Document:

INDENTURE

 

Exhibit 4.1

LENNAR CORPORATION

as Issuer,

the GUARANTORS

party hereto

and

J.P. MORGAN TRUST COMPANY, N.A.

as Trustee

INDENTURE

Dated as of August 12, 2004

5.50% Senior Notes due 2014, Series A

5.50% Senior Notes due 2014, Series B

 

 

CROSS REFERENCE TABLE

	 	 	 
	TIA Section
	 	Indenture Section

	310(a)(1) 
	 	7.10
	(a)(2) 
	 	7.10
	(a)(3) 
	 	N.A.
	(a)(4) 
	 	N.A.
	(a)(5) 
	 	7.10
	(b)
	 	7.8; 7.10; 11.2
	(c)
	 	N.A.
	311(a) 
	 	7.11
	((b) 
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.5
	(b)
	 	11.3
	(c)
	 	11.3
	313(a) 
	 	7.6
	(b)(1) 
	 	N.A.
	(b)(2) 
	 	7.6
	(c)
	 	7.6; 11.2
	(d)
	 	7.6
	314(a)
	 	4.6; 4.8; 11.2
	(b)
	 	N.A.
	(c)(1) 
	 	7.2; 11.4
	(c)(2) 
	 	7.2; 11.4
	(c)(3) 
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	11.5
	(f)
	 	N.A.
	315(a)
	 	7.1(b)
	(b)
	 	7.5; 11.2
	(c)
	 	7.1(a)
	(d)
	 	6.5; 7.1(c)
	(e)
	 	6.11
	316(last sentence) 
	 	2.9
	(a)(1)(A) 
	 	6.5
	(a)(1)(B) 
	 	6.4
	(a)(2) 
	 	N.A.
	(b)
	 	6.7
	(c)
	 	9.4
	317(a)(1) 
	 	6.8
	(a)(2) 
	 	6.9
	(b)
	 	2.4
	318(a)
	 	11.1
	(c)
	 	11.1

N.A. means Not Applicable.
 

Note:    This cross-reference table shall not, for any purpose, be deemed to be a part of the Indenture.

(i)

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE I
	DEFINITIONS AND INCORPORATION BY REFERENCE
	Section 1.1. Definitions
	 	 	1	 	 	 	 	 
	Section 1.2. Incorporation by Reference of TIA
	 	 	9	 	 	 	 	 
	Section 1.3. Rules of Construction
	 	 	9	 	 	 	 	 
	ARTICLE II
	THE NOTES
	Section 2.1. Form and Dating
	 	 	10	 	 	 	 	 
	Section 2.2. Execution and Authentication; Aggregate Principal Amount
	 	 	10	 	 	 	 	 
	Section 2.3. Registrar and Paying Agent
	 	 	11	 	 	 	 	 
	Section 2.4. Paying Agent to Hold Assets in Trust
	 	 	12	 	 	 	 	 
	Section 2.5. Holder Lists 
	 	 	12	 	 	 	 	 
	Section 2.6. Transfer and Exchange
	 	 	12	 	 	 	 	 
	Section 2.7. Replacement Notes
	 	 	13	 	 	 	 	 
	Section 2.8. Outstanding Notes
	 	 	13	 	 	 	 	 
	Section 2.9. Treasury Notes
	 	 	13	 	 	 	 	 
	Section 2.10. Temporary Notes
	 	 	14	 	 	 	 	 
	Section 2.11. Cancellation
	 	 	14	 	 	 	 	 
	Section 2.12. Defaulted Interest
	 	 	14	 	 	 	 	 
	Section 2.13. CUSIP Number
	 	 	15	 	 	 	 	 
	Section 2.14. Deposit of Monies
	 	 	15	 	 	 	 	 
	Section 2.15. Restrictive Legends
	 	 	15	 	 	 	 	 
	Section 2.16. Book-Entry Provisions for Global Security
	 	 	16	 	 	 	 	 
	Section 2.17. Special Transfer Provisions
	 	 	17	 	 	 	 	 

(ii)

 

	 	 	 	 	 	 	 	 	 
	Section 2.18. Additional Interest Under Registration Rights Agreement
	 	 	19	 	 	 	 	 
	ARTICLE III
	REDEMPTION
	Section 3.1. Optional Redemption by the Company
	 	 	19	 	 	 	 	 
	ARTICLE IV
	COVENANTS
	Section 4.1. Payment of Notes
	 	 	20	 	 	 	 	 
	Section 4.2. Reporting
	 	 	21	 	 	 	 	 
	Section 4.3. Corporate Existence
	 	 	21	 	 	 	 	 
	Section 4.4. Compliance Certificate
	 	 	21	 	 	 	 	 
	Section 4.5. Further Instruments and Acts
	 	 	21	 	 	 	 	 
	Section 4.6. Limitations on Liens
	 	 	21	 	 	 	 	 
	Section 4.7. Sale-Leaseback Transactions
	 	 	24	 	 	 	 	 
	Section 4.8. Furnishing Guarantees
	 	 	24	 	 	 	 	 
	ARTICLE V
	SUCCESSOR CORPORATION
	Section 5.1. Company May Consolidate, etc., Only on Certain Terms
	 	 	25	 	 	 	 	 
	Section 5.2. Successor Corporation Substituted
	 	 	25	 	 	 	 	 
	ARTICLE VI
	DEFAULTS AND REMEDIES
	Section 6.1. Events of Default
	 	 	26	 	 	 	 	 
	Section 6.2. Acceleration of Maturity; Rescission and Annulment
	 	 	27	 	 	 	 	 
	Section 6.3. Other Remedies
	 	 	28	 	 	 	 	 
	Section 6.4. Waiver of Existing Defaults
	 	 	28	 	 	 	 	 
	Section 6.5. Control by Majority
	 	 	28	 	 	 	 	 

(iii)

 

	 	 	 	 	 	 	 	 	 
	Section 6.6. Payments of Notes on Default; Suit Therefor
	 	 	28	 	 	 	 	 
	Section 6.7. Limitation on Suits
	 	 	29	 	 	 	 	 
	Section 6.8. Collection Suit by Trustee
	 	 	29	 	 	 	 	 
	Section 6.9. Trustee May File Proofs of Claim
	 	 	29	 	 	 	 	 
	Section 6.10. Restoration of Positions
	 	 	30	 	 	 	 	 
	Section 6.11. Priorities
	 	 	30	 	 	 	 	 
	Section 6.12. Undertaking for Costs
	 	 	30	 	 	 	 	 
	Section 6.13. Stay, Extension or Usury Laws
	 	 	30	 	 	 	 	 
	Section 6.14. Liability of Stockholders, Officers, Directors and Incorporators
	 	 	31	 	 	 	 	 
	ARTICLE VII
	TRUSTEE
	Section 7.1. Duties of Trustee
	 	 	31	 	 	 	 	 
	Section 7.2. Rights of Trustee
	 	 	32	 	 	 	 	 
	Section 7.3. Individual Rights of Trustee
	 	 	32	 	 	 	 	 
	Section 7.4. Trustee’s Disclaimer
	 	 	33	 	 	 	 	 
	Section 7.5. Notice of Defaults
	 	 	33	 	 	 	 	 
	Section 7.6. Reports by Trustee
	 	 	33	 	 	 	 	 
	Section 7.7. Compensation and Indemnity
	 	 	33	 	 	 	 	 
	Section 7.8. Replacement of Trustee
	 	 	34	 	 	 	 	 
	Section 7.9. Successor Trustee by Merger, etc
	 	 	35	 	 	 	 	 
	Section 7.10. Eligibility; Disqualification
	 	 	35	 	 	 	 	 
	Section 7.11. Preferential Collection of Claims
	 	 	35	 	 	 	 	 
	ARTICLE VIII
	DISCHARGE OF INDENTURE
	 	 	35	 	 	 	 	 
	Section 8.1. Termination of the Company’s Obligations
	 	 	35	 	 	 	 	 

(iv)

 

	 	 	 	 	 	 	 	 	 
	Section 8.2. Application of Trust Money. Subject to Section 8.4, the Trustee will hold in trust money or
U.S. Government Obligations deposited with it pursuant to Section 8.1
	 	 	36	 	 	 	 	 
	Section 8.3. Officers’ Certificate; Opinion of Counsel
	 	 	36	 	 	 	 	 
	Section 8.4. Repayment to the Company. The Trustee and the Paying Agent will promptly pay to the Company
upon request any excess money or securities held by them at any time
	 	 	36	 	 	 	 	 
	Section 8.5. Reinstatement
	 	 	36	 	 	 	 	 
	ARTICLE IX
	MODIFICATION OF THE INDENTURE
	Section 9.1. Without Consent of Holders
	 	 	37	 	 	 	 	 
	Section 9.2. With Consent of Holders. The Company and the Trustee may amend or supplement this Indenture
or the Notes without notice to any Holder but with the written consent of the Holders of a majority in
aggregate principal amount of the Notes then outstanding
	 	 	37	 	 	 	 	 
	ARTICLE X
	
GUARANTEE OF NOTES
	Section 10.1. Unconditional Guarantee
	 	 	38	 	 	 	 	 
	Section 10.2. Limitations on Guarantees; Release or Suspension of Particular Guarantors’ Obligations
	 	 	39	 	 	 	 	 
	Section 10.3. Execution and Delivery of Guarantee
	 	 	40	 	 	 	 	 
	Section 10.4. Release of a Guarantor due to Extraordinary Events
	 	 	40	 	 	 	 	 
	Section 10.5. Waiver of Subrogation
	 	 	41	 	 	 	 	 
	Section 10.6. No Set-Off 
	 	 	41	 	 	 	 	 
	Section 10.7. Obligations Absolute
	 	 	41	 	 	 	 	 
	Section 10.8. Obligations Continuing
	 	 	41	 	 	 	 	 
	Section 10.9. Obligations Not Reduced
	 	 	42	 	 	 	 	 
	Section 10.10. Obligations Reinstated
	 	 	42	 	 	 	 	 
	Section 10.11. Obligations Not Affected
	 	 	42	 	 	 	 	 
	Section 10.12. Waiver
	 	 	43	 	 	 	 	 
	Section 10.13. No Obligation to Take Action Against the Company
	 	 	43	 	 	 	 	 
	Section 10.14. Dealing with the Company and Others
	 	 	43	 	 	 	 	 

(v)

 

	 	 	 	 	 	 	 	 	 
	Section 10.15. Default and Enforcement
	 	 	44	 	 	 	 	 
	Section 10.16. Amendment, Etc
	 	 	44	 	 	 	 	 
	Section 10.17. Acknowledgment
	 	 	44	 	 	 	 	 
	Section 10.18. Costs and Expenses
	 	 	44	 	 	 	 	 
	Section 10.19. No Merger or Waiver; Cumulative Remedies
	 	 	44	 	 	 	 	 
	Section 10.20. Survival of Obligations
	 	 	45	 	 	 	 	 
	Section 10.21. Guarantee in Addition to Other Obligations
	 	 	45	 	 	 	 	 
	Section 10.22. Severability
	 	 	45	 	 	 	 	 
	Section 10.23. Successors and Assigns
	 	 	45	 	 	 	 	 
	Section 10.24. Acknowledgement under TIA
	 	 	45	 	 	 	 	 
	
ARTICLE XI
	
MISCELLANEOUS
	Section 11.1. TIA Controls
	 	 	45	 	 	 	 	 
	Section 11.2. Notices
	 	 	45	 	 	 	 	 
	Section 11.3. Communications by Holders with Other Holders
	 	 	46	 	 	 	 	 
	Section 11.4. Certificate and Opinion as to Conditions Precedent
	 	 	46	 	 	 	 	 
	Section 11.5. Statements Required in Certificate or Opinion
	 	 	47	 	 	 	 	 
	Section 11.6. Rules by Trustee, Paying Agent, Registrar
	 	 	47	 	 	 	 	 
	Section 11.7. Legal Holidays
	 	 	47	 	 	 	 	 
	Section 11.8. Governing Law
	 	 	47	 	 	 	 	 
	Section 11.9. No Adverse Interpretation of Other Agreements
	 	 	48	 	 	 	 	 
	Section 11.10. No Personal Liability
	 	 	48	 	 	 	 	 
	Section 11.11. Successors
	 	 	48	 	 	 	 	 
	Section 11.12. Duplicate Originals
	 	 	48	 	 	 	 	 
	Section 11.13. Severability
	 	 	48	 	 	 	 	 

(vi)

 

          INDENTURE, dated as of August 12, 2004, between Lennar Corporation, a
Delaware corporation (the “Company”), each of the Guarantors party hereto and
J.P. Morgan Trust Company, as Trustee (the “Trustee”).

          The Company has duly authorized the creation of an issue of its 5.50%
Senior Notes due 2014, Series A, and its 5.50% Senior Notes due 2014, Series B,
to be issued in exchange for the 5.50% Senior Notes due 2014, Series A,
pursuant to the Registration Rights Agreement (as defined herein) and, to
provide therefor, the Company has duly authorized the execution and delivery of
this Indenture. All things necessary to make the Notes (as defined), when duly
issued and executed by the Company, and authenticated and delivered hereunder,
the valid obligations of the Company, and to make this Indenture a valid and
binding agreement of the Company, have been done.

          Each party hereto agrees as follows for the benefit of the other parties
and for the equal and ratable benefit of the Holders (as defined) of the
Company’s 5.50% Senior Notes due 2014, Series A and Series B.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1. Definitions.

          “Additional Interest” shall have the meaning set forth in the Registration
Rights Agreement.

          “Affiliate” of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
“control” when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

          “Agent” means any Registrar, Paying Agent or co-Registrar.

          “Agent Members” has the meaning provided in Section 2.16.

          “Authenticating Agent” has the meaning provided in Section 2.2.

          “Bankruptcy Law” has the meaning provided in Section 6.1.

          “Board Resolution” means a resolution by the Board of Directors or
Executive Committee of the Company certified by its Secretary or an Assistant
Secretary as being duly adopted and in full force and effect.

          “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a Legal Holiday in New York, New York.

-1-

 

          “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 Issue Date.

          “Common Stock” means the common stock, par value $.10 per share, of the
Company, as that stock may be reconstituted from time to time, except that
“Common Stock” will not include the Company’s Class B Common Stock.

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

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

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

	 	(A)	 	all short-term liabilities, i.e., liabilities
payable by their terms less than one year from the date of
determination and not renewable or extendable at the option of
the obligor for a period ending more than one year after such
date, and liabilities in respect of retiree benefits other
than pensions for which the Restricted Subsidiaries are
required to accrue pursuant to Statement of Financial
Accounting Standards No. 106;
	 
	 	(B)	 	investments in Subsidiaries that are not
Restricted Subsidiaries; and
	 
	 	(C)	 	all assets reflected on the Company’s balance
sheet as the carrying value of goodwill, trade names,
trademarks, patents, unamortized debt discount, unamortized
expense incurred in the issuance of debt and other intangible
assets.

          “Corporate Trust Office” means the principal office of the Trustee at
which at any particular time its corporate trust business is principally
administered (which at the date of this

-2-

 

Indenture is at 10151 Deerwood Park Blvd., Building 400, 5th Floor,
Jacksonville, Florida 32256).

          “Custodian” has the meaning provided in Section 6.1.

          “Default” means any event which, upon the giving of notice or passage of
time, or both, would be an Event of Default.

          “Default Interest Payment Date” has the meaning provided in Section 2.11.

          “Depositary” means The Depository Trust Company, its nominees and
successors.

          “$” means the lawful currency of the United States.

          “Event of Default” has the meaning provided in Section 6.1.

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

          “Exchange Notes” means the 5.50% Senior Notes due 2014, Series B to be
issued in exchange for the Initial Notes pursuant to (i) the Registration
Rights Agreement, or (ii) with respect to Initial Notes issued under this
Indenture subsequent to the Issue Date pursuant to Section 2.2, a registration
rights agreement substantially identical to the Registration Rights Agreement.

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

          “Fiscal Year” means the period commencing on December 1 of a year and
ending on the next November 30 or such other period (not to exceed 12 months or
53 weeks) as the Company may from time to time adopt as its fiscal year.

          “Funded Debt” of any Person means all Indebtedness for borrowed money
created, incurred, assumed or guaranteed in any manner by such person, and all
Indebtedness, contingent or otherwise, incurred or assumed by such person in
connection with the acquisition of any business, property or asset, which in
each case matures more than one year after, or which by its terms is renewable
or extendible or payable out of the proceeds of similar Indebtedness incurred
pursuant to the terms of any revolving credit agreement or any similar
agreement at the option of such person for a period ending more than one year
after the date as of which Funded Debt is being determined; provided, however,
that Funded Debt shall not include (i) any Indebtedness for the payment,
redemption or satisfaction of which money (or evidences of indebtedness, if
permitted under the instrument creating or evidencing such indebtedness) in the
necessary amount shall have been irrevocably deposited in trust with a trustee
or proper depository either on or before the maturity or redemption date
thereof or (ii) any Indebtedness of such person to any of its subsidiaries or
of any subsidiary to such person or any other subsidiary or (iii) any
Indebtedness incurred in connection with the financing of operating,
construction or acquisition projects, provided that the recourse for such
indebtedness is limited to the assets of such projects.

-3-

 

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

          “Global Note” has the meaning provided in Section 2.1.

          “Guarantee” has the meaning provided in Section 10.1.

          “Guarantor” means (1) initially, each of the Guarantors named on the
signature pages of this Indenture, and (2) each of the Company’s Subsidiaries
which becomes a guarantor of the Notes pursuant to the provisions of this
Indenture, in each case subject to release as provided in this Indenture.

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

          “IAI Global Note” means, a permanent global note in registered form
representing the aggregate principal amount of Notes sold to Institutional
Accredited Investors.

          “Indebtedness” means, with respect to the Company or any Subsidiary, and
without duplication, (a) the principal of and premium, if any, and interest on,
and fees, costs, enforcement expenses, collateral protection expenses and other
reimbursement or indemnity obligations in respect to all indebtedness or
obligations of the Company or any Subsidiary to any Person, including but not
limited to banks and other lending institutions, for money borrowed that is
evidenced by a note, bond, debenture, loan agreement, or similar instrument or
agreement (including purchase money obligations with original maturities in
excess of one year and noncontingent reimbursement obligations in respect of
amounts paid under letters of credit); (b) all reimbursement obligations and
other liabilities (contingent or otherwise) of the Company or any Subsidiary
with respect to letters of credit, bank guarantees or bankers’ acceptances, (c)
all obligations and liabilities (contingent or otherwise) in respect of leases
of the Company or any Subsidiary required, in conformity with generally
accepted accounting principles, to be accounted for as capital lease
obligations on the balance sheet of the Company, (d) all obligations of the
Company or any Subsidiary (contingent or otherwise) with respect to an interest
rate or other swap, cap or collar agreement or other similar instrument or
agreement or foreign currency hedge, exchange, purchase or similar instrument
or agreement, (e) all direct or indirect guaranties or similar agreements by
the Company or any Subsidiary in respect of, and obligations or liabilities
(contingent or otherwise) of the Company or such Subsidiary to purchase or
otherwise acquire, or otherwise assure a creditor against loss in respect of,
indebtedness, obligations or liabilities of another Person of the kind
described in clauses (a) through (d), (f) any indebtedness or other
obligations, excluding any operating leases the Company or any Subsidiary is
currently (or may become) a party to, described in clauses (a) through (d)
secured by any Lien existing on property which is owned or held by the Company
or Subsidiary, regardless of whether the indebtedness or other obligation
secured thereby shall have been assumed by the Company or such Subsidiary and
(g) any and all deferrals, renewals,

-4-

 

extensions and refinancing of, or amendments, modification or supplements
to, any indebtedness, obligation or liability of the kind described in clauses
(a) through (f).

          “Indenture” means this Indenture, as amended or supplemented from time to
time in accordance with the terms hereof.

          “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Trustee after consultation with the Company.

          “Initial Notes” means, collectively, (i) the 5.50% Senior Notes due 2014,
Series A, of the Company issued on the Issue Date and (ii) any other 5.50%
Senior Notes due 2014, Series A that are issued under this Indenture,
subsequent to the Issue Date, pursuant to Section 2.2, for so long as each such
securities constitute Restricted Securities.

          “Initial Purchasers” means Citigroup Global Markets Inc. J.P. Morgan
Securities Inc., Banc of America Securities LLC, Calyon Securities (USA) Inc.,
Deutsche Bank Securities Inc., Wachovia Capital Markets, LLC, BNP Paribas
Securities Corp., Comerica Securities, Inc. Greenwich Capital Markets, Inc. and
SunTrust Capital Markets, Inc.

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

          “Interest Payment Date” means the stated maturity of an installment of
interest on the Notes.

          “Issue Date” means August 12, 2004.

          “Lien” means any mortgage, pledge, lien, encumbrance, charge or security
interest of any kind.

          “Maturity Date” means September 1, 2014.

          “Non-Recourse Indebtedness” means any Indebtedness of the Company or any
Restricted Subsidiary for which the holder of such Indebtedness has no
recourse, directly or indirectly, to the Company or such Restricted Subsidiary
for the principal of, premium, if any, and interest on such Indebtedness, and
for which the Company or such Restricted Subsidiary is not, directly or
indirectly, obligated or otherwise liable for the principal of, premium, if
any, and interest on such Indebtedness, except pursuant to mortgages, deeds of
trust or other security interests or other recourse, obligations or
liabilities, in respect of specific land or other real property interests of
the Company or such Restricted Subsidiary securing such Indebtedness; provided,
however, that recourse, obligations or liabilities solely for indemnities,
breaches of warranties or representations contained in such mortgages, deeds of
trust or grants of security interests in respect of Indebtedness will not
prevent that Indebtedness from being classified as Non-Recourse Indebtedness.

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

-5-

 

          “Notes” means, collectively, the Initial Notes, the Private Exchange
Notes, if any, and the Unrestricted Notes, treated as a single class of
securities, as amended or supplemented from time to time in accordance with the
terms of this Indenture, that are issued pursuant to this Indenture.

          “Obligations” means all obligations for principal, premium, interest,
penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing the Notes.

          “Officer” means the Chairman of the Board, any Vice Chairman of the Board,
the President, any Vice President, the Treasurer, the Secretary, the Controller
or any Assistant Secretary of a Person.

          “Officers’ Certificate” when used with respect to the Company means a
certificate signed by two Officers. Each such certificate will comply with
Section 314 of the TIA and include the statements described in Section 12.05.

          “Opinion of Counsel” means a written opinion from legal counsel who is
acceptable to the Trustee. That counsel may be an employee of or counsel to the
Company or the Trustee. Each such opinion will include the statements
described in Section 11.5 if and to the extent required by that Section.

          “Paying Agent” has the meaning provided in Section 2.3.

          “Permitted Liens” has the meaning provided in Section 4.6.

          “Permitted Sale-Leaseback Transactions” has the meaning provided in
Section 4.7.

          “Person” means any individual, corporation, partnership, limited liability
company, joint venture, joint-stock company, trust, unincorporated organization
or government or any government agency or political subdivision.

          “Physical Notes” has the meaning provided in Section 2.1.

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

          “Private Exchange Notes” shall have the meaning provided in the
Registration Rights Agreement(s).

          “Private Placement Legend” means the legend initially set forth on the
Initial Notes in the form set forth in Exhibit A.

          “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.

-6-

 

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

          “Record Date” means the Record Date specified in the Notes.

          “Redemption Date” when used with respect to any Note to be redeemed, means
the date fixed for such redemption by or pursuant to this Indenture.

          “Redemption Price” when used with respect to any Note to be redeemed,
means the price at which it is to be redeemed pursuant to this Indenture. For
the avoidance of doubt, the Redemption Price excludes accrued interest to the
Redemption Date.

          “Reference Treasury Dealer” means (a) each of Citigroup Global Markets
Inc. and J.P. Morgan Securities Inc. (or their respective affiliates which are
Primary Treasury Dealers), and their respective successors; provided, however,
that if any of the foregoing shall not be a Primary Treasury Dealer the Company
shall substitute therefor another Primary Treasury Dealer; and (b) any other
Primary Treasury Dealer(s) selected by the Company.

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

          “Registrar” has the meaning provided in Section 2.3.

          “Registration Rights Agreement” means, as applicable, (i) the Registration
Rights Agreement dated as of the Issue Date among the Company, the Guarantors
and the Initial Purchasers or (ii) any registration rights agreement,
substantially identical to the Registration Rights Agreement, entered into
among the Company, the Guarantors and the respective purchasers, on
substantially identical terms, relating to any Initial Notes issued pursuant to
Section 2.2.

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

          “Regulation S Global Note” means a permanent global note in registered
form representing the aggregate principal amount of Notes sold in reliance on
Regulation S under the Securities Act.

          “Remaining Scheduled Payments” means, with respect to any Note, the
remaining scheduled payments of the principal (or of the portion) thereof to be
redeemed and interest thereon that would be due after the related Redemption
Date but for such redemption; provided, however, that, if such Redemption Date
is not an Interest Payment Date with respect to such Note, the amount of the
next succeeding scheduled interest payment thereon will be reduced by the
amount of interest accrued thereon to such Redemption Date.

