Document:

exv10w1

Exhibit 10.1

DELPHI FINANCIAL GROUP, INC.

$30,000,000

Class A Common Stock

SALES AGREEMENT

April 24, 2009

Barclays Capital Inc.

745 Seventh Avenue

New York, New York 10019

Ladies and Gentlemen:

          Delphi Financial Group, Inc., a Delaware corporation (the “Company”), proposes to sell from
time to time through Barclays Capital Inc., as sales agent (the “Agent”) shares of the Company’s
Class A common stock, par value $0.01 per share (the “Class A Common Stock”), having an aggregate
gross sales price of up to $30,000,000 (the “Stock”) on the terms set forth in Section 2 of this
agreement (this “Agreement”).

          1.
Representations, Warranties and Agreements of the Company. 

          The Company represents, warrants
and agrees that:

     (a) A registration statement on Form S-3 (File No. 333-156284) relating to the Stock
has (i) been prepared by the Company in conformity with the requirements of the Securities
Act of 1933, as amended (the “Securities Act”), and the rules and regulations of the
Securities and Exchange Commission (the “Commission”) thereunder; (ii) been filed with the
Commission under the Securities Act; and (iii) become effective under the Securities Act.
As used in this Agreement:

     (i) “Applicable Time” means, with respect to any shares of Stock, each time of sale of
such shares pursuant to this Agreement;

     (ii) “Basic Prospectus” means the base prospectus filed as part of the Registration
Statement, in the form in which it has most recently been filed with the Commission on or
prior to the date of this Agreement;

     (iii) “Effective Date” means any date as of which any part of such registration
statement relating to the Stock became, or is deemed to have become, effective under the
Securities Act in accordance with the rules and regulations thereunder;

     (iv) “Issuer Free Writing Prospectus” means each “free writing prospectus” (as defined
in Rule 405 (“Rule 405”) under the Securities Act) prepared by or on behalf of the Company
or used or referred to by the Company in connection with the offering of the Stock;

 

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     (v) “Pricing Disclosure Package” means, as of each Applicable Time, the Prospectus and
each Issuer Free Writing Prospectus filed or used by the Company on or before such
Applicable Time, taken together (and, with respect to any shares of Stock, together with the
public offering price of such shares).

     (vi) “Prospectus” means the Basic Prospectus, as amended and supplemented by the
Prospectus Supplement, in the form in which such Basic Prospectus and/or Prospectus
Supplement have most recently been filed by the Company with the Commission pursuant to Rule
424(b) (“Rule 424(b)”) under the Securities Act;

     (vii) “Prospectus Supplement” means the prospectus supplement specifically relating to
the Stock prepared and filed with the Commission pursuant to Rule 424(b) under the
Securities Act and in accordance with Section 5(a) hereof; and

     (viii) “Registration Statement” means, collectively, the various parts of such
registration statement, each as amended as of the Effective Date for such part, including
any Prospectus and all exhibits to such registration statement, and including the
information in the Prospectus that was omitted from the Registration Statement at the time
it first became effective but that is deemed, pursuant to Rule 430(b)(f) under the
Securities Act, to be part of and included in the Registration Statement.

Any reference to the Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Form S-3 under the Securities Act as of the
date of the Prospectus; any reference to the Registration Statement shall be deemed to refer
to and include the documents incorporated by reference therein pursuant to Form S-3 under
the Securities Act as of the date of this Agreement; and all references to information that
is “included” or “contained” in the Prospectus, the Registration Statement or the Pricing
Disclosure Package (and any similar references) shall mean and include all information that
is incorporated by reference therein pursuant to Form S-3 under the Securities Act. Any
reference to any amendment or supplement to the Prospectus shall be deemed to refer to and
include any document filed under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), after the date of the Prospectus that is incorporated by reference in the
Prospectus; and any reference to any amendment to the Registration Statement shall be deemed
to refer to and include any document filed under the Exchange Act after the date of this
Agreement that is incorporated by reference in the Registration Statement pursuant to Form
S-3 under the Securities Act. The Commission has not issued any order preventing or
suspending the use of the Prospectus or any Issuer Free Writing Prospectus or suspending the
effectiveness of the Registration Statement, and no proceeding or examination for such
purpose has been instituted or, to the Company’s knowledge, threatened by the Commission.
The Commission has not notified the Company of any objection to the use of the form of the
Registration Statement or any post-effective amendment thereto.

     (b) The Company has been since the time of initial filing of the Registration Statement
and continues to be a “well-known seasoned issuer” (as defined in Rule 405) eligible to use
Form S-3 for the offering of the Stock, including not having been an “ineligible issuer” (as
defined in Rule 405) at any such time or date. The Registration

 

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Statement is an “automatic shelf registration statement” (as defined in Rule 405) and
was filed not earlier than the date that is three years prior to the applicable Delivery
Date (as defined in Section 2).

     (c) The Registration Statement (including, without limitation, any amendments thereto
filed on or prior to the date of this Agreement) conformed and will conform in all material
respects on each Effective Date and on each Delivery Date, and any amendment to the
Registration Statement filed after the date hereof will conform in all material respects
when filed, to the requirements of the Securities Act and the rules and regulations
thereunder. The Prospectus conformed and will conform, in all material respects, when filed
with the Commission pursuant to Rule 424(b) under the Securities Act and on each Delivery
Date, to the requirements of the Securities Act and the rules and regulations thereunder.
The documents incorporated by reference in the Prospectus conformed, and any further
documents so incorporated will conform, when filed with the Commission, in all material
respects to the requirements of the Exchange Act or the Securities Act, as applicable, and
the rules and regulations of the Commission thereunder.

     (d) The Registration Statement did not, as of any Effective Date, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; provided that no representation
or warranty is made as to information contained in or omitted from the Registration
Statement in reliance upon and in conformity with written information concerning the Agent
furnished to the Company by the Agent specifically for inclusion therein, which information
consists solely of the information specified in Section 6(e).

     (e) The Prospectus did not and will not, as of its date or on any Delivery Date,
contain an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that no representation or warranty is made as to information
contained in or omitted from the Prospectus in reliance upon and in conformity with written
information concerning the Agent furnished to the Company by the Agent specifically for
inclusion therein, which information consists solely of the information specified in Section
6(e).

     (f) The documents incorporated by reference in the Prospectus did not, and any further
documents filed and incorporated by reference therein will not, when they became effective
or were filed with the Commission, as the case may be, contain an untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

     (g) The Pricing Disclosure Package did not and will not, as of any Applicable Time,
contain an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that no representation or warranty is made as to information
contained in or omitted from the Pricing Disclosure Package in reliance upon and in
conformity with written information concerning the Agent furnished to the

 

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Company by the Agent specifically for inclusion therein, which information consists
solely of the information specified in Section 6(e).

     (h) Each Issuer Free Writing Prospectus, when considered together with the remainder of
the Pricing Disclosure Package as of each Applicable Time, did not and will not contain an
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained
in or omitted from such Issuer Free Writing Prospectus in reliance upon and in conformity
with written information concerning the Agent furnished to the Company by the Agent
specifically for inclusion therein, which information consists solely of the information
specified in Section 6(e).

     (i) Each Issuer Free Writing Prospectus conformed or will conform in all material
respects to the requirements of the Securities Act and the rules and regulations thereunder
on the date of first use, and the Company has complied with all prospectus delivery and any
filing requirements applicable to such Issuer Free Writing Prospectus pursuant to the
Securities Act and the rules and regulations thereunder. The Company has not made and will
not make any offer relating to the Stock that would constitute an Issuer Free Writing
Prospectus without the prior written consent of the Agent (such consent not to be
unreasonably withheld or delayed). The Company has retained in accordance with the
Securities Act and the rules and regulations thereunder all Issuer Free Writing Prospectuses
that were not required to be filed pursuant to the Securities Act and the rules and
regulations thereunder.

     (j) Each of the Company and its Significant Subsidiaries (as defined below) has been
duly incorporated, organized or formed and is validly existing in good standing under the
laws of the jurisdiction of its incorporation, organization or formation, with full power
and authority to own, lease and operate its properties and conduct its business; and each of
the Company and its Significant Subsidiaries is duly qualified to do business and is in good
standing in each jurisdiction in which the character of the business conducted by it or the
location of the properties owned, leased or operated by it make such qualification
necessary, except where the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect
on the condition (financial or otherwise), results of operations or business of the Company
and its subsidiaries taken as a whole or a material adverse effect on the performance by the
Company of this Agreement (a “Material Adverse Effect”). The Company does not have any
subsidiaries or control, directly or indirectly, any corporation, association or other
entity other than the subsidiaries listed in Exhibit 21 to the Company’s Annual Report on
Form 10-K for the most recent fiscal year. None of the subsidiaries of the Company (other
than the Significant Subsidiaries) is a “significant subsidiary” (as defined in Rule 405).

     (k) The authorized, issued and outstanding Class A Common Stock, Class B common stock,
par value $0.01 per share (the “Class B Common Stock”), and other capital stock of the
Company is as set forth in the Prospectus and the Pricing Disclosure Package (except for
subsequent issuances, if any, of Class A Common Stock or Class B

 

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Common Stock pursuant to employee or director stock option or stock purchase plans
referred to in the Prospectus and the Pricing Disclosure Package or pursuant to the exercise
of options referred to in the Prospectus and the Pricing Disclosure Package). The shares of
issued and outstanding Class A Common Stock and Class B Common Stock have been duly
authorized and validly issued and are fully paid and non-assessable, conform to the
descriptions thereof contained in the Prospectus and the Pricing Disclosure Package and were
issued in compliance with federal and state securities laws; none of the outstanding shares
of Class A Common Stock or Class B Common Stock was issued in violation of any preemptive
rights, resale rights, rights of first refusal or other similar rights; and no capital stock
of the Company is outstanding other than shares of Class A Common Stock and Class B Common
Stock. All of the Company’s options, warrants and other rights to purchase or exchange any
securities for shares of Class A Common Stock, Class B Common Stock or other capital stock
have been duly authorized and validly issued, conform to the description thereof contained
in the Prospectus and the Pricing Disclosure Package and were issued in compliance with
federal and state securities laws. All of the outstanding shares of capital stock of each
Significant Subsidiary of the Company that is a corporation have been duly authorized and
validly issued and are fully paid and non-assessable. All of the outstanding shares of
capital stock, partnership interests or other ownership interests of each Significant
Subsidiary of the Company are owned directly or indirectly by the Company, free and clear of
any claim, lien, encumbrance, security interest, restriction upon voting or transfer,
preemptive rights or any other claim of any third party (collectively, “Liens”), except such
Liens as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     (l) The shares of Stock to be issued and sold by the Company through the Agent
hereunder have been duly authorized and, upon payment and delivery in accordance with this
Agreement, will be validly issued, fully paid and non-assessable, will conform to the
description thereof contained in the Prospectus and the Pricing Disclosure Package, will be
issued in compliance with federal and state securities laws and will be free of statutory
and contractual preemptive rights, rights of first refusal and similar rights.

     (m) The Company has all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement. This Agreement has been duly and validly
authorized, executed and delivered by the Company.

     (n) None of the execution, delivery and performance of this Agreement by the Company, 
the issuance, sale and delivery of the Stock by the Company, compliance by the Company with
any of the provisions of this Agreement nor the application of the proceeds from the sale of
the Stock as described under “Use of Proceeds” in the Prospectus Supplement and the Pricing
Disclosure Package will (i) conflict with or result in a breach or violation of any
agreement, indenture or other instrument to which the Company or any of its subsidiaries is
a party or by which any of them is bound, or to which any of their properties is subject;
(ii) result in the creation or imposition of any lien, charge, claim or encumbrance upon any
property or asset of the Company or any of its subsidiaries; (iii) result in a breach or
violation of, or constitute a default under, the

 

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certificate of incorporation, by-laws, partnership agreement or other organizational
documents of the Company or any of its subsidiaries; or (iv) violate any law, rule,
administrative regulation or decree of any court or any governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their respective
properties, except, with respect to clauses (i), (ii) and (iv), conflicts or violations that
would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect.

     (o) No permit, consent, approval, authorization or order of any court, governmental
agency or body or financial institution is required for the issue and sale of the Stock, the
execution, delivery and performance of this Agreement by the Company, or the application of
the proceeds from the sale of the Stock as described under “Use of Proceeds” in the
Prospectus Supplement and the Pricing Disclosure Package, except for the registration of the
Stock under the Securities Act and such consents, approvals, authorizations, orders,
filings, registrations or qualifications as may be required under the Exchange Act and
applicable state or foreign securities laws in connection with the purchase and sale of the
Stock through the Agent.

     (p) The financial statements (including the related notes and supporting schedules)
included or incorporated by reference in the Prospectus and the Pricing Disclosure Package
present fairly in all material respects the financial condition, results of operations and
cash flows of the entities purported to be shown thereby at the dates and for the periods
indicated (subject to year-end adjustments in the case of unaudited interim financial
statements) and have been prepared in accordance with U.S. generally accepted accounting
principles applied on a consistent basis throughout the periods indicated and conform in all
material respects with such generally accepted accounting principles, except as otherwise
noted therein; and the supporting schedules included or incorporated by reference in the
Registration Statement present fairly in all material respects the information required to
be stated therein.

     (q) Any pro forma financial statements that may be included or incorporated by
reference in the Prospectus and the Pricing Disclosure Package include assumptions that
provide a reasonable basis for presenting the significant effects directly attributable to
the transactions and events described therein, the related pro forma adjustments give
appropriate effect to those assumptions, and the pro forma adjustments reflect the proper
application of those adjustments to the historical financial statement amounts in the pro
forma financial statements included or incorporated by reference in the Prospectus and the
Pricing Disclosure Package. Any pro forma financial statements included or incorporated by
reference in the Prospectus and the Pricing Disclosure Package comply as to form in all
material respects with the applicable requirements of Regulation S-X under the Act.

     (r) Ernst & Young LLP, who have reported on certain financial statements of the Company
included in the Prospectus and the Pricing Disclosure Package and whose report appears in
the Prospectus and the Pricing Disclosure Package or is incorporated by reference therein,
are independent public accountants as required by the Securities Act and the rules and
regulations thereunder, and were independent public accountants as

 

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required by the Securities Act and the rules and regulations thereunder during the
periods covered by the financial statements on which they reported contained or incorporated
by reference in the Prospectus and the Pricing Disclosure Package.

     (s) The Company and its subsidiaries maintain systems of internal control over
financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) that
have been designed by, or under the supervision of, their respective principal executive and
principal financial officers, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in
accordance with U.S. generally accepted accounting principles and statutory accounting
principles. The Company and its subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with U.S.
generally accepted accounting principles and statutory accounting practices and to maintain
accountability for assets; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization and (iv) recorded assets are compared with
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.

     (t) The Company and its subsidiaries have established and maintain disclosure controls
and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that have
been designed to ensure that material information relating to the Company and its
subsidiaries required to be disclosed in the reports the Company files or submits under the
Exchange Act is made known to the Company’s principal executive officer and principal
financial officer by others within those entities; and such disclosure controls and
procedures are effective in all material respects to perform the functions for which they
were established.

     (u) Since the date of the latest audited financial statements incorporated by reference
in the Prospectus and the Pricing Disclosure Package, (i) the Company has not been advised
of any fraud, whether or not material, that involves management or other employees who have
a significant role in the internal controls of the Company and each of its subsidiaries, and
(ii) there have been no significant changes in internal controls or in other factors that
would significantly affect internal controls, including any corrective actions with regard
to significant deficiencies and material weaknesses.

     (v) The Company and, to the knowledge of the Company, its officers and directors are in
compliance in all material respects with the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated in connection therewith.

     (w) Since the date of the latest audited financial statements included or incorporated
by reference in the Prospectus and the Pricing Disclosure Package, neither the Company nor
any of its subsidiaries has (i) sustained any loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance, or from any
labor dispute or court or governmental action, order or decree, (ii) issued or granted any
securities (other than (A) the Stock, (B) shares of capital stock

 

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issued pursuant to employee benefit plans, qualified stock option plans or other
employee compensation plans existing on the date hereof or pursuant to currently outstanding
options, warrants or rights not issued under one of those plans and (C) publicly announced
issuances of debt securities ), (iii) incurred any material liability or obligation, direct
or contingent, other than liabilities and obligations that were incurred in the ordinary
course of business, (iv) entered into any material transaction not in the ordinary course of
business, or (v) declared or paid any dividend on its capital stock (other than regular cash
dividends on the Class A Common Stock or the Company’s Class B Common Stock, or dividends
payable on the Class A Common Stock or the Class B Common Stock in shares of Class A Common
Stock or Class B Common Stock), and since such date, there has not been any change in the
capital stock or long-term debt of the Company or any of its subsidiaries or any adverse
change, or any development involving a prospective adverse change, in or affecting the
condition (financial or otherwise), results of operations, business or prospects of the
Company and its subsidiaries taken as a whole, in each case in this paragraph (w) (except
clause (v) hereof) as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

     (x) The Company and each of its subsidiaries have good and marketable title in fee
simple to all real property and good and marketable title to all personal property owned by
them, in each case free and clear of all liens, encumbrances and defects, except where the
failure to have such good and marketable title or the existence of any such liens,
encumbrances or defects would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. All assets held under lease by the Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases with such
exceptions as do not materially interfere with the use made and proposed to be made of such
assets by the Company and its subsidiaries, except where the failure of any such leases to
be valid, subsisting or enforceable or the existence of such exceptions would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (y) The Company is not required to be licensed as an insurance company; Reliance
Standard Life Insurance Company of Texas (“RSLIC-Texas”), Reliance Standard Life Insurance
Company (“RSLIC”), First Reliance Standard Life Insurance Company (“FRSLIC”), Safety First
Insurance Company (“SFIC”) and Safety National Casualty Corporation (“SNCC”; RSLIC-Texas,
RSLIC, FRSLIC, SFIC and SNCC are herein called, collectively, the “Insurance Subsidiaries”,
and RSLIC-Texas, RSLIC, SNCC and SIG Holdings, Inc. are herein called, collectively, the
“Significant Subsidiaries”) are each duly licensed as insurers under the insurance laws and
regulations of Texas, Illinois, New York, Illinois and Missouri, respectively; and the
Insurance Subsidiaries have filed with the appropriate insurance regulatory authorities all
reports, documents and other information required to be filed under the insurance laws of
Texas, Illinois, New York, Illinois and Missouri, respectively, except as to filings the
failure of which to make would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

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     (z) Each of the Company and its subsidiaries hold such permits, licenses, patents,
franchises, certificates of need, authorities and other approvals or authorizations from
governmental or regulatory authorities (including, without limitation, insurance licenses
from the insurance regulatory agencies of the various states where it conducts business (the
“Insurance Licenses”)) (collectively, the “Permits”) which are necessary under applicable
law (i) to the conduct of its insurance businesses as presently operated and (ii) to own its
properties and conduct its businesses in the manner described in the Prospectus and the
Pricing Disclosure Package; each of the Company and its subsidiaries has fulfilled and
performed all of its obligations necessary to maintain the Permits; there is no past,
pending or, to the knowledge of the Company or any of its subsidiaries, threatened action,
suit, proceeding or investigation that may reasonably be expected to lead to the revocation,
termination or suspension of any Permit (including, without limitation, the Insurance
Licenses); except, in each of the foregoing cases, as to Insurance Licenses, the failure of
which to obtain or maintain would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; and no insurance regulatory agency or body has
issued any order or decree (specifically applicable to one or more of the Insurance
Subsidiaries as opposed to insurance companies generally) impairing, restricting or
prohibiting the payment of dividends by any of the Company’s subsidiaries to their
respective parent companies. Neither the Company nor any of its subsidiaries has received
notice of any revocation or modification of any such Permits or has any reason to believe
that any such Permits will not be renewed in the ordinary course.

     (aa) All reinsurance ceded treaties, contracts, agreements and arrangements to which
the Company or any of the Insurance Subsidiaries is a party are in full force and effect,
other than those that, by their terms, have expired or otherwise terminated, or those the
failure of which to be in full force and effect would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, and none of the Company or any of
its Insurance Subsidiaries is in violation of, or in default in the performance, observance
or fulfillment of, any material obligation agreement, covenant or condition contained
therein, which violation or default would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; none of the Company or any of its Insurance
Subsidiaries has received any notice from any of the other parties to such treaties,
policies, contracts, agreements or arrangements that such other party intends not to perform
in any material respect such treaty, contract, agreements or arrangements or will be unable
to perform such treaty, contract, agreement or arrangement where the failure to perform
would, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

     (bb) The statutory annual and quarterly statements of each of the Insurance
Subsidiaries and the statutory balance sheets and income statements included in such
statutory annual and quarterly statements most recently filed in any state have been
prepared in conformity with required or permitted statutory accounting principles or
practices consistently followed, except as may otherwise be indicated in the notes thereto,
and present fairly in all material respects the statutory financial position of each
Insurance Subsidiary as at the dates thereof, and on a statutory basis for the periods
covered thereby.

 

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     (cc) The Company and its subsidiaries own or possess, or have the ability to acquire,
all patents, patent rights, licenses, inventions, copyrights, know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures), trademarks, service marks and trade names currently employed by them
in connection with the business now operated by them, except where the failure to own,
possess or have the ability to acquire such patents, patent rights, licenses, inventions,
copyrights, know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures), trademarks, service marks
and trade names would not, individually or in the aggregate, have a Material Adverse Effect,
and none of the Company nor its subsidiaries has received any notice of infringement of or
conflict with asserted rights of others with respect to any of the foregoing which,
individually or in the aggregate, if subject to any unfavorable decision, ruling or finding,
would have a Material Adverse Effect.

     (dd) There is no litigation or governmental proceeding to which the Company or any of
its subsidiaries is a party or to which any property or assets of the Company or any of its
subsidiaries is subject or which is pending or, to the knowledge of the Company,
contemplated or threatened against the Company or any of its subsidiaries that would,
individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

     (ee) There are no statutes or regulations, legal or governmental proceedings or
contracts or other documents that would be required to be described in the Registration
Statement or the Prospectus (in each case including, without limitation, the documents
incorporated by reference therein) or, in the case of documents, to be filed as exhibits to
the Registration Statement, that are not described and filed as required.

     (ff) The Company and each of its subsidiaries carry, or are covered by, liability
insurance and insurance against physical damage to their properties from insurers of
recognized financial responsibility in such amounts and covering such risks as the Company
believes to be adequate for the conduct of the business of the Company and its subsidiaries,
taken as a whole. Except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, (i) the Company and its subsidiaries are in
compliance with the terms of such policies in all material respects; (ii) neither the
Company nor any of its subsidiaries has received notice from any insurer or agent of such
insurer that capital improvements or other expenditures are required or necessary to be made
in order to continue such insurance; and (iii) there are no claims by the Company or any of
its subsidiaries under any such policy or instrument as to which any insurance company is
denying liability or defending under a reservation of rights clause.

     (gg) No relationship, direct or indirect, exists between or among the Company, on the
one hand, and the directors, officers, stockholders, customers or suppliers of the Company,
on the other hand, that is required to be described in the Prospectus and the Pricing
Disclosure Package which is not so described.

 

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     (hh) To the knowledge of the Company, after due inquiry, no labor disturbance by or
dispute with the employees of the Company or any of its subsidiaries exists or is imminent
that would reasonably be expected to have a Material Adverse Effect.

     (ii) Neither the Company nor any of its subsidiaries (i) is in violation of its
certificate of incorporation or by-laws or other organizational documents, (ii) is in
default, and no event has occurred which, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement, license or
other agreement or instrument to which it is a party or by which it is bound or to which any
of its properties or assets is subject or (iii) is in violation of any law, ordinance, rule,
regulation or order of any court or governmental agency or body having jurisdiction over it
or its property or assets, except in the case of clauses (ii) and (iii), to the extent any
such conflict, breach, violation or default would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     (jj) The Company and its subsidiaries (i) are in compliance with any and all applicable
foreign, Federal, state and local laws and regulations relating to the protection of human
health and safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective
businesses; and (iii) are in compliance with all terms and conditions of any such permit,
license or approval, except where such noncompliance with Environmental Laws, failure to
receive required permits, licenses or other approvals or failure to comply with the terms
and conditions of such permits, licenses or approvals would not, individually or in the
aggregate, have a Material Adverse Effect.

     (kk) The Company and each of its subsidiaries have filed all Federal and all material
state, local and foreign tax returns required to be filed through the date hereof, subject
to permitted extensions, which returns are complete and correct in all material respects,
and have paid all taxes due, and neither the Company nor any subsidiary is in default in the
payment of any taxes which were payable pursuant to said returns or any assessments with
respect thereto, except for any such taxes or assessments which are being contested in good
faith by appropriate proceedings and for which appropriate reserves, if any, have been
established in accordance with U.S. generally accepted accounting principles and statutory
accounting principles, and no tax deficiency has been determined adversely to the Company or
any of its subsidiaries, nor does the Company have any knowledge of any tax deficiencies
that have been, or could reasonably be expected to be, asserted against the Company that
would, in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (ll) (i) Except as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect, (i) each “employee benefit plan” (within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”))
for which the Company or any of its subsidiaries would have any liability, including, but
not limited to, any liability relating to the Company or any of its subsidiaries being a
member of a “Controlled Group” (defined as any organization which

 

12

is a member of a controlled group of corporations within the meaning of Section 414 of
the Internal Revenue Code of 1986, as amended (the “Code”)(each, a “Plan”)), has been
maintained in compliance with its terms and with the requirements of all applicable
statutes, rules and regulations including ERISA and the Code; (ii) no prohibited
transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has
occurred with respect to any Plan excluding transactions effected pursuant to a statutory or
administrative exemption; (iii) with respect to each Plan subject to Title IV of ERISA (A)
no “reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred or is
reasonably expected to occur, (B) there has been no failure to satisfy the minimum funding
standard under Section 302 of ERISA or Section 412 of the Code and (C) neither the Company
or any member of its Controlled Group has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA (other than contributions to the Plan or premiums to the
PBGC in the ordinary course and without default) in respect of a Plan (including a
“multiemployer plan”, within the meaning of Section 4001(c)(3) of ERISA); and (iv) each Plan
that is intended to be qualified under Section 401(a) of the Code is so qualified and
nothing has occurred, whether by action or by failure to act, which would cause the loss of
such qualification.

     (mm) The statistical and market-related data, if any, included in the Prospectus and
the Pricing Disclosure Package and the consolidated financial statements of the Company and
its subsidiaries included or incorporated by reference in the Prospectus and the Pricing
Disclosure Package are based on or derived from sources that the Company believes to be
reliable and accurate in all material respects.

     (nn) Neither the Company nor any subsidiary is, and as of each Applicable Time and
Delivery Date and, after giving effect to the offer and sale of the Stock and the
application of the proceeds therefrom as described under “Use of Proceeds” in the Prospectus
Supplement and the Pricing Disclosure Package, none of them will be, (i) an “investment
company” or a company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules and
regulations of the Commission thereunder or (ii) a “business development company” (as
defined in Section 2(a)(48) of the Investment Company Act).

     (oo) The statements set forth in the Prospectus and the Pricing Disclosure Package
under the captions “Description of Common Stock,” “Description of Preferred Stock,” and
“Dividend Policy,” insofar as they purport to describe the Class A Common Stock, Class B
Common Stock or the Company’s preferred stock, provisions of the Company’s charter or bylaws
or the provisions of the laws, regulations and other documents and legal matters referred to
therein, are accurate in all material respects.

     (pp) There are no contracts, agreements or understandings between the Company and any
person granting such person the right to require the Company to file a registration
statement under the Securities Act with respect to any securities of the Company owned or to
be owned by such person or to require the Company to include such securities in the
securities registered pursuant to the Registration Statement or in any

 

13

securities being registered pursuant to any other registration statement filed by the
Company under the Securities Act.

     (qq) Neither the Company nor any of its subsidiaries is a party to any contract,
agreement or understanding with any person (other than this Agreement) that would give rise
to a valid claim against any of them or the Agent for a brokerage commission, finder’s fee
or like payment in connection with the offering and sale of the Stock.

