Document:

exv4w5

Exhibit 4.5

SECOND SUPPLEMENTAL INDENTURE

          SECOND SUPPLEMENTAL INDENTURE (this Supplemental Indenture), dated as of February 27,
2001, between NVR, INC., a Virginia corporation (the “Company”), having its principal
office at 7601 Lewinsville Road, Suite 300, McLean, Virginia, 22102 and THE BANK OF NEW YORK, a New
York banking corporation (the “Trustee”), having a Corporate Trust Office at 101 Barclay
Street, 21st Floor, New York, New York, as Trustee under the Base Indenture, the First Supplemental
Indenture, and this Second Supplemental Indenture (each as hereinafter defined). Capitalized terms
used and not otherwise defined herein shall have the meaning set forth in the Base Indenture (as
defined).

R E C I T A L S

          WHEREAS, the Company and the Trustee have heretofore executed and delivered to the Trustee an
Indenture, dated as of April 14, 1998 (the “Base Indenture”), as amended and supplemented
by the first supplemental indenture, dated as of April 14, 1998 (the “First Supplemental
Indenture” and, together with the Base Indenture, the “Indenture”) pursuant to which
the Company’s 8% Senior Notes due 2005 were issued;

          WHEREAS, in accordance with Section 902 of the Base Indenture, the Company and the Trustee are
authorized and permitted to amend and supplement the Indenture as set forth herein (the
“Amendment”), with the consent of the Holders of not less than a majority in principal
amount of all Outstanding Securities, and (1) the Holders of a majority in principal amount of all
Outstanding Securities have consented to the Amendment and (2) all other requirements set forth in
the Base Indenture to make this Second Supplemental Indenture effective have been satisfied; and

          WHEREAS, the Company and the Trustee deem it advisable to enter into this Second Supplemental
Indenture for the purpose of amending the Indenture in order to provide the Company with greater
flexibility to continue to repurchase shares of its outstanding common stock as part of its
strategy of maximizing shareholder value.

NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH:

          For and in consideration of the foregoing and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree
for the equal and proportionate benefit of all Holders of the Notes as follows:

          SECTION 1.01 AMENDMENT. Section 5.01 of the First Supplemental Indenture is amended and
restated in its entirety as follows:

          “Section 5.01 Limitations on Restricted Payments. Until the Notes are rated Investment Grade
by both Rating Agencies, after which time the following covenant no longer shall be binding on the
Company or any Restricted Subsidiary:

          (a) neither the Company nor any of its Restricted Subsidiaries shall, directly or indirectly,
make any Restricted Payment, if, after giving effect thereto on a pro forma basis:

     (i) the Company could not Incur $1.00 of additional indebtedness pursuant to provisions
described in paragraph (b) of Section 5.02 hereof;

     (ii) a Default or an Event of Default would occur or be continuing; or

     (iii) the aggregate amount of all Restricted Payments, including such proposed Restricted
Payment, made by the Company and its Restricted Subsidiaries, from and after the Issue Date and
on or prior to the date of such Restricted Payment, shall exceed the sum (the “Basket”) of:

          (A) 50% of Consolidated Net Income of the Company for the period (taken as one accounting
period), commencing with the first full fiscal quarter which includes the Issue Date, to and
including the fiscal quarter ended immediately prior to the date of each calculation for which
internal financial statements are available (or, if Consolidated Net Income for such period is
negative, then minus 100% of such deficit); plus

 

 

          (B) 100% of the amount of any Indebtedness of the Company or a Restricted Subsidiary
Incurred after the Issue Date that is converted into or exchanged for Qualified Capital Stock
of the Company after the Issue Date; plus

          (C) to the extent that any Restricted Investment made after the date of this First
Supplemental Indenture is sold for cash or otherwise reduced or liquidated or repaid for cash,
in whole or in part, the lesser of (1) the cash return of capital with respect to such
Restricted Investment (less the cost of disposition, if any) and (2) the initial amount of
such Restricted Investment; plus

          (D) unless accounted for pursuant to clause (B) above, 100% of the aggregate net proceeds
(after payment of reasonable out-of-pocket expenses, commissions and discounts incurred in
connection therewith) received by the Company from the sale or issuance (other than to a
Subsidiary of the Company) of its Qualified Capital Stock after the Issue Date and on or prior
to the date of such Restricted Payment; plus

          (E) with respect to any Unrestricted Subsidiary that is redesignated as a Restricted
Subsidiary after the Issue Date in accordance with the definition of Unrestricted Subsidiary
(so long as the designation of such Subsidiary as an Unrestricted Subsidiary was treated as a
Restricted Payment made after the Issue Date and only to the extent not included in the
calculation of Consolidated Net Income), an amount equal to the lesser of (x) the book value
in accordance with GAAP of the Company’s or a Restricted Subsidiary’s Investment in such
Subsidiary, and (y) the Designation Amount at the time of such Subsidiary’s designation as an
Unrestricted Subsidiary; plus

          (F) 100% of tax benefits, if any, for the period (taken as one accounting period),
commencing with the first full fiscal quarter which includes the Issue Date, realized by the
Company from stock option exercises and from the issuance of the Company’s Qualified Capital
Stock pursuant to equity-based employee benefit plans that are recorded as an increase to
shareholders’ equity in accordance with GAAP; plus

          (G) $50,000,000.