          “Restricted Security” has the meaning assigned to such term in Rule
144(a)(3) under the Securities Act; provided, however, that the Trustee shall
be entitled to request and

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conclusively rely on an Opinion of Counsel with respect to whether any
Note constitutes a Restricted Security.

          “Restricted Subsidiary” means any Guarantor.

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

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

          “SEC” means the Securities and Exchange Commission.

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

          “Senior Secured Credit Facilities” means the senior secured credit
facilities dated as of May 3, 2000, as amended and restated through May 27,
2004 between the Company and Bank One N.A., as administrative agent and the
other lenders party thereto.

          “State” means any state of the United States or the District of Columbia.

          “Subsidiary” means (i) a corporation or other entity of which a majority
in voting power of the stock or other interests is owned by the Company, by a
Subsidiary of the Company or by the Company and one or more Subsidiaries of the
Company or (ii) a partnership, the sole general partner or partners of which
are the Company and/or any Subsidiary.

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

          “Trustee” means the person named as such in this Indenture and, subject to
the provisions of Article Seven of this Indenture, any successor to that
person.

          “TIA” means the Trust Indenture Act of 1939, as amended, as in effect on
the date of this Indenture, except as otherwise provided in Section 9.3.

          “Trust Officer” means the Chairman of the Board, the President or any
other officer or assistant officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

          “United States” means the United States of America.

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          “Unrestricted Notes” means one or more Notes that do not and are not
required to bear the Private Placement Legend, including, without limitation,
the Exchange Notes.

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

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

     Section 1.2. Incorporation by Reference of TIA. Whenever this Indenture
refers to a provision of the TIA, such 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:

          “indenture securities” means the Notes.

          “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 Company or any other
obligor on the Notes.

          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 and not
otherwise defined herein have the meanings assigned to them therein.

     Section 1.3. 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 of any date of determination;

     (3) “or” is not exclusive;

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

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

     (6) any reference to a statute, law or regulation means that
statute, law or regulation as amended and in effect from time to time and
includes any successor statute, law or regulation; provided, however,
that any reference to the Bankruptcy Law shall mean the Bankruptcy Law as
applicable to the relevant case.

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ARTICLE II.

THE NOTES

     Section 2.1. Form and Dating. The Initial Notes and the Trustee’s
certificate of authentication relating thereto shall be substantially in the
form of Exhibit A hereto, provided, that any Initial Notes issued in a public
offering shall be substantially in the form of Exhibit B hereto. The Exchange
Notes and the Trustee’s certificate of authentication relating thereto shall be
substantially in the form of Exhibit B hereto. The Notes may have notations,
legends or endorsements required by law, stock exchange rule or depository rule
or usage. The Company and the Trustee shall approve the form of the Notes and
any notation, legend or endorsement on them. Each Note shall be dated the date
of its issuance and shall show the date of its authentication.

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

          Notes offered and sold in reliance on Rule 144A and Notes offered and sold
in reliance on Regulation S shall be issued initially in the form of one or
more permanent global Notes in registered form, substantially in the form set
forth in Exhibit A (each, a “Global Note”), deposited with the Trustee, as
custodian for the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided and shall bear the legend set forth in
Exhibit C. The aggregate principal amount of the Global Note may from time to
time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary, as hereinafter provided.

          Notes issued in exchange for interests in a Global Note pursuant to
Section 2.16 may be issued and Notes offered and sold in reliance on any other
exemption from registration under the Securities Act other than as described in
the preceding paragraph shall be issued in the form of permanent certificated
Notes in registered form in substantially the form set forth in Exhibit A (the
“Physical Notes”).

          All Notes offered and sold in reliance on Regulation S shall remain in the
form of a Global Note until the consummation of the Exchange Offer pursuant to
the Registration Rights Agreement; provided, however, that all of the time
periods specified in the Registration Rights Agreement to be complied with by
the Company have been so complied with.

     Section 2.2. Execution and Authentication; Aggregate Principal Amount. An
Officer of the Company (duly authorized by all requisite corporate actions)
shall sign and attest to the Notes for the Company by manual or facsimile
signature.

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

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

          The Trustee shall authenticate all (i) Initial Notes; (ii) Private
Exchange Notes from time to time for issue only in exchange for a like
principal amount of Initial Notes and (iii) Unrestricted Notes from time to
time upon a written order of the Company in the form of an Officers’
Certificate of the Company. Each such written order shall specify the amount
of Notes to be authenticated and the date on which the Notes are to be
authenticated, whether the Notes are to be Initial Notes, Private Exchange
Notes or Unrestricted Notes and whether the Notes are to be issued as Physical
Notes or Global Notes or such other information as the Trustee may reasonably
request.

          The Trustee may appoint an authenticating agent (the “Authenticating
Agent”) reasonably acceptable to the Company to authenticate Notes. Unless
otherwise provided in the appointment, an Authenticating Agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such Authenticating
Agent. An Authenticating Agent has the same rights as an Agent to deal with
the Company or with any Affiliate of the Company.

          The Notes shall be issuable in fully registered form only, without
coupons, in denominations of $1,000 and any integral multiple thereof. Subject
to applicable law, the aggregate principal amount of the Notes which may be
authenticated and delivered on the Issue Date shall not exceed $250,000,000;
provided that, the Company may, without the consent of the Holders, issue
additional Notes under this Indenture at any time hereafter.

     Section 2.3. Registrar and Paying Agent. The Company shall maintain an
office or agency (which shall be located in the Borough of Manhattan in the
City of New York, State of New York) where (a) Notes may be presented or
surrendered for registration of transfer or for exchange (“Registrar”), (b)
Notes may be presented or surrendered for payment (“Paying Agent”) and (c)
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Registrar shall keep a register of the Notes and
of their transfer and exchange. The Company may have one or more co-Registrars
and one or more additional paying agents reasonably acceptable to the Trustee.
The term “Paying Agent” includes any additional Paying Agent. The Company may
act as its own Paying Agent. If the Company elects to act as its own paying
agent, the Company will notify the Trustee of its election and will hold for
the benefit of the Holders all assets for the payment of principal of premium,
if any, or interest on, the Notes.

          The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture, which agreement shall incorporate the
provisions of the TIA and implement the provisions of this Indenture that
relate to such Agent. The Company shall notify the Trustee of the name and
address of any such Agent. If the Company shall fail to maintain a Registrar
or Paying Agent, the Trustee shall act as such.

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          The Company initially appoints the Trustee as Registrar, Paying Agent and
custodian for service of demands and notices in connection with the Notes. Any
of the Registrar, the Paying Agent or any other agent may resign upon 30 days’
notice to the Company.

     Section 2.4. Paying Agent to Hold Assets in Trust. The Company shall
require each Paying Agent other than the Trustee to agree in writing that such
Paying Agent shall hold in trust for the benefit of the Holders or the Trustee
all assets held by the Paying Agent for the payment of principal of, premium,
if any, or interest on, the Notes (whether such assets have been distributed to
it by the Company or any other obligor on the Notes), and the Company and the
Paying Agent shall notify the Trustee of any Default by the Company (or any
other obligor on the Notes) in making any such payment. The Company at any
time may require a Paying Agent to distribute all assets held by it to the
Trustee and account for any assets disbursed and the Trustee may at any time
during the continuance of any payment Default, upon written request to a Paying
Agent, require such Paying Agent to distribute all assets held by it to the
Trustee and to account for any assets distributed. Upon distribution to the
Trustee of all assets that shall have been delivered to the Paying Agent, the
Paying Agent shall have no further liability for such assets.

     Section 2.5. Holder Lists. The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of the Holders and shall otherwise comply with TIA §
312(a). If the Trustee is not the Registrar, the Company shall furnish or
cause the Registrar to furnish to the Trustee five (5) Business Days before
each Record Date and at such other times as the Trustee may request in writing
a list as of such date and in such form as the Trustee may reasonably require
of the names and addresses of the Holders, which list may be conclusively
relied upon by the Trustee, and the Company shall otherwise comply with TIA §
312(a).

     Section 2.6. Transfer and Exchange. Subject to Sections 2.16 and 2.17,
when Notes are presented to the Registrar or a co-Registrar with a request to
register the transfer of such Notes or to exchange such Notes for an equal
principal amount of Notes of other authorized denominations, the Registrar or
co-Registrar shall register the transfer or make the exchange as requested if
its requirements for such transaction are met; provided, however, that the
Notes presented or surrendered for registration of transfer or exchange shall
be duly endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Company, the Trustee and the Registrar or co-Registrar,
duly executed by the Holder thereof or his attorney duly authorized in writing.
To permit registration of transfers and exchanges, the Company shall execute
and the Trustee shall authenticate Notes at the Registrar’s or co-Registrar’s
request. No service charge shall be made for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax, fee or similar governmental charge payable in connection
therewith (other than any such transfer taxes or similar governmental charge
payable upon exchanges or transfers pursuant to Section 2.10 or 3.1, in which
event the Company shall be responsible for the payment of such taxes or
charges).

          The Registrar or co-Registrar shall not be required to register the
transfer of or exchange of any Note (i) during a period beginning at the
opening of business 15 days before the mailing of a notice of redemption of
Notes and ending at the close of business on the day of such

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mailing and (ii) selected for redemption in whole or in part pursuant to
Article III, except the unredeemed portion of any Note being redeemed in part.

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

     Section 2.7. Replacement Notes. If a mutilated Note is surrendered to the
Trustee or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall
authenticate a replacement Note if the Trustee’s requirements are met. If
required by the Trustee or the Company, such Holder must provide an indemnity
bond or other indemnity of reasonable tenor, sufficient in the reasonable
judgment of the Company and the Trustee, to protect the Company, the Trustee or
any Agent from any loss which any of them may suffer if a Note is replaced.
Every replacement Note shall constitute an additional obligation of the
Company.

     Section 2.8. Outstanding Notes. Notes outstanding at any time are all the
Notes that have been authenticated by the Trustee except those canceled by it,
those delivered to it for cancellation and those described in this Section as
not outstanding. Subject to the provisions of Section 2.9, a Note does not
cease to be outstanding because the Company or any of its Affiliates holds the
Note.

          If a Note is replaced pursuant to Section 2.7 (other than a mutilated Note
surrendered for replacement), it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a protected
purchaser. A mutilated Note ceases to be outstanding upon surrender of such
Note and replacement thereof pursuant to Section 2.7.

          If, on a Redemption Date or the Maturity Date, the Paying Agent holds U.S.
Legal Tender or U.S. Government Obligations sufficient to pay all of the
principal, premium, if any, and interest due on the Notes payable on that date
and is not prohibited from paying such money to the Holders thereof pursuant to
the terms of this Indenture, then on and after that date such Notes shall be
deemed not to be outstanding and interest on them shall cease to accrue.

     Section 2.9. Treasury Notes. In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver,
consent or notice, Notes owned by the Company or an Affiliate of the Company
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 Notes which a Trust Officer of the
Trustee has been informed in writing by the Company to be so owned shall be so
considered. The Company shall notify the Trustee, in writing, when either it
or, to its knowledge, any of its Affiliates repurchases or otherwise acquires
Notes, of the aggregate principal amount of such Notes so repurchased or
otherwise acquired and such other information as the Trustee may reasonably
request and the Trustee shall be entitled to rely thereon.

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     Section 2.10. Temporary Notes. Until typewritten Notes are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary
Notes upon receipt of a written order of the Company in the form of an
Officers’ Certificate. The Officers’ Certificate shall specify the amount of
temporary Notes to be authenticated and the date on which the temporary Notes
are to be authenticated. Temporary Notes shall be substantially in the form of
typewritten Notes but may have variations that the Company consider appropriate
for temporary Notes and so indicate in the Officers’ Certificate. Without
unreasonable delay, the Company shall prepare and the Trustee shall
authenticate, upon receipt of a written order of the Company pursuant to
Section 2.2, typewritten Notes in exchange for temporary Notes.

     Section 2.11. Cancellation. The Company at any time may deliver Notes to
the Trustee for cancellation. The Registrar and the Paying Agent shall forward
to the Trustee any Notes surrendered to them for transfer, exchange or payment.
The Trustee, or at the direction of the Trustee, the Registrar or the Paying
Agent, and no one else, shall cancel and, at the written direction of the
Company, shall dispose, in its customary manner, of all Notes surrendered for
transfer, exchange, payment or cancellation. Subject to Section 2.7, the
Company may not issue new Notes to replace Notes that they have paid or
delivered to the Trustee for cancellation. If the Company shall acquire any of
the Notes, such acquisition shall not operate as a redemption or satisfaction
of the Indebtedness represented by such Notes unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.11.

     Section 2.12. Defaulted Interest. The Company shall pay interest on
overdue principal from time to time on demand at the rate of interest borne by
the Notes. The Company shall, to the extent lawful, pay interest on overdue
installments of interest (without regard to any applicable grace periods) from
time to time on demand at the rate of interest borne by the Notes. All such
interest will be computed on the basis of a 360-day year comprised of twelve
30-day months, and, in the case of a partial month, the actual number of days
elapsed.

          If the Company defaults in a payment of interest on the Notes, it shall
pay the defaulted interest, plus (to the extent lawful) any interest payable on
the defaulted interest, to the Persons who are Holders on a subsequent special
record date, which special record date shall be the fifteenth day next
preceding the date fixed by the Company for the payment of defaulted interest
or the next succeeding Business Day if such date is not a Business Day. The
Company shall notify the Trustee in writing of the amount of defaulted interest
proposed to be paid on each Note and the date of the proposed payment (a
“Default Interest Payment Date”), and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such defaulted interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the
date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such defaulted interest as provided in
this Section; provided, however, that in no event shall the Company deposit
monies proposed to be paid in respect of defaulted interest later than 11:00
a.m. New York City time of the proposed Default Interest Payment Date. At
least 15 days before the subsequent special record date, the Company shall mail
(or cause to be mailed) to each Holder, as of a recent date selected by the
Company, with a copy to the Trustee at least 20 days prior to such special
record date, a notice that states the subsequent special record date, the
Default Interest Payment Date and the amount of defaulted interest, and
interest payable on such defaulted interest, if any, to be paid.
Notwithstanding the foregoing, any interest which is paid

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prior to the expiration of the 30-day period set forth in Section 6.1(1)
shall be paid to Holders as of the regular record date for the Interest Payment
Date for which interest has not been paid. Notwithstanding the foregoing, the
Company may make payment of any defaulted interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
Notes may be listed, and upon such notice as may be required by such exchange.

     Section 2.13. CUSIP Number. In issuing the Notes, the Company 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; provided, however, that
no representation is hereby deemed to be made by the Trustee as to the
correctness or accuracy of the CUSIP number printed in the notice or on the
Notes, and that reliance may be placed only on the other identification numbers
printed on the Notes. The Company shall promptly notify the Trustee of any
change in the CUSIP number.

          In the event that the Company shall issue and the Trustee shall
authenticate any Notes issued under this Indenture subsequent to the Issue Date
pursuant to Section 2.2, the Company shall use its reasonable efforts to obtain
the same “CUSIP” number for such Notes as is printed on the Notes outstanding
at such time and provides written notice to the Trustee to such effect;
provided, however, that if any series of Notes issued under this Indenture
subsequent to the Issue Date is determined, pursuant to an Opinion of Counsel
of the Company in a form reasonably satisfactory to the Trustee to be a
different class of security than the Notes outstanding at such time for federal
income tax or securities laws purposes, the Company shall use its reasonable
efforts to obtain a “CUSIP” number for such Notes that is different than the
“CUSIP” number printed on the Notes then outstanding and cause such opinion to
be delivered to the Trustee. Notwithstanding the foregoing or any other
provision herein to the contrary, all Notes issued under this Indenture shall
vote and consent together on all matters as one class and no series of Notes
will have the right to vote or consent as a separate class on any matter.

     Section 2.14. Deposit of Monies. Prior to 11:00 a.m. New York City time
on each Interest Payment Date, Maturity Date or Redemption Date, the Company
shall have deposited with the Paying Agent in immediately available funds money
sufficient to make cash payments, if any, due on such Interest Payment Date,
Maturity Date or Redemption Date, as the case may be, in a timely manner which
permits the Paying Agent to remit payment to the Holders on such Interest
Payment Date, Maturity Date or Redemption Date, as the case may be.

     Section 2.15. Restrictive Legends. Each Global Note and Physical Note
that constitutes a Restricted Security shall bear the Private Placement Legend
on the face thereof until after the second anniversary of the later of the
Issue Date (or in the case of any Initial Notes issued after the Issue Date,
two years after the date of initial issuance thereof) and the last date on
which the Company or any Affiliate of the Company was the owner of such Note
(or any predecessor security) (or such shorter period of time as permitted by
Rule 144(k) under the Securities Act or any successor provision thereunder) (or
such longer period of time as may be required under the Securities Act or
applicable state securities laws in the opinion of counsel for the Company,
unless otherwise agreed by the Company and the Holder thereof).

          Each Global Note shall also bear the legend as set forth in Exhibit C.

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     Section 2.16. Book-Entry Provisions for Global Security.

     (a) The Global Notes initially shall (i) be registered in the name of the
Depositary or the nominee of such Depositary, (ii) be delivered to the Trustee
as custodian for such Depositary and (iii) bear the legend as set forth in
Exhibit C.

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

     (c) Transfers of a Global Note shall be limited to transfers in whole, but
not in part, to the Depositary, its successors or their respective nominees.
Interests of beneficial owners in a Global Note may be transferred or exchanged
for Physical Notes in accordance with the rules and procedures of the
Depositary and the provisions of Section 2.17. In addition, Physical Notes
shall be transferred to all beneficial owners in exchange for their beneficial
interests in a Global Note if (i) the Depositary notifies the Company that it
is unwilling or unable to continue as Depositary for the Global Notes and a
successor depositary is not appointed by the Company within 90 days of such
notice or (ii) an Event of Default has occurred and is continuing and the
Registrar has received a written request from the Depositary to issue Physical
Notes.

     (d) In connection with any transfer or exchange of a portion of the
beneficial interest in a Global Note to beneficial owners pursuant to Section
2.16(c), the Registrar shall (if one or more Physical Notes are to be issued)
reflect on its books and records the date and a decrease in the principal
amount of such Global Note in an amount equal to the principal amount of the
beneficial interest in the Global Note to be transferred, and the Company shall
execute and the Trustee shall authenticate and deliver, one or more Physical
Notes of like tenor and amount.

     (e) In connection with the transfer of an entire Global Note to beneficial
owners pursuant to Section 2.16(c), such Global Note shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute and
the Trustee shall authenticate and deliver, to each beneficial owner identified
by the Depositary in exchange for its beneficial interest in the Global Note,
an equal aggregate principal amount of Physical Notes of authorized
denominations.

     (f) Any Physical Note constituting a Restricted Security delivered in
exchange for an interest in a Global Note pursuant to Section 2.16(c) shall,
except as otherwise provided by Section 2.17(a)(i)(x) and (c), bear the Private
Placement Legend.

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

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     Section 2.17. Special Transfer Provisions.

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

     (i) the Registrar shall register the transfer of any Note
constituting a Restricted Security, whether or not such Note bears the
Private Placement Legend, if (x) the requested transfer is after the
second anniversary of the Issue Date (provided, however, that neither the
Company nor any Affiliate of the Company has held any beneficial interest
in such Note, or portion thereof, or predecessor security at any time on
or prior to the second anniversary of the Issue Date (or in the case of
any Initial Notes issued after the Issue Date, two years after the date
of initial issuance thereof)) or (y) (1) in the case of a transfer to an
Institutional Accredited Investor which is not a QIB (excluding Non-U.S.
Persons), the proposed transferee has delivered to the Registrar a
certificate substantially in the form of Exhibit D hereto or (2) in the
case of a transfer to a Non-U.S. Person, the proposed transferor has
delivered to the Registrar a certificate substantially in the form of
Exhibit E hereto; and

     (ii) if the proposed transferee is an Agent Member and the Notes to
be transferred consist of Physical Notes which after transfer are to be
evidenced by an interest in the IAI Global Note or Regulation S Global
Note, as the case may be, upon receipt by the Registrar of (x) written
instructions given in accordance with the Depositary’s and the
Registrar’s procedures and (y) the appropriate certificate, if any,
required by clause (y) of paragraph (i) above, the Registrar shall
register the transfer and reflect on its books and records the date and
an increase in the principal amount of the IAI Global Note or Regulation
S Global Note, as to case may be, in an amount equal to the principal
amount of Physical Notes to be transferred, and the Trustee shall cancel
the Physical Notes so transferred; and

     (iii) if the proposed transferor is an Agent Member seeking to
transfer an interest in a Global Note, upon receipt by the Registrar of
(x) written instructions given in accordance with the Depositary’s and
the Registrar’s procedures and (y) the appropriate certificate, if any,
required by clause (y) of paragraph (i) above, the Registrar shall
register the transfer and reflect on its books and records the date and
(A) a decrease in the principal amount of the Global Note from which such
interests are to be transferred in an amount equal to the principal
amount of the Notes to be transferred and (B) an increase in the
principal amount of the IAI Global Note or the Regulation S Global Note,
as the case may be, in an amount equal to the principal amount of the
Notes to be transferred.

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

     (i) the Registrar shall register the transfer of any Restricted
Security if such transfer is being made by a proposed transferor who has
checked the box provided for on

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

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

     (iii) if the proposed transferor is an Agent Member seeking to
transfer an interest in the IAI Global Note or the Regulation S Global
Note, upon receipt by the Registrar of written instructions given in
accordance with the Depositary’s and the Registrar’s procedures, the
Registrar shall register the transfer and reflect on its books and
records the date and (A) a decrease in the principal amount of the IAI
Global Note or the Regulation S Global Note, as the case may be, in an
amount equal to the principal amount of the Notes to be transferred and
(B) an increase in the principal amount of the Global Note in an amount
equal to the principal amount of the Notes to be transferred.

     (c) Restrictions on Transfer and Exchange of Global Notes.
Notwithstanding any other provisions of this Indenture, a Global Note may not
be transferred as a whole except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or any such
nominee to a successor Depositary or a nominee of such successor Depositary.

     (d) Private Placement Legend. Upon the transfer, exchange or replacement
of Notes not bearing the Private Placement Legend, the Registrar shall deliver
Notes that do not bear the Private Placement Legend. Upon the transfer,
exchange or replacement of Notes bearing the Private Placement Legend, the
Registrar shall deliver only Notes that bear the Private Placement Legend
unless (i) the requested transfer is after the second anniversary of the Issue
Date (provided, however, that neither the Company nor any Affiliate of the
Company has held any beneficial interest in such Note, or portion thereof, or
any predecessor security at any time prior to or on the second anniversary of
the Issue Date (or, in the case of any Initial Notes issued after the Issue
Date, two years after the date of initial issuance thereof), or (ii) there is
delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the
Company and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act.

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

          The Registrar shall retain copies of all letters, notices and other
written communications received pursuant to Section 2.16 or this Section 2.17.
The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time during
the Registrar’s normal business hours upon the giving of reasonable written
notice to the Registrar.

     (f) Transfer of Notes Held by Affiliates. Any certificate (i) evidencing
a Note that has been transferred to an Affiliate of the Company within two
years after the Issue Date (or in the case of any Initial Notes issued after
the Issue Date, two years after the date of initial issuance thereof), as
evidenced by a notation on the Assignment Form for such transfer or in the
representation letter delivered in respect thereof or (ii) evidencing a Note
that has been acquired from an Affiliate of the Company (other than by an
Affiliate of the Company) in a transaction or a chain of transactions not
involving any public offering, shall, until two years after the last date on
which the Company or any Affiliate of the Company was an owner of such Note, in
each case, bear the Private Placement Legend, unless otherwise agreed by the
Company (with written notice thereof to the Trustee).

     (g) Notice of Affiliate Purchases. In connection with the purchase or
sale of any Note or any beneficial interest therein by the Company or any
Affiliate thereof (other than a sale to the Initial Purchasers pursuant to the
Purchase Agreement), the Company shall file with the Trustee and Registrar a
written notice identifying the transaction as such for the purposes hereof.

     Section 2.18. Additional Interest Under Registration Rights Agreement.
Under certain circumstances, the Company shall be obligated to pay Additional
Interest to the Holders, all as set forth in Section 4 of the Registration
Rights Agreement. The terms thereof are hereby incorporated herein by
reference.

ARTICLE III.

REDEMPTION

     Section 3.1. Optional Redemption by the Company.

     (a) Right to Redeem; Notice to Trustee. The Company, at its option, may
redeem the Notes in accordance with the provisions of paragraphs 5 and 6 of the
Notes. If the Company elects to redeem Notes pursuant to paragraph 5 of the
Notes, it shall notify the Trustee in writing of the Redemption Date, the
principal amount of Notes to be redeemed and the Redemption Price that would be
in effect if such Notes were being redeemed on the date of the notice. The
Company shall give the notice to the Trustee provided for in this Section
3.1(a) at least 30 days but not more than 60 days before the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee).

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     (b) Notice of Redemption. At least 30 days but not more than 60 days
before a Redemption Date, the Company shall mail or cause to be mailed a notice
of redemption by first-class mail to the Trustee and to each Holder of Notes to
be redeemed at such Holder’s address as it appears on the Note register.