     (rr) The Company has not sold or issued any securities that would be integrated with
the offering of the Stock contemplated by this Agreement pursuant to the Securities Act, the
rules and regulations thereunder or the interpretations thereof by the Commission.

     (ss) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any of its affiliates has taken, directly or indirectly, any action designed to or
that has constituted or that would reasonably be expected to cause or result in the
stabilization or manipulation of the price of any security of the Company in connection with
the offering of the shares of the Stock; and, without limitation to the foregoing, neither
the Company nor any of its subsidiaries has, on or after the date of this Agreement,
purchased any Class A Common Stock or any other capital stock of the Company pursuant to the
Company’s previously announced share repurchase program or any similar program.

     (tt) The Stock has been approved for listing, subject to official notice of issuance,
on the New York Stock Exchange (the “Exchange”).

     (uu) The Company has not distributed and will not distribute any offering material in
connection with the offering or sale of the Stock other than the Prospectus and any Issuer
Free Writing Prospectus to which the Agent has consented in accordance with Section 1(i) or
3(a)(vii).

     (vv) Neither the Company nor any subsidiary is in violation of or has received notice
of any violation with respect to any federal or state law relating to discrimination in the
hiring, promotion or pay of employees, any applicable federal or state wage and hour laws,
or any state law precluding the denial of credit due to the neighborhood in which a property
is situated, the violation of any of which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Affect.

     (ww) Neither the Company nor any of its subsidiaries, nor, to the knowledge of the
Company, any director, officer, agent, employee or other person acting on behalf of the
Company or any of its subsidiaries, has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (iii) violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977; or (iv) made any bribe or other
unlawful payment.

 

14

     (xx) The operations of the Company and its subsidiaries are and have been conducted at
all times in compliance with applicable financial recordkeeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all applicable jurisdictions, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or
enforced by any applicable governmental agency (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its subsidiaries with respect to
the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

     (yy) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not
directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise
make available such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.

     (zz) The Class A Common Stock is an “actively-traded security” exempted from the
requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such
rule.

     (aaa) None of the proceeds from the sale of the Stock has been or will be paid to the
Agent (except for the payment of the commissions pursuant to this Agreement) or, to the
knowledge of the Company, to any affiliate of the Agent; and the Company is not an
“affiliate” (as defined in NASD Conduct Rule 2720) of any member of the Financial Industry
Regulatory Authority (“FINRA”).

     (bbb) The Company has not entered into and will not enter into any other sales or
distribution agreement or similar agreement or arrangement with any agent or other person or
entity providing for the offering, issuance or sale of any Class A Common Stock, Class B
Common Stock or other capital stock of the Company in a manner similar in nature to the
program contemplated by this Agreement.

          Any certificate signed by any officer of the Company and delivered to the Agent in connection
with the offering of the Stock shall be deemed a representation and warranty by the Company to the
Agent, as to the matters covered thereby.

          2. Sale and Delivery of Stock. (a) Subject to the terms and conditions set forth herein, the
Company agrees to issue and sell through the Agent, as sales agent, and the Agent agrees to use its
reasonable efforts to sell as sales agent for the Company, the Stock.

          (b) The Stock is to be sold on a daily basis or otherwise as shall be agreed to by the Company
and the Agent on any trading day (other than a day on which the Exchange is scheduled to close
prior to its regular weekday closing time) (each, a “Trading Day”) that the

 

15

Company has instructed the Agent to make such sales. On any Trading Day, the Company may
instruct the Agent by telephone (confirmed promptly by telecopy or email, which confirmation will
be promptly acknowledged (including, without limitation, by telecopy or email) by the Agent) as to
the maximum gross sales price or number of shares, as the case may be, of Stock to be sold by the
Agent on such day (in any event not in excess of the gross sales price and number of shares
available for issuance under the Prospectus and the currently effective Registration Statement) and
the minimum price per share of Stock at which such Stock may be sold. Subject to the terms and
conditions hereof, the Agent shall use its reasonable efforts to sell all of the shares of Stock so
designated by the Company.

          (c) Notwithstanding the foregoing, the Company shall not authorize the issuance and sale of,
and the Agent shall not be obligated to use its reasonable efforts to sell, any shares of Stock (i)
at a price lower than the minimum price therefor authorized from time to time, or (ii) in a number
in excess of the aggregate number of shares or gross sale price of Stock authorized from time to
time to be issued and sold under this Agreement, in each case, by the Company’s board of directors
or a duly authorized committee thereof, and notified to the Agent in writing. In addition, the
Company or the Agent may, upon notice to the other party hereto by telephone (confirmed promptly by
telecopy or email, which confirmation will be promptly acknowledged (including, without limitation,
by telecopy or email) by the Agent or the Company, as the case may be), suspend the offering of the
Stock for any reason and at any time; provided, however, that such suspension or termination shall
not affect or impair the parties’ respective obligations with respect to the Stock sold hereunder
or which an investor has agreed to purchase but which has not been delivered by the Company and
paid for by such investor as contemplated hereby, prior to the giving of such notice.

          (d) Under no circumstances shall the aggregate gross sale price or number of shares of Stock
sold pursuant to this Agreement exceed the aggregate gross sale price or number of shares, as the
case may be, of Class A Common Stock (i) set forth in the preamble paragraph of this Agreement,
(ii) available for issuance under the Prospectus and the then currently effective Registration
Statement or (iii) authorized from time to time to be issued and sold under this Agreement by the
Company’s board of directors, or a duly authorized committee thereof, and notified to the Agent in
writing. In addition, under no circumstances shall any shares of Stock be sold at a price lower
than the minimum price therefor authorized from time to time by the Company’s board of directors,
or a duly authorized committee thereof, and notified to the Agent in writing.

          (e) If either party has reason to believe that the exemptive provisions set forth in Rule
101(c)(1) of Regulation M under the Exchange Act (applicable to securities with an average daily
trading volume of $1,000,000 that are issued by an issuer whose common equity securities have a
public float value of at least $150,000,000) are not satisfied with respect to the Company or the
Stock, it shall promptly notify the other party and sales of Stock under this Agreement shall be
suspended until that or other exemptive provisions have been satisfied in the judgment of each
party.

          (f) The gross sales price of any Stock sold under this Agreement shall be the market price for
shares of the Company’s Class A Common Stock sold by the Agent under this Agreement on the Exchange
at the time of such sale. The compensation payable to the Agent for

 

16

sales of Stock shall be equal to 2.50% of the gross sales price of the Stock. The remaining
proceeds, after further deduction for any transaction fees, transfer taxes or other similar fees,
taxes or charges imposed by any Federal, state, local or other governmental, regulatory or
self-regulatory organization in respect of such sales, shall constitute the net proceeds to the
Company for such Stock (the “Net Proceeds”). The Agent shall notify the Company as promptly as
practicable if any deduction described in the preceding sentence will be required.

          (g) The Agent shall provide written confirmation (which may be by telecopy or email) to the
Company following the close of trading on the Exchange each day on which Stock is sold under this
Agreement setting forth the number of shares of Stock sold on such day, the gross sales prices of
the Stock, the Net Proceeds to the Company and the compensation payable by the Company to the Agent
under this Agreement with respect to such sales.

          (h) Settlement for sales of Stock will occur on the third business day that is also a Trading
Day following the trade date on which such sales are made, unless another date shall be agreed to
by the Company and the Agent (each such day, a “Delivery Date”). On each Delivery Date, the Stock
sold through the Agent for settlement on such date shall be delivered by the Company to the Agent
against payment of the Net Proceeds from the sale of such Stock. Settlement for all Stock shall be
effected by book-entry delivery of shares of Stock to the Agent’s account at The Depository Trust
Company against payment by the Agent of the Net Proceeds from the sale of such Stock in same day
funds delivered to an account designated by the Company. If the Company shall default on its
obligation to deliver Stock on any Delivery Date, the Company shall (i) indemnify and hold the
Agent harmless against any loss, claim or damage arising from or as a result of such default by the
Company and (ii) pay the Agent any commission to which it would otherwise be entitled absent such
default. If the Agent breaches this Agreement by failing to deliver the applicable Net Proceeds on
any Delivery Date for Stock delivered by the Company, the Agent will pay the Company interest based
on the effective overnight federal funds rate until such proceeds, together with such interest,
have been fully paid. 

          (i) The Company shall not offer or sell, or request the offer or sale of, any Stock and, by
notice to the Agent given by telephone (confirmed promptly by telecopy or email), shall cancel any
instructions for the offer or sale of Stock, and the Agent shall not be obligated to offer or sell
any Stock, (i) at any time or during any period that the Company is in possession of material
non-public information or (ii)  except as provided in Section 2(j) below, at any time from and
including the date (each, an “Announcement Date”) on which the Company shall issue a press release
containing, or shall otherwise publicly announce, its earnings, revenues or other results of
operations (each, an “Earnings Announcement”) through and including the time that is 24 hours after
the time that the Company files (a “Filing Time”) a Quarterly Report on Form 10-Q or an Annual
Report on Form 10-K that includes consolidated financial statements as of and for the same period
or periods, as the case may be, covered by such Earnings Announcement. For purposes of this
Section 2(i) and Section 2(j) below, references to “24 hours” shall exclude any hours in a day that
is not a business day.

          (j) If the Company wishes to offer or sell Stock on any date during the period from and
including an Announcement Date through and including the time that is 24 hours after the
corresponding Filing Time, the Company shall (i) prepare and deliver to the Agent (with a

 

17

copy to counsel to the Agent) a Current Report on Form 8-K which shall include substantially
the same financial and related information as was set forth in the relevant Earnings Announcement
(other than any earnings projections or similar forward-looking data) (each, an “Earnings 8-K”), in
form and substance reasonably satisfactory to the Agent, and obtain the consent of the Agent to the
filing thereof (such consent not to be unreasonably withheld or delayed), (ii) provide the Agent
with the officers’ certificate and accountants’ letter called for by Sections (3)(a)(xii)
and (xiv), respectively, and (iii) file such Earnings 8-K with the Commission, then the provisions
of clause (ii) of Section 2(i) shall not be applicable for the period from and after the time at
which the foregoing conditions shall have been satisfied (or, if later, the time that is 24 hours
after the time that the relevant Earnings Announcement was first publicly released) through and
including the time that is 24 hours after the Filing Time of the relevant Quarterly Report on
Form 10-Q or Annual Report on Form 10-K, as the case may be. For purposes of clarity, the parties
hereto agree that (A) the delivery of any officers’ certificate or accountants’ letter pursuant to
this Section 2(j) shall not relieve the Company from any of its obligations under this Agreement
with respect to any such Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as the case
may be, including, without limitation, the obligation to deliver officers’ certificates,
accountants’ letters and legal opinions and related letters as provided in Section 3 hereof, (B)
this Section 2(j) shall in no way affect the provisions of clause (i) of Section 2(i), which shall
have independent application, and (C) the provisions of this Section 2(j) shall in no way affect
the Company’s ability to file, subject to compliance with other applicable provisions of this
Agreement, Current Reports on Form 8-K relating to earnings or other matters.

          (k) The Agent shall not make any sales of the Stock on behalf of the Company other than (i) by
means of offerings of Stock in accordance with and pursuant to the terms of this Agreement and (ii)
such other sales of shares of Stock on behalf of the Company in its capacity as agent of the
Company as shall be agreed to in writing by the Company and the Agent. For purposes of clarity, the
parties hereto agree that the provisions of the foregoing sentence shall apply only to sales of the
specific shares of Stock having an aggregate gross sales price of up to $30,000,000 that may be
sold pursuant to this Agreement and does not apply to any other shares of Class A Common Stock or
other capital stock of the Company.

          3. Further Agreements of the Company and the Agent. (a) The Company agrees:

     (i) To make no further amendment or any supplement to the Registration Statement, the
Prospectus or any Issuer Free Writing Prospectus, except as provided herein; to advise the
Agent promptly of the time when any amendment or supplement to the Registration Statement,
the Prospectus or any Issuer Free Writing Prospectus has been filed and to furnish the Agent
with copies thereof; to file promptly all reports and any definitive proxy or information
statements required to be filed by the Company with the Commission pursuant to Section
13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of this Agreement; to
advise the Agent, promptly after it receives notice thereof, of the issuance by the
Commission of any stop order or of any order preventing or suspending the use of the
Prospectus or any Issuer Free Writing Prospectus, of the suspension of the qualification of
the Stock for offering or sale in any jurisdiction, of the initiation or threatening of any
proceeding or examination for any such purpose, of any notice from the Commission objecting
to the use of the form of the Registration

 

18

Statement or any post-effective amendment thereto or of any request by the Commission
for the amending or supplementing of the Registration Statement, the Prospectus or any
Issuer Free Writing Prospectus (including, without limitation, any document incorporated by
reference in any of the foregoing) or for additional information; and, in the event of the
issuance of any stop order or of any order preventing or suspending the use of the
Prospectus or any Issuer Free Writing Prospectus or suspending any such qualification, to
use promptly its reasonable best efforts to obtain its withdrawal.

     (ii) During any period when the delivery of a prospectus is required in connection with
the offering or sale of Stock, if any event shall have occurred as a result of which the
Prospectus as then amended or supplemented would include an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or, if for any
other reason it shall be necessary to amend or supplement the Prospectus (including, without
limitation, any document incorporated by reference therein) in order to comply with the
Securities Act or the Exchange Act, to notify the Agent and, upon its request, to file such
document and to prepare and furnish without charge to the Agent as many copies as the Agent
may from time to time reasonably request of an amended or supplemented Prospectus (or
incorporated document, as the case may be) that will correct such statement or omission or
effect such compliance.

     (iii) To file promptly with the Commission any amendment or supplement to the
Registration Statement or the Prospectus that may, in the reasonable judgment of the Company
or the Agent, be required by the Securities Act or requested by the Commission.

     (iv) To deliver promptly to the Agent and to counsel for the Agent a signed copy of
each amendment to the Registration Statement filed with the Commission, including all
consents and exhibits filed therewith. To deliver promptly to the Agent such number of the
following documents as the Agent shall reasonably request: (A) conformed copies of the
Registration Statement as originally filed with the Commission and each amendment thereto
(in each case excluding exhibits other than this Agreement and the computation of per share
earnings), (B) the Prospectus and any amended or supplemented Prospectus, (C) each Issuer
Free Writing Prospectus and (D) any document incorporated by reference in the Prospectus.

     (v) To pay the applicable Commission filing fees relating to the Stock within the time
required by Rule 456(b)(1) without regard to the proviso therein and otherwise in accordance
with Rules 456(b) and 457(r) under the Act.

     (vi) Prior to filing with the Commission any amendment or supplement to the
Registration Statement, the Prospectus or any Issuer Free Writing Prospectus, or any
document incorporated by reference in the Prospectus, or any amendment to any document
incorporated by reference in the Prospectus, to furnish a copy thereof to the Agent and
counsel for the Agent and, except in the case of a document (other than an Earnings 8-K or
any amendment thereto) incorporated by reference in the Prospectus or an amendment thereto,
obtain the consent of the Agent to the filing (such consent not to

 

19

be unreasonably withheld or delayed); provided that the provisions of this paragraph
(vi) shall not apply to any prospectus, prospectus supplement or issuer free writing
prospectus relating to an offering of securities other than the Stock.

     (vii) Not to make any offer relating to the Stock that would constitute an Issuer Free
Writing Prospectus without the prior written consent of the Agent.

     (viii) To comply with all applicable requirements of Rule 433 under the Securities Act
with respect to any Issuer Free Writing Prospectus. During any period when the delivery of
a prospectus is required in connection with the offering or sale of Stock, if any event
shall have occurred as a result of which any Issuer Free Writing Prospectus, as then amended
or supplemented, would conflict with the information in the Registration Statement or the
Prospectus or would include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or, if for any other reason it
shall be necessary to amend or supplement any Issuer Free Writing Prospectus in order to
comply with the Securities Act, to notify the Agent and, upon its request, to file such
document and to prepare and furnish without charge to the Agent as many copies as the Agent
may from time to time reasonably request of an amended or supplemented Issuer Free Writing
Prospectus that will correct such conflict, statement or omission or effect such compliance.

     (ix) As soon as practicable after each Effective Date (it being understood that the
Company shall have until at least 405 days or, if the fourth quarter following the fiscal
quarter that includes such Effective Date is the last fiscal quarter of the Company’s fiscal
year, 440 days after the end of the Company’s current fiscal quarter), to make generally
available to the Company’s security holders and to deliver to the Agent an earnings
statement of the Company and its subsidiaries (which need not be audited) complying with
Section 11(a) of the Securities Act and the rules and regulations thereunder (including, at
the option of the Company, Rule 158).

     (x) Promptly from time to time to take such action as the Agent may reasonably request
to qualify the Stock for offering and sale under the securities or Blue Sky laws of Canada
and such other jurisdictions as the Agent may reasonably request, and to maintain such
qualifications in effect for as long as may be necessary to complete the sale of the Stock;
provided that in connection therewith the Company shall not be required to (i) qualify as a
foreign corporation in any jurisdiction in which it would not otherwise be required to so
qualify, (ii) file a general consent to service of process in any such jurisdiction or (iii)
subject itself to taxation in any jurisdiction in which it would not otherwise be subject.

     (xi) To cooperate on a timely basis with any reasonable due diligence review conducted
by the Agent or its counsel from time to time in connection with the transactions
contemplated hereby, including, without limitation, and upon reasonable notice, providing
information and making available documents and appropriate corporate officers, during
regular business hours and at the Company’s principal offices, as the Agent may reasonably
request.

 

  20

     (xii) Upon commencement of the offering of Stock under this Agreement, promptly after
each (i) date the Registration Statement or the Prospectus shall be amended or supplemented
(other than (1) by an amendment or supplement providing solely for the determination of the
terms of the Stock, (2) in connection with the filing of any report or other document under
Section 13, 14 or 15(d) of the Exchange Act) or (3) by a prospectus supplement relating to
the offering of other securities (including, without limitation, other shares of Class A
Common Stock)) (each such date, a “Registration Statement Amendment Date") and (ii) Company
Periodic Report Date (as defined below), and promptly after each reasonable request by the
Agent (each date of any such request by the Agent, a “Request Date") (each of the date of
the commencement of the offering of Stock under this Agreement and each Registration
Statement Amendment Date, Company Periodic Report Date and Request Date is hereinafter
called a “Representation Date"), to furnish or cause to be furnished to the Agent (with a
copy to counsel to the Agent) a certificate dated such Representation Date (or, in the case
of an amendment or supplement to the Registration Statement or the Prospectus (including,
without limitation, by the filing of an Annual Report on Form 10-K, Quarterly Report on Form
10-Q or Earnings 8-K or any amendment thereto), the date of the effectiveness of such
amendment to the Registration Statement or the date of filing with the Commission of such
supplement or any such Form 10-K, Form 10-Q, Earnings 8-K or amendment thereto, as the case
may be), in a form reasonably satisfactory to the Agent to the effect that the statements
contained in the certificate referred to in Section 5(g)(ii) of this Agreement which was
last furnished to the Agent are true and correct as of the date of such certificate as
though made at and as of the date of such certificate (except that such statements shall be
deemed to relate to the Registration Statement, the Prospectus and the Pricing Disclosure
Package as amended and supplemented to the date of such certificate) or, in lieu of such
certificate, a certificate of the same tenor as the certificate referred to in Section
5(g)(ii), but modified as necessary to relate to the Registration Statement, the Prospectus
and the Pricing Disclosure Package as amended and supplemented to the date of such
certificate. As used in this paragraph, to the extent there shall be an Applicable Time on
or following the applicable Representation Date, “promptly” shall be deemed to be on or
prior to the next succeeding Applicable Time.

     (xiii) Upon commencement of the offering of Stock under this Agreement, and promptly
after each other Representation Date, to furnish or cause to be furnished to the Agent (with
a copy to counsel to the Agent) the written opinion and letter of each counsel to the
Company, dated such Representation Date (or, in the case of an amendment or supplement to
the Registration Statement or the Prospectus (including, without limitation, by the filing
of an Annual Report on Form 10-K or Quarterly Report on Form 10-Q or any amendment thereto),
the date of the effectiveness of such amendment to the Registration Statement or the date of
filing with the Commission of such supplement or any such Form 10-K, Form 10-Q or amendment
thereto, as the case may be), in a form and substance reasonably satisfactory to the Agent
and its counsel, of the same tenor as the opinions and letters referred to in Sections 5(d)
and 5(e) of this Agreement, but modified as necessary to relate to the Registration
Statement, the Prospectus and the Pricing Disclosure Package as amended and supplemented to
the date of such opinion and letter or, in lieu of such opinion and letter, counsel last
furnishing any such opinion and letter to the Agent shall furnish the Agent with a letter
substantially to the effect that

 

21

the Agent may rely on such counsel’s last opinion and letter to the same extent as
though each were dated the date of such letter authorizing reliance (except that statements
in such last opinion and letter shall be deemed to relate to the Registration Statement, the
Prospectus and the Pricing Disclosure Package as amended and supplemented to the date of
such letter authorizing reliance). As used in this paragraph, to the extent there shall be
an Applicable Time on or following the applicable Representation Date, “promptly” shall be
deemed to be on or prior to the next succeeding Applicable Time. Solely for purposes of
this paragraph (xiii), the term “Representation Date” shall not include the date of filing
of any Earnings 8-K or any amendment thereto.

     (xiv) Upon commencement of the offering of Stock under this Agreement, and promptly
after each other Representation Date, to cause Ernst & Young LLP, or other independent
accountants reasonably satisfactory to the Agent, to furnish to the Agent (with a copy to
counsel to the Agent) a letter, dated such Representation Date (or, in the case of an
amendment or supplement to the Registration Statement or the Prospectus (including, without
limitation, by the filing of an Annual Report on Form 10-K, Quarterly Report on Form 10-Q or
Earnings 8-K or any amendment thereto), the date of the effectiveness of such amendment to
the Registration Statement or the date of filing with the Commission of such supplement or
any such Form 10-K, Form 10-Q, Earnings 8-K or amendment thereto, as the case may be), in
form reasonably satisfactory to the Agent and its counsel, of the same tenor as the letter
referred to in Section 5(f) hereof, but modified as necessary to relate to the Registration
Statement, the Prospectus and the Pricing Disclosure Package as amended and supplemented to
the date of such letter. As used in this paragraph, to the extent there shall be an
Applicable Time on or following the applicable Representation Date, “promptly” shall be
deemed to be on or prior to the next succeeding Applicable Time.

     (xv) If, to the knowledge of the Company, all filings required by Rule 424 and Rule 433
under the Securities Act in connection with this offering shall not have been made or any
representation in Section 1(a) shall not be true and correct on the applicable Delivery
Date, to offer to any person who has agreed to purchase Stock from the Company on such
Delivery Date as the result of an offer to purchase solicited by the Agent the right to
refuse to purchase and pay for such Stock.

     (xvi) To disclose in its Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q, as applicable, the number of shares of Stock sold through the Agent under this
Agreement, the Net Proceeds to the Company and the compensation paid by the Company with
respect to sales of Stock pursuant to this Agreement during the relevant quarter.

     (xvii) Without (a) giving the Agent at least five business days’ prior written notice
(or two business days’ prior written notice on any Trading Day with respect to which the
Company has not instructed the Agent to make sales and which does not occur in any period
when the delivery of a prospectus is required in connection with the offering or sale of
Stock) specifying the nature of the proposed sale and the date of such proposed sale and (b)
the Agent suspending activity under this program for such period of time as requested by the
Company or as deemed appropriate by the Agent in light of the

 

22

proposed offer, sale, pledge, disposition or transaction, as the case may be, directly
or indirectly, not to (1) offer for sale, sell, pledge or otherwise dispose of (or enter
into any transaction or device that is designed to, or would reasonably be expected to,
result in the disposition by any person at any time in the future of) any shares of Class A
Common Stock or Class B Common Stock or securities convertible into or exchangeable for
Class A Common Stock or Class B Common Stock (other than the Stock and shares issued
pursuant to employee benefit plans, qualified stock option plans or other employee
compensation plans existing on the date hereof or pursuant to currently outstanding options,
warrants or rights not issued under one of those plans), or sell or grant options, rights or
warrants with respect to any shares of Class A Common Stock or Class B Common Stock or
securities convertible into or exchangeable for Class A Common Stock or Class B Common Stock
(other than the grant of options pursuant to option plans existing on the date hereof), (2)
enter into any swap or other derivatives transaction that transfers to another, in whole or
in part, any of the economic benefits or risks of ownership of such shares of Class A Common
Stock or Class B Common Stock, whether any such transaction described in clause (1) or (2)
above is to be settled by delivery of Class A Common Stock or Class B Common Stock or other
securities, in cash or otherwise, (3) file or cause to be filed a registration statement,
including any amendments, with respect to the registration of any shares of Class A Common
Stock or Class B Common Stock or securities convertible, exercisable or exchangeable into
Class A Common Stock or Class B Common Stock or any other securities of the Company (other
than any registration statement on Form S-8) or (4) publicly disclose the intention to do
any of the foregoing, in each case without the prior written consent of the Agent. The
foregoing sentence shall not apply to the Stock to be offered and sold through the Agent
pursuant to this Agreement.

     (xviii) To apply the Net Proceeds from the sale of the Stock being sold by the Company
substantially in accordance with the description as set forth in the Prospectus Supplement
and the Pricing Disclosure Package under the caption “Use of Proceeds.”

     (xix) During a period of five years from the latest Effective Date, to furnish to the
Agent copies of all reports or other communications (financial or other) furnished to
stockholders, and to deliver to the Agent (i) as soon as they are available, copies of any
reports and financial statements furnished to or filed with the Commission or any national
securities exchange on which any class of securities of the Company is listed; and (ii) such
additional information concerning the business and financial condition of the Company as the
Agent may from time to time reasonably request (such financial statements to be on a
consolidated basis to the extent the accounts of the Company and its subsidiaries are
consolidated in reports furnished to its stockholders generally or to the Commission).
However, so long as the Company is subject to the reporting requirements of either Section
13 or Section 15(d) of the Exchange Act and is timely filing reports with the Commission on
its Electronic Data Gathering, Analysis and Retrieval system or its Interactive Data
Electronic Applications system (collectively, “EDGAR”), it is not required to furnish such
reports or statements to the Agent.

     (xx) To take such steps as shall be necessary to ensure that neither the Company nor
any of its subsidiaries becomes an “investment company” or a company

 

23

“controlled by an investment company” within the meaning of such term under the
Investment Company Act and the rules and regulations of the Commission thereunder.

     (xxi) Not to take, not to permit its subsidiaries to take, and to use reasonable
efforts to cause its affiliates not to take, directly or indirectly, any action designed to
or that has constituted or that reasonably would be expected to cause or result in the
stabilization or manipulation of the price of any security of the Company in connection with
the offering of the Stock; and, without limitation to the foregoing, neither the Company nor
any of its subsidiaries will purchase any Class A Common Stock or any other capital stock of
the Company pursuant to the Company’s previously announced share repurchase program or any
similar program.

     (xxii) To do and perform all things required or necessary to be done and performed
under this Agreement by it prior to each Delivery Date, and to satisfy all conditions
precedent to the Agent’s obligations hereunder.

     (b) The Agent agrees that it shall not include any “issuer information” (as defined in Rule
433 under the Securities Act) in any “free writing prospectus” (as defined in Rule 405 under the
Securities Act) used or referred to by the Agent in connection with the offering or sale of Stock
without the prior written consent of the Company (any such issuer information with respect to whose
use the Company has given its written consent, “Permitted Issuer Information"); provided that (i)
no such consent shall be required with respect to any such issuer information contained in any
document filed by the Company with the Commission prior to the use of such free writing prospectus
and (ii) “issuer information,” as used in this Section 3(b), shall not be deemed to include
information prepared by or on behalf of the Agent on the basis of or derived from issuer
information.

