annual information only, a report on the annual financial statements by the
Issuer’s independent registered public accounting firm; and

 

(2) all
current reports that would be required to be filed with the SEC on Form 8-K if
the Issuer were required to file these reports.

 

In
addition, whether or not required by the SEC, the Issuer shall file a copy of
all of the information and reports referred to in clauses (1) and (2) above with
the SEC for public availability within the time periods specified in the SEC’s
rules and regulations (unless the SEC will not accept the filing) and make the
information available to securities analysts and prospective investors upon
request. For so long as any Notes remain outstanding, the Issuer shall furnish
to the Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

 

	SECTION
      4.03.  	
      Waiver
      of Stay, Extension or Usury Laws.

 

Each of
the Issuer and the Guarantors covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, or plead (as a defense or
otherwise) or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law which would prohibit
or forgive any of the Issuer and the Guarantors from paying all or any portion
of the principal of, premium, if any, and/or interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in force, or
which may affect the covenants or the performance of this Indenture; and (to the
extent that they may lawfully do so) each of the Issuer and the Guarantors
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.

 

	SECTION
      4.04.  	
      Compliance
      Certificate.

 

(a)  The
Issuer shall deliver to the Trustee, within 90 days after the end of each fiscal
year, commencing with the Issuer’s fiscal year ending December 31, 2005, an
Officers’ Certificate stating that a review of the activities of the Issuer and
its Subsidiaries during such fiscal year has been made under the supervision of
the signing Officers with a view to determining whether the Issuer and the
Guarantors have kept, observed, performed and fulfilled their obligations under
this Indenture, and further stating, as to each such Officer signing such
certificate, that to his or her knowledge, the Issuer and the Guarantors have
kept, observed, performed and fulfilled each and every covenant contained in
this Indenture and are not in default in the performance or observance of any of
the terms, provisions and conditions hereof (or, if a Default shall have
occurred, describing all such Defaults of which he or she may have knowledge and
what action they are taking or propose to take with respect thereto) and that to
his or her knowledge no event has occurred and remains in existence by reason of
which payments on account of the principal of or interest, if any, on the Notes
is prohibited or if such event has occurred, a description of the event and what
action the Issuer and the Guarantors is taking or propose to take with respect
thereto.

 

(b)  The
Issuer and the Guarantors shall, so long as any of the Notes are outstanding,
deliver to the Trustee, forthwith upon any Officer becoming aware of any
Default, an Officers’ Certificate specifying such Default and what action the
Issuer and the Guarantors are taking or propose to take with respect
thereto.

 

(c)  The
Issuer’s fiscal year currently ends on December 31. The Issuer will provide
written notice to the Trustee of any change in its fiscal year.

 

	SECTION
      4.05.  	
      Taxes.

 

The
Issuer and the Guarantors shall, and shall cause each of their Subsidiaries to,
pay prior to delinquency all material taxes, assessments, and governmental
levies except as contested in good faith and by appropriate
proceedings.

 

	SECTION
      4.06.  	
      Limitations
      on Additional Indebtedness.

 

Until the
Notes receive an Investment Grade rating from both Rating Agencies (after which
time this Section 4.06 shall no longer be in effect), the Issuer shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, incur any
Indebtedness; provided that the
Issuer or any Restricted Subsidiary may incur additional Indebtedness (including
Acquired Indebtedness) if no Default shall have occurred and be continuing at
the time of or as a consequence of the incurrence of the Indebtedness and if,
after giving effect thereto, either (a) the Consolidated Fixed Charge Coverage
Ratio would be at least 2.00 to 1.00 or (b) the ratio of Consolidated
Indebtedness to Consolidated Tangible Net Worth would be less than 3.00 to 1.00
(either (a) or (b), the “Ratio
Exception”).

 

Notwithstanding
the above, so long as no Default shall have occurred and be continuing at the
time of or as a consequence of the incurrence of the following Indebtedness,
each of the following shall be permitted (the “Permitted
Indebtedness”):

 

(1) Indebtedness
of the Issuer and any Restricted Subsidiary under the Credit Facilities in an
aggregate amount at any time outstanding not to exceed the greater of (x) $750.0
million, less the aggregate amount of Net Available Proceeds applied by the
Issuer or any of its Restricted Subsidiaries since the Issue Date to repay
permanently any Indebtedness under a Credit Facility pursuant to Section 4.09,
and (y) the amount of the Borrowing Base as of the date of such
incurrence;

 

(2) the Notes
and the Guarantees issued on the Issue Date;

 

(3) Indebtedness
of the Issuer and the Restricted Subsidiaries to the extent outstanding on the
Issue Date (other than Indebtedness referred to in clauses (1) and (2) above,
and after giving effect to the intended use of proceeds of the
Notes);

 

(4) Indebtedness
incurred under a Warehouse Facility, provided that the
amount of such Indebtedness (including funding drafts issued thereunder)
outstanding at any time pursuant to this clause (4) does not exceed the value of
the Mortgages to be financed with the proceeds thereof;

 

(5) Indebtedness
of the Issuer and the Restricted Subsidiaries under Hedging Obligations;
provided that (a)
such Hedging Obligations relate to payment obligations on Indebtedness otherwise
permitted to be incurred by this Section 4.06, and (b) the notional
principal amount of such Hedging Obligations at the time incurred does not
exceed the principal amount of the Indebtedness to which such Hedging
Obligations relate;

 

(6) Indebtedness
of the Issuer owed to a Wholly-Owned Restricted Subsidiary and Indebtedness of
any Wholly-Owned Restricted Subsidiary owed to the Issuer or any other
Wholly-Owned Restricted Subsidiary; provided,
however, that
(a) any Indebtedness of the Issuer owed to a Restricted Subsidiary is unsecured
and (b) upon any such Wholly-Owned Restricted Subsidiary ceasing to be a
Wholly-Owned Restricted Subsidiary or such Indebtedness being owed to any Person
other than the Issuer or a Wholly-Owned Restricted Subsidiary, the Issuer or
such Wholly-Owned Restricted Subsidiary, as applicable, shall be deemed to have
incurred Indebtedness not permitted by this clause (6);

 

(7) Indebtedness
in respect of bid, performance or surety bonds issued for the account of the
Issuer or any Restricted Subsidiary in the ordinary course of business,
including guarantees or obligations of the Issuer or any Restricted Subsidiary
with respect to letters of credit supporting such bid, performance or surety
obligations (in each case other than for an obligation for money
borrowed);

 

(8) Purchase
Money Indebtedness incurred by the Issuer or any Restricted
Subsidiary;

 

(9) Non-Recourse
Indebtedness of the Issuer or any Restricted Subsidiary incurred for the
acquisition, development and/or improvement of real property and secured by
Liens only on such real property;

 

(10) Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business;
provided,
however, that
such Indebtedness is extinguished within five Business Days of
incurrence;

 

(11) Indebtedness
arising in connection with endorsement of instruments for deposit in the
ordinary course of business;

 

(12) Refinancing
Indebtedness with respect to Indebtedness incurred pursuant to the Ratio
Exception or clause (2) or (3) above; and

 

(13) Indebtedness
of the Issuer or any Restricted Subsidiary in an aggregate amount not to exceed
$25.0 million at any time outstanding.

 

Notwithstanding
anything to the contrary contained in this Section 4.06, the Issuer shall not
permit any Restricted Subsidiary that is not a Guarantor to incur any
Indebtedness or guarantee or otherwise provide credit support for any
Indebtedness of the Issuer or any Guarantor.

 

For
purposes of determining compliance with this Section 4.06, in the event that an
item of Indebtedness meets the criteria of more than one of the categories of
Permitted Indebtedness described in clauses (1) through (13) above or is
entitled to be incurred pursuant to the Ratio Exception, the Issuer shall, in
its sole discretion, classify such item of Indebtedness and may divide and
reclassify such Indebtedness in more than one of the types of Indebtedness
described, except that Indebtedness outstanding under the Credit Facilities on
the Issue Date shall be deemed to have been incurred under clause (1)
above.

 

	SECTION
      4.07.  	
      Limitations
      on Layering Indebtedness.

 

Until the
Notes receive an Investment Grade rating from both Rating Agencies (after which
time this Section 4.07 shall no longer be in effect), the Issuer shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, incur any
Indebtedness that is or purports to be by its terms (or by the terms of any
agreement governing such Indebtedness) contractually subordinated to any other
Indebtedness of the Issuer or of such Restricted Subsidiary, as the case may be,
unless such Indebtedness is also by its terms (or by the terms of any agreement
governing such Indebtedness) contractually made expressly subordinate to the
Notes or the Guarantee of such Restricted Subsidiary, to the same extent and in
the same manner as such Indebtedness is contractually subordinated to such other
Indebtedness of the Issuer or such Restricted Subsidiary, as the case may
be.

 

	SECTION
      4.08.  	
      Limitations
      on Restricted Payments.

 

Until the
Notes receive an Investment Grade rating from both Rating Agencies (after which
time this Section 4.08 shall no longer be in effect), the Issuer shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, make any
Restricted Payment if at the time of such Restricted Payment:

 

(1) a Default
shall have occurred and be continuing or shall occur as a consequence
thereof;

 

(2) the
Issuer cannot incur $1.00 of additional Indebtedness pursuant to the Ratio
Exception; or

 

(3) the
amount of such Restricted Payment, when added to the aggregate amount of all
other Restricted Payments made after the Issue Date (other than Restricted
Payments made pursuant to clause (2), (3) or (5) of the next paragraph), exceeds
the sum (the “Restricted
Payments Basket”) of
(without duplication):

 

(a) 50% of
Consolidated Net Income for the period (taken as one accounting period)
commencing on the first day of the fiscal quarter in which the Issue Date occurs
to and including the last day of the fiscal quarter ended immediately prior to
the date of such calculation for which consolidated financial statements are
available (or, if such Consolidated Net Income shall be a deficit, minus 100% of
such aggregate deficit), plus

 

(b) 100% of
the aggregate net cash proceeds or the Fair Market Value of any assets to be
used in a Permitted Business (other than securities) received by the Issuer
either (x) as contributions to the common equity of the Issuer after the Issue
Date or (y) from the issuance and sale of Qualified Equity Interests after the
Issue Date, other than to the extent any such proceeds are used to redeem Notes
in accordance with paragraph 6(b) of the Notes, plus

 

(c) the
aggregate amount by which Indebtedness of the Issuer or any Restricted
Subsidiary is reduced on the Issuer’s balance sheet upon the conversion or
exchange (other than by a Subsidiary of the Issuer) subsequent to the Issue Date
into Qualified Equity Interests (less the amount of any cash, or the fair value
of assets, distributed by the Issuer or any Restricted Subsidiary upon such
conversion or exchange), plus

 

(d) in the
case of the disposition or repayment of or return on any Investment that was
treated as a Restricted Payment made after the Issue Date, an amount (to the
extent not included in the computation of Consolidated Net Income) equal to the
lesser of (i) the return of capital with respect to such Investment and (ii) the
amount of such Investment that was treated as a Restricted Payment, in either
case, less the cost of the disposition of such Investment and net of taxes,
plus

 

(e) upon a
Redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the
lesser of (i) the Fair Market Value of the Issuer’s proportionate interest
in such Subsidiary immediately following such Redesignation, and (ii) the
aggregate amount of the Issuer’s Investments in such Subsidiary to the extent
such Investments reduced the amount available for subsequent Restricted Payments
under this clause (3) and were not previously repaid or otherwise reduced,
plus

 

(f) $25.0
million.

 

The
foregoing provisions will not prohibit:

 

(1) the
payment by the Issuer or any Restricted Subsidiary of any dividend within 60
days after the date of declaration thereof (including those declared prior to
the Issue Date), if on the date of declaration the payment would have complied
with the provisions of this Indenture;

 

(2) so long
as no Default shall have occurred and be continuing at the time of or as a
consequence of such redemption, the redemption of any Equity Interests of the
Issuer or any Restricted Subsidiary in exchange for, or out of the proceeds of
the substantially concurrent issuance and sale of, Qualified Equity
Interests;

 

(3) so long
as no Default shall have occurred and be continuing at the time of or as a
consequence of such redemption, the redemption of Subordinated Indebtedness of
the Issuer or any Restricted Subsidiary (a) in exchange for, or out of the
proceeds of the substantially concurrent issuance and sale of, Qualified Equity
Interests or (b) in exchange for, or out of the proceeds of the substantially
concurrent incurrence of, Refinancing Indebtedness permitted to be incurred
under Section 4.06 and the other terms of this Indenture;

 

(4) so long
as no Default shall have occurred and be continuing at the time of or as a
consequence of such redemption, the redemption of Equity Interests of the Issuer
held by officers, directors or employees or former officers, directors or
employees (or their transferees, estates or beneficiaries under their estates),
upon their death, disability, retirement, severance or termination of employment
or service; provided that the
aggregate cash consideration paid for all such redemptions shall not exceed $3.0
million during any calendar year; or

 

(5) repurchases
of Equity Interests deemed to occur upon the exercise of stock options if the
Equity Interests represent a portion of the exercise price thereof;

 

provided that no
issuance and sale of Qualified Equity Interests pursuant to clause (2) or (3)
above shall increase the Restricted Payments Basket, except to the extent the
proceeds thereof exceed the amounts used to effect the transactions described
therein.

 

	SECTION
      4.09.  	
      Limitations
      on Asset Sales.

 

Until the
Notes receive an Investment Grade rating from both Rating Agencies (after which
time this Section 4.09 shall no longer be in effect), the Issuer shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly,
consummate any Asset Sale unless:

 

(1) the
Issuer or such Restricted Subsidiary receives consideration at the time of such
Asset Sale at least equal to the Fair Market Value of the assets included in
such Asset Sale; and

 

(2) at least
75% of the total consideration received in such Asset Sale or series of related
Asset Sales consists of cash or Cash Equivalents.