          The notice shall identify the Notes to be redeemed and shall state:

          (i) the Redemption Date;

          (ii) the Redemption Price that would be in effect if such Notes were being
redeemed on the date of the notice;

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

          (iv) that Notes called for redemption must be presented and surrendered to
the Paying Agent to collect the Redemption Price and any accrued interest;

          (v) that interest on Notes called for redemption shall cease to accrue on
and after the Redemption Date and, unless the Company defaults in making the
redemption payment, the only remaining right of the Holder shall be to receive
payment of the Redemption Price upon presentation and surrender to the Paying
Agent of the Notes;

          (vi) if fewer than all the outstanding Notes are to be redeemed, the
certificate number and principal amounts of the particular Notes to be
redeemed; and

          (vii) the CUSIP number or numbers for the Notes called for redemption.

          At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at the Company’s expense. In such event, the Company
will provide the Trustee with the information required by clauses (i) through
(iii) and (vi).

     (c) Effect of Notice of Redemption. Once notice of redemption is mailed,
Notes called for redemption become due and payable on the Redemption Date and
at the Redemption Price stated in the notice. Upon presentation and surrender
to the Paying Agent, Notes called for redemption shall be paid at the
Redemption Price, together with any accrued interest.

     (d) Sinking Fund. There shall be no sinking fund provided for the Notes.

ARTICLE IV.

COVENANTS

     Section 4.1. Payment of Notes. The Company will promptly pay or cause to
be paid the principal of, premium, if any, and interest, if any, on each of the
Notes at the places and time and in the manner provided in the Notes and this
Indenture. An installment of principal, premium or interest will be considered
paid on the date it is due if the Trustee or Paying Agent

-20-

 

holds on that date in accordance with this Indenture money designated for
and sufficient to pay the installment then due.

          The Company will pay or cause to be paid interest on overdue principal at
the rate specified in the Notes; it will also pay interest on overdue
installments of interest at the same rate, to the extent lawful.

     Section 4.2. Reporting. The Company will file with the Trustee within 15
days after filing with the SEC, copies of its annual reports and of the
information, documents, and other reports (or copies of such portions of any of
the foregoing as the SEC may by rules and regulations prescribe) which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. The Company also will comply with the other provisions of TIA
Section 314(a).

     Section 4.3. Corporate Existence. Subject to Article V, the Company will
do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence, rights (charter and statutory) and
franchises; provided, however, that the Company will not be required to
preserve any such right or franchise if the Board of Directors determines that
the preservation of the right or franchise is no longer desirable in the
conduct of the business of the Company and that its loss will not be
disadvantageous in any material respect to the Holders of the Notes.

     Section 4.4. Compliance Certificate. The Company will deliver to the
Trustee within 120 days after the end of each fiscal year of the Company an
Officers’ Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have
knowledge of any Default or Event of Default by the Company and whether or not
the signers know of any Default or Event of Default that occurred during the
fiscal year. If they do, the certificate will describe the default or Event of
Default, its status and what action the Company is taking or proposes to take
with respect thereto. The Company also will comply with TIA Section 314(a)(4).
For the purposes of this provision of the Indenture, compliance is determined
without regard to any grace period or requirement of notice under the
Indenture.

     Section 4.5. Further Instruments and Acts. Upon request of the Trustee,
the Company will execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

     Section 4.6. Limitations on Liens. The Company shall not, nor shall it
permit any Restricted Subsidiary to, create, assume, incur or suffer to exist
any Lien, upon any of its properties or assets, whether owned on the Issue Date
or thereafter acquired, unless (1) if such Lien secures Indebtedness which is
pari passu with the Notes, then the Notes are secured on an equal and ratable
basis with the obligation so secured until such time as such obligation is no
longer secured by a Lien, (2) if such Lien secures Indebtedness which is
subordinated to the Notes, then the Notes are secured and the Lien securing
such Indebtedness is subordinated to the Lien granted to the holders of the
Notes to the same extent as such Indebtedness is subordinated to the Notes or
(3) such Lien is a Permitted Lien (as defined below).

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     The following Liens constitute “Permitted Liens”:

     (a) Liens on property of a Person existing at the time such Person is
merged into or consolidated with or otherwise acquired by the Company or any
Restricted Subsidiary, provided that such Liens were in existence prior to, and
were not created in contemplation of, such merger, consolidation or
acquisitions and do not extend to any assets other than those of the Person
merged into or consolidated with the Company or a Restricted Subsidiary;

     (b) Liens on property existing at the time of acquisition thereof by the
Company or any Restricted Subsidiary; provided that such Liens were in
existence prior to, and were not created in contemplation of, such acquisition
and do not extend to any assets other than the property acquired;

     (c) Liens imposed by law such as carriers’, warehouseman’s or mechanics’
Liens, and other Liens to secure the performance of statutory obligations,
surety or appeal bonds, performance bonds or other obligations of a like nature
incurred in the ordinary course of business;

     (d) Liens incurred in connection with pollution control, industrial
revenue, water, sewage or any similar bonds;

     (e) Liens securing Indebtedness representing, or incurred to finance, the
cost of acquiring, constructing or improving any assets, provided that the
principal amount of such Indebtedness does not exceed 100% of such cost,
including construction charges;

     (f) Liens securing Indebtedness (A) between a Restricted Subsidiary and
the Company, or (B) between Restricted Subsidiaries;

     (g) Liens incurred in the ordinary course of business to secure
performance of obligations with respect to statutory or regulatory
requirements, performance or return-of-money bonds, surety bonds or other
obligations of a like nature, in each case which are not incurred in connection
with the borrowing of money, the obtaining of advances or credit or the payment
of the deferred purchase price of property and which do not in the aggregate
impair in any material respect the use of property in the operation of the
Company’s business taken as a whole;

     (h) pledges or deposits under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of indebtedness) or
leases to which the Company or any Restricted Subsidiary is a party, or
deposits to secure public or statutory obligations of the Company or of any
Restricted Subsidiary or deposits for the payment of rent, in each case
incurred in the ordinary course of business;

     (i) Liens granted to any bank or other institution on the payments to be
made to such institution by the Company or any Subsidiary pursuant to any
interest rate swap or similar agreement or foreign currency hedge, exchange or
similar agreement designed to provide protection against fluctuations in
interest rates and currency exchange rates, respectively, provided that such
agreements are entered into in, or are incidental to, the ordinary course of
business;

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     (j) Liens arising solely by virtue of any statutory or common law
provision relating to banker’s Liens, rights of set off or similar rights and
remedies;

     (k) Liens arising from the Uniform Commercial Code financing statements
regarding leases;

     (l) Liens securing indebtedness incurred to finance the acquisition,
construction, improvement, development or expansion of a property which is
given within 180 days of the acquisition, construction, improvement,
development or expansion of such property and which is limited to such
property;

     (m) Liens incurred in connection with Non-Recourse Indebtedness;

     (n) Liens existing on the Issue Date;

     (o) Liens for taxes, assessments or governmental charges or claims that
are not yet delinquent or that are being contested in good faith by appropriate
proceedings promptly instituted and diligently concluded; provided that any
reserve or other appropriate provision as shall be required in conformity with
GAAP shall have been made therefor;

     (p) Liens securing refinancing Indebtedness; provided that any such Lien
does not extend to or cover any property or assets other than the property or
assets securing Indebtedness so refunded, refinanced or extended;

     (q) easements, rights-of-way and other similar encumbrances incurred in
the ordinary course of business and encumbrances consisting of zoning
restrictions, licenses, restrictions on the use of property or minor
imperfections in title thereto which, in the aggregate, are not material in
amount, and which do not in any case materially detract from the Company’s
properties subject thereto; and

     (r) any extensions, substitutions, modifications, replacements or renewals
of the Permitted Liens described above.

     Notwithstanding the foregoing, the Company may, and may permit any
Restricted Subsidiary to, create, assume, incur or suffer to exist any Lien
upon any of its properties or assets without equally and ratably securing the
Notes if the aggregate amount of all Indebtedness then outstanding secured by
such Lien and all similar Liens, together with the aggregate net sale proceeds
from all Sale-Leaseback Transactions which are not Permitted Sale-Leaseback
Transactions, does not exceed 20% of the total consolidated stockholders’
equity of the Company as shown on the most recent consolidated balance sheet
that is contained or incorporated in the latest annual report on Form 10-K (or
equivalent report) or quarterly report on Form 10-Q (or equivalent report)
filed with the SEC, and is as of a date not more than 181 days prior to the
date of determination, in the case of the consolidated balance sheet contained
or incorporated in an annual report on Form 10-K, or 135 days prior to the date
of determination, in the case of the consolidated balance sheet contained in
the quarterly report on Form 10-Q; provided that Indebtedness secured by
Permitted Liens shall not be included in the amount of such secured
Indebtedness.

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     Section 4.7. Sale-Leaseback Transactions. The Company shall not, and
shall not permit any Restricted Subsidiary to, after the date hereof, enter
into any Sale-Leaseback Transaction other than Permitted Sale-Leaseback
Transactions (as defined below). The following Sale-Leaseback Transactions
constitute “Permitted Sale-Leaseback Transactions”:

     (a) a Sale-Leaseback Transaction involving the leasing by the Company or
any Restricted Subsidiary of model homes in the Company’s communities;

     (b) a Sale-Leaseback Transaction relating to a property entered into
within 180 days after the later of the date of acquisition of such property by
the Company or a Restricted Subsidiary or the date of the completion of
construction or commencement of full operations on such property, whichever is
later;

     (c) a Sale-Leaseback Transaction where the Company, within 365 days after
such Sale-Leaseback Transaction, applies or causes to be applied to the
retirement of any Funded Debt of the Company or any Restricted Subsidiary
(other than Funded Debt which by its terms or the terms of the instrument by
which it was issued is subordinate in right of payment to the Notes) proceeds
of the sale of such property, but only to the extent of the amount of proceeds
so applied;

     (d) a Sale-Leaseback Transaction where the Company or any Restricted
Subsidiary would, on the effective date of such sale or transfer, be entitled,
pursuant to this Indenture, to issue, assume or guarantee Indebtedness secured
by a Lien upon the relevant property, at least equal in amount to the then
present value (discounted at the actual rate of interest of the Sale-Leaseback
Transaction) of the obligation for the net rental payments in respect of such
Sale-Leaseback Transaction without equally and ratably securing the Notes;

     (e) a Sale-Leaseback Transaction between the Company and any Restricted
Subsidiary or among Restricted Subsidiaries, provided that the lessor shall be
the Company or a wholly-owned Restricted Subsidiary; and

     (f) a Sale-Leaseback Transaction which has a lease of no more than three
years in length.

          Notwithstanding the foregoing, the Company may, and may permit any
Restricted Subsidiary to, effect any Sale-Leaseback Transaction involving any
real or tangible personal property which is not a Permitted Sale-Leaseback
Transaction, provided that the aggregate net sales proceeds from all
Sale-Leaseback Transactions which are not Permitted Sale-Leaseback
Transactions, together with all Indebtedness secured by Liens other than
Permitted Liens, does not exceed 20% of the total consolidated stockholders’
equity of the Company as shown on the most recent consolidated balance sheet
that is contained or incorporated in the latest annual report on Form 10-K (or
equivalent report) or quarterly report on Form 10-Q (or equivalent report)
filed with the SEC, and is as of a date not more than 181 days prior to the
date of determination, in the case of the consolidated balance sheet contained
or incorporated in an annual report on Form 10-K, or 135 days prior to the date
of determination, in the case of the consolidated balance sheet contained in
the quarterly report on Form 10-Q.

     Section 4.8. Furnishing Guarantees. The Company shall cause any
Subsidiary formed or acquired after the Issue Date, other than its finance
company Subsidiaries and any foreign

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Subsidiaries, that guarantees any Indebtedness of the Company or any other
Subsidiary, other than guarantees by Subsidiaries of U.S. Home Corporation
solely of U.S. Home Corporation’s obligations as a guarantor under the Senior
Secured Credit Facilities to become a Guarantor by causing, as promptly as
practicable, but in any event not later than the earlier of (i) 15 Business
Days after the end of the fiscal quarter in which such Subsidiary was formed or
acquired or (ii) the date on which such Subsidiary becomes a guarantor of any
other Indebtedness of the Company or any Subsidiary, such Subsidiary to execute
and deliver to the Trustee a Guarantee in substantially the form of Exhibit F
hereto and the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in the Indenture
and this Supplemental Indenture relating to the proposed action have been
complied with, and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

ARTICLE V.

SUCCESSOR CORPORATION

     Section 5.1. Company May Consolidate, etc., Only on Certain Terms. The
Company will not consolidate with or merge into any other corporation or
convey, transfer or lease its properties and assets substantially as an
entirety to any Person, unless:

     (1) the corporation formed by the consolidation or into which the
Company is merged or the person which acquires by conveyance or transfer,
or which leases, the properties and assets of the Company substantially
as an entirety will be a corporation organized and existing under the
laws of the United States of America, a State of the United States of
America or the District of Columbia and expressly assumes, by a one or
more supplemental indentures, executed and delivered to the Trustee, in
form satisfactory to the Trustee, the due and punctual payment of the
principal of, premium, if any, and interest, if any, on all the Notes and
the performance of every covenant of this Indenture and of all
Supplemental Indentures to be performed or observed by the Company;

     (2) immediately after giving effect to the transaction, no Event of
Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, will have occurred and be continuing; and

     (3) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that the
consolidation, merger, conveyance, transfer or lease and the supplemental
indenture (or the supplemental indentures together) comply with this
Article and that all the conditions precedent relating to the transaction
set forth in this Section have been fulfilled.

     Section 5.2. Successor Corporation Substituted. Upon any event described
in Section 5.1, the successor corporation will succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, and, except in connection with a lease transaction, the predecessor
corporation will be relieved of all obligations and covenants under this
Indenture.

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ARTICLE VI.

DEFAULTS AND REMEDIES

     Section 6.1. Events of Default.

          An “Event of Default” occurs if:

     (1) a default by the Company in the payment when due of interest on
the Notes, which default continues for a period of 30 days;

     (2) a default by the Company in the payment when due of the
principal or Redemption Price due with respect to the Notes;

     (3) a default by the Company or any Restricted Subsidiary with
respect to its obligation to pay Indebtedness for borrowed money (other
than any Non-Recourse Indebtedness), which default shall have resulted in
the acceleration of, or be a failure to pay at final maturity,
Indebtedness aggregating more than $50 million;

     (4) a failure to perform any other covenant or warranty of the
Company herein, which continues for 30 days after written notice;

     (5) final judgments or orders are rendered against the Company or
any Restricted Subsidiary which require the payment by the Company or any
Restricted Subsidiary of an amount (to the extent not covered by
insurance) in excess of $50 million and such judgments or orders remain
unstayed or unsatisfied for more than 60 days and are not being contested
in good faith by appropriate proceedings;

     (6) the Company or any Restricted Subsidiary, pursuant to any
Bankruptcy Law applicable to the Company or such Restricted Subsidiary:
(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 any substantial part of its property; or (D)
makes a general assignment for the benefit of its creditors; or

     (7) a court of competent jurisdiction enters an order or decree
under any applicable Bankruptcy Law: (A) for relief in an involuntary
case against the Company or any Restricted Subsidiary; (B) appointing a
Custodian of the Company or any Restricted Subsidiary or for any
substantial part of its respective property; or (C) ordering its winding
up or liquidation of the Company or any Restricted Security; and the
order or decree remains unstayed and in effect for 90 days.

          Each of the occurrences described in clauses (1) through (7) will
constitute an Event of Default whatever the reason for the occurrence and
whether it is voluntary or involuntary or is effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body.

          The term “Bankruptcy Law” means Title 11 of the United States Code or any
similar United States Federal or State law for the relief of debtors. The term
“Custodian” means

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any receiver, trustee, assignee, liquidator, custodian or similar official
under any Bankruptcy Law.

          A Default under clause (4) of this Section is not an Event of Default
until the Trustee notifies the Company, or the Holders of at least 25% in
principal amount of the then outstanding Notes with regard to which the Company
has failed to comply with a covenant or agreement notify the Company and the
Trustee, of the Default and the Company does not cure the Default within 45
days after the giving of the notice. The notice must specify the Default,
demand that it be remedied and state that the notice is a “Notice of Default.”

          The Company will deliver to the Trustee, within 20 days after it occurs,
written notice in the form of an Officers’ Certificate of any event of which
the Company is aware which with the giving of notice and the lapse of time
would become an Event of Default under clause (4), its status and what action
the Company is taking or proposes to take with respect to it.

     Section 6.2. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default occurs and is continuing, unless the principal of the Notes
has already become due and payable, the Trustee by notice to the Company, or
the Holders of not less than 25 percent in aggregate principal amount of the
Notes then outstanding by notice to the Company and the Trustee may declare the
outstanding principal of the Notes and any accrued and unpaid interest through
the date of such declaration on all of the Notes to be immediately due and
payable. Upon such a declaration, such outstanding principal amount and
accrued and unpaid interest, if any, shall be due and payable immediately. If
an Event of Default specified in Section 6.1(6) or (7) of this Indenture occurs
and is continuing, the outstanding principal amount of the Notes shall
automatically become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holders. The Holders of a
majority in aggregate principal amount of the Notes then outstanding, on behalf
of the Holders of all of the Notes, by notice to the Company and the Trustee
(and without notice to any other Holder), may rescind any acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived except
nonpayment of the outstanding principal amount of any of the Notes that has
become due solely as a result of acceleration and if all amounts due to the
Trustee under Section 7.7 of this Indenture have been paid. No such rescission
shall affect any subsequent Default or Event of Default or impair any right
consequent thereto.

          In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned
because of such waiver or rescission and annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such
case the Company, the Holders of Notes, and the Trustee shall be restored
respectively to their several positions and rights hereunder and all rights,
remedies and powers of the Company, the Holders of Notes, and the Trustee shall
continue as though no such proceeding had been taken.

          The Trustee shall within 90 days after a Trust Officer has knowledge of
the occurrence of a Default or any Event of Default, mail to all Holders, as
the names and addresses of such Holders appear upon the Note register, notice
of all Defaults or Events of Default known to a Trust Officer, unless such
Default or Event of Default is cured or waived before the giving

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of such notice and provided that, except in the case of default in the
payment of the principal, interest or Redemption Price, as the case may be, on
any of the Notes, the Trustee shall be protected in withholding such notice if
and so long as a trust committee of directors and/or officers of the Trustee in
good faith determines that the withholding of such notice is in the interest of
the Holders.

          The Holders of a majority in principal amount of the Notes then
outstanding shall have the right to direct the time, method and place of
conducting any proceedings for any remedy available to the Trustee, subject to
the limitations specified herein.

     Section 6.3. Other Remedies. If an Event of Default as to a series occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal of, premium, if any, and interest, if any, on the Notes or
to enforce the performance of any provision under this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of
the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Securityholder in exercising any right or remedy
accruing upon an Event of Default will 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 6.4. Waiver of Existing Defaults. The Holders of a majority in
aggregate principal amount of the Notes then outstanding, on behalf of the
Holders of all the Notes, by notice to the Trustee may consent to the waiver of
any past Default with regard to the Notes and its consequences except (i) a
default in the payment of interest or premium, if any, on, or the principal of,
Notes, or (ii) a default in respect of a covenant or a provision that under
Section 9.2 cannot be modified or amended without the consent of the Holders of
all Notes then outstanding. The defaults described in clauses (i) and (ii) in
the previous sentence may be waived with the consent of the Holders of all
Notes then outstanding. When a Default or Event of Default is waived, it is
deemed cured and not continuing, but no waiver will extend to any subsequent or
other Default or impair any consequent right.

     Section 6.5. Control by Majority. The Holders of a majority in principal
amount of the Notes then outstanding may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee with regard
to the Notes or of exercising any trust or power conferred on the Trustee with
regard to the Notes. However, the Trustee may refuse to follow any direction
that conflicts with law or this Indenture or, subject to Section 7.1, that the
Trustee determines is unduly prejudicial to the rights of other Holders or that
would involve the Trustee in personal liability provided, however, that the
Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction. Prior to taking any action as a result of a
direction given under this Section, the Trustee will be entitled to
indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking that action.

     Section 6.6. Payments of Notes on Default; Suit Therefor. The Company
covenants that upon the occurrence of an Event of Default described in Section
6.1(1) or (2), then, upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the holders of the

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Notes, the whole amount that will then have become due and payable on all
such Notes for principal, premium, if any, and interest, with interest on the
overdue principal and premium, if any, and (to the extent that payment of such
interest is enforceable under applicable law) on the overdue installments of
interest at the rate borne by the Notes; and, in addition, such further amount
as will be sufficient to cover the costs and expenses of collection, including
a reasonable compensation to the Trustee, its agents, attorneys and counsel,
and any expenses or liabilities incurred by the Trustee hereunder other than
through its negligence or bad faith. Until such demand by the Trustee, the
Company may pay the principal of and premium, if any, and interest on the Notes
to the registered Holders, whether or not the Notes are overdue.

     Section 6.7. Limitation on Suits. A Holder may not pursue any remedy with
respect to this Indenture unless:

          (1) the Holder gives to the Trustee written notice stating that an Event
of Default is continuing;

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

          (3) such Holder or Holders offer to the Trustee reasonable security or
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 the request and the offer of security or indemnity, and the Event of
Default has not been waived; and

          (5) the Trustee has received no contrary direction from the Holders of a
majority in principal amount of the Notes then outstanding during such 60-day
period.

          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 6.8. Collection Suit by Trustee. If an Event of Default in
payment of principal, premium, if any, or interest, if any, specified in clause
(1) or (2) of Section 6.1 occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal, premium, if any, and interest remaining
unpaid (together with interest on that unpaid interest to the extent lawful)
and the amounts provided for in Section 7.7.

     Section 6.9. 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 and the Holders allowed in any
judicial proceedings relative to the Company, its creditors or its property
and, unless prohibited by law or applicable regulations, may vote on behalf of
the Holders in any election of a trustee in bankruptcy or other person
performing similar functions, and any Custodian in any such judicial proceeding
is hereby authorized by each Holder to make payments to the Trustee and, if the
Trustee consents to the making of such payments directly to the Holders, to pay
to the Trustee any amount due it for the

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reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and its counsel, and any other amounts due the Trustee
under Section 7.7.

     Section 6.10. Restoration of Positions. If a judicial proceeding by the
Trustee or a Holder to enforce any right or remedy under this Indenture is
dismissed or decided favorably to the Company, except as otherwise provided in
the judicial proceeding, the Company, the Trustee and the Holders will be
restored to the positions they would have been in if the judicial proceeding
had not been instituted.

     Section 6.11. Priorities. If the Trustee collects any money pursuant to
this Article VI with respect to the Notes, it will pay out the money or
property in the following order:

          FIRST: to the Trustee for amounts due under Section 7.7;

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

          THIRD: to the Company.

          The Trustee may fix a record date and payment date for any payment to the
Holders pursuant to this Section. At least 15 days before the record date, the
Company will mail to each Holder and the Trustee a notice that states the
record date, the payment date and the amount to be paid.

     Section 6.12. Undertaking for Costs. In any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Trustee
for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant. This Section 6.12 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.7, or a suit by Holders of in
aggregate more than 10% in principal amount of the Notes then outstanding, or
to any suit instituted by any Holder for the enforcement of the payment of the
principal of, premium, if any, or interest on any Note held by that Holder on
or after the due date provided in the Note.

     Section 6.13. Stay, Extension or Usury Laws. The Company agrees (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead, or in any manner whatsoever claim, and will resist any and all efforts
to be compelled to take the benefit or advantage of, any stay or extension law
or any usury or other law, wherever enacted, now or at any subsequent time in
force, which would prohibit or forgive the Company from paying all or any
portion of the principal of, premium, if any, and/or interest on any of the
Notes as contemplated in this Indenture, or which may affect the covenants or
performance of this Indenture, and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and agrees that it will not hinder, delay or impede the execution of any
power granted to the Trustee in this Indenture, but (to the extent that it may

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lawfully do so) will suffer and permit the execution of any such power as
though no such law had been enacted.

     Section 6.14. Liability of Stockholders, Officers, Directors and
Incorporators. No stockholder, officer, director or incorporator, as such,
past, present or future, of the Company, or any of its successor corporations,
will have any personal liability in respect of the Company’s obligations under
this Indenture or any Notes by reason of his or its status as such stockholder,
officer, director or incorporator; provided, however, that nothing in this
Indenture or in the Notes will prevent recourse to and enforcement of the
liability of any stockholder or subscriber to Capital Stock in respect of
shares of Capital Stock which have not been fully paid up.

ARTICLE VII.

TRUSTEE

     Section 7.1. Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee
will exercise the rights and powers vested in it by this Indenture and use the
same degree of care and skill in their exercise as a prudent 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:

     (i) the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture and no implied
covenants or obligations will be read into this Indenture against the
Trustee; and

     (ii) the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed in them, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture in the absence of bad faith on the
Trustee’s part; provided, however, that the Trustee will examine the
certificates and opinions to determine whether or not they substantially
conform to the requirements of this Indenture.