     (c) At each Applicable Time, each Delivery Date, each Registration Statement Amendment Date,
each Company Periodic Report Date and each Request Date, the Company shall be deemed to have
affirmed each representation, warranty, covenant and other agreement contained in this Agreement.
As used in this Agreement, the term “Company Periodic Report Date” means each date on which the
Company shall file (A) an Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Earnings 8-K
or (B) an amendment to any such document.

     (d) The Company consents to the Agent trading in the Company’s Class A Common Stock for the
Agent’s own account and for the account of its clients at the same time as sales of Stock occur
pursuant to this Agreement.

     4. Expenses. (a) The Company agrees, whether or not the transactions contemplated by this
Agreement are consummated or this Agreement is terminated, to pay all costs, expenses, fees and
taxes incurred by the Company and, to the extent expressly provided in this Section 4 and Section
6, incurred by the Agent incident to and in connection with (i) the authorization, issuance, sale
and delivery of the Stock (including any stamp duties and any transfer or similar taxes or charges
payable in that connection, and the preparation and printing of certificates for the Stock); (ii)
the preparation, printing and filing under the Securities Act of the Registration Statement
(including any exhibits thereto), the Prospectus, any Issuer Free

 

24

Writing Prospectus and any amendment or supplement thereto; (iii) the distribution of the
Registration Statement (including any exhibits thereto), the Prospectus, any Issuer Free Writing
Prospectus and any amendment or supplement thereto, or any document incorporated by reference
therein, all as provided in this Agreement; (iv) the production and distribution of this Agreement,
and any other related documents in connection with the offering, purchase, sale and delivery of the
Stock; (v) any required review by FINRA of the terms of sale of the Stock (including related
reasonable and reasonably documented fees and expenses of counsel to the Agent); (vi) the listing
of the Stock on the Exchange and/or any other exchange; (vii) the qualification of the Stock under
the securities laws of the several jurisdictions as provided in Section 3(a)(x) and the
preparation, printing and distribution of a Blue Sky Memorandum (including related reasonable and
reasonably documented fees and expenses of counsel (including any Canadian counsel) to the Agent
not to exceed $5,000); (viii) the preparation, printing and distribution of one or more versions of
the Prospectus for distribution in Canada, often in the form of a Canadian “wrapper”; and (ix) all
other costs and expenses incident to the performance of the obligations of the Company under this
Agreement; provided that, except as expressly provided in this Section 4 and Section 6, the Agent
shall pay its own costs and expenses, including the fees and expense of its counsel.

     (b) If this Agreement is terminated by the Company prior to September 30, 2009 in accordance
with the provisions of Section 7 hereof and shares of Stock with an aggregate gross sales price of
$15,000,000 have not been offered and sold under this Agreement, the Company shall, in addition to
reimbursing the Agent for reasonable and reasonably documented fees and expenses of counsel to the
Agent to the extent required by clauses (v) and (vii) of Section 4(a) above, reimburse the Agent
for 50% of all other reasonable and reasonably documented fees and expenses of one counsel to the
Agent (not to exceed $100,000) incurred in connection with this Agreement and the transactions
contemplated hereby.

     5. Conditions of Agent’s Obligations. The obligations of the Agent hereunder are subject to
the accuracy, when made and on the date of this Agreement, each Registration Statement Amendment
Date, each Company Periodic Report Date, each Request Date, each Applicable Time and each Delivery
Date, of the representations and warranties of the Company contained herein, to the performance by
the Company of its obligations hereunder, and to each of the following additional terms and
conditions:

     (a) The Prospectus shall have been filed with the Commission pursuant to Rule 424(b)
under the Securities Act on or prior to the date hereof and the Company shall have complied
with all other requirements applicable to the Prospectus or any supplement thereto under
Rule 424(b) (without giving effect to Rule 424(b)(8)). The Company shall have complied with
all filing requirements applicable to any Issuer Free Writing Prospectus used or referred to
after the date hereof. No stop order suspending the effectiveness of the Registration
Statement or preventing or suspending the use of the Prospectus or any Issuer Free Writing
Prospectus shall have been issued and no proceeding or examination for such purpose shall
have been initiated or threatened by the Commission; and any request of the Commission for
inclusion of additional information in the Registration Statement or the Prospectus
(including, without limitation, in any document incorporated by reference therein) or
otherwise shall have been complied with;

 

25

and the Commission shall not have notified the Company of any objection to the use of
the form of the Registration Statement or any post-effective amendment thereto.

     (b) The Agent shall not have discovered and disclosed to the Company that the
Registration Statement, the Prospectus or the Pricing Disclosure Package, or any amendment
or supplement thereto, contains an untrue statement of a fact which, in the opinion of
Sidley Austin LLP, counsel for the Agent, is material or omits to state a fact which, in the
opinion of such counsel, is material or is required to be stated therein or is necessary to
make the statements therein not misleading.

     (c) All corporate proceedings and other legal matters incident to the authorization,
form and validity of this Agreement, the Stock, the Registration Statement, the Prospectus
and any Issuer Free Writing Prospectus and all other legal matters relating to this
Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all
material respects to counsel for the Agent, and the Company shall have furnished to such
counsel all documents and information that they may reasonably request to enable them to
pass upon such matters.

     (d) Cahill Gordon & Reindel LLP shall have furnished to the Agent its written opinion
and letter, as counsel to the Company, addressed to the Agent and delivered and dated on
each date specified in Section 3(a)(xiii) hereof, in form and substance reasonably
satisfactory to the Agent, substantially in the forms attached hereto as Exhibit A-1 and
Exhibit A-2.

     (e) Chad W. Coulter, Esq., General Counsel of the Company and Jeffrey Otto, Esq.,
General Counsel of Safety National Casualty Corporation, as applicable, shall have furnished
their written opinions addressed to the Agent and delivered and dated on each date specified
in Section 3(a)(xiii) hereof, in form and substance reasonably satisfactory to the Agent,
substantially in the form attached hereto as Exhibit A-3.

     (f) At the dates specified in Section 3(a)(xiv) hereof, the Agent shall have received
from Ernst & Young LLP a letter, in form and substance reasonably satisfactory to the Agent,
addressed to the Agent and dated the date of delivery thereof (i) confirming that they are
independent public accountants within the meaning of the Securities Act and are in
compliance with the applicable requirements relating to the qualification of accountants
under Rule 2-01 of Regulation S-X of the Commission, and (ii) stating, as of the date of the
date of delivery thereof (or, with respect to matters involving changes or developments
since the respective dates as of which specified financial information is given in the
Prospectus or the Pricing Disclosure Package, as of a date not more than three days prior to
the date of delivery thereof), the conclusions and findings of such firm with respect to the
financial information and other matters ordinarily covered by accountants’ “comfort letters”
in connection with registered public offerings.

     (g) (i) Upon commencement of the offering of Stock under this Agreement, the Company
shall have furnished to the Agent a certificate of an officer in a form reasonably
satisfactory to the Agent stating the minimum gross sales price per share for the sale of
such Stock pursuant to this Agreement and the maximum aggregate number of

 

26

shares of Stock that may be issued and sold pursuant to this Agreement or,
alternatively, maximum aggregate gross sales price from such sales, as authorized from time
to time by the Company’s board of directors or a duly authorized committee thereof or, in
connection with any amendment, revision or modification of such minimum price or maximum
share number or amount, a new certificate with respect thereto and (ii) on each date
specified in Section 3(a)(xii), the Company shall have furnished to the Agent a certificate,
dated such date, of any two of its Chief Executive Officer, President, Executive Vice
President, Vice President-Finance, General Counsel or Treasurer to the effect that:

     (A) The representations and warranties of the Company in Section 1 are true and
correct on and as of the applicable date specified in Section 3(a)(xii), and the
Company has complied in all material respects with all its agreements contained
herein and satisfied all the conditions on its part to be performed or satisfied
hereunder at or prior to such applicable date;

     (B) No stop order suspending the effectiveness of the Registration Statement
has been issued; no proceedings or examination for that purpose have been instituted
or, to the knowledge of such officers, threatened; and the Commission has not
notified the Company of any objection to the use of the form of the Registration
Statement or any post-effective amendment thereto; and

     (C) They have examined the Registration Statement, the Prospectus and the
Pricing Disclosure Package, and, in their opinion, (A) (1) the Registration
Statement, as of each Effective Date, (2) the Prospectus, as of the date of the
Prospectus Supplement, as of each Delivery Date and as of the applicable date
specified in Section 3(a)(xii), and (3) the Pricing Disclosure Package, as of each
Applicable Time and as of the applicable date specified in Section 3(a)(xii), did
not and do not contain any untrue statement of a material fact and did not and do
not omit to state a material fact required to be stated therein or necessary to make
the statements therein (except in the case of the Registration Statement, in the
light of the circumstances under which they were made) not misleading, and (B) no
event has occurred that should have been set forth in a supplement or amendment to
the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus
that has not been so set forth.

     (h) (i) Neither the Company nor any of its subsidiaries shall have sustained, since
the date of the latest audited financial statements included or incorporated by reference in
the Prospectus and the Pricing Disclosure Package, any loss or interference with its
business from fire, explosion, flood or other calamity, whether or not covered by insurance,
or from any labor dispute or court or governmental action, order or decree or (ii) since
such date there shall not have been any change in the capital stock or long-term debt of the
Company or any of its subsidiaries or any change, or any development involving a prospective
change, in or affecting the condition (financial or otherwise), results of operations,
stockholders’ equity, business or prospects of the Company and its subsidiaries taken as a
whole, the effect of which, in any such case described in clause (i) or (ii), is,
individually or in the aggregate, in the judgment of the Agent, so material and

 

27

adverse as to make it impracticable or inadvisable to proceed with the offering or sale
of the Stock on the terms and in the manner contemplated in the Prospectus.

     (i) Subsequent to the execution and delivery of this Agreement there shall not have
occurred any of the following: (i) trading in securities generally on the New York Stock
Exchange or the NASDAQ National Market, or trading in any securities of the Company on any
exchange or in the over-the-counter market, shall have been suspended or materially limited
or the settlement of such trading generally shall have been materially disrupted or minimum
prices shall have been established on any such exchange or such market by the Commission, by
such exchange or by any other regulatory body or governmental authority having jurisdiction,
(ii) a general moratorium on commercial banking activities shall have been declared by
federal or New York state authorities, (iii) the United States shall have become engaged in
hostilities, there shall have been an escalation in hostilities involving the United States
or there shall have been a declaration of a national emergency or war by the United States
or (iv) there shall have occurred such a material adverse change in general economic,
political or financial conditions, including, without limitation, as a result of terrorist
activities after the date hereof (or the effect of international conditions on the financial
markets in the United States shall be such), as to make it, in the judgment of the Agent,
impracticable or inadvisable to proceed with the offering or sale of the Stock on the terms
and in the manner contemplated in the Prospectus.

     (j) The Exchange shall have approved the Stock for listing, subject only to official
notice of issuance.

     (k) On or prior to each Delivery Date, the Company shall have furnished to the Agent
such further certificates and documents as the Agent may reasonably request.

     (l) Sidley Austin LLP, counsel to the Agent, shall have furnished their letter
addressed to the Agent and delivered and dated on each date specified in Section 3(a)(xiii)
hereof, with respect to the authorization of the Stock, the Registration Statement, the
Prospectus and, if applicable, the Pricing Disclosure Package and other related matters as
the Agent may reasonably require, and the Company shall have furnished to such counsel such
documents as they reasonably request for the purposes of enabling them to pass upon such
matters.

     All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Agent. The Company and the Agent hereby
agree that the date of commencement of sales under this Agreement shall be the date the Company and
the Agent mutually agree (which may be later than the date of this Agreement).

     6. Indemnification and Contribution. (a) The Company hereby agrees to indemnify and hold
harmless the Agent, its affiliates, directors, officers and employees and each person, if any, who
controls the Agent within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any loss, claim, damage or liability, joint or

 

28

several, or any action in respect thereof (including, but not limited to, any loss, claim,
damage, liability or action relating to purchases and sales of Stock), to which the Agent or that
affiliate, director, officer, employee or controlling person may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact
contained in (A) the Registration Statement, the Prospectus or in any amendment or supplement
thereto, (B) any Issuer Free Writing Prospectus or in any amendment or supplement thereto or (C)
any Permitted Issuer Information used or referred to in any “free writing prospectus” (as defined
in Rule 405 under the Securities Act) used or referred to by the Agent, or (ii) the omission or
alleged omission to state in the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or in any amendment or supplement thereto or in any Permitted Issuer Information, any
material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading, and shall reimburse the
Agent and each such affiliate, director, officer, employee or controlling person promptly upon
demand for any legal or other expenses reasonably incurred by the Agent or that affiliate,
director, officer, employee or controlling person in connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or action as such expenses are
incurred; provided, however, that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement or omission or alleged omission made in the Registration
Statement, the Prospectus, any Issuer Free Writing Prospectus or in any such amendment or
supplement thereto or in any Permitted Issuer Information, in reliance upon and in conformity with
written information concerning the Agent furnished to the Company by the Agent specifically for
inclusion therein, which information consists solely of the information specified in Section 6(e).
The foregoing indemnity agreement is in addition to any liability which the Company may otherwise
have to the Agent or to any affiliate, director, officer, employee or controlling person of the
Agent.

     (b) The Agent shall indemnify and hold harmless the Company, its directors, officers and
employees, and each person, if any, who controls the Company within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof, to which the Company or any such
director, officer, employee or controlling person may become subject, under the Securities Act or
otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based
upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or
supplement thereto, or (ii) the omission or alleged omission to state in the Registration
Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement
thereto, any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, but in each
case only to the extent that the untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written information concerning
the Agent furnished to the Company by the Agent specifically for inclusion therein, which
information consists solely of the information specified in Section 6(e). The foregoing indemnity
agreement is in addition to any liability that the Agent may otherwise have to the Company or any
such director, officer, employee or controlling person of the Company.

 

29

     (c) Promptly after receipt by an indemnified party under this Section 6 of notice of any claim
or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to
be made against the indemnifying party under this Section 6, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that the failure to
notify the indemnifying party shall not relieve it from any liability which it may have under this
Section 6 except to the extent it has been materially prejudiced (through the forfeiture of
substantive rights and defenses or otherwise) by such failure and, provided, further, that the
failure to notify the indemnifying party shall not relieve it from any liability which it may have
to an indemnified party otherwise than under this Section 6. If any such claim or action shall be
brought against an indemnified party, and it shall notify the indemnifying party thereof, the
indemnifying party shall be entitled to participate therein and, to the extent that it wishes,
jointly with any other similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party
to the indemnified party of its election to assume the defense of such claim or action, the
indemnifying party shall not be liable to the indemnified party under this Section 6 for any legal
or other expenses subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that the indemnified party
shall have the right to employ counsel to represent jointly the indemnified party and those other
indemnified parties and their respective directors, officers, employees and controlling persons who
may be subject to liability arising out of any claim in respect of which indemnity may be sought
under this Section 6 if (i) the indemnified party and the indemnifying party shall have so mutually
agreed; (ii) the indemnifying party has failed within a reasonable time to retain counsel
reasonably satisfactory to the indemnified party; (iii) the indemnified party and its directors,
officers, employees and controlling persons shall have reasonably concluded that there may be legal
defenses available to them that are different from or in addition to those available to the
indemnifying party; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the indemnified parties or their respective directors, officers, employees or
controlling persons, on the one hand, and the indemnifying party, on the other hand, and
representation of both sets of parties by the same counsel would be inappropriate due to actual or
potential differing interests between them, and in any such event the reasonably incurred fees and
expenses of such separate counsel shall be paid by the indemnifying party as incurred. No
indemnifying party shall (i) without the prior written consent of the indemnified parties (which
consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all liability arising
out of such claim, action, suit or proceeding and does not include a statement as to, or an
admission of fault, culpability or a failure to act by or on behalf of any indemnified party, or
(ii) be liable for any settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of the indemnifying
party or if there be a final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any loss or liability
by reason of such settlement or judgment.

 

30

     (d) If the indemnification provided for in this Section 6 shall for any reason be unavailable
to or insufficient to hold harmless an indemnified party under Section 6(a) or 6(b) in respect of
any loss, claim, damage or liability, or any action in respect thereof, referred to therein, then
each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss, claim, damage or
liability, or action in respect thereof, (i) in such proportion as shall be appropriate to reflect
the relative benefits received by the Company, on the one hand, and the Agent on the other, from
the offering of the Stock or (ii) if the allocation provided by clause (i) above is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company, on the one hand, and
the Agent, on the other, with respect to the statements or omissions that resulted in such loss,
claim, damage or liability, or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company, on the one hand, and the Agent, on
the other, with respect to such offering shall be deemed to be in the same proportion as the total
gross sales price (after deducting commissions paid to the Agent under this Agreement) from the
offering of the Stock sold under this Agreement received by the Company, on the one hand, and the
total commissions received by the Agent under this Agreement, on the other hand. The relative
fault of the Company, on the one hand, and the Agent, on the other, shall be determined by
reference to whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company or the
Agent, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and the Agent agree that
it would not be just and equitable if contribution pursuant to this Section 6(d) were to be
determined by pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section 6(d) shall be deemed to include, for purposes of this
Section 6(d), any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 6(d), the Agent shall not be required to contribute any amount in excess
of commissions received by it under this Agreement. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation.

     (e) The Agent confirms and the Company acknowledges and agrees that (i) the statements set
forth in the first sentence of the eighth paragraph (concerning electronic distribution) under the
caption “Plan of Distribution” in the Prospectus and (ii) such other statements as the Agent may,
by notice given to the Company in writing after the date of this Agreement, state have been
furnished to the Company by the Agent specifically for inclusion in the Registration Statement, the
Prospectus, the Pricing Disclosure Package, any Issuer Free Writing Prospectus or any amendment or
supplement thereto, are correct and constitute the only information furnished in writing to the
Company by or on behalf of the Agent specifically for inclusion in the Registration Statement, the
Prospectus, the Pricing Disclosure Package, any Issuer Free Writing Prospectus or in any amendment
or supplement thereto.

 

31

     7. Termination. (a) The Company shall have the right, by giving written notice as
hereinafter specified, to terminate this Agreement in its sole discretion at any time. Any such
termination shall be without liability of any party to any other party except that (i) with respect
to any pending sale through the Agent for the Company, the obligations of the Company, including in
respect of compensation of the Agent, shall remain in full force and effect notwithstanding such
termination and (ii) the representations and warranties in Section 1 and the provisions of Sections
4, 6, 7, 8, 9, 10, 11, 12, 14 and 15 of this Agreement shall remain in full force and effect
notwithstanding such termination.

     (b) The Agent shall have the right, by giving written notice as hereinafter specified, to
terminate this Agreement in its sole discretion at any time. Any such termination shall be without
liability of any party to any other party except that the representations and warranties in Section
1 and the provisions of Sections 4, 6, 7, 8, 9, 10, 11, 12, 14 and 15 of this Agreement shall
remain in full force and effect notwithstanding such termination.

     (c) This Agreement shall remain in full force and effect unless terminated pursuant to Section
7(a) or (b) above or otherwise by mutual agreement of the parties; provided that any such
termination by mutual agreement or pursuant to this clause (c) shall in all cases be deemed to
provide that the representations and warranties in Section 1 and the provisions of Sections 4, 6,
7, 8, 9, 10, 11, 12, 14 and 15 of this Agreement shall remain in full force and effect
notwithstanding such termination.

     (d) Any termination of this Agreement shall be effective on the date specified in such notice
of termination or the date mutually agreed by the parties, as the case may be; provided that such
termination shall not be effective until the close of business on the date of receipt of such
notice by the Agent or the Company, or the date mutually agreed by the parties, as the case may be.
If such termination shall occur prior to the Delivery Date for any sale of Stock, such sale shall
settle in accordance with the provisions of Section 2(h) hereof.

     8. Research Analyst Independence. The Company acknowledges that the Agent’s research analysts
and research departments are required to be independent from its investment banking divisions and
are subject to certain regulations and internal policies, and that the Agent’s research analysts
may hold views and make statements or investment recommendations and/or publish research reports
with respect to the Company and/or the offering that differ from the views of the Agent’s
investment banking divisions. The Company hereby waives and releases, to the fullest extent
permitted by law, any claims that the Company may have against the Agent with respect to any
conflict of interest that may arise from the fact that the views expressed by its research analysts
and research departments may be different from or inconsistent with the views or advice
communicated to the Company by the Agent’s investment banking divisions. The Company acknowledges
that the Agent is a full service securities firm and as such from time to time, subject to
applicable securities laws, may effect transactions for its own account or the account of its
customers and hold long or short positions in debt or equity securities of the Company.

     9. No Fiduciary Duty. The Company acknowledges and agrees that in connection with the
offering or sale of the Stock or any other services the Agent may be deemed to be providing
hereunder, notwithstanding any preexisting relationship, advisory or otherwise,

 

32

between the parties or any oral representations or assurances previously or subsequently made
by the Agent: (i) no fiduciary or agency relationship between the Company and any other person, on
the one hand, and the Agent, on the other, exists; (ii) the Agent is not acting as advisor, expert
or otherwise, to the Company, including, without limitation, with respect to the determination of
the terms of the offering of the Stock, and such relationship between the Company, on the one hand,
and the Agent, on the other, is entirely and solely commercial, based on arms-length negotiations;
(iii) any duties and obligations that the Agent may have to the Company shall be limited to those
duties and obligations specifically stated herein; and (iv) the Agent and its affiliates may have
interests that differ from those of the Company. The Company hereby waives any claims that the
Company may have against the Agent with respect to any breach of fiduciary duty in connection with
this offering.

     10. Notices, etc. Unless otherwise expressly provided herein, all statements, requests,
notices and agreements hereunder shall be in writing, and:

     (a) if to the Agent, shall be delivered or sent by mail or facsimile transmission to Barclays
Capital Inc., 745 Seventh Avenue, New York, New York 10019, Attention: Syndicate Registration,
with a copy, in the case of any notice pursuant to Section 6(c), to the Director of Litigation,
Office of the General Counsel, Barclays Capital Inc., 745 Seventh Avenue, New York, New York 10019;
and

     (b) if to the Company, shall be delivered or sent by mail or facsimile transmission to the
address of the Company c/o Reliance Standard Life Insurance Company, 2001 Market Street, Suite
1500, Philadelphia, Pennsylvania 19103-7303, Attention: Chad W. Coulter (Fax: (267) 256-0650).

Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof. The Company shall be entitled to act and rely upon any request, consent, notice or
agreement given or made by Barclays Capital Inc.

     11. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Agent, the Company, and their respective successors. This Agreement and
the terms and provisions hereof are for the sole benefit of only those persons, except that (A) the
representations, warranties, indemnities and agreements of the Company contained in this Agreement
shall also be deemed to be for the benefit of the affiliates, directors, officers and employees of
the Agent and each person, if any, who control the Agent within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act and (B) the indemnity agreement of the Agent
contained in Section 6(b) of this Agreement shall be deemed to be for the benefit of the directors
of the Company, the officers of the Company who have signed the Registration Statement and any
person controlling the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act. Nothing in this Agreement is intended or shall be construed to give any
person, other than the persons referred to in this Section 11, any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision contained herein.

     12. Press Releases and Disclosure. The Company may issue a press release in compliance with
Rule 134 under the Securities Act describing the material terms of the

 

33

transactions contemplated hereby as soon as practicable following the date hereof, and may
file with the Commission a Current Report on Form 8-K describing the material terms of the
transaction contemplated hereby, and the Company shall consult with the Agent prior to making such
disclosures, and the parties shall use all reasonable efforts, acting in good faith, to agree upon
a text for such disclosures that is reasonably satisfactory to all parties. No party hereto shall
issue thereafter any press release or like public statement (excluding any disclosure required in
reports filed with the Commission pursuant to the Exchange Act) related to this Agreement or any of
the transactions contemplated hereby without the prior written approval of the other party hereto,
except as may be necessary or appropriate in the reasonable opinion of the party seeking to make
disclosure to comply with the requirements of applicable law, regulation or stock exchange rules.
If any such press release or like public statement is so required, the party making such disclosure
shall consult with the other party prior to making such disclosure, and the parties shall use all
reasonable efforts, acting in good faith, to agree upon a text for such disclosure that is
reasonably satisfactory to all parties.

     13. Adjustments for Stock Splits. The parties acknowledge and agree that all share related
numbers, if any, contained in this Agreement shall be adjusted to take into account any stock split
effected with respect to the Class A Common Stock.

     14. Survival. The respective indemnities, representations, warranties and agreements of the
Company and the Agent contained in this Agreement or made by or on behalf of them, respectively,
pursuant to this Agreement, shall survive the delivery of and payment for the Stock and shall
remain in full force and effect, regardless of any investigation made by or on behalf of any of
them or any person controlling any of them.

     15. Definition of the Terms “Business Day,” “Affiliate” and “Subsidiary". For purposes of
this Agreement, (a) “business day” means each Monday, Tuesday, Wednesday, Thursday or Friday that
is not a day on which banking institutions in New York are generally authorized or obligated by law
or executive order to close and (b) “affiliate” and “subsidiary” have the meanings set forth in
Rule 405 under the Securities Act.

     16. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     17. Waiver of Jury Trial. The Company and the Agent hereby irrevocably waive, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

     18. Counterparts. This Agreement may be executed in one or more counterparts and, if executed
in more than one counterpart, the executed counterparts shall each be deemed to be an original but
all such counterparts shall together constitute one and the same instrument.

     19. Headings. The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.

[Signature Page Follows]

 

34

If the foregoing correctly sets forth the agreement between the Company and the Agent, please
indicate your acceptance in the space provided for that purpose below.

	 	 	 	 	 
	 	Very truly yours,

Delphi Financial Group, Inc.

 	 
	 	By:  	
/s/ Chad W. Coulter	 
	 	 	Name:  	Chad W. Coulter	 
	 	 	Title:  	Senior Vice President	 
	 

	 	 	 	 	 
	Accepted:	 	 
	 
	 	 	 	 
	Barclays Capital Inc. 	 	 
	 
	 	 	 	 
	By:
	 	/s/ Joseph P. Coleman	 	 
	 

	 	 

Authorized Representativeexv4w1

Exhibit 4.1

EXECUTION COPY

TOLL BROTHERS FINANCE CORP., as Issuer

TOLL BROTHERS, INC., as a Guarantor, and

THE OTHER GUARANTORS PARTY HERETO

Senior Debt Securities

 

Indenture

Dated as of April 20, 2009

 

THE BANK OF NEW YORK MELLON, as Trustee

 

 

CROSS-REFERENCE TABLE

This Cross-Reference Table is not a part of the Indenture

 

	 	 	 	 	 	 	 
	TIA	 	 	Indenture	 
	Section	 	 	Section	 
	 	 	 
	 	 	 	 
	 	310	(a)(1) 
	 	 	7.08, 7.09; 7.10	 
	 	 	(a)(2) 
	 	 	7.10	 
	 	 	(a)(3) 
	 	 	N.A.	 
	 	 	(a)(4) 
	 	 	N.A.	 
	 	 	(a)(5) 
	 	 	N.A.	 
	 	 	(b)
	 	 	7.08; 7.10; 12.02; 12.14	 
	 	 	(c)
	 	 	N.A.	 
	 	311	(a)
	 	 	7.11	 
	 	 	(b)
	 	 	7.11	 
	 	 	(b)(1) 
	 	 	7.10	 
	 	 	(c)
	 	 	N.A.	 
	 	312	(a)
	 	 	2.05	 
	 	 	(b)
	 	 	2.05; 12.03	 
	 	 	(c)
	 	 	12.03	 
	 	313	(a)
	 	 	7.06	 
	 	 	(b)(1) 
	 	 	N.A.	 
	 	 	(b)(2) 
	 	 	7.06	 
	 	 	(c)
	 	 	7.06	 
	 	 	(d)
	 	 	7.06	 
	 	314	(a)
	 	 	4.03; 7.06; 12.02	 
	 	 	(b)
	 	 	N.A.	 
	 	 	(c)(1) 
	 	 	12.04	 
	 	 	(c)(2) 
	 	 	12.04	 
	 	 	(c)(3) 
	 	 	N.A.	 
	 	 	(d)
	 	 	N.A.	 
	 	 	(e)
	 	 	12.05	 
	 	 	(f)
	 	 	N.A.	 
	 	315	(a)
	 	 	7.01(b)	
	 	 	(b)
	 	 	7.05; 12.02	 
	 	 	(c)
	 	 	7.01(a)	
	 	 	(d)
	 	 	7.01(c)	
	 	 	(e)
	 	 	6.11	 
	 	316	(a)(last sentence) 
	 	 	12.06	 
	 	 	(a)(1)(A)
	 	 	6.05	 
	 	 	(a)(1)(B)
	 	 	6.04	 
	 	 	(a)(2) 
	 	 	N.A.	 
	 	 	(b)
	 	 	6.07	 
	 	 	(c)
	 	 	10.4	 
	 	317	(a)(1) 
	 	 	6.08	 
	 	 	(a)(2) 
	 	 	6.09	 
	 	 	(b)
	 	 	2.04	 
	 	318	(a)
	 	 	12.01	 

 

			
	N.A. means Not Applicable.