 

For
purposes of clause (2), the following shall be deemed to be cash:

 

(a) the
amount (without duplication) of any Indebtedness (other than Subordinated
Indebtedness) of the Issuer or such Restricted Subsidiary that is expressly
assumed by the transferee in such Asset Sale and with respect to which the
Issuer or such Restricted Subsidiary, as the case may be, is unconditionally
released by the holder of such Indebtedness;

 

(b) the
amount of any obligations received from such transferee that are within 30 days
converted by the Issuer or such Restricted Subsidiary to cash (to the extent of
the cash actually so received); and

 

(c) the Fair
Market Value of any assets (including, but not limited to, Equity Interests in
an entity engaged in a Permitted Business) received by the Issuer or any
Restricted Subsidiary to be used by it in a Permitted Business.

 

If at any
time any non-cash consideration received by the Issuer or any Restricted
Subsidiary of the Issuer, as the case may be, in connection with any Asset Sale
is repaid or converted into or sold or otherwise disposed of for cash (other
than interest received with respect to any such non-cash consideration), then
the date of such repayment, conversion or disposition shall be deemed to
constitute the date of an Asset Sale hereunder and the Net Available Proceeds
thereof shall be applied in accordance with this Section 4.09.

 

If the
Issuer or any Restricted Subsidiary engages in an Asset Sale, the Issuer or such
Restricted Subsidiary shall, no later than 360 days following the consummation
thereof, apply all or any of the Net Available Proceeds therefrom
to:

 

(1) repay any
Indebtedness under the Credit Facilities (which will be a permanent reduction of
such Indebtedness);

 

(2) repay any
Indebtedness which was secured by the assets sold in such Asset Sale;
and/or

 

(3) invest
all or any part of the Net Available Proceeds thereof in the purchase of assets
(other than securities, unless such securities represent Equity Interests in an
entity engaged solely in a Permitted Business, such entity becomes a Restricted
Subsidiary and the Issuer or a Restricted Subsidiary acquires voting and
management control of such entity) to be used by or are useful to the Issuer or
any Restricted Subsidiary in the Permitted Business.

 

The
amount of Net Available Proceeds not applied or invested as provided in this
paragraph will constitute “Excess
Proceeds.”

 

When the
aggregate amount of Excess Proceeds equals or exceeds $25.0 million, the Issuer
shall be required to make an Offer to Purchase from all Holders and, if
applicable, redeem (or make an offer to do so) any Pari Passu Indebtedness of
the Issuer the provisions of which require the Issuer to redeem such
Indebtedness with the proceeds from any Asset Sales (or offer to do so), in an
aggregate principal amount of Notes and such Pari Passu Indebtedness equal to
the amount of such Excess Proceeds as follows:

 

(1) the
Issuer shall (a) make an Offer to Purchase (a “Net
Proceeds Offer”) to all
Holders, and (b) redeem (or make an offer to do so) any such other Pari Passu
Indebtedness, pro rata in
proportion to the respective principal amounts of the Notes and such other
Indebtedness required to be redeemed, the maximum principal amount of Notes and
Pari Passu Indebtedness that may be redeemed out of the amount (the
“Payment
Amount”) of
such Excess Proceeds;

 

(2) the offer
price for the Notes shall be payable in cash in an amount equal to 100% of the
principal amount of the Notes tendered pursuant to a Net Proceeds Offer,
plus accrued
and unpaid interest thereon, if any, to the date such Net Proceeds Offer is
consummated (the “Offered
Price”), and
the redemption price for such Pari Passu Indebtedness (the “Pari
Passu Indebtedness Price”) shall
be as set forth in the related documentation governing such
Indebtedness;

 

(3) if the
aggregate Offered Price of Notes validly tendered and not withdrawn by Holders
thereof exceeds the pro rata portion
of the Payment Amount allocable to the Notes, Notes to be purchased shall be
selected on a pro rata basis;
and

 

(4) upon
completion of such Net Proceeds Offer in accordance with the foregoing
provisions, the amount of Excess Proceeds with respect to which such Net
Proceeds Offer was made shall be deemed to be zero.

 

To the
extent that the sum of the aggregate Offered Price of Notes tendered pursuant to
a Net Proceeds Offer and the aggregate Pari Passu Indebtedness Price paid to the
holders of such Pari Passu Indebtedness is less than the Payment Amount relating
thereto (such a shortfall constituting a “Net
Proceeds Deficiency”), the
Issuer may use the Net Proceeds Deficiency or a portion thereof, for general
corporate purposes, subject to the provisions of this Indenture.

 

In the
event of the transfer of substantially all (but not all) of the assets of the
Issuer and the Restricted Subsidiaries as an entirety to a Person in a
transaction covered by and effected in accordance with Section 5.01 the
successor corporation shall be deemed to have sold for cash at Fair Market Value
the assets of the Issuer and the Restricted Subsidiaries not so transferred for
purposes of this Section 4.09, and shall comply with the provisions of this
Section 4.09 with respect to such deemed sale as if it were an Asset Sale (with
such Fair Market Value being deemed to be Net Available Proceeds for such
purpose).

 

The
Issuer shall comply with applicable tender offer rules, including the
requirements of Rule 14e-1 under the Exchange Act and any other applicable laws
and regulations in connection with the purchase of Notes pursuant to a Net
Proceeds Offer. To the extent that the provisions of any securities laws or
regulations conflict with this Section 4.09, the Issuer shall comply with
the applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 4.09 by virtue of this
compliance.

 

	SECTION
      4.10.  	
      Limitations
      on Transactions with Affiliates.

 

Until the
Notes receive an Investment Grade rating from both Rating Agencies (after which
time this Section 4.10 shall no longer be in effect), the Issuer shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, in one
transaction or a series of related transactions, sell, lease, transfer or
otherwise dispose of any of its assets to, or purchase any assets from, or enter
into any contract, agreement, understanding, loan, advance or guarantee with, or
for the benefit of, any Affiliate (an “Affiliate
Transaction”),
unless:

 

(1) such
Affiliate Transaction is on terms that are no less favorable to the Issuer or
the relevant Restricted Subsidiary than those that may have been obtained in a
comparable transaction at such time on an arm’s-length basis by the Issuer or
that Restricted Subsidiary from a Person that is not an Affiliate of the Issuer
or that Restricted Subsidiary; and

 

(2) the
Issuer delivers to the Trustee:

 

(a) with
respect to any Affiliate Transaction involving aggregate value in excess of
$10.0 million, an Officers’ Certificate certifying that such Affiliate
Transaction complies with clause (1) above and a Secretary’s Certificate which
sets forth and authenticates a resolution that has been adopted by the
Independent Directors approving such Affiliate Transaction; and

 

(b) with
respect to any Affiliate Transaction involving aggregate value of $25.0 million
or more, the certificates described in the preceding clause (a) and (x) a
written opinion as to the fairness of such Affiliate Transaction to the Issuer
or such Restricted Subsidiary from a financial point of view or (y) a written
appraisal supporting the value of such Affiliate Transaction, in either case,
issued by an Independent Financial Advisor.

 

The
foregoing restrictions shall not apply to:

 

(1) transactions
exclusively between or among (a) the Issuer and one or more Restricted
Subsidiaries or (b) Restricted Subsidiaries; provided, in each
case, that no Affiliate of the Issuer (other than another Restricted Subsidiary)
owns Equity Interests of any such Restricted Subsidiary;

 

(2) reasonable
director, officer, employee and consultant compensation (including bonuses) and
other benefits (including retirement, health, stock and other benefit plans) and
indemnification arrangements, in each case consistent with past
practices;

 

(3) loans and
advances permitted by clause (3) of the definition of “Permitted
Investments”;

 

(4) any
agreement as in effect as of the Issue Date and described in the Offering
Memorandum or any extension, amendment or modification thereto (so long as any
such extension, amendment or modification satisfies the requirements set forth
in clause (1) of the first paragraph of this Section 4.10) or any transaction
contemplated thereby; or

 

(5) Restricted
Payments of the type described in clause (1), (2) or (4) of the definition of
“Restricted Payment” and which are made in accordance with Section
4.08.

 

	SECTION
      4.11.  	
      Limitations
      on Liens.

 

The
Issuer shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Lien of any
nature whatsoever against (other than Permitted Liens) any assets of the Issuer
or any Restricted Subsidiary (including Equity Interests of a Restricted
Subsidiary), whether owned at the Issue Date or thereafter acquired, or any
proceeds therefrom, or assign or otherwise convey any right to receive income or
profits therefrom, which Lien secures Indebtedness or trade payables, unless
contemporaneously therewith:

 

(1) in the
case of any Lien securing an obligation that ranks pari passu with the
Notes or a Guarantee, effective provision is made to secure the Notes or such
Guarantee, as the case may be, at least equally and ratably with or prior to
such obligation with a Lien on the same collateral; and

 

(2) in the
case of any Lien securing an obligation that is subordinated in right of payment
to the Notes or a Guarantee, effective provision is made to secure the Notes or
such Guarantee, as the case may be, with a Lien on the same collateral that is
prior to the Lien securing such subordinated obligation,

 

in each
case, for so long as such obligation is secured by such Lien.

 

	SECTION
      4.12.  	
      Conduct
      of Business.

 

The
Issuer will not, and will not permit any Restricted Subsidiary to, engage in any
business other than the Permitted Business.

 

	SECTION
      4.13.  	
      Additional
      Guarantees.

 

If, after
the Issue Date, (a) the Issuer or any Restricted Subsidiary shall acquire or
create another Subsidiary (other than a Subsidiary that has been designated an
Unrestricted Subsidiary) or (b) any Unrestricted Subsidiary is redesignated a
Restricted Subsidiary, then, in each such case, the Issuer shall cause such
Restricted Subsidiary to:

 

(1) execute
and deliver to the Trustee (a) a supplemental indenture in form and substance
satisfactory to the Trustee pursuant to which such Restricted Subsidiary shall
unconditionally guarantee all of the Issuer’s obligations under the Notes and
this Indenture and (b) a notation of guarantee in respect of its Guarantee;
and

 

(2) deliver
to the Trustee one or more Opinions of Counsel that such supplemental indenture
(a) has been duly authorized, executed and delivered by such Restricted
Subsidiary and (b) constitutes a valid and legally binding obligation of such
Restricted Subsidiary in accordance with its terms.

 

	SECTION
      4.14.  	
      Limitations
      on Dividend and Other Restrictions Affecting Restricted
      Subsidiaries.

 

The
Issuer shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create or otherwise cause or permit to exist or become effective any
consensual encumbrance or consensual restriction on the ability of any
Restricted Subsidiary to:

 

(a) pay
dividends or make any other distributions on or in respect of its Equity
Interests;

 

(b) make
loans or advances or pay any Indebtedness or other obligation owed to the Issuer
or any other Restricted Subsidiary; or

 

(c) transfer
any of its assets to the Issuer or any other Restricted Subsidiary.

 

The
preceding limitation will not apply to:

 

(1) encumbrances
or restrictions existing under or by reason of applicable law;

 

(2) encumbrances
or restrictions existing under this Indenture, the Notes and the
Guarantees;

 

(3) non-assignment
provisions of any contract or any lease entered into in the ordinary course of
business;

 

(4) encumbrances
or restrictions existing under agreements existing on the date hereof
(including, without limitation, the Credit Facilities and the Warehouse
Facility) as in effect on the date hereof;

 

(5) restrictions
on the transfer of assets subject to any Lien permitted under this Indenture
imposed by the holder of such Lien;

 

(6) restrictions
on the transfer of assets imposed under any agreement to sell such assets
permitted under this Indenture to any Person pending the closing of such
sale;

 

(7) any
instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to any Person, or the assets of any Person, other than the Person
or the assets so acquired and which encumbrance or restriction was not incurred
in connection with, or in contemplation of the incurrence of such Acquired
Indebtedness;

 

(8) encumbrances
or restrictions arising in connection with Refinancing Indebtedness;
provided,
however, that
any such encumbrances and restrictions are not materially more restrictive with
respect to any Restricted Subsidiary than those in effect on the Issue Date with
respect to that Restricted Subsidiary pursuant to the agreements creating or
evidencing the Indebtedness being refinanced;

 

(9) customary
provisions in leases, partnership agreements, limited liability company
organizational governance documents, joint venture agreements and other similar
agreements entered into in the ordinary course of business that restrict the
transfer of leasehold interests or ownership interests in such partnership,
limited liability company, joint venture or similar Person;

 

(10) Purchase
Money Indebtedness incurred in compliance with Section 4.06 that impose
restrictions of the nature described in clause (c) above on the assets acquired;
and

 

(11) any
encumbrances or restrictions imposed by any amendments or refinancings of the
contracts, instruments or obligations referred to in clauses (1) through (10)
above; provided that
such amendments or refinancings are, in the good faith judgment of the Issuer’s
Board of Directors, no more materially restrictive with respect to such
encumbrances and restrictions than those prior to such amendment or
refinancing.

 

	SECTION
      4.15.  	
      Limitations
      on Designation of Unrestricted Subsidiaries.

 

The
Issuer may designate any Subsidiary of the Issuer as an “Unrestricted
Subsidiary” under this Indenture (a “Designation”) only
if:

 

(1) no
Default shall have occurred and be continuing at the time of or after giving
effect to such Designation; and

 

(2) the
Issuer would be permitted to make, at the time of such Designation, (a) a
Permitted Investment or (b) an Investment pursuant to the first paragraph of
Section 4.08, in either case, in an amount (the “Designation
Amount”) equal
to the Fair Market Value of the Issuer’s proportionate interest in such
Subsidiary on such date.

