Document:

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                                                                       EXHIBIT 6

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              M.D.C. HOLDINGS, INC. AND THE GUARANTORS PARTY HERETO

                          5 1/2% SENIOR NOTES DUE 2013

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                             SUPPLEMENTAL INDENTURE

                            DATED AS OF MAY 19, 2003

                             ----------------------

                         U.S. BANK NATIONAL ASSOCIATION,
                                     TRUSTEE

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                                TABLE OF CONTENTS

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ARTICLE ONE  Scope of Supplemental Indenture; General........................................................2

ARTICLE TWO  Certain Definitions.............................................................................2

ARTICLE THREE  Redemption...................................................................................10

       Section 3.01.       Right of Redemption..............................................................10

ARTICLE FOUR  Covenants.....................................................................................11

       Section 4.01.       Restrictions on Secured Debt.....................................................11
       Section 4.02.       Limitations on Sale and Leaseback Transactions...................................13
       Section 4.03.       Additional Guarantees............................................................13
       Section 4.04.       SEC Reports......................................................................13

ARTICLE FIVE  Successor Corporation.........................................................................14

       Section 5.01.       Consolidation, Merger and Sale of Assets.........................................14

ARTICLE SIX  Guarantees.....................................................................................15

       Section 6.01.       Unconditional Guarantee..........................................................15
       Section 6.02.       Fraudulent Conveyance Limitation.................................................16
       Section 6.03.       Waiver...........................................................................16
       Section 6.04.       Subordinated Indebtedness........................................................17
       Section 6.05.       Execution of Guarantee...........................................................19
       Section 6.06.       Additional Guarantees and Release of Guarantees..................................19

ARTICLE SEVEN  Miscellaneous................................................................................20

       Section 7.01.       Confirmation of Indenture........................................................20
       Section 7.02.       Concerning the Trustee...........................................................20
       Section 7.03.       Governing Law....................................................................21
       Section 7.04.       Separability.....................................................................21
       Section 7.05.       Counterparts.....................................................................21
       Section 7.06.       No Adverse Interpretation of Other Agreements....................................21
       Section 7.07.       No Recourse Against Others.......................................................21
       Section 7.08.       Successors and Assigns...........................................................21
       Section 7.09.       Duplicate Originals..............................................................21
       Section 7.10.       Severability.....................................................................22
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                  SUPPLEMENTAL INDENTURE dated as of May 19, 2003 ("Supplemental
Indenture"), to the Senior Debt Securities Indenture dated as of December 3,
2002 (as amended, modified or supplemented from time to time in accordance
therewith, the "Indenture"), by and among M.D.C. HOLDINGS, INC., a Delaware
corporation (the "Company"), the Guarantors (as defined herein) and U.S. Bank
National Association, as trustee (the "Trustee").

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

                  WHEREAS, the Company and the Trustee have executed an
Indenture to provide for the issuance from time to time of senior debt
securities (the "Securities") to be issued in one or more series as in the
Indenture provided;

                  WHEREAS, the Company and the Guarantors desire and have
requested the Trustee to join them in the execution and delivery of this
Supplemental Indenture in order to establish and provide for the issuance by the
Company of a series of Securities designated as its 5 1/2% Senior Notes due
2013, substantially in the form attached hereto as Exhibit A, guaranteed by the
Guarantors, on the terms set forth herein;

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

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

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

                  NOW, THEREFORE:

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

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                                      -2-

                                   ARTICLE ONE

                    SCOPE OF SUPPLEMENTAL INDENTURE; GENERAL

                  The changes, modifications and supplements to the Indenture
effected by this Supplemental Indenture shall be applicable only with respect
to, and govern the terms of, the Notes, which shall not be limited in aggregate
principal amount, and shall not apply to any other Securities that may be issued
under the Indenture unless a supplemental indenture with respect to such other
Securities specifically incorporates such changes, modifications and
supplements. Pursuant to this Supplemental Indenture, there is hereby created
and designated a series of Securities under the Indenture entitled "5 1/2%
Senior Notes due 2013." The Notes shall be in the form of Exhibit A hereto. The
Notes shall be guaranteed by the Guarantors as provided in such form and the
Indenture. If required, the Notes may bear an appropriate legend regarding
original issue discount for federal income tax purposes and any other legend
required by applicable law or the rules of any exchange on which the Notes may
be listed.

                                   ARTICLE TWO

                               CERTAIN DEFINITIONS

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

                  "Attributable Debt" means, in respect of a Sale and Leaseback
Transaction, the present value (discounted at the weighted average effective
interest cost per annum of the outstanding debt securities of all series,
compounded semiannually) of the obligation of the lessee for rental payments
during the remaining term of the lease included in such transaction, including
any period for which such lease has been extended or may, at the option of the
lessor, be extended or, if earlier, until the earliest date on which the lessee
may terminate such lease upon payment of a penalty (in which case the obligation
of the lessee for rental payments shall include such penalty), after excluding
all amounts required to be paid on account of maintenance and repairs,
insurance, taxes, assessments, water and utility rates and similar charges.

                  "Business Day" means any day other than a Legal Holiday.

                  "Capital Stock" means any and all shares, interests,
participations or other equivalents (however designated) of or in a Person's
capital stock or other equity interests,

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                                      -3-

and options, rights or warrants to purchase such capital stock or other equity
interests, whether now outstanding or issued after the Issue Date, including,
without limitation, all Preferred Stock of such Person if such Person is a
corporation or membership interests if such Person is a limited liability
company and each general and limited partnership interest of such Person if such
Person is a partnership.

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

                  "Cash" means U.S. Legal Tender.

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

                  "Comparable Treasury Price" means, with respect to any
Redemption Date, (a) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third Business Day preceding such Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (b) if such release (or any successor release) is not
published or does not contain such price on such business day, (i) the average
of the Reference Treasury Dealer Quotations for such Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or
(ii) if the Trustee obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations.

                  "Consolidated Net Tangible Assets" means the total amount of
assets which would be included on a combined balance sheet of the Company and
the Guarantors under GAAP (less applicable reserves and other properly
deductible items) after deducting therefrom:

                  (1) all short-term liabilities, except for (x) liabilities
         payable by their terms more than one year from the date of
         determination (or renewable or extendible at the option of the obligor
         for a period ending more than one year after such date) and (y)
         liabilities in respect of retiree benefits other than pensions for
         which the Restricted Subsidiaries are required to accrue pursuant to
         Statement of Financial Accounting Standards No. 106;

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                  (2) investments in subsidiaries that are not Restricted
         Subsidiaries; and

                  (3) all goodwill, trade names, trademarks, patents,
         unamortized debt discount, unamortized expense incurred in the issuance
         of debt and other intangible assets.

                  "Consolidated Net Worth" of any Person means the consolidated
stockholders' equity of the Person determined in accordance with GAAP.

                  "Custodian" means any receiver, trustee, assignee, liquidator,
custodian, sequestrator or similar official under any Bankruptcy Law.

                  "Event of Default" means any one of the following events:

                  (a) default in the payment of interest on the Notes as and
         when the same becomes due and payable and the continuance of any such
         failure for 30 days;

                  (b) default in the payment of all or any part of the principal
         or premium, if any, on the Notes when and as the same become due and
         payable at maturity, at redemption, by declaration of acceleration or
         otherwise;

                  (c) default in the observance or performance of, or breach of,
         any covenant, agreement or warranty of the Company contained in the
         Notes , the Indenture or this Supplemental Indenture (unless
         specifically dealt with elsewhere), and continuance of such default or
         breach for a period of 60 days after there has been given, by
         registered or certified mail, to the Company by the Trustee, or to the
         Company and the Trustee by Holders of at least 25% in aggregate
         principal amount of the outstanding Notes, a written notice specifying
         such default or breach, requiring it to be remedied and stating that
         such notice is a "Notice of Default" hereunder;

                  (d) a decree, judgment, or order by a court of competent
         jurisdiction shall have been entered adjudging the Company or any of
         its Significant Subsidiaries as bankrupt or insolvent, or approving as
         properly filed a petition in an involuntary case or proceeding seeking
         reorganization of the Company or any of its Significant Subsidiaries
         under any bankruptcy or similar law, or a decree, judgment or order of
         a court of competent jurisdiction directing the appointment of a
         receiver, liquidator, trustee, or assignee in bankruptcy or insolvency
         of the Company, any of its Significant Subsidiaries, or of the assets
         or property of any such Person, or the winding up or liquidation of the
         affairs of any such Person, shall have been entered, and the
         continuance of any such decree, judgment or order unstayed and in
         effect for a period of 90 consecutive days;

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                                      -5-

                  (e) the Company or any of its Significant Subsidiaries shall
         institute proceedings to be adjudicated a voluntary bankrupt (including
         conversion of an involuntary proceeding into a voluntary proceeding),
         or shall consent to the filing of a bankruptcy proceeding against it,
         or shall file a petition or answer or consent to the filing of any such
         petition, or shall consent to the appointment of a Custodian, receiver,
         liquidator, trustee, or assignee in bankruptcy or insolvency of it or
         any of its assets or property, or shall make a general assignment for
         the benefit of creditors, or shall admit in writing its inability to
         pay its debts generally as they become due, or shall, within the
         meaning of any Bankruptcy Law, become insolvent, or fail generally to
         pay its debts as they become due;