     (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 7.1;

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

     (3) the Trustee will 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 6.5; and

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     (4) the Trustee will not be required to expend or risk its own
funds or otherwise incur financial liability in the performance of
any of its duties under this Indenture or any Supplemental
Indenture or in the exercise of any of its rights or powers, if it
has reasonable grounds to believe repayment of the funds or
adequate indemnity against the risk or liability is not reasonably
assured to it.

     (d) Every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Trustee is subject to the
provisions of this Section 7.1 and to the provisions of the TIA.

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

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

     Section 7.2. Rights of Trustee.

     (a) The Trustee may rely on any document 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.

     (b) Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel which conforms to Section 11.5.
The Trustee will not be liable for any action it takes or omits to take in good
faith in reliance on such an Officers’ Certificate or Opinion of Counsel.

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

     (d) The Trustee will not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers, except conduct which constitutes willful misconduct, negligence or bad
faith.

     (e) The Trustee may consult with counsel, and the Trustee will not be
liable for any action it takes or omits in reliance on, and in accordance with,
written advice of counsel.

     (f) The Trustee will not be required to investigate any facts or matters
stated in any document, but if it decides to investigate any matters or facts,
the Trustee or its agents or attorneys will be entitled to examine the books,
records and premises of the Company.

     Section 7.3. Individual Rights of Trustee. The Trustee in its individual
or any other capacity may become the owner or pledgee of Notes and may
otherwise deal with the Company or any of its affiliates with the same rights
it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar
or co-paying agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

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     Section 7.4. Trustee’s Disclaimer. The Trustee (i) is not responsible for
and makes no representation as to the validity or adequacy of this Indenture,
(ii) will not be accountable for the Company’s use of the proceeds from the
Notes, and (iii) will not be responsible for any statement of the Company in
this Indenture, other than the Trustee’s certificate of authentication, or in
any document used in the sale of the Notes, other than statements, if any,
provided in writing by the Trustee for use in such a prospectus.

     Section 7.5. Notice of Defaults. The Trustee will give to the Holders
notice of any Default with regard to the Notes known to the Trustee, within 90
days after it occurs; provided, that, except in the case of a Default in the
payment of the principal of, or premium, if any, or interest on any Note, the
Trustee will be protected in withholding notice of the Default if and so long
as a committee of its Trust Officers in good faith determines that the
withholding of the notice is in the interests of the Holders.

     Section 7.6. Reports by Trustee. Within 60 days after each November 30
beginning with the November 30 following the date of this Indenture, the
Trustee will mail to each Holder, at the name and address which appears on the
registration books of the Company, and to each Holder who has, within the two
years preceding the mailing, filed that person’s name and address with the
Trustee for that purpose and each Holder whose name and address have been
furnished to the Trustee pursuant to Section 2.5, a brief report dated as of
that November 30 which complies with TIA Section 313(a). The Trustee also will
comply with TIA Section 313(b).

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

     Section 7.7. Compensation and Indemnity. The Company will pay to the
Trustee from time to time reasonable compensation for its services. The
Trustee’s compensation will not be limited by any law on compensation of a
trustee of an express trust. The Company will reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its
services. Those expenses will include the reasonable compensation and
expenses, disbursements and advances of the Trustee’s agents, counsel,
accountants and experts. The Company will indemnify the Trustee against any
and all loss, liability or expense (including reasonable attorneys’ fees)
incurred by it in connection with the administration of the trust created by
this Indenture and the performance of its duties under this Indenture. The
Trustee will notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company will not relieve
the Company of its obligations under this Section. The Company will defend the
claim and the Trustee may have separate counsel and the Company will pay the
fees and expenses of such counsel. The Company need not pay for any settlement
made without its consent. The Company need not reimburse any expense or
indemnify against any loss, expense or liability incurred by the Trustee to the
extent it is due to the Trustee’s own willful misconduct, negligence or bad
faith.

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          To secure the Company’s obligation to make payments to the Trustee under
this Section 7.7, the Trustee will have a lien prior to the Notes on all money
or property held or collected by the Trustee, other than money or property held
in trust to pay principal or interest on the Notes. Those obligations of the
Company will survive the satisfaction and discharge of this Indenture.

          When the Trustee incurs expenses or renders services after an Event of
Default specified in clause (6) or (7) of Section 6.1 occurs, the expenses and
the compensation for the services of the Trustee are intended to constitute
expenses of administration under any Bankruptcy Law.

          For purposes of this Section 7.7, “Trustee” will include any predecessor
Trustee, but the willful misconduct, negligence or bad faith of any Trustee
will not affect the rights of any other Trustee under this Section 7.7.

     Section 7.8. Replacement of Trustee. The Trustee may resign at any time
by so notifying the Company. The Holders of a majority in aggregate principal
amount of the Notes then outstanding may remove the Trustee by so notifying the
Trustee and the Company and may appoint a successor Trustee. The Company may
remove the Trustee if:

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

          (2) the Trustee is adjudged bankrupt or insolvent or an order for relief
is entered with respect to the Trustee under any bankruptcy law;

          (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 Company will promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in aggregate principal amount of the Notes then outstanding may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

          No removal or appointment of a Trustee will be valid if that removal or
appointment would conflict with any law applicable to the Company.

          A successor Trustee will deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Immediately after that, the
retiring Trustee will, subject to the lien provided for in Section 7.7,
transfer all property held by it as a Trustee to the successor Trustee, the
resignation or removal of the retiring Trustee will become effective, and the
successor Trustee will have all the rights, powers and duties of the Trustee
under this Indenture. A successor Trustee will mail notice of its succession to
each Holder.

          If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or
the Holders of a majority in

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aggregate principal amount of the Notes then outstanding may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

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

          Notwithstanding the replacement of the Trustee pursuant to this Section,
the Company’s obligations under Section 7.7 will continue for the benefit of
the retiring Trustee.

     Section 7.9. Successor Trustee by Merger, etc. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust assets to, another Person, the resulting, surviving
or transferee Person will, without any further act, be the successor Trustee.

          If at the time a successor by merger, conversion or consolidation to the
Trustee succeeds to the trusts created by this Indenture any of the Notes have
been authenticated but not delivered, the successor to the Trustee may adopt
the certificate of authentication of the predecessor Trustee, and deliver the
Notes which were authenticated by the predecessor Trustee; and if at that time
any of the Notes have not been authenticated, the successor to the Trustee may
authenticate those Notes either in the name of the predecessor or in its own
name as the successor to the Trustee; and in either case the certificates of
authentication will have the full force provided in this Indenture for
certificates of authentication.

     Section 7.10. Eligibility; Disqualification. The Trustee will at all
times satisfy the requirements of TIA Section 310(a). The Trustee will at all
times have a combined capital and surplus of at least $50,000,000 as set forth
in its most recently published annual report of condition, which will be deemed
for this paragraph to be its combined capital and surplus. The Trustee will
comply with TIA Section 310(b), including the optional provision permitted by
the second sentence of TIA Section 310(b)(9).

     Section 7.11. Preferential Collection of Claims. The Trustee will comply
with TIA Section 311(a), excluding any creditor relationship listed in TIA
Section 311(b). A Trustee who has resigned or been removed will be subject to
TIA Section 311(a) to the extent indicated.

ARTICLE VIII.

DISCHARGE OF INDENTURE

     Section 8.1. Termination of the Company’s Obligations. When (1) the
Company shall deliver to the Trustee for cancellation all Notes theretofore
authenticated (other than any Notes which have been destroyed, lost or stolen
and in lieu of or in substitution for which other Notes shall have been
authenticated and delivered) and not theretofore canceled, or (2) all the Notes
not theretofore canceled or delivered to the Trustee for cancellation shall
have become due and payable, or are by their terms to become due and payable
within one year, whether at stated maturity or upon redemption and the Company
shall deposit with the Trustee, in trust, monies and/or U.S. Government
Obligations sufficient to pay at the Maturity Date or Redemption Date, as
applicable (other than any Notes which shall have been mutilated, destroyed,
lost or stolen and

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in lieu of or in substitution for which other Notes shall have been
authenticated and delivered) not theretofore canceled or delivered to the
Trustee for cancellation, including the principal amount and interest accrued
to the Maturity Date or Redemption Date, as applicable, and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect with respect
to the Notes (except as to (i) remaining rights of registration of transfer,
substitution and exchange of Notes, (ii) rights hereunder of Holders to receive
payments of the principal amount, including interest due with respect to the
Notes and the other rights, duties and obligations of Holders, as beneficiaries
hereof with respect to the amounts, if any, so deposited with the Trustee and
(iii) the rights, obligations and immunities of the Trustee under this
Indenture with respect to the Notes), and the Trustee, on demand of the Company
accompanied by an Officers’ Certificate and an Opinion of Counsel as required
by Section 8.3 and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture with
respect to the Notes; the Company, however, hereby agrees to reimburse the
Trustee for any costs or expenses thereafter reasonably and properly incurred
by the Trustee and to compensate the Trustee for any services thereafter
reasonably and properly rendered by the Trustee in connection with this
Indenture or the Notes.

     Section 8.2. Application of Trust Money. Subject to Section 8.4, the
Trustee will hold in trust money or U.S. Government Obligations deposited with
it pursuant to Section 8.1. It will apply the deposited money and the money
from the U.S. Government Obligations through the Paying Agent and in accordance
with this Indenture to the payment of principal of, premium, if any, and
interest, if any, on the Notes with regard to which the money or U.S.
Government Obligations were deposited.

     Section 8.3. Officers’ Certificate; Opinion of Counsel. Upon any
application or demand by the Company to the Trustee to take any action under
Section 6.1, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, and an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

               Each such Officers’ Certificate and Opinion of Counsel provided for in
this Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant pursuant to the previous paragraph shall comply with the
provisions of Section 11.5.

     Section 8.4. Repayment to the Company. The Trustee and the Paying Agent
will promptly pay to the Company upon request any excess money or securities
held by them at any time. The Trustee and the Paying Agent will pay to the
Company upon request any money held by them for the payment of principal,
premium or interest that remains unclaimed for two years. After such payment,
all liability of the Trustee and the Paying Agent with respect to that money
will cease.

     Section 8.5. Reinstatement. If the Trustee or the Paying Agent is unable
to apply any money in accordance with Section 8.2 by reason of any order or
judgment of any court of governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this
Indenture shall be revived and reinstated with respect to the

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Notes as though no deposit had occurred pursuant to Section 8.1 until such
time as the Trustee or the Paying Agent is permitted to apply all such money in
accordance with Section 8.2, provided, however, that if the Company makes any
payment of principal amount or Redemption Price of or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

ARTICLE IX.

MODIFICATION OF THE INDENTURE

     Section 9.1. Without Consent of Holders. The Company and the Trustee may
amend or supplement this Indenture or the Notes without notice to or consent of
any Holder:

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

     (2) to comply with Article 5;

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

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

          After an amendment under this Section becomes effective, the Company will
mail to the Holders a notice briefly describing the amendment. The failure to
give such notice to all Holders, or any defect in a notice, will not impair or
affect the validity of an amendment under this Section.

     Section 9.2. With Consent of Holders. The Company and the Trustee may
amend or supplement this Indenture or the Notes without notice to any Holder
but with the written consent of the Holders of a majority in aggregate
principal amount of the Notes then outstanding. The Holders of a majority in
principal amount of the Notes then outstanding may waive compliance by the
Company with any provision of this Indenture or the Notes without notice to any
Holder. However, without the consent of the Holder so affected, no amendment,
supplement or waiver, including a waiver pursuant to Section 6.4, may:

     (1) extend the fixed maturity of any Note or any installment of
interest thereon, reduce the principal amount, interest rate, Redemption
Price, or amount due upon acceleration, impair the right of a Holder to
institute suit for the payment thereof, change the currency in which the
Notes are payable;

     (2) reduce the percentage of Notes required to consent to an
amendment, supplement or waiver;

     (3) release any Guarantor except as provided in Article X hereof; or

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     (4) make any change in Section 6.4 or 6.8 or the second sentence of
this Section.

          It will not be necessary for the consent of the Holders under this Section
to approve the particular form of any proposed amendment, supplement or waiver,
but it will be sufficient if the consent approves the substance of the
amendment, supplement or waiver.

          SECTION 9.03. Compliance with Trust Indenture Act. Every amendment or
supplement to this Indenture or the Notes will comply with the TIA as then in
effect.

          SECTION 9.04. Revocation and Effect of Consents. A consent to an
amendment, supplement or waiver by a Holder will bind the Holder and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note, even if notation of the consent is not made on
any Note. However, any such Holder or subsequent Holder may revoke the consent
as to the Holder’s Note or portion of a Note. For a revocation to be
effective, the Trustee must receive notice of the revocation before the date
the amendment, supplement or waiver becomes effective. After an amendment,
supplement or waiver becomes effective in accordance with its terms, it will
bind every Holder of every Note.

          SECTION 9.05. Notation on or Exchange of Notes. If an amendment changes
the terms of the Notes, the Trustee may require the Holder of a Note to deliver
the Holder’s Note to the Trustee, who will place an appropriate notation about
the amendment, supplement or waiver on the Note and will return it to the
Holder. Alternatively, the Company may, in exchange for the Note, issue, and
the Trustee will authenticate, a new Note that reflects the amendment,
supplement or waiver.

          SECTION 9.06. Trustee to Sign Amendments, etc. The Trustee will sign any
amendment, supplement or waiver authorized pursuant to Article II or this
Article IX if the amendment, supplement or waiver does not adversely affect the
rights, liabilities or immunities of the Trustee. If it does adversely affect
those rights, liabilities or immunities, the Trustee may but need not sign it.
The Company may not sign an amendment or supplement until the amendment or
supplement is approved by an appropriate Board Resolution.

ARTICLE X.

GUARANTEE OF NOTES

     Section 10.1. Unconditional Guarantee. Each Guarantor, if any, hereby
jointly and severally, unconditionally and irrevocably guarantees (such
guarantee to be referred to herein as a “Guarantee”) to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, that: (a) all amounts due with respect to the Notes
shall be duly and punctually paid in full when due, whether at maturity, by
acceleration or otherwise, and interest on the overdue principal and (to the
extent permitted by law) interest, if any, on the Notes and all other
obligations of the Company or the Guarantors to the Holders or the Trustee
hereunder or thereunder and all other obligations shall be promptly paid in
full or performed, all in accordance with the terms hereof and thereof; and (b)
in case of any extension of time of payment or renewal of any Notes or any of
such other obligations, the same shall be promptly

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paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at maturity, by acceleration or otherwise.
Failing payment when due of any amount so guaranteed, or failing performance of
any other obligation of the Company to the Holders under this Indenture or
under the Notes, for whatever reason, each Guarantor shall be obligated to pay,
or to perform or cause the performance of, the same immediately. An Event of
Default under this Indenture or the Notes shall constitute an event of default
under this Guarantee, and shall entitle the Holders of Notes to accelerate the
obligations of the Guarantors hereunder in the same manner and to the same
extent as the obligations of the Company.

          Each of the Guarantors hereby agrees that its obligations hereunder shall
be unconditional, irrespective of the validity, regularity or enforceability of
the Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, any release of any other Guarantor, the recovery of any
judgment against the Company, any action to enforce the same, whether or not a
Guarantee is affixed to any particular Note, or any other circumstance which
might otherwise constitute a legal or equitable discharge or defense of a
guarantor. Each of the Guarantors hereby waives the benefit of diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenants that its Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes, this Indenture and this
Guarantee. This Guarantee is a guarantee of payment and not of collection.
Each Guarantor further agrees that, as between it, on the one hand, and the
Holders of Notes and the Trustee, on the other hand, (a) subject to this
Article X, the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article VI hereof for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (b) in the
event of any acceleration of such obligations as provided in Article VI hereof,
such obligations (whether or not due and payable) shall forthwith become due
and payable by the Guarantors for the purpose of this Guarantee.

          No stockholder, officer, director, employee or incorporator, past, present
or future, of any Guarantor, as such, shall have any personal liability under
this Guarantee by reason of his, her or its status as such stockholder,
officer, director, employee or incorporator.

          Each Guarantor that makes a payment or distribution under its Guarantee
shall be entitled to a contribution from each other Guarantor in an amount pro
rata, based on the net assets of each Guarantor, determined in accordance with
GAAP.

     Section 10.2. Limitations on Guarantees; Release or Suspension of
Particular Guarantors’ Obligations. The obligations of each Guarantor under
its Guarantee will be limited to the maximum amount which, after giving effect
to all other contingent and fixed liabilities of such Guarantor and after
giving effect to any collections from or payments made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under its
Guarantee or pursuant to its contribution obligations under this Indenture,
will result in the obligations of such Guarantor under its Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or
state law.

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          The Guarantors shall include (i) each of the Guarantors named on the
signature pages of this Indenture, (ii) each of the Company’s Subsidiaries that
in the future executes a supplemental indenture in which such Subsidiary agrees
to be bound by the terms hereof as a Guarantor; and (iii) any subsidiary that
is a “Restricted Subsidiary” pursuant to the Indenture, dated as of May 3,
2000, by and among the Company, the guarantors named therein and the Trustee,
relating to the Company’s 9.95% Senior Notes due 2009, whether formed or
acquired after the Issue Date, that guarantees any outstanding Indebtedness of
the Company or any Subsidiary.

          If any Guarantor is released from its guarantee of the outstanding
Indebtedness of the Company or any Restricted Subsidiary, such Guarantor shall
be automatically released from its obligations as Guarantor, and from and after
such date, such Guarantor shall cease to constitute a Guarantor.

          The obligations of a Guarantor will be automatically suspended, and such
Guarantor shall not constitute a Guarantor and shall not have any obligations
with regard to the Notes during any period when the principal amount of the
Company’s obligations and any Restricted Subsidiary’s obligations with regard
to the Company’s obligations, in each case other than the Notes and other
Indebtedness containing provisions similar to this, that the Guarantor is
guaranteeing total less than $75 million.

     Section 10.3. Execution and Delivery of Guarantee. To further evidence
the Guarantee set forth in Section 10.1, each Guarantor hereby agrees to
execute and deliver to the Trustee a Guarantee in substantially the form of
Exhibit F hereto. Such Guarantee shall be executed on behalf of each Guarantor
by either manual or facsimile signature of an officer of each Guarantor, each
of whom, in each case, shall have been duly authorized to so execute by all
requisite corporate action. The validity and enforceability of any Guarantee
shall not be affected by the fact that it is not affixed to any Note or Notes.

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

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

     Section 10.4. Release of a Guarantor due to Extraordinary Events. If no
Default exists or would exist under this Indenture, upon the sale or
disposition of all of the Capital Stock of a Guarantor by the Company or a
Subsidiary of the Company, or upon the consolidation or merger of a Guarantor
with or into any Person (in each case, other than to the Company or an
Affiliate of the Company or Subsidiary), or if any Guarantor is dissolved or
liquidated, such Guarantor and each Subsidiary of such Guarantor that is also a
Guarantor shall be deemed released from all obligations under this Article X
without any further action required on the part of the Trustee or any Holder.

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

          Nothing contained in this Indenture or in any of the Notes shall prevent
any consolidation or merger of a Guarantor with or into the Company or another
Guarantor or shall prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Company or
another Guarantor.

     Section 10.5. Waiver of Subrogation. Until this Indenture is discharged
and all of the Notes are discharged and paid in full, each Guarantor hereby
irrevocably waives and agrees not to exercise any claim or other rights which
it may now or hereafter acquire against the Company that arise from the
existence, payment, performance or enforcement of the Company’s obligations
under the Notes or this Indenture and such Guarantor’s obligations under this
Guarantee and this Indenture, in any such instance including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution,
indemnification, and any right to participate in any claim or remedy of the
Holders against the Company, 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 Company, 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 any
amounts owing to the Trustee or the Holders of Notes under the Notes, this
Indenture, or any other document or instrument delivered under or in connection
with such agreements or instruments, 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 Trustee or the Holders
and shall forthwith be paid to the Trustee for the benefit of itself or such
Holders to be credited and applied to the obligations in favor of the Trustee
or the Holders, as the case may be, whether matured or unmatured, in accordance
with the terms of this Indenture. Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this Section
10.5 is knowingly made in contemplation of such benefits.

     Section 10.6. No Set-Off. Each payment to be made by a Guarantor
hereunder in respect of the Obligations shall be payable in the currency or
currencies in which such Obligations are denominated, and shall be made without
set-off, counterclaim, reduction or diminution of any kind or nature.

     Section 10.7. Obligations Absolute. The obligations of each Guarantor
hereunder are and shall be absolute and unconditional and any monies or amounts
expressed to be owing or payable by each Guarantor hereunder which may not be
recoverable from such Guarantor on the basis of a Guarantee shall be
recoverable from such Guarantor as a primary obligor and principal debtor in
respect thereof.

     Section 10.8. Obligations Continuing. The obligations of each Guarantor
hereunder shall be continuing and shall remain in full force and effect until
all the obligations have been paid and satisfied in full. Each Guarantor
agrees with the Trustee that it will from time to time deliver to the Trustee
suitable acknowledgments of its continued liability hereunder and under

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any other instrument or instruments in such form as counsel to the Trustee
may advise and as will prevent any action brought against it in respect of any
default hereunder being barred by any statute of limitations now or hereafter
in force and, in the event of the failure of a Guarantor so to do, it hereby
irrevocably appoints the Trustee the attorney and agent of such Guarantor to
make, execute and deliver such written acknowledgment or acknowledgments or
other instruments as may from time to time become necessary or advisable, in
the judgment of the Trustee on the advice of counsel, to fully maintain and
keep in force the liability of such Guarantor hereunder.

     Section 10.9. Obligations Not Reduced. The obligations of each Guarantor
hereunder shall not be satisfied, reduced or discharged except solely by the
payment of such principal, premium, if any, interest, fees and other monies or
amounts as may at any time prior to discharge of this Indenture pursuant to
Article VIII be or become owing or payable under or by virtue of or otherwise
in connection with the Notes or this Indenture.

     Section 10.10. Obligations Reinstated. The obligations of each Guarantor
hereunder shall continue to be effective or shall be reinstated, as the case
may be, if at any time any payment which would otherwise have reduced the
obligations of any Guarantor hereunder (whether such payment shall have been
made by or on behalf of the Company or by or on behalf of a Guarantor) is
rescinded or reclaimed from the Trustee or any of the Holders upon the
insolvency, bankruptcy, liquidation or reorganization of the Company or any
Guarantor or otherwise, all as though such payment had not been made. If
demand for, or acceleration of the time for, payment by the Company is stayed
upon the insolvency, bankruptcy, liquidation or reorganization of the Company,
all such Indebtedness otherwise subject to demand for payment or acceleration
shall nonetheless be payable by each Guarantor as provided herein.

     Section 10.11. Obligations Not Affected. Except as otherwise provided in
Sections 10.2 and 10.4, the obligations of each Guarantor hereunder shall not
be affected, impaired or diminished in any way by any act, omission, matter or
thing whatsoever, occurring before, upon or after any demand for payment
hereunder (and whether or not known or consented to by any Guarantor or any of
the Holders) which, but for this provision, might constitute a whole or partial
defense to a claim against any Guarantor hereunder or might operate to release
or otherwise exonerate any Guarantor from any of its obligations hereunder or
otherwise affect such obligations, whether occasioned by default of any of the
Holders or otherwise, including, without limitation:

     (a) any limitation of status or power, disability, incapacity or other
circumstance relating to the Company or any other person, including any
insolvency, bankruptcy, liquidation, reorganization, readjustment, composition,
dissolution, winding up or other proceeding involving or affecting the Company
or any other person;

     (b) any irregularity, defect, unenforceability or invalidity in respect of
any indebtedness or other obligation of the Company or any other person under
this Indenture, the Notes or any other document or instrument;

     (c) any failure of the Company, whether or not without fault on its part,
to perform or comply with any of the provisions of this Indenture or the Notes,
or to give notice thereof to a Guarantor;

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     (d) the taking or enforcing or exercising or the refusal or neglect to
take or enforce or exercise any right or remedy from or against the Company or
any other Person or their respective assets or the release or discharge of any
such right or remedy;

     (e) the granting of time, renewals, extensions, compromises, concessions,
waivers, releases, discharges and other indulgences to the Company or any other
Person;

     (f) any change in the time, manner or place of payment of, or in any other
term of, any of the Notes, or any other amendment, variation, supplement,
replacement or waiver of, or any consent to departure from, any of the Notes or
this Indenture, including, without limitation, any increase or decrease in any
amount due with respect to any of the Notes;

     (g) any change in the ownership, control, name, objects, businesses,
assets, capital structure or constitution of the Company or a Guarantor;

     (h) any merger or amalgamation of the Company or a Guarantor with any
Person or Persons;

     (i) the occurrence of any change in the laws, rules, regulations or
ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise
affecting, or purporting to amend, vary, reduce or otherwise affect, any of the
Obligations or the obligations of a Guarantor under its Guarantee; and

     (j) any other circumstance (other than by complete, irrevocable payment)
that might otherwise constitute a legal or equitable discharge or defense of
the Company under this Indenture or the Notes or of a Guarantor in respect of
its Guarantee hereunder.

     Section 10.12. Waiver. Without in any way limiting the provisions of
Section 10.1 hereof, each Guarantor hereby waives notice of acceptance hereof,
notice of any liability of any Guarantor hereunder, notice or proof of reliance
by the Holders upon the obligations of any Guarantor hereunder, and diligence,
presentment, demand for payment on the Company, protest, notice of dishonor or
non-payment of any of the Obligations, or other notice or formalities to the
Company or any Guarantor of any kind whatsoever.

