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Exhibit 4.13    
    

REGISTRATION RIGHTS AGREEMENT

Dated as of November 13, 2003  

 By and Among  

 BEAZER HOMES USA, INC.,

as Issuer,  

 the other GUARANTORS named herein  

 and  

 UBS SECURITIES LLC

BANC ONE CAPITAL MARKETS, INC.

CITIGROUP GLOBAL MARKETS INC.

WACHOVIA CAPITAL MARKETS, LLC

and

BNP PARIBAS SECURITIES CORP.

as Initial Purchasers  

 61/2% Senior Notes due 2013  

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	Section 1.	 	Definitions	 	1
	

Section 2.	
 	

Exchange Offer	
 	

3
	

Section 3.	
 	

Shelf Registration	
 	

6
	

Section 4.	
 	

Liquidated Damages	
 	

7
	

Section 5.	
 	

Registration Procedures	
 	

8
	

Section 6.	
 	

Registration Expenses	
 	

14
	

Section 7.	
 	

Indemnification	
 	

15
	

Section 8.	
 	

Rules 144 and 144A	
 	

17
	

Section 9.	
 	

Underwritten Registrations	
 	

18
	

Section 10.	
 	

Miscellaneous	
 	

18
	

 	
 	

(a)	
 	

No Inconsistent Agreements	
 	

18
	

 	
 	

(b)	
 	

Adjustments Affecting Registrable Notes	
 	

18
	

 	
 	

(c)	
 	

Amendments and Waivers	
 	

18
	

 	
 	

(d)	
 	

Notices	
 	

19
	

 	
 	

(e)	
 	

Guarantors	
 	

19
	

 	
 	

(f)	
 	

Successors and Assigns	
 	

20
	

 	
 	

(g)	
 	

Counterparts	
 	

20
	

 	
 	

(h)	
 	

Headings	
 	

20
	

 	
 	

(i)	
 	

Governing Law	
 	

20
	

 	
 	

(j)	
 	

Severability	
 	

20
	

 	
 	

(k)	
 	

Securities Held by the Company or Its Affiliates	
 	

20
	

 	
 	

(l)	
 	

Third-Party Beneficiaries	
 	

20
	

 	
 	

(m)	
 	

Attorneys' Fees	
 	

20
	

 	
 	

(n)	
 	

Entire Agreement	
 	

20
	

SIGNATURES	
 	

S-1

i

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        This Registration Rights Agreement (this "Agreement") is dated as of November 13, 2003, by and among Beazer
Homes USA, Inc., a Delaware corporation (the "Company"), and each of the Guarantors (as defined herein) (the Company and the Guarantors are
referred to collectively herein as the "Issuers"), on the one hand, and UBS Securities LLC, Banc One Capital Markets, Inc., Citigroup Global
Markets Inc., Wachovia Capital Markets, LLC, and BNP Paribas Securities Corp., (the "Initial Purchasers"), on the other hand. 

        This
Agreement is entered into in connection with the Purchase Agreement, dated as of November 6, 2003, by and among the Issuers and the Initial Purchasers (the
"Purchase Agreement"), relating to the offering and sale of $200,000,000 aggregate principal amount of the Company's 61/2% Senior Notes
due 2013 (including the guarantees thereof by the Guarantors, the "Notes") to the Initial Purchasers. The execution and delivery of this Agreement is a
condition to the Initial Purchasers' obligation to purchase the Notes under the Purchase Agreement. 

        The
parties hereby agree as follows: 

        Section 1.    Definitions    

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

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

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

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

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

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

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

        "Commission" shall mean the Securities and Exchange Commission. 

        "Company" shall have the meaning set forth in the introductory paragraph hereto and shall also include the Company's permitted successors
and assigns. 

        "day" shall mean a calendar day. 

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

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

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

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

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

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

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

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

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

        "Indenture" shall mean the Indenture, dated as of April 17, 2002, as amended or supplemented from time to time in accordance with
the terms thereof, by and among the Company and U.S. Bank National Association, as trustee, and the Second Supplemental Indenture, dated as of November 13, 

 

2003,
by and among the Issuers and U.S. Bank National Association, as trustee, pursuant to which the Notes are being issued. 

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

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

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

        "Issue Date" shall mean November 13, 2003, the date of original issuance of the Notes. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2

 

the
Indenture or (iv) such Note, Exchange Note or Private Exchange Note has been sold in compliance with Rule 144 or is salable pursuant to Rule 144(k). 

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

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

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

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

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

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

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

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

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

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

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

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

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

        Section 2.    Exchange Offer    

        (a)   Unless
the Exchange Offer would violate applicable law or any applicable interpretation of the staff of the Commission, the Issuers shall (i) file a
Registration Statement (the "Exchange Offer Registration Statement") within 90 days after the Issue Date with the Commission on an appropriate
registration form with respect to a registered offer (the "Exchange Offer") to exchange any and all of the Registrable Notes for a like aggregate
principal amount of notes (including the guarantees with respect thereto, the "Exchange Notes") that are identical in all material respects to the Notes
(except that the Exchange Notes shall not contain terms with respect to transfer restrictions or Liquidated Damages upon a Registration Default), (ii) use their respective reasonable best
efforts to cause the Exchange Offer Registration Statement to be declared effective under the Securities Act within 150 days after the Issue Date and (iii) use their respective
reasonable best efforts to consummate the Exchange Offer within 180 days after the Issue Date. Upon the Exchange Offer Registration Statement being declared effective by the Commission, the
Company will offer the Exchange Notes in exchange for surrender of the Notes. The Company shall keep the Exchange Offer open for not less than 

3

 

20 Business
Days (or longer if required by applicable law) after the date notice of the Exchange Offer is mailed to Holders. 

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

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

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

        In
light of the foregoing, if requested by a Participating Broker-Dealer (a "Requesting Participating Broker-Dealer"), the Issuers agree
to use their reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective for a period of up to 180 days after the date on which the Exchange Registration
Statement is declared effective, or such longer period if extended pursuant to the last paragraph of Section 5 hereof (such period, the "Applicable
Period"), or such earlier date as all Requesting Participating Broker-Dealers shall have notified the Company in writing that such Requesting Participating Broker-Dealers have
resold all Exchange Notes acquired in the Exchange Offer. The Company shall include a plan of distribution in such Exchange Offer Registration Statement that meets the requirements set forth in the
preceding paragraph. 