 

 

TABLE OF CONTENTS

This Table of Contents is not a part of the Indenture

 

ARTICLE ONE

Definitions and Incorporation By Reference

	 	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	Section 1.02

	 	Other Definitions
	 	 	6	 
	Section 1.03

	 	Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	Section 1.04

	 	Rules of Construction	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE TWO

	 
	 	 	 	 	 	 
	THE SECURITIES

	 
	 	 	 	 	 	 
	Section 2.01

	 	Form and Dating
	 	 	7	 
	Section 2.02

	 	Execution and Authentication
	 	 	9	 
	Section 2.03

	 	Registrar and Paying Agent
	 	 	10	 
	Section 2.04

	 	Paying Agent to Hold Money in Trust
	 	 	11	 
	Section 2.05

	 	Holder Lists
	 	 	11	 
	Section 2.06

	 	Transfer and Exchange
	 	 	11	 
	Section 2.07

	 	Replacement Securities
	 	 	11	 
	Section 2.08

	 	Outstanding Securities
	 	 	12	 
	Section 2.09

	 	Temporary Securities
	 	 	12	 
	Section 2.10

	 	Cancellation
	 	 	13	 
	Section 2.11

	 	Defaulted Interest
	 	 	13	 
	Section 2.12

	 	Treasury Securities
	 	 	13	 
	Section 2.13

	 	CUSIP Numbers
	 	 	13	 
	Section 2.14

	 	Deposit of Moneys
	 	 	13	 
	Section 2.15

	 	Book-Entry Provisions for Global Security
	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE THREE

	 
	 	 	 	 	 	 
	Redemption

	 
	 	 	 	 	 	 
	Section 3.01

	 	Notices to Trustee
	 	 	15	 
	Section 3.02

	 	Selection of Securities to be Redeemed
	 	 	15	 
	Section 3.03

	 	Notice of Redemption
	 	 	16	 
	Section 3.04

	 	Effect of Notice of Redemption
	 	 	16	 
	Section 3.05

	 	Deposit of Redemption Price
	 	 	17	 
	Section 3.06

	 	Securities Redeemed in Part
	 	 	17	 

i

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE FOUR

	 
	 	 	 	 	 	 
	Covenants

	 
	 	 	 	 	 	 
	Section 4.01

	 	Payment of Securities
	 	 	17	 
	Section 4.02

	 	Maintenance of Office or Agency
	 	 	17	 
	Section 4.03

	 	Compliance Certificate
	 	 	17	 
	Section 4.04

	 	Additional Guarantors
	 	 	17	 
	Section 4.05

	 	Reports
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE FIVE

	 
	 	 	 	 	 	 
	Successor Corporation

	 
	 	 	 	 	 	 
	Section 5.01

	 	When the Issuer or the Guarantors
May Merge, etc.
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE SIX

	 
	 	 	 	 	 	 
	Defaults and Remedies

	 
	 	 	 	 	 	 
	Section 6.01

	 	Events of Default
	 	 	20	 
	Section 6.02

	 	Acceleration
	 	 	21	 
	Section 6.03

	 	Other Remedies
	 	 	22	 
	Section 6.04

	 	Waiver of Past Defaults
	 	 	22	 
	Section 6.05

	 	Control by Majority
	 	 	22	 
	Section 6.06

	 	Limitation on Suits
	 	 	23	 
	Section 6.07

	 	Rights of Holders to Receive Payment
	 	 	23	 
	Section 6.08

	 	Collection Suit by Trustee
	 	 	23	 
	Section 6.09

	 	Trustee May File Proofs of Claim
	 	 	23	 
	Section 6.10

	 	Priorities
	 	 	24	 
	Section 6.11

	 	Undertaking for Costs
	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE SEVEN

	 
	 	 	 	 	 	 
	Trustee

	 
	 	 	 	 	 	 
	Section 7.01

	 	Duties of Trustee
	 	 	24	 
	Section 7.02

	 	Rights of Trustee
	 	 	25	 
	Section 7.03

	 	Individual Rights of Trustee
	 	 	27	 
	Section 7.04

	 	Trustee’s Disclaimer
	 	 	27	 
	Section 7.05

	 	Notice of Defaults
	 	 	27	 
	Section 7.06

	 	Reports by Trustee to Holders
	 	 	27	 
	Section 7.07

	 	May Hold Securities
	 	 	28	 
	Section 7.08

	 	Money Held in Trust
	 	 	28	 
	Section 7.09

	 	Compensation and Indemnity
	 	 	28	 
	Section 7.10

	 	Replacement of Trustee
	 	 	28	 
	Section 7.11

	 	Successor Trustee by Merger, etc.
	 	 	29	 

-ii-

 

	 	 	 	 	 	 	 
	Section 7.12

	 	Eligibility; Disqualification
	 	 	29	 
	Section 7.13

	 	Preferential Collection of Claims Against the Issuer
	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE EIGHT

	 
	 	 	 	 	 	 
	DISCHARGE OF INDENTURE

	 
	 	 	 	 	 	 
	Section 8.01

	 	Defeasance upon Deposit of Moneys
or U.S. Government Obligations
	 	 	30	 
	Section 8.02

	 	Survival of the Issuer’s Obligations
	 	 	32	 
	Section 8.03

	 	Application of Trust Money
	 	 	33	 
	Section 8.04

	 	Repayment to the Issuer
	 	 	33	 
	Section 8.05

	 	Reinstatement
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE NINE Guarantees

	 
	 	 	 	 	 	 
	Section 9.01

	 	Unconditional Guarantees
	 	 	33	 
	Section 9.02

	 	Severability
	 	 	34	 
	Section 9.03

	 	Release of a Guarantor
	 	 	34	 
	Section 9.04

	 	Limitation of a Guarantor’s Liability
	 	 	35	 
	Section 9.05

	 	Contribution
	 	 	35	 
	Section 9.06

	 	Waiver of Subrogation
	 	 	36	 
	Section 9.07

	 	Execution of Guarantee
	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE TEN

	 
	 	 	 	 	 	 
	Amendments, Supplements and Waivers

	 
	 	 	 	 	 	 
	Section 10.01

	 	Without Consent of Holders
	 	 	37	 
	Section 10.02

	 	With Consent of Holders
	 	 	38	 
	Section 10.03

	 	Compliance with Trust Indenture Act
	 	 	39	 
	Section 10.04

	 	Revocation and Effect of Consents
	 	 	39	 
	Section 10.05

	 	Notation on or Exchange of Securities
	 	 	40	 
	Section 10.06

	 	Trustee to Sign Amendments, etc.
	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE ELEVEN

	 
	 	 	 	 	 	 
	Conversion of Securities

	 
	 	 	 	 	 	 
	Section 11.01

	 	Applicability of Article
	 	 	40	 
	Section 11.02

	 	Conversion Privilege
	 	 	40	 
	Section 11.03

	 	Manner of Exercise of Conversion Privilege
	 	 	41	 
	Section 11.04

	 	Payment in Lieu of Fractional Shares
	 	 	42	 
	Section 11.05

	 	Adjustment of Conversion Price
	 	 	42	 
	Section 11.06

	 	Notice of Certain Corporate Action
	 	 	44	 
	Section 11.07

	 	Company to Provide Stock
	 	 	45	 
	Section 11.08

	 	Taxes on Conversions
	 	 	45	 
	Section 11.09

	 	Covenant as to Stock
	 	 	46	 
	Section 11.10

	 	Consolidation or Merger
	 	 	46	 
	Section 11.11

	 	Disclaimer of Responsibility for Certain Matters
	 	 	47	 

-iii-

 

	 	 	 	 	 	 	 
	ARTICLE TWELVE

	 
	 	 	 	 	 	 
	Miscellaneous

	 
	 	 	 	 	 	 
	Section 12.01

	 	Trust Indenture Act Controls
	 	 	47	 
	Section 12.02

	 	Notices
	 	 	47	 
	Section 12.03

	 	Communications by Holders with Other Holders
	 	 	48	 
	Section 12.04

	 	Certificate and Opinion as to Conditions Precedent
	 	 	48	 
	Section 12.05

	 	Statements Required in Certificate or Opinion
	 	 	49	 
	Section 12.06

	 	Rules by Trustee and Agents
	 	 	49	 
	Section 12.07

	 	Legal Holidays
	 	 	49	 
	Section 12.08

	 	Governing Law
	 	 	49	 
	Section 12.09

	 	No Adverse Interpretation of Other Agreements
	 	 	49	 
	Section 12.10

	 	No Recourse Against Others
	 	 	49	 
	Section 12.11

	 	Successors and Assigns
	 	 	50	 
	Section 12.12

	 	Duplicate Originals
	 	 	50	 
	Section 12.13

	 	Severability
	 	 	50	 
	Section 12.14

	 	Counterparts
	 	 	50	 
	Section 12.15

	 	Force Majeure
	 	 	50	 
	 
	Signatures

	 	 	 	 	S-1	 

Exhibit A — Form of Security

-iv-

 

     INDENTURE dated as of April 20, 2009, by and among TOLL BROTHERS FINANCE CORP., a Delaware
corporation (the “Issuer”), TOLL BROTHERS, INC., a Delaware corporation (the “Company”) and the
other Guarantors (as defined in Section 1.01) and THE BANK OF NEW YORK MELLON, a New York banking
corporation (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 the Issuer’s debt securities issued under this Indenture:

ARTICLE ONE

Definitions and Incorporation By Reference

     Section 1.01 Definitions.

     “Affiliate” means, when used with reference to a specified person, any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Person
specified.

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

     “Authorizing Resolution” means a resolution adopted by the Board of Directors, or by an
Officer or committee of Officers pursuant to Board of Directors delegation, authorizing a Series of
Securities.

     “Bank Credit Facilities” means the unsecured revolving credit facility and the term loan under
the Amended and Restated Credit Agreement by and among First Huntingdon Finance Corp., the Company
and the lenders party thereto, dated March 17, 2006, as amended, and any related documents
(including, without limitation, any guarantees or security documents), as such agreements (and such
related documents) may be amended, restated, supplemented, renewed, replaced by the existing
lenders or by successors or otherwise modified from time to time, including any agreement(s)
extending the maturity of or refinancing or refunding all or any portion of the indebtedness or
increasing the amount to be borrowed under such agreement(s) or any successor agreement(s), whether
or not by or among the same parties.

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

     “Board of Directors” means any Person’s Board of Directors or any authorized committee
thereof.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of or in such Person’s capital stock or
other equity interests, and options, rights or warrants to purchase such capital stock or other
equity interests, whether now outstanding or issued after the applicable Issue Date, including,
without limitation, all Redeemable Capital Stock and Preferred Stock.

 

 

     “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.

     “Common Stock” means the Common Stock ($.01 par value) of the Company as the same exists at
the date of this Indenture as originally executed or as such stock may be constituted from time to
time.

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

     “Consolidated Net Worth” of any Person means the consolidated stockholders’ equity of such
Person determined in accordance with accounting principles generally accepted in the United States.

     “Conversion Price” means the initial conversion price of Securities of a Series specified in
the Authorizing Resolutions establishing the terms of such Series of Security, as adjusted in
accordance with the provisions of Article Eleven.

     “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the dated hereof is located at 101
Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust Administration,
or such other address as the Trustee may designate from time to time by notice to the Holders and
the Issuer, or the principal corporate trust office of any successor Trustee (or such other address
as such successor Trustee may designate from time to time by notice to the Holders and the Issuer).

     “Current Market Price” means, for any relevant date, (a) except for purposes of Section 11.04,
the average of the last reported sale prices of the Common Stock for the 30 consecutive Business
Days commencing 45 Business Days before the day in question and (b) for purposes of Section 11.04
only, the last reported sale price of the Common Stock, in either such case as reported on the
composite tape, or similar reporting system, for issues listed on the New York Stock Exchange (or
if the Common Stock is not then listed on that exchange, for issues listed on such other national
securities exchange upon which the Common Stock is listed as may be designated by the Board of
Directors for the purposes hereof) or, if there is no such reported sale on the day or days in
question, on the basis of the average of the closing bid and asked quotations as so reported, or,
if the Common Stock is not listed on any national securities exchange, on the basis of the average
of the high bid and low asked quotations on the day or days in question in the over-the-counter
market as reported by the National Association of Securities Dealers’ Automated Quotations System,
or if not so quoted, as reported by National Quotation Bureau, Incorporated, or any similar
organization, or if not so reported as determined in good faith by the Board of Directors.

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

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

-2-

 

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

     “Guarantee” means the guarantee of Securities of any applicable Series by each Guarantor under
this Indenture.

     “Guarantors” means, (i) initially on the execution of this Indenture, each of the entities
listed on Schedule A, attached hereto, and (ii) each of the Company’s Subsidiaries which becomes a
guarantor of Securities pursuant to the provisions of this Indenture, in each case subject to
Section 9.03(a).

     “Holder” means the Person in whose name a Security is registered on the Registrar’s books.

     “Indebtedness” means (1) any liability of any Person (A) for borrowed money, (B) 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), (C) for the
payment of money relating to a Capitalized Lease Obligation or (D) for all Redeemable Capital Stock
valued at the greater of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends; (2) any liability of others described in the preceding clause (1) that such
Person has guaranteed or that is otherwise its legal liability; (3) all Indebtedness referred to in
(but not excluded from) clauses (1) and (2) above of other Persons of 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 (4)
any amendment, supplement, modification, deferral, renewal, extension or refunding of any liability
of the types referred to in clauses (1), (2) and (3) above.

     “Indenture” means this Indenture as amended or supplemented from time to time, including
pursuant to any Authorizing Resolution or supplemental indenture pertaining to any Series.

     “interest” means, with respect to any Series of Securities, any interest on such series of
Securities.

     “Interest Payment Date” when used with respect to any installment of interest payable on the
Securities, has the meaning provided in Section 1 of the Securities.

     “Issue Date” means, with respect to any Series of Securities, the date on which the Securities
of such Series are originally issued under this Indenture.

     “Lien” means, with respect to any Property, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such Property. For purposes of this definition,

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a Person shall be deemed to own, subject to a Lien, any Property which it has acquired or
holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such Property.

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

     “Officer” means the Chairman of the Board, the President, any Vice President, the Chief
Accounting Officer, the Controller, the Treasurer, or the Secretary of the Issuer or any Guarantor,
as applicable.

     “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and an
Assistant Treasurer or an Assistant Secretary of the Issuer or the Company, as applicable.

     “Opinion of Counsel” means a written opinion, reasonably acceptable to the Trustee, from legal
counsel. The counsel may be an employee of or counsel to the Issuer, the Company, a Guarantor or
Subsidiary, as applicable.

     “Original Issue Discount Security” means any Security which provides that an amount less than
its principal amount is due and payable upon acceleration after an Event of Default.

     “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.

     “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.

     “principal” of a debt security means the principal of the security plus, when appropriate, the
premium, if any, on the security.

     “Property” of any Person means all types of real, personal, tangible, intangible or mixed
property owned by such Person, whether or not included in the most recent consolidated balance
sheet of such Person and its Subsidiaries under GAAP.

     “Record Date” for the interest payable on any Interest Payment Date on the Securities has the
meaning provided in Section 2 of the Securities.

     “Redeemable Capital Stock” means any Capital Stock of the Issuer, the Company of any
Subsidiary of the Company that, either by its terms, by the terms of any security into which it is
convertible or exchangeable or otherwise, (1) 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 any series of
Securities or (2) is redeemable at the option of the holder thereof at any time prior to such final
stated maturity or (3) is convertible into or exchangeable for debt securities at any time prior to
such final stated maturity.

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     “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the Persons who at the
time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

     “Restricted Subsidiary” means any Guarantor other than the Company.

     “SEC” means the Securities and Exchange Commission or any successor agency performing the
duties now assigned to it under the TIA.

     “Securities” means any Securities issued under this Indenture.

     “Series” means a series of Securities established under this Indenture.

     “Significant Subsidiary” means any Subsidiary (i) whose revenues exceed 10% of the Company’s
total revenues, in each case for the most recent fiscal year, or (ii) whose net worth exceeds 10%
of the Company’s total stockholders’ equity, in each case as of the end of the most recent fiscal
year.

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

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

     “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.

     “United States” means the United States of America.

     “U.S. government obligations” means securities which are (i) direct obligations of the United
States for the payment of which its full faith and credit is pledged or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of the United States
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which, in either case are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian
with respect to any such U.S. government obligations or a specific payment of interest on or
principal of any such U.S. government obligation held by such custodian for the account of the
holder of a depositary receipt; provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depositary receipt
from any amount received by the custodian in respect of the U.S. government obligation or the
specific payment of interest on or principal of the U.S. government obligation evidenced by such
depositary receipt.

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     “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).

     Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined	 
	Term	 	in Section	 
	“Adjusted Net Assets”
	 	 	2.15	 
	“Agent Members”
	 	 	9.05	 
	“Business Day”
	 	 	12.07	 
	“Covenant Defeasance”
	 	 	8.01	(c)
	“Custodian”
	 	 	6.01	 
	“Depository”
	 	 	2.15	 
	“DTC”
	 	 	2.14	(f)
	“Event of Default”
	 	 	6.01	 
	“Funding Guarantor”
	 	 	9.05	 
	“Global Securities”
	 	 	2.01	(c)
	“Legal Defeasance”
	 	 	8.01	(b)
	“Legal Holiday”
	 	 	12.07	 
	“Notice of Default”
	 	 	6.01	 
	“Outstanding Series”
	 	 	6.01	 
	“Paying Agent”
	 	 	2.03	 
	“Physical Securities”
	 	 	2.01	(c)
	“Registrar”
	 	 	2.03	 
	“Required Filing Date”
	 	 	4.05	 

     Section 1.03 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

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

     “obligor” on the indenture securities means the Issuer, the Guarantors or any other obligor on
the Securities of a Series or any Guarantees thereof.

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

     Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in accordance
with GAAP;

     (3) “or” is not exclusive;

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

     (5) provisions apply to successive events and transactions.

ARTICLE TWO

THE SECURITIES

     Section 2.01 Form and Dating.

     (a) The aggregate principal amount of Securities that may be issued under this Indenture is
unlimited. The Securities may be issued from time to time in one or more Series. Each Series
shall be created by an Authorizing Resolution or a supplemental indenture that establishes the
terms of the Series, which may include the following:

          (1) the title of the Series;

          (2) the aggregate principal amount (or any limit on the aggregate principal amount) of the
Series and, if any Securities of a Series are to be issued at a discount from their face amount,
the method of computing the accretion of such discount;

          (3) the interest rate or method of calculation of the interest rate;

          (4) the date from which interest will accrue;

          (5) the Record Dates for interest payable on Securities of the Series;

          (6) the dates when, places where and manner in which principal and interest are payable;

          (7) the Registrar and Paying Agent;

          (8) the terms of any mandatory (including any sinking fund requirements) or optional
redemption by the Company;

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          (9) (the terms of any redemption at the option of Holders;

          (10) the denominations in which Securities are issuable;

          (11) whether Securities will be issued in registered or bearer form and the terms of any such
forms of Securities;

          (12) whether any Securities will be represented by a Global Security and the terms of any such
Global Security;

          (13) the currency or currencies (including any composite currency) in which principal or
interest or both may be paid;

          (14) if payments of principal or interest may be made in a currency other than that in which
Securities are denominated, the manner for determining such payments;

          (15) provisions for electronic issuance of Securities or issuance of Securities in
uncertificated form;

          (16) any Events of Default, covenants and/or defined terms in addition to or in lieu of those
set forth in this Indenture;

          (17) whether and upon what terms Securities may be defeased if different from the provisions
set forth in this Indenture;

          (18) the form of the Securities, which, unless the Authorizing Resolution or supplemental
indenture otherwise provides, shall be in the form of Exhibit A;

          (19) any terms that may be required by or advisable under applicable law;

          (20) the percentage of the principal amount of the Securities which is payable if the maturity
of the Securities is accelerated in the case of Securities issued at a discount from their face
amount;

          (21) whether any Securities will not have Guarantees;

          (22) whether the Securities of such Series will be convertible into Common Stock of the
Company and the terms thereof (including without limitation the conversion price, the conversion
period and any other provision in addition to or in lieu of those set forth in this Indenture);

          (23) whether the Securities of such Series and/or the Guarantees of such Series will be
secured and, if applicable any provisions for securing all or a portion of any indebtedness
evidenced by the Securities of such Series and/or the Guarantees of such Series; and

          (24) any other terms in addition to or different from those contained in this Indenture.

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     All Securities of one Series need not be issued at the same time and, unless otherwise
provided, a Series may be reopened for issuances of additional Securities of such Series pursuant
to an Authorizing Resolution, an Officers’ Certificate of the Issuer or in any indenture
supplemental hereto.

     The creation and issuance of a Series and the authentication and delivery thereof are not
subject to any conditions precedent except as provided in this Indenture or the TIA.

     (b) The Securities and the Trustee’s certificate of authentication relating thereto shall be
substantially in the form of Exhibit A hereto. The Securities may have notations, legends or
endorsements required by law, stock exchange rules, agreements to which the Company is subject, if
any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to
the Company). Each Security shall be dated the date of its authentication. If required, the
Securities may bear the appropriate legend regarding any original issue discount for federal income
tax purposes. Each Security shall have an executed Guarantee from each of the Guarantors.

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

     (c) Global Securities. The Securities offered and sold pursuant to this Indenture shall be
issued initially in the form of one or more permanent Global Securities (“Global Securities”) in
definitive, fully registered form without interest coupons, in substantially the form of Exhibit A,
which shall be deposited on behalf of the purchasers of the Securities represented thereby with the
Trustee, at the Trustee’s office in New York City, as custodian for the Depository, and registered
in the name of the Depository or a nominee of the Depository, duly executed by the Company (and
having an executed Guarantee in the manner set forth in Section 9.07) and authenticated by the
Trustee as hereinafter provided and shall bear the legend set forth in Section 2.15. The aggregate
principal amount of the Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depository or its nominee in the limited
circumstances hereinafter provided.

     Securities issued in exchange for interests in Global Securities pursuant to Section 2.15 may
be issued in the form of permanent certificated Securities in registered form in substantially the
form set forth in Exhibit A (the “Physical Securities”).

     Section 2.02 Execution and Authentication.

     Two Officers shall sign the Securities for the Issuer by manual or facsimile signature. The
Issuer’s seal shall be reproduced on the Securities. Each of the Guarantors shall execute the
Guarantee in the manner set forth in Section 9.07.

     If an Officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall nevertheless be valid.

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     A Security shall not be valid until the Trustee manually signs the certificate of
authentication on the Security. The signature shall be conclusive evidence that the Security has
been authenticated under this Indenture.

     The Trustee shall authenticate Securities for original issue upon a written order of the
Issuer signed by two Officers or by an Officer and an Assistant Treasurer of the Issuer. Each
Security shall be dated the date of its authentication. In authenticating Securities, and
accepting the additional responsibilities under this Indenture in relation to such Securities, the
Trustee shall be given, and (subject to the TIA) shall be fully protected in relying upon,

     (a) a copy of the Authorizing Resolution in or pursuant to which the terms and form of the
Securities were established, certified by the Secretary or an Assistant Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and effect as of the date
of such certificate, and if the terms and form of such Securities are established by an Officers’
Certificate pursuant to general authorization of the Board of Directors, such Officers’
Certificate;

     (b) an executed supplemental indenture, if any;

     (c) an Officers’ Certificate delivered in accordance with Section 12.04; and

     (d) an Opinion of Counsel stating that all conditions precedent to the authentication and
delivery of the Securities have been complied with and that the Securities have been duly executed
and, when the Securities have been duly authenticated and delivered by the Trustee, will be duly
issued and delivered and will constitute valid and legally binding obligations of the Company,
enforceable in accordance with their terms, subject to any applicable bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and subject to
the effect of general principles of equity, including, without limitation, concepts of materiality,
reasonableness, good faith and fair dealing (regardless of whether enforcement is considered in a
proceeding in equity or at law).

     Section 2.03 Registrar and Paying Agent.

     The Issuer shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange or, if applicable, for conversion (“Registrar”), and an
office or agency where Securities may be presented for payment (“Paying Agent”) and an office or
agency where notices and demands to or upon the Issuer in respect of the Securities and this
Indenture may be served. Such office may be the same office as the Issuer’s office referred to in
Section 12.02. The Registrar shall keep a register of the Securities and of their transfer and
exchange. The Issuer may have one or more co-Registrars and one or more additional paying agents.
The term “Paying Agent” includes any additional paying agent.

     The Issuer shall enter into an appropriate agency agreement with any Agent not a party to this
Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Issuer shall promptly notify the Trustee in writing of the name and address of any such
Agent and the Trustee shall have the right to inspect the Securities register at all reasonable
times to obtain copies thereof, and the Trustee shall have the right to rely upon such register as
to

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the names and addresses of the Holders and the principal amounts and certificate numbers
thereof. If the Issuer fails to maintain a Registrar or Paying Agent or fails to give the
foregoing notice, the Trustee shall act as such.

     The Issuer initially appoints the Trustee as Registrar and Paying Agent.

     Section 2.04 Paying Agent to Hold Money in Trust.

     Each Paying Agent shall hold in trust for the benefit of Holders and the Trustee all money
held by the Paying Agent for the payment of principal of or interest on the Securities, and shall
notify the Trustee of any Default by the Issuer in making any such payment. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate the money and hold it as a separate trust fund.
The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee.
Upon doing so the Paying Agent shall have no further liability for the money.

     Section 2.05 Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders. If the Trustee is not the Registrar,
the Issuer shall furnish to the Trustee on or before each interest payment date and at such other
times as the Trustee may request in writing a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of Holders.

     Section 2.06 Transfer and Exchange.

     Where a Security is presented to the Registrar or a co-Registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if the requirements of Section
8-401(1) of the New York Uniform Commercial Code are met. Where Securities are presented to the
Registrar or a co-Registrar with a request to exchange them for an equal principal amount of
Securities of other denominations, the Registrar shall make the exchange as requested if the same
requirements are met. To permit transfers and exchanges, the Trustee shall authenticate Securities
at the Registrar’s request. The Registrar need not transfer or exchange any Security selected for
redemption, except the unredeemed part thereof if the Security is redeemed in part, or transfer or
exchange any Securities for a period of 15 days before a selection of Securities to be redeemed.
Any transfer or exchange shall be without charge, except that the Issuer may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in connection with
any such transfer or exchange and any other expenses in connection therewith) except in the case of
exchanges pursuant to Sections 2.09, 3.06, or 10.05 not involving any transfer.

     Section 2.07 Replacement Securities.