     Section 10.13. No Obligation to Take Action Against the Company. Neither
the Trustee nor any other Person shall have any obligation to enforce or
exhaust any rights or remedies or to take any other steps under any security
for the Obligations or against the Company or any other Person or any Property
of the Company or any other Person before the Trustee is entitled to demand
payment and performance by any or all Guarantors of their liabilities and
obligations under their Guarantees or under this Indenture.

     Section 10.14. Dealing with the Company and Others. The Holders, without
releasing, discharging, limiting or otherwise affecting in whole or in part the
obligations and liabilities of any Guarantor hereunder and without the consent
of or notice to any Guarantor, may:

     (a) grant time, renewals, extension, compromises, concessions, waivers,
releases, discharges and other indulgences to the Company or any other Person;

-43-

 

     (b) take or abstain from taking security or collateral from the Company or
from perfecting security or collateral of the Company;

     (c) release, discharge, compromise, realize, enforce or otherwise deal
with or do any act or thing in respect of (with or without consideration) any
and all collateral, mortgages or other security given by the Company or any
third party with respect to the obligations or matters contemplated by this
Indenture or the Notes;

     (d) accept compromises or arrangements from the Company;

     (e) apply all monies at any time received from the Company or from any
security upon such part of the Obligations as the Holders may see fit or change
any such application in whole or in part from time to time as the Holders may
see fit; and

     (f) otherwise deal with, or waive or modify their right to deal with, the
Company and all other Persons and any security as the Holders or the Trustee
may see fit.

     Section 10.15. Default and Enforcement. If any Guarantor fails to pay in
accordance with Section 10.1 hereof, the Trustee may proceed in its name as
trustee hereunder in the enforcement of the Guarantee of any such Guarantor and
such Guarantor’s obligations thereunder and hereunder by any remedy provided by
law, whether by legal proceedings or otherwise, and to recover from such
Guarantor the obligations.

     Section 10.16. Amendment, Etc. No amendment, modification or waiver of
any provision of this Indenture relating to any Guarantor or consent to any
departure by any Guarantor or any other Person from any such provision will in
any event be effective unless it is signed by such Guarantor and the Trustee.

     Section 10.17. Acknowledgment. Each Guarantor hereby acknowledges
communication of the terms of this Indenture and the Notes and consents to and
approves of the same.

     Section 10.18. Costs and Expenses. Each Guarantor shall pay on demand by
the Trustee any and all costs, fees and expenses (including, without
limitation, legal fees on a solicitor and client basis) incurred by the
Trustee, its agents, advisors and counsel or any of the Holders in enforcing
any of their rights under any Guarantee.

     Section 10.19. No Merger or Waiver; Cumulative Remedies. No Guarantee
shall operate by way of merger of any of the obligations of a Guarantor under
any other agreement, including, without limitation, this Indenture. No failure
to exercise and no delay in exercising, on the part of the Trustee or the
Holders, any right, remedy, power or privilege hereunder or under the
Supplemental Indenture or the Notes, shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder or under this Indenture or the Notes preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges in the Guarantee and
under this Indenture, the Notes and any other document or instrument between a
Guarantor and/or the Company and the Trustee are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law.

-44-

 

     Section 10.20. Survival of Obligations. Without prejudice to the survival
of any of the other obligations of each Guarantor hereunder, the obligations of
each Guarantor under Section 10.1 shall survive the payment in full of the
Obligations and shall be enforceable against such Guarantor without regard to
and without giving effect to any defense, right of offset or counterclaim
available to or which may be asserted by the Company or any Guarantor.

     Section 10.21. Guarantee in Addition to Other Obligations. The
obligations of each Guarantor under its Guarantee and this Indenture are in
addition to and not in substitution for any other obligations to the Trustee or
to any of the Holders in relation to this Indenture or the Notes and any
guarantees or security at any time held by or for the benefit of any of them.

     Section 10.22. Severability. Any provision of this Article X which is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction unless its removal would substantially defeat the basic
intent, spirit and purpose of this Indenture and this Article X.

     Section 10.23. Successors and Assigns. Each Guarantee shall be binding
upon and inure to the benefit of each Guarantor and the Trustee and the other
Holders and their respective successors and permitted assigns, except that no
Guarantor may assign any of its obligations hereunder or thereunder.

     Section 10.24. Acknowledgement under TIA. Each Guarantor acknowledges
that, by virtue of its Guarantee, it is becoming an “obligor” on indenture
securities under the TIA.

ARTICLE XI.

MISCELLANEOUS

     Section 11.1. TIA Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control; provided, however, that this Section
11.1 shall not of itself require that this Indenture or the Trustee be
qualified under the TIA or constitute any admission or acknowledgment by any
party hereto that any such qualification is required prior to the time this
Indenture and the Trustee are required by the TIA to be so qualified.

     Section 11.2. Notices.

          Any notices or other communications required or permitted hereunder shall
be in writing, and shall be sufficiently given if made by hand delivery, by
telex, by telecopier or overnight courier guaranteeing next-day delivery or
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

          if to the Company:

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Lennar Corporation

700 N.W. 107th Avenue

Miami, Florida 33172

Attn: General Counsel

          if to the Trustee:

J.P. Morgan Trust Company, N.A.

10151 Deerwood Park Blvd.

Building 400, 5th Floor

Jacksonville, Florida 32256

with a copy to:

J.P. Morgan

Institutional Trust Services

GIS Unit Trust Window

4 New York Plaza, 1st Floor

New York, New York 10004

          Each of the Company and the Trustee by written notice to the other may
designate additional or different addresses for notices to such Person. Any
notice or communication to the Company or the Trustee shall be deemed to have
been given or made as of the date so delivered if hand delivered; when answered
back, if telexed; when receipt is acknowledged, if faxed; and five (5) calendar
days after mailing if sent by registered or certified mail, postage prepaid
(except that a notice of change of address shall not be deemed to have been
given until actually received by the addressee).

          Any notice or communication mailed to a Holder shall be mailed by first
class mail, certified or registered return receipt requested, or by overnight
courier guaranteeing next day delivery to its address as it appears on the
registration books of the Registrar. Any notice or communication shall be
mailed to any Person as described in TIA § 313(c), to the extent required by
the TIA.

          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 above, it is duly given, whether
or not the addressee receives it.

     Section 11.3. Communications by Holders with Other Holders.

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

     Section 11.4. Certificate and Opinion as to Conditions Precedent.

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

-46-

 

	 	(1)	 	an Officers’ Certificate, in form and
substance satisfactory to the Trustee, stating that, in
the opinion of the signers, all conditions precedent to
be performed, if any, provided for in this Indenture
relating to the proposed action have been complied with;
and
	 
	 	(2)	 	an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions
precedent to be performed, if any, provided for in this
Indenture relating to the proposed action have been
complied with (which counsel, as to factual matters, may
rely on an Officers’ Certificate).

     Section 11.5. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture, other than the Officers’ Certificate
required by Section 4.4, 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 reasonably 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 11.6. Rules by Trustee, Paying Agent, Registrar.

          The Trustee may make reasonable rules in accordance with the Trustee’s
customary practices for action by or at a meeting of Holders. The Paying Agent
or Registrar may make reasonable rules for its functions.

     Section 11.7. Legal Holidays.

          If any payment date is due on a day other than a Business Day, such
payment may be made on the next succeeding Business Day, and no interest shall
accrue for the intervening period.

     Section 11.8. Governing Law.

          THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,

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INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS RULES THAT WOULD
APPLY THE LAWS OF ANY OTHER JURISDICTION. Each of the parties hereto agrees to
submit to the jurisdiction of the courts of the State of New York sitting in
the County of New York, or of the United States of America for the Southern
District of New York in any action or proceeding arising out of or relating to
this Indenture.

     Section 11.9. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or any of its Subsidiaries. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

     Section 11.10. No Personal Liability.

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

     Section 11.11. Successors. All agreements of the Company in this
Indenture and the Notes shall bind their successors and permitted assigns. All
agreements of the Trustee in this Indenture shall bind its successors and
permitted assigns.

     Section 11.12. Duplicate Originals. All parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of
them together shall represent the same agreement.

     Section 11.13. Severability. In case any one or more of the provisions in
this Indenture or in the Notes shall be held invalid, illegal or unenforceable,
in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and of the remaining provisions shall not
in any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law.

-48-

 

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

	 	 	 	 	 
	 	 	LENNAR CORPORATION
	 	 	
By:
	 	/s/ Robert Strudler

Name: Robert Strudler

Title:
	 	 	Authorized signatory for each of the
Guarantors listed on Schedule I hereto
	 	 	
By:
	 	/s/ Robert Strudler

Name: Robert Strudler

Title:
	 	 	J.P. MORGAN TRUST COMPANY, N.A.
	 	 	
By:
	 	 /s/ Jane E. Pope

Name: Jane E. Pope

Title:   Vice President

 

 

EXHIBIT A

[FORM OF SERIES A NOTE]

          THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER
OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION
5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

          THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY
(I) TO THE ISSUER OR ANY SUBSIDIARY OF THE ISSUER, (II) TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144A, (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN
RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT), (IV) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (V) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE
IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE U.S., AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.

	 	 	[THE FOREGOING LEGEND MAY BE REMOVED FROM THE SECURITY ON SATISFACTION
OF THE CONDITIONS SPECIFIED IN THE INDENTURE.]

A-1

 

          CUSIP No.:             

LENNAR CORPORATION

5.50% SENIOR NOTES DUE 2014, SERIES A

	 	 	 	 	 
	No.

	 	 	$	 

     Interest Rate: 5.50% per annum.

     Interest Payment Dates: March 1 and September 1, commencing March 1, 2005

     Record Dates: February 15 and August 15

     Lennar Corporation, a Delaware corporation (the “Company,” which term
includes any successor entities), for value received, promises to pay to           
or registered assigns, on September 1, 2014, the principal amount of           
Dollars ($           ), together with interest thereon
as hereinafter provided.

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

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          IN WITNESS WHEREOF, Lennar Corporation has caused this instrument to be
signed manually or by facsimile by its duly authorized officers.

	 	 	 	 	 	 	 
	 	 	 	 	LENNAR CORPORATION
	 	 	 	 	By:
	 	 

Name:

Title:
	Dated:	 	
 

	 	 	 	 
	TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

This is one of the Notes described in

the within-mentioned Indenture.	 	 	 	 
	J.P. MORGAN TRUST COMPANY, N.A., as Trustee
	By:	 	
 

Name:

Title:	 	 	 	 

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(REVERSE OF SECURITY)

5.50% Senior Note due 2014, Series A

          Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to them in the Indenture, dated as of August 12, 2004 (the
“Indenture”), and as amended from time to time, by and between Lennar
Corporation, a Delaware corporation (the “Company”), the Guarantors named
therein and J.P. Morgan Trust Company, N.A. as trustee (the “Trustee”).

1. INTEREST

          The Company promises to pay interest on the principal amount of this Note
at the rate per annum above. Interest on the Notes will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from the Issue Date. The Company shall pay interest semi-annually in arrears
on each Interest Payment Date, commencing as of the Interest Payment Date
referred to above and upon redemption. Interest will be computed on the basis
of a 360-day year of twelve 30-day months and, in the case of a partial month,
the actual number of days elapsed.

          The Company shall pay interest on overdue principal and, to the extent
lawful, on overdue installments of interest (without regard to any applicable
grace periods) from time to time on demand at the rate borne by the Notes.

2. METHOD OF PAYMENT

          Subject to the terms and conditions of the Indenture, the Company shall
(a) pay interest on the Notes (except defaulted interest) to the Persons who
are the registered Holders of Notes at the close of business on the Record Date
immediately preceding the Interest Payment Date even if the Notes are canceled,
transferred or exchanged after such Record Date, and (b) make all other
payments in respect of the Notes to the Persons who are registered Holders of
Notes at the close of business on the Business Day preceding the Redemption
Date or Maturity, as the case may be. Holders must surrender Notes to a Paying
Agent to collect such payments in respect of the Notes referred to in clause
(b) of the preceding sentence. The Company shall pay cash amounts in money of
the United States that at the time of payment is legal tender for payment of
public and private debts. However, the Company may make the cash payments by
check payable in such money.

3. PAYING AGENT, AND REGISTRAR

          Initially, J.P. Morgan Trust Company, N.A., a national banking association
(the “Trustee”), shall act as Paying Agent and Registrar. The Company may
appoint and change any Paying Agent, Registrar or co-registrar without notice,
other than notice to the Trustee. The Company or any of its Subsidiaries or
any of their Affiliates may act as Paying Agent, Registrar or co-registrar.

4. INDENTURE

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          The Company issued the Notes under the Indenture. This Note is one of a
duly authorized issue of Notes of the Company designated as its 5.50% Senior
Notes due 2014, Series A (the “Initial Notes”). The Notes include the Initial
Notes, the Private Exchange Notes and the Unrestricted Notes, as defined below,
issued in exchange for the Initial Notes pursuant to the Registration Rights
Agreement. The Initial Notes, the Private Exchange Notes and the Unrestricted
Notes are treated as a single class of securities under the Indenture. The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (the “TIA”), as
in effect on the date of the Indenture. Notwithstanding anything to the
contrary herein, the Notes are subject to all such terms, and Holders of Notes
are referred to the Indenture and the TIA for a statement of such terms. The
Notes are general unsecured obligations of the Company. Each Holder, by
accepting a Note, agrees to be bound by all of the terms and provisions of the
Indenture, as the same may be amended from time to time in accordance with its
terms.

5. REDEMPTION AT THE OPTION OF THE COMPANY

          No sinking fund is provided for the Notes. The Notes are redeemable as a
whole, or from time to time in part, at any time at the option of the Company
at a Redemption Price equal to the greater of: (a) 100% of their principal
amount; and (b) the present value of the Remaining Scheduled Payments on the
Notes being redeemed on the Redemption Date, discounted to the Redemption Date,
on a semiannual basis, at the Treasury Rate plus 20 basis points (0.20%),
together, in either case, with accrued interest to the Redemption Date on their
principal amount.

6. NOTICE OF REDEMPTION AT THE OPTION OF THE COMPANY

          Notice of redemption at the option of the Company shall be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder of
Notes to be redeemed at the Holder’s registered address. If money sufficient
to pay the Redemption Price of all Notes (or portions thereof) to be redeemed
on the Redemption Date is deposited with the Paying Agent prior to or on the
Redemption Date, interest ceases to accrue on such Notes or portions thereof on
and after such date. Notes in denominations larger than $1,000 may be redeemed
in part but only in integral multiples of $1,000.

7. REGISTRATION RIGHTS

          Pursuant to the Registration Rights Agreement the Company will be
obligated to consummate an exchange offer pursuant to which the Holder of this
Note shall have the right to exchange this Note for the Company’s 5.50% Senior
Notes due 2014, Series B (the “Unrestricted Notes”), which will be registered
under the Securities Act, in like principal amount and having terms identical
in all material respects as the Initial Notes. The Holders of the Initial
Notes shall be entitled to receive certain additional interest payments in the
event such exchange offer is not consummated and upon certain other conditions,
all pursuant to and in accordance with the terms of the Registration Rights
Agreement.

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8. DENOMINATIONS; TRANSFER; EXCHANGE

          The Notes are in registered form, without coupons, in denominations of
$1,000 and integral multiplies of $1,000. A Holder may transfer Notes in
accordance with the Supplemental Indenture and the Indenture. The Registrar
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and to pay any governmental taxes and fees required by
law or permitted by the Supplemental Indenture. The Registrar need not
transfer or exchange any Notes selected for redemption (except, in the case of
a Note to be redeemed in part, the portion of the Note not to be redeemed) or
any Notes for a period of 15 days before any selection of Notes to be redeemed.

9. PERSONS DEEMED OWNERS

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

10. UNCLAIMED MONEY OR PROPERTY

          The Trustee and the Paying Agent shall return to the Company upon written
request any money or property held by them for the payment of any amount with
respect to the Notes that remains unclaimed for two years, provided, however,
that the Trustee or such Paying Agent, before being required to make any such
return, shall at the expense of the Company 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 or property 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 money or property then remaining
shall be returned to the Company. After return to the Company, Holders entitled
to the money or property must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another
Person.

11. AMENDMENT; WAIVER

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Notes may be amended with the written consent of the Holders
of at least a majority in aggregate principal amount of the Notes at the time
outstanding and (ii) certain defaults or noncompliance with certain provisions
may be waived with the written consent of the Holders of a majority in
aggregate principal amount of the Notes at the time outstanding. Subject to
certain exceptions set forth in the Indenture, without the consent of any
Holder, the Company and the Trustee may amend the Indenture or the Notes to
cure any ambiguity, defect or inconsistency, to make any change that does not
adversely affect the right of any Holder, to convey, transfer, assign, mortgage
or pledge to the Trustee as security for the Notes any property or assets, to
evidence the succession of another corporation to the Company (or successive
successions) and the assumption by the successor corporation of the covenants,
agreements and obligations of the Company, to add to the covenants of the
Company such further covenants, restrictions or conditions as the Board of
Directors and the Trustee shall consider to be for the benefit of the Holders
of Notes, and to make the occurrence, or the occurrence and continuance, of a
default in any such additional covenants, restrictions or conditions a Default
or an Event of Default

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permitting the enforcement of all or any of the several remedies provided
in the Indenture, to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Notes, or to modify,
eliminate or add to the provisions of the Indenture to such extent as shall be
necessary for the Indenture to comply with the TIA, or under any similar
federal statute hereafter enacted.

12. DEFAULTS AND REMEDIES

          Under the Indenture, Events of Default include (i) a default by the
Company in the payment of any interest which continues for more than 30 days
after the due date, (ii) a default by the Company in the payment of any
principal or Redemption Price due with respect to the Notes; (iii) a default by
the Company or any Restricted Subsidiary with respect to its obligation to pay
Indebtedness for borrowed money (other than Non-Recourse Indebtedness), which
default shall have resulted in the acceleration of, or be a failure to pay at
final maturity, Indebtedness aggregating more than $50 million; (iv) a failure
to perform any other covenant or warranty of the Company herein and in the
Indenture, which continues for 30 days after written notice; (v) final
judgments or orders are rendered against the Company or any Restricted
Subsidiary which require the payment by the Company or any Restricted
Subsidiary of an amount (to the extent not covered by insurance) in excess of
$50 million and such judgments or orders remain unstayed or unsatisfied for
more than 60 days and are not being contested in good faith by appropriate
proceedings; (vi) the Company or any Restricted Subsidiary, pursuant to any
Bankruptcy Law applicable to the Company or such Restricted Subsidiary: (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 any substantial part of its property; or (D) makes a
general assignment for the benefit of its creditors; or (vii) a court of
competent jurisdiction enters an order or decree under any applicable
Bankruptcy Law: (A) for relief in an involuntary case against the Company or
any Restricted Subsidiary; (B) appointing a Custodian of the Company or any
Restricted Subsidiary or for any substantial part of its respective property;
or (C) ordering the winding up or liquidation of the Company or any Restricted
Security; and the order or decree remains unstayed and in effect for 90 days.
If an Event of Default occurs and is continuing, the Trustee, or the Holders of
at least 25% in aggregate principal amount of the Notes at the time
outstanding, may declare the outstanding principal of the Notes and any accrued
and unpaid interest through the date of such declaration on all of the Notes to
be immediately due and payable. Certain events of bankruptcy or insolvency are
Events of Default which shall result in the outstanding principal amount of all
Notes being declared due and payable immediately upon the occurrence of such
Events of Default.

          Holders may not enforce the Indenture or the Notes except as provided in
the Indenture. The Trustee may refuse to enforce the Indenture and the Notes
unless it receives reasonable indemnity or security. Subject to certain
limitations, conditions and exceptions, Holders of a majority in aggregate
principal amount of the Notes at the time outstanding may direct the Trustee in
its exercise of any trust or power, including the annulment of a declaration of
acceleration. The Trustee may withhold from Holders notice of any continuing
default (except a default in payment of amounts specified in clauses (i) and
(ii) above) if it determines that withholding notice is in their interests.

13. TRUSTEE DEALINGS WITH THE COMPANY

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          The Trustee under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Notes and may otherwise deal with and
collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

14. NO RECOURSE AGAINST OTHERS

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

15. GUARANTEES

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

16. RANKING

          The Notes shall be direct, unsecured obligations of the Company and shall
rank pari passu in right of payment with all other unsecured and unsubordinated
indebtedness of the Company. The Guarantees shall be direct, unsecured
obligations of the Guarantors and shall rank pari passu in right of payment
with all other unsecured and unsubordinated indebtedness of the Guarantors.

17. AUTHENTICATION

          This Note shall not be valid until an authorized officer of the Trustee
manually signs the Trustee’s Certificate of Authentication on the other side of
this Note.

18. ABBREVIATIONS

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

19. GOVERNING LAW

          THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
NOTE.

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          The Company shall furnish to any Holder upon written request and without
charge a copy of the Indenture which has in it the text of this Note in larger
type. Requests may be made to:

Lennar Corporation

700 N.W. 107th Avenue

Miami, Florida 33172

Attn: Chief Financial Officer

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ASSIGNMENT FORM

          If you, the Holder, want to assign this Note, fill in the form below and
have your signature guaranteed:

          I or we assign and transfer this Note to:

(Print or type name, address and zip code and social security or

tax ID number of assignee)

and irrevocably appoint _____________________, agent to transfer this Note on
the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 	 	 
	 

	 	
	 	 	 	 	 	 
	 

	 	 	 	Signed:
	 	 	 	 
	 

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

	 	 	 
	Signature Guarantee:

	 	 
	

	 	

          Signature must be guaranteed by an “eligible guarantor institution,” that
is, a bank, stockbroker, savings and loan association or credit union meeting
the requirements of the Registrar, which requirements include membership or
participation in the Securities Transfer Agents 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.

          In connection with any transfer of this Note occurring prior to the date
which is the earlier of (i) the date of the declaration by the SEC of the
effectiveness of a registration statement under the Securities Act of 1933, as
amended (the “Securities Act”), covering resales of this Note (which
effectiveness shall not have been suspended or terminated at the date of the
transfer) and (ii) the second anniversary of the Issue Date (provided, however,
that neither the Company nor any affiliate of the Company has held any
beneficial interest in such Note, or portion thereof, or any predecessor
security at any time on or prior to the second anniversary of the Issue Date),
the undersigned confirms that it has not utilized any general solicitation or
general advertising in connection with the transfer:

[Check One]

	 	 	 
	(1)  

	_______	        to the Company or a Subsidiary thereof; or
	 
	(2)  

	_______	        pursuant to and in compliance with Rule 144A under the Securities Act; or

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	(3)  

	_______	 	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to
the Trustee a signed letter containing certain representations and
agreements (the form of which letter can be obtained from the Trustee); or
	 
	(4)  

	_______	 	outside the United States to a “foreign person” in compliance with
Rule 904 of Regulation S under the Securities Act; or
	 
	(5)  

	_______	 	pursuant to the exemption from registration provided by Rule 144 under the Securities Act; or
	 
	(6)  

	_______	 	pursuant to an effective registration statement under the Securities Act; or
	 
	(7)  

	_______	 	pursuant to another available exemption from the registration requirements of the Securities Act.

          and unless the box below is checked, the undersigned confirms that such
Note is not being transferred to an “affiliate” of the Company as defined in
Rule 144 under the Securities Act (an “Affiliate”):

o     The transferee is an Affiliate of the Company.

          Unless one of the items is checked, the Trustee will refuse to register
any of the Notes evidenced by this certificate in the name of any person other
than the registered Holder thereof; provided, however, that if item (3), (4),
(5) or (7) is checked, the Company or the Trustee may require, prior to
registering any such transfer of the Notes, in their sole discretion, such
written legal opinions, certifications (including an investment letter in the
case of box (3) or (4) and other information as the Trustee or the Company have
reasonably requested to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

          If none of the foregoing items are checked, the Trustee or Registrar shall
not be obligated to register this Note in the name of any person other than the
Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 2.17 of the Indenture shall have
been satisfied.

	 	 	 	 	 	 	 
	Dated:	 	
 

	 	Signed:
	 	 

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

	 	 	 
	Signature Guarantee:	 	
 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

          The undersigned represents and warrants that it is purchasing this Note
for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the

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Securities Act and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information regarding
the Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Dated:	 	
	 	

	 	 	 	 	NOTICE:
	 	To be executed by

an executive officer

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EXHIBIT B

CUSIP No.: __________

LENNAR CORPORATION

5.50% SENIOR NOTES DUE 2014

SERIES B

	 	 	 	 	 
	No.

	 	 	$	 

     Interest Rate: 5.50% per annum.

     Interest Payment Dates: March 1 and September 1, commencing March 1, 2005

     Record Dates: February 15 and August 15

     Lennar Corporation, a Delaware corporation (the “Company,” which term
includes any successor entities), for value received, promises to pay to           
or registered assigns, on September 1, 2014, the principal amount of           
Dollars ($         ), together with interest thereon
as hereinafter provided.