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

4

 

        In
connection with the Exchange Offer, the Company shall: 

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

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

        (3)   permit
Holders to withdraw tendered Notes at any time prior to the close of business, New York time, on the last Business Day on which the Exchange Offer shall remain
open; and 

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

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

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

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

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

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

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

        (c)   In
the event that (i) any changes in law or the applicable interpretations of the staff of the Commission do not permit the Issuers to effect the Exchange Offer,
(ii) for any reason the Exchange Offer is not consummated within 180 days of the Issue Date, (iii) any Holder (other than an Initial Purchaser) is prohibited by law or the
applicable interpretations of the staff of the Commission from participating in the Exchange Offer, (iv) in the case of any Holder that participates in the Exchange Offer, such Holder does not
receive Exchange Notes on the date of the exchange that may be sold without restriction under state and federal securities laws (other than due solely to the status of such holder as an affiliate of
any Issuer), (v) the Initial Purchasers so request with respect to Notes that have, or that are reasonably likely to be determined to have, the status of unsold allotments in an initial
distribution or (vi) any Holder of Private Exchange Notes so requests (each such event referred 

5

 

to
in clauses (i) through (vi) of this sentence, a "Shelf Filing Event"), then the Issuers shall file a Shelf Registration pursuant
to Section 3 hereof. 

        Section 3.    Shelf Registration    

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

        (a)    Shelf Registration.    The Issuers shall file with the Commission a Registration Statement for an offering to
be made on a continuous basis pursuant to Rule 415 (the "Initial Shelf Registration Statement") covering all of the Registrable Notes. The
Issuers shall file with the Commission the Initial Shelf Registration Statement as promptly as practicable and in any event on or prior to 45 days after such Shelf Filing Event occurs (but in
no event prior to 90 days following the Issue Date). The Initial Shelf Registration Statement shall be on Form S-3 or another appropriate form permitting registration of such
Registrable Notes for resale by Holders in the manner or manners designated by them (including, without limitation, one or more underwritten offerings). The Company shall not permit any securities
other than the Registrable Notes to be included in the Initial Shelf Registration Statement or in any Subsequent Shelf Registration Statement (as defined below). 

        The
Issuers shall use their respective reasonable best efforts (x) to cause the Initial Self Registration Statement to be declared effective under the Securities Act on or prior
to the 90th day after such Shelf Filing Event occurs (but in no event shall such effectiveness be required prior to 180 days following the Issue Date) and (y) to keep the Initial Shelf
Registration Statement continuously effective under the Securities Act for the period ending on the date which is two years from the date it becomes effective (or one year if the Initial Shelf
Registration Statement is filed at the request of an Initial Purchaser), subject to extension pursuant to the penultimate paragraph of Section 5 hereof (the
"Effectiveness Period"), or such shorter period ending when (i) all Registrable Notes covered by the Initial Shelf Registration Statement have
been sold in the manner set forth and as contemplated in the Initial Shelf Registration Statement or (ii) a Subsequent Shelf Registration Statement covering all of the Registrable Notes covered
by and not sold under the Initial Shelf Registration Statement or an earlier Subsequent Shelf Registration Statement has been declared effective under the Securities Act;  provided, however, that
(i) the Effectiveness Period in respect of the Initial Shelf Registration Statement shall be extended to the extent
required to permit dealers to comply with the applicable prospectus delivery requirements of Rule 174 under the Securities Act and as otherwise provided herein and (ii) the Company may
suspend the effectiveness of the Initial Shelf Registration Statement by written notice to the Holders solely as a result of the filing of a post-effective amendment to the Initial Shelf
Registration Statement to incorporate annual audited financial information with respect to the Company where such post-effective amendment is not yet effective and needs to be declared
effective to permit holders to use the related Prospectus. 

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

6

 

Registration
Statement and any Subsequent Shelf Registration Statement was previously continuously effective. As used herein, the term "Shelf Registration
Statement" includes the Initial Shelf Registration Statement and any Subsequent Shelf Registration Statement. 

        (c)    Supplements and Amendments.    The Issuers agree to supplement or make amendments to the Shelf Registration
Statement as and when required by the rules, regulations or instructions applicable to the registration form used for such Shelf Registration Statement or by the Securities Act for a shelf
registration, or if reasonably requested by the Holders of a majority in aggregate principal amount of the Registrable Notes covered by such Registration Statement or by any underwriter of such
Registrable Notes. 

        Section 4.    Liquidated Damages    

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

          (i)  the
Exchange Offer Registration Statement is not filed with the Commission on or prior to the 90th day following the Issue Date or, if that day is not a Business Day,
then the next succeeding day that is a Business Day, 

         (ii)  the
Exchange Offer Registration Statement is not declared effective on or prior to the 150th day following the Issue Date, or, if that day is not a Business Day, then
the next succeeding day that is a Business Day, 

        (iii)  the
Exchange Offer is not consummated on or prior to the 180th day following the Issue Date, or, if that day is not a Business Day, then the next succeeding day that
is a Business Day, or 

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

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

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

        (b)   The
Company shall notify the Trustee within one Business Day after each and every date on which an event occurs in respect of which Liquidated Damages are required to be
paid (an "Event Date"). Any amounts of Liquidated Damages due pursuant to this Section 4 will be payable in addition to any other interest
payable from time to time with respect to the Registrable Notes in cash semi-annually on the Interest Payment Dates specified in the Indenture (to the holders of record as 

7

 

specified
in the Indenture), commencing with the first such interest payment date occurring after any such Liquidated Damages commence to accrue. The amount of Liquidated Damages will be determined in
a manner consistent with the calculation of interest under the Indenture. 

        Section 5.    Registration Procedures    

        In
connection with the filing of any Registration Statement pursuant to Section 2 or 3 hereof, the Issuers shall effect such registrations to permit the sale of the securities
covered thereby in accordance with the intended method or methods of disposition thereof, and pursuant thereto and in connection with any Registration Statement filed by the Issuers hereunder, the
Issuers shall: 

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

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

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

8

 

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

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

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

9

 

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

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

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

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

10

 

Holders
may request at least two Business Days prior to any sale of such Registrable Notes or Exchange Notes. 

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

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

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

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

11

 

be
in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with underwritten offerings; and (iv) if an underwriting agreement is entered
into, the same shall contain indemnification provisions and procedures no less favorable than those set forth in Section 7 hereof (or such other provisions and procedures acceptable to Holders
of a majority in aggregate principal amount of Registrable Notes covered by such Registration Statement and the managing underwriter or underwriters or agents) with respect to all parties to be
indemnified pursuant to said Section. The above shall be done at each closing under such underwriting agreement, or as and to the extent required thereunder. 

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

        (o)   Provide
an indenture trustee for the Registrable Notes or the Exchange Notes, as the case may be, and cause the Indenture or the trust indenture provided for in
Section 2(b) hereof to be qualified under the TIA not later than the effective date of the Exchange Offer or the first Registration Statement relating to the Registrable Notes; and in
connection therewith, cooperate with the trustee under any such indenture and the Holders of the Registrable Notes or Exchange Notes, as applicable, to effect such changes to such indenture as may be
required for such indenture to be so qualified in accordance with the terms of the TIA; and execute, and use their reasonable best efforts to cause such trustee to execute, all documents as may be
required to effect such changes, and all other forms and documents required to be filed with the Commission to enable such indenture to be so qualified in a timely manner. 