     If the Holder of a Security claims that the Security has been lost, destroyed, mutilated or
wrongfully taken, the Issuer shall issue and, upon written request of any Officer of the Issuer,
the Trustee shall authenticate a replacement Security, provided that in the case of a lost,
destroyed or wrongfully taken Security, that the requirements of Section 8-405 of the New York
Uniform Commercial Code are met. If any such lost, destroyed, mutilated or wrongfully taken
Security shall have matured or shall be about to mature, the Issuer may, instead of issuing a
substitute

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Security therefor, pay such Security without requiring (except in the case of a mutilated
Security) the surrender thereof. An indemnity bond must be sufficient in the judgment of the
Issuer and the Trustee to protect the Issuer, the Trustee or any Agent from any loss which any of
them may suffer if a Security is replaced, including the acquisition of such Security by a
protected purchaser. The Issuer may charge for its expenses in replacing a Security. Every
replacement Security is an additional obligation of the Issuer and the Guarantors

     Section 2.08 Outstanding Securities.

     Securities outstanding at any time are all Securities authenticated by the Trustee except for
those presented to it by the Issuer or its designee for cancellation and those described in this
Section as not outstanding. A Security does not cease to be outstanding because the Issuer, the
Guarantors or one of their Affiliates holds the Security.

     If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a protected
purchaser.

     If the Paying Agent holds on a redemption date or maturity date money sufficient to pay
Securities payable on that date, then on and after that date such Securities cease to be
outstanding and interest on them ceases to accrue.

     If a Security is called for redemption or if it matures in less than six months and if the
Issuer has satisfied its obligation to pay the Security, or if a Security has been converted in
accordance with the provisions of Article Eleven, the Issuer and the Trustee need not treat the
Security as outstanding in determining whether Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent.

     For each series of Original Issue Discount Securities, the principal amount of such Securities
that shall be deemed to be outstanding and used to determine whether the necessary Holders have
given any request, demand, authorization, direction, notice, consent or waiver shall be the
principal amount of such Securities that could be declared to be due and payable upon acceleration
upon an Event of Default as of the date of such determination. When requested by the Trustee, the
Issuer will advise the Trustee of such amount, showing its computations in reasonable detail.

     Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

     Section 2.09 Temporary Securities.

     Until definitive Securities are ready for delivery, the Issuer may prepare and execute, the
Guarantors shall endorse the Guarantee thereon, and the Trustee shall authenticate temporary
Securities. Temporary Securities shall be substantially in the form of definitive Securities but
may have variations that the Issuer considers appropriate for temporary Securities. Without
unreasonable delay, the Issuer shall prepare and, upon surrender for cancellation of the

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temporary Security, the Issuer and the Guarantors shall execute and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities authenticated and delivered hereunder.

     Section 2.10 Cancellation.

     The Issuer at any time may deliver Securities to the Trustee for cancellation. The Registrar
and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange, conversion, redemption or payment. The Trustee and no one else shall cancel
all Securities surrendered for registration or transfer, exchange, redemption, paying or
cancellation. Unless the Authorizing Resolution so provides, the Issuer may not issue new
Securities to replace Securities that it has previously paid or delivered to the Trustee for
cancellation.

     Section 2.11 Defaulted Interest.

     If the Issuer defaults in a payment of interest on the Securities, it shall pay the defaulted
interest plus any interest payable on the defaulted interest (to the extent lawful), if an Event of
Default has occurred and is continuing, to the Persons who are Holders on a subsequent special
Record Date. The Issuer shall fix such special Record Date and a payment date. At least 15 days
before such special Record Date, the Issuer shall mail to each Holder a notice that states the
Record Date, the payment date and the amount of defaulted interest to be paid.

     Section 2.12 Treasury Securities.

     In determining whether the Holders of the required principal amount of Securities of a Series
have concurred in any direction, waiver, consent or notice, Securities owned by the Issuer, the
Guarantors or any of their respective Affiliates shall be considered as though they are not
outstanding, except that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Securities which the Trustee actually knows
are so owned shall be so considered.

     Section 2.13 CUSIP Numbers.

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

     Section 2.14 Deposit of Moneys.

     Prior to 11:00 a.m. New York City time on each interest payment date and maturity date with
respect to each Series of Securities, the Issuer shall have deposited with the Paying Agent in
immediately available funds money sufficient to make cash payments due on such interest

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payment date or maturity date, as applicable, in a timely manner which permits the Paying
Agent to remit payment to the Holders on such interest payment date or maturity date, as
applicable.

     Section 2.15 Book-Entry Provisions for Global Security.

     (a) Any Global Security of a Series initially shall (i) be registered in the name of the
depository who shall be identified in the Authorizing Resolution or supplemental indenture relating
to such Securities (the “Depository”) or the nominee of such Depository, (ii) be delivered to the
Trustee as custodian for such Depository and (iii) bear any required legends.

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

     (b) Transfers of any Global Security shall be limited to transfers in whole, but not in part,
to the Depository, its successors or their respective nominees. Interests of beneficial owners in
the Global Security may be transferred or exchanged for definitive Securities in accordance with
the rules and procedures of the Depository. In addition, definitive Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests in a Global
Security if (i) the Depository notifies the Issuer that it is unwilling or unable to continue as
Depository for the Global Security or, if at any time, the Depository ceases to be a clearing
agency registered under the Exchange Act, and a successor depository is not appointed by the Issuer
within 90 days of such notice or (ii) an Event of Default has occurred and is continuing or an
event which, with the giving of notice or lapse of time, or both would constitute an Event of
Default with respect to the Securities and the Registrar has received a request from the Depository
to issue definitive Securities.

     (c) In connection with any transfer or exchange of a portion of the beneficial interest in any
Global Security to beneficial owners pursuant to paragraph (b), the Registrar shall (if one or more
definitive Securities are to be issued) reflect on its books and records the date and a decrease in
the principal amount of the Global Security in an amount equal to the principal amount of the
beneficial interest in the Global Security to be transferred, and the Issuer and the Guarantors
shall execute, and the Trustee shall authenticate and deliver, one or more definitive Securities of
like tenor and amount.

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

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

     (f) Each Global Security shall also bear the following legend on the face thereof:

     Unless and until it is exchanged in whole or in part for securities in definitive form,
this security may not be transferred except as a whole by the depository to a nominee of the
depository, or by any such nominee of the depository, or by the depository or nominee of
such successor depository or any such nominee to a successor depository or a nominee of such
successor depository. Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation (“DTC”), to an issuer or its agent
for registration of transfer, exchange or payment, and any certificate issued is registered
in the name of Cede & Co. or such other name as is requested by an authorized
representative of DTC (and any payment hereon 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.

     Transfers of this global security shall be limited to transfers in whole, but not in
part, to nominees of Cede & Co. or to a successor thereof or such successor’s nominee.

ARTICLE THREE

Redemption

     Section 3.01 Notices to Trustee.

     Securities of a Series that are redeemable prior to maturity shall be redeemable in accordance
with their terms and, unless the Authorizing Resolution or supplemental indenture provides
otherwise, in accordance with this Article.

     If the Issuer wants to redeem Securities pursuant to Paragraph 5 of the Securities, it shall
notify the Trustee in writing of the Redemption Date and the principal amount of Securities to be
redeemed. Any such notice may be canceled at any time prior to notice of such redemption being
mailed to Holders. Any such canceled notice shall be void and of no effect. If the Issuer wants
to credit any Securities previously redeemed, retired or acquired against any redemption pursuant
to Paragraph 6 of the Securities, it shall notify the Trustee of the amount of the credit and it
shall deliver any Securities not previously delivered to the Trustee for cancellation with such
notice.

     The Issuer shall give each notice provided for in this Section at least 10 days before the
notice of any such redemption is to be mailed to Holders (unless a shorter notice shall be
satisfactory to the Trustee).

     Section 3.02 Selection of Securities to be Redeemed.

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     If less than all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities to be redeemed, if the Securities of such Series are listed on a national securities
exchange, in accordance with the rules of such exchange, or if the Securities of such Series are
not so listed, on either a pro rata basis or by lot or by such method as the Trustee shall deem
fair and appropriate. The Trustee shall make the selection from Securities outstanding and not
previously called for redemption. Securities in denominations of $2,000 may only be redeemed in
whole. The Trustee may select for redemption portions (equal to $2,000 or any integral multiple of
$1,000 thereof) of the principal of Securities that have denominations larger than $2,000.
Provisions of this Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

     Section 3.03 Notice of Redemption.

     At least 30 days but not more than 60 days before a redemption date, the Issuer shall mail a
notice of redemption by first-class mail, postage prepaid, to each Holder of Securities to be
redeemed. The notice shall identify the Securities to be redeemed and shall state:

          (1) the redemption date;

          (2) the redemption price;

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

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

          (5) that interest on Securities called for redemption ceases to accrue on and after the
redemption date;

          (6) that the Securities are being redeemed pursuant to the mandatory redemption or the
optional redemption provisions, as applicable;

          (7) in the event that any Security is to be redeemed in part only, the portion of the
principal amount thereof to be redeemed and that on and after the redemption date, upon surrender
of such Security, a new Security or Securities in principal amount equal to the unredeemed portion
thereof will be issued; and

          (8) if applicable, the current Conversion Price and the date on which the right to convert the
Securities into Common Stock will expire.

     At the Issuer’s request and after provision of the above information to the Trustee at least
two days before the date of the giving of the notice or such shorter time as shall be acceptable to
the Trustee, the Trustee shall give the notice of redemption in the Issuer’s name and at its
expense.

     Section 3.04 Effect of Notice of Redemption.

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     Once notice of redemption is mailed, Securities called for redemption become due and payable
on the redemption date and at the redemption price as set forth in the notice of redemption. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption price, plus accrued
interest to the redemption date.

     Section 3.05 Deposit of Redemption Price.

     On or before the redemption date, the Issuer or its designee shall deposit with the Paying
Agent immediately available funds sufficient to pay the redemption price of and accrued interest on
all Securities to be redeemed on that date.

     Section 3.06 Securities Redeemed in Part.

     Upon surrender of a Security that is redeemed in part, the Issuer and the Guarantors shall
execute and the Trustee shall authenticate for each Holder a new Security equal in principal amount
to the unredeemed portion of the Security surrendered.

ARTICLE FOUR

Covenants

     Section 4.01 Payment of Securities.

     The Issuer shall pay the principal of and interest on Securities of a Series on the dates and
in the manner provided in the Securities of the Series. An installment of principal or interest
shall be considered paid on the date it is due if the Trustee or Paying Agent holds on that date
money designated for and sufficient to pay the installment.

     The Issuer shall pay interest on overdue principal at the rate borne by the Series; it shall
pay interest on overdue installments of interest at the same rate to the extent lawful.

     Section 4.02 Maintenance of Office or Agency.

     The Issuer shall maintain the office or agency required under Section 2.03. The Issuer shall
give prior written notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Issuer shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the Trustee.

     Section 4.03 Compliance Certificate.

     The Issuer and the Company each shall deliver to the Trustee within 120 days after the end of
their respective fiscal years an Officers’ Certificate satisfying the requirements of TIA
§3.14(a)(4) and stating whether or not the signers know of any Default by the Issuer or the Company
in performing any of its obligations under this Indenture. If they do know of such a Default, the
certificate shall describe the Default.

     Section 4.04 Additional Guarantors.

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     If in accordance with the provisions of the Bank Credit Facilities the Company adds or causes
to be added, any Subsidiary that was not a Guarantor at the time of execution of this Indenture as
a guarantor under the Bank Credit Facilities, such Subsidiary shall contemporaneously become a
Guarantor under this Indenture by (i) executing and delivering to the Trustee a supplemental
indenture or an Authorizing Resolution in form reasonably satisfactory to the Trustee pursuant to
which such Subsidiary shall unconditionally guarantee all of the Issuer’s obligations under the
Securities of any Series that has the benefit of Guarantees of other Subsidiaries of the Company
and this Indenture (as it relates to all such Series) on the terms set forth in this Indenture and
(ii) delivering to the Trustee an Opinion of Counsel that such supplemental indenture or
Authorizing Resolution has been duly authorized, executed and delivered by such Subsidiary and
constitutes a legal, valid, binding and enforceable obligation of such Subsidiary. Thereafter,
such Subsidiary shall be a Guarantor for all purposes of this Indenture (as it relates to all such
Series).

     Section 4.05 Reports.

     (a) So long as the Securities are outstanding, whether or not the Company is then subject to
Section 13(a) or 15(d) of the Exchange Act, the Company shall electronically file with the SEC,
with a copy to the Trustee, the annual reports, quarterly reports and other periodic reports that
the Company would be required to file with the SEC pursuant to Section 13(a) or 15(d) if the
Company were so subject, and such documents shall be filed with the SEC on or prior to the
respective dates (the “Required Filing Dates”) by which the Company would be required so to file
such documents if the Company were so subject, unless, in any case, if such filings are not then
permitted by the SEC.

     (b) If such filings with the SEC are not then permitted by the SEC, or such filings are not
generally available on the Internet free of charge, the Company shall, within 15 days of each
Required Filing Date, transmit by mail to Holders of the Securities, as their names and addresses
appear in the Register, without cost to such Holders, and file with the Trustee copies of the
annual reports, quarterly reports and other periodic reports that the Company would be required to
file with the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act if the Company were
subject to such Section 13(a) or 15(d), and promptly upon written request, supply copies of such
documents to any prospective holder or beneficial owner at Company’s cost. Delivery of such
reports, information and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with
any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officers’ Certificates).

ARTICLE FIVE

Successor Corporation

     Section 5.01 When the Issuer or the Guarantors May Merge, etc.

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     Neither the Issuer nor any Guarantor will consolidate with or merge with or into or sell,
assign, transfer or lease all or substantially all of its assets to another Person unless entitled
by law and unless:

          (1) the resulting, surviving, receiving, or leasing Person is, in the case of (i) the Issuer
or the Company, a corporation organized and existing under the laws of the United States of America
or any state thereof or (ii) any Guarantor (other than the Company), a corporation or other legal
entity organized and existing under the laws of the United States of America or any state thereof;

          (2) such Person assumes by a supplemental indenture in a form reasonably satisfactory to the
Trustee, all the obligations of the Issuer or such Guarantor, as applicable, under the Securities
or the Guarantee, as applicable, and the Indenture; and

          (3) immediately after giving effect to, and as a result of such consolidation, merger, sale,
assignment, transfer or lease, no Default or Event of Default shall have occurred and be
continuing; provided that this clause (3) will not restrict or be applicable to such consolidation,
merger, sale, assignment, transfer or lease of a Guarantor with or into the Issuer, the Company or
a Subsidiary that is, or concurrently with the completion of such consolidation, merger, sale,
assignment, transfer or lease becomes, a Guarantor.

     Upon any such consolidation, merger, sale, assignment or transfer (including any
consolidation, merger, sale, assignment, transfer described in the proviso at the end of the
immediately preceding sentence) the successor corporation or legal entity, as the case may be, will
be substituted for the Issuer or such Guarantor, as applicable, under the Indenture. The successor
Person may, as applicable, then exercise every power and right of the Issuer or such Guarantor, as
applicable, under the Indenture, and the Issuer or such Guarantor, as applicable, will be released
from all of its respective liabilities and obligations in respect of the Securities or the
Guarantee, as applicable, and the Indenture. If the Issuer or any Guarantor leases all or
substantially all of its assets, the lessee Person will be the successor to the Issuer or such
Guarantor, as applicable, and may exercise every power and right of the Issuer or such Guarantor,
as applicable, under the Indenture, but the Issuer or such Guarantor, as applicable, will not be
released from its respective obligations to pay the principal and interest, if any, on the
Securities.

     The Issuer and the Company shall each deliver to the Trustee prior to the consummation of the
proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel
stating that the proposed transaction and such supplemental indenture comply with this Indenture.

     To the extent that an Authorizing Resolution or a supplemental indenture pertaining to any
Series provides for different provisions relating to the subject matter of this Article Five, the
provisions in such Authorizing Resolution or supplemental indenture shall govern for purposes of
such Series.

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ARTICLE SIX

Defaults and Remedies

     Section 6.01 Events of Default.

     An “Event of Default” on a Series occurs if, voluntarily or involuntarily, whether by
operation of law or otherwise, any of the following occurs:

          (1) the failure by the Issuer or a Guarantor to pay interest on any Security of such Series
when the same becomes due and payable and the continuance of any such failure for a period of 30
days;

          (2) the failure by the Issuer or a Guarantor to pay the principal of any Security of such
Series when the same becomes due and payable at maturity, upon acceleration or otherwise;

          (3) the failure by the Issuer, the Company or any Guarantor which is a Significant Subsidiary
to comply with any of its agreements or covenants in, or provisions of, the Securities of such
Series, the Guarantees (as they relate thereto) or this Indenture (as they relate thereto), other
than a failure specifically dealt with elsewhere within this Indenture, and such failure continues
for the period and after the notice specified below;

          (4) any default under an instrument evidencing or securing any of Issuer’s Indebtedness or the
Indebtedness of any Guarantor (other than Non-Recourse Indebtedness) aggregating $10,000,000 more
in aggregate principal amount, resulting in the acceleration of such Indebtedness, or due to the
failure to pay such Indebtedness at maturity, upon acceleration or otherwise;

          (5) the occurrence of an acceleration of, or a significant modification of the terms
(including without limitation the payment of more than an insignificant amount of fees to the
holders thereof) of any of Toll Corp.’s 8 1/4% Senior Subordinated Notes due 2011 or 8.25% Senior
Subordinated Notes due 2011 (each of these series of notes being referred to below as an
“Outstanding Series”), provided that on the date of such occurrence, the outstanding principal
amount of at least one Outstanding Series to which the occurrence relates exceeds $5,000,000;

          (6) any Guarantee in respect of the Securities of such Series by the Company or a Guarantor
that is a Significant Subsidiary shall for any reason cease to be, or be asserted in writing by the
Company, such Guarantor or the Issuer, as applicable, not to be, in full force and effect and
enforceable in accordance with its terms (other than by reason of the termination of the Indenture
or the release or discharge of any such Guarantee in accordance with the terms of the Indenture);
provided, however, that if the Company, such Guarantor or the Issuer, as applicable, asserts in
writing that such Guarantee is not in full force and effect and enforceable in accordance with its
terms, such assertion shall not constitute an Event of Default for purposes of this paragraph if
(i) such written assertion is accompanied by an Opinion of Counsel of each of the Issuer, the
Company and such Guarantor to the effect that, as a matter of law, the defect or defects rendering
such Guarantee unenforceable can be remedied within 10 days of the date of such assertion, (ii)
each of the Issuer and the Company delivers an Officers’ Certificate to the

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effect that the Company, such Guarantor or the Issuer, as applicable, represents that such
defect or defects shall be so remedied within such 10-day period, and (iii) such defect or defects
are in fact so remedied within such 10-day period;

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

          (A) commences a voluntary case,

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

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

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

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

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

          (B) appoints a Custodian of the Issuer, the Company or any Significant
Subsidiary or a Custodian for all or substantially all of the property of the
Issuer, the Company or any Significant Subsidiary, or

          (C) orders the liquidation of the Issuer, the Company or any Significant
Subsidiary,

     and the order or decree remains unstayed and in effect for 90 days.

     A Default as described in sub-clause (3) above will not be deemed an Event of Default until
the Trustee notifies the Issuer and the Company, or the Holders of at least 25 percent in aggregate
principal amount of the then outstanding Securities of the applicable Series notify the Issuer and
the Company and the Trustee, of the Default and the Issuer, the Company or any Guarantor which is a
Significant Subsidiary does not cure the Default within 60 days after receipt of the notice. The
notice must specify the Default, demand that it be remedied and state that the notice is a “Notice
of Default.” If such a Default is cured within such time period, it ceases.

     Any Event of Default that relates exclusively to a Guarantor other than the Company may be
cured to the extent such Guarantor is released from its Guarantee pursuant to Section 9.03.

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

     Section 6.02 Acceleration.

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     If an Event of Default (other than an Event of Default with respect to the Issuer, the Company
or any Significant Subsidiary resulting from sub-clauses (7) or (8) of Section 6.01), shall have
occurred and be continuing under this Indenture, the Trustee by notice to the Issuer and the
Company or the Holders of at least 25 percent in aggregate principal amount of the Securities of
the applicable Series then outstanding by notice to the Issuer, the Company and the Trustee, may
declare the principal amount of all Securities of such Series and interest, if any, accrued thereon
to be due and payable immediately. Upon such declaration of acceleration, the amounts due and
payable on the Securities of such Series and interest, if any, accrued thereon will be due and
payable immediately. If an Event of Default with respect to the Issuer, the Company or any
Significant Subsidiary specified in sub-clauses (7) or (8) of Section 6.01 occurs, all amounts due
and payable on the Securities of such Series will ipso facto become and be immediately due and
payable without any declaration, notice or other act on the part of the Trustee, the Issuer, the
Company or any Holder. Holders of a majority in principal amount of the then outstanding
Securities of such Series may rescind an acceleration with respect to such Series and its
consequence (except an acceleration due to nonpayment of principal or interest on the Securities of
such Series) if the rescission would not conflict with any judgment or decree and if all past
Events of Default have been cured or waived.

     No such rescission shall extend to or shall affect any subsequent Event of Default, or shall
impair any right or power consequent thereon.

     Section 6.03 Other Remedies.

     If an Event of Default on a Series occurs and is continuing, the Trustee may pursue any
available remedy by proceeding at law or in equity to collect the payment of principal of or
interest on the Series or to enforce the performance of any provision in the Securities or this
Indenture applicable to the Series.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative.

     Section 6.04 Waiver of Past Defaults.

     Subject to Section 10.02, the Holders of a majority in principal amount of the outstanding
Securities of a Series on behalf of all the Holders of the Series by notice to the Trustee may
waive a past Default on such Series and its consequences. When a Default is waived, it is cured
and stops continuing, and any Event of Default arising therefrom shall be deemed to have been
cured; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

     Section 6.05 Control by Majority.

     The Holders of a majority in principal amount of the outstanding Securities of a Series may
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee with respect to such Series.

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The Trustee, however, may refuse to follow any direction (i) that conflicts with law or this
Indenture, (ii) that, subject to Section 7.01, the Trustee determines is unduly prejudicial to the
rights of other Holders, or (iii) that would involve the Trustee in personal liability.

     Section 6.06 Limitation on Suits.

     A Holder of a Series may not pursue any remedy with respect to this Indenture or the Series
unless:

          (1) the Holder gives to the Trustee written notice of a continuing Event of Default on the
Series;

          (2) the Holders of at least 25% in aggregate principal amount of the outstanding Securities of
the Series make a written request to the Trustee to pursue the remedy;

          (3) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against
any loss, liability or expense;

          (4) the Trustee does not comply with the request within 60 days after receipt of such request
and the offer of indemnity; and

          (5) no written request inconsistent with such written request shall have been given to the
Trustee during such 60-day period by Holders of a majority of the aggregate principal amount of the
outstanding Securities of the Series.

     A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

     Section 6.07 Rights of Holders to Receive Payment.

     Notwithstanding any other provision of this Indenture to the contrary, the right of any Holder
to receive payment of principal of and interest on the Security, on or after the respective due
dates expressed in such Security, or to bring suit for the enforcement of any such payment on or
after such respective dates, is absolute and unconditional and shall not be impaired or affected
without the consent of such Holder.

     Section 6.08 Collection Suit by Trustee.

     If an Event of Default in payment of interest or principal specified in Section 6.01(1) or (2)
occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an
express trust against the Issuer, any Guarantor or any other obligor on the Securities for the
whole amount of principal and interest remaining unpaid

     Section 6.09 Trustee May File Proofs of Claim.

     The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements, and advances of the Trustee, its agents and

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counsel) and the Holders allowed in any judicial proceedings relative to the Issuer, the
Company (or any other obligor upon the Securities, including the other Guarantors) its creditors or
its property, and unless prohibited by applicable law or regulation, may vote on behalf of the
Holders in any election of a Custodian, and shall be entitled and empowered to collect and receive
any moneys or other property payable or deliverable on any such claims and to distribute the same
and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee. Nothing herein shall be deemed to authorize the Trustee to authorize or
consent to or vote for or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights of any Holder or to
authorize the Trustee to vote in respect of the claim of any Holder except as aforesaid for the
election of the Custodian.

     Section 6.10 Priorities.

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

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

     Second: to Holders of the Series for amounts due and unpaid on the Series for
principal and interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Series for principal and interest,
respectively; and

     Third: to the Issuer or the Guarantors as their interests may appear.

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

     Section 6.11 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having the due regard to the merits and
good faith of the claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than
10% in principal amount of the Series.

ARTICLE SEVEN

Trustee

     Section 7.01 Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall, subject to
Section 6.02, exercise its rights and powers and use the same degree of care and skill in their

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exercise as a prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

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

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

          (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this Indenture. The
Trustee, however, shall examine the certificates and opinions to determine whether or not they
conform to the requirements of this Indenture but need not confirm or investigate the accuracy of
mathematical calculations or other facts or matters stated therein.

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

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

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

          (3) The Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05 or any other
direction of the Holders permitted hereunder.

     (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
this Section.

     (e) The Trustee may refuse to perform any duty or exercise any right or power at the request
of the Holders unless it receives indemnity satisfactory to it against any loss, liability or
expense.

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

     (g) None of the provisions contained in this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur financial liability in the performance of any of its duties
or in the exercise of any of its rights or powers, if there shall be reasonable grounds for
believing that the repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.

     Section 7.02 Rights of Trustee.

     Subject to Section 7.01:

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     (a) The Trustee may conclusively rely and shall be protected in acting or refraining from
acting on any document, resolution, certificate, instrument, report, statement, opinion, notice,
consent, order, bond or direction believed by it to be genuine and to have been signed or presented
by the proper Person. The Trustee need not investigate any fact or matter stated in the document,
resolution, certificate, instrument, report, or direction.

     (b) Before the Trustee acts or refrains from acting, it may require from each of the Issuer
and the Company an Officers’ Certificate or an Opinion of Counsel or both, which shall conform to
Sections 12.04 and 12.05 hereof and containing such other statements as the Trustee reasonably
deems necessary to perform its duties hereunder. The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on such Officers’ Certificate, Opinion of Counsel
or any other direction of the Issuer permitted hereunder.

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

     (d) The Trustee shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture.

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

     (f) Unless otherwise specifically provided in the Indenture, any demand, request, direction or
notice from the Issuer shall be sufficient if signed by an Officer of the Issuer.

     (g) For all purposes under this Indenture, the Trustee shall not be deemed to have notice or
knowledge of any Event of Default (other than under Section 6.01(1) or 6.01(2)) unless a
Responsible Officer assigned to and working in the Trustee’s Corporate Trust Office has actual
knowledge thereof or unless written notice of any Event of Default is received by the Trustee at
its address specified in Section 12.02 hereof and such notice references the Securities and the
Guarantees generally, the Issuer, the Guarantors and this Indenture.

     (h) any request or direction of the Issuer mentioned herein shall be sufficiently evidenced by
an Issuer request or Issuer Order and any resolution of the Board of Directors may be sufficiently
evidenced by an Authorizing Resolution;

     (i) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Issuer,
personally or by agent or attorney at the sole cost of the Issuer and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;

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     (j) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit);

     (k) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder; and

     (l) the Trustee may request that the Issuer deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

     Section 7.03 Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Issuer or its Affiliates with the same rights it would
have if it were not Trustee. Any Agent may do the same with like rights. The Trustee, however,
must comply with Sections 7.10 and 7.11.

     Section 7.04 Trustee’s Disclaimer.

     The Trustee makes no representation as to the validity or adequacy of this Indenture, the
Securities or of any prospectus or offering memorandum used to sell the Securities; it shall not be
accountable for the Issuer’s use of the proceeds from the Securities; it shall not be accountable
for any money paid to the Issuer, or upon the Issuer’s direction, if made under and in accordance
with any provision of this Indenture; it shall not be responsible for the use or application of any
money received by any Paying Agent other than the Trustee; and it shall not be responsible for any
statement of the Issuer in this Indenture or in the Securities other than its certificate of
authentication.

     Section 7.05 Notice of Defaults.