 

No
Subsidiary shall be Designated as an “Unrestricted Subsidiary” unless such
Subsidiary:

 

(1) has no
Indebtedness other than Permitted Unrestricted Subsidiary Debt;

 

(2) is not
party to any agreement, contract, arrangement or understanding with the Issuer
or any Restricted Subsidiary unless the terms of the agreement, contract,
arrangement or understanding are no less favorable to the Issuer or the
Restricted Subsidiary than those that might be obtained at the time from Persons
who are not Affiliates of the Issuer or such Restricted Subsidiary;

 

(3) is a
Person with respect to which neither the Issuer nor any Restricted Subsidiary
has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to maintain or preserve the Person’s financial condition or to
cause the Person to achieve any specified levels of operating results;
and

 

(4) has not
guaranteed or otherwise directly or indirectly provided credit support for any
Indebtedness of the Issuer or any Restricted Subsidiary, except for any
guarantee given solely to support the pledge by the Issuer or any Restricted
Subsidiary of the Equity Interests of such Unrestricted Subsidiary, which
guarantee is not recourse to the Issuer or any Restricted Subsidiary, and except
to the extent the amount thereof constitutes a Restricted Payment permitted
pursuant to Section 4.08.

 

If, at
any time, any Unrestricted Subsidiary fails to meet the preceding requirements
as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of the Subsidiary
and any Liens on assets of such Subsidiary shall be deemed to be incurred by a
Restricted Subsidiary as of the date and, if the Indebtedness is not permitted
to be incurred under Section 4.06 or the Lien is not permitted under
Section 4.11, the Issuer shall be in default of the applicable
covenant.

 

As of the
Issue Date, the Issuer has no Subsidiaries designated as Unrestricted
Subsidiaries.

 

The
Issuer may redesignate an Unrestricted Subsidiary as a Restricted Subsidiary (a
“Redesignation”) only
if:

 

(1) no
Default shall have occurred and be continuing at the time of and after giving
effect to such Redesignation; and

 

(2) all
Liens, Indebtedness and Investments of such Unrestricted Subsidiary outstanding
immediately following such Redesignation would, if incurred or made at such
time, have been permitted to be incurred or made for all purposes of this
Indenture.

 

All
Designations and Redesignations must be evidenced by resolutions of the Board of
Directors of the Issuer, delivered to the Trustee certifying compliance with the
foregoing provisions.

 

	SECTION
      4.16.  	
      [Intentionally
      Omitted]

 

	SECTION
      4.17.  	
      [Intentionally
      Omitted]

 

	SECTION
      4.18.  	
      Payments
      for Consent.

 

The
Issuer shall not, and shall not cause or permit any of its Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fee or otherwise, to any Holder of any Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of this Indenture or the Notes unless such consideration is offered to be paid
or agreed to be paid to all Holders which so consent, waive or agree to amend in
the time frame set forth in solicitation documents relating to such consent,
waiver or agreement.

 

	SECTION
      4.19.  	
      Legal
      Existence.

 

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

 

	SECTION
      4.20.  	
      Change
      of Control Offer.

 

Upon the
occurrence of any Change of Control, the Issuer shall be obligated to make an
Offer to Purchase (the “Change
of Control Offer”), and
shall purchase, on a Business Day (the “Change
of Control Payment Date”) not
more than 60 nor less than 30 days following the occurrence of the Change of
Control, all of the then outstanding Notes at a purchase price (the
“Change
of Control Purchase Price”) equal
to 101% of the principal amount thereof, plus accrued and unpaid interest, if
any, thereon to the Change of Control Payment Date. The Change of Control Offer
shall remain open for at least 20 Business Days and until the close of business
on the Change of Control Payment Date.

 

Within 30
days following any Change of Control (the “Change
of Control Date”), the
Issuer will mail, or caused to be mailed, to the holders a Change of Control
Offer:

 

(1) describing
the transaction or transactions that constitute the Change of
Control;

 

(2) offering
to purchase, pursuant to the procedures required by the Indenture and described
in the notice, on a date specified in the notice (which shall be a business day
not earlier than 30 days nor later than 60 days from the date the notice is
mailed) and for the Change of Control Purchase Price, all Notes properly
tendered by such holder pursuant to such Change of Control Offer;
and

 

(3) describing
the procedures that holders must follow to accept the Change of Control Offer.
The Change of Control Offer is required to remain open for at least 20 Business
Days or for such longer period as is required by law.

 

The
Issuer will publicly announce the results of the Change of Control Offer on or
as soon as practicable after the date of purchase.

 

Any
amounts remaining after the purchase of Notes pursuant to a Change of Control
Offer shall be returned by the Trustee to the Issuer.

 

The
Issuer’s obligation to make a Change of Control Offer will be satisfied if a
third party makes the Change of Control Offer in the manner and at the times and
otherwise in compliance with the requirements applicable to a Change of Control
Offer made by the Issuer and purchases all Notes properly tendered and not
withdrawn under the Change of Control Offer.

 

The
Issuer shall comply with applicable tender rules, including the requirements of
Rule 14e-1 under the Exchange Act and any other applicable laws and
regulations in connection with the purchase of Notes pursuant to a Change of
Control Offer. To the extent the provisions of any securities laws or
regulations conflict with the provisions under this Section 4.20, the
Issuer shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under this
Section 4.20 by virtue thereof.

 

 

ARTICLE
FIVE  

 

SUCCESSOR
CORPORATION

 

	SECTION
      5.01.  	
      Limitations
      on Mergers, Consolidations, Etc.

 

The
Issuer shall not, directly or indirectly, in a single transaction or a series of
related transactions, (a) consolidate or merge with or into (other than a merger
that satisfies the requirements of clause (1) below with a Wholly-Owned
Restricted Subsidiary solely for the purpose of changing the Issuer’s
jurisdiction of incorporation to another State of the United States), or sell,
lease, transfer, convey or otherwise dispose of or assign all or substantially
all of the assets of the Issuer or the Issuer and the Restricted Subsidiaries
(taken as a whole) or (b) adopt a Plan of Liquidation unless, in either
case:

 

(1) either:

 

(a) the
Issuer will be the surviving or continuing Person; or

 

(b) the
Person formed by or surviving such consolidation or merger or to which such
sale, lease, conveyance or other disposition shall be made (or, in the case of a
Plan of Liquidation, any Person to which assets are transferred) (collectively,
the “Successor”) is a
corporation or limited liability company organized and existing under the laws
of any State of the United States of America or the District of Columbia, and
the Successor expressly assumes, by supplemental indenture in form and substance
satisfactory to the Trustee, all of the obligations of the Issuer under the
Notes, this Indenture and the Registration Rights Agreement; provided that at
any time the Successor is a limited liability company, there shall be a
co-issuer of the Notes that is a corporation;

 

(2) immediately
prior to and immediately after giving effect to such transaction and the
assumption of the obligations as set forth in clause (1)(b) above and the
incurrence of any Indebtedness to be incurred in connection therewith, no
Default shall have occurred and be continuing; and

 

(3) immediately
after giving effect to such transaction and the assumption of the obligations
set forth in clause (1)(b) above and the incurrence of any Indebtedness to be
incurred in connection therewith, and the use of any net proceeds therefrom on a
pro forma basis, (a) the Consolidated Net Worth of the Issuer or the Successor,
as the case may be, would be at least equal to the Consolidated Net Worth of the
Issuer immediately prior to such transaction and (b) the Issuer or the
Successor, as the case may be, could incur $1.00 of additional Indebtedness
pursuant to the Ratio Exception.

 

For
purposes of this Section 5.01, any Indebtedness of the Successor which was
not Indebtedness of the Issuer immediately prior to the transaction shall be
deemed to have been incurred in connection with such transaction.

 

Except as
provided under Section 10.04, no Guarantor may consolidate with or merge with or
into (whether or not such Guarantor is the surviving Person) another Person,
whether or not affiliated with such Guarantor, unless:

 

(1) either:

 

(a) such
Guarantor will be the surviving or continuing Person; or

 

(b) the
Person formed by or surviving any such consolidation or merger assumes, by
supplemental indenture in form and substance satisfactory to the Trustee, all of
the obligations of such Guarantor under the Guarantee of such Guarantor, this
Indenture and the Registration Rights Agreement; and

 

(2) immediately
after giving effect to such transaction, no Default shall have occurred and be
continuing.

 

For
purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the assets of one or more Restricted Subsidiaries, the
Equity Interests of which constitute all or substantially all of the assets of
the Issuer, will be deemed to be the transfer of all or substantially all of the
assets of the Issuer.

 

Upon any
consolidation, combination or merger of the Issuer or a Guarantor, or any
transfer of all or substantially all of the assets of the Issuer in accordance
with the foregoing, in which the Issuer or such Guarantor is not the continuing
obligor under the Notes or its Guarantee, the surviving entity formed by such
consolidation or into which the Issuer or such Guarantor is merged or to which
the conveyance, lease or transfer is made will succeed to, and be substituted
for, and may exercise every right and power of, the Issuer or such Guarantor
under this Indenture, the Notes and the Guarantees with the same effect as if
such surviving entity had been named therein as the Issuer or such Guarantor
and, except in the case of a conveyance, transfer or lease, the Issuer or such
Guarantor, as the case may be, will be released from the obligation to pay the
principal of and interest on the Notes or in respect of its Guarantee, as the
case may be, and all of the Issuer’s or such Guarantor’s other obligations and
covenants under the Notes, this Indenture and its Guarantee, if
applicable.

 

Notwithstanding
the foregoing, any Restricted Subsidiary may merge into the Issuer or another
Restricted Subsidiary.

 

	SECTION
      5.02.  	
      Successor
      Person Substituted.

 

Upon any
consolidation or merger, or any transfer of all or substantially all of the
assets of the Issuer or any Restricted Subsidiary in accordance with Section
5.01, the successor corporation formed by such consolidation or into which the
Issuer is merged or to which such transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer or such
Restricted Subsidiary under this Indenture with the same effect as if such
successor corporation had been named as the Issuer or such Restricted Subsidiary
herein, and thereafter the predecessor corporation shall be relieved of all
obligations and covenants under this Indenture and the Notes.

 

 

ARTICLE
SIX  

 

DEFAULTS
AND REMEDIES

 

	SECTION
      6.01.  	
      Events
      of Default.

 

Each of
the following is an “Event
of Default”:

 

(1) failure
by the Issuer to pay interest on any of the Notes when it becomes due and
payable and the continuance of any such failure for 30 days;

 

(2) failure
by the Issuer to pay the principal on any of the Notes when it becomes due and
payable, whether at stated maturity, upon redemption, upon purchase, upon
acceleration or otherwise;

 

(3) failure
by the Issuer to comply with any of its agreements or Sections 4.06, 4.08, 4.09,
in respect of its obligations to make a Change of Control Offer, 4.20 and 5.01
and continuance of such a failure for 30 days;

 

(4) failure
by the Issuer to comply with any other agreement or covenant in this Indenture
and continuance of this failure for 60 days after notice of the failure has been
given to the Issuer by the Trustee or by the Holders of at least 25% of the
aggregate principal amount of the Notes then outstanding;

 

(5) default
under any mortgage, indenture or other instrument or agreement under which there
may be issued or by which there may be secured or evidenced Indebtedness of the
Issuer or any Restricted Subsidiary, whether such Indebtedness now exists or is
incurred after the Issue Date, which default:

 

(a) is caused
by a failure to pay when due principal on such Indebtedness within the
applicable express grace period,

 

(b) results
in the acceleration of such Indebtedness prior to its express final maturity
or

 

(c) results
in the commencement of judicial proceedings to foreclose upon, or to exercise
remedies under applicable law or applicable security documents to take ownership
of, the assets securing such Indebtedness, and

 

in each
case, the principal amount of such Indebtedness, together with any other
Indebtedness with respect to which an event described in clause (a), (b) or (c)
has occurred and is continuing, aggregates $20.0 million or more;

 

(6) one or
more judgments or orders that exceed $20.0 million in the aggregate (net of
amounts covered by insurance or bonded) for the payment of money have been
entered by a court or courts of competent jurisdiction against the Issuer or any
Restricted Subsidiary and such judgment or judgments have not been satisfied,
stayed, annulled or rescinded within 60 days of being entered;

 

(7) the
Issuer or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

 

(a) commences
a voluntary case,

 

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

 

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

 

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

 

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

 

(a) is for
relief against the Issuer or any Significant Subsidiary as debtor in an
involuntary case,

 

(b) appoints
a Custodian of the Issuer or any Significant Subsidiary or a Custodian for all
or substantially all of the assets of the Issuer or any Significant Subsidiary,
or

 

(c) orders
the liquidation of the Issuer or any Significant Subsidiary, and

 

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

 

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

 

	SECTION
      6.02.  	
      Acceleration.

 

If an
Event of Default (other than an Event of Default specified in clause (7) or (8)
of Section 6.01with respect to the Issuer), shall have occurred and be
continuing, the Trustee, by written notice to the Issuer, or the Holders of at
least 25% in aggregate principal amount of the Notes then outstanding by written
notice to the Issuer and the Trustee, may declare all amounts owing under the
Notes to be due and payable immediately. Upon such declaration of acceleration,
the aggregate principal of and accrued and unpaid interest on the outstanding
Notes shall immediately become due and payable; provided, however, that
after such acceleration, but before a judgment or decree based on acceleration,
the Holders of a majority in aggregate principal amount of such outstanding
Notes may rescind and annul such acceleration if all Events of Default, other
than the nonpayment of accelerated principal and interest, have been cured or
waived as provided in this Indenture. If an Event of Default specified in clause
(7) or (8) of Section 6.01 with respect to the Issuer occurs, all outstanding
Notes shall become due and payable without any further action or
notice.