     (b) The foregoing clause (a) does not prohibit:

          (i) the payment of any dividend within 60 days after the date of its declaration if such
dividend could have been made on the date of its declaration in compliance with the foregoing
provisions;

          (ii) the payment of cash dividends or other distributions to any Equity Investor or joint
venture participant of a Restricted Subsidiary with respect to a class of Capital Stock of
such Restricted Subsidiary or joint venture owned by such Equity Investor or joint venture
participant so long as the Company or its Restricted Subsidiaries simultaneously receive a
dividend or distribution with respect to their Investment in such Restricted Subsidiary or
joint venture either in U.S. Legal Tender or the same form as the dividend or distribution
received by such Equity Investor or joint venture participant and in proportion to their
proportionate interest in the same class of Capital Stock of such Restricted Subsidiary (or in
the case of a joint venture that is a partnership or a limited liability company, as provided
for in the documentation governing such joint venture), as the case may be;

          (iii) repurchases or redemptions of Capital Stock of the Company from any former
directors, officers and employees of the Company in the aggregate up to $3,000,000 during any
calendar year (provided, however, that any amounts not used in any calendar year may be used
in any subsequent year);

          (iv) the retirement of Capital Stock of the Company or the retirement in Indebtedness of
the Company, in exchange for or out of the proceeds of a substantially concurrent sale (other
than a sale to a Subsidiary of the Company) of, other shares of its Qualified Capital Stock
and the retirement of Capital Stock or Indebtedness of a Restricted Subsidiary in exchange for
or out of the proceeds of a substantially concurrent sale of its Qualified Capital Stock,
provided that, in each case, the amount of any such proceeds is excluded for purposes of
clause (a)(iii)(D) above; or

          (v) repurchases by the Company of Capital Stock of the Company (from Persons other than
officers or directors of the Company) in one or more open market and/or privately negotiated
transactions of up to $85,000,000 in

the aggregate at any time or from time to time on or before March 31, 2002; provided that any
such repurchases not made pursuant to this clause (v) on or before March 31, 2002 may not be
made at any subsequent time.

          Any Restricted Payment made in accordance with clauses (i) and (iii) of this paragraph
shall reduce the Basket. In calculating the Basket, any Restricted Payment not made in cash
and any non-cash amounts received for purposes of clause (D) shall be valued at fair market
value as determined in good faith by the Board of Directors,

 

whose determination shall be conclusive and whose resolution with respect thereto shall
be delivered to the Trustee promptly after the adoption thereof.”

     SECTION 1.02 NEW YORK LAW TO GOVERN. THIS SECOND SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF
NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECOND SUPPLEMENTAL
INDENTURE.

     SECTION 1.03 EFFECTIVE DATE. This Second Supplemental Indenture shall be effective as of the
date first above written and upon the execution and delivery hereof by each of the parties hereto.

     SECTION 1.04 COUNTERPARTS. This Second Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

 

     IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed by their respective officers hereunto duly authorized, all as of the date first above
written.

Dated: February 27, 2001

	 	 	 	 	 
	 	NVR, INC.

 	 
	 	By:  	/s/ Dwight C. Schar
 	 
	 	 	Name:  	Dwight C. Schar 	 
	 	 	Title:  	Chairman of the Board, Chief
Executive Officer and President 	 
	 
	 	 	 
	 	By:  	                        /s/ Paul C. Saville
 	 
	 	 	Name:  	Paul C. Saville 	 
	 	 	Title:  	Senior Vice President,
Chief Financial Officer and
Treasurer 	 
	 

Attest: /s/ Diane J. Hoppe

Dated: February 27, 2001

	 	 	 	 	 
	 	THE BANK OF NEW YORK

as Trustee

 	 
	 	By:  	/s/ Geovanni Barris
 	 
	 	 	Name:  	Geovanni Barris 	 
	 	 	Title:  	Vice Presidentexv4w6

Exhibit 4.6

THIRD SUPPLEMENTAL INDENTURE

     THIRD SUPPLEMENTAL INDENTURE (this “Third Supplemental Indenture”), dated as of March 14,
2002, between NVR, INC., a Virginia corporation (the “Company”), and U.S. Bank Trust National
Association, a national banking association, as successor to the Bank of New York (the “Trustee”),
as Trustee under the Base Indenture, the First Supplemental Indenture, and the Second Supplemental
Indenture (each as hereinafter defined) and this Third Supplemental Indenture. Capitalized terms
used and not otherwise defined herein shall have the meaning set forth in the Base Indenture.