                  (f) (i) the acceleration of any Indebtedness (other than
         Non-Recourse Indebtedness) of the Company or any of its Significant
         Subsidiaries (in accordance with the terms of such Indebtedness and
         after giving effect to any applicable grace period set forth in the
         documents governing such Indebtedness) that has an outstanding
         principal amount of $25,000,000 or more individually or $40,000,000 or
         more in the aggregate to be immediately due and payable; provided that,
         in the event any such acceleration is withdrawn or otherwise rescinded
         (including satisfaction of such Indebtedness) within a period of ten
         business days after such acceleration by the holders of such
         Indebtedness, any Event of Default under this clause (f) will be deemed
         to be cured and any acceleration hereunder will be deemed withdrawn or
         rescinded; or (ii) the failure by the Company or any of its Significant
         Subsidiaries to make any principal, premium, interest or other required
         payment in respect of Indebtedness (other than Non-Recourse
         Indebtedness) of the Company or any of its Significant Subsidiaries
         with an outstanding aggregate principal amount of $25,000,000 or more
         individually or $40,000,000 or more in the aggregate (after giving
         effect to any applicable grace period set forth in the documents
         governing such Indebtedness);

                  (g) one or more final nonappealable judgments (in the amount
         not covered by insurance or not reserved for) or the issuance of any
         warrant of attachment against any portion of the property or assets
         (except with respect to Non-Recourse Indebtedness) of the Company or
         any of its Restricted Subsidiaries, which are $25,000,000 or more
         individually or $40,000,000 or more in the aggregate, at any one time
         rendered against the Company or any of its Restricted Subsidiaries by a
         court of competent jurisdiction and not bonded, satisfied or discharged
         for a period (during which execution shall not be effectively stayed)
         of (i) 60 days after the judgment becomes final and such court shall
         not have ordered or approved, and the parties shall not have agreed
         upon, the payment of such judgment at a later date or dates or (ii) 60
         days after all or any part of such judgment is payable pursuant to any
         court order or agreement between the parties; or

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                  (h) the Guarantee of any Guarantor shall fail to remain in
         full force and effect except in accordance with this Indenture or any
         action shall be taken by any Guarantor to discontinue or to assert the
         invalidity or unenforceability of its Guarantee, or any Guarantor shall
         fail to comply with any of the terms or provisions of its Guarantee, or
         any Guarantor denies that it has any further liability under its
         Guarantee or gives notice to such effect.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Finance Subsidiary" means any Subsidiary of the Company
substantially all of whose operations consist of (a) the mortgage financing
business or (b) the insurance business.

                  "Funded Indebtedness" means notes, bonds, debentures or other
similar evidences of Indebtedness for money borrowed which by their terms mature
at or are extendible or renewable at the option of the obligor to a date more
than 12 months after the date of the creation of such debt.

                  "Guarantee" has the meaning set forth in Section 6.01 hereof.

                  "Guaranteed Indebtedness" has the meaning set forth in Section
6.06 hereof.

                  "Guaranteed Obligations" has the meaning set forth in Section
6.01 hereof.

                  "Guarantors" means M.D.C. Land Corporation, RAH of Texas, LP,
RAH Texas Holdings, LLC, Richmond American Construction, Inc., Richmond American
Homes of Arizona, Inc., Richmond American Homes of California, Inc., Richmond
American Homes of California (Inland Empire), Inc., Richmond American Homes of
Colorado, Inc., Richmond American Homes of Maryland, Inc., Richmond American
Homes of Nevada, Inc., Richmond American Homes of Texas, Inc., Richmond American
Homes of Utah, Inc., Richmond American Homes of Virginia, Inc., and Richmond
American Homes of West Virginia, Inc.; and any other Subsidiary of the Company
that executes and delivers a guarantee of the Notes pursuant to the provisions
of the Indenture.

                  "Indebtedness" means (a) any liability of any Person (i) for
borrowed money, or (ii) evidenced by a bond, note, debenture or similar
instrument (including a purchase money obligation) given in connection with the
acquisition of any businesses, properties or assets of any kind (other than a
trade payable or a current liability arising in the ordinary course of
business), or (iii) for the payment of money relating to a Capitalized Lease
Obligation or (iv) for all Redeemable Capital Stock valued at the greater of its
voluntary or involuntary liquidation preference plus accrued and unpaid
dividends; (b) any liability of others described in the preceding clause (a)
that such Person has guaranteed or that is otherwise its legal liability; (c)
all Indebtedness referred to in (but not excluded from) clauses (a) and (b)

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                                      -7-

above of other Persons and all dividends of other Persons, the payment of which
is secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Security Interest upon or
in property (including, without limitation, accounts and contract rights) owned
by such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness; and (d) any amendment, supplement, modification,
deferral, renewal, extension or refunding of any liability of the types referred
to in clauses (a), (b) and (c) above.

                  "Interest Payment Date" means the stated due date of an
installment of interest on the Notes.

                  "Issue Date" means May 19, 2003, the date of original issuance
of the Notes.

                  "1998 Indenture" means the indenture dated as of January 28,
1998 between the Company and U.S. Bank National Association as trustee, as
amended or supplemented from time to time.

                  "Legal Holiday" means a Saturday, a Sunday, a legal holiday or
a day on which banking institutions in Denver, Colorado and New York, New York
are not required to be open.

                  "Non-Recourse Indebtedness" means Indebtedness or other
obligations secured by a lien on property to the extent that the liability for
the Indebtedness or other obligations is limited to the security of the property
without liability on the part of the Company or any Restricted Subsidiary (other
than the Restricted Subsidiary which holds title to the property) for any
deficiency.

                  "Notes" means the 5 1/2% Senior Notes due 2013 created under
Article One hereof.

                  "Paying Agent" means an office or agency where Notes may be
presented for payment.

                  "Person" means any individual, corporation, partnership,
limited liability company, joint venture, incorporated or unincorporated
association, joint stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

                  "Preferential Payment" has the meaning set forth in Section
6.01.

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

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                                      -8-

                  "Primary Treasury Dealer" means a primary U.S. Government
securities dealer in New York City.

                  "Record Date" means a Record Date specified in the Notes
whether or not such Record Date is a Business Day.

                  "Redeemable Capital Stock" means any Capital Stock of the
Company or any of its Subsidiaries that, either by its terms, by the terms of
any security into which it is convertible or exchangeable or otherwise, (a) is
or upon the happening of an event or passage of time would be required to be
redeemed on or prior to the final stated maturity of the securities or (b) is
redeemable at the option of the holder thereof at any time prior to such final
stated maturity or (c) is convertible into or exchangeable for debt securities
at any time on or prior to such final stated maturity.

                  "Redemption Date," when used with respect to any Note to be
redeemed, means the date fixed for such redemption pursuant to this Indenture
and Paragraph 5 of the Notes.

                  "Redemption Price," when used with respect to any Note to be
redeemed, means the price for such redemption pursuant to Paragraph 5 of the
Notes, which shall include, without duplication, in each case, accrued and
unpaid interest to the Redemption Date.

                  "Reference Treasury Dealer" means (a) Citigroup Global Markets
Inc., or one of the other Underwriters for the Notes, issued on the Issue Date
(or their respective affiliates which are Primary Treasury Dealers), and their
respective successors; provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, the Company will substitute therefor
another Primary Treasury Dealer, and (b) any other Primary Treasury Dealer(s)
selected by the Company.

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

                  "Registrar" means the office or agency where Notes may be
presented for registration of transfer or for exchange.

                  "Remaining Scheduled Payments" means, with respect to any
Note, the remaining scheduled payments of the principal thereof to be redeemed
and interest thereon that would be due after the related Redemption Date but for
such redemption; provided, however, that if such Redemption Date is not an
Interest Payment Date with respect to such Note, the

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                                      -9-

amount of the next succeeding scheduled interest payment thereon will be reduced
by the amount of interest accrued thereon to such Redemption Date.

                  "Restricted Subsidiary" means any Guarantor and any successor
to such Guarantor.

                  "Sale and Leaseback Transaction" means a sale or transfer made
by the Company or a Restricted Subsidiary (except a sale or transfer made to the
Company or a Restricted Subsidiary) of any property which is either (a) a
manufacturing facility, office building or warehouse whose book value equals or
exceeds 1% of Consolidated Net Tangible Assets as of the date of determination
or (b) another property (not including a model home) which exceeds 5% of
Consolidated Net Tangible Assets as of the date of determination, if such sale
or transfer is made with the agreement, commitment or intention of leasing such
property to the Company or a Restricted Subsidiary for more than a three-year
term.

                  "Secured Debt" means any Indebtedness, except Indebtedness of
the Finance Subsidiaries, which is secured by (i) a Security Interest in any of
the property of the Company or any Restricted Subsidiary or (ii) a Security
Interest in shares of stock owned directly or indirectly by the Company or a
Restricted Subsidiary in a corporation or in equity interests owned by the
Company or a Restricted Subsidiary in a partnership or other entity not
organized as a corporation or in the Company's rights or the rights of a
Restricted Subsidiary in respect of Indebtedness of a corporation, partnership
or other entity in which the Company or a Restricted Subsidiary has an equity
interest. The securing in the foregoing manner of any such Indebtedness which
immediately prior thereto was not Secured Debt shall be deemed to be the
creation of Secured Debt at the time security is given.