     If a Default on a Series occurs and is continuing and if it is known to the Trustee, the
Trustee shall mail to each Holder of the Series notice of the Default (which shall specify any
uncured Default known to it) within 90 days after it occurs. Except in the case of a Default in
payment of principal of or interest on a Series, the Trustee may withhold the notice if and so long
as the executive or any trust committee of the Trustee and/or responsible officers of the Trustee
in good faith determine(s) that withholding the notice is in the interests of Holders of the
Series.

     Section 7.06 Reports by Trustee to Holders.

     Within 60 days after each April 15 beginning with the April 15 following the date of this
Indenture, the Trustee shall mail to each Holder a brief report dated as of such April 15 that
complies with TIA §313(a) (but if no event described in TIA §313(a)(2) has occurred within the
twelve months preceding the reporting date no report need be transmitted). The Trustee also shall
comply with TIA §313(b) and §313(c).

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     A copy of each report at the time of its mailing to Holders shall be delivered to the Issuer
and filed by the Trustee with the SEC and each national securities exchange on which the Securities
are listed. The Issuer and the Company agree to notify the Trustee of each national securities
exchange on which the Securities are listed or delisted.

     Section 7.07 May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Issuer, in its individual or any other capacity, may become the owner or pledgee of
Securities and may otherwise deal with the Issuer with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

     Section 7.08 Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Issuer.

     Section 7.09 Compensation and Indemnity.

     The Issuer and the Company shall pay to the Trustee or predecessor trustee from time to time
reasonable compensation for their respective services subject to any written agreement between the
Trustee and the Issuer and the Company. The Issuer and the Company shall reimburse the Trustee
upon request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include
the reasonable compensation and expenses of the Trustee’s agents and counsel. Each of the Issuer
and the Company shall indemnify the Trustee and each predecessor trustee, its officers, directors,
employees and agents and hold it harmless against any loss, claim, damage, liability or expense
incurred or made by or on behalf of it in connection with the administration of this Indenture or
the trust hereunder and its duties hereunder including the costs and expenses of defending itself
against or investigating any claim in the premises. The Trustee shall notify the Issuer and the
Company promptly of any claim for which it may seek indemnity. The Issuer and the Company need not
reimburse any expense or indemnify against any loss or liability incurred by the Trustee through
the Trustee’s, or its officers’ or directors’, employees’ negligence or bad faith.

     To ensure the payment of obligations by the Issuer and the Company pursuant to this Section,
the Trustee shall have a claim prior to the Securities on all money or property held or collected
by the Trustee, except that held in trust to pay principal of or interest on particular Securities.
When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 6.01 or in connection with Article Six hereof, the expenses (including the
reasonable fees and expenses of its counsel) and the compensation for services in connection
therewith are to constitute expenses of administration under any bankruptcy law.

     The provision of this Section shall survive termination of this Indenture.

     Section 7.10 Replacement of Trustee.

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     The Trustee may resign by so notifying the Issuer and the Company. The Holders of a majority
in principal amount of the outstanding Securities may remove the Trustee by so notifying the
Trustee to be removed in writing and may appoint a successor trustee with the Issuer’s consent.
Such resignation or removal shall not take effect until the appointment by the Holders or the
Issuer as hereinafter provided of a successor trustee and the acceptance of such appointment by
such successor trustee. The Issuer may or the Company may cause the Issuer to remove the Trustee
and any Holder may petition any court of competent jurisdiction for the removal of the Trustee if:

          (1) the Trustee fails to comply with Section 7.10 after written request by the Issuer or any
bona fide Holder who has been a Holder for at least six months;

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

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

          (4) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuer shall promptly appoint a successor trustee. If a successor trustee does not
take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee
at the expense of the Issuer, the Issuer or any Holder may or the Company may cause the Issuer to
petition any court of competent jurisdiction for the appointment of a successor trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee, the Issuer and the Company. Promptly after that, the retiring Trustee upon payment of its
charges hereunder, shall transfer all property held by it as Trustee to the successor Trustee
(subject to the prior claim provided by Section 9.07). Any resignation or removal of the Trustee
and any appointment of a successor Trustee shall become effective upon acceptance of appointment by
the successor Trustee. The successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. A successor Trustee shall mail notice of its succession to each
Holder.

     Section 7.11 Successor Trustee by Merger, etc.

     If the Trustee consolidates with, merges with or into or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor trustee.

     Section 7.12 Eligibility; Disqualification.

     This Indenture shall always have a Trustee who satisfies the requirements of TIA §310(a)(1).
The Trustee shall have a combined capital and surplus of at least $15,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with TIA §310(b).

     Section 7.13 Preferential Collection of Claims Against the Issuer.

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

ARTICLE EIGHT

DISCHARGE OF INDENTURE

     Section 8.01 Defeasance upon Deposit of Moneys or U.S. Government Obligations.

     (a) The Issuer may, at its option and at any time, elect to have either paragraph (b) or
paragraph (c) below be applied to the outstanding Securities of any Series upon compliance with the
applicable conditions set forth in paragraph (d).

     (b) Upon the Issuer’s exercise under paragraph (a) of the option applicable to this paragraph
(b), the Issuer and the Guarantors shall be deemed to have been released and discharged from their
respective obligations with respect to the outstanding Securities of a Series on the date the
applicable conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this
purpose, such Legal Defeasance means that the Issuer shall be deemed to have paid and discharged
the entire Indebtedness represented by the outstanding Securities of a Series, which shall
thereafter be deemed to be “outstanding” only for the purposes of the Sections and matters under
this Indenture referred to in (i) and (ii) below, and to have satisfied all its other obligations
under such Securities and this Indenture insofar as such Securities are concerned, except for the
following which shall survive until otherwise terminated or discharged hereunder: (i) the rights of
Holders of outstanding Securities of a Series to receive solely from the trust fund described in
paragraph (d) below and as more fully set forth in such paragraph, payments in respect of the
principal of and interest on such Securities when such payments are due and (ii) obligations listed
in Section 8.02, subject to compliance with this Section. The Issuer may exercise its option under
this paragraph (b) notwithstanding the prior exercise of its option under paragraph (c) below with
respect to such Securities.

     (c) Upon the Issuer’s exercise under paragraph (a) of the option applicable to this paragraph
(c), the Issuer and the Guarantors shall be released and discharged from the obligations under any
covenant contained in Article Five, Section 4.04 and any other covenant contained in the
Authorizing Resolution or supplemental indenture relating to such Series to the extent provided for
therein, on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Securities of such Series shall thereafter be deemed to be not “outstanding”
for the purpose of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed
“outstanding” for all other purposes hereunder. For this purpose, such Covenant Defeasance means
that, with respect to the outstanding Securities of a Series, the Issuer may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01(3), but, except as specified above, the remainder of this Indenture and such
Securities shall be unaffected thereby.

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     (d) The following shall be the conditions to application of either paragraph (b) or paragraph
(c) above to the outstanding Securities of the applicable Series:

          (1) The Issuer shall have irrevocably deposited in trust with the Trustee, pursuant to an
irrevocable trust and security agreement in form and substance reasonably satisfactory to the
Trustee, money in U.S. dollars or U.S. government obligations or a combination thereof which
through the payment of interest and principal thereof in accordance with their terms will provide
money in an amount sufficient to pay the principal of and interest on, and any mandatory sinking
fund payments in respect of the outstanding Securities of such Series on the stated maturity of the
payments, in accordance with the terms of this Indenture and such Securities; provided, however,
that the Trustee (or other qualifying trustee) shall have received an irrevocable written order
from the Issuer instructing the Trustee (or other qualifying trustee) to apply such money or the
proceeds of such U.S. government obligations to said payments with respect to the Securities of
such Series to maturity;

          (2) No Default or Event of Default and no event which, with notice or lapse of time, would
become an Event of Default shall have occurred and be continuing on the date of such deposit;

          (3) Such deposit will not result in a Default under this Indenture or a breach or violation
of, or constitute a default under, any other material instrument or agreement to which the Issuer,
the Company or any of the Subsidiaries is a party or by which it or any of their property is bound;

          (4) (i) In the event the Issuer elects paragraph (b) hereof, the Issuer shall deliver to the
Trustee an Opinion of Counsel in the United States, in form and substance reasonably satisfactory
to the Trustee, to the effect that (A) the Issuer has received from, or there has been published
by, the Internal Revenue Service a ruling or (B) since the Issue Date pertaining to such Series,
there has been a change in the applicable federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall state that, or (ii) in the event the Issuer
elects paragraph (c) hereof, the Issuer shall deliver to the Trustee an Opinion of Counsel in the
United States, in form and substance reasonably satisfactory to the Trustee, to the effect that, in
the case of clauses (i) and (ii), Holders of the Securities of such Series will not recognize
income, gain or loss for federal income tax purposes as a result of such deposit and the defeasance
contemplated hereby and will be subject to federal income tax in the same amounts and in the same
manner and at the same times as would have been the case if such deposit and defeasance had not
occurred;

          (5) The Issuer shall have delivered to the Trustee an Officers’ Certificate, stating that the
deposit under clause (1) was not made by the Issuer with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the Issuer or with the intent of
defeating, hindering, delaying or defrauding any other creditors of the Issuer or others;

          (6) The Issuer shall have delivered to the Trustee an Opinion of Counsel, reasonably
satisfactory to the Trustee, to the effect that, (A) the trust funds will not be subject to the
rights of Holders of Indebtedness of the Issuer other than the Securities of such Series and (B)
assuming no intervening bankruptcy of the Company between the date of deposit and the

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91st day following the deposit and that no Holder of Securities of such Series is an insider
of the Issuer, after the 91st day following the deposit, the trust funds will not be subject to any
applicable bankruptcy, insolvency, reorganization or similar law affecting creditors’ rights
generally; and

          (7) The Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent specified herein relating to the defeasance
contemplated by this Section have been complied with. In the event all or any portion of the
Securities of a Series are to be redeemed through such irrevocable trust, the Issuer must make
arrangements satisfactory to the Trustee, at the time of such deposit, for the giving of the notice
of such redemption or redemptions by the Trustee in the name and at the expense of the Issuer.

     (e) In addition to the Issuer’s rights above under this Section, the Issuer may terminate all
of its obligations under this Indenture with respect to a Series, and the obligations of the
Guarantors shall terminate with respect to such Series (subject to Section 8.02), when:

          (1) All Securities of such Series theretofore authenticated and delivered (other than
Securities which have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 2.07 and Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or
discharged from such trust) have been delivered to the Trustee for cancellation or all such
Securities not theretofore delivered to the Trustee for cancellation have become due and payable
and the Issuer has irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for that purpose an amount of money sufficient to pay and discharge the entire
Indebtedness on the Securities not theretofore delivered to the Trustee for cancellation, for
principal of and interest;

          (2) The Issuer has paid or caused to be paid all other sums payable hereunder by the Company;

          (3) The Issuer has delivered irrevocable instructions to the Trustee to apply the deposited
money toward the payment of the Securities at maturity or redemption, as applicable; and

          (4) The Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, stating that all conditions precedent specified herein relating to the satisfaction and
discharge of this Indenture have been complied with.

     Section 8.02 Survival of the Issuer’s Obligations.

     Notwithstanding the satisfaction and discharge of the Indenture under Section 8.01, the
Issuer’s obligations in paragraph 9 of the Securities and Sections 2.03 through 2.07, 4.01, 7.07,
7.08, 8.04 and 8.05, however, shall survive until the Securities of an applicable Series are no
longer outstanding. Thereafter, the Issuer’s obligations in paragraph 9 of the Securities of such
Series and Sections 7.07, 8.04 and 8.05 shall survive (as they relate to such Series) such
satisfaction and discharge.

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     Section 8.03 Application of Trust Money.

     The Trustee shall hold in trust money or U.S. government obligations deposited with it
pursuant to Section 8.01. It shall apply the deposited money and the money from U.S. government
obligations in accordance with this Indenture to the payment of principal of and interest on the
Securities of the defeased Series.

     Section 8.04 Repayment to the Issuer.

     The Trustee and the Paying Agent shall promptly pay to the Issuer upon request any excess
money or securities held by them at any time. The Trustee and the Paying Agent shall pay to the
Issuer upon request any money held by them for the payment of principal or interest that remains
unclaimed for two years, provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Issuer cause to be published once in
a newspaper of general circulation in the City of New York or mail to each such Holder notice that
such money remains unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication or mailing, any unclaimed balance of such money then
remaining will be repaid to the Issuer. After payment to the Issuer, Holders entitled to the money
must look to the Issuer or any Guarantor for payment as general creditors unless applicable
abandoned property law designates another Person and all liability of the Trustee or such Paying
Agent with respect to such money shall cease.

     Section 8.05 Reinstatement.

     If the Trustee is unable to apply any money or U.S. government obligations in accordance with
Section 8.01 by reason of any legal proceeding or by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, the
Issuer’s and each Guarantor’s obligations under this Indenture and the Securities relating to the
Series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01
until such time as the Trustee is permitted to apply all such money or U.S. government obligations
in accordance with Section 8.01; provided, however, that (a) if the Issuer has made any payment of
interest on or principal of any Securities of the Series because of the reinstatement of their
obligations, the Issuer shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money or U.S. government obligations held by the Trustee and (b)
unless otherwise required by any legal proceeding or any order or judgment of any court or
governmental authority, the Trustee shall return all such money or U.S. government obligations to
the Issuer promptly after receiving a written request therefor at any time, if such reinstatement
of the Issuer’s obligations has occurred and continues to be in effect.

ARTICLE NINE

Guarantees

     Section 9.01 Unconditional Guarantees.

     Subject to any other provisions set forth in the Authorizing Resolution or supplemental
indenture relating to a particular Series, each Guarantor, jointly and severally, hereby
unconditionally guarantees on a senior basis (each such guarantee to be referred to herein as the

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“Guarantee”) to each Holder of Securities of such Series authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns irrespective of the validity and
enforceability of this Indenture, that: (i) the principal of and interest on the Securities of such
Series 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 Securities of such Series and all other obligations of the Issuer to the
Holders or the Trustee hereunder or thereunder, except obligations to pay principal and interest on
any other Series not so guaranteed, 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 Securities of such Series or of any such other obligations, the same will be promptly paid
in full when due or to be 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,
subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in
Section 9.04. Each Guarantor hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Securities of such Series or this
Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of
the Securities of such Series with respect to any provisions hereof or thereof, the recovery of any
judgment against the Issuer, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event
of insolvency or bankruptcy of the Issuer, any right to require a proceeding first against the
Issuer, protest, notice and all demands whatsoever and covenants that, subject to Section 9.03,
this Guarantee will not be discharged except by complete performance of the obligations contained
in the Securities of the applicable Series, this Indenture and in this Guarantee. If any Holder or
the Trustee is required by any court or otherwise to return to the Issuer or any Guarantor, or any
custodian, trustee, liquidator or other similar official acting in relation to the Issuer or such
Guarantor, any amount paid by the Issuer or such Guarantor to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.
Each Guarantor further agrees that, as between each Guarantor, on the one hand, and the Holders and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this Guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any acceleration of such obligations as provided in
Article Six, such obligations (whether or not due and payable) shall forthwith become due and
payable by each Guarantor for the purpose of this Guarantee.

     Section 9.02 Severability.

     In case any provision of this Guarantee shall be invalid, illegal or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     Section 9.03 Release of a Guarantor.

     (a) Any Guarantor other than the Company may be released from its Guarantee so long as (1) no
Default or Event of Default exists or would result from release of such Guarantee,

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(2) the Guarantor being released has Consolidated Net Worth of less than 5% of the Company’s
Consolidated Net Worth as of the end of the Company’s most recent fiscal quarter, (3) 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 cure of a Default) of the Company’s
Consolidated Net Worth as of the end of the Company’s most recent fiscal quarter, (4) such release
would not have a material adverse effect on the homebuilding business of the Company and its
Subsidiaries and (5) the Guarantor is released from its guaranty(ees) under the Bank Credit
Facilities; provided, that if such Guarantor subsequently provides a guarantee of the Bank Credit
Facilities, it shall comply with Section 4.04. If there are no guarantors under the Bank Credit
Facilities, Guarantors under this Indenture, other than the Company, will be released from their
Guarantees.

     (b) Unless the Company elects otherwise, a Subsidiary that is a Guarantor shall be deemed
automatically and unconditionally released and discharged from all obligations under this Article
Nine upon the delivery of an Officer’s Certificate from each of the Issuer and the Company to the
Trustee that the terms and conditions of Section 9.03 have been satisfied and an Opinion of Counsel
of the Issuer and the Company to the Trustee that such release under the Bank Credit Facility is
effective, without any further action required on the part of the Trustee or any Holder. The
Trustee shall deliver an appropriate instrument evidencing any such release upon receipt of a
request by the Issuer and the Company. The Company and any Guarantor not released in accordance
with this Section shall remain liable for the full amount of principal of and interest on the
Securities as provided in this Article Nine.

     Section 9.04 Limitation of a Guarantor’s Liability.

     Each Guarantor and each Holder hereby confirms that it is the intention of all such parties
that the guarantee by the Guarantors pursuant to their Guarantee not constitute a fraudulent
transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act,
the Uniform Fraudulent Transfer Act or any similar Federal or state law. To effectuate the
foregoing intention, the Guarantors (other than the Company) and the Holders hereby irrevocably
agree that the obligations of such Guarantors under the Guarantee shall be limited to the maximum
amount as will, after giving effect to all other contingent and fixed liabilities of such
Guarantors and after giving effect to any collections from or payments made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under its Guarantee or
pursuant to Section 9.06, result in the obligations of such Guarantors under the Guarantee not
constituting such fraudulent transfer or conveyance.

     Section 9.05 Contribution.

     In order to provide for just and equitable contribution among the Guarantors, the Guarantors
agree, inter se, that in the event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under the Guarantee, such Funding Guarantor shall be entitled to a contribution from
all other Guarantors in a pro rata amount based on the Adjusted Net Assets of each Guarantor
(including the Funding Guarantor) for all payments, damages and expenses incurred by that Funding
Guarantor in discharging the Issuer’s obligations with respect to any Securities or any other
Guarantor’s obligations with respect to the Guarantee. “Adjusted Net Assets” of such Guarantor at
any date shall mean the lesser of the amount by which (x) the

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fair value of the property of such Guarantor exceeds the total amount of liabilities,
including, without limitation, contingent liabilities (after giving effect to all other fixed and
contingent liabilities incurred or assumed on such date and after giving effect to any collection
from any other Guarantor in respect of the obligations of its Guarantee), but excluding liabilities
under the Guarantee, of such Guarantor at such date and (y) the present fair salable value of the
assets of such Guarantor at such date exceeds the amount that will be required to pay the probable
liability of such Guarantor on its debts (after giving effect to all other fixed and contingent
liabilities incurred or assumed on such date and after giving effect to any collection from any
other Guarantor in respect of the obligations of such Guarantor under its Guarantee), excluding
debt in respect of the Guarantee of such Guarantor, as they become absolute and matured. This
Section 9.05 shall be for the benefit of the Issuer, the Company and the Guarantors and does not
inure to the benefit of and may not be relied upon by any third party beneficiaries.

     Section 9.06 Waiver of Subrogation.

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

     Section 9.07 Execution of Guarantee.

     To evidence their guarantee to the Holders set forth in this Article Nine, the Guarantors
hereby agree to execute the Guarantee in substantially the form included in Exhibit A or in any
such other form set forth in the Authorizing Resolution or supplemental indenture pertaining to the
applicable Series, which shall be endorsed on each Security ordered to be authenticated and
delivered by the Trustee. Each Guarantor hereby agrees that its Guarantee set forth in this
Article Nine shall remain in full force and effect notwithstanding any failure to endorse on each
Security a notation of such Guarantee. Each such Guarantee shall be signed on behalf of each
Guarantor by two Officers, or an Officer and an Assistant Secretary or one Officer shall sign and
one Officer or an Assistant Secretary (each of whom shall, in each case, have been duly authorized
by all requisite corporate actions) shall attest to such Guarantee prior to the

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authentication of the Security on which it is endorsed, and the delivery of such Security by
the Trustee, after the authentication thereof hereunder, shall constitute due delivery of such
Guarantee on behalf of such Guarantor. Such signatures upon the Guarantee may be by manual or
facsimile signature of such Officers and may be imprinted or otherwise reproduced on the Guarantee,
and in case any such Officer who shall have signed the Guarantee shall cease to be such Officer
before the Security on which such Guarantee is endorsed shall have been authenticated and delivered
by the Trustee or disposed of by the Issuer, such Security nevertheless may be authenticated and
delivered or disposed of as though the Person who signed the Guarantee had not ceased to be such
Officer of the Company or the other Guarantor.

ARTICLE TEN

Amendments, Supplements and Waivers

     Section 10.01 Without Consent of Holders.

     The Issuer and the Trustee may modify or amend provisions of this Indenture, the Guarantees or
the Securities of a Series without notice to or consent of any Holder of such Series:

          (1) to evidence the succession of another Person to the Issuer or any Guarantor under this
Indenture and the Securities or the Guarantee, respectively;

          (2) to add to Article Four covenants of the Issuer or the covenants of the Guarantors for the
benefit of the Holders or to surrender any right or power conferred upon the Issuer or the
Guarantors by this Indenture;

          (3) to add Events of Default for the benefit of the Holders;

          (4) to change or eliminate any provision of this Indenture, provided that any such change or
elimination shall become effective only when there are no outstanding Securities;

          (5) to secure any Securities or Guarantee under this Indenture;

          (6) to establish the form or terms of the Securities or Guarantee of any Series;

          (7) to add Guarantors;

          (8) to provide for the acceptance of appointment by a successor Trustee or facilitate the
administration of the trusts under this Indenture by more than one Trustee;

          (9) to close this Indenture to authentication and delivery of additional Series of Securities;

          (10) to supplement any provisions of this Indenture to the extent necessary to permit or
facilitate defeasance and discharge of the Securities, provided that such action shall not
adversely affect the rights of Holders;

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          (11) to remove a Guarantor in respect of any Series which, in accordance with the terms of
this Indenture applicable to the particular Series, ceases to be liable in respect of its
Guarantee;

          (12) to cure any ambiguity, omission, defect or inconsistency in this Indenture, provided that
such action does not adversely affect the interests of Holders;

          (13) to provide that specific provisions of this Indenture shall not apply to a Series not
previously issued;

          (14) to provide for uncertificated Securities in addition to or in place of certificated
Securities; and

          (15) to make any other change that does not adversely affect the interests of Holders.

     After an amendment under this Section becomes effective, the Company shall mail notice of such
amendment to the Holders.

     Section 10.02 With Consent of Holders.

     The Issuer and the Trustee, with the written consent of the Holders of at least a majority of
the principal amount of the outstanding Securities of each such Series affected by the amendment,
may execute supplemental indentures adding any provisions to, or changing or eliminating any of the
provisions of this Indenture or modifying the rights of the Holders of such Securities, except that
no such supplemental indenture may, without the consent of the Holders of each outstanding Security
affected by the supplemental indenture, among other things:

          (1) change the final maturity of the Securities, or reduce the rate or extend the time of
payment of interest, on the Securities, or reduce the principal amount of the Securities, or impair
the right to institute suit for payment of the Securities;

          (2) reduce the percentage of Securities, the consent of the Holders of which is required for
any such supplemental indenture, for any waiver of compliance with Sections 6.04, 6.07 or this
Section 10.02, a past Default or Event of Default in the payment of the principal of or interest on
any Security and their consequences provided in this Indenture, or any other covenant or provision;

          (3) modify any of the provisions regarding the modification of this Indenture, waivers of a
past Default or Event of Default in the payment of the principal of or interest on any Security or
waivers of Sections 6.04, 6.07 or this Section 10.02, except to increase any percentage or to
provide that certain other provisions of the Indenture cannot be modified or waived without the
consent of the Holder of each outstanding Security affected thereby;

          (4) alter the provisions (including related definitions) with respect to redemption of
Securities pursuant to Article Three hereof or with respect to any obligations on the part of the
Issuer to offer to purchase or to redeem Securities of a Series pursuant to the Authorizing
Resolution or supplemental indenture pertaining to such Series;

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          (5) modify the ranking or priority of the Securities of any Series or the Guarantee thereof in
a manner adverse to the Holders of such Securities; or

          (6) make any Security payable at a place or in money other than that stated in the Security.

     Subject to the following sentence, the Holders of a majority in principal amount of the
outstanding Securities of any Series may, on behalf of the Holders of all such Securities of such
Series, waive any past default under this Indenture relating to such Series without notice to any
Holder. Without the consent of the Holders of a Series of Securities affected, however, an
amendment, supplement or waiver, including a waiver pursuant to Section 6.04, shall not be able to
effect any of the actions contemplated by clauses (1) — (6) of this Section. Each such Series
shall vote as a separate class.

     An amendment of a provision included solely for the benefit of one or more Series does not
affect the interests of Holders of any other Series.

     It shall not be necessary for the consent of the Holders under this Section to approve the
particular form of any proposed supplement, but it shall be sufficient if such consent approves the
substance thereof.

     Section 10.03 Compliance with Trust Indenture Act.

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

     Section 10.04 Revocation and Effect of Consents.

     A consent to an amendment, supplement or waiver by a Holder shall bind the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on any Security. Subject
to the following paragraph, any such Holder or subsequent Holder, however, may revoke the consent
as to his Security or portion of a Security. Such revocation shall be effective only if the
Trustee receives the notice of revocation before the date the amendment, supplement or waiver
becomes effective.

     The Company may, but shall not be obligated to, fix a Record Date for the purpose of
determining the Holders of Securities of any Series entitled to consent to any amendment,
supplement or waiver, which Record Date shall be at least 10 days prior to the first solicitation
of such consent. If a Record Date is fixed, then notwithstanding the last sentence of the
immediately preceding paragraph, those Persons who were Holders at such Record Date (or their duly
designated proxies), and only those Persons, shall be entitled to revoke any consent previously
given, whether or not such Persons continue to be Holders after such Record Date. No such consent
shall be valid or effective for more than 90 days after such Record Date.

     After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it makes a change described in any of clauses (1) through (6) of Section 10.02, in which case, the
amendment, supplement or waiver shall bind only each Holder of a Security who has

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consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security; provided that any such waiver shall
not impair or affect the right of any Holder to receive payment of principal of and interest on a
Security, on or after the respective due dates expressed in such Security, or to bring suit for the
enforcement of any such payment on or after such respective dates without the consent of such
Holder.

     Section 10.05 Notation on or Exchange of Securities.

     If an amendment, supplement or waiver changes the terms of a Security or a Guarantee, the
Issuer may or the Company may cause the Issuer to require the Holder of the Security or the
Guarantor, as applicable, to deliver such Security or Guarantee to the Trustee, at which time the
Trustee shall place an appropriate notation on the Security or Guarantee, as applicable, about the
changed terms and return it to the Holder. Alternatively, if the Trustee or the Issuer so
determines or the Company causes the Issuer to so determine, the Issuer in exchange for the
Security or Guarantee, as applicable, shall issue and the Trustee shall authenticate a new Security
that reflects the changed terms.

     Section 10.06 Trustee to Sign Amendments, etc.

     Subject to Section 7.02(b), the Trustee shall sign any amendment, supplement or waiver
authorized pursuant to this Article if the amendment, supplement or waiver does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may
but need not sign it. In signing or refusing to sign any amendment or supplemental indenture, the
Trustee shall be given and shall be fully protected in relying upon, an Officers’ Certificate and
an Opinion of Counsel as conclusive evidence that such amendment or supplemental indenture is
authorized or permitted by this Indenture, that it is not inconsistent herewith, and that it will
be valid and binding upon the Issuer in accordance with its terms.

ARTICLE ELEVEN

Conversion of Securities

     Section 11.01 Applicability of Article.

     Securities of any Series which are convertible into Common Stock at the option of the Holder
shall be convertible in accordance with their terms and unless the Authorizing Resolution provides
otherwise, in accordance with this Article. Each reference in this Article Eleven to “a Security”
or “the Securities” refers to the Securities of the particular Series that is convertible into
Common Stock. If more than one Series of Securities with conversion privileges are outstanding at
any time, the provisions of this Article Eleven shall be applied separately to each such Series.