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

B-1

 

          IN WITNESS WHEREOF, Lennar Corporation has caused this instrument to be
signed manually or by facsimile by its duly authorized officers.

	 	 	 	 	 
	 	 	LENNAR CORPORATION
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

	 	 	 
	Dated:
	 	 
	

	 	

TRUSTEE’S CERTIFICATE OF
   AUTHENTICATION

This
is one of the Notes described in

the within-mentioned Indenture.

J.P. MORGAN TRUST COMPANY, N.A., as Trustee

	 	 	 
	By:
	 	 
	

	 	

	

	 	Name:
	

	 	Title:

B-2

 

(REVERSE OF SECURITY)

5.50% Senior Note due 2014, Series B

          Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to them in the Indenture, dated as of August 12, 2004 (the
“Indenture”), and as amended from time to time, by and between Lennar
Corporation, a Delaware corporation (the “Company”), the Guarantors named
therein and J.P. Morgan Trust Company, N.A. as trustee (the “Trustee”).

1. INTEREST

          The Company promises to pay interest on the principal amount of this Note
at the rate per annum above. Interest on the Notes will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from the Issue Date. The Company shall pay interest semi-annually in arrears
on each Interest Payment Date, commencing as of the Interest Payment Date
referred to above and upon redemption. Interest will be computed on the basis
of a 360-day year of twelve 30-day months and, in the case of a partial month,
the actual number of days elapsed.

          The Company shall pay interest on overdue principal and, to the extent
lawful, on overdue installments of interest (without regard to any applicable
grace periods) from time to time on demand at the rate borne by the Notes.

2. METHOD OF PAYMENT

          Subject to the terms and conditions of the Indenture, the Company shall
(a) pay interest on the Notes (except defaulted interest) to the Persons who
are the registered Holders of Notes at the close of business on the Record Date
immediately preceding the Interest Payment Date even if the Notes are canceled
transferred or exchanged after such Record Date, and (b) make all other
payments in respect of the Notes to the Persons who are registered Holders of
Notes at the close of business on the Business Day preceding the Redemption
Date or Maturity, as the case may be. Holders must surrender Notes to a Paying
Agent to collect such payments in respect of the Notes referred to in clause
(b) of the preceding sentence. The Company shall pay cash amounts in money of
the United States that at the time of payment is legal tender for payment of
public and private debts. However, the Company may make the cash payments by
check payable in such money.

3. PAYING AGENT, AND REGISTRAR

          Initially, J.P. Morgan Trust Company, N.A., a national banking association
(the “Trustee”), shall act as Paying Agent and Registrar. The Company may
appoint and change any Paying Agent, Registrar or co-registrar without notice,
other than notice to the Trustee. The Company or any of its Subsidiaries or
any of their Affiliates may act as Paying Agent, Registrar or co-registrar.

4. INDENTURE

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          The Company issued the Notes under the Indenture. This Note is one of a
duly authorized issue of Notes of the Company designated as its 5.50% Senior
Notes due 2014, Series B (the “Unrestricted Notes”). The Notes include the
Initial Notes, the Private Exchange Notes and the Unrestricted Notes, issued in
exchange for the Initial Notes pursuant to the Registration Rights Agreement.
The Initial Notes, the Private Exchange Notes and the Unrestricted Notes are
treated as a single class of securities under the Indenture. The terms of the
Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (the “TIA”), as in
effect on the date of the Indenture. Notwithstanding anything to the contrary
herein, the Notes are subject to all such terms, and Holders of Notes are
referred to the Indenture and the TIA for a statement of such terms. The Notes
are general unsecured obligations of the Company. Each Holder, by accepting a
Note, agrees to be bound by all of the terms and provisions of the Indenture,
as the same may be amended from time to time in accordance with its terms.

5. REDEMPTION AT THE OPTION OF THE COMPANY

          No sinking fund is provided for the Notes. The Notes are redeemable as a
whole, or from time to time in part, at any time at the option of the Company
at a Redemption Price equal to the greater of: (a) 100% of their principal
amount; and (b) the present value of the Remaining Scheduled Payments on the
Notes being redeemed on the Redemption Date, discounted to the Redemption Date,
on a semiannual basis, at the Treasury Rate plus 20 basis points (0.20%),
together, in either case, with accrued interest to the Redemption Date on their
principal amount.

6. NOTICE OF REDEMPTION AT THE OPTION OF THE COMPANY

          Notice of redemption at the option of the Company shall be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder of
Notes to be redeemed at the Holder’s registered address. If money sufficient
to pay the Redemption Price of all Notes (or portions thereof) to be redeemed
on the Redemption Date is deposited with the Paying Agent prior to or on the
Redemption Date, interest ceases to accrue on such Notes or portions thereof on
and after such date. Notes in denominations larger than $1,000 may be redeemed
in part but only in integral multiples of $1,000.

7. DENOMINATIONS; TRANSFER; EXCHANGE

          The Notes are in registered form, without coupons, in denominations of
$1,000 and integral multiplies of $1,000. A Holder may transfer Notes in
accordance with the Supplemental Indenture and the Indenture. The Registrar
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and to pay any governmental taxes and fees required by
law or permitted by the Supplemental Indenture. The Registrar need not
transfer or exchange any Notes selected for redemption (except, in the case of
a Note to be redeemed in part, the portion of the Note not to be redeemed) or
any Notes for a period of 15 days before any selection of Notes to be redeemed.

8. PERSONS DEEMED OWNERS

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

9. UNCLAIMED MONEY OR PROPERTY

          The Trustee and the Paying Agent shall return to the Company upon written
request any money or property held by them for the payment of any amount with
respect to the Notes that remains unclaimed for two years, provided, however,
that the Trustee or such Paying Agent, before being required to make any such
return, shall at the expense of the Company 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 or property 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 money or property then remaining
shall be returned to the Company. After return to the Company, Holders entitled
to the money or property must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another
Person.

10. AMENDMENT; WAIVER

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Notes may be amended with the written consent of the Holders
of at least a majority in aggregate principal amount of the Notes at the time
outstanding and (ii) certain defaults or noncompliance with certain provisions
may be waived with the written consent of the Holders of a majority in
aggregate principal amount of the Notes at the time outstanding. Subject to
certain exceptions set forth in the Indenture, without the consent of any
Holder, the Company and the Trustee may amend the Indenture or the Notes to
cure any ambiguity, defect or inconsistency, to make any change that does not
adversely affect the right of any Holder, to convey, transfer, assign, mortgage
or pledge to the Trustee as security for the Notes any property or assets, to
evidence the succession of another corporation to the Company (or successive
successions) and the assumption by the successor corporation of the covenants,
agreements and obligations of the Company, to add to the covenants of the
Company such further covenants, restrictions or conditions as the Board of
Directors and the Trustee shall consider to be for the benefit of the Holders
of Notes, and to make the occurrence, or the occurrence and continuance, of a
default in any such additional covenants, restrictions or conditions a Default
or an Event of Default permitting the enforcement of all or any of the several
remedies provided in the Indenture, to evidence and provide for the acceptance
of appointment hereunder by a successor Trustee with respect to the Notes, or
to modify, eliminate or add to the provisions of the Indenture to such extent
as shall be necessary for the Indenture to comply with the TIA, or under any
similar federal statute hereafter enacted.

11. DEFAULTS AND REMEDIES

          Under the Indenture, Events of Default include (i) a default by the
Company in the payment of any interest which continues for more than 30 days
after the due date, (ii) a default by the Company in the payment of any
principal or Redemption Price due with respect to the Notes; (iii) a default by
the Company or any Restricted Subsidiary with respect to its obligation to pay
Indebtedness for borrowed money (other than Non-Recourse Indebtedness),

B-5

 

which default shall have resulted in the acceleration of, or be a failure
to pay at final maturity, Indebtedness aggregating more than $50 million; (iv)
a failure to perform any other covenant or warranty of the Company herein and
in the Indenture, which continues for 30 days after written notice; (v) final
judgments or orders are rendered against the Company or any Restricted
Subsidiary which require the payment by the Company or any Restricted
Subsidiary of an amount (to the extent not covered by insurance) in excess of
$50 million and such judgments or orders remain unstayed or unsatisfied for
more than 60 days and are not being contested in good faith by appropriate
proceedings; (vi) the Company or any Restricted Subsidiary, pursuant to any
Bankruptcy Law applicable to the Company or such Restricted Subsidiary: (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 any substantial part of its property; or (D) makes a
general assignment for the benefit of its creditors; or (vii) a court of
competent jurisdiction enters an order or decree under any applicable
Bankruptcy Law: (A) for relief in an involuntary case against the Company or
any Restricted Subsidiary; (B) appointing a Custodian of the Company or any
Restricted Subsidiary or for any substantial part of its respective property;
or (C) ordering the winding up or liquidation of the Company or any Restricted
Security; and the order or decree remains unstayed and in effect for 90 days.
If an Event of Default occurs and is continuing, the Trustee, or the Holders of
at least 25% in aggregate principal amount of the Notes at the time
outstanding, may declare the outstanding principal of the Notes and any accrued
and unpaid interest through the date of such declaration on all of the Notes to
be immediately due and payable. Certain events of bankruptcy or insolvency are
Events of Default which shall result in the outstanding principal amount of all
Notes being declared due and payable immediately upon the occurrence of such
Events of Default.

          Holders may not enforce the Indenture or the Notes except as provided in
the Indenture. The Trustee may refuse to enforce the Indenture and the Notes
unless it receives reasonable indemnity or security. Subject to certain
limitations, conditions and exceptions, Holders of a majority in aggregate
principal amount of the Notes at the time outstanding may direct the Trustee in
its exercise of any trust or power, including the annulment of a declaration of
acceleration. The Trustee may withhold from Holders notice of any continuing
default (except a default in payment of amounts specified in clauses (i) and
(ii) above) if it determines that withholding notice is in their interests.

12. TRUSTEE DEALINGS WITH THE COMPANY

          The Trustee under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Notes and may otherwise deal with and
collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

13. NO RECOURSE AGAINST OTHERS

          A director, officer, or employee, as such, of the Company or any
Subsidiary, the Indenture or any stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Note, each Holder

B-6

 

waives and releases all such liability. The waiver and release are part
of the consideration for the issue of the Notes.

14. GUARANTEES

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

15. RANKING

          The Notes shall be direct, unsecured obligations of the Company and shall
rank pari passu in right of payment with all other unsecured and unsubordinated
indebtedness of the Company. The Guarantees shall be direct, unsecured
obligations of the Guarantors and shall rank pari passu in right of payment
with all other unsecured and unsubordinated indebtedness of the Guarantors.

16. AUTHENTICATION

          This Note shall not be valid until an authorized officer of the Trustee
manually signs the Trustee’s Certificate of Authentication on the other side of
this Note.

17. ABBREVIATIONS

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

18. GOVERNING LAW

          THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
NOTE.

          The Company shall furnish to any Holder upon written request and without
charge a copy of the Indenture which has in it the text of this Note in larger
type. Requests may be made to:

Lennar Corporation

700 N.W. 107th Avenue

Miami, Florida 33172

Attn: Chief Financial Officer

B-7

 

ASSIGNMENT FORM

          If you, the Holder, want to assign this Note, fill in the form below and
have your signature guaranteed:

          I or we assign and transfer this Note to:

                                                                            

                                                                            

                                                                            

(Print or type name, address and zip code and social security or tax ID number of assignee)

and irrevocably appoint                                       , agent to transfer this Note
on the books of the Company. The agent may substitute another to act for him.

	 	 	 
	Dated:                                       

	 	Signed:                                       
	

	 	(Sign exactly as your name appears
	

	 	on the other side of this Note)

Signature Guarantee:                                       

          Signature must be guaranteed by an “eligible guarantor institution,” that
is, a bank, stockbroker, savings and loan association or credit union meeting
the requirements of the Registrar, which requirements include membership or
participation in the Securities Transfer Agents 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.

B-8

 

EXHIBIT C

          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
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY ANY SUCH NOMINEE OF THE
DEPOSITARY, OR BY THE DEPOSITARY OR NOMINEE OF SUCH SUCCESSOR DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. REPRESENTATIVE 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 AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
SECTION 2.17 OF THE INDENTURE.

C-1

 

EXHIBIT D

Form of Certificate To Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

[Date]

Ladies and Gentlemen:

          In connection with our proposed purchase of 5.50% Senior Notes due 2014,
Series A (the “Notes”) of Lennar Corporation (“the Company”), we confirm that:

     1. We understand that any subsequent transfer of the Notes is
subject to certain restrictions and conditions set forth in the indenture
relating to the Notes (the “Indenture”) and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes
except in compliance with, such restrictions and conditions and the
Securities Act of 1933, as amended (the “Securities Act”), and all
applicable State securities laws.

     2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act or any other applicable securities
law, and that the Notes may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons except as
permitted in the following sentence. We agree, on our own behalf and on
behalf of any accounts for which we are acting as hereinafter stated,
that if we should sell any Notes, we will do so only (i) to the Company
or any subsidiary thereof, (ii) inside the United States in accordance
with Rule 144A under the Securities Act to a person who we reasonably
believe is a “qualified institutional buyer” (as defined in Rule 144A
promulgated under the Securities Act), (iii) inside the United States to
an institutional “accredited investor” (as defined below) that, prior to
such transfer, furnishes (or has furnished on its behalf by a U.S.
broker-dealer) to the Trustee (as defined in the Indenture) a signed
letter containing certain representations and agreements relating to the
restrictions on transfer of the Notes (the form of which letter can be
obtained from the Trustee), (iv) outside the United States in accordance
with Rule 904 of Regulation S promulgated under the Securities Act, (v)
pursuant to the exemption from registration provided by Rule 144 under
the Securities Act (if available), or (vi) pursuant to an effective
registration statement under the Securities Act, and we further agree to
provide to any person purchasing any of the Notes from us a notice
advising such purchaser that resales of the Notes are restricted as
stated herein.

     3. We understand that, on any proposed resale of any Notes, we will
be required to furnish to the Trustee and the Company such certification,
legal opinions and other information as the Trustee and the Company may
reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased
by us will bear a legend to the foregoing effect.

D-1

 

     4. We are an institutional “accredited investor” (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
have such knowledge and experience in financial and business matters as
to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to
bear the economic risk of our or their investment, as the case may be.

     5. We are acquiring the Notes purchased by us for our account or for
one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion.

     6. We have received a copy of the Company’s Offering Memorandum
dated August 5, 2004, and acknowledge that we have had access to such
financial and other information, and have been afforded the opportunity
to ask such questions of representatives of the Company and receive
answers thereto, as we deem necessary in connection with our decision to
purchase the Notes.

          You, the Company, the Initial Purchasers and others are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Name of Transferee]
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

D-2

 

EXHIBIT E

Form of Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

		
	Re: 	Lennar Corporation (“the Company”) 5.50% Senior Notes, Series A due 2014 (the “Notes”)

Ladies and Gentlemen:

          In connection with our proposed sale of $                    aggregate principal
amount of the Notes, we confirm that such sale has been effected pursuant to
and in accordance with Regulation S under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and, accordingly, we represent that:

     (1) the offer of the Notes was not made to a person in the United
States;

     (2) either (a) at the time the buy offer was originated, the
transferee was outside the United States or we and any person acting on
our behalf reasonably believed that the transferee was outside the United
States, or (b) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither we nor
any person acting on our behalf knows that the transaction has been
prearranged with a buyer in the United States;

     (3) no directed selling efforts have been made in the United States
in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable;

     (4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and

     (5) we have advised the transferee of the transfer restrictions
applicable to the Notes.

E-1

 

          You, the Company, the Initial Purchasers and others are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceedings
or official inquiry with respect to the matters covered hereby. Terms used in
this certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Name of Transferee]
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

E-2

 

EXHIBIT F

GUARANTEE

          For value received, the undersigned each hereby unconditionally
guarantees, as principal obligor and not only as a surety, to the Holders of
the Notes the cash payments in United States Dollars of any amounts due with
respect to the Notes in the amounts and at the times when due and interest on
all overdue amounts, if lawful, and the payment or performance of all other
obligations of the Company under the Indenture (as defined below) or the Notes,
to the Holder of this Note and the Trustee, all in accordance with and subject
to the terms and limitations of this Note, Article X of the Indenture and this
Guarantee. This Guarantee will become effective in accordance with Article X
of the Indenture and its terms shall be evidenced therein. The validity and
enforceability of any Guarantee shall not be affected by the fact that it is
not affixed to any particular Note.

          Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Indenture, dated as of August 12, 2004, among Lennar
Corporation, a Delaware corporation, the Guarantors named therein and J.P.
Morgan Trust Company, N.A., as trustee (the “Trustee”), as amended or
supplemented (the “Indenture”).

          The obligations of the undersigned to the Holders of Notes and to the
Trustee pursuant to this Guarantee and the Indenture are expressly set forth in
Article X of the Indenture and reference
is hereby made to the Indenture for
the precise terms of the Guarantee and all of the other provisions of the
Indenture to which this Guarantee relates.

          THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO
CONFLICT OF LAWS RULES THAT WOULD APPLY THE LAWS OF ANY OTHER JURISDICTION.
Each of the Guarantors hereto agrees to submit to the jurisdiction of the
courts of the State of New York sitting in the County of New York, or of the
United States of America for the Southern District of New York in any action or
proceeding arising out of or relating to this Guarantee.

          This Guarantee is subject to release upon the terms set forth in the
Indenture.

          The undersigned acknowledges that this Guarantee is subject to the TIA and
the undersigned agrees to discharge its duties under the TIA.

F-1

 

          IN WITNESS WHEREOF, each Guarantor has caused its Guarantee to be duly
executed.

	 	 	 
	Dated:
	 	 
	

	 	

	 	 	 	 	 
	 	 	[GUARANTOR],
	 	 	     as Guarantor
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	 	 	Name:
	 	 	Title:

F-2REGISTRATION RIGHTS AGREEMENT

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

Dated as of August 12, 2004

Among

LENNAR CORPORATION

AND THE GUARANTORS NAMED HEREIN

as Issuers,

and

CITIGROUP GLOBAL MARKETS INC.,

J.P. MORGAN SECURITIES INC.

BANC OF AMERICA SECURITIES LLC

CALYON SECURITIES (USA) INC.

DEUTSCHE BANK SECURITIES INC.

WACHOVIA CAPITAL MARKETS, LLC

BNP PARIBAS SECURITIES CORP.

COMERICA SECURITIES, INC.

GREENWICH CAPITAL MARKETS, INC.

and

SUNTRUST CAPITAL MARKETS, INC.

as Initial Purchasers

5.50% Senior Notes due 2014

 

 

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (this “Agreement”) is made and entered
into as of August 12, 2004, among LENNAR CORPORATION, a Delaware corporation
(the “Company”), and the other entities that are listed on the signature pages
hereof (collectively with any entity that in the future executes a supplemental
indenture pursuant to which such entity agrees to guarantee the Notes (as
hereinafter defined), the “Guarantors” and, together with the Company, the
“Issuers”), and CITIGROUP GLOBAL MARKETS INC., J.P. MORGAN SECURITIES INC.,
BANC OF AMERICA SECURITIES LLC, CALYON SECURITIES (USA) INC., DEUTSCHE BANK
SECURITIES INC., WACHOVIA CAPITAL MARKETS, LLC, BNP PARIBAS SECURITIES CORP.,
COMERICA SECURITIES, INC., GREENWICH CAPITAL MARKETS, INC. and SUNTRUST CAPITAL
MARKETS, INC. (each, an “Initial Purchaser” and, collectively, the “Initial
Purchasers”) for whom Citigroup Global Markets Inc. and J.P. Morgan Securities
Inc. are acting as representatives.

          This Agreement is entered into in connection with the Purchase Agreement,
dated August 5, 2004, among the Company and the Initial Purchasers (the
“Purchase Agreement”), which provides for the sale by the Company to the
Initial Purchasers of $250,000,000 aggregate principal amount of the Company’s
5.50% Senior Notes due 2014 (the “Notes”). The Notes are unconditionally
guaranteed (the “Guarantees”) by each of the Guarantors. The Notes and the
Guarantees are collectively referred to herein as the “Securities”. In order
to induce the Initial Purchasers to enter into the Purchase Agreement, the
Issuers have agreed to provide the registration rights set forth in this
Agreement for the benefit of the Initial Purchasers and any subsequent holder
or holders of the Securities. The execution and delivery of this Agreement is
a condition to the Initial Purchasers’ obligation to purchase the Securities
under the Purchase Agreement.

          The parties hereby agree as follows:

     1. Definitions

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

          Additional Interest: See Section 4 hereof.

          Advice: See the last paragraph of Section 5 hereof.

          Agreement: See the introductory paragraphs hereto.

          Applicable Period: See Section 2 hereof.

          Company: See the introductory paragraphs hereto.

          Effectiveness Date: January 24, 2005; provided, however, that with
respect to any Shelf Registration Statement, the Effectiveness Date shall be
the 75th day following the Filing Date with respect thereto.

 

 

          Effectiveness Period: See Section 3(a) hereof.

          Event Date: See Section 4(b) hereof.

          Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations of the SEC promulgated thereunder.

          Exchange Notes: See Section 2 hereof.

          Exchange Offer: See Section 2 hereof

          Exchange Offer Registration Statement: See Section 2 hereof.

          Filing Date: (A) If no Exchange Offer Registration Statement has been
filed by the Issuers pursuant to this Agreement, December 10, 2004; and (B) in
each other case (which may be applicable notwithstanding the consummation of
the Exchange Offer), the 30th day after the delivery of a Shelf Notice.

          Guarantees: See the introductory paragraphs hereto.

          Guarantors: See the introductory paragraphs hereto.

          Holder: Any holder of a Registrable Security or Registrable Securities.

          Indemnified Person: See Section 7(c) hereof.

          Indemnifying Person: See Section 7(c) hereof.

          Indenture: The Indenture, dated as of August 12, 2004, by and among the
Issuers and J.P. Morgan Trust Company, N.A., as trustee, pursuant to which the
Notes are being issued, as the same may be amended or supplemented from time to
time in accordance with the terms thereof.

          Initial Purchasers: See the introductory paragraphs hereto.

          Initial Shelf Registration Statement: See Section 3(a) hereof.

          Inspectors: See Section 5(m) hereof.

          Issue Date: August 12, 2004, the date of original issuance of the
Securities.

          NASD: See Section 5(r) hereof.

          Notes: See the introductory paragraphs hereto.

          Offering Memorandum: The offering memorandum of the Company dated August
5, 2004, in respect of the offering of the Securities.

          Participant: See Section 7(a) hereof.

- 2 -

 

          Participating Broker-Dealer: See Section 2(a) hereof.

          Person: An individual, trustee, corporation, limited liability company,
partnership, joint stock company, trust, unincorporated association, union,
business association, firm or other legal entity.

          Private Exchange: See Section 2(b) hereof.

          Private Exchange Notes: See Section 2(b) hereof.

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

          Purchase Agreement: See the introductory paragraphs hereto.

          Records: See Section 5(m) hereof.

          Registrable Notes: Each Note upon its original issuance and at all times
subsequent thereto, each Exchange Note as to which Section 2(c)(iv) hereof is
applicable upon original issuance and at all times subsequent thereto and each
Private Exchange Note upon original issuance thereof and at all times
subsequent thereto, until the earliest to occur of (i) a Registration Statement
(other than, with respect to any Exchange Note as to which Section 2(c)(iv)
hereof is applicable, the Exchange Offer Registration Statement) covering such
Note, Exchange Note or Private Exchange Note has been declared effective by the
SEC and such Note, Exchange Note or such Private Exchange Note, as the case may
be, has been disposed of in accordance with such effective Registration
Statement, (ii) such Note has been exchanged pursuant to the Exchange Offer for
an Exchange Note or Exchange Notes that may be resold (or, but for the status
of such Holder as an affiliate of the Issuers under Rule 405, could be resold)
without restriction under state and federal securities laws, (iii) such Note,
Exchange Note or Private Exchange Note, as the case may be, ceases to be
outstanding for purposes of the Indenture or (iv) such Note, Exchange Note or
Private Exchange Note, as the case may be, may be resold without restriction
pursuant to Rule 144(k) (as amended or replaced) under the Securities Act.

          Registrable Securities: Each Registrable Note and related guarantees.

          Registration Statement: Any registration statement of the Issuers that
covers any of the Securities, the Exchange Notes (and related guarantees) or
the Private Exchange Notes (and related guarantees) filed with the SEC under
the Securities Act, including the Prospectus, amendments and supplements to
such registration statement, including post-effective amendments, all exhibits,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.

- 3 -

 

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

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

          Rule 405: Rule 405 under the Securities Act.

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

          SEC: The Securities and Exchange Commission.

          Securities: See the introductory paragraphs hereto.

          Securities Act: The Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

          Shelf Notice: See Section 2(c) hereof.

          Shelf Registration Statement: See Section 3(b) hereof.

          Subsequent Shelf Registration Statement: See Section 3(b) hereof.

          TIA: The Trust Indenture Act of 1939, as amended.

          Trustee: The trustee under the Indenture and the trustee (if any) under
any indenture governing the Exchange Notes (and related guarantees) and Private
Exchange Notes (and related guarantees).