        (p)   Comply
with all applicable rules and regulations of the Commission and make generally available to the Company's securityholders earnings statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days 

12

 

after
the end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Notes or Exchange Notes are sold to
underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering, commencing on the first day of the first fiscal quarter of the
Company after the effective date of a Registration Statement, which statements shall cover said 12-month periods. 

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

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

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

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

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

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

        Each
Holder of Registrable Notes and each Participating Broker-Dealer agrees by acquisition of such Registrable Notes or Exchange Notes that, upon actual receipt of any notice from the
Company 

13

 

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

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

        Section 6.    Registration Expenses    

        All
fees and expenses incident to the performance of or compliance with this Agreement by the Issuers shall be borne by the Issuers, whether or not the Exchange Offer Registration
Statement or the Shelf Registration is filed or becomes effective or the Exchange Offer is consummated, including, without limitation, (i) all registration and filing fees (including, without
limitation, (A) fees with respect to filings required to be made with the NASD in connection with an underwritten offering and (B) fees and expenses of compliance with state securities
or Blue Sky laws (including, without limitation, reasonable fees and disbursements of counsel in connection with Blue Sky qualifications of the Registrable Notes or Exchange Notes and determination of
the eligibility of the Registrable Notes or Exchange Notes for investment under the laws of such jurisdictions (x) where the holders of Registrable Notes are located, in the case of an Exchange
Offer, or (y) as provided in Section 5(h) hereof, in the case of a Shelf Registration or in the case of Exchange Notes to be sold by a Participating Broker-Dealer during the Applicable
Period)), (ii) printing expenses, including, without limitation, expenses of printing certificates for Registrable Notes or Exchange Notes in a form eligible for deposit with The Depository
Trust Company and of printing prospectuses if the printing of prospectuses is requested by the managing underwriter or underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement or in respect of Exchange Notes to be sold by any Participating Broker-Dealer during the Applicable Period, as the case may be,
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company and reasonable fees and disbursements of one special counsel for all of the
sellers of Registrable Notes (exclusive of any counsel retained pursuant to Section 7 hereof), (v) fees and disbursements of all independent certified public accountants referred to in
Section 5(m)(iii) hereof (including, without limitation, the expenses of any special audit and "cold 

14

 

comfort"
letters required by or incident to such performance), (vi) Securities Act liability insurance, if the Company desires such insurance, (vii) fees and expenses of all other
Persons retained by any of the Issuers, (viii) internal expenses of the Issuers (including, without limitation, all salaries and expenses of officers and employees of the Company performing
legal or accounting duties), (ix) the expense of any audit, (x) the fees and expenses incurred in connection with the listing of the securities to be registered on any securities
exchange, and the obtaining of a rating of the securities, in each case, if applicable, and (xi) the expenses relating to printing, word processing and distributing all Registration Statements,
underwriting agreements, indentures and any other documents necessary in order to comply with this Agreement. Notwithstanding the foregoing or anything to the contrary, each Holder shall pay all
underwriting discounts and commissions of any underwriters with respect to any Registrable Notes sold by or on behalf of it. 

        Section 7.    Indemnification    

        (a)   Each
Issuer, jointly and severally, agrees to indemnify and hold harmless each Holder of Registrable Notes and each Participating Broker-Dealer selling Exchange Notes
during the Applicable Period, each Person, if any, who controls any such Person within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, the agents,
employees, officers and directors of each Holder and each such Participating Broker-Dealer and the agents, employees, officers and directors of any such controlling Person (each, a
"Participant") from and against any and all losses, liabilities, claims, damages and expenses whatsoever (including, but not limited to, reasonable
attorneys' fees and any and all reasonable expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and
all reasonable amounts paid in settlement of any claim or litigation) (collectively, "Losses") to which they or any of them may become subject under the
Securities Act, the Exchange Act or otherwise insofar as such Losses (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any
preliminary prospectus, or caused by, arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein, in the case of the Prospectus, in the light of the circumstances under which they were made, not misleading, provided that (i) the
foregoing indemnity shall not be available to any Participant insofar as such Losses are caused by any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with information relating to such Participant furnished to the Company in writing by or on behalf of such Participant expressly for use therein, and (ii) that the foregoing indemnity
with respect to any preliminary prospectus shall not inure to the benefit of any Participant from whom the Person asserting such Losses purchased Registrable Notes if (x) it is established in
the related proceeding that such Participant failed to send or give a copy of the Prospectus (as amended or supplemented if such amendment or supplement was furnished to such Participant prior to the
written confirmation of such sale) to such Person with or prior to the written confirmation of such sale, if required by applicable law, and (y) the untrue statement or omission or alleged
untrue statement or omission was completely corrected in the Prospectus (as amended or supplemented if amended or supplemented as aforesaid) and such Prospectus does not contain any other untrue
statement or omission or alleged untrue statement or omission that was the subject matter of the related proceeding. This indemnity agreement will be in addition to any liability that the Issuers may
otherwise have, including, but not limited to, liability under this Agreement. 

        (b)   Each
Participant agrees, severally and not jointly, to indemnify and hold harmless each Issuer, each Person, if any, who controls any Issuer within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange Act, and each of their respective agents, employees, officers and directors and the agents, employees, officers and
directors of any such controlling Person from and against any Losses to which they or any of them may become subject under the Securities Act, the 

15

 

Exchange
Act or otherwise insofar as such Losses (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus, or
caused by, arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the case of the
Prospectus, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that any such Loss arises out of or is based upon any
untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information relating to such Participant furnished in writing to the Company
by or on behalf of such Participant expressly for use therein. 