 

	SECTION
      6.03.  	
      Other
      Remedies.

 

If an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of,
or premium, if any, and interest on the Notes or to enforce the performance of
any provision of the Notes or this Indenture and may take any necessary action
requested of it as Trustee to settle, compromise, adjust or otherwise conclude
any proceedings to which it is a party.

 

The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding. A delay or omission by the
Trustee or any Holder in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. No remedy is exclusive of any other
remedy. All available remedies are cumulative. Any costs associated with actions
taken by the Trustee under this Section 6.03 shall be reimbursed to the
Trustee by the Issuer.

 

	SECTION
      6.04.  	
      Waiver
      of Past Defaults and Events of Default.

 

Subject
to Sections 6.02, 6.08 and 8.02, the Holders of a majority in aggregate
principal amount of the Notes then outstanding have the right to waive any
existing Default or compliance with any provision of this Indenture or the
Notes. Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereto.

 

	SECTION
      6.05.  	
      Control
      by Majority.

 

The
Holders of a majority in aggregate principal amount of the Notes then
outstanding may 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 by this Indenture. The Trustee, however, may refuse to
follow any direction that conflicts with law or this Indenture or that the
Trustee determines may be unduly prejudicial to the rights of another Holder not
taking part in such direction, and the Trustee shall have the right to decline
to follow any such direction if the Trustee, being advised by counsel,
determines that the action so directed may not lawfully be taken or if the
Trustee in good faith shall, by a Responsible Officer, determine that the
proceedings so directed may involve it in personal liability; provided that the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

	SECTION
      6.06.  	
      Limitation
      on Suits.

 

No Holder
will have any right to institute any proceeding with respect to this Indenture
or for any remedy thereunder, unless the Trustee:

 

(1)  has
failed to act for a period of 60 days after receiving written notice of a
continuing Event of Default by such Holder and a request to act by Holders of at
least 25% in aggregate principal amount of Notes outstanding;

 

(2)  has been
offered indemnity satisfactory to it in its reasonable judgment;
and

 

(3)  has not
received from the Holders of a majority in aggregate principal amount of the
outstanding Notes a direction inconsistent with such request.

 

However,
such limitations do not apply to a suit instituted by a Holder of any Note for
enforcement of payment of the principal of or interest on such Note on or after
the due date therefor (after giving effect to the grace period specified in
clause (1) of Section 6.01).

 

	SECTION
      6.07.  	
      No
      Personal Liability of Directors, Officers, Employees and Stockholders.

 

No
director, officer, employee, incorporator or stockholder of the Issuer will have
any liability for any obligations of the Issuer under the Notes or this
Indenture or of any Guarantor under its Guarantee or this Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes and the Guarantees.

 

	SECTION
      6.08.  	
      Rights
      of Holders To Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal of, or premium, if any, and interest of the Note
(including Registration Default Damages) on or after the respective due dates
expressed in the Note, or to bring suit for the enforcement of any such payment
on or after such respective dates, is absolute and unconditional and shall not
be impaired or affected without the consent of the Holder.

 

	SECTION
      6.09.  	
      Collection
      Suit by Trustee.

 

If an
Event of Default in payment of principal, premium or interest specified in
Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Issuer
or any Guarantor (or any other obligor on the Notes) for the whole amount of
unpaid principal and accrued interest remaining unpaid, together with interest
on overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate set forth
in the Notes, and such further amounts as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

	SECTION
      6.10.  	
      Trustee
      May File Proofs of Claim.

 

The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07) and the Holders allowed in any judicial proceedings relative to
the Issuer or any Guarantor (or any other obligor upon the Notes), its creditors
or its property and shall be entitled and empowered to collect and receive any
monies or other property payable or deliverable on any such claims and to
distribute the same after deduction of its charges and expenses to the extent
that any such charges and expenses are not paid out of the estate in any such
proceedings and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section
7.07.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan or
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceedings.

 

	SECTION
      6.11.  	
      Priorities.

 

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

 

FIRST: to
the Trustee for amounts due under Section 7.07;

 

SECOND:
to Holders for amounts due and unpaid on the Notes for principal, premium, if
any, and interest (including Registration Default Damages, if any) as to each,
ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes; and

 

THIRD: to
the Issuer or, to the extent the Trustee collects any amount from any Guarantor,
to such Guarantor.

 

The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 6.11.

 

	SECTION
      6.12.  	
      Undertaking
      for Costs.

 

In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section 6.12 does not
apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.08 or a
suit by Holders of more than 10% in principal amount of the Notes then
outstanding.

 

	SECTION
      6.13.  	
      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 to
such Holder, then and in every case, subject to any determination in such
proceeding, the Issuer, the Guarantors, the Trustee and the Holders shall be
restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

 

 

ARTICLE
SEVEN  

 

TRUSTEE

 

	SECTION
      7.01.  	
      Duties
      of Trustee.

 

(a)  If an
Event of Default actually known to a Responsible Officer of the Trustee has
occurred and is continuing, the Trustee shall exercise such of the rights and
powers vested in it by this Indenture and use the same degree of care and skill
in their exercise as a prudent person would exercise or use under the same
circumstances in the conduct of his or her own affairs.

 

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

 

(1)  The
Trustee need perform only those duties that are specifically set forth in this
Indenture and no others.

 

(2)  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 but, in the case of any such certificates or
opinions which 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 conform on their face to the requirements of this
Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts, or the correctness of opinions or conclusions,
stated therein).

 

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

 

(1)  This
paragraph does not limit the effect of paragraph (b) of this Section
7.01.

 

(2)  The
Trustee shall not be liable for any error of judgment made in good faith, unless
it is proved that the Trustee was grossly negligent in ascertaining the
pertinent facts.

 

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

 

(4)  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 rights, powers or duties if, in its sole discretion, it shall have grounds
for believing that repayment of such funds or adequate indemnity satisfactory to
it against such risk or liability is not reasonably assured to it.

 

(d)  Whether
or not therein expressly so provided, paragraphs (a), (b), (c) and (e) of this
Section 7.01 shall govern every provision of this Indenture that in any way
relates to the Trustee.

 

(e)  The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it in its sole discretion against any loss,
liability, expense or fee.

 

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

 

(g)  Except as
expressly set forth in this Indenture, the Trustee shall have no obligation to
ascertain or inquire as to the observance or performance of any covenant,
agreement or obligation on the part of the Issuer or any of the Guarantors under
this Indenture or any other agreement, instrument or document.

 

	SECTION
      7.02.  	
      Rights
      of Trustee.

 

Subject
to Section 7.01:

 

(1)  The
Trustee may rely on any document reasonably believed by it to be genuine and to
have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document.

 

(2)  Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, or both, which shall conform to the
provisions of Section 12.05. The Trustee shall be protected and shall not be
liable for any action it takes or omits to take in good faith in reliance on
such certificate or opinion.

 

(3)  The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed by it with due
care.

 

(4)  The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it reasonably believes to be authorized or within its rights or
powers; provided that the
Trustee’s conduct does not constitute gross negligence or willful
misconduct.

 

(5)  The
Trustee may consult with counsel of its selection (including in-house counsel),
and the advice or opinion of such counsel as to matters of law shall be full and
complete authorization and protection from liability in respect of any action
taken, omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

 

	SECTION
      7.03.  	
      Individual
      Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may make loans to, accept deposits from, perform services for or
otherwise deal with the either of the Issuer or any Guarantor, or any Affiliates
thereof, with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee, however, shall be subject to
Sections 7.10 and 7.11.

 

	SECTION
      7.04.  	
      Trustee’s
      Disclaimer.

 

The
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes or any Guarantee, it shall
not be accountable for the Issuer’s or any Guarantor’s use of the proceeds from
the sale of Notes or any money paid to the Issuer or any Guarantor pursuant to
the terms of this Indenture and it shall not be responsible for any statement in
the Notes, Guarantee or this Indenture other than its certificate of
authentication.

 

	SECTION
      7.05.  	
      Notice
      of Defaults.

 

The
Trustee shall, within 30 days after the occurrence of any Default with respect
to the Notes, give the Holders notice of all uncured Defaults thereunder known
to it; provided,
however, that,
except in the case of an Event of Default in payment with respect to the Notes
or a Default in complying with Section 5.01, the Trustee shall be protected
in withholding such notice if and so long as a committee of its Responsible
Officers in good faith determines that the withholding of such notice is in the
interest of the Holders.

 

	SECTION
      7.06.  	
      Reports
      by Trustee to Holders.

 

If
required by TIA § 313(a), within 60 days after May 15 of any year,
commencing May 15, 2005 the Trustee shall mail to each Holder a brief report
dated as of such May 15 that complies with TIA § 313(a). The Trustee also
shall comply with TIA § 313(b)(2). The Trustee shall also transmit by mail
all reports as required by TIA § 313(c) and TIA § 313(d).

 

Reports
pursuant to this Section 7.06 shall be transmitted by mail:

 

(1)  to all
Holders of Notes, as the names and addresses of such Holders appear on the
Registrar’s books; and

 

(2)  to such
Holders of Notes as have, within the two years preceding such transmission,
filed their names and addresses with the Trustee for that purpose.

 

A copy of
each report at the time of its mailing to Holders shall be filed with the SEC
and each stock exchange on which the Notes are listed. The Issuer shall promptly
notify the Trustee when the Notes are listed on any stock exchange.

 

	SECTION
      7.07.  	
      Compensation
      and Indemnity.

 

The
Issuer and the Guarantors shall pay to the Trustee and Agents from time to time
reasonable compensation for its services hereunder (which compensation shall not
be limited by any provision of law in regard to the compensation of a trustee of
an express trust). Compensation of the Trustee in accordance with its
established fee schedule, as it may be amended from time to time, shall be
deemed reasonable compensation to the Trustee for its services. The Issuer and
the Guarantors shall reimburse the Trustee and Agents upon request for all
reasonable disbursements, expenses and advances incurred or made by it in
connection with its duties under this Indenture, including the reasonable
compensation, disbursements and expenses of the Trustee’s agents and
counsel.

 

The
Issuer and the Guarantors shall indemnify each of the Trustee and any
predecessor Trustee for, and hold each of them harmless against, any and all
loss, damage, claim, liability or expense, including without limitation taxes
(other than taxes based on the income of the Trustee or such Agent) and
reasonable attorneys’ fees and expenses incurred by each of them in connection
with the acceptance or performance of its duties under this Indenture including
the reasonable 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 (including, without limitation, settlement costs). The Trustee
or Agent shall notify the Issuer and the Guarantors in writing promptly of any
claim asserted against the Trustee or Agent for which it may seek indemnity.
However, the failure by the Trustee or Agent to so notify the Issuer and the
Guarantors shall not relieve the Issuer and Guarantors of their obligations
hereunder except to the extent the Issuer and the Guarantors are prejudiced
thereby.

 

Notwithstanding
the foregoing, the Issuer and the Guarantors need not reimburse the Trustee for
any expense or indemnify it against any loss or liability incurred by the
Trustee to the extent resulting from its gross negligence or bad faith. To
secure the payment obligations of the Issuer and the Guarantors in this Section
7.07, the Trustee shall have a lien prior to the Notes on all money or property
held or collected by the Trustee except such money or property held in trust to
pay principal of and interest on particular Notes. The obligations of the Issuer
and the Guarantors under this Section 7.07 to compensate and indemnify the
Trustee, Agents and each predecessor Trustee and to pay or reimburse the
Trustee, Agents and each predecessor Trustee for expenses, disbursements and
advances shall be joint and several liabilities of the Issuer and each of the
Guarantors and shall survive the resignation or removal of the Trustee and the
satisfaction, discharge or other termination of this Indenture, including any
termination or rejection hereof under any Bankruptcy Law.

 

When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(7) or (8) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
Bankruptcy Law.

 

For
purposes of this Section 7.07, the term “Trustee” shall include any trustee
appointed pursuant to this Article Seven.

 

	SECTION
      7.08.  	
      Replacement
      of Trustee.

 

The
Trustee may resign by so notifying the Issuer and the Guarantors in writing. The
Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by notifying the Issuer and the removed Trustee in writing and may
appoint a successor Trustee with the Issuer’s written consent, which consent
shall not be unreasonably withheld. The Issuer may remove the Trustee at its
election if:

 

(1)  the
Trustee fails to comply with Section 7.10;

 

(2)  the
Trustee is adjudged a bankrupt or an insolvent;

 

(3)  a
receiver or other public officer takes charge of the Trustee or its property;
or

 

(4)  the
Trustee otherwise becomes incapable of acting.

 

If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Issuer shall promptly appoint a successor
Trustee.

 

If a
successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Issuer or the Holders of a
majority in principal amount of the outstanding Notes may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

 

If the
Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuer. Immediately following such delivery, the
retiring Trustee shall, subject to its rights under Section 7.07, transfer all
property held by it as Trustee to the successor Trustee, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. A successor Trustee shall mail notice of its succession to each
Holder. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Issuer obligations under Section 7.07 shall continue for the benefit
of the retiring Trustee.

 

	SECTION
      7.09.  	
      Successor
      Trustee by Consolidation, Merger, etc.

 

If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust assets to, another entity, subject to
Section 7.10, the successor entity without any further act shall be the
successor Trustee; provided such
entity shall be otherwise qualified and eligible under this Article
Seven.

 

	SECTION
      7.10.  	
      Eligibility;
      Disqualification.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA
§ 310(a)(1) and (2) in every respect. The Trustee (together with its
corporate parent) shall have a combined capital and surplus of at least
$100,000,000 as set forth in the most recent applicable published annual report
of condition. The Trustee shall comply with TIA § 310(b), including the
provision in § 310(b)(1).