                  "Security Interests" means any mortgage, pledge, lien,
encumbrance or other security interest which secures the payment or performance
of an obligation.

                  "Significant Subsidiary" means any Subsidiary (a) whose
revenues exceed 10% of our total consolidated revenues, in each case for the
most recent fiscal year, or (b) whose net worth exceeds 10% of our total
stockholders' equity, in each case as of the end of the most recent fiscal year.

                  "Specified Indebtedness" means Indebtedness under (i) the
Notes, (ii) the 1998 Indenture, (iii) the Indenture and (iv)the Second Amended
and Restated Credit Agreement dated as of July 30, 2002, among the Company and
the banks named therein, as amended or supplemented from time to time, and any
refinancing, extension, renewal or replacement of any of the foregoing.

                  "Stated Maturity" when used with respect to any Note, means
December 1, 2012.

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                                      -10-

                  "Subordinated Indebtedness" means Indebtedness of the Company
which is subordinated in right of payment to the prior payment in full,
including all payment of principal, premium and all accrued interest (and
post-petition interest) on, and all other amounts owing in connection with the
Notes.

                  "Subsidiary" means any Person of which at the time of
determination by the Company, directly and/or indirectly through one or more
Subsidiaries, the Company owns more than 50% of the shares of its Voting Stock.

                  "Supplemental Indenture" has the meaning set forth in Article
One hereof.

                  "TIA" means the Trust Indenture Act of 1939, as in effect from
time to time.

                  "Treasury Rate" means, with respect to any Redemption Date,
the rate per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such Redemption Date.

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

                  "U.S. Legal Tender" means such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.

                  "Voting Stock" means any class or classes of Capital Stock
pursuant to which the holders thereof have the general voting power under
ordinary circumstances to elect at least a majority of the board of directors,
managers or trustees of any Person (irrespective of whether or not, at the time,
stock of any other class or classes shall have, or might have, voting power by
reason of the happening of any contingency).

                                  ARTICLE THREE

                                   REDEMPTION

Section 3.01.     Right of Redemption.

                  Redemption of Notes, as permitted by any provision of this
Indenture, shall be made in accordance with such provision and Article Three of
the Indenture.

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                                      -11-

                  The Notes may be redeemed at the election of the Company, in
whole at any time or in part from time to time, on at least 30 but not more than
60 days' prior notice, at a Redemption Price equal to the greater of (i) 100% of
their principal amount, and (ii) the present value of the Remaining Scheduled
Payments on the Notes being redeemed on the Redemption Date, discounted to the
Redemption Date, on a semiannual basis, at the Treasury Rate plus 30 basis
points (0.30%), plus, in each case, accrued and unpaid interest, if any, on the
Notes to the Redemption Date. In determining the Redemption Price and accrued
interest, interest shall be calculated on the basis of a 360-day year consisting
of twelve 30-day months.

                  If money sufficient to pay the redemption price of and accrued
interest on the Notes to be redeemed is deposited with the Trustee on or before
the Redemption Date, on and after the Redemption Date interest will cease to
accrue on the Notes (or such portions thereof) called for redemption and the
Notes will cease to be outstanding.

                  On and after the Redemption Date, interest will cease to
accrue on the Notes or any portion of the Notes called for redemption (unless
the Company defaults in the payment of the redemption price and accrued
interest). On or before the Redemption Date, the Company will deposit with a
paying agent (or the Trustee) money sufficient to pay the redemption price of
and accrued interest on the Notes to be redeemed on that date. If less than all
of the Notes are to be redeemed, the Notes to be redeemed shall be selected by
lot by DTC, in the case of Notes represented by a global security.

                                  ARTICLE FOUR

                                    COVENANTS

                  The following additional covenants will apply with respect to
the Notes:

Section 4.01.     Restrictions on Secured Debt.

                  The Company will not, and will not cause or permit a
Restricted Subsidiary (other than any Finance Subsidiary) to, create, incur,
assume or guarantee any Secured Debt unless the Notes will be secured equally
and ratably with (or prior to) such Secured Debt, with certain exceptions. This
restriction does not prohibit the creation, incurrence, assumption or guarantee
of Secured Debt which is secured by:

                  (1) Security Interests in model homes, homes held for sale,
         homes that are under contract for sale, contracts for the sale of
         homes, land (improved or unimproved), manufacturing plants, warehouses
         or office buildings and fixtures and equipment located thereat or
         thereon;

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                                      -12-

                  (2) Security Interests in property at the time of its
         acquisition by the Company or a Restricted Subsidiary, including
         Capitalized Lease Obligations, which Security Interests secure
         obligations assumed by the Company or a Restricted Subsidiary, or in
         the property of a corporation or other entity at the time it is merged
         into or consolidated with the Company or a Restricted Subsidiary (other
         than Secured Debt created in contemplation of the acquisition of such
         property or the consummation of such a merger or where the Security
         Interest attaches to or affects the property of the Company or a
         Restricted Subsidiary prior to such transaction);

                  (3) Security Interests arising from conditional sales
         agreements or title retention agreements with respect to property
         acquired by the Company or a Restricted Subsidiary;

                  (4) Security Interests incurred in connection with pollution
         control, industrial revenue, water, sewage or any similar item; and

                  (5) Security Interests securing Indebtedness of a Restricted
         Subsidiary owing to the Company or a Restricted Subsidiary that is
         wholly owned (directly or indirectly) by the Company or Security
         Interests securing the Company's Indebtedness owing to a Guarantor.

                  Such permitted Secured Debt also includes any amendment,
restatement, supplement, renewal, replacement, extension or refunding, in whole
or in part, of Secured Debt permitted at the time of the original incurrence
thereof.

                  In addition, the Company and the Guarantors may create, incur,
assume or guarantee Secured Debt, without equally and ratably securing the
Notes, if immediately thereafter the sum of (1) the aggregate principal amount
of all Secured Debt outstanding (excluding Secured Debt permitted under clauses
(1) through (5) above and any Secured Debt in relation to which the Notes have
been equally and ratably secured) and (2) all Attributable Debt in respect of
Sale and Leaseback Transactions (excluding Attributable Debt in respect of Sale
and Leaseback Transactions as to which the provisions of clauses (1) through (3)
under Section 4.02 have been complied with) as of the date of determination
would not exceed 20% of Consolidated Net Tangible Assets.

                  The provisions described above with respect to limitations on
Secured Debt are not applicable to Non-Recourse Indebtedness by virtue of the
definition of Secured Debt, and will not restrict the Company's or the
Guarantors' ability to create, incur, assume or guarantee any unsecured
Indebtedness, or of any Subsidiary which is not a Restricted Subsidiary to
create, incur, assume or guarantee any secured or unsecured Indebtedness.

<PAGE>

                                      -13-

Section 4.02.     Limitations on Sale and Leaseback Transactions.

                  The Company will not, and will not cause or permit any
Restricted Subsidiary to, enter into any Sale and Leaseback Transaction unless
(1) the net proceeds to the Company or such Restricted Subsidiary from such sale
or transfer equal or exceed the fair value (as determined by the Board of
Directors, chairman of the board, vice chairman, president or principal
financial officer of the Company) of the property or asset so leased, (2) the
Company or such Restricted Subsidiary would be entitled to incur Secured Debt
pursuant to Section 4.01, (3) the Company or any Restricted Subsidiary shall,
and in any case the Company and the Restricted Subsidiaries, covenant that they
will, within 180 days of the effective date of any Sale and Leaseback
Transaction, apply an amount equal to the fair value of the property so leased
to the retirement of Funded Indebtedness, (4) the Sale and Leaseback Transaction
relates to a sale which occurred within 180 days from the date of acquisition of
such property or asset by the Company or a Restricted Subsidiary or the date of
the completion of construction or commencement of full operations on such
property, whichever is later, or (5) the Sale and Leaseback Transaction was
consummated prior to the date of this Supplemental Indenture.

Section 4.03.     Additional Guarantees.

                  The Company shall not permit any Subsidiary that is not a
Guarantor, directly or indirectly, to guarantee any obligations of the Company
under the Specified Indebtedness unless such Subsidiary simultaneously executes
and delivers to the Trustee a supplemental indenture, in a form reasonably
satisfactory to the Trustee, pursuant to which such Subsidiary guarantees,
jointly and severally with all other Guarantors, on the same basis as the
Specified Indebtedness is guaranteed, the Company's obligations under the
Indenture and the Notes. The Company shall deliver to the Trustee an opinion of
counsel that such supplemental indenture has been duly authorized, executed and
delivered by such Subsidiary and, subject to customary exceptions, constitutes a
valid and legally binding and enforceable obligation of such Subsidiary.

Section 4.04.     SEC Reports.

