Document:

exv4w3

Exhibit 4.3

[EXECUTION COPY]

NVR, INC.

and

THE BANK OF NEW YORK

AS TRUSTEE

 

INDENTURE

DATED AS OF April 14, 1998

 

SENIOR DEBT SECURITIES

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	PARTIES
	 	 	 	 
	RECITALS
	 	 	2	 
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	2	 
	SECTION 101. DEFINITIONS
	 	 	2	 
	Act
	 	 	2	 
	Additional Amounts
	 	 	2	 
	Affiliate
	 	 	3	 
	Authenticating Agent
	 	 	3	 
	Authorized Newspaper
	 	 	3	 
	Bankruptcy Law
	 	 	3	 
	Bearer Security
	 	 	3	 
	Board of Directors
	 	 	3	 
	Board Resolution
	 	 	3	 
	Business Day
	 	 	3	 
	Capital Stock
	 	 	3	 
	CEDEL
	 	 	3	 
	Commission
	 	 	3	 
	Company
	 	 	3	 
	Company Request
	 	 	3	 
	Company Order
	 	 	3	 
	Conversion Event
	 	 	4	 
	Corporate Trust Office
	 	 	4	 
	Corporation
	 	 	4	 
	Coupon
	 	 	4	 
	Custodian
	 	 	4	 
	Debt or Indebtedness
	 	 	4	 
	Defaulted Interest
	 	 	4	 
	DTC
	 	 	4	 
	Dollar or
	 	 	4	 
	ECU
	 	 	4	 
	Euroclear
	 	 	4	 
	European Community
	 	 	5	 
	European Monetary System
	 	 	5	 
	European Union
	 	 	5	 
	Event of Default
	 	 	5	 
	Exchange Act
	 	 	5	 
	Foreign Currency
	 	 	5	 
	GAAP
	 	 	5	 
	Government Obligations
	 	 	5	 
	Holder
	 	 	5	 
	Indenture
	 	 	5	 
	Indexed Security
	 	 	5	 
	Interest
	 	 	6	 
	Interest Payment Date
	 	 	6	 
	Legal Holiday
	 	 	6	 
	Maturity
	 	 	6	 
	Officers’ Certificate
	 	 	6	 
	Opinion of Counsel
	 	 	6	 
	Original Issue Discount Security
	 	 	6	 
	Outstanding
	 	 	6	 
	Paying Agent
	 	 	7	 

 

 

	 	 	 	 	 
	 	 	Page	 
	Person
	 	 	7	 
	Place of Payment
	 	 	7	 
	Predecessor Security
	 	 	7	 
	Recourse Indebtedness
	 	 	7	 
	Redemption Date
	 	 	7	 
	Redemption Price
	 	 	7	 
	Registered Security
	 	 	7	 
	Regular Record Date
	 	 	7	 
	Repayment Date
	 	 	7	 
	Repayment Price
	 	 	7	 
	Responsible Officer
	 	 	8	 
	Secured Debt
	 	 	8	 
	Securities Act
	 	 	8	 
	Security
	 	 	8	 
	Security Register and Security Registrar
	 	 	8	 
	Significant Subsidiary
	 	 	8	 
	Special Record Date
	 	 	8	 
	Stated Maturity
	 	 	8	 
	Subsidiary
	 	 	8	 
	Trust Indenture Act or TIA
	 	 	8	 
	Trustee
	 	 	8	 
	United States
	 	 	8	 
	United States Person
	 	 	9	 
	Yield to Maturity
	 	 	9	 
	SECTION 102. COMPLIANCE CERTIFICATES AND OPINIONS
	 	 	9	 
	SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE
	 	 	9	 
	SECTION 104. ACTS OF HOLDERS
	 	 	9	 
	SECTION 105. NOTICES, ETC., TO TRUSTEE AND COMPANY
	 	 	11	 
	SECTION 106. NOTICE TO HOLDERS; WAIVER
	 	 	11	 
	SECTION 107. EFFECT OF HEADINGS AND TABLE OF CONTENTS
	 	 	11	 
	SECTION 108. SUCCESSORS AND ASSIGNS
	 	 	12	 
	SECTION 109. SEPARABILITY CLAUSE
	 	 	12	 
	SECTION 110. BENEFITS OF INDENTURE
	 	 	12	 
	SECTION 111. NO PERSONAL LIABILITY
	 	 	12	 
	SECTION 112. GOVERNING LAW
	 	 	12	 
	SECTION 113. LEGAL HOLIDAYS
	 	 	12	 
	ARTICLE TWO SECURITIES FORMS
	 	 	12	 
	SECTION 201. FORMS OF SECURITIES
	 	 	12	 
	SECTION 202. FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 	 	13	 
	SECTION 203. SECURITIES ISSUABLE IN GLOBAL FORM
	 	 	13	 
	ARTICLE THREE THE SECURITIES
	 	 	14	 
	SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES
	 	 	14	 
	SECTION 302. DENOMINATIONS
	 	 	16	 
	SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING
	 	 	16	 
	SECTION 304. TEMPORARY SECURITIES
	 	 	18	 
	SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE
	 	 	19	 
	SECTION 306. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES
	 	 	22	 
	SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED
	 	 	22	 
	SECTION 308. PERSONS DEEMED OWNERS
	 	 	24	 
	SECTION 309. CANCELLATION
	 	 	24	 
	SECTION 310. COMPUTATION OF INTEREST
	 	 	25	 
	SECTION 311. CUSIP NUMBERS
	 	 	25	 
	ARTICLE FOUR SATISFACTION AND DISCHARGE
	 	 	25	 
	SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	25	 
	SECTION 402. APPLICATION OF TRUST FUNDS
	 	 	26	 
	ARTICLE FIVE REMEDIES
	 	 	26	 