 

	SECTION
      7.11.  	
      Preferential
      Collection of Claims Against Issuer.

 

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

 

	SECTION
      7.12.  	
      Paying
      Agents.

 

The
Issuer shall cause each Paying Agent other than the Trustee to execute and
deliver to it and the Trustee an instrument in which such agent shall agree with
the Trustee, subject to the provisions of this Section 7.12:

 

(A) that it
will hold all sums held by it as agent for the payment of principal of, or
premium, if any, or interest on, the Notes (whether such sums have been paid to
it by the Issuer or by any obligor on the Notes) in trust for the benefit of
Holders or the Trustee;

 

(B) that it
will at any time during the continuance of any Event of Default, upon written
request from the Trustee, deliver to the Trustee all sums so held in trust by it
together with a full accounting thereof; and

 

(C) that it
will give the Trustee written notice within three (3) Business Days of any
failure of the Issuer (or by any obligor on the Notes) in the payment of any
installment of the principal of, premium, if any, or interest on, the Notes when
the same shall be due and payable.

 

 

ARTICLE
EIGHT  

 

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

	SECTION
      8.01.  	
      Without
      Consent of Holders.

 

The
Issuer and the Trustee may amend, waive or supplement this Indenture, the
Guarantees or the Notes without consent of any Holder:

 

(1)  to
provide for the assumption of the Issuer’s obligations to the Holders pursuant
to Section 5.01;

 

(2)  to
provide for uncertificated Notes in addition to or in place of certificated
Notes;

 

(3)  to cure
any ambiguity, defect or inconsistency;

 

(4)  to
release any Guarantor from any of its obligations under its Guarantee or this
Indenture (to the extent permitted by this Indenture);

 

(5)  to
maintain the qualification of this Indenture under the TIA; or

 

(6)  to make
any other change that does not materially adversely affect the rights of any
Holder hereunder.

 

The
Trustee is hereby authorized to join with the Issuer and the Guarantors in the
execution of any supplemental indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations
which may be therein contained, but the Trustee shall not be obligated to enter
into any such supplemental indenture which adversely affects its own rights,
duties or immunities under this Indenture.

 

	SECTION
      8.02.  	
      With
      Consent of Holders. 

 

This
Indenture or the Notes may be amended with the consent (which may include
consents obtained in connection with a tender offer or exchange offer for Notes)
of the Holders of at least a majority in aggregate principal amount of the Notes
then outstanding, and any existing Default under, or compliance with any
provision of, this Indenture may be waived (other than any continuing Default in
the payment of the principal or interest on the Notes) with the consent (which
may include consents obtained in connection with a tender offer or exchange
offer for Notes) of the Holders of a majority in aggregate principal amount of
the Notes then outstanding; provided
that:

 

(a)  no such
amendment may, without the consent of the Holders of two-thirds in aggregate
principal amount of Notes then outstanding, amend the obligation of the Issuer
under Section 4.20 or the related definitions that could adversely affect
the rights of any Holder; and

 

(b)  without
the consent of each Holder affected, the Issuer and the Trustee may
not:

 

(1)  change
the maturity of any Note;

 

(2)  reduce
the amount, extend the due date or otherwise affect the terms of any scheduled
payment of interest on or principal of the Notes;

 

(3)  reduce
any premium payable upon optional redemption of the Notes, change the date on
which any Notes are subject to redemption or otherwise alter the provisions with
respect to the redemption of the Notes;

 

(4)  make any
Note payable in money or currency other than that stated in the
Notes;

 

(5)  modify or
change any provision of this Indenture or the related definitions to affect the
ranking of the Notes or any Guarantee in a manner that adversely affects the
Holders;

 

(6)  reduce
the percentage of Holders necessary to consent to an amendment or waiver to this
Indenture or the Notes;

 

(7)  impair
the rights of Holders to receive payments of principal of or interest on the
Notes;

 

(8)  release
any Guarantor from any of its obligations under its Guarantee or this Indenture,
except as permitted by this Indenture; or 

 

(9)  make any
change in this Section 8.02.

 

After an
amendment, supplement or waiver under this Section 8.02 becomes effective, the
Issuer shall mail to the Holders a notice briefly describing the amendment,
supplement or waiver.

 

Upon the
written request of the Issuer, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the receipt by the
Trustee of evidence reasonably satisfactory to the Trustee of the consent of the
Holders as aforesaid and upon receipt by the Trustee of the documents described
in Section 8.06, the Trustee shall join with the Issuer and the Guarantors in
the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under this Indenture, in
which case the Trustee may, but shall not be obligated to, enter into such
supplemental indenture.

 

It shall
not be necessary for the consent of the Holders under this Section 8.02 to
approve the particular form of any proposed amendment, supplement or waiver, but
it shall be sufficient if such consent approves the substance thereof;
provided,
however, that
the Trustee shall have the right to require an Opinion of Counsel to the effect
that the proposed amendment, supplement or waiver conforms in substance to the
consent of the Holders.

 

	SECTION
      8.03.  	
      Compliance
      with Trust Indenture Act.

 

Every
amendment or supplement to this Indenture or the Notes shall comply with the TIA
as then in effect.

 

	SECTION
      8.04.  	
      Revocation
      and Effect of Consents.

 

Until an
amendment, supplement, waiver or other action becomes effective, a consent to it
by a Holder of a Note is a continuing consent conclusive and binding upon such
Holder and every subsequent Holder of the same Note or portion thereof, and of
any Note issued upon the transfer thereof or in exchange therefor or in place
thereof, even if notation of the consent is not made on any such Note. Any such
Holder or subsequent Holder, however, may revoke the consent as to his Note or
portion of a Note, if the Trustee receives the written notice of revocation
before the date the amendment, supplement, waiver or other action becomes
effective.

 

The
Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement, or
waiver. If a record date is fixed, then, notwithstanding the preceding
paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only such Persons, shall be entitled to consent to such
amendment, supplement, or waiver or to revoke any consent previously given,
whether or not such Persons continue to be Holders after such record date. No
such consent shall be valid or effective for more than 90 days after such record
date unless the consent of the requisite number of Holders has been
obtained.

 

After an
amendment, supplement, waiver or other action becomes effective, it shall bind
every Holder, unless it makes a change described in any of clauses (1) through
(9) of Section 8.02(b). In that case the amendment, supplement, waiver or other
action shall bind each Holder of a Note who has consented to it and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder’s Note.

 

	SECTION
      8.05.  	
      Notation
      on or Exchange of Notes.

 

If an
amendment, supplement, or waiver changes the terms of a Note, the Trustee (in
accordance with the specific written direction of the Issuer) shall request the
Holder of the Note (in accordance with the specific written direction of the
Issuer) to deliver it to the Trustee. In such case, the Trustee shall place an
appropriate notation on the Note about the changed terms and return it to the
Holder. Alternatively, if the Issuer or the Trustee so determines, the Issuer in
exchange for the Note shall issue, the Guarantors shall endorse, and the Trustee
shall authenticate a new Note that reflects the changed terms. Failure to make
the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

 

	SECTION
      8.06.  	
      Trustee
      To Sign Amendments, etc.

 

The
Trustee shall sign any amendment, supplement or waiver authorized pursuant to
this Article Eight if the amendment, supplement or waiver does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may, but need not, sign it. In signing or refusing to
sign such amendment, supplement or waiver the Trustee shall be entitled to
receive and, subject to Section 7.01, shall be fully protected in relying upon
an Officers’ Certificate and an Opinion of Counsel stating, in addition to the
matters required by Section 12.04, that such amendment, supplement or waiver is
authorized or permitted by this Indenture and is a legal, valid and binding
obligation of the Issuer and Guarantors, enforceable against the Issuer and
Guarantors in accordance with its terms (subject to customary
exceptions).

 

 

ARTICLE
NINE  

 

DISCHARGE
OF INDENTURE; DEFEASANCE

 

	SECTION
      9.01.  	
      Discharge
      of Indenture.

 

The
Issuer may terminate its obligations and the obligations of the Guarantors under
the Notes, the Guarantees and this Indenture, except the obligations referred to
in the last paragraph of this Section 9.01, if

 

(1)  all the
Notes that have been authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid and Notes for whose payment
money has been deposited in trust or segregated and held in trust by the Issuer
and thereafter repaid to the Issuer or discharged from this trust) have been
delivered to the Trustee for cancellation, or

 

(2)  (a) all
Notes not delivered to the Trustee for cancellation otherwise have become due
and payable or have been called for redemption pursuant to paragraph 6 of
the Notes, and the Issuer has irrevocably deposited or caused to be deposited
with the Trustee trust funds in trust in an amount of money sufficient to pay
and discharge the entire Indebtedness (including all principal and accrued
interest) on the Notes not theretofore delivered to the Trustee for
cancellation,

 

(b) the
Issuer has paid all sums payable by it under this Indenture,

 

(c) the
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Notes at maturity or on the date of
redemption, as the case may be, and

 

(d) the
Trustee, for the benefit of the Holders, has a valid, perfected, exclusive
security interest in this trust.

 

In
addition, the Issuer must deliver an Officers’ Certificate and an Opinion of
Counsel (as to legal matters) stating that all conditions precedent to
satisfaction and discharge have been complied with.

 

After
such delivery, the Trustee shall acknowledge in writing the discharge of the
Issuer’s and the Guarantors’ obligations under the Notes, the Guarantees and
this Indenture except for those surviving obligations specified
below.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Issuer
in Sections 7.07, 9.05 and 9.06 shall survive.

 

	SECTION
      9.02.  	
      Legal
      Defeasance.

 

The
Issuer may at its option, by Board Resolution of the Board of Directors of the
Issuer, be discharged from its obligations with respect to the Notes and the
Guarantors discharged from their obligations under the Guarantees on the date
the conditions set forth in Section 9.04 are satisfied (hereinafter,
“Legal
Defeasance”). For
this purpose, such Legal Defeasance means that the Issuer shall be deemed to
have paid and discharged the entire indebtedness represented by the Notes and to
have satisfied all its other obligations under such Notes and this Indenture
insofar as such Notes are concerned (and the Trustee, at the expense of the
Issuer, shall, subject to Section 9.06, execute instruments in form and
substance reasonably satisfactory to the Trustee and Issuer acknowledging the
same), except for the following which shall survive until otherwise terminated
or discharged hereunder: (A) the rights of Holders of outstanding Notes to
receive solely from the trust funds described in Section 9.04 and as more fully
set forth in such Section, payments in respect of the principal of, premium, if
any, and interest on such Notes when such payments are due, (B) the
Issuer’s obligations with respect to such Notes under Sections 2.03, 2.04,
2.05, 2.06, 2.07, 2.08, 2.11 and 4.19, (C) the rights, powers, trusts,
duties, and immunities of the Trustee hereunder (including claims of, or
payments to, the Trustee under or pursuant to Section 7.07) and (D) this
Article Nine. Subject to compliance with this Article Nine, the Issuer may
exercise its option under this Section 9.02 with respect to the Notes
notwithstanding the prior exercise of its option under Section 9.03 with respect
to the Notes.

 

	SECTION
      9.03.  	
      Covenant
      Defeasance.

 

At the
option of the Issuer, pursuant to a Board Resolution of the Board of Directors
of the Issuer, (x) the Issuer and the Guarantors shall be released from
their respective obligations under Sections 4.02 (except for obligations
mandated by the TIA), 4.06 through 4.17, inclusive, and 4.20 and clause (3) of
the first paragraph of Section 5.01 and (y) Sections 6.01(5) and (6)
shall no longer apply with respect to the outstanding Notes on and after the
date the conditions set forth in Section 9.04 are satisfied (hereinafter,
“Covenant
Defeasance”). For
this purpose, such Covenant Defeasance means that the Issuer and the Guarantors
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified Section or portion
thereof, whether directly or indirectly by reason of any reference elsewhere
herein to any such specified Section or portion thereof or by reason of any
reference in any such specified Section or portion thereof to any other
provision herein or in any other document, but the remainder of this Indenture
and the Notes shall be unaffected thereby.

 

	SECTION
      9.04.  	
      Conditions
      to Defeasance or Covenant Defeasance.

 

The
following shall be the conditions to application of Section 9.02 or Section 9.03
to the outstanding Notes:

 

(1)  the
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, U.S. legal tender, U.S. Government Obligations or a combination
thereof, in such amounts as will be sufficient (without reinvestment) in the
opinion of a nationally recognized firm of independent public accountants
selected by the Issuer, to pay the principal of and interest on the Notes on the
stated date for payment or on the redemption date of the principal or
installment of principal of or interest on the Notes, and the Trustee must have
a valid, perfected, exclusive security interest in such trust;

 

(2)  in the
case of Legal Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that:

 

(a)  the
Issuer has received from, or there has been published by the Internal Revenue
Service, a ruling, or

 

(b)  since the
date hereof, there has been a change in the applicable U.S. federal income tax
law,

 

in either
case to the effect that, and based thereon this Opinion of Counsel shall confirm
that, the Holders will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of the Legal Defeasance and will be subject to
U.S. federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not
occurred;

 

(3)  in the
case of Covenant Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of such Covenant Defeasance and will be
subject to U.S. federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if the Covenant Defeasance had not
occurred;

 

(4)  no
Default shall have occurred and be continuing on the date of such deposit (other
than a Default resulting from the borrowing of funds to be applied to such
deposit and the grant of any Lien securing such borrowing);

 

(5)  the Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under this Indenture or any other material agreement or
instrument to which the Issuer or any of its Subsidiaries is a party or by which
the Issuer or any of its Subsidiaries is bound;

 

(6)  the
Issuer shall have delivered to the Trustee an Officers’ Certificate stating that
the deposit was not made by it with the intent of preferring the Holders over
any other of its creditors or with the intent of defeating, hindering, delaying
or defrauding any other of its creditors or others; and

 

(7)  the
Issuer shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the conditions provided for in, in the
case of the Officers’ Certificate, clauses (1) through (6) and, in the case of
the Opinion of Counsel, clauses (1) (with respect to the validity and perfection
of the security interest), (2) and/or (3) and (5) of this paragraph have been
complied with.