                  The Company shall deliver to the Trustee and each Holder,
within 15 days after it files the same with the SEC, copies of all reports and
information (or copies of such portions of any of the foregoing as the SEC may
by rules and regulations prescribe), if any, exclusive of exhibits, which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act or pursuant to the immediately following sentence. So long as any
Notes remain outstanding, the Company shall file with the Commission such
reports as may be required pursuant to Section 13 of the Exchange Act in respect
of a security registered pursuant to Section 12 of the Exchange Act. If the
Company is not subject to the requirements of Section 13 or 15(d) of the
Exchange Act (or otherwise required to file reports pursuant to the immediately
preceding sentence), the Company shall deliver to the Trustee and to each

<PAGE>

                                      -14-

Holder, within 15 days after it would have been required to file such
information with the SEC were it required to do so, financial statements,
including any notes thereto (and, in the case of a fiscal year end, an auditors'
report by an independent certified public accounting firm of established
national reputation), and a "Management's Discussion and Analysis of Financial
Condition and Results of Operations," substantially equivalent to that which it
would have been required to include in such quarterly or annual reports,
information, documents or other reports if it had been subject to the
requirements of Section 13 or 15(d) of the Exchange Act. The Company shall also
comply with the other provisions of TIA Section 314(a).

                  The Trustee has no duty to review the financial reports and
other information for the purpose of determining compliance with any provision
of this Indenture.

                                  ARTICLE FIVE

                              SUCCESSOR CORPORATION

                  Article Five of the Indenture is replaced with the following
in its entirety:

Section 5.01.     Consolidation, Merger and Sale of Assets.

                  Neither the Company nor the Guarantors will consolidate or
merge into or sell, assign, transfer or lease all or substantially all of their
assets to another person unless:

                  (1) the person is a corporation organized under the laws of
         the United States of America or any state thereof;

                  (2) the person assumes by supplemental indenture, in a form
         reasonably satisfactory to the Trustee, all of the obligations of the
         Company or such Guarantor, as the case may be, relating to the Notes,
         the Guarantees and the Indenture, as the case may be; and

                  (3) immediately after the transaction no Event of Default
         exists; provided that this clause (3) will not restrict or be
         applicable to a merger, consolidation or liquidation of a Guarantor
         with or into the Company or another Subsidiary that is wholly owned,
         directly or indirectly, by the Company that is, or concurrently with
         the completion of such merger, consolidation or liquidation becomes, a
         Guarantor or a Restricted Subsidiary that is wholly owned, directly or
         indirectly, by the Company.

                  Upon any such consolidation, merger, sale, assignment or
transfer, the successor corporation will be substituted for the Company or such
Guarantor (including any merger or consolidation described in the proviso at the
end of the immediately preceding sentence), as

<PAGE>

                                      -15-

applicable, under the Indenture. The successor corporation may then exercise
every power and right of the Company or such Guarantor under the Indenture, and
the Company or such Guarantor, as applicable, will be released from all of its
respective liabilities and obligations in respect of the Notes and the
Indenture. If the Company or any Guarantor leases all or substantially all of
its assets, the lessee corporation will be the successor to the Company or such
Guarantor and may exercise every power and right of the Company or such
Guarantor, as the case may be, under the Indenture, but the Company or such
Guarantor, as the case may be, will not be released from its respective
obligations to pay the principal of and premium, if any, and interest, if any,
on the Notes.

                                   ARTICLE SIX

                                   GUARANTEES

Section 6.01.     Unconditional Guarantee.

                  Each Guarantor hereby fully and unconditionally, jointly and
severally, guarantees (each such guarantee to be referred to herein as the
"Guarantee") to the Holders of the Notes and to the Trustee and its successors
and assigns that: (i) the principal of and interest on the Notes will be
promptly paid in full when due, subject to any applicable grace period, whether
at maturity, by acceleration or otherwise and interest on the overdue principal,
if any, and interest on any interest of the Notes and all other obligations of
the Company to the Holders or the Trustee hereunder or thereunder will be
promptly paid in full or performed, all in accordance with the terms hereof and
thereof; and (ii) in case of any extension of time of payment or renewal of any
Notes or of any such other obligations, the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal,
subject to any applicable grace period, whether at stated maturity, by
acceleration or otherwise (collectively, the "Guaranteed Obligations"), subject,
however, in the case of clauses (i) and (ii) above, to the limitations set forth
in Section 6.02. Each Guarantor hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or the Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of Notes with respect to
any provisions hereof or thereof, the recovery of any judgment against the
Company, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor.

                  The obligations of the Guarantors hereunder are separate and
independent of the obligations of the Company and of any other guarantor, and a
separate action or actions may be brought and prosecuted against the Guarantor
whether action is brought against the Company or any other guarantor or whether
the Company or any other guarantor is joined in

<PAGE>

                                      -16-

any action or actions. The obligations of the Guarantor hereunder shall survive
and continue in full force and effect until the earlier of (i) such time as the
Guarantor may be released from its obligations hereunder pursuant to the terms
Section 6.06 hereof, or (ii) payment in full of the Guaranteed Obligations is
actually received by the Holders or the Trustee on behalf of the Holders and the
period of time has expired during which any payment made by the Company or the
Guarantor may be determined to be a Preferential Payment (defined below),
notwithstanding any release or termination of the Company's or any other
Guarantor's liability by express or implied agreement or by operation of law and
notwithstanding that the Guaranteed Obligations or any part thereof are deemed
to have been paid or discharged by operation of law or by some act or agreement.
For purposes of this Guarantee, the Guaranteed Obligations shall be deemed to be
paid only to the extent that the Holders, or the Trustee on behalf of the
Holders, actually receive immediately available funds.

                  The Guarantors agree that to the extent the Company or any
other guarantor makes any payment to the Holders, or to the Trustee on behalf of
the Holders, in connection with the Guaranteed Obligations, and all or any part
of such payment is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid by the Holders or the Trustee
or paid over to a trustee, receiver or any other entity, whether under any
bankruptcy act or otherwise (any such payment is hereinafter referred to as a
"Preferential Payment"), then this Guarantee shall continue to be effective or
shall be reinstated, as the case may be, and, to the extent of such payment or
repayment by the Holders or Trustee, the Guaranteed Obligations or part thereof
intended to be satisfied by such Preferential Payment shall be revived and
continued in full force and effect as if said Preferential Payment had not been
made.

Section 6.02.     Fraudulent Conveyance Limitation.

                  Notwithstanding any contrary provision, the amount of the
Guaranteed Obligations guaranteed by the Guarantor under this Guarantee shall
be, but not in excess of, the maximum amount permitted by fraudulent conveyance,
fraudulent transfer or similar laws applicable to the Guarantor. Accordingly,
notwithstanding anything to the contrary contained in this Guarantee or any
other agreement or instrument executed in connection with the payment of the
Guaranteed Obligations, the amount of the Guaranteed Obligations guaranteed by
the Guarantor by this Guarantee shall be limited to an aggregate amount equal to
the largest amount that would not render the Guarantor's obligations hereunder
subject to avoidance under any Bankruptcy Law.

Section 6.03.     Waiver.

                  Each Guarantor waives and agrees not to assert: (a) any right
to require the Holders or Trustee to proceed against the Company or any other
guarantor, to proceed against or exhaust any security for the Guaranteed
Obligations, to pursue any other remedy available

<PAGE>

                                      -17-

to the Holders or Trustee or to pursue any remedy in any particular order or
manner; (b) the benefit of any statute of limitations affecting Guarantor's
liability hereunder or the enforcement hereof; (c) demand, diligence,
presentment for payment, protest and demand, and notice of extension, dishonor,
protest, demand, nonpayment and acceptance of this Guarantee; (d) notice of the
existence, creation or incurring of new or additional indebtedness of the
Company to the Holders; and (e) any defense arising by reason of any disability
or other defense of the Company or by reason of the cessation from any cause
whatsoever (other than payment in full of all amounts demanded to be paid by the
Guarantor under this Guarantee) of the liability of the Company for the
Guaranteed Obligations. Each Guarantor hereby expressly consents to any
impairment of collateral, including, but not limited to, failure to perfect a
security interest and release collateral and any such impairment or release
shall not affect Guarantors' obligations hereunder. Until payment in full of the
Guaranteed Obligations, no Guarantor shall have a right of subrogation and
hereby waives any right to enforce any remedy which the Holders or the Trustee
now have, or may hereafter have, against the Company, and waives any benefit of,
any right to participate in, any security now or hereafter held on behalf of the
Holders.

Section 6.04.     Subordinated Indebtedness.

                  If from time to time the Company shall have liabilities or
obligations to the Guarantors, whether absolute or contingent, joint, several,
or joint and several, such liabilities and obligations (the "Subordinated
Indebtedness") and any and all assignments as security, grants in trust, liens,
mortgages, security interests, other encumbrances, and other interests and
rights securing such liabilities and obligations shall at all times be fully
subordinate to payment and performance in full of the Guaranteed Obligations.
Each Guarantor agrees that such liabilities and obligations of the Company to
Guarantor shall not be secured by any assignment as security, grant in trust,
lien, mortgage, security interest, other encumbrance or other interest or right
in any property, interests in property, or rights to property of the Company.
Each Guarantor agrees that (i) so long as no Event of Default has occurred and
is continuing, payments of principal and interest on the Subordinated
Indebtedness may be made by the Company and accepted by Guarantor as such
payments become due; and (ii) after the occurrence and during the continuation
of an Event of Default, the Company shall not make and Guarantor shall not
accept any payments with respect to the Subordinated Indebtedness. If,
notwithstanding the foregoing, subsequent to an Event of Default, Guarantor
receives any payment from the Company, such payment shall be held in trust by
Guarantor for the benefit of the Holders, and shall be segregated from the other
funds of Guarantor, and shall forthwith be paid by Guarantor to the Holders or
to the Trustee on behalf of the Holders and applied to payment of the Guaranteed
Obligations whether or not then due.