        (c)   Promptly
after receipt by an indemnified party under subsection 7(a) or 7(b) above of notice of the commencement of any action, suit or proceeding (collectively, an
"action"), such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify each
party against whom indemnification is to be sought in writing of the commencement of such action (but the failure so to notify an indemnifying party shall not relieve such indemnifying party from any
liability that it may have under this Section 7 except to the extent that it has been prejudiced in any material respect by such failure). In case any such action is brought against any
indemnified party, and it notifies an indemnifying party of the commencement of such action, the indemnifying party will be entitled to participate in such action, and to the extent it may elect by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense of such action with counsel reasonably satisfactory
to such indemnified party. Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such action, but the reasonable fees and
expenses of such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by the indemnifying parties
in connection with the defense of such action, (ii) the indemnifying parties shall not have employed counsel to take charge of the defense of such action within a reasonable time after notice
of commencement of the action, or (iii) the named parties to such action (including any impleaded parties) include such indemnified party and the indemnifying party or parties (or such
indemnifying parties have assumed the defense of such action), and such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them that are
different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on
behalf of the indemnified party or parties), in any of which events such reasonable fees and expenses of counsel shall be borne by the indemnifying parties. In no event shall the indemnifying party be
liable for the fees and expenses of more than one counsel (together with appropriate local counsel) at any time for all indemnified parties in connection with any one action or separate but
substantially similar or related actions arising in the same jurisdiction out of the same general allegations or circumstances. An indemnifying party shall not be liable for any settlement of any
claim or action effected without its written consent, which consent may not be unreasonably withheld. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by paragraph (a) or (b) of this Section 7, then the indemnifying party
agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 60 Business Days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement
and (iii) such indemnified party shall have given the indemnifying party at least 45 days' prior notice of its intention to settle. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and 

16

 

indemnity
could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the
subject matter of such proceeding. 

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

        (e)   The
parties agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by any other method
of allocation that does not take into account the equitable considerations referred to above. Notwithstanding the provisions of this Section 7, (i) in no case shall any Participant be
required to contribute any amount in excess of the amount by which the net profit received by such Participant in connection with the sale of the Registrable Notes exceeds the amount of any damages
that such Participant has otherwise been required to pay by reason of any untrue or alleged untrue statement or omission or alleged omission and (ii) no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. Any party entitled
to contribution will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made against another party or parties under
this Section 7, notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom
contribution may be sought from any obligation it or they may have under this Section 7 or otherwise, except to the extent that it has been prejudiced in any material respect by such failure;  provided,
however, that no additional notice shall be required with respect to any action for which notice has been given under this Section 7
for purposes of indemnification. Anything in this section to the contrary notwithstanding, no party shall be liable for contribution with respect to any action or claim settled without its written
consent, provided, however, that such written consent was not unreasonably withheld. 

        Section 8.    Rules 144 and 144A    

        The
Company covenants that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission
thereunder in a timely manner in accordance with the requirements of the Securities Act and the Exchange Act and, if at any time the Company is not required to file such reports, it will, upon the
request of any Holder or beneficial owner of Registrable Notes, make available such information necessary to permit sales 

17

 

pursuant
to Rule 144A under the Securities Act. The Issuers further covenant that they will take such further action as any Holder of Registrable Notes may reasonably request from time to time
to enable such Holder to sell Registrable Notes without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144(k) and Rule 144A
under the Securities Act, as such Rules may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the Commission. 

        Section 9.    Underwritten Registrations    

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

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

        Section 10.    Miscellaneous    

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

        (b)    Adjustments Affecting Registrable Notes.    The Company shall not, directly or indirectly, take any action with
respect to the Registrable Notes as a class that would adversely affect the ability of the Holders of Registrable Notes to include such Registrable Notes in a registration undertaken pursuant to this
Agreement. 

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

18

 

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

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

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

Beazer
Homes USA, Inc.

1000 Abernathy Road, Suite 1200

Atlanta, Georgia 30328

Telephone: (770) 829-3700

Fax: : (770) 481-0431

Attention: President 

With
a copy to: 

Paul,
Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, New York 10022

Telephone: (212) 318-6000

Fax: (212) 319-4090

Attention: William F. Schwitter, Esq. 

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

UBS
Securities LLC

299 Park Avenue

New York, New York 10171

Telephone: (212) 821-3000

Fax number: (212) 821-6890

Attention: Syndicate Department 

With
a copy to: 

Cahill
Gordon & Reindel LLP

80 Pine Street

New York, New York 10005

Telephone: (212) 701-3000

Fax: (212) 269-5420

Attention: Daniel J. Zubkoff, Esq. 

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

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

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

19

 

effect
the Exchange Offer for the Exchange Notes and the filing of any Shelf Registration Statement required hereunder. 

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

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

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

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

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

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

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

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

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

20

  

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

	 	 	BEAZER HOMES USA, INC.
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

APRIL CORPORATION

BEAZER ALLIED COMPANIES HOLDINGS, INC.

BEAZER HOMES CORP.

BEAZER HOMES HOLDINGS CORP.

BEAZER HOMES INVESTMENT CORP.

BEAZER HOMES SALES ARIZONA, INC.

BEAZER HOMES TEXAS HOLDINGS, INC.

BEAZER MORTGAGE CORPORATION

BEAZER REALTY CORP.

BEAZER REALTY, INC.

BEAZER/SQUIRES REALTY, INC.

CROSSMANN COMMUNITIES OF NORTH CAROLINA, INC.

CROSSMANN COMMUNITIES OF OHIO, INC.

CROSSMANN INVESTMENTS, INC.

CROSSMANN MANAGEMENT, INC.

CROSSMANN MORTGAGE CORP.

CUTTER HOMES, LTD.

DELUXE HOMES OF LAFAYETTE, INC.

DELUXE HOMES OF OHIO, INC.

HOMEBUILDERS TITLE SERVICES OF VIRGINIA, INC.

HOMEBUILDERS TITLE SERVICES, INC.

BEAZER REALTY, INC. fka Merit Realty, Inc.
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President

S-1

 

	 	 	BEAZER CLARKSBURG, LLC
	

 	
 	

By:	

BEAZER HOMES CORP., its managing partner
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

BEAZER HOMES TEXAS, L.P.
	

 	
 	

By:	

BEAZER HOMES TEXAS HOLDINGS, INC., its managing partner
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

BEAZER SPE, LLC
	

 	
 	

By:	

BEAZER HOMES CORP., its managing member
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

CROSSMANN COMMUNITIES OF TENNESSEE, LLC
	

 	
 	

By:	

CROSSMANN COMMUNITIES OF NORTH CAROLINA, INC., its managing member
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

CROSSMANN COMMUNITIES PARTNERSHIP
	

 	
 	

By:	

BEAZER HOMES INVESTMENT CORP., its partner
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

PARAGON TITLE, LLC
	

 	
 	

By:	

BEAZER HOMES INVESTMENT CORP., its partner
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President

S-2

 

	

 	
 	

PINEHURST BUILDERS LLC
	

 	
 	

By: CROSSMANN COMMUNITIES OF TENNESSEE, LLC, its managing partner
	

 	
 	

By: CROSSMANN COMMUNITIES OF NORTH CAROLINA, INC., its managing member
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

TEXAS LONE STAR TITLE, L.P.
	