RECITALS

     WHEREAS, the Company and the Trustee have heretofore executed and delivered to the Trustee an
Indenture, dated as of April 14, 1998 (the “Base Indenture”), as amended and supplemented by the
first supplemental indenture, dated as of April 14, 1998 (the “First Supplemental Indenture”), and
the second supplemental indenture, dated as of February 27, 2001 (the “Second Supplemental
Indenture” and, together with the Base Indenture and the First Supplemental Indenture, the
“Indenture”) pursuant to which the Company’s 8% Senior Notes due 2005 were issued;

     WHEREAS, in accordance with Section 902 of the Base Indenture, the Company and the Trustee are
authorized and permitted to amend and supplement the Indenture as set forth herein (the
“Amendment”), with the consent of the Holders of not less than a majority in principal amount of
all Outstanding Securities, and (1) the Holders of a majority in principal amount of all
Outstanding Securities have consented to the Amendment and (2) all other requirements set forth in
the Base Indenture to make this Third Supplemental Indenture effective have been satisfied; and

     WHEREAS, the Company and the Trustee deem it advisable to enter into this Third Supplemental
Indenture for the purpose of amending the Indenture in order to provide the Company with greater
flexibility to continue to repurchase shares of its outstanding common stock as part of its
strategy of maximizing shareholder value.

NOW, THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the foregoing and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree
for the equal and proportionate benefit of all Holders of the Notes as follows:

     SECTION 1.01 AMENDMENT. Section 5.01 of the First Supplemental Indenture is amended and
restated in its entirety as follows:

     “Section 5.01 Limitations on Restricted Payments. Until the Notes are rated Investment Grade
by both Rating Agencies, after which time the following covenant no longer shall be binding on the
Company or any Restricted Subsidiary:

     (a) neither the Company nor any of its Restricted Subsidiaries shall, directly or indirectly,
make any Restricted Payment, if, after giving effect thereto on a pro forma basis:

     (i) the Company could not Incur $1.00 of additional Indebtedness pursuant to provisions
described in paragraph (b) of Section 5.02 hereof;

     (ii) a Default or an Event of Default would occur or be continuing; or

     (iii) the aggregate amount of all Restricted Payments, including such proposed Restricted
Payment, made by the Company and its Restricted Subsidiaries, from and after the Issue Date
and on or prior to the date of such Restricted Payment, shall exceed the sum (the “Basket”) of

               (A) 50% of Consolidated Net Income of the Company for the period (taken as
one accounting period), commencing with the first full fiscal quarter which
includes the Issue Date, to and including the fiscal quarter ended immediately
prior to the date of each calculation for which internal financial statements
are available (or, if Consolidated Net Income for such period is negative, then
minus 100% of such deficit); plus

               (B) 100% of the amount of any Indebtedness of the Company or a Restricted
Subsidiary Incurred after the Issue Date that is converted into or exchanged
for Qualified Capital Stock of the Company after the Issue Date; plus

               (C) to the extent that any Restricted Investment made after the date of
this First Supplemental Indenture is sold for cash or otherwise reduced or
liquidated or repaid for cash, in whole or in part, the lesser of (1) the cash
return of capital with respect to such Restricted Investment (less the cost of
disposition, if any) and (2) the initial amount of such Restricted Investment;
plus

 

 

               (D) unless accounted for pursuant to clause (B) above, 100% of the
aggregate net proceeds (after payment of reasonable out-of pocket expenses,
commissions and discounts incurred in connection therewith) received by the
Company from the sale or issuance issuance (other than to a Subsidiary of the
Company) of its Qualified Capital Stock after the Issue Date and on or prior to
the date of such Restricted Payment; plus

               (E) with respect to any Unrestricted Subsidiary that is redesignated as a
Restricted Subsidiary after the Issue Date in accordance with the definition of
Unrestricted Subsidiary (so long as the designation of such Subsidiary as an
Unrestricted Subsidiary was treated as a Restricted Payment made after the
Issue Date and only to the extent not included in the calculation of
Consolidated Net Income), an amount equal to the lesser of (x) the book value
in accordance with GAAP of the Company’s or a Restricted Subsidiary’s
Investment in such Subsidiary, and (y) the Designation Amount at the time of
such Subsidiary’s designation as an Unrestricted Subsidiary; plus

               (F) 100% of tax benefits, if any, for the period (taken as one accounting
period), commencing with the first full fiscal quarter which includes the Issue
Date, realized by the Company from stock option exercises and from the issuance
of the Company’s Qualified Capital Stock pursuant to equity-based employee
benefit plans that are recorded as an increase to shareholders’ equity in
accordance with GAAP; plus

               (G) $50,000,000.