 

If the
funds deposited with the Trustee to effect Covenant Defeasance are insufficient
to pay the principal of and interest on the Notes when due, then the Issuer’s
obligations and the obligations of Guarantors under this Indenture will be
revived and no such defeasance will be deemed to have occurred.

 

	SECTION
      9.05.  	
      Deposited
      Money and U.S. Government Obligations To Be Held in
      Trust; Other Miscellaneous Provisions.

 

All money
and U.S. Government Obligations (including the proceeds thereof) deposited with
the Trustee pursuant to Section 9.04 in respect of the outstanding Notes shall
be held in trust and applied by the Trustee, in accordance with the provisions
of such Notes and this Indenture, to the payment, either directly or through any
Paying Agent, to the Holders of such Notes, of all sums due and to become due
thereon in respect of principal, premium, if any, and accrued interest, but such
money need not be segregated from other funds except to the extent required by
law.

 

The
Issuer and the Guarantors shall (on a joint and several basis) pay and indemnify
the Trustee against any tax, fee or other charge imposed on or assessed against
the U.S. Government Obligations deposited pursuant to Section 9.04 or the
principal, premium, if any, and interest received in respect thereof other than
any such tax, fee or other charge which by law is for the account of the Holders
of the outstanding Notes.

 

Anything
in this Article Nine to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuer from time to time any money or U.S. Government
Obligations held by it as provided in Section 9.04 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

 

	SECTION
      9.06.  	
      Reinstatement.

 

If the
Trustee or Paying Agent is unable to apply any money or U.S. Government
Obligations in accordance with Section 9.01, 9.02 or 9.03 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Issuer’s and each Guarantor’s obligations under this Indenture, the Notes and
the Guarantees shall be revived and reinstated as though no deposit had occurred
pursuant to this Article Nine until such time as the Trustee or Paying
Agent is permitted to apply all such money or U.S. Government Obligations in
accordance with Section 9.01; provided that if
the Issuer or the Guarantors have made any payment of principal of, premium, if
any, or accrued interest on any Notes because of the reinstatement of their
obligations, the Issuer or the Guarantors, as the case may be, shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.

 

	SECTION
      9.07.  	
      Moneys
      Held by Paying Agent.

 

In
connection with the satisfaction and discharge of this Indenture, all moneys
then held by any Paying Agent under the provisions of this Indenture shall, upon
written demand of the Issuer, be paid to the Trustee, or if sufficient moneys
have been deposited pursuant to Section 9.04, to the Issuer (or, if such moneys
had been deposited by the Guarantors, to such Guarantors), and thereupon such
Paying Agent shall be released from all further liability with respect to such
moneys.

 

	SECTION
      9.08.  	
      Moneys
      Held by Trustee.

 

Subject
to applicable law, any moneys deposited with the Trustee or any Paying Agent or
then held by the Issuer or the Guarantors in trust for the payment of the
principal of, or premium, if any, or interest on any Note that are not applied
but remain unclaimed by the Holder of such Note for two years after the date
upon which the principal of, or premium, if any, or interest on such Note shall
have respectively become due and payable shall be repaid to the Issuer (or, if
appropriate, the Guarantors), or if such moneys are then held by the Issuer or
the Guarantors in trust, such moneys shall be released from such trust; and the
Holder of such Note entitled to receive such payment shall thereafter, as an
unsecured general creditor, look only to the Issuer and the Guarantors for the
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money shall thereupon cease; provided, that
the Trustee or any such Paying Agent, before being required to make any such
repayment, may, at the expense of the Issuer and the Guarantors, either mail to
each Holder affected, at the address shown in the register of the Notes
maintained by the Registrar pursuant to Section 2.03, or cause to be
published once a week for two successive weeks, in a newspaper published in the
English language, customarily published each Business Day and of general
circulation in the City of New York, New York, a notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such mailing or publication, any unclaimed balance of
such moneys then remaining will be repaid to the Issuer. After payment to the
Issuer or the Guarantors or the release of any money held in trust by the Issuer
or any Guarantors, as the case may be, Holders entitled to the money must look
only to the Issuer and the Guarantors for payment as general creditors unless
applicable abandoned property law designates another Person.

 

 

ARTICLE
TEN  

 

GUARANTEE
OF NOTES

 

	SECTION
      10.01.  	
      Guarantee.

 

Subject
to the provisions of this Article Ten, each Guarantor, by execution of this
Indenture, jointly and severally, unconditionally guarantees to each Holder
(i) the due and punctual payment of the principal of and interest on each
Note, when and as the same shall become due and payable, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the
overdue principal of and interest on the Notes, to the extent lawful, and the
due and punctual payment of all other Obligations and due and punctual
performance of all obligations of the Issuer to the Holders or the Trustee all
in accordance with the terms of such Note, this Indenture and the Registration
Rights Agreement, and (ii) in the case of any extension of time of payment
or renewal of any Notes or any of such other Obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, at stated maturity, by acceleration or otherwise. Each
Guarantor, by execution of this Indenture, agrees that its obligations hereunder
shall be absolute and unconditional, irrespective of, and shall be unaffected
by, any invalidity, irregularity or unenforceability of any such Note or this
Indenture, any failure to enforce the provisions of any such Note, this
Indenture or the Registration Rights Agreement, any waiver, modification or
indulgence granted to the Issuer with respect thereto by the Holder of such
Note, or any other circumstances which may otherwise constitute a legal or
equitable discharge of a surety or such Guarantor.

 

Each
Guarantor hereby waives diligence, presentment, demand for payment, filing of
claims with a court in the event of merger or bankruptcy of the Issuer, any
right to require a proceeding first against the Issuer, protest or notice with
respect to any such Note or the Indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged as to any
such Note except by payment in full of the principal thereof and interest
thereon. Each Guarantor hereby agrees that, as between such Guarantor, on the
one hand, and the Holders and the Trustee, on the other hand, (i) the
maturity of the Obligations guaranteed hereby may be accelerated as provided in
Article Six for the purposes of this Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Obligations guaranteed hereby, and (ii) in the event of any declaration of
acceleration of such Obligations as provided in Article Six, such
Obligations (whether or not due and payable) shall forthwith become due and
payable by each Guarantor for the purpose of this Guarantee.

 

	SECTION
      10.02.  	
      Execution
      and Delivery of Guarantee.

 

To
further evidence the Guarantee set forth in Section 10.01, each Guarantor hereby
agrees that a notation of such Guarantee, substantially in the form included in
Exhibit G hereto,
shall be endorsed on each Note authenticated and delivered by the Trustee and
such Guarantee shall be executed by either manual or facsimile signature of an
Officer or an Officer of a general partner or member, as the case may be, of
each Guarantor. The validity and enforceability of any Guarantee shall not be
affected by the fact that it is not affixed to any particular Note.

 

Each of
the Guarantors hereby agrees that its Guarantee set forth in Section 10.01 shall
remain in full force and effect notwithstanding any failure to endorse on each
Note a notation of such Guarantee.

 

If an
officer of a Guarantor, or an officer of a general partner or member of a
Guarantor, whose signature is on this Indenture or a Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which such
Guarantee is endorsed or at any time thereafter, such Guarantor’s Guarantee of
such Note shall be valid nevertheless.

 

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

 

	SECTION
      10.03.  	
      Limitation
      of Guarantee.

 

The
obligations of each Guarantor under its Guarantee are limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Guarantor (including, without limitation, any guarantees
under the Credit Facilities permitted under clause (1) of Section 4.06) and
after giving effect to any collections from or payments made by or on behalf of
any other Guarantor in respect of the obligations of such other Guarantor under
its Guarantee or pursuant to its contribution obligations under this Indenture,
result in the obligations of such Guarantor under its Guarantee not constituting
a fraudulent conveyance or fraudulent transfer under federal or state law. Each
Guarantor that makes a payment or distribution under its Guarantee shall be
entitled to a contribution from each other Guarantor in a pro rata amount
based on the Adjusted Net Assets of each Guarantor.

 

	SECTION
      10.04.  	
      Release
      of Guarantor.

 

A
Guarantor shall be released from all of its obligations under its Guarantee
if:

 

(i)  all of
the assets of such Guarantor have been sold or otherwise disposed of in a
transaction in compliance with the terms of this Indenture (including Sections
4.09, 4.20 and 5.01);

 

(ii)  all of
the Equity Interests held by the Issuer and the Restricted Subsidiaries of such
Guarantor have been sold or otherwise disposed of in a transaction in compliance
with the terms of this Indenture (including Sections 4.20 and
5.01);

 

(iii)  the
Guarantor is designated an Unrestricted Subsidiary in compliance with the terms
of this Indenture (including Section 4.15);

 

and in
each such case, the Issuer has delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to such transactions have been complied with and that such
release is authorized and permitted hereunder.

 

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

 

	SECTION
      10.05.  	
      Waiver
      of Subrogation.

 

Each
Guarantor hereby irrevocably waives any claim or other rights which it may now
or hereafter acquire against the Issuer that arise from the existence, payment,
performance or enforcement of such Guarantor’s obligations under its Guarantee
and this Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right to participate in any
claim or remedy of any Holder of Notes against the Issuer, whether or not such
claim, remedy or right arises in equity, or under contract, statute or common
law, including, without limitation, the right to take or receive from the
Issuer, directly or indirectly, in cash or other property or by set-off or in
any other manner, payment or Note on account of such claim or other rights. If
any amount shall be paid to any Guarantor in violation of the preceding sentence
and the Notes shall not have been paid in full, such amount shall have been
deemed to have been paid to such Guarantor for the benefit of, and held in trust
for the benefit of, the Holders, and shall forthwith be paid to the Trustee for
the benefit of such Holders to be credited and applied upon the Notes, whether
matured or unmatured, in accordance with the terms of this Indenture. Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the waiver
set forth in this Section 10.05 is knowingly made in contemplation of such
benefits.

 

 

ARTICLE
ELEVEN  

 

[INTENTIONALLY
OMITTED]

 

 

ARTICLE
TWELVE  

 

MISCELLANEOUS

 

	SECTION
      12.01.  	
      Trust
      Indenture Act Controls.

 

If any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
required provision shall control. If any provision of this Indenture modifies
any TIA provision that may be so modified, such TIA provision shall be deemed to
apply to this Indenture as so modified. If any provision of this Indenture
excludes any TIA provision that may be so excluded, such TIA provision shall be
excluded from this Indenture.

 

The
provisions of TIA §§ 310 through 317 that impose duties on any Person
(including the provisions automatically deemed included unless expressly
excluded by this Indenture) are a part of and govern this Indenture, whether or
not physically contained herein.

 

	SECTION
      12.02.  	
      Notices.

 

Except
for notice or communications to Holders, any notice or communication shall be
given in writing and delivered in person, sent by facsimile, delivered by
commercial courier service or mailed by first-class mail, postage prepaid,
addressed as follows:

 

If to the
Issuer or any Guarantor:

 

 

M/I
HOMES, INC.

3 Easton
Oval

Suite 500

Columbus,
Ohio 43219

 

Attention:
General Counsel

 

Fax
Number: (614) 418-8080

 

with, in
the case of any notice furnished pursuant to Article Six, a copy
to:

 

VORYS,
SATER, SEYMOUR AND PEASE LLP

52 East
Gay Street

Columbus,
Ohio 43215

 

Attention:
Ronald A. Robins, Jr.

 

Fax
Number: (614) 719-4926

 

If to the
Trustee:

 

U.S. BANK
NATIONAL ASSOCIATION

175 S.
Third Street, 4th Floor

Columbus,
Ohio 43215

 

Attention:
Corporate Trust Department

 

Fax
Number: (614) 232-8098

 

Such
notices or communications shall be effective when received and shall be
sufficiently given if so given within the time prescribed in this
Indenture.

 

The
Issuer, the Guarantors or the Trustee by written notice to the others may
designate additional or different addresses for subsequent notices or
communications.

 

Any
notice or communication mailed to a Holder shall be mailed to him by first-class
mail, postage prepaid, at his address shown on the register kept by the
Registrar.

 

Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders. If a notice or
communication to a Holder is mailed in the manner provided above, it shall be
deemed duly given, whether or not the addressee receives it.

 

In case
by reason of the suspension of regular mail service, or by reason of any other
cause, it shall be impossible to mail any notice as required by this Indenture,
then such method of notification as shall be made with the approval of the
Trustee shall constitute a sufficient mailing of such notice.

 

	SECTION
      12.03.  	
      Communications
      by Holders with Other Holders.

 

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

 

	SECTION
      12.04.  	
      Certificate
      and Opinion as to Conditions Precedent.

 

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

 

(1)  an
Officers’ Certificate (which shall include the statements set forth in Section
12.05) stating that, in the opinion of the signers, all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with; and

 

(2)  an
Opinion of Counsel (which shall include the statements set forth in Section
12.05) stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

 

	SECTION
      12.05.  	
      Statements
      Required in Certificate and Opinion.

 

Each
certificate and opinion with respect to compliance by or on behalf of the Issuer
or any Guarantor with a condition or covenant provided for in this Indenture
shall include:

 

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

 

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

 

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

 

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

 

	SECTION
      12.06.  	
      Rules
      by Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or meetings of Holders. The
Registrar and Paying Agent may make reasonable rules for their
functions.