          Underwritten registration or underwritten offering: A registration in
which securities of one or more of the Issuers are sold to an underwriter for
reoffering to the public.

     2. Exchange Offer

          (a) The Issuers shall file with the SEC, no later than the Filing Date, a
Registration Statement (the “Exchange Offer Registration Statement”) on an
appropriate registration form with respect to a registered offer (the “Exchange
Offer”) to exchange any and all of the Registrable Securities for a like
aggregate principal amount of notes of the Company, guaranteed by the
Guarantors, that are identical in all material respects to the Securities,
except that the Exchange Notes shall contain no restrictive legend thereon (the
“Exchange Notes”), and which are entitled to the benefits of the Indenture or a
trust indenture which is identical in all material respects to the Indenture
(other than such changes to the Indenture or any such identical

- 4 -

 

trust indenture as are necessary to comply with the TIA) and which, in
either case, has been qualified under the TIA. Interest on each Exchange Note
will accrue (A) from the later of (1) the last interest payment date on which
interest was paid on the Note surrendered, or (2) if the Note is surrendered
for exchange on a date in a period which includes the record date for an
interest payment date to occur on or after the date of the exchange and as to
which interest will be paid, such interest payment date or (B) if no interest
has been paid on that Note, from the Issue Date. The Exchange Offer shall
comply with all applicable tender offer rules and regulations under the
Exchange Act and other applicable laws. The Issuers shall use their reasonable
best efforts to (x) cause the Exchange Offer Registration Statement to be
declared effective under the Securities Act on or before the Effectiveness
Date; (y) keep the Exchange Offer open for acceptance for not less than 30 days
(or longer if required by applicable law) after the date that notice of the
Exchange Offer is mailed to Holders; and (z) consummate the Exchange Offer on
or prior to March 10, 2005. If, after the Exchange Offer Registration
Statement is initially declared effective by the SEC, the Exchange Offer or the
issuance of the Exchange Notes (and related guarantees) thereunder is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, the Exchange Offer
Registration Statement shall be deemed not to have become effective for
purposes of this Agreement.

          Each Holder that participates in the Exchange Offer will be required, as a
condition to its participation in the Exchange Offer, to represent to the
Company in writing (which may be contained in the applicable letter of
transmittal) (1) that any Exchange Notes (and related guarantees) to be
received by it will be acquired in the ordinary course of its business, (2)
that at the time of the consummation of the Exchange Offer such Holder will
have no arrangement or understanding with any Person to participate in the
distribution of the Exchange Notes (and related guarantees) in violation of the
provisions of the Securities Act, (3) that such Holder is not an “affiliate”
(as defined in Rule 405 promulgated under the Securities Act) of any Issuer (4)
if the holder is not a broker-dealer, that it is not engaged in, and does not
intend to engage in, the distribution of Exchange Notes (and related
guarantees) and (5) if the holder is a broker-dealer (a “Participating
Broker-Dealer”) that it will receive the Exchange Notes (and related
guarantees) for its own account in exchange for Securities that were acquired
as a result of market-making or other trading activities, and that it will
deliver a prospectus in connection with any resale of the Exchange Notes (and
related guarantees).

          Upon consummation of the Exchange Offer in accordance with this Section 2,
the provisions of this Agreement shall continue to apply, mutatis mutandis,
solely with respect to Registrable Securities that are Private Exchange Notes
(and related guarantees), Exchange Notes (and related guarantees) as to which
Section 2(c)(iv) is applicable and Exchange Notes (and related guarantees) held
by Participating Broker-Dealers, and the Issuers shall have no further
obligation to register Registrable Securities (other than Private Exchange
Notes (and related guarantees) and other than in respect of any Exchange Notes
(and related guarantees) as to which clause 2(c)(iv) hereof applies) pursuant
to Section 3 hereof.

          No securities other than the Exchange Notes (and related guarantees) shall
be included in the Exchange Offer Registration Statement.

- 5 -

 

          (b) The Issuers shall include within the Prospectus contained in the
Exchange Offer Registration Statement a section entitled “Plan of
Distribution,” reasonably acceptable to the Initial Purchasers, which shall
contain a summary statement of the positions taken or policies made by the
staff of the SEC with respect to the potential “underwriter” status of any
Participating Broker-Dealer that is the beneficial owner (as defined in Rule
13d-3 under the Exchange Act) of Exchange Notes received by such Participating
Broker-Dealer in the Exchange Offer, whether such positions or policies have
been publicly disseminated by the staff of the SEC or such positions or
policies represent the prevailing views of the staff of the SEC. Such “Plan of
Distribution” section shall also expressly permit, to the extent permitted by
applicable policies and regulations of the SEC, the use of the Prospectus by
all Persons subject to the prospectus delivery requirements of the Securities
Act, including, to the extent permitted by applicable policies and regulations
of the SEC, all Participating Broker-Dealers, and include a statement
describing the means by which Participating Broker-Dealers may resell the
Exchange Notes in compliance with the Securities Act.

          The Issuers shall use their best efforts to keep the Exchange Offer
Registration Statement effective and to amend and supplement the Prospectus
contained therein in order to permit such Prospectus to be lawfully delivered
by all Persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as is necessary to comply with
applicable law in connection with any resale of the Exchange Notes covered
thereby; provided, however, that such period shall not exceed 180 days after
such Exchange Offer Registration Statement is declared effective (or such
longer period if extended pursuant to the last paragraph of Section 5 hereof)
(the “Applicable Period”).

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

          In connection with the Exchange Offer, the Issuers shall:

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

   (ii) use their best efforts to keep the Exchange Offer open
for acceptance for not less than 30 days after the date that notice
of the Exchange Offer is mailed to Holders (or longer if required
by applicable law);

- 6 -

 

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

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

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

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

   (vi) accept for exchange all Registrable Notes validly
tendered and not validly withdrawn pursuant to the Exchange Offer
and the Private Exchange, if any;

   (vii) deliver to the Trustee for cancellation all Registrable
Notes so accepted for exchange; and

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

          The Exchange Notes (and related guarantees) and the Private Exchange Notes
(and related guarantees) shall be issued under (i) the Indenture or (ii) an
indenture identical in all material respects to the Indenture and which, in
either case, has been qualified under the TIA or is exempt from such
qualification and shall provide that the Exchange Notes (and related
guarantees) shall not be subject to the transfer restrictions set forth in the
Indenture. The Indenture or such indenture shall provide that the Exchange
Notes (and related guarantees), the Private Exchange Notes (and related
guarantees) and the Securities shall vote and consent together on all matters
as one class and that none of the Exchange Notes (and related guarantees), the
Private Exchange Notes (and related guarantees) or the Securities will have the
right to vote or consent as a separate class on any matter.

          (c) If, (i) because of any change in law or in currently prevailing
interpretations by the SEC staff, the Issuers are not permitted to effect the
Exchange Offer, (ii) the Exchange Offer is not consummated by March 10, 2005,
(iii) in certain circumstances, certain holders of Private Exchange Notes (and
related guarantees) so request in writing to the Company, or (iv) in the case
of any Holder that tenders Securities in response to the Exchange Offer, such
Holder does not receive Exchange Notes on the date of the exchange that may be
sold without restriction under state and federal securities laws (other than
due solely to the status of such Holder as an affiliate of any of the Issuers
within the meaning of the Securities Act), then in the case of each of clauses
(i) to and including (iv) of this sentence, the Issuers shall (a) promptly
deliver to the Holders and the Trustee written notice thereof (the “Shelf
Notice”) and (b) at its sole expense and as promptly as practicable shall file
a Shelf Registration Statement pursuant to Section 3 hereof.

- 7 -

 

     3. Shelf Registration

          If at any time a Shelf Notice is delivered as contemplated by Section 2(c)
hereof, then:

          (a) Shelf Registration. The Issuers shall file with the SEC a
Registration Statement for an offering to be made on a continuous basis
pursuant to Rule 415 covering all of the Registrable Securities not exchanged
in the Exchange Offer, Private Exchange Notes (and related guarantees) and
Exchange Notes (and related guarantees) as to which Section 2(c)(iv) is
applicable (the “Initial Shelf Registration Statement”). The Company shall use
its best efforts to file with the SEC the Initial Shelf Registration Statement
on or before the applicable Filing Date. The Initial Shelf Registration
Statement shall be on Form S-1 or another appropriate form permitting
registration of such Registrable Securities for resale by Holders in the manner
or manners designated by them (including, without limitation, one or more
underwritten offerings). The Issuers shall not permit any securities other
than the Registrable Securities to be included in the Initial Shelf
Registration Statement or any Subsequent Shelf Registration Statement (as
defined below).

          The Issuers shall use their best efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act on or
prior to the Effectiveness Date and to keep the Initial Shelf Registration
Statement continuously effective under the Securities Act until the date which
is two years from the Issue Date (the “Effectiveness Period”), or such shorter
period ending when (i) all Registrable Securities covered by the Initial Shelf
Registration Statement have been sold in the manner set forth and as
contemplated in the Initial Shelf Registration Statement or (ii) a Subsequent
Shelf Registration Statement covering all of the Registrable Securities covered
by and not sold under the Initial Shelf Registration Statement or an earlier
Subsequent Shelf Registration Statement has been declared effective under the
Securities Act; provided, however, that the Effectiveness Period in respect of
the Initial Shelf Registration Statement shall be extended to the extent
required to permit dealers to comply with the applicable prospectus delivery
requirements of Rule 174 under the Securities Act and as otherwise provided
herein.

          (b) Subsequent Shelf Registrations. If the Initial Shelf Registration
Statement or any Subsequent Shelf Registration Statement ceases to be effective
for any reason at any time during the Effectiveness Period (other than because
of the sale of all of the securities registered thereunder), the Company shall
use its best efforts to obtain the prompt withdrawal of any order suspending
the effectiveness thereof, and in any event shall within 30 days of such
cessation of effectiveness amend the Initial Shelf Registration Statement in a
manner to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an additional “shelf” Registration Statement pursuant to Rule
415 covering all of the Registrable Securities covered by and not sold under
the Initial Shelf Registration Statement or an earlier Subsequent Shelf
Registration Statement (each, a “Subsequent Shelf Registration Statement”). If
a Subsequent Shelf Registration Statement is filed, the Company shall use its
best efforts to cause the Subsequent Shelf Registration Statement to be
declared effective under the Securities Act as soon as practicable after such
filing and to keep such subsequent Shelf Registration Statement continuously
effective for a period equal to the number of days in the Effectiveness Period
less the aggregate number of days during which the Initial Shelf Registration
Statement or any

- 8 -

 

Subsequent Shelf Registration Statement was previously continuously
effective. As used herein the term “Shelf Registration Statement” means the
Initial Shelf Registration Statement and any Subsequent Shelf Registration
Statement.

          (c) Supplements and Amendments. The Issuers shall promptly supplement and
amend any Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used for such Shelf
Registration Statement, if required by the Securities Act, or if reasonably
requested by the Holders of a majority in aggregate principal amount of the
Registrable Securities (or their counsel) covered by such Registration
Statement or by any underwriter of such Registrable Securities.

     4. Additional Interest

          (a) The Issuers and the Initial Purchasers agree that the Holders will
suffer damages if the Issuers fail to fulfill their obligations under Section 2
or Section 3 hereof and that it would not be feasible to ascertain the extent
of such damages with precision. Accordingly, the Issuers agree to pay, as
liquidated damages, additional interest on the Notes (“Additional Interest”)
under the circumstances and to the extent set forth below (each of which shall
be given independent effect):

   (i) if (A) neither the Exchange Offer Registration Statement
nor the Initial Shelf Registration Statement has been filed with
the SEC on or prior to the applicable Filing Date or (B)
notwithstanding that the Issuers have consummated or will
consummate the Exchange Offer, the Issuers are required to file a
Shelf Registration Statement and such Shelf Registration Statement
has not been filed with the SEC on or prior to the Filing Date
applicable thereto, then, commencing on the day after any such
Filing Date, Additional Interest shall accrue on the principal
amount of the Securities at a rate of 0.25% per annum for the first
90 days immediately following each such Filing Date, and such
Additional Interest rate shall increase by an additional 0.25% per
annum at the beginning of each subsequent 90-day period; or

   (ii) if (A) neither the Exchange Offer Registration Statement
nor the Initial Shelf Registration Statement has been declared
effective by the SEC on or prior to the applicable Effectiveness
Date or (B) notwithstanding that the Issuers have consummated or
will consummate the Exchange Offer, the Issuers are required to
file a Shelf Registration Statement and such Shelf Registration
Statement has not been declared effective by the SEC on or prior to
the applicable Effectiveness Date with respect to such Shelf
Registration Statement, then, commencing on the day after such
Effectiveness Date, Additional Interest shall accrue on the
principal amount of the Securities at a rate of 0.25% per annum for
the first 90 days immediately following the day after such
Effectiveness Date, and such Additional Interest rate shall
increase by an additional 0.25% per annum at the beginning of each
subsequent 90-day period; or

   (iii) if (A) the Issuers have not exchanged Exchange Notes
(and related guarantees) for all Securities validly tendered in
accordance with the terms of the

- 9 -

 

Exchange Offer on or prior to March 10, 2005 or (B) if
applicable, a Shelf Registration Statement has been declared
effective and such Shelf Registration Statement ceases to be
effective at any time during the Effectiveness Period, then,
Additional Interest shall accrue on the principal amount of the
Securities at a rate of 0.25% per annum for the first 90 days
commencing on (x) March 10, 2005, in the case of (A) above, or (y)
the day such Shelf Registration Statement ceases to be effective in
the case of (B) above, and such Additional Interest rate shall
increase by an additional 0.25% per annum at the beginning of each
such subsequent 90-day period;

provided, however, that Additional Interest rate on the Notes may not under any
circumstance accrue under more than one of the foregoing clauses (i), (ii) and
(iii) of this Section 4 and the rate at which Additional Interest accrues on
the Notes as a result of the provisions of clauses (i), (ii) and (iii) of this
Section 4 may not exceed in the aggregate 1.0% per annum; provided further,
that (1) upon the filing of the applicable Exchange Offer Registration
Statement or the applicable Shelf Registration Statement as required hereunder
(in the case of clause (i) of this Section 4), (2) upon the effectiveness of
the Exchange Offer Registration Statement or the applicable Shelf Registration
Statement as required hereunder (in the case of clause (ii) of this Section 4),
or (3) upon the exchange of the Exchange Notes (and related guarantees) for all
Securities tendered (in the case of clause (iii)(A) of this Section 4), or upon
the effectiveness of a Subsequent Shelf Registration Statement in the case of
Shelf Registration Statement which had ceased to remain effective (in the case
of clause (iii)(B) of this Section 4), Additional Interest on the Notes as a
result of such clause (or the relevant subclause thereof), as the case may be,
shall cease to accrue.

          (b) The Issuers shall notify the Trustee within three business days after
each and every date on which an event occurs in respect of which Additional
Interest is required to be paid (an “Event Date”), which notice shall also be
at least three business days prior to the date of any payment to be made in
accordance with the following sentence. Any amounts of Additional Interest due
pursuant to (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be payable in
cash simultaneously with, and to the same persons entitled to receive, stated
interest on the Notes, commencing with the first such payment of interest
occurring after any such Additional Interest commences to accrue. The amount
of Additional Interest payable with respect to Registrable Notes will be
determined by multiplying the applicable Additional Interest rate by the
principal amount of the Registrable Notes, multiplied by a fraction, the
numerator of which is the number of days such Additional Interest rate was
applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months and, in the case of a partial month, the
actual number of days elapsed), and the denominator of which is 360.

     5. Registration Procedures

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

- 10 -

 

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

          (b) Prepare and file with the SEC such amendments and post-effective
amendments to each Shelf Registration Statement or Exchange Offer Registration
Statement, as the case may be, as may be necessary to keep such Registration
Statement continuously effective for the Effectiveness Period or the Applicable
Period, as the case may be; cause the related Prospectus to be supplemented by
any Prospectus supplement required by applicable law, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the
Securities Act and the Exchange Act applicable to each of them with respect to
the disposition of all securities covered by such Registration Statement as so
amended or in such Prospectus as so supplemented and with respect to the
subsequent resale of any securities being sold by a Participating Broker-Dealer
covered by any such Prospectus. The Issuers shall be deemed not to have used
their best efforts to keep a Registration Statement effective during the
Effectiveness Period or the Applicable Period, as the case may be, relating
thereto, if any of the Issuers voluntarily takes any action that would result
in selling Holders of the Registrable Securities covered thereby or
Participating Broker-Dealers seeking to sell Exchange Notes (and related
guarantees) not being able to sell such Registrable Securities or such Exchange
Notes (and related guarantees) during that period unless such action is
required by applicable law or permitted by this Agreement.

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

- 11 -

 

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

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

          (e) If a Shelf Registration Statement is filed pursuant to Section 3 and
if requested by the managing underwriter or underwriters (if any), the Holders
of a majority in aggregate principal amount of the Registrable Securities being
sold in connection with an underwritten offering or any Participating
Broker-Dealer, (i) as promptly as practicable incorporate in a prospectus
supplement or post-effective amendment such information as the managing
underwriter or underwriters (if any), such Holders, any Participating
Broker-Dealer or counsel for any of them reasonably request to be included
therein, (ii) make all required filings of such prospectus supplement or such
post-effective amendment as soon as practicable after the

- 12 -

 

Company has received notification of the matters to be incorporated in
such prospectus supplement or post-effective amendment, and (iii) supplement or
make amendments to such Registration Statement.

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

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

          (h) Prior to any public offering of Registrable Securities or Exchange
Notes (and related guarantees) or any delivery of a Prospectus contained in the
Exchange Offer Registration Statement by any Participating Broker-Dealer who
seeks to sell Exchange Notes (and related guarantees) during the Applicable
Period, use its best efforts to register or qualify, and to cooperate with the
selling Holders of Registrable Securities or each such Participating
Broker-Dealer, as the case may be, the managing underwriter or underwriters, if
any, and their respective counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any selling Holder,
Participating Broker-Dealer, or the managing underwriter or underwriters
reasonably request in writing; provided, however, that where Exchange Notes
(and related guarantees) held by Participating Broker-Dealers or Registrable
Securities are offered other than through an underwritten offering, the Issuers
agree to cause their counsel to perform Blue Sky investigations and file
registrations and qualifications required to be filed pursuant to this Section
5(h), keep each such registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept
effective and do any and all other acts or things

- 13 -

 

reasonably necessary or advisable to enable the disposition in such
jurisdictions of the Exchange Notes (and related guarantees) held by
Participating Broker-Dealers or the Registrable Securities covered by the
applicable Registration Statement; provided, however, that none of the Issuers
shall be required to (A) qualify generally to do business in any jurisdiction
where it is not then so qualified, (B) take any action that would subject it to
general service of process in any such jurisdiction where it is not then so
subject or (C) subject itself to taxation in excess of a nominal dollar amount
in any such jurisdiction where it is not then so subject.

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

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

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

          (l) In connection with any underwritten offering of Registrable Securities
pursuant to a Shelf Registration Statement, enter into an underwriting
agreement which is customary in underwritten offerings of debt securities
similar to the Securities in form and substance reasonably satisfactory to the
Issuers and take all such other actions as are reasonably requested by the
managing underwriter or underwriters in order to expedite or facilitate the
registration or the disposition of such Registrable Securities and, in such
connection, (i) make such representations and warranties to, and covenants
with, the underwriters with respect to the business of the Issuers (including
any acquired business, properties or entity, if applicable) and the
Registration Statement, Prospectus and documents, if any, incorporated or
deemed to be incorporated by reference therein, in each case, as are
customarily made by issuers to

- 14 -

 

underwriters in underwritten offerings of debt securities similar to the
Securities, and confirm the same in writing if and when requested in form and
substance reasonably satisfactory to the Issuers; (ii) obtain the written
opinions of counsel to the Issuers and written updates thereof in form, scope
and substance reasonably satisfactory to the managing underwriter or
underwriters, addressed to the underwriters covering the matters customarily
covered in opinions reasonably requested in underwritten offerings and such
other matters as may be reasonably requested by the managing underwriter or
underwriters; (iii) obtain “cold comfort” letters and updates thereof in form,
scope and substance reasonably satisfactory to the managing underwriter or
underwriters from the independent certified public accountants of the Issuers
(and, if necessary, any other independent certified public accountants of the
Issuers, or of any business or entity acquired by the Issuers for which
financial statements and financial data are, or are required to be, included or
incorporated by reference in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of
the type customarily covered in “cold comfort” letters in connection with
underwritten offerings of debt securities similar to the Securities and such
other matters as are reasonably requested by the managing underwriter or
underwriters as permitted by the Statement on Auditing Standards No. 72, as
amended by the Statement on Auditing Standards No. 76; and (iv) if an
underwriting agreement is entered into, the same shall contain indemnification
provisions and procedures no less favorable to the sellers and underwriters, if
any, than those set forth in Section 7 hereof (or such other provisions and
procedures acceptable to Holders of a majority in aggregate principal amount of
Registrable Securities covered by such Registration Statement and the managing
underwriter or underwriters or agents, if any). The above shall be done at
each closing under such underwriting agreement, or as and to the extent
required thereunder.

          (m) If (1) a Shelf Registration Statement is filed pursuant to Section 3
hereof, or (2) a Prospectus contained in the Exchange Offer Registration
Statement filed pursuant to Section 2 hereof is required to be delivered under
the Securities Act by any Participating Broker-Dealer who seeks to sell
Exchange Notes (and related guarantees) during the Applicable Period, make
available for inspection by any selling Holder of such Registrable Securities
being sold, or each such Participating Broker-Dealer, as the case may be, any
underwriter participating in any such disposition of Registrable Securities, if
any, and any attorney, accountant or other agent retained by any such selling
Holder or each such Participating Broker-Dealer, as the case may be, or
underwriter (collectively, the “Inspectors”), at the offices where normally
kept, during reasonable business hours, all financial and other records,
pertinent corporate documents and instruments of the Issuers and subsidiaries
of the Issuers (collectively, the “Records”) as shall be reasonably necessary
to enable them to exercise any applicable due diligence responsibilities, and
cause the officers, directors and employees of the Issuers and any of their
respective subsidiaries to supply all information reasonably requested by any
such Inspector in connection with such Registration Statement and Prospectus.
Each Inspector shall agree in writing that it will keep the Records
confidential and that it will not disclose any of the Records that any of the
Issuers determines, in good faith, to be confidential and notifies the
Inspectors in writing are confidential unless (i) the disclosure of such
Records is necessary to avoid or correct a material misstatement or material
omission in such Registration Statement or Prospectus, (ii) the release of such
Records is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction, or (iii) the information in such Records has been made
generally available to the public; provided, however, that prior notice shall
be provided as soon as practicable to any of the Issuers of the potential
disclosure of any information by such Inspector pursuant to clauses (i) or

- 15 -

 

(ii) of this sentence to permit the Issuers to obtain a protective order
(or waive the provisions of this paragraph (m)) and that such Inspector shall
take such actions as are reasonably necessary to protect the confidentiality of
such information (if practicable) to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and
interests of the Holder or any Inspector. If, in the course of performing due
diligence, any Inspector becomes aware of material non public information about
the Company and its subsidiaries, the Inspector will not, and will take all
steps reasonably necessary to ensure that anyone to whom the Inspector
discloses the material non public information will not trade in any securities
of the Company until the information becomes public (whether through inclusion
in the Shelf Registration Statement or Exchange Offer Registration Statement or
otherwise) or the information ceases to be material.

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

          (o) Comply with all applicable rules and regulations of the SEC and make
generally available to its securityholders with regard to any applicable
Registration Statement, a consolidated earnings statement satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or
any similar rule promulgated under the Securities Act) no later than 45 days
after the end of any fiscal quarter (or 90 days after the end of any 12-month
period if such period is a fiscal year) (i) commencing at the end of any fiscal
quarter in which Registrable Securities are sold to underwriters in a firm
commitment or best efforts underwritten offering and (ii) if not sold to
underwriters in such an offering, commencing on the first day of the first
fiscal quarter of the Company after the effective date of a Registration
Statement, which statements shall cover said 12-month periods.

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

          (q) If the Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Registrable Securities by Holders to the Company (or to such
other Person as directed by the Issuers) to be exchanged for Exchange Notes
(and related guarantees) or Private Exchange Notes (and related guarantees), as
the case may be, the Issuers shall mark, or cause to

- 16 -

 

be marked, on such Registrable Notes that such Registrable Notes are being
canceled in exchange for Exchange Notes (and related guarantees) or Private
Exchange Notes (and related guarantees), as the case may be; in no event shall
such Registrable Notes be marked as paid or otherwise satisfied.

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

          (s) Use its best efforts to take all other steps reasonably necessary to
effect the registration of the Exchange Notes (and related guarantees) and/or
Registrable Securities covered by a Registration Statement contemplated hereby.