                  In the event of any distribution, division, or application,
partial or complete, voluntary or involuntary, by operation of law or otherwise,
of all or any part of the assets of the Company, or the proceeds thereof, to
creditors of the Company, by reason of the liquidation,

<PAGE>

                                      -18-

dissolution, or other winding up of the Company's business, or in the event of
any receivership, insolvency or bankruptcy proceedings by or against the
Company, or assignment for the benefit of creditors, or of any proceedings by or
against the Company for any relief under any bankruptcy or insolvency laws, or
relating to the relief of debtors, readjustment of indebtedness,
reorganizations, arrangements, compositions or extensions, or of any other event
whereby it becomes necessary or desirable to file or present claims against the
Company for the purpose of receiving payment thereof, or on account thereof,
then and in any such event, any payment or distribution of any kind or
character, either in cash or other property, which shall be made or shall be
payable with respect to any Subordinated Indebtedness shall be paid over to the
Holders or to the Trustee on behalf of the Holders for application to the
payment of the Guaranteed Obligations, whether due or not due, and no payments
shall be made upon or in respect of the Subordinated Indebtedness unless and
until the Guaranteed Obligations shall have been paid and satisfied in full. In
any such event, all claims of the Holders and all claims of Guarantor shall, at
the option of the Trustee, forthwith become due and payable without demand or
notice.

                  In the event of any distribution, division, or application,
partial or complete, voluntary or involuntary, by operation of law or otherwise,
of all or any part of the assets of the Company, or the proceeds thereof, to
creditors of the Company, by reason of the liquidation, dissolution, or other
winding up of the Company's business, or in the event of any receivership,
insolvency or bankruptcy proceedings by or against the Company, or assignment
for the benefit of creditors, or of any proceedings by or against the Company
for any relief under any bankruptcy or insolvency laws, or relating to the
relief of debtors, readjustment of indebtedness, reorganizations, arrangements,
compositions or extensions, or of any other event whereby it becomes necessary
or desirable to file or present claims against the Company for the purpose of
receiving payment thereof, or on account thereof, each Guarantor irrevocably
authorizes and empowers the Trustee, or any person the Trustee may designate, to
act as attorney for Guarantor with full power and authority in the name of
Guarantor, or otherwise, to make and present such claims or proofs of claims
against the Company on account of the Subordinated Indebtedness as the Trustee,
or its appointee, may deem expedient and proper and, if necessary, to vote such
claims in any proceedings and to receive and collect for the benefit of the
Holders any and all dividends or other payments and disbursements made thereon
in whatever form they may be paid or issued, and to give acquittance therefor
and to apply same to the Guaranteed Obligations, and each Guarantor hereby
agrees, from time to time and upon request, to make, execute and deliver to the
Trustee such powers of attorney, assignments, endorsements, proofs of claim,
pleadings, verifications, affidavits, consents, agreements or other instruments
as may be requested by the Trustee in order to enable the Trustee and the
Holders to enforce any and all claims upon, or with respect to, the Subordinated
Indebtedness, and to collect and receive any and all payments or distributions
which may be payable or deliverable at any time upon or with respect to the
Subordinated Indebtedness.

<PAGE>

                                      -19-

                  Except as otherwise permitted herein, should any payment or
distribution or security or proceeds thereof be received by a Guarantor upon or
with respect to the Subordinated Indebtedness prior to the satisfaction of the
Guaranteed Obligations, such Guarantor will forthwith deliver the same to the
Trustee on behalf of the Holders in precisely the form as received except for
the endorsement or assignment of the Guarantor where necessary for application
on the Guaranteed Obligations, whether due or not due, and until so delivered
the same shall be held in trust by Guarantor as property of the Trustee on
behalf of the Holders. In the event of the failure of Guarantor to make any such
endorsement or assignment, the Trustee, or any of its officers or employees, on
behalf of the Trustee, is hereby irrevocably authorized to make the same.

                  Each Guarantor agrees to maintain in its records notations
satisfactory to the Trustee of the rights and priorities of the Holders
hereunder, and from time to time, upon request, to furnish the Trustee for the
benefit of the Holders with sworn financial statements. The Trustee may inspect
the books of account and any records of each Guarantor at any time during
business hours. Each Guarantor agrees that any promissory note now or hereafter
evidencing the Subordinated Indebtedness shall be nonnegotiable and shall be
marked with a specific statement that the indebtedness thereby evidenced is
subject to the provisions of this Guarantee.

Section 6.05.     Execution of Guarantee.

                  Each Guarantor hereby agrees to execute a notation of
Guarantee in substantially the form attached to the form of Note, and to deliver
such notation to the Trustee.

Section 6.06.     Additional Guarantees and Release of Guarantees.

                  (a) The Company shall not permit any of its Restricted
Subsidiaries, directly or indirectly, to guarantee any Specified Indebtedness
("Guaranteed Indebtedness") unless such Restricted Subsidiary simultaneously
executes and delivers to the Trustee a supplemental indenture, in a form
reasonably satisfactory to the Trustee, pursuant to which such Restricted
Subsidiary guarantees, jointly and severally with all other Guarantors, on the
same basis as such Guaranteed Indebtedness is guaranteed, the Guaranteed
Obligations. If the Guaranteed Indebtedness (1) ranks pari passu in right of
payment with the Notes, then the guarantee of such Guaranteed Indebtedness shall
rank pari passu with, or be subordinated in right of payment to, the Guarantee
of such Restricted Subsidiary or (2) is subordinated by its terms in right of
payment to the Notes, then the guarantee of such Guaranteed Indebtedness shall
be subordinated to the Guarantee of such Restricted Subsidiary at least to the
extent that the Guaranteed Indebtedness is subordinated to the Notes.

                  (b) The Guarantee of any Guarantor will be automatically
and unconditionally released and discharged so long as:

<PAGE>

                                      -20-

                  (i) no Default or Event of Default exists or would result from
         release of such Guarantee;

                  (ii) the Guarantor being released has Consolidated Net Worth
         of less than 5% of the Company Consolidated Net Worth as of the end of
         the most recent fiscal quarter;

                  (iii) the Guarantors released from their Guarantees in any
         year-end period comprise in the aggregate less than 10% (or 15% if and
         to the extent necessary to permit the Company to cure a Default) of the
         Company's Consolidated Net Worth as of the end of the most recent
         fiscal quarter;

                  (iv) such release would not have a material adverse effect on
         the homebuilding business of the Company and its Subsidiaries; and

                  (v) the Guarantor is released from its guarantee(s) under the
         Specified Indebtedness;

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

                  (c) If there are no guarantors under any Specified
Indebtedness, Guarantors under this Indenture Supplement will be released from
their Guarantees.

                                  ARTICLE SEVEN

                                  MISCELLANEOUS

Section 7.01.     Confirmation of Indenture.

                  The Indenture, as supplemented and amended by this
Supplemental Indenture, is in all respects ratified and confirmed, and the
Indenture, this Supplemental Indenture and all indentures supplemental thereto
shall be read, taken and construed as one and the same instrument.

Section 7.02.     Concerning the Trustee.

                  The rights and duties of the Trustee set forth in Article
Seven of the Indenture shall not be modified by reason of this Supplemental
Indenture.

<PAGE>

                                      -21-

Section 7.03.     Governing Law.

                  This Supplemental Indenture, the Indenture, the Notes, and the
Guarantee shall be governed by the laws of the State of New York.

Section 7.04.     Separability.

                  In case any one or more of the provisions contained in this
Supplemental Indenture shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Supplemental Indenture, but this
Supplemental Indenture shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

Section 7.05.     Counterparts.

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

Section 7.06.     No Adverse Interpretation of Other Agreements.

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

Section 7.07.     No Recourse Against Others.

                  All liability described in Paragraph 12 of the Notes of any
director, officer, employee or stockholder, as such, of the Company or any
Guarantor is waived and released.

Section 7.08.     Successors and Assigns.

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

Section 7.09.     Duplicate Originals.

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

<PAGE>

                                      -22-

Section 7.10.     Severability.

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

                            [Signature Page Follows]

<PAGE>

                                       S-1

                                   SIGNATURES

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

                                     M.D.C. HOLDINGS, INC.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                     GUARANTORS:

                                     M.D.C LAND CORPORATION
                                     RAH OF TEXAS, LP
                                     RAH TEXAS HOLDINGS, LLC
                                     RICHMOND AMERICAN CONSTRUCTION, INC.
                                     RICHMOND AMERICAN HOMES OF ARIZONA, INC.
                                     RICHMOND AMERICAN HOMES OF CALIFORNIA, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       CALIFORNIA (INLAND EMPIRE), INC.
                                     RICHMOND AMERICAN HOMES OF COLORADO, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       MARYLAND, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       NEVADA, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       TEXAS, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       UTAH, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       VIRGINIA, INC.
                                     RICHMOND AMERICAN HOMES OF
                                       WEST VIRGINIA, INC.

<PAGE>

                                      S-2

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:

<PAGE>

                                      S-3

U.S. Bank National Association, as Trustee

By:
   ---------------------------------------
   Name:
   Title:  Authorized Signatory

<PAGE>

                                                                       Exhibit A

                  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS SECURITY IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS
SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                      A-1
<PAGE>

                            CUSIP No.:

                          5 1/2% Senior Notes due 2013

                              M.D.C. HOLDINGS, INC.
                             a Delaware corporation

                               promises to pay to

                                   Cede & Co.