 	
 	

By:	

BEAZER HOMES TEXAS HOLDINGS, INC., its managing partner
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

TRINITY HOMES LLC
	

 	
 	

By:	

BEAZER HOMES INVESTMENT CORP., its manager
	

 	
 	

 	

By:	

/s/  JAMES O'LEARY      

	 	 	 	Name:

Title:	James O'Leary

Executive Vice President
	

 	
 	

UBS SECURITIES LLC
	

 	
 	

By:	

/s/  ADAM REEDER      

	 	 	 	Name:

Title:	Adam Reeder

Managing Director
	

 	
 	

By:	

/s/  ROBERT CROWLEY      

	 	 	 	Name:

Title:	Robert Crowley

Executive Director
	

 	
 	

BANC ONE CAPITAL MARKETS, INC.
	

 	
 	

By:	

/s/  THOMAS J. MCGRATH      

	 	 	 	Name:

Title:	Thomas J. McGrath

Managing Director
	

 	
 	

CITIGROUP GLOBAL MARKETS INC.
	

 	
 	

By:	

/s/  MICHAEL S. WEISS      

	 	 	 	Name:

Title:	Michael S. Weiss

Vice President

S-3

 

	

 	
 	

WACHOVIA CAPITAL MARKETS, LLC
	

 	
 	

By:	

/s/  RIT AMIN      

	 	 	 	Name:

Title:	Rit Amin

Vice President
	

 	
 	

BNP PARIBAS SECURITIES CORP.
	

 	
 	

By:	

/s/  DOUGLAS COOK      

	 	 	 	Name:

Title:	Douglas Cook

Managing Director

S-4

 
 
 

Schedule A    
    

 
 

Schedule of Guarantors    
    

Beazer
Homes Corp.

Beazer/Squires Realty, Inc.

Beazer Homes Sales Arizona Inc.

Beazer Realty Corp.

Beazer Mortgage Corporation

Beazer Homes Holdings Corp.

Beazer Homes Texas Holdings, Inc.

Beazer Homes Texas, L.P.

April Corporation

Beazer SPE, LLC

Beazer Homes Investment Corp.

Beazer Realty, Inc.

Beazer Clarksburg, LLC

Homebuilders Title Services of Virginia, Inc.

Homebuilders Title Services, Inc.

Texas Lone Star Title, L.P.

Beazer Allied Companies Holdings, Inc.

Crossmann Communities of North Carolina, Inc.

Crossmann Communities of Ohio, Inc.

Crossmann Communities of Tennessee, LLC

Crossmann Communities Partnership

Crossmann Investments, Inc.

Crossmann Management Inc.

Crossmann Mortgage Corp.

Cutter Homes Ltd.

Deluxe Homes of Lafayette, Inc.

Deluxe Homes of Ohio, Inc.

Beazer Realty, Inc. (formerly Merit Realty, Inc.)

Paragon Title, LLC

Pinehurst Builders LLC

Trinity Homes LLC 

QuickLinks

Exhibit 4.13

TABLE OF CONTENTS

REGISTRATION RIGHTS AGREEMENT

Schedule A

Schedule of GuarantorsQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10(i)  

THIS AGREEMENT made as of the 29th day of October, 2002. 

BETWEEN  

METALLIC VENTURES INC., a corporation

incorporated under the Laws of Ontario 

(hereinafter
called the "Corporation") 

OF THE FIRST PART

and:

TERRA ANDROMEDA

(hereinafter
called the "Executive") 

OF THE SECOND PART  

WITNESSES THAT:  

        WHEREAS the Executive is presently employed by the Corporation in the capacity of Controller reporting to the
Chair of the Board of Directors of the Corporation; 

        AND WHEREAS the Corporation and the Executive are desirous of having certain rights and benefits in the event that the Executive is
dismissed or the employment of the Executive with the Corporation is terminated in a manner set forth hereinafter; 

        AND WHEREAS the Corporation wishes to retain the benefit of the employment of the Executive with the Corporation and to ensure that the
Executive is able to carry out his responsibilities with the Corporation free from any distractions associated with any potential change in the ownership or control of the Corporation or its assets; 

        NOW THEREFORE in consideration of the promises and the mutual covenants and agreements hereinafter contained, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the Executive and the Corporation, it is agreed by and between the Executive and the Corporation as
follows: 

-2- 

 
 

ARTICLE ONE    
    
    DEFINITIONS AND INTERPRETATION    
    

Section
1.01 Definitions: In this Agreement, the following words and terms with the initial letter or letters thereof
capitalized shall have the meanings set forth below: 

	(a)
	"Accountant"
means a Certified Accountant reasonably acceptable to the Executive. If the Executive and the Auditor cannot agree on an Accountant, then both the Executive and the
Auditor shall nominate an accountant. The two nominees shall select a third accountant who shall act as Accountant hereunder and whose determinations shall be binding on the parties. All fees and
disbursements and other expenses incurred in the nomination process and the retainer of the Accountant shall be borne by the Corporation;

	(b)
	"Agreement"
means this agreement as amended from time to time;

	(c)
	"Auditor"
means the accounting firm which was, immediately prior to the Change in Control, the Corporation's independent auditor;

	(d)
	"Benefit
Plans" means all stock option or share purchase plans, employee loans, home purchase loans, insurance, long-term disability, medical, dental or other executive and employee
benefit plans, including without limitation any pension or company sponsored retirement savings plans, and all privileges (including without limitation automobile leases) provided by the Corporation
or any subsidiary of the Corporation to the Executive;

	(e)
	"Cause"
shall mean termination by the Corporation of the Executive's employment based upon (i) the willful and continued failure by the Executive substantially to perform the
Executive's duties with the Corporation after a written demand for substantial performance is delivered to the Executive by the board of directors of the Corporation, which demand specifically
identifies the manner in which the board believes that the Executive has not substantially performed the Executive's duties, other than any (a) such failure resulting from the Executive's
incapacity due to physical or mental illness, (b) any such actual or anticipated failure after the issuance of a notice of termination by the Executive following a Triggering Event or
(c) the Corporation's active or passive obstruction of the performance of the Executive's duties and responsibilities or (ii) the willful engaging by the Executive in conduct which is
demonstrably and materially injurious to the Corporation monetarily after a written explanation from the board detailing the conduct and the injury is delivered to the Executive. For purposes of this
definition, no act, or failure to act, on the Executive's part shall be deemed willful unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the
Executive's act, or failure to act, was in the best interest of the Corporation; 

-3- 

	(f)
	"Change
in Control" means a transaction or series of transactions whereby directly or indirectly;

	(i)
	any
Person or combination of Persons acting jointly and in concert (other than the Executive or a corporation controlled directly or indirectly by the Executive)
acquires a sufficient number of securities of the Corporation to affect materially the control of the Corporation and for the purposes of this Agreement, a Person or combination of Persons acting
jointly and in concert, holding shares or other securities in excess of the number which, directly or following the conversion or exercise thereof, would entitle the holders thereof to cast 20% or
more of the votes attached to all shares of the Corporation which may be cast to elect directors of the Corporation, shall be deemed to be in a position to affect materially the control of the
Corporation, in which case the Change in Control shall be deemed to occur on the date that is the later of the date that the security representing one more than that required to cast 20% of the votes
attached to all shares of the Corporation which may be cast to elect directors of the Corporation is acquired or the date on which the persons acting jointly and in concert agree to so act;