(b) The foregoing clause (a) does not prohibit:

               (i) the payment of any dividend within 60 days after the date of its
declaration if such dividend could have been made on the date of its
declaration in compliance with the foregoing provisions;

               (ii) the payment of cash dividends or other distributions to any Equity
Investor or joint venture participant of a Restricted Subsidiary with respect
to a class of Capital Stock of such Restricted Subsidiary or joint venture
owned by such Equity Investor or joint venture participant so long as the
Company or its Restricted Subsidiaries simultaneously receive a dividend or
distribution with respect to their Investment in such Restricted Subsidiary or
joint venture either in U.S. Legal Tender or the same form as the dividend or
distribution received by such Equity Investor or joint venture participant and
in proportion to their proportionate interest in the same class of Capital
Stock of such Restricted Subsidiary (or in the case of a joint venture that is
a partnership or a limited liability company, as provided for in the
documentation governing such joint venture), as the case may be;

               (iii) repurchases or redemptions of Capital Stock of the Company from any
former directors, officers and employees of the Company in the aggregate up to
$3,000,000 during any calendar year (provided, however, that any amounts not
used in any calendar year may be used in any subsequent year);

               (iv) the retirement of Capital Stock of the Company or the retirement in
Indebtedness of the Company, in exchange for or out of the proceeds of a
substantially concurrent sale (other than a sale to a Subsidiary of the
Company) of, other shares of its Qualified Capital Stock and the retirement of
Capital Stock or Indebtedness of a Restricted Subsidiary in exchange for or out
of the proceeds of a substantially concurrent sale of its Qualified Capital
Stock, provided that, in each case, the amount of any such proceeds is excluded
for purposes of clause (a)(iii)(D) above;

               (v) repurchases by the Company of Capital Stock of the Company (from
Persons other than officers or directors of the Company) in one or more open
market and/or privately negotiated transactions of up to $85,000,000 in the
aggregate at any time or from time to time on or before March 31, 2002;
provided that any such repurchases not made pursuant to this clause (v) on or
before March 31, 2002 may not be made at any subsequent time; or

               (vi) repurchases by the Company of Capital Stock of the Company (from
Persons other than executive officers or directors of the Company) in one or
more open market and/or privately negotiated transactions of up to $100,000,000
in the aggregate at any time or from time to time from March 15, 2002 until
June 1, 2003; provided, that any such repurchases not made pursuant to this
clause (vi) on or before June 1, 2003 may not be made at any subsequent time.

- 2 -

 

                         Any Restricted Payment made in accordance with clauses (i) and (iii) of this paragraph shall
reduce the Basket. In calculating the Basket, any Restricted Payment not made in cash and any
non-cash amounts received for purposes of clause (D) shall be valued at fair market value as
determined in good faith by the Board of Directors, whose determination shall be conclusive and
whose resolution with respect thereto shall be delivered to the Trustee promptly after the adoption
thereof.”

                         SECTION 1.02 NEW YORK LAW TO GOVERN. THIS THIRD SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY
AND CONSTRUED

IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED
ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. EACH OF
THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS THIRD SUPPLEMENTAL INDENTURE.

                         SECTION 1.03 EFFECTIVE DATE. This Third Supplemental Indenture shall be effective as of the
date first above written and upon the execution and delivery hereof by each of the parties hereto.

                         SECTION 1.04 COUNTERPARTS. This Third Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

- 3 -

 

                         IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed by their respective officers hereunto duly authorized, all as of the date first above
written.

Dated: March 14, 2002

	 	 	 	 	 
	 	NVR, INC.

 	 
	 	By:  	/s/ Dwight C. Schar
 	 
	 	 	Name:  	Dwight C. Schar 	 
	 	 	Title:  	Chairman of the
Board,
Chief Chief Executive
Officer
and President 	 
	 
	 	 	 
	 	By:  	                                                                 /s/ Paul C. Saville
 	 
	 	 	Name:  	Paul C. Saville 	 
	 	 	Title:  	Executive Vice
President,
Chief Financial Officer and
Treasurer 	 
	 

Attest:                                        

Dated: March 14, 2002

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL

ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Ignazio Tamburello
 	 
	 	 	Name:  	Ignazio Tamburello 	 
	 	 	Title:  	Assistant Vice
President 	 
	 

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