                              or registered assigns
                            the principal sum of $ on
                                  May 15, 2013.
                          5 1/2% Senior Notes due 2013

        Interest Payment Dates:                           May 15 and November 15
        Record Dates:                                       May 1 and November 1

Dated:            , 2003

                                         M.D.C. HOLDINGS, INC.

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      A-2
<PAGE>

U.S. Bank National Association, as Trustee, certifies that this
is one of the Notes referred to in the within mentioned
Indenture.

By:
   ----------------------------------------
   Name:
   Authorized Signatory

                                      A-3
<PAGE>

                              M.D.C. HOLDINGS, INC.
                          5 1/2% Senior Notes due 2013

1.       Interest.

                  M.D.C. HOLDINGS, INC. (the "Company"), a Delaware corporation,
promises to pay interest on the principal amount of this Note at the rate per
annum shown above. The Company will pay interest semiannually on May 15 and
November 15 of each year until the principal is paid or made available for
payment. Interest on the Notes will accrue from the most recent date to which
interest has been paid or duly provided for or, if no interest has been paid,
from May 19, 2003; provided that, if there is no existing default in the payment
of interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding interest payment date, interest shall
accrue from such interest payment date. Interest will be computed on the basis
of a 360-day year of twelve 30-day months.

2.       Method of Payment.

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

3.       Paying Agent and Registrar.

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

4.       Indenture.

                  The Company issued the Notes under an Indenture dated as of
December 3, 2002 between the Company and the Trustee, as supplemented by a
Supplemental Indenture dated as of May 19, 2003 among the Company, the
Guarantors and the Trustee (together, the "Indenture"). The terms of the Notes
and the Guarantees include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 ("TIA") as in
effect on the date of the Indenture. The Notes and the Guarantees are subject to
all such terms, and Holders are referred to the Indenture and the TIA for a
statement of them.

                                      A-4
<PAGE>

                  The Company will furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to: M.D.C.
Holdings, Inc., 3600 South Yosemite, Suite 900, Denver, Colorado 80237,
Attention: Secretary.

5.       Optional Redemption.

                  The Notes will be redeemable at the option of the Company, in
whole at any time or in part from time to time, on at least 30 but not more than
60 days' prior notice, at a Redemption Price equal to the greater of (i) 100% of
their principal amount, and (ii) the present value of the Remaining Scheduled
Payments on the Notes being redeemed on the Redemption Date, discounted to the
Redemption Date, on a semiannual basis, at the Treasury Rate plus 30 basis
points (0.30%), plus, in each case, accrued and unpaid interest on the Notes to
the Redemption Date. In determining the Redemption Price and accrued interest,
interest shall be calculated on the basis of a 360-day year consisting of twelve
30-day months.

                  Notice of redemption will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be
redeemed at his registered address. Notes in denominations larger than $1,000
may be redeemed in part. On and after the Redemption Date, interest ceases to
accrue on Notes or portions of them called for redemption; provided that if the
Company shall default in the payment of such Note at the redemption price
together with accrued interest, interest shall continue to accrue at the rate
borne by the Notes.

6.       Denominations, Transfer, Exchange.

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

7.       Persons Deemed Owners.

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

                                      A-5
<PAGE>

8.       Unclaimed Money.

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

9.       Amendment, Supplement, Waiver.

                  Subject to certain exceptions, the Indenture or the Notes may
be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the outstanding Notes and any past default or
compliance with any provision relating to the Notes may be waived in a
particular instance with the consent of the Holders of a majority in principal
amount of the outstanding Notes. Without the consent of any Holder, the Company
and the Trustee may amend or supplement the Indenture or the Notes to cure any
ambiguity, defect or inconsistency, to provide for uncertificated Notes in
addition to or in place of certificated Notes, to remove a Guarantor which, in
accordance with the terms of the Supplemental Indenture, ceases to be liable in
respect of its Guarantee, or to make any other change, provided such action does
not adversely affect the rights of any Holder.

10.      Successor Corporation.

                  When a successor corporation assumes all the obligations of
its predecessor under the Notes and the Indenture, the predecessor corporation
will be released from those obligations, except that a lease of all or
substantially all its assets does not release the predecessor from its
obligations to pay the principal of and premium, if any, and interest, if any,
on the Notes.

11.      Trustee Dealings With Company.

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

12.      No Recourse Against Others.

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

                                      A-6
<PAGE>

13.      Discharge of Indenture.

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

14.      Authentication.

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

15.      Abbreviations.

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

                                      A-7
<PAGE>

                                 ASSIGNMENT FORM

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

                  I or we assign and transfer this Note to:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (Insert assignee's social security or tax ID number)

--------------------------------------------------------------------------------

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

and irrevocably appoint:

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

--------------------------------------------------------------------------------

Date:                       Your signature:
     -------------------                   -------------------------------------
                                           (Sign exactly as your name appears on
                                           the other side of this Note)

                                      A-8
<PAGE>

Signature Guarantee:
                    ------------------------------------------------------------

                               SIGNATURE GUARANTEE

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

                                      A-9

<PAGE>

              [FORM OF NOTATION ON SECURITY RELATING TO GUARANTEE]

                                    GUARANTEE

                  The undersigned (the "Guarantors") have fully and
unconditionally guaranteed, jointly and severally (such guarantee by each
Guarantor being referred to herein as the "Guarantee") (i) the due and punctual
payment of the principal of and interest on the Notes, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the
overdue principal and interest, if any, on the Notes, to the extent lawful, and
the due and punctual performance of all other obligations of the Company to the
Holders or the Trustee all in accordance with the terms set forth in Article Six
of the Supplemental Indenture and (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, that the same
will be promptly paid in full when due or performed in accordance with the terms
of the extension or renewal, whether at stated maturity, by acceleration or
otherwise.

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

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

                                      A-10
<PAGE>

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

                                        [GUARANTORS]

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      A-11EXHIBIT 10.1

                           PURCHASE AND SALE AGREEMENT

         This contract, made and entered into to be effective as of the 9th day
of May, 2003, is by and between SWAA TEPEACA HOLDINGS, LC, a Utah limited
liability company with an address at 887 West Center Street, Orem, UT 84058
(hereafter "Seller"); and, NOXSO Corporation, a Virginia corporation, with an
address at 1065 South 500 West, Bountiful, UT 84010 (hereafter "Buyer")

                                    RECITALS:

         A. Seller owns approximately 21 acres of real property (the "Property")
made up of several individual parcels that are collectively located at one site
in the immediate vicinity of the city of Tepeaca, State of Puebla, Country of
Mexico, as more particularly described in Exhibit "A" hereto.

         B. Buyer desires to purchase and Seller desires to sell the Property on
the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein and other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties do hereby agree as follows:

1.       SALE OF PROPERTY

         1.1 Purchase Price. Subject to adjustments and prorations, if any,
hereafter described, the purchase price (the "Purchase Price") for the Property
is TWO MILLION EIGHT HUNDRED THOUSAND DOLLARS US ($2,800,000) and shall be paid
by Buyer at the Closing (defined below) in the following manner and amounts:

                  1.1.1 Earnest Money. Within three (3) days of the signing of
this Agreement by both Seller and Buyer, Buyer shall deliver to Seller a
promissory note in the principal amount of TEN THOUSAND DOLLARS ($10,000) as an
earnest money deposit (the "Earnest Money"). The promissory note shall bear
interest at the rate of ten percent (10%) per annum, shall be due and payable in
a single balloon payment on the one year anniversary of the note and shall
otherwise be in a form that is reasonable agreed to by the parties. The Seller
shall release the Earnest Money by delivering the promissory note to Buyer for
cancellation prior to the Closing (i) upon notification from Buyer to Seller
that the Seller has failed to satisfy all conditions to the closing of the
transaction contemplated herein; (ii) in accordance with the terms of Sections
2.3 and 9; or (iii) upon breach of this Agreement by Seller or as otherwise set
forth herein. At Closing, the Earnest Money shall be applied as payment by Buyer
towards the Purchase Price.

                  1.1.2 Payment at Closing. On the Closing date (defined below),
the Buyer will pay to the to the Seller the Purchase Price as follows: (i) TEN
THOUSAND DOLLARS USD ($10,000) of the Purchase Price shall be paid via the
Earnest Money; (ii) ONE MILLION SIX HUNDRED FORTY THOUSAND DOLLARS USD
($1,640,000) shall be paid in the form of a promissory note in the same
principal amount which promissory note shall bear interest at the rate of ten
percent (10%) per annum, shall be due and payable on the earlier of the one year
anniversary of the note or on demand, shall be secured by the Property and shall
otherwise be in a form that is reasonable agreed to by the parties (the "Secured
Note"); and (iii) the balance of the Purchase Price shall be paid through the
issuance of FIVE MILLION ONE HUNDRED SIXTY-SEVEN THOUSAND ONE HUNDRED FIFTY
SHARES (5,167,150) of restricted common stock of the Buyer (the "Shares"). The
promissory notes referenced above may be prepaid at any time without penalty. So
long as there is no default under the Secured Note, for a period of sixty (60)
days following the date that the Secured Note is executed the Seller agrees to
subordinate its security interest in and to the Property for purposes of
construction financing. Thereafter, Seller shall have no obligation to
subordinate its positions until and unless the Secured Note is paid in full.