	(ii)
	the
Corporation shall consolidate or merge with or into, amalgamate with, or enter into a statutory arrangement with, any other Person (other than a corporation
controlled directly or indirectly by the Executive) and, in connection therewith, all or part of the outstanding shares of the Corporation which have voting rights attached thereto shall be changed in
any way, reclassified or converted into, exchanged or otherwise acquired for shares or other securities of the Corporation or any other Person or for cash or any other property, in which case the
Change in Control shall be deemed to occur on the date of closing of the consolidation, merger, amalgamation or statutory arrangement, as the case may be; or

	(iii)
	the
Corporation shall sell or otherwise transfer, including by way of the grant of a leasehold interest (or one or more subsidiaries of the Corporation shall sell or
otherwise transfer, including without limitation by way of the grant of a leasehold interest) property or assets (A) aggregating more than 50% of the consolidated assets (measured by either
book value or fair market value) of the Corporation and its subsidiaries as at the end of the most recently completed financial year of the Corporation or (B) which during the most recently
completed financial year of the Corporation generated, or during the then current financial year of the Corporation are expected to generate, more than 50% of the consolidated operating income or cash
flow of the Corporation and its subsidiaries, to any other Person or Persons, in which case the Change in Control shall be deemed to occur on the date of transfer of the assets representing one dollar
more than 50% of the consolidated assets in the case of clause (A) or 50% of the consolidated operating income or cash flow in the case of clause (B), as the case may be; 

-4- 

other
than a transaction or series of transactions which involves a sale of securities or assets of the Corporation with which the Executive is involved as a purchaser in any manner, whether directly
or indirectly, and whether by way of participation in a corporation or partnership that is a purchaser or by provision of debt, equity or purchase leaseback financing, but excluding where the
Executive's sole involvement with such a purchase is the ownership of an equity interest of less than 5% of the acquirer where the acquirer is a public company, and the Executive and persons acting
jointly and in concert with the Executive hold securities of the acquirer which, directly, or following the conversion or exercise thereof, would entitle the holders thereof to cast 5% or more of the
votes attached to all shares or other interests of the acquirer which may be cast to elect directors or the management of the acquirer; 

	(g)
	"Code"
shall mean the United States Internal Revenue Code of 1986, as amended from time to time;

	(h)
	"Disability"
shall be deemed to be the reason for the termination by the Corporation of the Executive's employment if, as a result of the Executive's incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time performance of the Executive's duties with the Corporation for a period of twelve (12) consecutive months, the
Corporation shall have given the Executive a notice of termination for Disability, and, within thirty (30) days after such notice of termination is given, the Executive shall not have returned
to the full-time performance of the Executive's duties;

	(i)
	"Exchange
Act" shall mean the United States Securities Exchange Act of 1934, as amended from time to time;

	(j)
	"Expiry
Date" means the date which is 24 months after a Change in Control occurs; 

-5- 

	(k)
	"Person"
has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the
Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Corporation in
substantially the same proportions as their ownership of the stock of the Corporation;

	(l)
	"Severance
Payments" means the payments provided for in Articles 2 and 3 hereof;

	(m)
	"Total
Payments" means any payment or benefit received or to be received by the Executive in connection with a Change in Control or the termination of the Executive's employment
(whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Corporation, any Person whose actions result in a Change in Control or any Person affiliated with
the Corporation or such Person); and

	(n)
	"Triggering
Event" means any one of the following events which occurs without the express agreement in writing of the Executive;

	(i)
	an
adverse change in any of the duties, powers, rights, discretion, salary or benefits of the Executive as they exist immediately prior to the Change of Control

	(ii)
	a
diminution of the title of the Executive as it exists immediately prior to the Change of Control

	(iii)
	a
change in the person or body to whom the Executive reports immediately prior to the Change of Control, except if such person or body is of equivalent rank or stature
or such change is as a result of the resignation or removal of such person or the persons comprising such body, as the case may be, provided that this shall not include a change resulting from a
promotion in the normal course of business, or

	(iv)
	a
change in the location at which the Executive is regularly required immediately prior to the Change of Control to carry out the terms of his employment with the
Corporation, unless the terms of employment of the Executive include the obligation to receive geographic transfers from time to time in the normal course of business. 

-6- 

Section
1.02 Plural and Gender: Whenever used in this Agreement, words importing the singular number only shall include the
plural and vice versa and words importing the masculine gender shall include the feminine gender. 

Section
1.03 Binding Effect: This Agreement shall be binding on the successors and assigns of the Corporation and shall
enure to the benefit of the personal representatives and heirs of the Executive. 

Section
1.04 Monetary Amounts: All references to monetary amounts in this Agreement are to lawful money in the
United States of America. 

 
 

ARTICLE TWO    
    
    RIGHTS OF EXECUTIVE    
    

Section
2.01 Right Upon Occurrence of Triggering Event:

	(a)
	Right:
If Change in Control occurs and if, in respect of the Executive, a Triggering Event occurs on or before the Expiry Date, the Executive shall be
entitled to elect to terminate his employment with the Corporation and to receive a payment from the Corporation in the amount an amount represented by the formula
A × (B + C) where: 

A
= 3; 

B
= the highest annualized rate of monthly base salary received by the Executive in the thirty-six months immediately preceding the Change in Control; and 

C
= the highest bonus amounts received by the Executive in the calendar year of the Change in Control or in any one of the three calendar years immediately preceding the calendar year of the Change in
Control; 

subject
to the monetary limitations set out in Article 4 below. 

	(b)
	Condition:
The right of the Executive provided for in subsection 2.01(a) hereof is conditional upon the Executive electing to exercise such right by
notice given to the Corporation within six months after the Triggering Event. 

Section
2.02 Right Upon Dismissal: The Executive shall be entitled to a payment from the Corporation in the amount
calculated in accordance with subsection 2.01(a) hereof, subject to the monetary limitations set out in Article 4, below, if the Executive is dismissed from his employment with the Corporation
prior to the Expiry Date for any reason other than Cause, death or Disability of the Executive. The Corporation shall not dismiss the Executive for any reason unless such dismissal is specifically
approved by the board of directors of the Corporation. 