 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 501. EVENTS OF DEFAULT
	 	 	26	 
	SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT
	 	 	27	 
	SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE
	 	 	28	 
	SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM
	 	 	28	 
	SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES
OR COUPONS
	 	 	29	 
	SECTION 506. APPLICATION OF MONEY COLLECTED
	 	 	29	 
	SECTION 507. LIMITATION ON SUITS
	 	 	29	 
	SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL (PREMIUM,
IF ANY) AND INTEREST
	 	 	30	 
	SECTION 509. RESTORATION OF RIGHTS AND REMEDIES
	 	 	30	 
	SECTION 510. RIGHTS AND REMEDIES CUMULATIVE
	 	 	30	 
	SECTION 511. DELAY OR OMISSION NOT WAIVER
	 	 	30	 
	SECTION 512. CONTROL BY HOLDERS OF SECURITIES
	 	 	30	 
	SECTION 513. WAIVER OF PAST DEFAULTS
	 	 	31	 
	SECTION 514. WAIVER OF USURY, STAY OR EXTENSION LAWS
	 	 	31	 
	SECTION 515. UNDERTAKING FOR COSTS
	 	 	31	 
	ARTICLE SIX THE TRUSTEE
	 	 	31	 
	SECTION 602. CERTAIN RIGHTS OF TRUSTEE
	 	 	31	 
	SECTION 603. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES
	 	 	32	 
	SECTION 604. MAY HOLD SECURITIES
	 	 	33	 
	SECTION 605. MONEY HELD IN TRUST
	 	 	33	 
	SECTION 606. COMPENSATION AND REIMBURSEMENT
	 	 	33	 
	SECTION 607. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING INTERESTS
	 	 	33	 
	SECTION 608. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR
	 	 	33	 
	SECTION 609. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR
	 	 	34	 
	SECTION 610. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS
	 	 	35	 
	SECTION 611. APPOINTMENT OF AUTHENTICATING AGENT
	 	 	35	 
	SECTION 612. TRUSTEE’S APPLICATION FOR INSTRUCTIONS FROM THE COMPANY
	 	 	36	 
	ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	37	 
	SECTION 701. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS
	 	 	37	 
	SECTION 702. REPORTS BY TRUSTEE
	 	 	37	 
	SECTION 703. REPORTS BY COMPANY
	 	 	37	 
	SECTION 704. THE COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS
	 	 	38	 
	ARTICLE EIGHT CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE
	 	 	38	 
	SECTION 801. CONSOLIDATIONS AND MERGERS OF COMPANY AND SALES, LEASES AND
CONVEYANCES PERMITTED SUBJECT TO CERTAIN CONDITIONS
	 	 	38	 
	SECTION 802. RIGHTS AND DUTIES OF SUCCESSOR ENTITY
	 	 	38	 
	SECTION 803. OFFICERS’ CERTIFICATE AND OPINION OF COUNSEL
	 	 	38	 
	ARTICLE NINE SUPPLEMENTAL INDENTURES
	 	 	39	 
	SECTION 901. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS
	 	 	39	 
	SECTION 902. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS
	 	 	40	 
	SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES
	 	 	40	 
	SECTION 904. EFFECT OF SUPPLEMENTAL INDENTURES
	 	 	41	 
	SECTION 905. CONFORMITY WITH TRUST INDENTURE ACT
	 	 	41	 
	SECTION 906. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES
	 	 	41	 
	SECTION 907. NOTICE OF SUPPLEMENTAL INDENTURES
	 	 	41	 
	ARTICLE TEN COVENANTS
	 	 	41	 
	SECTION 1001. PAYMENT OF PRINCIPAL (AND PREMIUM, IF ANY) AND INTEREST
	 	 	41	 
	SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY
	 	 	41	 
	SECTION 1003. MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST
	 	 	42	 
	SECTION 1004. EXISTENCE
	 	 	43	 