 

	SECTION
      12.07.  	
      Business
      Days; Legal Holidays.

 

A
“Business
Day” is a
day that is not a Legal Holiday. A “Legal
Holiday” is a
Saturday, a Sunday or other day on which (i) commercial banks in the City
of New York are authorized or required by law to close or (ii) the New York
Stock Exchange is not open for trading. If a payment date is a Legal Holiday at
a place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

 

	SECTION
      12.08.  	
      Governing
      Law.

 

This
Indenture and the Notes shall be governed by and construed in accordance with
the laws of the State of New York, as applied to contracts made and performed
within the State of New York.

 

	SECTION
      12.09.  	
      No
      Adverse Interpretation of Other Agreements.

 

This
Indenture may not be used to interpret another indenture, loan, security or debt
agreement of the Issuer or any Subsidiary thereof. No such indenture, loan,
security or debt agreement may be used to interpret this Indenture.

 

	SECTION
      12.10.  	
      No
      Recourse Against Others.

 

No
recourse for the payment of the principal of or premium, if any, or interest,
including Registration Default Damages, on any of the Notes, or for any claim
based thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Issuer or any Guarantor in this
Indenture or in any supplemental indenture, or in any of the Notes, or because
of the creation of any Indebtedness represented thereby, shall be had against
any stockholder, officer, director or employee, as such, past, present or
future, of the Issuer or of any successor corporation or against the property or
assets of any such stockholder, officer, employee or director, either directly
or through the Issuer or any Guarantor, or any successor corporation thereof,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the Notes are solely obligations of the
Issuer and the Guarantors, and that no such personal liability whatever shall
attach to, or is or shall be incurred by, any stockholder, officer, employee or
director of the Issuer or any Guarantor, or any successor corporation thereof,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or the Notes or implied therefrom, and that any and all such personal liability
of, and any and all claims against every stockholder, officer, employee and
director, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issuance of the
Notes. It is understood that this limitation on recourse is made expressly for
the benefit of any such shareholder, employee, officer or director and may be
enforced by any of them.

 

	SECTION
      12.11.  	
      Successors.

 

All
agreements of the Issuer and the Guarantors in this Indenture and the Notes
shall bind their respective successors. All agreements of the Trustee, any
additional trustee and any Paying Agents in this Indenture shall bind its
successor.

 

	SECTION
      12.12.  	
      Multiple
      Counterparts.

 

The
parties may sign multiple counterparts of this Indenture. Each signed
counterpart shall be deemed an original, but all of them together represent one
and the same agreement.

 

	SECTION
      12.13.  	
      Table
      of Contents, Headings, etc.

 

The table
of contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.

 

	SECTION
      12.14.  	
      Separability.

 

Each
provision of this Indenture shall be considered separable and if for any reason
any provision which is not essential to the effectuation of the basic purpose of
this Indenture or the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

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

 

 

M/I
HOMES, INC.

 

By:   

 

 

Name: 

 

 

Title: 

 

 

M/I
FINANCIAL CORP.

 

 

By: 

Name:

Title:
 

 

MHO,
LLC

 

 

By: MHO
Holdings, LLC, its Sole Member

 

By:  

Name:

Title:

 

M/I HOMES
SERVICES CORP.

 

By:  

Name:

Title:

 

M/I
PROPERTIES, LLC

NORTHEAST
OFFICE VENTURE, LLC

M/I HOMES
FIRST INDIANA LLC 

M/I HOMES
SECOND INDIANA LLC

M/I HOMES
OF FLORIDA, LLC

M/I HOMES
OF CHARLOTTE, LLC

M/I HOMES
OF RALEIGH, LLC

M/I HOMES
OF DC, LLC

M/I HOMES
OF CINCINNATI, LLC

M/I HOMES
OF CENTRAL OHIO, LLC

 

By: M/I
Homes, Inc., its Sole Member

 

 

By:  

Name:

Title:

 

M/I HOMES
OF INDIANA, L.P.

 

 

By: M/I
Second Indiana LLC, its General Partner

 

 

By:  

Name:

Title:

M/I HOMES
OF TAMPA, LLC

M/I HOMES
OF ORLANDO, LLC

M/I HOMES
OF WEST PALM BEACH, LLC

MHO
HOLDINGS, LLC

 

By: M/I
Homes of Florida, LLC, its Sole Member

 

 

By:

Name:

Title:

THE
FIELDS AT PERRY HALL, LLC

WILSON
FARM, LLC

 

By: M/I
Homes of DC, LLC, its Sole Member

 

 

By:  

Name:

Title:

CORE
VILLAGE COMMONS, LLC

 

By: M/I
Homes of Central Ohio, LLC, its Sole Member

 

 

By:  

Name:

Title:

 

U.S. BANK
NATIONAL ASSOCIATION, as Trustee

 

By:   

Name: 

Title: 

 

 

By: 

Name: 

   
Title: 

 

 

EXHIBIT
A

 

CUSIP
            

 

M/I
HOMES, INC.

 

No.                                                                      $

 

67⁄8%
SENIOR NOTE DUE 2012

 

M/I
HOMES, INC., an Ohio corporation (the “Issuer”), for value received, promises to
pay to CEDE & CO. or registered assigns the principal sum of
$            
dollars on April 1, 2012.

 

Interest
Payment Dates: April 1 and October 1.

 

Record
Dates: March 15 and September 15.

 

Reference
is made to the further provisions of this Note contained herein, which will for
all purposes have the same effect as if set forth at this place.

 

 

A-1

IN
WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by
facsimile by its duly authorized officers.

 

 

M/I
HOMES, INC.

 

By: 

Name: 

Title: 

 

 

By:   

Name: 

Title: 

 

Dated:

 

Certificate
of Authentication

 

This is
one of the 67⁄8% Senior Notes due 2012 referred to in the within-mentioned
Indenture.

 

 

U.S. BANK
NATIONAL ASSOCIATION, as Trustee

 

By:   

 

Dated:

 

 

A-2

[FORM OF
REVERSE OF NOTE]

 

M/I
HOMES, INC.

 

67⁄8%
SENIOR NOTE DUE 2012

 

1. Interest. M/I
HOMES, INC., an Ohio corporation (the “Issuer”), promises to pay, until the
principal hereof is paid or made available for payment, interest on the
principal amount set forth on the face hereof at a rate of 67⁄8% per annum.
Interest hereon will accrue from and including the most recent date to which
interest has been paid or, if no interest has been paid, from and including
[insert
applicable issue date] to but
excluding the date on which interest is paid. Interest shall be payable in
arrears on each April 1 and October 1 commencing on [insert
first payment date].
Interest will be computed on the basis of a 360-day year of twelve 30-day
months. The Issuer shall pay interest on overdue principal and on overdue
interest (to the full extent permitted by law) at a rate of 67⁄8% per
annum.

 

2. Method
of Payment. The
Issuer will pay interest hereon (except defaulted interest) to the Persons who
are registered Holders at the close of business on March 15 or
September 15 next preceding the interest payment date (whether or not a
Business Day). Holders must surrender Notes to a Paying Agent to collect
principal payments. The Issuer will pay principal and interest in money of the
United States of America that at the time of payment is legal tender for payment
of public and private debts. Interest may be paid by check mailed to the Holder
entitled thereto at the address indicated on the register maintained by the
Registrar for the Notes.

 

3. Paying
Agent and Registrar.
Initially, U.S. Bank National Association (the “Trustee”) will act as a Paying
Agent and Registrar. The Issuer may change any Paying Agent or Registrar without
notice. Neither the Issuer nor any of its Affiliates may act as Paying Agent or
Registrar.

 

4. Indenture. The
Issuer issued the Notes under an Indenture dated as of March 24, 2005 (the
“Indenture”) among the Issuer, the Guarantors (as defined in the Indenture) and
the Trustee. This is one of an issue of Notes of the Issuer issued, or to be
issued, under the Indenture. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended from time to
time. The Notes are subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of them. Capitalized and certain other
terms used herein and not otherwise defined have the meanings set forth in the
Indenture.

 

5. [Intentionally
Omitted]

 

6. Optional
Redemption. (a) The
Issuer may redeem the Notes at any time, in whole or in part, upon not less than
30 nor more than 60 days’ notice, at a redemption price equal to the greater
of:

 

(i)  100% of
the principal amount of the Notes to be redeemed; and 

 

A-3

(ii)  the sum
of the present values of (x) the scheduled principal payment on the Notes at
April 1, 2012 and (y) the remaining scheduled payments of interest from the
Redemption Date to April 1, 2012, but excluding accrued and unpaid interest
to the Redemption Date, discounted to the Redemption Date at the Treasury Rate
plus 50 basis points,

 

plus
accrued and unpaid interest thereon, if any, to the Redemption
Date.

 

(b) Notwithstanding
the foregoing, at any time prior to April 1, 2008, the Issuer may redeem up
to 35% of the aggregate principal amount of the Notes with the net cash proceeds
of one or more Qualified Equity Offerings at a redemption price equal to
106.875% of the principal amount of the Notes to be redeemed, plus accrued
and unpaid interest thereon, if any, to the Redemption Date; provided that
(1) at least 65% of the aggregate principal amount of Notes issued under
the Indenture remains outstanding immediately after the occurrence of such
redemption and (2) the redemption occurs within 90 days of the date of the
closing of any such Qualified Equity Offering.

 

(c) In the
event of a redemption of fewer than all of the Notes, the Trustee shall select
the Notes to be redeemed in compliance with the requirements of the principal
national securities exchange, if any, while such Notes are listed, or if such
Notes are not then listed on a national securities exchange, on a pro rata basis,
by lot or in such other manner as the Trustee shall deem fair and equitable. The
Notes will be redeemable in whole or in part upon not less than 30 nor more than
60 days’ prior written notice, mailed by first class mail to a Holder’s last
address as it shall appear on the register maintained by the Registrar of the
Notes. On and after any redemption date, interest will cease to accrue on the
Notes or portions thereof called for redemption unless the Issuer shall fail to
redeem any such Note. 

 

7. Notice
of Redemption. Notice
of redemption will be mailed by first-class mail at least 30 days but not more
than 60 days before the Redemption Date to each Holder of Notes to be redeemed
at his registered address. On and after the Redemption Date, unless the Issuer
defaults in making the redemption payment, interest ceases to accrue on Notes or
portions thereof called for redemption.

 

8. Offers
To Purchase. The
Indenture provides that upon the occurrence of a Change of Control or an Asset
Sale and subject to further limitations contained therein, the Issuer shall make
an offer to purchase outstanding Notes in accordance with the procedures set
forth in the Indenture.

 

9. Registration
Rights.
Pursuant to a Registration Rights Agreement among the Issuer, the Guarantors and
the Initial Purchasers, the Issuer will be obligated to consummate an exchange
offer pursuant to which the Holder of this Note shall have the right to exchange
this Note for notes of a separate series issued under the Indenture (or a trust
indenture substantially identical to the Indenture in accordance with the terms
of the Registration Rights Agreement) which have been registered under the
Securities Act, in like principal amount and having substantially identical
terms as the Notes. The Holders shall be entitled to receive certain additional
interest payments in the event such exchange offer is not consummated and upon
certain other conditions, all pursuant to and in accordance with the terms of
the Registration Rights Agreement.

 

A-4

10. Denominations,
Transfer, Exchange. The
Notes are in registered form without coupons in denominations of $1,000 and
integral multiples of $1,000. A Holder may transfer or exchange Notes in
accordance with the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay to
it any taxes and fees required by law or permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Notes or portion of
a Note selected for redemption, or register the transfer of or exchange any
Notes for a period of 15 days before a mailing of notice of
redemption.

 

11. Persons
Deemed Owners. The
registered Holder of this Note may be treated as the owner of this Note for all
purposes.

 

12. Unclaimed
Money. If
money for the payment of principal or interest remains unclaimed for two years,
the Trustee will pay the money back to the Issuer at its written request. After
that, Holders entitled to the money must look to the Issuer for payment as
general creditors unless an “abandoned property” law designates another
Person.

 

13. Amendment,
Supplement, Waiver, Etc. The
Issuer, the Guarantors and the Trustee (if a party thereto) may, without the
consent of the Holders of any outstanding Notes, amend, waive or supplement the
Indenture or the Notes for certain specified purposes, including, among other
things, curing ambiguities, defects or inconsistencies, maintaining the
qualification of the Indenture under the Trust Indenture Act of 1939, as
amended, and making any change that does not materially and adversely affect the
rights of any Holder. Other amendments and modifications of the Indenture or the
Notes may be made by the Issuer, the Guarantors and the Trustee with the consent
of the Holders of not less than a majority of the aggregate principal amount of
the outstanding Notes, subject to certain exceptions requiring the consent of
the Holders of the particular Notes to be affected.

 

14. Successor
Corporation. When a
successor corporation assumes all the obligations of its predecessor under the
Notes and the Indenture and the transaction complies with the terms of Article
Five of the Indenture, the predecessor corporation will, except as provided in
Article Five, be released from those obligations.

 

15. Defaults
and Remedies. Events
of Default are set forth in the Indenture. Subject to certain limitations in the
Indenture, if an Event of Default (other than an Event of Default specified in
Section 6.01(7) or (8) with respect to the Issuer) occurs and is continuing, the
Trustee or the Holders of not less than 25% in aggregate principal amount of the
outstanding Notes may, by written notice to the Trustee and the Issuer, and the
Trustee upon the request of the Holders of not less than 25% in aggregate
principal amount of the outstanding Notes shall, declare all principal of and
accrued interest on all Notes to be immediately due and payable and such amounts
shall become immediately due and payable. If an Event of Default specified in
Section 6.01(7) or (8) occurs with respect to the Issuer, the principal amount
of and interest on, all Notes shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder. Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Notes. Subject to
certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing default (except a
default in payment of principal, premium, if any, or interest on the Notes or a
default in the observance or performance of any of the obligations of the Issuer
under Article Five of the Indenture) if it determines that withholding notice is
in their best interests.