     Section 11.02 Conversion Privilege.

     Subject to and upon compliance with the provisions of this Article Eleven, the Holder of any
Security so designated shall have the right, at its, his or her option, at any time prior to the
close of business on the date specified in the Securities of such Series (or if such Security or

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portion thereof is called for redemption prior to such date, then in respect of such Security
or portion thereof to and including but not after the close of business on the second day (or, if
such day is not a Business Day, then on the next following Business Day) preceding the date fixed
for such redemption) to convert the principal amount of any such Security, or any portion of such
principal amount which is $2,000 or an integral multiple of $1,000 thereof, into that number of
fully paid and non-assessable shares of the Company’s Common Stock (calculated as to each
conversion to the nearest 1/100th of a share) obtained by dividing the principal amount of the
Security or portion thereof to be converted by the Conversion Price and by surrender of the
Security so to be converted in whole or in part, such surrender to be made in the manner provided
in Section 11.03. Notwithstanding the previous sentence, if the Issuer shall fail to redeem a
Security which has been called for redemption, the Holder of such Security shall retain the right
to convert such Security as provided in this Article Eleven.

     Section 11.03 Manner of Exercise of Conversion Privilege.

     In order to exercise a conversion privilege, the Holder of any Security to be converted in
whole or in part shall surrender such Security at any of the offices or agencies to be maintained
for such purpose by the Issuer pursuant to Section 2.01, and shall give notice to the Issuer and
the Company in the form provided in the Security, duly executed, at such office or agency that the
Holder elects to convert such Security or the portion thereof specified in said notice. Such
notice shall also state the name or names, together with the address or addresses, in which the
certificate or certificates for shares of Common Stock which shall be issuable on such conversion
shall be issued. Each Security surrendered for conversion shall, unless the shares issuable on
conversion are to be issued in the same name as the name in which such Security is registered, be
accompanied by instruments of transfer, in form satisfactory to the Company, duly executed by the
Holder or its, his or her duly authorized attorney. Securities so surrendered during the period
from the close of business on a Record Date, or the next preceding Business Day if such Record Date
is not a Business Day, preceding any Interest Payment Date to the opening of business on such
Interest Payment Date (excluding Securities or portions thereof called for redemption during such
period) shall also be accompanied by payment in next-day funds or other funds acceptable to the
Company of an amount equal to the interest payable on such Interest Payment Date on the principal
amount of such Security then being converted; provided, however, that, if the Issuer shall default
on the payment of said interest, said funds shall be returnable to the payor thereof. As promptly
as practicable after the surrender of such Security, as aforesaid, the Company shall issue and
shall deliver at such office or agency to such Holder, or on its, his or her written order, a
certificate or certificates for the number of full shares of Common Stock issuable upon the
conversion of such Security or portion thereof in accordance with the provisions of this Article
Eleven and any fractional interest in respect of a share of Common Stock arising upon such
conversion shall be settled as provided in Section 11.04. In case any Security of a denomination
greater than $2,000 shall be surrendered for partial conversion, the Issuer and the Company shall
execute and the Trustee shall authenticate and deliver to or upon the order of the Holder of the
Security so surrendered, at the expense of the Issuer, a new Security or Securities and Guarantee
or Guarantees in authorized denominations in an aggregate principal amount equal to the unconverted
portion of the surrendered Security. Such conversion shall be deemed to have been effected
immediately prior to the close of business on the date on which such Security shall have been
surrendered and such notice received by the Issuer and the Company as aforesaid, and the Person or
Persons in whose name or names any certificate or

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certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed
to have become the holder or holders of record of the shares represented thereby at such time and
such conversion shall be at the Conversion Price in effect at such time, unless the stock transfer
books of the Company shall be closed on that date, in which event such Person or Persons shall be
deemed to have become such holder or holders of record at the close of business on the next
succeeding day on which such stock transfer books are open, but such conversion shall be at the
Conversion Price in effect on the date upon which such Security shall have been surrendered and
such notice received by the Issuer and the Company. Subject to the aforesaid requirement for a
payment in the event of conversion after the close of business on a Record Date preceding an
Interest Payment Date, no payment or adjustment shall be made on conversion for interest accrued on
the Securities surrendered for conversion or for dividends on the Common Stock delivered on such
conversion.

     Section 11.04 Payment in Lieu of Fractional Shares.

     No fractional shares of Common Stock shall be issued upon conversion of the Securities.
Instead of any fractional interest in a share of Common Stock which would otherwise be deliverable
upon the conversion of any Security or Securities, the Issuer and/or the Company shall make an
adjustment therefor to the nearest 1/100th of a share in cash at the Current Market Price thereof
at the close of business on the Business Day next preceding the day of conversion. If more than
one Security shall be surrendered for conversion at one time by the same Holder, the number of full
shares issuable upon conversion thereof shall be computed on the basis of the aggregate principal
amount of the Securities, or specified portions thereof to be converted, so surrendered.

     Section 11.05 Adjustment of Conversion Price.

     The Conversion Price shall be adjusted from time to time as follows:

     (a) In case the Company shall hereafter (i) pay a dividend or make a distribution on its
Common Stock in shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock into
a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller
number of shares, or (iv) issue by reclassification of its Common Stock any shares of Capital Stock
of the Company, the Conversion Price in effect immediately prior to such action shall be adjusted
so that the Holder of any Security thereafter surrendered for conversion shall be entitled to
receive the number of shares of Common Stock or other Capital Stock of the Company which it, he or
she would have owned immediately following such action had such Security been converted immediately
prior thereto. An adjustment made pursuant to this subsection (a) shall become effective
immediately after the Record Date in the case of a dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or
reclassification. If, as a result of an adjustment made pursuant to this subsection (a), the
Holder of any Security thereafter surrendered for conversion shall become entitled to receive
shares of two or more classes of Capital Stock or shares of Common Stock and other Capital Stock of
the Company, the Board of Directors (whose determination shall be conclusive and shall be described
in a statement filed with the Trustee and with the Registrar) shall determine in an equitable
manner the allocation of the adjusted Conversion Price between
or among shares of such classes of Capital Stock or shares of Common Stock and other Capital
Stock.

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     (b) In case the Company shall hereafter issue rights or warrants to holders of its outstanding
shares of Common Stock generally entitling them (for a period expiring within 45 days after the
Record Date mentioned below) to subscribe for or purchase shares of Common Stock at a price per
share less than the Current Market Price per share of the Common Stock on the Record Date mentioned
below, the Conversion Price of the shares of Common Stock shall be adjusted so that the same shall
equal the price determined by multiplying the Conversion Price in effect immediately prior to the
date of issuance of such rights or warrants by a fraction of which the numerator shall be the
number of shares of Common Stock outstanding on the date of issuance of such rights or warrants
plus the number of shares which the aggregate offering price of the total number of shares so
offered would purchase at such Current Market Price, and of which the denominator shall be the
number of shares of Common Stock outstanding on the date of issuance of such rights or warrants
plus the number of additional shares of Common Stock offered for subscription or purchase. Such
adjustment shall become effective immediately after the Record Date for the determination of
shareholders entitled to receive such rights or warrants.

     (c) In case the Company shall hereafter distribute to holders of its outstanding Common Stock
generally evidences of its indebtedness or assets (excluding any cash dividend paid from retained
earnings of the Company and dividends or distributions payable in stock for which adjustment is
made pursuant to subsection (a) of this Section 11.05) or rights or warrants to subscribe to
securities of the Company (excluding those referred to in subsection (b) of this Section 11.05),
then in each such case the Conversion Price of the shares of Common Stock shall be adjusted so that
the same shall equal the price determined by multiplying the Conversion Price in effect immediately
prior to the date of such distribution by a fraction of which the numerator shall be the Current
Market Price per share of the Common Stock on the Record Date mentioned below less the then fair
market value (as determined by the Board of Directors, whose determination shall be conclusive and
shall be described in a statement filed with the Trustee and with the Registrar) of the portion of
the evidences of indebtedness or assets so distributed to the holder of one share of Common Stock
or of such subscription rights or warrants applicable to one share of Common Stock, and of which
the denominator shall be such Current Market Price per share of Common Stock. Such adjustment
shall become effective immediately after the Record Date for the determination of shareholders
entitled to receive such distribution.

     (d) In any case in which this Section 11.05 shall require that an adjustment be made
immediately following a Record Date, the Company may elect to defer (but only until five Business
Days following the filing by the Issuer with the Trustee and the Registrar of the certificate of
independent public accountants described in subsection (f) of this Section 11.05) issuing to the
Holder of any Security converted after such Record Date the shares of Common Stock issuable upon
such conversion over and above the shares of Common Stock issuable upon such conversion on the
basis of the Conversion Price prior to adjustment.

     (e) No adjustment in the Conversion Price shall be required unless such adjustment would
require an increase or decrease of at least 1% of such price; provided, however, that any
adjustments which by reason of this subsection (e) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment, and provided further that

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adjustment shall be required and made in accordance with the provisions of this Article Eleven
(other than this subsection (e)), not later than such time as may be required in order to preserve
the tax-free nature of a distribution to the holders of Securities or Common Stock. All
calculations under this Section 11.05 shall be made to the nearest cent or to the nearest 1/100th
of a share, as the case may be. Anything in this Section 11.05 to the contrary notwithstanding,
the Company shall be entitled to make such reductions in the Conversion Price, in addition to those
required by this Section 11.05, as it in its discretion shall determine to be advisable in order
that any stock dividend, subdivision of shares, distribution of rights to purchase stock or
securities, or distribution of securities convertible into or exchangeable for stock hereafter made
by the Company to its shareholders shall not be taxable.

     (f) Whenever the Conversion Price is adjusted as herein provided, (i) the Issuer and the
Company shall promptly file with the Trustee and the Registrar a certificate of a firm of
independent public accountants setting forth the Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment and the manner of computing the
same, which certificate shall be conclusive evidence of the correctness of such adjustment and (ii)
a notice stating that the Conversion Price has been adjusted and setting forth the adjusted
Conversion Price shall forthwith be given by the Issuer and the Company to the Holders in the
manner provided in Section 12.02. Subject to TIA Section 315(a), (c) and (d), the Trustee and any
conversion agent shall be under no duty or responsibility with respect to any such certificate or
the certificate provided for in Section 11.10 except to exhibit the same from time to time to any
Holder of a Security desiring an inspection of such certificate.

     (g) In the event that at any time as a result of an adjustment made pursuant to subsection (a)
of this Section 11.05, the Holder of any Security thereafter surrendered for conversion shall
become entitled to receive any shares of the Company other than shares of Common Stock, thereafter
the Conversion Price of such other shares so receivable upon conversion of any Security shall be
subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in this Article Eleven.

     Section 11.06 Notice of Certain Corporate Action.

     In the event:

     (a) the Company shall take any action which would require an adjustment in the Conversion
Price pursuant to Section 11.05(c); or

     (b) the Company shall authorize the granting to the holders of its Common Stock (as a class)
of rights or warrants to subscribe for or purchase any shares of stock of any class or of any other
rights; or

     (c) there shall be any capital reorganization or reclassification of the Common Stock (other
than a subdivision or combination of the outstanding Common Stock and other than a change in the
par value of the Common Stock), or any consolidation or merger to which the Company is a party or
any statutory exchange of securities with another corporation and for

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which approval of any shareholders of the Company is required, or any sale or transfer of all
or substantially all of the assets of the Company; or

     (d) there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the
Company; then the Issuer and the Company shall cause to be filed with the Trustee and the
Registrar, and shall cause to be given to the Holders, in the manner provided in Section 12.02, at
least 14 days prior to the applicable date hereinafter specified, a notice stating (i) the date on
which a record is to be taken for the purpose of such distribution or rights, or, if a record is
not to be taken, the date as of which the holders of Common Stock of record to be entitled to such
distribution or rights are to be determined, or (ii) the date on which such reorganization,
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up is
expected to become effective, and the date as of which it is expected that holders of Common Stock
of record shall be entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up. Failure to give such notice or any defect
therein shall not affect the legality or validity of the proceedings described in subsection (a),
(b), (c) or (d) of this Section 11.06.

     Section 11.07 Company to Provide Stock.

     The Company covenants that it will at all times reserve and keep available, free from
preemptive rights, out of the aggregate of its authorized but unissued shares of Common Stock or
its issued shares of Common Stock held in its treasury, or both, for the purpose of effecting
conversions of Securities, the full number of shares of Common Stock deliverable upon the
conversion of all outstanding Securities not theretofore converted. For purposes of this Section
11.07, the number of shares of Common Stock which shall be deliverable upon the conversion of all
outstanding Securities shall be computed as if at the time of computation all outstanding
Securities were held by a single Holder.

     Before taking any action which would cause an adjustment reducing the Conversion Price below
the then par value (if any) of the shares of Common Stock deliverable upon conversions of the
Securities, the Company will take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock at such adjusted Conversion Price.

     The Company will endeavor to list the shares of Common Stock required to be delivered upon
conversion of Securities prior to such delivery upon each national securities exchange, if any,
upon which the outstanding Common Stock is listed at the time of such delivery.

     Prior to the delivery of any securities which the Company shall be obligated to deliver upon
conversion of the Securities, the Company will endeavor to comply with all federal and state laws
and regulations thereunder requiring the registration of such securities with, or any approval of
or consent to the delivery thereof by, any governmental authority.

     Section 11.08 Taxes on Conversions.

     The Issuer and/or the Company will pay any and all documentary stamp or similar issue or
transfer taxes payable in respect of the issue or delivery of shares of Common Stock on

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conversions of Securities pursuant hereto; provided, however, that neither the Issuer nor the
Company shall be required to pay any tax which may be payable in respect of any transfer involved
in the issue or delivery of shares of Common Stock in a name other than that of the Holder of the
Securities to be converted and no such issue or delivery shall be made unless and until the person
requesting such issue or delivery has paid to the Issuer and/or the Company the amount of any such
tax or has established, to the satisfaction of the Issuer and the Company, that such tax has been
paid.

     Section 11.09 Covenant as to Stock.

     The Company covenants that all shares of Common Stock which may be delivered upon conversions
of Securities will upon delivery be duly and validly issued and fully paid and non-assessable, free
of all liens and charges and not subject to any preemptive rights.

     Section 11.10 Consolidation or Merger.

     Notwithstanding any other provision herein to the contrary, in case of any consolidation or
merger to which the Company is a party other than a merger or consolidation in which the Company is
the continuing corporation, or in case of any sale or conveyance to another corporation of the
property of the Company as an entirety or substantially as an entirety, or in the case of any
statutory exchange of securities with another corporation (including any exchange effected in
connection with a merger of a third corporation into the Company), there shall be no adjustments
under Section 11.05 but the Holder of each Security then outstanding shall have the right
thereafter to convert such Security into the kind and amount of securities, cash or other property
which he would have owned or have been entitled to receive immediately after such consolidation,
merger, statutory exchange, sale or conveyance had such Security been converted immediately prior
to the effective date of such consolidation, merger, statutory exchange, sale or conveyance and in
any such case, if necessary, appropriate adjustment shall be made in the application of the
provisions set forth in this Article Eleven with respect to the rights and interests thereafter of
the Holders of the Securities, to the end that the provisions set forth in this Article Eleven
shall thereafter correspondingly be made applicable, as nearly as may reasonably be, in relation to
any shares of stock or other securities or property thereafter deliverable on the conversion of the
Securities. Any such adjustment shall be made by and set forth in a supplemental indenture
executed by the Issuer, the Company and the Trustee and approved by a firm of independent public
accountants, evidenced by a certificate to that effect; and any adjustment so approved shall for
all purposes hereof conclusively be deemed to be an appropriate adjustment.

     The above provisions of this Section 11.10 shall similarly apply to successive consolidations,
mergers, statutory exchanges, sales or conveyances.

     The Issuer shall give notice of the execution of such a supplemental indenture to the Holders
of Securities in the manner provided in Section 12.02 within 30 days after the execution thereof.

     The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in such supplemental indenture relating either to the kind or amount of

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shares of stock or securities or property receivable by Holders upon the conversion of their
Securities after any such consolidation, merger, statutory exchange, sale or conveyance, or to any
adjustment to be made with respect thereto.

     Section 11.11 Disclaimer of Responsibility for Certain Matters.

     Neither the Trustee nor the Registrar shall at any time be under any duty or responsibility to
any Holder of Securities to determine whether any facts exist which may require any adjustment of
the Conversion Price, or with respect to the nature or extent of any such adjustment when made, or
with respect to the method employed, or herein or in any supplemental indenture provided to be
employed, in making the same. Neither the Trustee nor the Registrar shall be accountable with
respect to the listing or registration referred to in Section 11.07 or the validity or value (or
the kind or amount) of any shares of Common Stock, or of any securities or property, which may at
any time be issued or delivered upon the conversion of any Security; and neither the Trustee nor
the Registrar makes any representation with respect thereto. Neither the Trustee nor the Registrar
shall be responsible for any failure of the Company to issue, transfer or deliver any shares of
Common Stock or stock certificates or other securities or property or to make any cash payment upon
the surrender of any Security for the purpose of conversion or, subject to TIA Section 315(a), (c)
and (d), to comply with any of the covenants contained in this Article Eleven.

ARTICLE TWELVE

Miscellaneous

     Section 12.01 Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with another provision which
is required to be included in this Indenture by the TIA or the TIA as amended after the date
hereof, the required provision shall control.

     Section 12.02 Notices.

     Any order, consent, notice or communication shall be sufficiently given if in writing and
delivered in Person or mailed by first class mail, postage prepaid, addressed as follows:

     if to the Issuer or any Guarantor:

Toll Brothers, Inc.

250 Gibraltar Road

Horsham, PA 19044

Attention: Chief Financial Officer

     with a copy to

Toll Brothers, Inc.

250 Gibraltar Road

Horsham, PA 19044

Attention: General Counsel

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     if to the Trustee:

The Bank of New York Mellon

101 Barclay Street, 8W

New York, New York 10286

Attention: Corporate Trust Administration

     The Issuer, any Guarantor or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

     All notices and other communications provided for or permitted hereunder shall be made in
writing by hand-delivery, registered first-class mail, telecopier, or any courier guaranteeing
overnight delivery (i) if to a Holder, at the most current address set forth on the records of the
Registrar under this Indenture or (ii) if to the Issuer, the Guarantors or the Trustee, initially
at the address set forth in this Section 12.02 thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 12.02.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next business
day if timely delivered to an air courier guaranteeing overnight delivery. Copies of all such
notices, demands or other communications shall be concurrently delivered by the Person giving the
same to the Trustee, at the address specified in this Section 12.02. Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders. If a notice or communication is mailed in the manner provided in this Section, it
is duly given, whether or not the addressee receives it, except that notice to the Trustee shall
only be effective upon receipt thereof by the Trustee.

     Section 12.03 Communications by Holders with Other Holders.

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

     Section 12.04 Certificate and Opinion as to Conditions Precedent.

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

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

          (2) an Opinion of Counsel (which shall include the statements set forth in Section 12.05)
stating that, in the opinion of such counsel, all such conditions precedent and covenants,
compliance with which constitutes a condition precedent, if any, provided for in this

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Indenture relating to the proposed action or inaction, have been complied with and that any
such action does not conflict with the terms of this Indenture.

     Section 12.05 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

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

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

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

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

     Section 12.06 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or a meeting of Holders. The Registrar or
Paying Agent may make reasonable rules for its functions.

     Section 12.07 Legal Holidays.

     A “Legal Holiday” is a Saturday, a Sunday, a legal holiday or a day on which banking
institutions in New York, New York are not required to be open. If a payment date is a Legal
Holiday at a place of payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period. A Business Day is
any day other than a Legal Holiday.

     Section 12.08 Governing Law.

     The laws of the State of New York shall govern this Indenture, the Securities of each Series
and the Guarantees.

     Section 12.09 No Adverse Interpretation of Other Agreements.

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

     Section 12.10 No Recourse Against Others.

-49-

 

     All liability described in paragraph 13 of the Securities of any director, officer, employee
or stockholder, as such, of the Issuer is waived and released.

     Section 12.11 Successors and Assigns.

     All covenants and agreements of the Issuer or the Guarantors in this Indenture and the
Securities shall bind their respective successors and assigns. All agreements of the Trustee in
this Indenture shall bind its successors and assigns.

     Section 12.12 Duplicate Originals.

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

     Section 12.13 Severability.

     In case any one or more of the provisions contained in this Indenture or in the Securities of
a Series 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 Indenture
or of such Securities.

     Section 12.14 Counterparts.

     This Indenture may be executed in any number of counterparts, all of which shall together
constitute one and the same instrument. This Indenture shall become binding when one or more
counterparts hereof, individually or taken together, shall bear the signatures of all of the
parties reflected hereon as the signatories.

     Section 12.15 Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, acts of war or terrorism, civil or
military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware) services affecting
the banking industry generally; it being understood that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

-50-

 

SIGNATURES

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

	 	 	 	 	 
	 	TOLL BROTHERS FINANCE CORP.,

as Issuer

 	 
	 	By:  	/s/ Joel H. Rassman
 	 
	 	 	Name:  	Joel H. Rassman 	 
	 	 	Title:  	Executive Vice President, Chief Financial

Officer, Assistant Secretary and Treasurer 	 
	 
	 	TOLL BROTHERS, INC.,

as a Guarantor

 	 
	 	By:  	/s/ Joel H. Rassman
 	 
	 	 	Name:  	Joel H. Rassman 	 
	 	 	Title:  	Executive Vice President, Chief Financial

Officer, Assistant Secretary and Treasurer 	 
	 
	 	THE OTHER GUARANTORS NAMED ON
 SCHEDULE A HERETO, as
Guarantors

 	 
	 	By:  	/s/ Joel H. Rassman
 	 
	 	 	Name:  	Joel H. Rassman 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 	 	 
	THE BANK OF NEW YORK MELLON,

as Trustee

 	 	 
	By:  	/s/ Mary Miselis
 	 	 
	 	Name:  	Mary Miselis 	 	 
	 	Title:  	Vice President 	 	 

 

 

	 	 	 	 	 

SCHEDULE A

Toll Brothers, Inc. (DE)

110-112 Third Ave. Realty Corp. (NY)

Amwell Chase, Inc. (DE)

Bunker Hill Estates, Inc. (DE)

Chesterbrooke, Inc. (DE)

Connecticut Land Corp. (DE)

Daylesford Development Corp. (DE)

ESE Consultants, Inc. (DE)

Fairway Valley, Inc. (DE)

First Brandywine Finance Corp. (DE)

First Brandywine Investment Corp. II (DE)

First Brandywine Investment Corp. III (DE)

First Brandywine Investment Corp. IV (DE)

First Huntingdon Finance Corp. (DE)

Franklin Farms G.P., Inc. (DE)

HQZ Acquisitions, Inc. (MI)

MA Limited Land Corporation (DE)

Maple Point, Inc. (DE)

Maryland Limited Land Corporation (DE)

Polekoff Farm, Inc. (PA)

SH Homes Corporation (MI)

SI Investment Corporation (MI)

Springfield Chase, Inc. (DE)

Stewarts Crossing, Inc. (DE)

TB Proprietary Corp. (DE)

TB Proprietary LP, Inc. (DE)

Tenby Hunt, Inc. (DE)

The Silverman Building Companies, Inc. (MI)

Toll Architecture I, P.A. (DE)

Toll Architecture, Inc. (DE)

Toll AZ GP Corp. (DE)

Toll Bay Corp. (DE)

Toll Bay Corp. II (DE)

Toll Bros. of Arizona, Inc. (AZ)

Toll Bros. of North Carolina II, Inc. (NC)

Toll Bros. of North Carolina III, Inc. (NC)

Toll Bros. of North Carolina, Inc. (NC)

Toll Bros. of Tennessee, Inc. (DE)

Toll Bros., Inc. (DE)

Toll Bros., Inc. (PA)

Toll Bros., Inc. (TX)

Toll Brothers AZ Construction Company (AZ)

Toll Brothers Canada USA, Inc. (DE)

Toll Brothers Real Estate, Inc. (PA)

Toll Buckeye Corp. (DE)

Toll Buckeye Corp. II (DE)

Toll CA GP Corp. (CA)

Toll Centennial Corp. (DE)

Toll CO GP Corp. (CO)

Toll Copper Corp. (DE)

Toll Copper Corp. II (DE)

Toll Corp. (DE)

Toll Development Company, Inc. (MI)

Toll Diamond Corp. (DE)

Toll Diamond Corp. II (DE)

Toll Dominion Corp. (DE)

Toll Dominion Corp. II (DE)

Toll Empire Corp. (DE)

Toll Empire Corp. II (DE)

Toll Finance Corp. (DE)

Toll FL GP Corp. (FL)

Toll GA GP Corp. (GA)

Toll Garden Corp. (DE)

Toll Garden Corp. II (DE)

Toll Golden Corp. (DE)

Toll Granite Corp. (DE)

Toll Granite Corp. II (DE)

Toll Great Lakes Corp. (DE)

Toll Great Lakes Corp. II (DE)

Toll Holdings, Inc. (DE)

Toll IL GP Corp. (IL)

Toll Keystone Corp. (DE)

Toll Keystone Corp. II (DE)

Northampton Crest, L.P. (PA)

Toll Land Corp. No. 10 (DE)

Toll Land Corp. No. 20 (DE)

Toll Land Corp. No. 43 (DE)

Toll Land Corp. No. 45 (DE)

Toll Land Corp. No. 46 (DE)

Toll Land Corp. No. 47 (DE)

Toll Land Corp. No. 48 (DE)

Toll Land Corp. No. 49 (DE)

Toll Land Corp. No. 50 (DE)

Toll Land Corp. No. 51 (DE)

Toll Land Corp. No. 52 (DE)

Toll Land Corp. No. 53 (DE)

Toll Land Corp. No. 55 (DE)

Toll Land Corp. No. 56 (DE)

Toll Land Corp. No. 58 (DE)

Toll Land Corp. No. 59 (DE)

Toll Land Corp. No. 6 (PA)

Toll Land Corp. No. 60 (DE)

Toll Lone Star Corp. (DE)

Toll Lone Star Corp. II (DE)

Toll LTC Successor Corp. (NV)

Toll Management AZ Corp. (DE)

Toll Management VA Corp. (DE)

Toll Manhattan I, Inc. (NY)

Toll MD Builder Corp. (MD)

Toll MI GP Corp. (MI)

Toll Mid-Atlantic LP Company, Inc. (DE)

Toll Mid-Atlantic Note Company, Inc. (DE)

Toll Midwest LP Company, Inc. (DE)

Toll Midwest Note Company, Inc.(DE)

Toll MN GP Corp. (MN)

Toll NC GP Corp. (NC)

Toll NH GP Corp. (NH)

Toll NJ Builder Corp. (NJ)

Toll NJX III Corp. (DE)

Toll NJX IV Corp. (DE)

Toll NJX-I Corp. (DE)

Toll NJX-II Corp. (DE)

Toll Northeast LP Company, Inc. (DE)

Toll Northeast Note Company, Inc. (DE)

Toll Northeast Services, Inc. (DE)

Toll Nutmeg Corp. (DE)

Toll Nutmeg Corp. II (DE)

Toll NV
GP Corp. (NV)

Toll OH GP Corp. (OH)

Toll Old Line Corp. (DE)

Toll Old Line Corp. II (DE)

Toll PA Builder Corp. (PA)

Toll PA GP Corp. (PA)

Toll PA II GP Corp. (PA)

Toll PA III GP Corp. (PA)

Toll Palmetto Corp. (DE)

Toll Palmetto Corp. II (DE)

Toll Peppertree, Inc. (NY)

Toll Philmont Corporation (DE)

Toll Plantation Corp. (DE)

Toll Plantation Corp. II (DE)

Toll Prairie Corp. (DE)

Toll Realty Holdings Corp. I (DE)

Toll Realty Holdings Corp. II (DE)