 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 1005. MAINTENANCE OF PROPERTIES
	 	 	43	 
	SECTION 1006. INSURANCE
	 	 	44	 
	SECTION 1007. PAYMENT OF TAXES AND OTHER CLAIMS
	 	 	44	 
	SECTION 1008. STATEMENT AS TO COMPLIANCE
	 	 	44	 
	SECTION 1009. ADDITIONAL AMOUNTS
	 	 	44	 
	SECTION 1010. WAIVER OF CERTAIN COVENANTS
	 	 	45	 
	SECTION 1011. STATEMENT BY OFFICERS AS TO DEFAULT
	 	 	45	 
	SECTION 1012. CALCULATION OF ORIGINAL ISSUE DISCOUNT
	 	 	45	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES
	 	 	45	 
	SECTION 1101. APPLICABILITY OF ARTICLE
	 	 	45	 
	SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE
	 	 	45	 
	SECTION 1103. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED
	 	 	45	 
	SECTION 1104. NOTICE OF REDEMPTION
	 	 	46	 
	SECTION 1105. DEPOSIT OF REDEMPTION PRICE
	 	 	47	 
	SECTION 1106. SECURITIES PAYABLE ON REDEMPTION DATE
	 	 	47	 
	SECTION 1107. SECURITIES REDEEMED IN PART
	 	 	47	 
	ARTICLE TWELVE REPAYMENT AT THE OPTION OF HOLDERS
	 	 	48	 
	SECTION 1201. APPLICABILITY OF ARTICLE
	 	 	48	 
	SECTION 1202. REPAYMENT OF SECURITIES
	 	 	48	 
	SECTION 1203. EXERCISE OF OPTION
	 	 	48	 
	SECTION 1204. WHEN SECURITIES PRESENTED FOR REPAYMENT BECOME DUE AND
PAYABLE
	 	 	48	 
	SECTION 1205. SECURITIES REPAID IN PART
	 	 	49	 
	ARTICLE THIRTEEN DEFEASANCE AND COVENANT DEFEASANCE
	 	 	49	 
	SECTION 1301. APPLICABILITY OF ARTICLE; COMPANY’S OPTION TO EFFECT
DEFEASANCE OR COVENANT DEFEASANCE
	 	 	49	 
	SECTION 1302. DEFEASANCE AND DISCHARGE
	 	 	49	 
	SECTION 1303. COVENANT DEFEASANCE
	 	 	50	 
	SECTION 1304. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE
	 	 	50	 
	SECTION 1305. DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS TO BE HELD
IN TRUST; OTHER MISCELLANEOUS PROVISIONS
	 	 	51	 

 

 

     Reconciliation and tie between Trust Indenture Act of 1939 (the “TIA“or “Trust Indenture Act”)
and this Indenture, dated as of April 14, 1998.