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

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

          Each Holder of Registrable Securities and each Participating Broker-Dealer
agrees by its acquisition of such Registrable Securities or of Exchange Notes
(and related guarantees) to be sold by such Participating Broker-Dealer, as the
case may be, that, upon actual receipt of any notice from the Company of the
happening of any event of the kind described in Section 5(c)(ii), 5(c)(iv),
5(c)(v), or 5(c)(vi) hereof, such Holder will forthwith discontinue disposition
of such Registrable Securities covered by such Registration Statement or
Prospectus or Exchange Notes (and related guarantees) to be sold by such Holder
or Participating Broker-Dealer, as the case may be, until such Holder’s or
Participating Broker-Dealer’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 5(j) hereof, or until it is advised
in writing (an “Advice”) by the Issuers that the use of the applicable
Prospectus may be resumed, and has received copies of any amendments or
supplements thereto. In the event that the Issuers shall give any such notice,
the Applicable Period shall be extended by the number of days from and
including the date of the giving of each such notice to and including

- 17 -

 

the date when each seller of Registrable Securities covered by such
Registration Statement or Exchange Notes (and related guarantees) to be sold by
such Participating Broker-Dealer, as the case may be, shall have received (x)
the copies of the supplemented or amended Prospectus contemplated by Section
5(j) hereof or (y) an Advice with respect to said notice.

     6. Registration Expenses

          All fees and expenses incident to the performance of or compliance with
this Agreement by the Issuers (other than any underwriting discounts or
commissions) shall be borne by the Company whether or not the Exchange Offer
Registration Statement or any Shelf Registration Statement is filed or becomes
effective or the Exchange Offer is consummated, including, without limitation,
(i) all registration and filing fees (including, without limitation, (A) fees
with respect to filings required to be made with the NASD in connection with an
underwritten offering and (B) reasonable fees and expenses of compliance with
state securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel in connection with Blue Sky qualifications of the
Registrable Securities or Exchange Notes (and related guarantees) and
determination of the eligibility of the Registrable Securities or Exchange
Notes (and related guarantees) for investment under the laws of the
jurisdictions (x) where the holders of Registrable Securities are located, in
the case of the Exchange Notes (and related guarantees), or (y) as provided in
Section 5(h) hereof, in the case of Registrable Securities or Exchange Notes
(and related guarantees) to be sold by a Participating Broker-Dealer during the
Applicable Period)), (ii) printing expenses, including, without limitation,
expenses of printing certificates for Registrable Notes or Exchange Notes in a
form eligible for deposit with The Depository Trust Company and of printing
prospectuses if the printing of prospectuses is requested by the managing
underwriter or underwriters, if any, by the Holders of a majority in aggregate
principal amount of the Registrable Securities included in any Registration
Statement or in respect of Registrable Securities or Exchange Notes (and
related guarantees) to be sold by any Participating Broker-Dealer during the
Applicable Period, as the case may be, (iii) messenger, telephone and delivery
expenses, (iv) fees and disbursements of counsel for the Issuers and reasonable
fees and disbursements of one firm of special counsel for the sellers of
Registrable Securities, (v) fees and disbursements of all independent certified
public accountants referred to in Section 5(l)(iii) hereof (including, without
limitation, the expenses of any special audit and “cold comfort” letters
required by or incident to such performance), (vi) Securities Act liability
insurance, if the Issuers desire such insurance, (vii) fees and expenses of all
other Persons retained by the Issuers, (viii) internal expenses of the Issuers
(including, without limitation, all salaries and expenses of officers and
employees of the Issuers performing legal or accounting duties), (ix) the
expense of any annual audit, (x) any fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange,
and the obtaining of a rating of the securities, in each case, if applicable,
and (xi) the expenses relating to printing, word processing and distributing
all Registration Statements, underwriting agreements, indentures and any other
documents necessary in order to comply with this Agreement.

     7. Indemnification

          (a) Each of the Issuers agree, jointly and severally, to indemnify and
hold harmless each Holder of Registrable Securities and each Participating
Broker-Dealer selling Exchange Notes (and related guarantees) during the
Applicable Period, the affiliates, officers,

- 18 -

 

directors, representatives, employees and agents of each such Person, and
each Person, if any, who controls any such Person within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a
“Participant”), from and against any and all losses, claims, damages,
judgments, liabilities and expenses (including, without limitation, the
reasonable legal fees and other expenses actually incurred in connection with
any suit, action or proceeding or any claim asserted) caused by, arising out of
or based upon any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment thereto) or
Prospectus (as amended or supplemented if any of the Issuers shall have made
any amendments or supplements thereto) or any preliminary prospectus, or caused
by, arising out of or based upon any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in the case of the Prospectus in light of the circumstances
under which they were made, not misleading, except insofar as such losses,
claims, damages or liabilities are caused by any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity
with information relating to any Participant, any underwriter, or the manner in
which securities are to be distributed, furnished to the Issuers in writing by
such Participant or an underwriter expressly for use therein.

          (b) Each Participant agrees, severally and not jointly, to indemnify and
hold harmless the Issuers, their respective affiliates, officers, directors,
representatives, employees and agents and each Person who controls the Issuers
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent (but on a several, and not joint, basis) as the
foregoing indemnity from the Issuers to each Participant, but only with
reference to information relating to such Participant or the manner in which
securities are to be distributed by such Participant or someone acting on such
Participant’s behalf, furnished to the Issuers in writing by such Participant
expressly for use in any Registration Statement or Prospectus, any amendment or
supplement thereto, or any preliminary prospectus. The liability of any
Participant under this paragraph shall in no event exceed the proceeds received
by such Participant from sales of Registrable Securities or Exchange Notes (and
related guarantees) giving rise to such obligations.

          (c) If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any Person in respect of which indemnity may be sought pursuant to either of
the two preceding paragraphs, such Person (the “Indemnified Person”) shall
promptly notify the Persons against whom such indemnity may be sought (the
“Indemnifying Persons”) in writing, and the Indemnifying Persons, upon request
of the Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Persons may reasonably designate (which may include the
Indemnifying Persons, unless representation of the Indemnifying Persons by the
same counsel would be inappropriate due to actual or potential differing
interests between them) in such proceeding and shall pay the fees and expenses
actually incurred by such counsel related to such proceeding; provided,
however, that the failure to so notify the Indemnifying Persons (i) will not
relieve it from any liability under paragraph (a) or (b) above unless and to
the extent such failure results in the forfeiture by the Indemnifying Person of
substantial rights and defenses and (ii) will not, in any event, relieve the
Indemnifying Person from any obligations to any Indemnified Person other than
the indemnification obligation provided in paragraphs (a) and (b) above. In
any such proceeding, any Indemnified Person shall

- 19 -

 

have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Persons and the Indemnified Person shall have mutually agreed to
the contrary, (ii) the Indemnifying Persons shall have failed within a
reasonable period of time to retain counsel reasonably satisfactory to the
Indemnified Person or (iii) the named parties in any such proceeding (including
any impleaded parties) include both any Indemnifying Person and the Indemnified
Person or any affiliate thereof and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them. It is understood that, unless there exists a conflict among the
Indemnified Persons, the Indemnifying Persons shall not, in connection with
such proceeding or separate but substantially similar related proceeding in the
same jurisdiction arising out of the same general allegations, be liable for
the fees and expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, and that all such fees and expenses shall
be reimbursed promptly as they are incurred. Any such separate firm for the
Participants against whom a suit, action, proceeding, claim or demand is
brought or asserted and control Persons of such Participants shall be
designated in writing by Participants who sold a majority in interest of
Registrable Securities and Exchange Notes (and related guarantees) sold by all
such Participants, and any such separate firm for the Issuers, their
affiliates, officers, directors, representatives, employees and agents and such
control Persons of the Issuers shall be designated in writing by the Issuers.

          The Indemnifying Persons shall not be liable for any settlement of any
proceeding effected without their prior written consent, but if settled with
such consent or if there be a final non-appealable judgment for the plaintiff
for which any Indemnified Persons are entitled to indemnification pursuant to
this Agreement, each of the Indemnifying Persons agrees to indemnify and hold
harmless each Indemnified Person from and against any loss or liability by
reason of such settlement or judgment. No Indemnifying Person shall, without
the prior written consent of the Indemnified Persons, effect any settlement or
compromise of any pending or threatened proceeding in respect of which any
Indemnified Person is or could have been a party, or indemnity could have been
sought hereunder by such Indemnified Person, unless such settlement (A)
includes an unconditional written release of such Indemnified Person, in form
and substance reasonably satisfactory to such Indemnified Person, from all
liability on claims that are the subject matter of such proceeding and (B) does
not include any statement as to an admission of fault, culpability or failure
to act by or on behalf of such Indemnified Person.

          (d) If the indemnification provided for in the first and second paragraphs
of this Section 7 is for any reason unavailable to, or insufficient to hold
harmless, an Indemnified Person in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such
paragraphs, in lieu of indemnifying such Indemnified Person thereunder and in
order to provide for just and equitable contribution, shall contribute to the
amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities in such proportion as is appropriate to reflect
(i) the relative benefits received by the Indemnifying Person or Persons on the
one hand and the Indemnified Person or Persons on the other from the applicable
offering of Registrable or Exchanged Notes or (ii) if the allocation provided
by the foregoing clause (i) is not permitted by applicable law, not only such
relative benefits but also the relative fault of the Indemnifying Person or
Persons on the one hand and the Indemnified Person or Persons on the other in
connection with the statements or omissions or alleged statements or omissions
that resulted in such losses, claims, damages or liabilities (or

- 20 -

 

actions in respect thereof) as well as any other relevant equitable
considerations. The relative fault of the parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
such Participant or such other Indemnified Person, as the case may be, on the
other, the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission, and any other
equitable considerations appropriate in the circumstances.

          (e) The parties agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
(even if the Participants were treated as one entity for such purpose) or by
any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an Indemnified Person as a result of the losses, claims,
damages, judgments, liabilities and expenses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any reasonable legal or other expenses actually incurred by such
Indemnified Person in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 7, in no event
shall a Participant be required to contribute any amount in excess of the
amount by which proceeds received by such Participant from sales of Registrable
Securities or Exchange Notes (and related guarantees), as the case may be,
exceeds the amount of any damages that such Participant has otherwise been
required to pay or has paid by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of a 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.

          (f) Any losses, claims, damages, liabilities or expenses for which an
indemnified party is entitled to indemnification or contribution under this
Section 7 shall be paid by the Indemnifying Person to the Indemnified Person as
such losses, claims, damages, liabilities or expenses are incurred. The
indemnity and contribution agreements contained in this Section 7 and the
representations and warranties of the Company set forth in this Agreement shall
remain operative and in full force and effect, regardless of (i) any
investigation made by or on behalf of any Holder or any person who controls a
Holder, or by the Company, its directors, officers, employees or agents or any
person controlling any of the Issuers, and (ii) any termination of this
Agreement.

          (g) The indemnity and contribution agreements contained in this Section 7
will be in addition to any liability which the Indemnifying Persons may
otherwise have to the Indemnified Persons referred to above.

     8. Rules 144 and 144A

          Each of the Issuers covenants and agrees that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and
the rules and regulations adopted by the SEC thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act
and, if at any time such Issuer is not required to file such reports, such
Issuer will, upon the request of any Holder or beneficial owner of Registrable
Securities, make available such information necessary to permit sales pursuant
to Rule 144A under the Securities

- 21 -

 

Act. The Company further covenants and agrees, for so long as any
Registrable Securities remain outstanding that it will take such further action
as any Holder of Registrable Securities may reasonably request, all to the
extent required from time to time to enable such holder to sell Registrable
Securities without registration under the Securities Act within the limitations
of the exemptions provided by (a) Rule 144(k) and Rule 144A under the
Securities Act, as such Rules may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the SEC.

     9. Underwritten Registrations

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

          No Holder of Registrable Securities may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder’s
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes in a timely manner all questionnaires, powers of
attorney, indemnities, underwriting agreements and other customary documents
required by the Company or the underwriter in connection with such underwriting
arrangements.

     10. Miscellaneous

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

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

          (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of (I) the Company and (II)(A) the Holders of not less than a majority
in aggregate principal amount of the then outstanding Registrable Securities
and (B) if the amendment, modification, supplement, waiver or consent would
adversely affect the Participating Broker-Dealers, the Participating Broker-

- 22 -

 

Dealers holding not less than a majority in aggregate principal amount of
the Exchange Notes (and related guarantees) held by all Participating
Broker-Dealers; provided, however, that Section 7 and this Section 10(c) may
not be amended, modified or supplemented without the prior written consent of
each Holder and each Participating Broker-Dealer (including any person who was
a Holder or Participating Broker-Dealer of Registrable Securities or Exchange
Notes (and related guarantees), as the case may be, disposed of pursuant to any
Registration Statement) affected by any such amendment, modification or
supplement. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Securities whose securities are being sold
pursuant to a Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders of Registrable
Securities may be given by Holders of at least a majority in aggregate
principal amount of the Registrable Securities being sold pursuant to such
Registration Statement.

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

   (i) if to a Holder of the Registrable Securities or any
Participating Broker-Dealer, at the most current address of such
Holder or Participating Broker-Dealer, as the case may be, set
forth on the records of the registrar under the Indenture, with a
copy in like manner to the Initial Purchasers as follows:

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Attention:                    

with a copy to:

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York, 10019

Attention: John S. D’Alimonte, Esq.

                  David K. Boston, Esq.

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

700 N.W. 107th Avenue

Miami, Florida 33172

Attention: General Counsel, Benjamin P. Butterfield

with a copy to:

Clifford Chance US LLP

200 Park Avenue

New York, New York 10166

- 23 -

 

Attention: David W. Bernstein, Esq.

   (iii) if to the Initial Purchasers, at the address specified in
Section 10(d)(i).

          All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; five business days
after being deposited in the mail, postage prepaid, if mailed; one business day
after being timely delivered to a next-day air courier; and when receipt is
acknowledged by the addressee, if sent by facsimile.

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

          (e) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto,
the Holders and the Participating Broker-Dealers.

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

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

          (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW THAT WOULD APPLY THE LAW OF ANY OTHER
JURISDICTION. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

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

- 24 -

 

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

          (k) Third-Party Beneficiaries. Holders of Registrable Securities and
Participating Broker-Dealers are intended third-party beneficiaries of this
Agreement, and this Agreement may be enforced by such Persons.

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

[Signature page follows.]

- 25 -

 

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

	 	 	 	 	 	 	 
	 	 	LENNAR CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Stuart A. Miller	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Stuart A. Miller	 	 
	

	 	 	 	Title:   President and Chief Executive Officer

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES INC.

BANC OF AMERICA SECURITIES LLC

CALYON SECURITIES (USA) INC.

DEUTSCHE BANK SECURITIES INC.

WACHOVIA CAPITAL MARKETS, LLC

BNP PARIBAS SECURITIES CORP.

COMERICA SECURITIES, INC.

GREENWICH CAPITAL MARKETS, INC.

SUNTRUST CAPITAL MARKETS, INC.

CITIGROUP GLOBAL MARKETS INC.,

	 	 	 
	By:
/s/ Marc Mansourian

	

	
 
	

	 	Name: Marc Mansourian
	

	 	Title:   Director

J.P. MORGAN SECURITIES INC.,

	 	 	 
	By:
/s/ Robert Bottamedi

	

	
 
	

	 	Name: Robert Bottamedi
	

	 	Title:   Vice
President

[Signature Page to Registration Rights Agreement]

 

 

Acme Water Supply & Management Company

Aquaterra Utilities, Inc.

Asbury Woods L.L.C.

Avalon-Sienna III, L.L.C.

B. Andrews & Co., Inc.

Barnsboro Associates, LLC

Bayhome USH, Inc.

Bella Oaks L.L.C.

Bennetts Village LLC

Bickford Holdings, LLC

Boca Greens, Inc.

Boca Isles South Club, Inc.

Boggy Creek USH, Inc.

Bramalea California, Inc.

Bramalea California Properties, Inc.

Bramalea California Realty, Inc.

Brazoria County LP, Inc.

Brewer Baseline Investors, LLC

Builders Acquisition Corp.

Builders LP, Inc.

Cambria L.L.C.

Cantera Village L.L.C.

Cary Woods L.L.C.

Claremont Ridge L.L.C.

Claridge Estates L.L.C.

Clodine-Bellaire LP, Inc.

Club Pembroke Isles, Inc.

Club Tampa Palms, Inc.

Colonial Heritage LLC

Concord at Meadowbrook L.L.C.

Concord at Pheasant Run Trails L.L.C.

Concord at Ravenna L.L.C.

Concord at Zurich Village L.L.C.

Concord City Centre L.L.C.

Concord Hills, Inc.

Concord Hills Limited Partnership

Concord Homes, Inc.

Concord Lake, Inc.

Concord Lake Limited Partnership

Concord Mills Estates L.L.C.

Concord Mills Limited Partnership

Concord Oaks, Inc.

Concord Oaks Limited Partnership

Concord Park, Inc.

Concord Park Limited Partnership

Concord Pointe, Inc.

[Signature Page to Registration Rights Agreement]

 

 

Concord Pointe Limited Partnership

Coto de Caza, Ltd.

Country Club Development at the Fort, LLC

Coventry L.L.C.

DCA Homes NJ Realty, Inc.

DCA of Lake Worth, Inc.

DCA of New Jersey, Inc.

E.M.J.V. Corp.

Enclave Land, L.L.C.

ERMLOE, LLC

F.P. Construction Corp.

Fidelity Guaranty and Acceptance Corporation

Fortress Holding – Virginia, LLC

Fortress Illinois, LLC

Fortress Management, Inc.

Fortress Missouri, LLC

Fortress Mortgage, Inc.

Fortress Pennsylvania, LLC

Fortress Pennsylvania Realty, Inc.

Fortress-Florida, Inc.

Fox-Maple Associates, LLC

Foxwood L.L.C.

Gateway Commons, L.L.C.

Genesee Communities I, Inc.

Genesee Communities II, LLC

Genesee Communities III, Inc.

Genesee Communities IV, LLC

Genesee Communities V, LLC

Genesee Communities VI, LLC

Genesee Communities VII, LLC

Genesee Communities VIII, LLC

Genesee Communities IX, LLC

Genesee Venture, LLC

Glenview Reserve, LLC

Grand Isle Club, Inc.

Greenfield/Waterbury L.L.C.

Greystone Construction, Inc.

Greystone Homes, Inc.

Greystone Homes of Nevada, Inc.

Greystone Nevada, LLC

Hallston Burbank LLC

Harris County LP, Inc.

Haverton L.L.C.

Heathcote Commons LLC

Heritage Harbour Realty, Inc.

Heritage Housing Group, Inc.

[Signature Page to Registration Rights Agreement]

 

 

Heritage USH, Inc.

Home Buyer’s Advantage Realty, Inc.

Homecraft Corporation

Imperial Homes Corporation

Impressions L.L.C.

Inactive Corporations, Inc.

Kings Lake TH, LLC

Kings Ridge Golf Corporation

Kings Ridge Recreation Corporation

Kings Wood Development Corporation

Landmark Homes, Inc.

Laureate Homes of Arizona, Inc.

Legacy Homes, Inc.

Legends Club, Inc.

Legends Golf Club, Inc.

LENH I, LLC

Lennar Acquisition Corp. II

Lennar Americanos Douglas, LLC

Lennar Associates Management, LLC

Lennar Associates Management Holding Company

Lennar Aviation, Inc.

Lennar Carolina, Inc.

Lennar Central Park, LLC

Lennar Central Region Sweep, Inc.

Lennar Chicago, Inc.

Lennar Communities, Inc.

Lennar Communities Development, Inc.

Lennar Communities of Florida, Inc.

Lennar Communities of South Florida, Inc.

Lennar Construction, Inc.

Lennar Coto Holdings, L.L.C.

Lennar Developers, Inc.

Lennar Developers, Inc. II

Lennar Developers, Inc. III

Lennar Family of Builders GP, Inc.

Lennar Family of Builders Limited Partnership

Lennar Financial Services, LLC

Lennar Fresno, Inc.

Lennar Homes, Inc.

Lennar Homes Holding Corp.

Lennar Homes of Arizona, Inc.

Lennar Homes of California, Inc.

Lennar Homes of Texas Land and Construction, Ltd.

Lennar Homes of Texas Sales and Marketing, Ltd.

Lennar Houston Land, LLC

Lennar La Paz, Inc.

[Signature Page to Registration Rights Agreement]

 

 

Lennar La Paz Limited, Inc.

Lennar Land Partners Sub, Inc.

Lennar Land Partners Sub II, Inc.

Lennar Military Housing, Inc.

Lennar Nevada, Inc.

Lennar Northland I, Inc.

Lennar Northland II, Inc.

Lennar Northland III, Inc.

Lennar Northland IV, Inc.

Lennar Northland V, Inc.

Lennar Northland VI, Inc.

Lennar Northpointe North, LLC

Lennar Pacific, Inc.

Lennar Pacific, L.P.

Lennar Pacific Properties, Inc.

Lennar Pacific Properties Management, Inc.

Lennar Realty, Inc.

Lennar Renaissance, Inc.

Lennar Reno, LLC

Lennar Sacramento, Inc.

Lennar Sales Corp.

Lennar San Jose Holdings, Inc.

Lennar Southland I, Inc.

Lennar Southland II, Inc.

Lennar Southland III, Inc.

Lennar Southwest Holding Corp.

Lennar Sun Ridge, LLC

Lennar Texas Holding Company

Lennar Trading Company, LP

Lennar.Com, Inc.

Lennar-Kings Lake, Inc.

Lennar-Lantana Boatyard, Inc.

Lennarstone Marketing Group, LLC

LFS Holding Company, LLC

LH Eastwind, LLC

LHI Renaissance, LLC

LN, L.L.C.

Long Point Development Corporation

Lorton Station, LLC

Lucerne Merged Condominiums, Inc.

Lundgren Bros. Construction, Inc.

M.A.P. Builders, Inc.

Madrona Village L.L.C.

Marble Mountain Partners, LLC

Marlborough Development Corporation

Mid-County Utilities, Inc.

[Signature Page to Registration Rights Agreement]

 

 

Midland Housing Industries Corp.

Midland Investment Corporation

Mission Viejo 12S Venture, LP

Mission Viejo Holdings, Inc.

Moffett Meadows Partners, LLC

New Home Brokerage, Inc.

North County Land Company, LLC

Northbridge L.L.C.

Northern Land Company, LLC

Northgate Highlands Development II, LLC

NuHome Designs, L.L.C.

Oceanpointe Development Corporation

Orrin Thompson Construction Company

Orrin Thompson Homes Corp.

Paparone Construction Co.

Parc Chestnut L.L.C.

Parkside Estates L.L.C.

Patriot Homes, Inc.

Patriot Homes of Virginia, Inc.

Placer Vineyards, LLC

Polygon La Paz Associates

Providence Glen L.L.C.

Rancho Summit, LLC

Rivenhome Corporation

Riviera Land Corp.

RRKTG Lumber, LLC

Rutenberg Homes, Inc. (FL)

Rutenberg Homes of Texas, Inc.

S. Florida Construction, LLC

S. Florida Construction II, LLC

S. Florida Construction III, LLC

Savell Gulley Development Corporation

SEA Joint Venture, LLC

SFHR Management, L.L.C.

Silver Lakes-Gateway Clubhouse, Inc.

Sonoma L.L.C.

South Park Development, LLC

Spanish Springs Development, LLC

Stoney Corporation

Stoneybrook Golf Club, Inc.

Strategic Cable Technologies, L.P.

Strategic Holdings, Inc.

Strategic Technologies, Inc.

Strategic Technologies Communications of California, Inc.

Summerway Investment Corp.

Summerwood, L.L.C.

[Signature Page to Registration Rights Agreement]

 

 

Summit Acquisition Corp.

Summit Enclave, L.L.C.

Summit Glen, L.L.C.

Summit Land, L.L.C.

Summit Ridge 23, L.L.C.

Summit Townes, L.L.C.

Summit-Meadowbrook, L.L.C.

Summit-Reserve, L.L.C.

Sunstar Enterprises, LLC

The Club at Stoneybrook, Inc.

The Courts of Indian Creek L.L.C.

The Fortress Group, Inc.

The Grande By Lennar Builders, Inc.

The Sexton L.L.C.

Tustin Villas Partners, LLC

Tustin Vistas Partners, LLC

U.S. Home Associates Management, Inc.

U.S. Home Corporation

U.S. Home of Arizona Construction Co.

U.S. Home of West Virginia, Inc.

U.S. Home Realty, Inc. (TX)

U.S. Home Realty Corporation

U.S. Home Southwest Holding Corp.

U.S.H. Corporation of New York

U.S.H. Los Prados, Inc.

U.S.H. Realty, Inc.

University Community Partners, LLC

USH Acquisition Corp.

USH Bickford, LLC

USH Equity Corporation

USH Heritage Pom, L.L.C.

USH Millennium Ventures Corp.

USH (West Lake), Inc.

USH Woodbridge, Inc.

USHHH, Inc.

Villages of Rio Pinar Club, Inc.

West Adams Street L.L.C.

West Chocolate Bayou Development Corp.

Westbrook Homes, LLC

Westchase, Inc.

Westchase, Ltd.

Weststone Corporation
    
                                                                                        as Guarantors

	 	 	 	 	 
	 

	 	By:	 	/s/ Stuart A. Miller
	

	 	 	 	
 
	

	 	 	 	Name: Stuart A. Miller
	

	 	 	 	Title:   President and Chief
Executive Officer

[Signature Page to Registration Rights Agreement]

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