Toll Realty Holdings Corp. III (DE)

Toll RI GP Corp. (RI)

Toll Sagebrush Corp. (DE)

Toll SC GP Corp. (SC)

Toll Southeast LP Company, Inc. (DE)

Toll Southeast Note Company, Inc. (DE)

Toll Southwest LP Company, Inc. (DE)

Toll Southwest Note Company, Inc. (DE)

Toll Sunshine Corp. (DE)

Toll Sunshine Corp. II (DE)

Toll Tar Heel Corp. (DE)

Toll Tar Heel Corp. II (DE)

Toll TN GP Corp. (TN)

Toll TX GP Corp. (DE)

Toll VA GP Corp. (DE)

Toll VA Member Two, Inc. (DE)

Toll WestCoast LP Company, Inc. (DE)

Toll WestCoast Note Company, Inc. (DE)

Toll Wood Corporation (DE)

Toll WV GP Corp. (WV)

Toll YL, Inc. (CA)

Valley Forge Conservation Holding GP Corp. (PA)

Warren Chase, Inc. (DE)

Windsor Development Corp. (PA)

51 N. 8th Street L.P. (NY)

Afton Chase, L.P. (PA)

Audubon Ridge, L.P. (PA)

Beaumont Chase, L.P. (PA)

Belmont Land, L.P. (VA)

Bernards Chase, L.P. (NJ)

Binks Estates Limited Partnership (FL)

Blue Bell Country Club, L.P. (PA)

Branchburg Ridge, L.P. (NJ)

Brass Castle Estates, L.P. (NJ)

Bridle Estates, L.P. (PA)

Broad Run Associates, L.P. (PA)

Buckingham Woods, L.P. (PA)

Bucks County Country Club, L.P. (PA)

Calabasas View, L.P. (CA)

CC Estates Limited Partnership (MA)

Charlestown Hills, L.P. (NJ)

Chellis Hill Limited Partnership (MA)

Cheltenham Estates Limited Partnership (MI)

Chesterbrooke Limited Partnership (NJ)

Cobblestones at Thornbury, L.P. (PA)

Cold Spring Hunt, L.P. (PA)

Concord Chase, L.P. (PA)

Cortlandt Chase, L.P. (NY)

Dolington Estates, L.P. (PA)

Dominion Country Club, L.P. (VA)

Eagle Farm Limited Partnership (MA)

Estates at Coronado Pointe, L.P. (CA)

Estates at Princeton Junction, L.P. (NJ)

Estates at Rivers Edge, L.P. (NJ)

Estates at San Juan Capistrano, L.P. (CA)

Fair Lakes Chase, L.P. (VA)

Fairfax Investment, L.P. (VA)

Fairfax Station Hunt, L.P. (VA)

Fairway Mews Limited Partnership (NJ)

Farmwell Hunt, L.P. (VA)

First Brandywine Partners, L.P. (DE)

Franklin Oaks Limited Partnership (MA)

Great Falls Hunt, L.P. (VA)

Great Falls Woods, L.P. (VA)

Greens at Waynesborough, L.P. (PA)

Greenwich Chase, L.P. (NJ)

Greenwich Station, L.P. (NJ)

Hoboken Land LP (NJ)

Hockessin Chase, L.P. (DE)

Holland Ridge, L.P. (NJ)

Holliston Hunt Limited Partnership (MA)

Hopewell Hunt, L.P. (NJ)

Huckins Farm Limited Partnership (MA)

Hunter Mill, L.P. (VA)

Hunterdon Chase, L.P. (NJ)

Hunterdon Ridge, L.P. (NJ)

Huntington Estates Limited Partnership (CT)

Hurley Ridge Limited Partnership (MD)

Kensington Woods Limited Partnership (MA)

Laurel Creek, L.P. (NJ)

Loudoun Valley Associates, L.P. (VA)

Manalapan Hunt, L.P. (NJ)

Mill Road Estates, L.P. (PA)

Montgomery Chase, L.P. (NJ)

Moorestown Hunt, L.P. (NJ)

Mount Kisco Chase, L.P. (NY)

NC Country Club Estates Limited Partnership (NC)

Newtown Chase Limited Partnership (CT)

 

 

Northampton Preserve, L.P. (PA)

Patriots, L.P. (NJ)

Preston Village Limited Partnership (NC)

Princeton Hunt, L.P. (NJ)

Providence Plantation Limited Partnership (NC)

Regency at Dominion Valley, L.P. (VA)

River Crossing, L.P. (PA)

Rolling Greens, L.P. (NJ)

Rose Hollow Crossing Associates (PA)

Seaside Estates Limited Partnership (FL)

Shrewsbury Hunt Limited Partnership (MA)

Silverman-Toll Limited Partnership (MI)

Somers Chase, L.P. (NY)

Somerset Development Limited Partnership (NC)

Sorrento at Dublin Ranch I LP (CA)

Sorrento at Dublin Ranch II LP (CA)

Sorrento at Dublin Ranch III LP (CA)

South Riding, L.P. (VA)

South Riding Amberlea LP (VA)

South Riding Partners Amberlea LP (VA)

South Riding Partners, L.P. (VA)

Southport Landing Limited Partnership (CT)

Springton Pointe, L.P. (PA)

Stone Mill Estates, L.P. (PA)

Swedesford Chase, L.P. (PA)

TB Proprietary, L.P. (DE)

TBI/Heron Bay Limited Partnership (FL)

TBI/Naples Limited Partnership (FL)

TBI/Palm Beach Limited Partnership (FL)

The Bird Estate Limited Partnership (MA)

The Estates at Brooke Manor Limited Partnership (MD)

The Estates at Summit Chase, L.P. (CA)

The Preserve at Annapolis Limited Partnership (MD)

The Preserve at Boca Raton Limited Partnership (FL)

The Woods at Highland Lakes, L.P. (OH)

The Woods at Long Valley, L.P. (NJ)

Timber Ridge Investment Limited Partnership (MI)

Toll at Brier Creek Limited Partnership (NC)

Toll at Daventry Park, L.P. (OH)

Toll at Honey Creek Limited Partnership (MI)

Toll at Payne Ranch, L.P. (CA)

Toll at Princeton Walk, L.P. (NJ)

Toll at Westlake, L.P. (NJ)

Toll at Whippoorwill, L.P. (NY)

Toll Brooklyn L.P (NY)

Toll Bros. of Tennessee, L.P. (TN)

Toll Brothers AZ Limited Partnership (AZ)

Toll Brothers Maryland II Limited Partnership (MD)

Toll CA II, L.P. (CA)

Toll CA III, L.P. (CA)

Toll CA IV, L.P. (CA)

Toll CA V, L.P. (CA)

Toll CA VI, L.P. (CA)

Toll CA VII, L.P. (CA)

Toll CA VIII, L.P. (CA)

Toll CA IX, L.P. (CA)

Toll CA X, L.P. (CA)

Toll CA XI, L.P. (CA)

Toll CA XII, L.P. (CA)

Toll CA XIII, L.P. (CA)

Toll CA XIV, L.P. (CA)

Toll CA XIX, L.P. (CA)

Toll CA XV, L.P. (CA)

Toll CA XVI, L.P. (CA)

Toll CA XVII, L.P. (CA)

Toll CA XVIII, L.P. (CA)

Toll CA, L.P. (CA)

Toll Cliffs Urban Renewal Company LP (NJ)

Toll CO, L.P. (CO)

Toll Costa, L.P. (CA)

Toll CT II Limited Partnership (CT)

Toll CT Limited Partnership (CT)

Toll CT Westport Limited Partnership (CT)

Toll DE LP (DE)

C.B.A.Z. Holding Company LLC (DE)

Toll East Naples Limited Partnership (FL)

Toll Estero Limited Partnership (FL)

Toll FL II Limited Partnership (FL)

Toll FL III Limited Partnership (FL)

Toll FL IV Limited Partnership (FL)

Toll FL Limited Partnership (FL)

Toll FL V Limited Partnership (FL)

Toll FL VI Limited Partnership (FL)

Toll FL VII Limited Partnership (FL)

Toll FL VIII Limited Partnership (FL

Toll Ft. Myers Limited Partnership (FL)

Toll GA LP (GA)

Toll Grove LP (NJ)

Toll Hudson LP (NJ)

Toll IL HWCC, L.P. (IL)

Toll IL II, L.P. (IL)

Toll IL III, L.P. (IL)

Toll IL IV, L.P. (IL)

Toll IL WSB, L.P. (IL)

Toll IL, L.P. (IL)

Toll Jacksonville Limited Partnership (FL)

Toll Land IV Limited Partnership (NJ)

Toll Land IX Limited Partnership (VA)

Toll Land Limited Partnership (CT)

Toll Land V Limited Partnership (NY)

Toll Land VI Limited Partnership (NY)

Toll Land VII Limited Partnership (NY)

Toll Land X Limited Partnership (VA)

Toll Land XI Limited Partnership (NJ)

Toll Land XIV Limited Partnership (NY)

Toll Land XIX Limited Partnership (CA)

Toll Land XV Limited Partnership (VA)

Toll Land XVI Limited Partnership (NJ)

Toll Land XVII Limited Partnership (CT)

Toll Land XVIII Limited Partnership (CT)

Toll Land XX Limited Partnership (CA)

Toll Land XXI Limited Partnership (VA)

Toll Land XXII Limited Partnership (CA)

Toll Land XXIII Limited Partnership (CA)

Toll Land XXV Limited Partnership (NJ)

Toll Land XXVI Limited Partnership (OH)

Toll Livingston at Naples Limited Partnership (FL)

Toll MA Land Limited Partnership (MA)

Toll Marshall LP (NJ)

Toll MD Builder I, L.P. (MD)

Toll MD Limited Partnership (MD)

Toll MD V Limited Partnership (MD)

Toll MD VI Limited Partnership (MD)

Toll MD VII Limited Partnership (MD)

Toll MD II Limited Partnership (MD)

Toll MD III Limited Partnership (MD)

Toll MD IV Limited Partnership (MD)

Toll MD IX Limited Partnership (MD)

Toll MD VIII Limited Partnership (MD)

Toll MD X Limited Partnership (MD)

Toll MI II Limited Partnership (MI)

Toll MI III Limited Partnership (MI

Toll MI IV Limited Partnership (MI)

Toll MI Limited Partnership (MI)

Toll MI V Limited Partnership (MI)

Toll MN II, L.P. (MN)

Toll MN, L.P. (MN)

Toll Naval Associates (PA)

Toll NC II L.P. (NC)

Toll NC, L.P. (NC)

Toll NH Limited Partnership (NH)

Toll NJ Builder I, L.P. (NJ)

Toll NJ II, L.P. (NJ)

Toll NJ III, L.P. (NJ)

Toll NJ IV, L.P. (NJ)

Toll NJ V, L.P. (NJ)

Toll NJ VI, L.P. (NJ)

Toll NJ VII, L.P. (NJ)

Toll NJ VIII, L.P. (NJ)

Toll NJ XI, L.P. (NJ)

Toll NJ, L.P. (NJ)

Toll Northville Golf Limited Partnership (MI)

Toll Northville Limited Partnership (MI)

Toll NV Limited Partnership (NV)

Toll NY LP (NY)

Toll Orlando Limited Partnership (FL)

Toll PA II, L.P. (PA)

Toll PA III, L.P. (PA)

Toll PA IV, L.P. (PA)

Toll PA IX, L.P. (PA)

Toll PA V, L.P. (PA)

Toll PA VI, L.P. (PA)

Toll PA VII, L.P. (PA)

Toll PA VIII, L.P. (PA)

Toll PA X, L.P. (PA)

Toll PA XI, L.P. (PA)

Toll PA XII, L.P. (PA)

Toll PA XIII, L.P. (PA)

Toll PA, L.P. (PA)

Toll Park LP (NJ)

Toll Realty Holdings LP (DE)

Toll Reston Associates, L.P. (DE)

Toll RI II, L.P. (RI)

Toll RI, L.P. (RI)

Toll SC II, L.P. (SC)

Toll SC III, L.P. (SC)

Toll SC, L.P. (SC)

Toll Stonebrae LP (CA)

Toll VA II, L.P. (VA)

Toll VA III, L.P. (VA)

Toll VA IV, L.P. (VA)

Toll VA V, L.P. (VA)

Toll VA VI, L.P. (VA)

Toll VA VII, L.P. (VA)

Toll VA, L.P. (VA)

Toll WV LP (WV)

Toll YL II, L.P. (CA)

Toll YL, L.P. (CA)

Toll-Dublin, L.P. (CA)

Trumbull Hunt Limited Partnership (CT)

Uwchlan Woods, L.P. (PA)

Valley Forge Conservation Holding, L.P. (PA)

Valley Forge Woods, L.P. (PA)

Valley View Estates Limited Partnership (MA)

Village Partners, L.P. (PA)

Washington Greene Development, L.P. (NJ)

Waterford Preserve LP (VA)

West Amwell Limited Partnership (NJ)

Whiteland Woods, L.P. (PA)

Willowdale Crossing, L.P. (PA)

Wilson Concord, L.P. (TN)

110-112 Third Ave. GC II LLC (NY)

110-112 Third Ave. GC LLC (NY)

1500 Garden St. LLC (NJ)

2301 Fallston Road LLC (MD)

5-01 — 5-17 48th Avenue GC II LLC (NY)

5-01 — 5-17 48th Avenue GC LLC (NY)

5-01 — 5-17 48th Avenue II LLC (NY)

5-01 — 5-17 48th Avenue LLC (NY)

51 N. 8th Street GC II LLC (NY)

51 N. 8th Street GC LLC (NY)

51 N. 8th Street I LLC (NY)

60 Industrial Parkway Cheektowaga, LLC (NY)

700 Grove Street Urban Renewal, LLC (NJ)

Arbor Hills Development LLC (MI)

Arthur’s Woods, LLC (MD)

Arundel Preserve #10a, LLC (MD)

Arundel Preserve #6, LLC (MD)

Belmont Country Club I LLC (VA)

Belmont Country Club II LLC (VA)

Big Branch Overlook L.L.C. (MD)

Block 255 LLC (NJ)

Brier Creek Country Club I LLC (NC)

Brier Creek Country Club II LLC (NC)

C.B.A.Z. Construction Company LLC (AZ)

2

 

Colonial 40 I, LLC (FL)

Colonial 40 II, LLC (FL)

Component Systems I LLC (DE)

Component Systems II LLC (DE)

Creeks Farm L.L.C. (MD)

CWG Construction Company LLC (NJ)

Dominion Valley Country Club I LLC (VA)

Dominion Valley Country Club II LLC (VA)

Feys Property LLC (MD)

First Brandywine LLC I (DE)

First Brandywine LLC II (DE)

First Brandywine LLC III (DE)

First Brandywine LLC IV (DE)

Frenchman’s Reserve Realty, LLC (FL)

Golf I Country Club Estates at Moorpark LLC (CA)

Golf II Country Club Estates at Moorpark LLC (CA)

Hawthorn Woods Country Club II LLC (IL)

High Pointe at Hopewell, LLC (NJ)

Hoboken Cove LLC (NJ)

Hoboken Land I LLC (DE)

Hunts Bluff LLC (MD)

Jacksonville TBI Realty LLC (FL)

Lighthouse Point Land Company, LLC (FL)

Long Meadows TBI, LLC (MD)

Longmeadow Properties LLC (MD)

Martinsburg Ventures, L.L.C. (VA)

Mizner Realty, L.L.C. (FL)

Naples Lakes Country Club, L.L.C. (FL)

Naples TBI Realty, LLC (FL)

Orlando TBI Realty LLC (FL)

Palm Cove Golf & Yacht Club I LLC (FL)

Palm Cove Golf & Yacht Club II LLC (FL)

Palm Cove Marina I LLC (FL)

Palm Cove Marina II LLC (FL)

Paramount Village LLC (CA)

Phillips Drive LLC (MD)

Prince William Land I LLC (VA)

Prince William Land II LLC(VA)

Regency at Denville LLC (NJ)

Regency at Dominion Valley LLC (VA)

Regency at Long Valley I LLC (NJ)

Regency at Long Valley II LLC (NJ)

Regency at Mansfield I LLC (NJ)

Regency at Mansfield II LLC (NJ)

Regency at Washington I LLC (NJ)

Regency at Washington II LLC (NJ)

Sapling Ridge, LLC (MD)

South Riding Realty LLC (VA)

SR Amberlea LLC (VA)

SRLP II LLC (VA)

Tampa TBI Realty LLC (FL)

TB Kent Partners LLC (DE)

The Regency Golf Club I LLC (VA)

The Regency Golf Club II LLC (VA)

The Ridges at Belmont Country Club I LLC (VA)

The Ridges at Belmont Country Club II LLC (VA)

Toll Austin TX LLC (TX)

Toll Cedar Hunt LLC (VA)

Toll CO I LLC (CO)

Toll Corners LLC (DE)

Toll Dallas TX LLC (TX)

Toll DE X II, LLC (DE)

Toll DE X, LLC (DE)

Toll EB, LLC (DE)

Toll Equipment, L.L.C. (DE)

Toll FL I, LLC (FL)

Toll Glastonbury LLC (CT)

Toll Henderson LLC (NV)

Toll Hoboken LLC (DE)

Toll IN LLC (IN)

Toll Jupiter LLC (FL)

Toll Locust Hill LLC (MD)

Toll MD I, L.L.C. (MD)

Toll MD II LLC (MD)

Toll Morgan Street LLC (DE)

Toll NJ I, L.L.C. (NJ)

Toll NJ II, L.L.C. (NJ)

Toll NJ III, LLC (NJ)

Toll North LV LLC (NV)

Toll North Reno LLC (NV)

Toll NV Holdings LLC (NV)

Toll Realty L.L.C. (FL)

Toll Reston Associates, L.L.C. (DE)

Toll San Antonio TX LLC (TX)

Toll South LV LLC (NV)

Toll South Reno LLC (NV)

Toll Stratford LLC (VA)

Toll VA III L.L.C. (VA)

Toll VA L.L.C. (DE)

Toll Van Wyck, LLC (NY)

Toll Vanderbilt I LLC (RI)

Toll Vanderbilt II LLC (RI)

Toll-Dublin, LLC (CA)

Vanderbilt Capital LLC (RI)

Virginia Construction Co. I, LLC (VA)

Virginia Construction Co. II, LLC (VA)

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Exhibit A

			
	 	 	 
	No.
	 	CUSIP No.:                     

[Title of Security]

TOLL BROTHERS FINANCE CORP.

a Delaware corporation

	 	 	 
	promises to pay to
	 	 
	 
	 	 
	or registered assigns the principal sum of

	 	[Dollars] 1 on

	 	 	 
	[Title of Security]
	 	 
	Interest Payment Dates:

	 	and
	Record Dates:

	 	and
	 
	 	 
	Authenticated:

	 	Dated:

	 	 	 	 	 
	 	TOLL BROTHERS FINANCE CORP.

[Seal]

 	 
	 	By 	 	
 	 
	 	 	 	Title: 	 
	 	 	 
	 
	 	 	 
	 	By 	 	
 	 
	 	 	 	Title: 	 
	 	 	 
	 

THE BANK OF NEW YORK MELLON, as Trustee, certifies that this is one of the Securities referred to
in the within mentioned Indenture.

	 	 	 	 	 
	 	 	 
	By: 	
 	 	 	 
	 	Authorized Signatory 	 	 	 
	 	 	 
	 

 

			
	1	 	Or other currency. Insert corresponding provisions on
reverse side of Security in respect of foreign currency denomination or
interest payment requirement.

 

 

TOLL BROTHERS FINANCE CORP.

[Title of Security], Series A

1. Interest.

     TOLL BROTHERS FINANCE CORP. (the “Issuer”), a Delaware corporation, promises to pay interest
on the principal amount of this Security at the rate per annum shown above. The Issuer will pay
interest semiannually on                                          and __________________ of each year,
commencing on
                                        , until the principal is paid or made available for payment. Interest on the
Securities 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                                         , 20 , provided that, if there is no
existing Default in the payment of interest and if this Security 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 Issuer will pay interest on the Securities (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 Issuer) to the Persons who are registered Holders of Securities at the close of
business on the [Insert Record Dates] (capitalized terms not defined herein have the meanings given
to those terms in the Indenture). Holders must surrender Securities to a Paying Agent to collect
principal payments. The Issuer 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, The Bank of New York Mellon (the “Trustee”) will act as Paying Agent and Registrar.
The Issuer may change or appoint any Paying Agent, Registrar or co-Registrar without notice. Toll
Brothers, Inc. (the “Company”) or any of its Subsidiaries or any of their Affiliates may act as
Paying Agent, Registrar or co-Registrar.

4. Indenture.

     The Issuer issued the Securities under an Indenture dated as of April 20, 2009 (“Indenture”),
among the Issuer, the Company, the other Guarantors and the Trustee. The terms of the Securities
and the Guarantee include those stated in the Indenture (including those terms set forth in the
Authorizing Resolution or supplemental indenture pertaining to the Securities of the Series of
which this Security is a part) 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 Securities and the
Guarantee are subject to all such terms, and Holders are referred to the Indenture and the TIA for
a statement of them.

     The Issuer will furnish to any Holder upon written request and without charge a copy of the
Indenture and the applicable Authorizing Resolutions or supplemental indenture. Requests
may be made to: Toll Brothers Finance Corp., c/o Toll Brothers, Inc., 250 Gibraltar Road,
Horsham, Pennsylvania 19044, Attention: Chief Financial Officer.

5

 

5. Optional Redemption.2

     The Issuer may redeem the Securities at any time on or after                                         ,
_______, in whole or
in part, at the following redemption prices (expressed as a percentage of their principal amount)
together with interest accrued and unpaid to the date fixed for redemption:

If redeemed during the twelve-month period commencing on                                         
and ending on                                          in each of the following years Percentage

[Insert provisions relating to redemption at option of Holders, if any]

     If less than all the Securities are to be redeemed, the Trustee shall select the Securities to
be redeemed, if the Securities are listed on a national securities exchange, in accordance with the
rules of such exchange, or if the Securities are not so listed, on either a pro rata basis or by
lot or by such method as the Trustee shall deem fair and appropriate. The Trustee shall make the
selection from Securities outstanding and not previously called for redemption. Securities in
denominations of $2,000 may only be redeemed in whole. The Trustee may select for redemption
portions (equal to $2,000 or any integral multiple of $1,000 thereof) of the principal of
Securities that have denominations larger than $2,000. Notice of redemption will be mailed at
least 30 days but not more than 60 days before the redemption date to each Holder whose Securities
are to be redeemed at the registered address of such Holder. On and after the redemption dates
interest ceases to accrue on the Securities or portions thereof called for redemption, provided
that if the Issuer shall default in the payment of such Securities at the redemption price together
with accrued interest, interest shall continue to accrue at the rate borne by the Securities.

6. Mandatory Redemption.3

     The Issuer shall redeem ___% of the aggregate principal amount of Securities originally issued
under the Indenture on each of                     , which redemptions are calculated to retire ___% of the
Securities originally issued prior to maturity. Such redemptions shall be made at a redemption
price equal to 100% of the principal amount thereof, together with accrued interest to the
redemption date. The Issuer may reduce the principal amount of Securities to be redeemed pursuant
to this Paragraph 6 by the principal amount of any Securities previously redeemed, retired or
acquired, otherwise than pursuant to this Paragraph 6, that the Issuer has delivered to the Trustee
for cancellation and not previously credited to the Issuer’s obligations under this Paragraph 6.
Each such Security shall be received and credited for such purpose by the Trustee at the redemption
price and the amount of such mandatory redemption payment shall be reduced accordingly.

 

			
	2	 	If applicable.
	 
	3	 	If applicable.

6

 

7. Denominations, Transfer, Exchange.

     The Securities are in registered form only without coupons in denominations of
$2,0004 and integral multiples of $1,000 thereof. A Holder may transfer or exchange
Securities by presentation of such Securities to the Registrar or a co-Registrar with a request to
register the transfer or to exchange them for an equal principal amount of Securities 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 Security selected for redemption,
except the unredeemed part thereof if the Security is redeemed in part, or transfer or exchange any
Securities for a period of 15 days before a selection of Securities to be redeemed.

8. Persons Deemed Owners.

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

9. 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 Issuer at its request. After that, Holders entitled
to the money must look to the Issuer for payment unless an abandoned property law designates
another Person.

10. Amendment, Supplement, Waiver.

     Subject to certain exceptions, the Indenture, the Guarantee or the Securities may be amended
or supplemented by the Issuer with the consent of the Holders of at least a majority in principal
amount of the outstanding Securities and any past default or compliance with any provision relating
to the Securities may be waived in a particular instance with the consent of the Holders of a
majority in principal amount of the outstanding Securities. Without the consent of any Holder, the
Issuer may amend or supplement the Indenture, the Guarantee or the Securities to cure any
ambiguity, omission, defect or inconsistency, (provided such action does not adversely affect the
rights of the Holders), to evidence the succession of another Person to the Issuer or any
Guarantor, to add covenants of the Issuer or of the Guarantors under Article Four of the Indenture
for the benefit of the Holders or to surrender rights or powers conferred upon the Issuer or the
Guarantors by the Indenture, to add Events of Default for the benefit of the Holders, to change or
eliminate any provisions of the Indenture, (provided such change or elimination shall become
effective only when none of the Securities are outstanding), to add Guarantors, to provide for the
acceptance of appointment by a successor Trustee or facilitate the administration of the trusts
under the Indenture by more than one Trustee, to close the Indenture as to authentication and
delivery of additional Securities, to supplement Indenture provisions to permit or facilitate
defeasance and discharge of the Securities, (provided such action does not adversely affect the
rights of the Holders), to provide that specific Indenture provisions shall not apply to an
unissued Series of Securities, to provide for uncertificated Securities in addition to or in place
of certificated Securities, to create a Series and establish its terms, to remove a Guarantor,
other

 

			
	4	 	If applicable. Insert different or additional
denominations and multiples.

7

 

than the Company, which, in accordance with the terms of the Indenture, ceases to be liable in
respect of the Guarantee, or to make any other change, (provided such action does not adversely
affect the rights of any Holder).

11. Trustee Dealings With Company.

     The Bank of New York Mellon, 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 Issuer shall not have any
liability for any obligations of the Issuer under the Securities 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 Security waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

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

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).

8

 

ASSIGNMENT FORM

     If you the Holder want to assign this Security, fill in the form below: I or we assign and
transfer this Security 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 Security on the books of the Issuer. The agent may
substitute another to act for him.

	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Your signature: (Sign exactly as your name
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	appears on the other side of this Security)

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.

[FORM OF NOTATION ON SECURITY RELATING TO GUARANTEE]

GUARANTEE

     The Guarantors listed on Schedule I, attached hereto (the “Guarantors”), have unconditionally
guaranteed, jointly and severally on a senior basis (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 Securities, whether at maturity, by acceleration or otherwise, the due and punctual
payment of interest on the overdue principal and interest, if any, on the Securities, to the extent
lawful, and the due and punctual performance of all other obligations of the Issuer to the Holders
or the Trustee all in accordance with the terms set forth in Article Nine of the Indenture and (ii)
in case of any extension of time of payment or renewal of any Securities 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, partner, member, officer, director, manager, general partner,
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, partner, member, officer, director,
manager, general partner, employee or incorporator. Each holder of a Security by accepting a
Security waives and releases all such liability. This waiver and release are part of the
consideration for the issuance of the Guarantee. Each holder of a Security by accepting a Security
agrees that any Guarantor other than Toll Brothers, Inc. (the “Company”) shall have no further
liability with respect to its Guarantee if such Guarantor

9

 

otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the
Indenture. 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 Indenture by the manual signature of one of its authorized officers.

	 	 	 	 	 
	 	TOLL BROTHERS, INC.

 	 
	 	By:  	
 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	THE GUARANTORS LISTED ON 

SCHEDULE I, ATTACHED HERETO

 	 
	 	By:  	
 	 
	 	 	Title: 	 	 
	 	 	 	 
	 

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