	 	 	 	 	 	 	 
	Trust	 	Indenture Act Section	 	Indenture Section
	(S)
	 	310	 	(a)(1)	 	607
	 
	 	 	 	(a)(2)	 	607
	 
	 	 	 	(b)	 	607,  608
	(S)
	 	312	 	(c)	 	701
	(S)
	 	313	 	(a)	 	702
	 
	 	 	 	(c)	 	702
	(S)
	 	314	 	(a)	 	703
	 
	 	 	 	(a)(4)	 	1006
	 
	 	 	 	(c)(1)	 	102
	 
	 	 	 	(c)(2)	 	102
	 
	 	 	 	(e)	 	102
	(S)
	 	315	 	(b)	 	601
	(S)
	 	316	 	(a) (last sentence)	 	101  (“Outstanding”)
	 
	 	 	 	(a)(1)(A)	 	502,  512
	 
	 	 	 	(a)(1)(B)	 	513
	 
	 	 	 	(b)	 	508
	(S)
	 	317	 	(a)(1)	 	503
	 
	 	 	 	(a)(2)	 	504
	(S)
	 	318	 	(a)	 	111
	 
	 	 	 	(c)	 	111

 

NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of this
Indenture.

     Attention should also be directed to Section 318(c) of the Trust Indenture Act, which provides
that the provisions of Sections 310 to and including 317 of the Trust Indenture Act are a part of
and govern every qualified indenture, whether or not physically contained therein.

 

 

     Indenture (this “Indenture”), dated as of April 14, 1998, by and between NVR, Inc., a Virginia
corporation (the “Company”) and The Bank of New York, a New York banking corporation, as
Trustee hereunder (the “Trustee”), having its Corporate Trust Office (as defined below) at
101 Barclay Street, Floor 21 West, New York, New York 10286.

RECITALS

     The Company deems it necessary to issue from time to time for its lawful purposes senior debt
securities (the “Securities”) evidencing its unsecured senior indebtedness, and has duly authorized
the execution and delivery of this Indenture to provide for the issuance from time to time of the
Securities, unlimited as to principal amount, to bear interest at the rates or formulas, to mature
at such times and to have such other provisions as shall be fixed for such Securities as
hereinafter provided.

     This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended,
that are deemed to be incorporated into this Indenture and shall, to the extent applicable, be
governed by such provisions.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities, as follows:

ARTICLE ONE

 

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     SECTION 101. Definitions. For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

     (2) all other terms used herein which are defined in the TIA, either directly or by reference
therein, have the meanings assigned to them therein, and the terms “cash transaction” and
“self-liquidating paper,” as used in TIA Section 311, shall have the meanings assigned to them in
the rules of the Commission adopted under the TIA;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with GAAP; and

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

     Certain terms, used principally in Article Three, Article Five, Article Six and Article Ten,
are defined in those Articles. In addition, the following terms have the respective meanings
indicated, except as otherwise provided in any applicable supplemental indenture with respect to a
series of Securities issuable thereunder.

     “Act,” when used with respect to any Holder, has the meaning specified in Section 104.

     “Additional Amounts” means any additional amounts which are required by a Security or
by or pursuant to a Board Resolution, under circumstances specified therein, to be paid by the
Company in respect of certain taxes, assessments or other governmental charges imposed on certain
Holders and which are owing to such Holders.

     “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.

     “Authenticating Agent” means any Person authorized by the Trustee to act on behalf of
the Trustee to authenticate Securities of one or more series.

     “Authorized Newspaper” means a newspaper, printed in the English language or in an
official language of the place of publication, customarily published on each day that is a Business
Day in the place of publication, whether or not published on days that are Legal Holidays in the
place of publication, and of general circulation in each place in connection with which the term is
used or in the financial community of each such place. Whenever successive publications are
required to be made in Authorized Newspapers, the successive publications may be made in the same
or in different Authorized Newspapers in the same city meeting the foregoing requirements and in
each case on any day that is a Business Day in the place of publication.

     “Bankruptcy Law” has the meaning specified in Section 501.

     “Bearer Security” means any Security established pursuant to Section 201 which is
payable to bearer.

     “Board of Directors” means the board of directors of the Company or any committee of
that board duly authorized to act hereunder, as the case may be.

     “Board Resolution” means a copy of a resolution of the Company, certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification, and delivered to
the Trustee.

     “Business Day,” when used with respect to any Place of Payment or any other location
referred to in this Indenture or in the Securities, means, unless otherwise specified with respect
to any Securities pursuant to Section

 

 

301, any day, other than a Saturday, Sunday or other day on
which banking institutions in that Place of Payment or location are authorized or required by law,
regulation or executive order to close.

     “Capital Stock” means with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) in equity of
such Person, whether now outstanding or issued after the Closing Date, including, without
limitation, all common stock and preferred stock.