-7-

Section
2.03 Benefit Plans: In the event that the Executive is entitled to a payment pursuant to section 2.01, 2.02 or 2.03
hereof, the Executive shall be entitled to have all Benefit Plans continued for a period of 24 months after the date of the giving of notice by the Executive pursuant to section 2.01 hereof or
the dismissal from employment with the Corporation of the Executive as referred to in section 2.02 hereof, as the case may be, or for such longer period as is available under any Benefit Plan when
coverage is provided from a source other than the Corporation. 

Section
2.04 Stock Options: All options to purchase common shares of the Corporation granted to the Executive shall vest
and become immediately exercisable upon the occurrence of a Change in Control. In the event that the Executive is entitled to a payment pursuant to section 2.01 or 2.02 hereof, the term during which
any option to purchase common shares of the Corporation granted to the Executive by the Corporation or any subsidiary of the Corporation may be exercised shall be extended to the later of the expiry
date of the option and 24 months after the date of the giving of notice by the Executive pursuant to section 2.01 hereof or the dismissal from employment with the Corporation of the Executive
as referred to in section 2.02 hereof, as the case may be, provided that the maximum term of any such option shall not exceed 10 years from the date of grant of such option. In addition, in
such event any provisions of such an option which restricts the number of common shares of the Corporation which may be purchased before a particular date shall be waived. In the event that the price
at which common shares of the Corporation may be purchased upon the exercise of any option granted at the same time as the option was granted to the Executive is reduced, the price at which common
shares of the Corporation may be purchased by the Executive pursuant to the exercise of the option held by the Executive shall be reduced to the lowest price at which common shares of the Corporation
may be purchased pursuant to any such option. The terms of any option agreement evidencing such option shall be deemed to be amended to reflect the provisions of this section 2.04. Nothing in the
provisions hereof shall preclude the Executive from participating in any purchase or exchange of options or shares which may occur upon a Change in Control. 

Section
2.05 Retransfer: In the event that the Executive moved to Nevada to accept employment with the Corporation, if the
Executive exercises pursuant to section 2.01 hereof or upon giving notice to the Corporation within six (6) months of dismissal from employment with the Corporation of the Executive as referred
to in section 2.02 hereof, as the case may be, the Corporation shall pay to the Executive an amount equal to the direct expenses of moving the Executive and his immediate family and their household
effects back to the location from which the Executive moved. 

-8-

Section
2.06 Outplacement Services: The Corporation shall pay the reasonable costs (to a maximum of 15% of the applicable
annual base salary and bonus of the Executive immediately prior to the Change in Control) of the services of any outplacement counseling service mutually satisfactory to the Corporation and the
Executive, and for a maximum period of 12 months, for the Executive in the event that the Executive is entitled to receive a payment pursuant to either section 2.01 or 2.02 hereof. 

Section
2.07 Notice of Termination: After a Change in Control and prior to the Expiry Date, any purported termination of
the Executive's employment (other than by reason of death) shall be communicated by notice of termination from one party to the other party in accordance with section 5.03 hereof. 

Section
2.08 Dispute Concerning Termination: If within fifteen (15) days after any notice of termination is given, or, if
later, prior to the date of termination (as determined without regard to this section 2.08), the party receiving such notice of termination notifies the other party that a dispute exists concerning
the effect of the termination under this Agreement either due to the Corporation's assertion that the termination was for Cause or due to the Corporation's denial of a Triggering Event, the date of
termination shall be extended until the date on which the dispute is finally resolved: (A) either by mutual written agreement of the parties or (B) by a final judgment, order or decree
of a court (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been lodged) adjudicating the rights and obligations of the Executive and the
Corporation under this Agreement with respect to the termination; provided, however, that the date of termination shall be extended by a notice of dispute given by the Executive only if such notice is
given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence. 

Section
2.09 Compensation During Dispute: If a purported termination occurs following a Change in Control and prior to the
Expiry Date and the date of termination is extended in accordance with section 2.08 hereof, the Corporation shall continue to pay the Executive the full compensation in effect when the notice giving
rise to the dispute was given or, if higher, the compensation in effect immediately prior to the Change in Control, and shall continue the Executive as a participant in all compensation, benefit and
insurance plans in which the Executive was participating when the notice giving rise to the dispute was given, until the date of termination, as determined in accordance with section 2.08 hereof.
Amounts paid under this section 2.09 are in addition to all other amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement. 

-9-

 
 

ARTICLE THREE    
    
    PAYMENTS AND REVIEW    
    

Section
3.01 Payments Under this Agreement: Any payment to be made by the Corporation pursuant to the terms of this
Agreement shall be paid by the Corporation in cash in a lump sum within ten business days of the giving of notice by the Executive pursuant to section 2.01 hereof or within ten business days of the
dismissal from employment with the Corporation of the Executive as referred to in section 2.02 hereof, as the case may be. Any such payment shall be calculated, in the case of section 2.01 hereof, at
the date of giving notice pursuant to section 2.01 hereof and, in the case of section 2.02 hereof, at the date of dismissal. 

Section
3.02 Review of Agreement: In the event of a threatened or pending Change in Control, or following a Change in
Control which is not followed within six months by a Triggering Event in respect of the Executive, the Corporation in either case shall review the terms of this Agreement and shall implement any
amendments hereto which are agreed to by both the Corporation and the Executive. 

Section
3.03 Designation of Beneficiary: In the event that the Executive dies prior to the satisfaction of all of the
obligations of the Corporation under this Agreement, any remaining amounts payable to the Executive by the Corporation shall be paid to the person or persons previously designated by the Executive to
the Corporation for such purposes. Any such designation of beneficiaries shall be made in writing, signed by the Executive and dated and filed with the Secretary of the Corporation. In the event that
no designation is made, all such amounts shall be paid by the Corporation to the estate of the Executive. 

Section
3.04 Agreement Supplemental: This Agreement shall be supplemental to any other contract of employment, whether
written or oral, that exists between the Corporation or any subsidiary of the Corporation and the Executive, except insofar as any such contract of employment relates to the termination of the
employment relationship between the Corporation or any subsidiary of the Corporation and the Executive after a Change in Control, in which case this Agreement shall supersede the termination
provisions of any such contract of employment. 

Section
3.05 Installment Payments: Notwithstanding Section 3.01, the Executive may elect by written notice to receive any
payments due to him hereunder by way of periodic or installment payments. 

-10- 

 
 

ARTICLE FOUR    
    
    COMPLIANCE WITH THE CODE    
    

Section
4.01 Maximum Payments: Notwithstanding any other provisions of this Agreement, in the event that any of the Total
Payments would not be deductible (in whole or in part), by the Corporation, an affiliate or Person making such payment or providing such benefit as a result of section 280G of the Code, then, to the
extent necessary to make the Total Payments deductible in their entirety (and after taking into account any reduction in the Total Payments provided by reason of section 280G of the Code in any
other plan, arrangement or agreement pursuant to which any of the Total Payments are paid), the cash Severance Payments shall first be reduced, and all other Severance Payments shall thereafter be
reduced; provided however that the Executive may elect to have the noncash Severance Payments reduced (or eliminated) prior to any reduction of the cash Severance Payments. 