2.       INSPECTION OF PROPERTY BY BUYER

         2.1 Property Access. Buyer acknowledges that Seller has assisted and
cooperated with Buyer and its authorized agents, personnel, independent
accountants, counsel and employees, in obtaining access to the Property for the
purposes of making studies and inspections.

         2.2 Documents Relating to Property. Seller shall deliver or cause to be
delivered to Buyer, at no cost or expense to Buyer, within five (5) days after
the date of this Agreement, copies of the following documents (collectively
referred to herein as the "Documents"):

                  2.2.1 Commitment. A certified title search verification and
land title commitment for the Property (the "Commitment") in a form that is
acceptable to Buyer, in its sole and absolute discretion, dated no earlier than
the date of this Agreement, together with copies of documents evidencing each
exception as set forth in the Commitment (collectively, the "Exception
Documents").

                  2.2.2 Right of Access. Copies of any and all documents
evidencing and confirming any rights-of-access to the Property which shall be
conveyed to Buyer with the Property which rights-of-way shall specifically be
identified in writing by Seller to Buyer.

                  2.2.3 Environmental/Engineering/Soils Report. Copies of any
environmental, engineering and/or soils or foundation reports made with respect
to the Property that are in Seller's possession or reasonably available to
Seller.

                  2.2.4 Contracts. Copies of all rental agreements, leases,
service contracts and other written agreements which affect the Property.

                  2.2.5 Warranties. Copies of written warranties in favor of
Seller, if any, pertaining to all or any part of the Property.

                  2.2.6 Tax Bills. Copies of (a) the current tax bill or bills
affecting the Property and (b) notices of proposed increases or changes in the
assessed value of the Property.

                  2.2.7 Survey. Seller shall deliver or cause to be delivered to
Buyer, a copy of an surveys of the Property in Seller possession or to which
Seller has access reasonable access.

                  2.2.8 Appraisals. Copies of an appraisals of the Property in
Seller's possession or to which Seller has access reasonable access.

         2.3  Buyer's Contingency Period.

                  2.3.1 Inspection. Buyer shall have ten (10) days following the
delivery of all of the Documents (the "Inspection Period") to satisfy itself
concerning the suitability of Property. Buyer shall have the right at Buyer's
expense to perform reasonable tests, inspections and feasibility studies on the
Property as Buyer may deem necessary.

                  2.3.2 Contingency Period. If Buyer determines, in Buyer's sole
discretion, that the Property, or any part thereof, is not suitable or is not
feasible for any reason whatsoever, Buyer may, at any time prior to the
expiration of the Inspection Period terminate this Agreement by giving written
notice to Seller. In the event of any such termination, all the Earnest Money
shall be refunded to Buyer. This Agreement thereafter shall be null and void and
neither party shall have any obligation to the other.

3.       BUYER'S CONDITIONS TO CLOSING

         3.1 Buyer's Conditions to Closing. Buyer's obligation to acquire the
Property shall be conditioned upon the satisfaction or waiver by Buyer of the
following conditions:

                  3.1.1 Condition of Title. Buyer shall have approved the form
of the Policy of Title Insurance (defined below) and those covenants,
conditions, restrictions, rights of way, easements, reservations and other
matters of record disclosed therein. In the event Buyer terminates this
Agreement pursuant to the preceding sentence, the Earnest Money shall be
returned promptly to Buyer, with any interest accrued thereon, and Buyer and
Seller shall have no further obligation to each other. The exceptions to and
matters with respect to title that Buyer approves shall be referred to herein as
"Permitted Title Exceptions."

                  3.1.2 Representations and Warranties. Seller's representations
and warranties, as set forth in Section 6 hereof, shall be true and correct as
of the Closing date set forth herein.

                  3.1.3 Title Policy. At the Closing, Seller shall be obligated
to provide Buyer with an owners policy of title insurance in a form that is
acceptable to Buyer, in its sole and absolute discretion (the "Policy of Title
Insurance"), with liability limits equal to the Purchase Price, insuring fee
title to the Property as being vested in Buyer, or Buyer's designates, subject
only to the Permitted Title Exceptions.

4.       PRECLOSING COVENANTS

         4.1 Performance of Obligations. Until the Closing date, Seller shall
timely pay all taxes, assessments and other enforceable charges affecting the
Property, or any part thereof.

5.       THE CLOSING

         5.1 Date of Closing. The Closing shall occur on or before May 12, 2003,
at a place and time mutually agreed to by the Seller and Buyer (the "Closing").
Buyer may, however, extend the Closing date to a date no later than May 30,
2003, by paying Seller a TWENTY-FIVE THOUSAND DOLLAR USD ($25,000)
non-refundable closing extension fee which fee shall be applied toward the
Purchase Price at Closing.

         5.2 Items to be Delivered by Seller at the Closing. At the Closing,
Seller shall deliver or cause to be delivered to Buyer the following:

              5.2.1 Conveyance Document. A duly executed and acknowledged
document appropriate for real property in the State of Puebla, Country of
Mexico, conveying the Property to Buyer free and clear of liens and
encumbrances, excepting only the Permitted Title Exceptions.

                  5.2.2 Title Insurance. The Policy of Title Insurance.

         5.3 Items to be Delivered by Buyer at Closing. At the Closing, Buyer
shall deliver or cause to be delivered to Seller the Purchase Price.

         5.4 Prorations, Adjustments. All ad valorem real property taxes,
personal property taxes, real property special assessments payable in
installments, and utility expenses (collectively, the "Expenses"), shall be
prorated and adjusted between the parties as of the Closing date. At Closing,
Seller shall pay to Buyer all accrued but unpaid Expenses, and Buyer shall pay
to Seller all prepaid but not yet accrued Expenses.

         5.5 Possession. Possession of the Property shall be transferred by
Seller to Buyer on the Closing date.

         5.6 Seller's Closing Costs. Seller shall pay (i) its legal fees in
connection with this Agreement and the transactions contemplated hereby, (ii)
one-half of the recording costs, (iii) the cost of the Policy of Title
Insurance, and (iii) the recording costs in connection herewith.

         5.7 Buyer's Closing Costs. Buyer shall pay (i) its legal fees in
connection with this Agreement and the transactions contemplated hereby, (ii)
one-half of the recording costs, and (iii) all property taxes that first become
due and owing on or after the Closing date.

6.       SELLER'S REPRESENTATIONS AND WARRANTIES.

         6.1 Representations and Warranties. Seller hereby makes the following
representations and warranties, which are true as of the date of this Agreement
and shall be true as of the Closing date. Buyer and Seller have entered into
this Agreement on the condition that Seller makes the following representations
and warranties, which representations and warranties were and are a material
inducement to Buyer entering into this Agreement, and Buyer would not have
entered into this Agreement except in reliance upon the representations and
warranties of Seller made herein.

                  6.1.1 Consents. All required approvals or consents have been
obtained in connection with the execution of this Agreement by Seller and with
the performance by Seller of Seller's obligations hereunder.

                  6.1.2 Contracts. Neither this Agreement nor the transactions
contemplated hereby violates or shall violate any contract, document,
understanding, agreement or instrument to which Seller is a party or by which
Seller may be bound, or any contract, document, understanding, agreement or
instrument affecting the Property.

                  6.1.3 Lawsuits. Seller has received no written notice of any
pending or threatened lawsuits or asserted or unasserted claims, condemnation or
eminent domain proceedings, or proceedings in lieu thereof, relating to the
Property.

                  6.1.4 Notice of Violation. Seller has not received
notification of any violation of any laws, rules or regulations with respect to,
or which would affect the use of, the Property, or any portion thereof.

                  6.1.5 Contracts. There are no contracts relating to the
Property to which Seller is a party, or which Seller has assumed, has agreed to
be bound by or has agreed to pay on, that will obligate Buyer.

                  6.1.6 Hazardous Material. There are no underground tanks or
hazardous material located on the Property and Seller has received no notice of
any violation or claimed violation of any laws, rules or regulations relating to
hazardous material located on the Property. As used in this Agreement, the term
"Hazardous Material" means any hazardous or toxic substance, material or waste
which is regulated by any local governmental authority or the Mexican
Government.

                  6.1.7 Soils Conditions. To the best of Seller's knowledge,
there are no soils conditions which materially and adversely affect the
Property.

                  6.1.8 Commitments. No commitments have been made by Seller to
any governmental authority, utility company or any other organization, group or
individual relating to the Property which would impose an obligation upon
Purchaser or its successor or assigns to make any contribution or dedication of
money or land or to construct, install or maintain any improvements of a public
or private nature on or off the Property.

                  6.1.9 Authority. Seller is a Utah limited liability company
duly organized and in good standing under the laws of the State of Utah, and has
been duly authorized to enter into this Agreement and to sell the Property
pursuant to the terms and conditions hereof, and the parties and persons
executing this Agreement on behalf of Seller have been duly authorized to
execute this Agreement and to take such other actions as may be necessary or
appropriate to consummate the transactions contemplated hereby.