     “CEDEL” means Central de Livraison de Valeurs Mobilieres, S.A., or its successor.

     “Commission” means the U.S. Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act, or, if at any time after execution of this Indenture
such Commission is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties on such date.

     “Company” means the Person named as the “Company” in the first paragraph of this
Indenture until a successor Company shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter “Company” shall mean such successor Company.

     “Company Request” and “Company Order” mean, respectively, a written request or
order signed in the name of and on behalf of the Company by its Chairman of the Board, the
President or a Vice President, and by its Chief Financial Officer, Treasurer or an Assistant
Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee.

     “Conversion Event” means the cessation of use of (i) a Foreign Currency both by the
government of the country or confederation that issued such currency and for the settlement of
transactions by a central bank or other public institutions of or within the international banking
community, (ii) the ECU both within the European Monetary System and for the settlement of
transactions by public institutions of or within the European Union or (iii) any currency unit (or
composite currency) other than the ECU for the purposes for which it was established.

     “Corporate Trust Office” means the principal corporate trust office of the Trustee at
which, at any particular time, its corporate trust business shall be administered principally,
which office at the date hereof is located at 101 Barclay Street, Floor 21 West, New York, New York
10286, except for purposes of Section 1002, such term shall mean the office or agency of The Bank
of New York, London Branch.

     “corporation” includes corporations, limited liability companies, partnerships,
associations, companies and business and real estate investment trusts.

     “coupon” means any interest coupon appertaining to a Bearer Security.

     “Custodian” has the meaning specified in Section 501.

     “Debt” or “Indebtedness” of the Company or any Subsidiary means any
indebtedness of the Company or any Subsidiary, whether or not contingent, in respect of (i)
borrowed money or evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness
secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on
property owned by the Company or any Subsidiary, (iii) letters of credit or amounts representing
the balance deferred and unpaid of the purchase price of any property except any such balance that
constitutes an accrued expense or trade payable or (iv) any lease of property by the Company or any
Subsidiary as lessee which is reflected on the Company’s consolidated balance sheet as a
capitalized lease in accordance with GAAP, in the case of items of indebtedness under (i) through
(iii) above to the extent that any such items (other than letters of credit) would appear as a
liability on the Company’s consolidated balance sheet in accordance with GAAP, and also includes,
to the extent not otherwise included, any obligation by the Company or any Subsidiary to be liable
for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the
ordinary course of business), indebtedness of another person (other than the Company or any
Subsidiary) (it being understood that “Debt” shall be deemed to be incurred by the Company and its
Subsidiaries on a consolidated basis whenever the Company and its Subsidiaries on a consolidated
basis shall create, assume, guarantee or otherwise become liable in respect thereof; Debt of a
Subsidiary of the Company existing prior to the time it became a Subsidiary of the Company shall be
deemed to be incurred upon such Subsidiary’s becoming a Subsidiary of the Company; and Debt of a
Person existing prior to a merger or consolidation of such Person with the Company or any
Subsidiary of the Company in which such Person is the successor of the Company or such Subsidiary
shall be deemed to be incurred upon the

 

 

consummation of such merger or consolidation;
provided, however, that the term “Debt” shall not include any indebtedness that has
been the subject of an “in substance” defeasance in accordance with GAAP.

     “Defaulted Interest” has the meaning specified in Section 307.

     “DTC” means The Depository Trust Company for so long as it shall be a clearing agency
registered under the Exchange Act, or such successor as the Company shall designate from time to
time in an Officer’s Certificate delivered to the Trustee.

     “Dollar” or “$” means a dollar or other equivalent unit in such coin or
currency of the United States of America as at the time shall be legal tender for the payment of
public and private debts.

     “ECU” means European Currency Units as defined and revised from time to time by the
Council of the European Community.

     “Euroclear” means Morgan Guaranty Trust Company of New York, Brussels Office, or its
successor as operator of the Euroclear System.

     “European Community” means the European Economic Community.

     “European Monetary System” means the European Monetary System established by the
Resolution of December 5, 1978 of the Council of the European Community.

     “European Union” means the European Community, the European Coal and Steel Community,
and the European Atomic Energy Community.

     “Event of Default” has the meaning specified in Article Five.