Section
4.02 Procedures Related to Section 280G: For the purposes of this Article 4, (i) no portion of the
Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a "payment" within the meaning of section 280G of the Code shall
be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of the Accountant, does not constitute a "parachute payment" within the meaning of
section 280G of the Code, including by reason of section 280G(b)(4)(A) of the Code, (iii) the Severance Payments shall be reduced only to the extent necessary so that the Total Payments (other
than those referred to in clauses (i) or (ii) in their entirety constitute reasonable compensation for services actually rendered within the meaning of section 280G(b)(4)(B) of the Code
or are otherwise not subject to disallowance as deduction by reason of section 280G of the Code, in the opinion of the Accountant, and (iv) the value of any noncash benefit or any deferred
payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of sections 280G(d)(3) and (4) of the Code. 

Section
4.03 Repayment in Certain Circumstances: If it is established pursuant to a final determination of a court or a
final Internal Revenue Service proceeding that, notwithstanding the good faith of the Executive and the Company in applying the terms of this Article 4, the Total Payments paid to or for the
Executive's benefit are in an amount that would result in any portion of such Total Payments being subject to the excise tax imposed under section 4999 of the Code, then, if a repayment by the
Executive would result in (i) no portion of the remaining Total Payments being subject to the excise tax imposed under section 4999 of the Code and (ii) a dollar-for-dollar reduction in
the Executive's taxable income and wages for purposes of federal, state and local income and employment taxes, the Executive shall have an obligation to pay the Corporation upon demand an amount equal
to the sum of (a) the excess of the Total Payments paid to or for the Executive's benefit over the Total Payments that could have been paid to or for the Executive's benefit without any portion
of such Total Payments being subject to the excise tax imposed under section 4999 of the Code; and (b) interest on the amount set forth in clause (a) at the rate provided in section
1274(b)(2)(B) of the Code from the date of the Executive's receipt of such excess until the date of such payment. 

-11-

 
 

ARTICLE FIVE    
    
    MISCELLANEOUS    
    

Section
5.01 Assignment and Assumption: This Agreement shall be assigned by the Corporation to any successor corporation of
the Corporation and shall be binding upon such successor corporation. For the purposes of this section 5.01, "successor corporation" shall include without limitation any Person referred to in
paragraphs 1(c)(ii) or (iii) hereof. The Corporation shall ensure that the successor corporation shall continue the provisions of this Agreement as if it were the original party in place of the
Corporation; provided however that the Corporation shall not thereby be relieved of any obligations to the Executive pursuant to this Agreement. In the event of a transaction or series of transactions
as described in paragraphs 1(c)(ii) or (iii) hereof, appropriate arrangements shall be made by the Corporation for the successor corporation to honor this Agreement as if the Executive had exercised
his maximum rights hereunder as of the effective date of such transaction. 

Section
5.02 Further Assurances: Each of the Corporation and the Executive agrees to make, do and execute or cause to be
made, done and executed all such further and other things, acts, deeds, documents, assignment and assurances as may be necessary or reasonable required to carry out the intent and purpose of this
Agreement fully and effectually. Without limiting the generality of the foregoing, the Corporation shall take all reasonable steps in order to structure the payment or payments provided for in this
Agreement in the manner most advantageous to the Executive with respect to provisions of the Code or similar legislation in place in the jurisdiction of residence of the Executive. 

Section
5.03 Notice: Any election or designation to be made by the Executive pursuant to the terms of this Agreement shall
be by notice in writing and shall be delivered to the Corporation at the following address: 

METALLIC
VENTURES INC.

2100 – 40 King St. West

Toronto ON M5H 3C2 

Attention:
President or Chief Executive Officer 

Section
5.04 Costs: The Corporation shall pay all costs and expenses, including without limitation legal fees, incurred by
the Executive in connection with the enforcement of the provisions of this Agreement. 

-12-

Section
5.05 Governing Law: This Agreement shall be governed by and be construed in accordance with the laws of the State
of Nevada and the federal laws of the United States of America applicable therein. 

Section
5.06 Severability: Any provision of this Agreement which contravenes any applicable law or which is found to be
unenforceable shall, to the extent of such contravention or unenforceability, be deemed severable and shall not cause this Agreement to be held invalid or unenforceable or affect any other provision
or provisions of this Agreement. 

Section
5.07 Independent Advice: The Executive acknowledges having been advised that he is entitled to obtain independent
legal advice with respect hereto prior to executing this Agreement. 

Section
5.08 Release of Claims: Notwithstanding any other provisions contained in this Agreement, the Corporation shall
require, as a condition precedent to the payment of the Severance Payments to the Executive, that the Executive execute, after his last day of employment by the Corporation, a release and covenant in
favor of the Corporation and its stockholders, officers, employees, directors and affiliates in the form appended hereto as Exhibit "A". If the Executive fails to provide the required release and
covenant, or within seven days following its delivery to the Corporation revokes the required release and covenant, and the Corporation has not alleged just cause for termination or denied a
Triggering Event in connection with the termination of employment, the sole obligation of the Corporation to the Executive under this Agreement shall be the payment of the equivalent of two weeks
salary calculated as at the time of termination. 

Section
5.09 No Mitigation: The Corporation agrees that, if the Executive's employment with the Corporation is terminated
hereunder, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Corporation pursuant to the terms of this Agreement.
Further, the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by the Executive to the Corporation, or otherwise. 

Section
5.10 Limitation of the Executive's Rights: This Agreement shall not give the Executive the right to remain employed
by the Corporation or interfere with or restrict the right of the Corporation to discharge or retire the Executive. The Executive is and shall remain an at-will employee of the Corporation in
accordance with the Corporation's policies, as are all employees of the Corporation. 

        IN
WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date first above written. 

-13-

	 	 	 	METALLIC VENTURES INC.

By:
	 	 	 	 
	 	 	 	 
	 	 	 	              /s/ RICHARD D. McNEELY              c/s

	SIGNED, SEALED AND DELIVERED	)	 	 
	in the presence of	)	 	 
	 	)	 	 
	 	)	 	 
	/s/  MILES BACHMAN      
	)	 	/s/  TERRA ANDROMEDA      

	Witness	)

)	 	TERRA ANDROMEDA

QuickLinks

ARTICLE ONE DEFINITIONS AND INTERPRETATION

ARTICLE TWO RIGHTS OF EXECUTIVE

ARTICLE THREE PAYMENTS AND REVIEW

ARTICLE FOUR COMPLIANCE WITH THE CODE

ARTICLE FIVE MISCELLANEOUS

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