 

A-5

16. Trustee
Dealings with The Issuer. The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Issuer or its Affiliates, and may
otherwise deal with the Issuer or its Affiliates, as if it were not
Trustee.

 

17. Discharge. The
Issuer’s obligations pursuant to the Indenture will be discharged, except for
obligations pursuant to certain sections thereof, subject to the terms of the
Indenture, upon the payment of all the Notes or upon the irrevocable deposit
with the Trustee of United States dollars or U.S. Government Obligations
sufficient to pay when due principal of and interest on the Notes to maturity or
redemption, as the case may be.

 

18. Guarantees. The
Note will be entitled to the benefits of certain Guarantees made for the benefit
of the Holders. Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations thereunder of
the Guarantors, the Trustee and the Holders.

 

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

 

20. Governing
Law. This
Note shall be governed by and construed in accordance with the laws of the State
of New York, as applied to contracts made and performed within the State of New
York. The Trustee, the Issuer, the Guarantor and the Holders agree to submit to
the jurisdiction of the courts of the State of New York in any action or
proceeding arising out of or relating to the Indenture or the
Notes.

 

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

 

The
Issuer will furnish to any Holder upon written request and without charge a copy
of the Indenture. Requests may be made to:

 

M/I
HOMES, INC.

3 Easton
Oval

Suite
500

Columbus,
Ohio 43219

Attention:
General Counsel

 

A-6

ASSIGNMENT

 

I or we
assign and transfer this Note to:

 

(Insert
assignee’s social security or tax I.D. number)

 

 

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

 

and
irrevocably appoint:

 

 

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

 

Date:                                 Your
Signature:                        

                                                (Sign exactly as your
name 

                                       
appears on the other side of 

                                                this
Note)

 

Signature
Guarantee:_______________________

 

SIGNATURE
GUARANTEE

 

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

 

 

A-7

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you
want to elect to have all or any part of this Note purchased by the Issuer
pursuant to Section 4.09 or Section 4.20 of the Indenture, check the appropriate
box:

 

        o 
Section 4.09                  o  Section 4.20

 

If you
want to have only part of the Note purchased by the Issuer pursuant to
Section 4.09 or Section 4.20 of the Indenture, state the amount you
elect to have purchased:

 

$                  

(multiple
of $1,000)

 

Date:                 

 

Your
Signature:                                  

(Sign
exactly as your name appears on the face of this Note)

                

Signature
Guaranteed

 

SIGNATURE
GUARANTEE

 

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

 

 

A-8

EXHIBIT
B

 

[FORM OF
LEGEND FOR 144A NOTES AND OTHER NOTES

 

THAT ARE
RESTRICTED NOTES]

 

The Note
(or its predecessor) evidenced hereby was originally issued in a transaction
exempt from registration under Section 5 of the United States Securities
Act of 1933, and the Note evidenced hereby may not be offered, sold or otherwise
transferred in the absence of such registration or an applicable exemption
therefrom. Each purchaser of the Note evidenced hereby is hereby notified that
the seller may be relying on the exemption from the provisions of Section 5
of the Securities Act provided by Rule 144A thereunder or another exemption
under the Securities Act. The holder of the Note evidenced hereby agrees for the
benefit of M/I Homes, Inc. that (A) such Note may be resold, pledged or
otherwise transferred only (1)(a) to a person who the seller reasonably believes
is a qualified institutional buyer (as defined in Rule 144A under the
Securities Act), purchasing for its own account in a transaction meeting the
requirements of Rule 144A under the Securities Act, (b) in a
transaction meeting the requirements of Rule 144 of the Securities Act,
(c) outside the United States to a foreign person in a transaction meeting
the requirements of Rule 904 of Regulation S under the Securities Act,
(d) to an “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act (an “Institutional Accredited
Investor”) that is purchasing at least $100,000 of Notes for its own account or
for the account of an Institutional Accredited Investor (and based upon an
opinion of counsel if M/I Homes, Inc. so requests) or (e) in accordance
with another exemption from the registration requirements of the Securities Act
provided that in the case of a transfer under clause (e) such transfer is
subject to the receipt by the Trustee (and M/I Homes, Inc., if it so requests)
of a certification of the Transferor and an opinion of counsel to the effect
that such transfer is in compliance with the Securities Act, (2) to M/I
Homes, Inc. or any of its subsidiaries or (3) under an effective
registration statement under the Securities Act and, in each case, in accordance
with any applicable securities laws of any state of the United States or any
other applicable jurisdiction and the indenture governing the Notes and
(B) the holder will, and each subsequent holder is required to, notify any
purchaser from it of the Note evidenced hereby of the resale restrictions set
forth in (A) above. If any resale or other transfer of any Note is proposed to
be made under clause (A)(1)(d) above while these transfer restrictions are
in force then the transferor shall deliver a letter from the transferee to M/I
Homes, Inc. and the Trustee which shall provide, among other things, that the
transferee is an Institutional Accredited Investor and that it is acquiring the
Securities for investment purposes and not for distribution in violation of the
Securities Act.

 

 

B-

[FORM OF
ASSIGNMENT FOR 144A NOTES AND OTHER NOTES

 

THAT ARE
RESTRICTED NOTES]

 

I or we
assign and transfer this Note to:

 

(Insert
assignee’s social security or tax I.D. number)

 

 

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

 

and
irrevocably appoint:

 

 

 

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

 

[Check
One]

 

[ ]
(a)this Note
is being transferred in compliance with the exemption from registration under
the Securities Act provided by Rule 144A thereunder.

 

or

 

[ ]
(b)this Note
is being transferred other than in accordance with (a) above and documents are
being furnished which comply with the conditions of transfer set forth in this
Note and the Indenture.

 

If none
of the foregoing boxes is checked, the Trustee or Registrar shall not be
obligated to register this Note in the name of any person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Sections 2.16 and 2.17 of the Indenture shall have been
satisfied.

 

Date:                                 Your
Signature:                                    

                                                           
 (Sign exactly as your name appears on the face of this Note)

 

Signature
Guarantee:                                     

 

SIGNATURE
GUARANTEE

 

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

 

 

B-2

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

 

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

 

Dated:                                                                 

                                      NOTICE: To be
executed by an executive officer

 

B-3

EXHIBIT
C

 

[FORM OF
LEGEND FOR REGULATION S NOTE]

 

This Note
has not been registered under the U.S. Securities Act of 1933, as amended (the
“Act”), and, unless so registered, may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. Persons unless registered
under the Act or except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Act.

 

 

C-1

[FORM OF
ASSIGNMENT FOR REGULATION S NOTE]

 

I or we
assign and transfer this Note to:

 

(Insert
assignee’s social security or tax I.D. number)

 

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

 

and
irrevocably appoint:

 

 

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

 

[Check
One]

 

[ ]
(a)this Note
is being transferred in compliance with the exemption from registration under
the Securities Act provided by Rule 144A thereunder.

 

or

 

[ ]
(b)this Note
is being transferred other than in accordance with (a) above and documents are
being furnished which comply with the conditions of transfer set forth in this
Note and the Indenture.

 

If none
of the foregoing boxes is checked, the Trustee or Registrar shall not be
obligated to register this Note in the name of any person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Sections 2.16 and 2.17 of the Indenture shall have been
satisfied.

 

Date:                                Your
Signature:                                    

        
(Sign exactly as your name appears on the face of this Note)

 

Signature
Guarantee:                                         

 

SIGNATURE
GUARANTEE

 

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

 

 

C-2

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

 

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

 

Dated:

NOTICE:
To be executed by an executive officer

 

C-3

EXHIBIT
D

 

[FORM OF
LEGEND FOR GLOBAL NOTE]

 

Any
Global Note authenticated and delivered hereunder shall bear a legend (which
would be in addition to any other legends required in the case of a Restricted
Note) in substantially the following form:

 

This Note
is a Global Note within the meaning of the indenture hereinafter referred to and
is registered in the name of a depository or a nominee of a depository. This
Note is not exchangeable for Notes registered in the name of a person other than
the depository or its nominee except in the limited circumstances described in
the indenture, and no transfer of this Note (other than a transfer of this Note
as a whole by the depository to a nominee of the depository or by a nominee of
the depository to the depository or another nominee of the depository) may be
registered except in the limited circumstances described in the
Indenture.

 

Unless
this certificate is presented by an authorized representative of the Depository
Trust Company (a New York corporation) (“DTC”) to the issuer or its agent for
registration of transfer, exchange, or payment, and any certificate issued is
registered in the name of CEDE & CO. or in such other name as it requested
by an authorized representative of DTC (and any payment is made to CEDE &
CO. or 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.

 

D-1

EXHIBIT
E

 

Form of
Certificate To Be

Delivered
in Connection with

Transfers
to Non-QIB Accredited Investors

 

U.S. Bank
National Association

M/I
Homes, Inc.

c/o U.S.
Bank National Association

175 S.
Third Street, 4th Floor

Columbus,
Ohio 43215

 

Attention:
Corporate Trust Department

 

Ladies
and Gentlemen:

 

In
connection with our proposed purchase of 67⁄8% Senior Notes due 2012 (the “Notes”)
of M/I Homes, Inc., an Ohio corporation (the “Issuer”), we confirm
that:

 

1. We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of
March 24, 2005 relating to the Notes and we agree to be bound by, and not
to resell, pledge or otherwise transfer the Notes except in compliance with,
such restrictions and conditions and the Securities Act of 1933, as amended (the
“Securities Act”).

 

2. We
understand that the Notes have not been registered under the Securities Act or
any other applicable securities laws, have not been and will not be qualified
for sale under the securities laws of any non-U.S. jurisdiction and that the
Notes may not be offered, sold, pledged or otherwise transferred except as
permitted in the following sentence. We agree, on our own behalf and on behalf
of any accounts for which we are acting as hereinafter stated, that if we should
sell any Notes, we will do so only (i) to the Issuer or any subsidiary thereof,
(ii) in accordance with Rule 144A under the Securities Act to a “qualified
institutional buyer” (as defined in Rule 144A), (iii) to an institutional
“accredited investor” (as defined below) that, prior to such transfer, furnishes
(or has furnished on its behalf by a U.S. broker-dealer) to you a signed letter
containing certain representations and agreements relating to the restrictions
on transfer of the Notes, (iv) outside the United States to persons other
than U.S. persons in offshore transactions meeting the requirements of Rule 904
of Regulation S under the Securities Act, (v) pursuant to the exemption form
registration provided by Rule 144 under the Securities Act (if applicable) or
(vi) pursuant to an effective registration statement, and we further agree
to provide to any person purchasing any of the Notes from us a notice advising
such purchaser that resales of the Notes are restricted as stated
herein.

 

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

 

E-1

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

 

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

 

6. We are
not acquiring the Notes with a view toward the distribution thereof in a
transaction that would violate the Securities Act or the securities laws of any
state of the United States or any other applicable jurisdiction.

 

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

 

 

Very
truly yours,

 

[Name of
Transferee]

 

By: 

Name: 

Title: 

 

Date:
_______________________

 

 

E-2

EXHIBIT
F

 

Form of
Certificate To Be Delivered

in
Connection with Transfers

      Pursuant
to Regulation S      

 

U.S. Bank
National Association

M/I
Homes, Inc.

c/o U.S.
Bank National Association

175 S.
Third Street, 4th Floor

Columbus,
Ohio 43215

 

Attention:
Corporate Trust Department

 

Re: M/I
Homes, Inc., an Ohio
corporation (the “Issuer”)

 

67⁄8%
Senior Notes due 2012 (the
“Notes”)                   

 

Dear
Sirs:

 

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

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

 

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

 

(3) no
directed selling efforts have been made in the United States in contravention of
the requirements of Rule 904(a) of Regulation S;

 

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

 

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

 

You are
entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.
Terms used in this certificate have the meanings set forth in Regulation
S.

 

Very
truly yours,

 

[Name of
Transferee]

 

By:   

F-1

EXHIBIT
G

 

NOTATION
OF GUARANTEE

 

Each of
the undersigned (the “Guarantors”) hereby jointly and severally unconditionally
guarantees, to the extent set forth in the Indenture dated as of March 24,
2005 by and among M/I Homes, Inc., as issuer, the Guarantors, as guarantors, and
U.S. Bank National Association, as Trustee (as amended, restated or supplemented
from time to time, the “Indenture”), and subject to the provisions of the
Indenture, (a) the due and punctual payment of the principal of, and
premium, if any, and interest on the Notes, when and as the same shall become
due and payable, whether at maturity, by acceleration or otherwise, the due and
punctual payment of interest on overdue principal of, and premium and, to the
extent permitted by law, interest, and the due and punctual performance of all
other obligations of the Issuer to the Holders or the Trustee, all in accordance
with the terms set forth in Article Ten of the Indenture, and (b) in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

 

The
obligations of the Guarantors to the Holders and to the Trustee pursuant to this
Guarantee and the Indenture are expressly set forth in Article Ten of the
Indenture, and reference is hereby made to the Indenture for the precise terms
and limitations of this Guarantee. Each Holder of the Note to which this
Guarantee is endorsed, by accepting such Note, agrees to and shall be bound by
such provisions.

 

[Signatures
on Following Pages]

 

G1

IN
WITNESS WHEREOF, each of the Guarantors has caused this Guarantee to be signed
by a duly authorized officer.

 

 

[GUARANTORS]

 

By:   

Name: 

Title: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]