     “Exchange Act” means the Securities Exchange Act of 1934 and any successor statute
thereto, in each case as amended from time to time, and the rules and regulations of the Commission
thereunder.

     “Foreign Currency” means any currency, currency unit or composite currency, including,
without limitation, the ECU, issued by the government of one or more countries other than the
United States of America or by any recognized confederation or association of such governments.

     “GAAP” means generally accepted accounting principles, as in effect from time to time,
as used in the United States applied on a consistent basis; provided that, solely for
purposes of any calculation required by the financial covenants contained herein, “GAAP” shall mean
generally accepted accounting principles as used in the United States on the date hereof, applied
on a consistent basis.

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

     “Holder” means, in the case of a Registered Security, the Person in whose name such
Security is registered in the Security Register and, in the case of a Bearer Security, the bearer
thereof and, when used with respect to any coupon, shall mean the bearer thereof.

     “Indenture” means this instrument as originally executed or as it may from time to
time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof,

 

 

and shall include the terms of particular series of Securities
established as contemplated by Section 301; provided, however, that, if at any time
more than one Person is acting as Trustee under this instrument, “Indenture” shall mean,
with respect to any one or more series of Securities for which such Person is Trustee, this
instrument as originally executed or as it may from time to time be supplemented or amended by one
or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of the particular series of Securities for which such Person is Trustee
established as contemplated by Section 331, exclusive, however, of any provisions or terms which
relate solely to other series of Securities for which such Person is Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms adopted by means of
one or more indentures supplemental hereto executed and delivered after such Person had become such
Trustee but to which such Person, as such Trustee, was not a party.

     “Indexed Security” means a Security the terms of which provide that the principal
amount thereof payable at Stated Maturity may be more or less than the principal face amount
thereof at original issuance.

     “interest” when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, shall mean interest payable after Maturity, and, when
used with respect to a Security which provides for the payment of Additional Amounts pursuant to
Section 1007, includes such Additional Amounts.

     “Interest Payment Date” when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security.

     “Legal Holiday” means a day that is not a Business Day.

     “Maturity,” when used with respect to any Security, means the date on which the
principal of such Security or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, notice of
redemption or repurchase, notice of option to elect repayment or otherwise, and includes the
Redemption Date.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board of
Directors, the President or a Vice President and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Company, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the
Company or an employee of the Company.

     “Original Issue Discount Security” means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 502.

     “Outstanding,” when used with respect to Securities, means, as of the date of
determination, all Securities theretofore authenticated and delivered under this Indenture,
except:

     (i) Securities theretofore canceled by the Trustee or the Security Registrar or delivered to
the Trustee or Security Registrar for cancellation;

     (ii) Securities, or portions thereof, for whose payment or redemption or repayment at the
option of the Holder money in the necessary amount has been theretofore deposited with the Trustee
or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities and
any coupons appertaining thereto, provided that, if such Securities are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made;

     (iii) Securities, except to the extent provided in Sections 1302 and 1303, with respect to
which the Company has effected defeasance and/or covenant defeasance as provided in Article
Thirteen; and

     (iv) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company; provided, however, that in

 

 

determining whether the Holders of the requisite principal amount of the Outstanding Securities
have given any request, demand, authorization, direction, notice, consent or waiver hereunder, and
for the purpose of making the calculations required by TIA Section 313, (i) the principal amount of
an Original Issue Discount Security that may be counted in making such determination or calculation
and that shall be deemed to be Outstanding for such purpose shall be equal to the amount of
principal thereof that would be (or shall have been declared to be) due and payable, at the time of
such determination or calculation, upon a declaration of acceleration of the maturity thereof
pursuant to Section 502, (ii) the principal amount of any Security denominated in a Foreign
Currency that may be counted in making such determination or calculation and that shall be deemed
Outstanding for such purpose shall be equal to the Dollar equivalent, determined pursuant to
Section 301 as of the date such Security is originally issued by the Company, of the principal
amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent as of such date of original issuance of the amount determined as provided in
clause (i) above) of such Security, (iii) the principal amount of any Indexed Security that may be
counted in making such determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the principal face amount of such Indexed Security at original issuance,
unless otherwise provided with respect to such Security pursuant to Section 301, and (iv)
Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in making such determination or
calculation or in relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Securities or coupons on behalf of the Company.

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

     “Place of Payment” when used with respect to any Security, means the place or places
where the principal of (and premium, if any) and interest on such Securities are payable as
specified as contemplated by Sections 301 and 1002.