                  6.1.10 Accredited Investor Status. Seller is an "accredited
investor" for purposes of Regulation D under the Securities Act of 1933, as
amended (the "Securities Act") and Seller has sufficient knowledge and
experience in evaluating and investing in companies similar to the Company in
terms of the Company's stage of development so as to be able to evaluate the
risks and merits of his or its investment in the Company and is able financially
to bear the risks thereof. Seller represents that it was not organized for the
purpose of acquiring the Shares.

                  6.1.11 Investment Purposes. Seller is acquiring the Shares,
subject to the terms hereof, for investment for its own account and not with a
view to, or for resale in connection with, any distribution thereof, and that
Seller has no present intention of selling, granting any participation in, or
otherwise distributing the same. By executing this Agreement, the Seller further
represents and warrants that Seller does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Shares.

                  6.1.12 Access to Information. Seller has had access to any and
all information concerning Buyer that Seller and Seller's financial, tax and
legal advisors required or considered necessary to make a proper evaluation of
this investment. Seller has had an opportunity to discuss the terms and
conditions of the offering of the Shares and Buyer's business, management and
financial affairs with management of the Buyer and has received (or had made
available to it) any financial and business documents requested by Seller. In
making the decision to acquire the Shares, Seller and its advisers have relied
solely upon their own independent investigations, and fully understand that
there are no guarantees, assurances or promises in connection with any
investment hereunder and understand that the particular tax consequences arising
from this investment in Buyer will depend upon the individual circumstances of
the Seller. Seller further understands that no opinion is being given as to any
securities or tax matters involving the offering.

                  6.1.13 Exempt Transaction. Seller understands that the Shares
have not been registered under the Securities Act and must be held indefinitely
unless a subsequent disposition thereof is registered under the Securities Act
or is exempt from such registration.

                  6.1.14 Legend. Seller also understands and agrees that stop
transfer instructions relating to the Shares will be placed in Buyer's stock
transfer ledger, and that the certificates evidencing the Shares will bear
legends in substantially the following form:

                  The securities represented by this certificate have not been
                  registered under the Securities Act of 1933 (the "Act") and
                  are "restricted securities" as that term is defined in Rule
                  144 under the Act. The securities may not be offered for sale,
                  sold or otherwise transferred except pursuant to an effective
                  registration statement under the Act or pursuant to an
                  exemption from registration under the Act, the availability of
                  which is to be established to the satisfaction of the Company.

         6.2 Survival of Representations and Warranties. All of the
representations and warranties of Seller set forth in paragraph 6.1 hereof shall
survive the Closing.

7.       REAL ESTATE COMMISSION

         7.1 Commissions. Seller and Buyer each represent that, except for
Groupo Industrial Potro SA de CV ("Groupo") who was retained by the Seller and
to whom Seller will owe a commission relating to the sale of the Property,
neither party will owe a brokerage or finder's fee in connection with the sale
of the Property pursuant to this Agreement. Seller agrees to pay in full any and
all amounts owed to Groupo in connection with this transaction. Seller and Buyer
each agree that, to the extent any additional brokerage or finder's fee shall
have been earned or claimed in connection with this Agreement, the payment of
such fees, and the defense of any action in connection therewith, shall be the
exclusive obligation of the party who requested the services of that broker or
finder. In the event that any claim, demand or cause of action for brokerage or
finder's fees is asserted against a party to this Agreement who did not request
such services, the party through whom the broker or finder is making the claim
shall indemnify, defend (with an attorney of indemnitee's choice) and hold
harmless the other party from and against any such claims, demands and causes of
action.

8.       MISCELLANEOUS

         8.1 Material Damage or Condemnation. The risk of loss upon the Property
shall be upon the Seller until the Closing. If the Property is materially
damaged prior to the Closing or any part thereof is materially taken by
condemnation prior to the Closing, Buyer shall have the right to, at Buyer's
sole option, to either pro-rate the Purchase Price of the Property, or to reject
the Property and, on written notice of Buyer, this Agreement shall be terminated
and neither Seller nor Buyer shall thereafter have any obligation to each other
with respect thereto and any Earnest Money shall be returned to Buyer with any
interest accrued thereon. In the alternative, at Buyer's sole option, Buyer may
elect to pro-rate the Purchase Price of the Property and complete the
transaction on the terms set forth in this Agreement; in such event, Buyer shall
receive an assignment of any such insurance proceeds or condemnation proceeds,
as the case may be, as are allocable to the damaged Property or to the portion
of the Property taken.

         8.2 Attorneys' Fees. In the event either party brings suit to enforce
or interpret this Agreement or for damages on account of the breach of a
covenant or representation or warranty contained herein, the prevailing party
shall be entitled to recover from the other party its reasonable attorneys' fees
and costs incurred in any such action, in addition to other relief to which the
prevailing party is entitled.

         8.3 Notices. Any notice required or permitted to be given by one party
to the other may be given by personal delivery, fax, mailing or via courier
service. If any notice is deposited into the custody of Federal Express, United
Parcel Service or another overnight courier service, for overnight delivery,
postage prepaid and addressed to such party at the address hereinafter
specified, such notice shall be effective upon its deposit into the custody of
such couriers. All other notices shall be effective upon receipt. The addresses
of the parties for all purposes under this Agreement shall be:

         Buyer:       NOXSO CORPORATION
                      1065 South 500 West  Bountiful, UT  84010
                      e-mail: Noxso-Admin@pi77.net
                      Tel: (801) 759-7732  Fax: (801) 457-3752

         Seller:      SWAA TEPEACA HOLDINGS, LC
                      SouthWest Management Solutions, Manager
                      887 West Center Street, Orem, UT 84058
                      e-mail: sunny128@iwon.com
                      Tel: (801) 724-9870  Fax: (801) 802-8788

Either party may change the address at which it desires to receive notice upon
written notice of such change to the other party.

         8.4 Time of Essence. Time is of the essence of this Agreement and each
and every term and provision hereof.

         8.5 Waiver or Modification. No waiver of any breach or default by any
party hereto shall be considered to be a waiver of any other breach or default.
A modification of any provision contained herein, or of any other amendment to
this Agreement shall be effective only if the modification or amendment is in
writing and signed by each of Seller and Buyer.

         8.6 Successors and Assigns. This Agreement shall inure to the benefit
of, and be binding upon, the parties hereto and their respective successors and
assigns. Except as otherwise set forth herein, the rights and/or obligation of
the parties hereunder are not assignable without the written consent of the
parties. Notwithstanding the foregoing, Buyer shall have right to designate a
nominee or affiliate of Buyer to take title to the Property on the Closing date.

         8.7 Integration of Other Agreements. This Agreement supersedes all
previous contracts, correspondence and documentation relating to the sale of the
Property. Any oral representations or modifications concerning this Agreement
shall be of no force or effect.

         8.8 Liabilities Not Assumed. Except as expressly set forth herein, it
is understood and agreed that Buyer does not assume any liabilities or
obligations of Seller of any kind or character, contingent or otherwise.

         8.9 Counterparts. This Agreement may be executed in any number of
duplicate originals or counterparts, each of which shall be of equal force and
effect.

         8.10 Further Actions. Buyer and Seller agree to execute such additional
documents and take such further actions as may reasonably be required to carry
out each of the provisions and the intent of this Agreement.

         8.11 Titles and Headings. Titles and headings of Sections of this
Agreement are for convenience of reference only and shall not affect the
construction of any provisions of this Agreement.

         8.12 Earnest Money Damages. In the event that Buyer fails to perform
Buyer's obligations hereunder (except as excused by the Seller's default), the
Seller's sole and exclusive remedies shall be to waive the default or to
terminate this Agreement; and on such termination, the Seller will be entitled
to retain the Earnest Money as liquidated damages arising from such default.

         8.13 Exhibits. Each of the exhibits referred to herein and attached
hereto is an integral part of this Agreement and is incorporated herein by this
reference.

         8.14 Pronouns. All pronouns and any variations thereof shall be deemed
to refer to the masculine, feminine or neuter, singular or plural, as the
identity of the parties may require.

         8.15 Saturday, Sunday and Legal Holidays. If the time for performance
of any of the terms, conditions and provisions hereof shall fall on a Saturday,
Sunday or legal holiday, then the time of such performance shall be extended to
the next business day thereafter.

         8.16 Severability. Whenever possible, each provision of this Agreement
and every related document shall be interpreted in such manner as to be valid
under applicable law; but, if any provision of any of the foregoing shall be
invalid or prohibited under said applicable law, such provision shall be
ineffective to the extent of such invalidity or prohibition without invalidating
the remainder of such provision or the remaining provisions of this document.

         8.17 Governing Law. Buyer and Seller agree that this Purchase Agreement
shall be governed by the laws of the State of Utah.

         IN WITNESS WHEREOF, this Agreement is executed by Buyer and Seller on
the 14th day of May, 2003, to be effective as of the date first set forth above.

"BUYER"                                      "SELLER"

NOXSO CORPORATION                            SWAA TEPEACA HOLDINGS, LC

/s/ Richard J. Anderson                       /s/ Wynn L. Westmoreland
----------------------------                 -----------------------------------
By: Richard J Anderson                       By: Wynn L. Westmoreland, President
Its:  President                              SouthWest Management Solutions
                                             General Manager of
                                             SWAA TEPEACA HOLDINGS, LC

<PAGE>

                                    EXHIBIT A

                                [To be completed]

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