     “Predecessor Security” of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security or a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security or the Security to which the mutilated,
destroyed, lost or stolen coupon appertains.

     “Recourse Indebtedness” means Debt other than Secured Debt as to which the liability
of the obligor thereon is limited to its interest in the collateral securing such Secured Debt;
provided that no Debt shall constitute Recourse Indebtedness solely by reason of provisions
therein for imposition of full recourse liability on the obligor for certain wrongful acts,
environmental liabilities, or other customary exclusions from the scope of so-called “non-recourse”
provisions.

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

     “Redemption Price,” when used with respect to any Security to be redeemed, means the
price at which it is to be redeemed pursuant to this Indenture or such Security.

     “Registered Security” means any Security which is registered in the Security Register.

 

 

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Registered Securities of or within any series means the date specified for that purpose as
contemplated by Section 301, whether or not a Business Day.

     “Repayment Date,” when used with respect to any Security to be repaid at the option of
the Holder, means the date fixed for such repayment by or pursuant to this Indenture.

     “Repayment Price,” when used with respect to any Security to be repaid at the option
of the Holder, means the price at which it is to be repaid by or pursuant to this Indenture.

     “Responsible Officer” when used with respect to the Trustee, means any vice president
(whether or not designated by a number or a word or words added before or after the title “vice
president”), the secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer, the controller or any
other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of
such officer’s knowledge and familiarity with the particular subject.

     “Secured Debt” means, without duplication, Debt that is secured by a mortgage, trust
deed, deed of trust, deed to secure Debt, security agreement, pledge, conditional sale or other
title retention agreement, capitalized lease, or other like agreement granting or conveying
security title to or a security interest in real property or other tangible assets.

     “Securities Act” means the Securities Act of 1933 and any successor statute thereto,
in each case as amended from time to time, and the rules and regulations of the Commission
thereunder.

     “Security” has the meaning stated in the first recital of this Indenture and, more
particularly, means any Security or Securities authenticated and delivered under this Indenture;
provided, however, that, if at any time there is more than one Person acting as
Trustee under this Indenture, “Securities” with respect to the Indenture as to which such Person is
Trustee shall have the meaning stated in the first recital of this Indenture and shall more
particularly mean Securities authenticated and delivered under this Indenture, exclusive, however,
of Securities of any series as to which such Person is not Trustee.

     “Security Register” and “Security Registrar” have the respective meanings
specified in Section 305.

     “Significant Subsidiary” means any Subsidiary which is a “significant subsidiary” (as
defined in Article I, Rule 1-02 of Regulation S-X, promulgated under the Securities Act) of the
Company.

     “Special Record Date” for the payment of any Defaulted Interest on the Registered
Securities of or within any series means a date fixed by the Trustee pursuant to Section 307.

     “Stated Maturity,” when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security or a coupon
representing such installment of interest as the fixed date on which the principal of such Security
or such installment of principal or interest is due and payable.

     “Subsidiary” means a corporation or a partnership a majority of the outstanding voting
stock or partnership interests, as the case may be, of which is owned, directly or indirectly, by
the Company or by one or more other Subsidiaries of the Company. For the purposes of this
definition, “voting stock” means stock having voting power for the election of directors, whether
at all times or only so long as no senior class of stock has such voting power by reason of any
contingency.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended and as in force at the date as of which this Indenture was executed, except as provided in
Section 905.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this
Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder; provided, however, that if at any time there is

 

 

more than one such
Person, “Trustee” as used with respect to the Securities of any series shall mean only the Trustee
with respect to Securities of that series.

     “United States” means, unless otherwise specified with respect to any Securities
pursuant to Section 301, the United States of America (including the states and the District of
Columbia), its territories, its possessions and other areas subject to its jurisdiction.

     “United States person” means, unless otherwise specified with respect to any
Securities pursuant to Section 301, an individual who is a citizen or resident of the United
States, a corporation or other entity created or organized
in or under the laws of the United States, or an estate or trust the income of which is
subject to United States federal income taxation regardless of its source.

     “Yield to Maturity” means the yield to maturity, computed at the time of issuance of a
Security (or, if applicable, at the most recent redetermination of interest on such Security) and
as set forth in such Security in accordance with generally accepted United States bond yield
computation principles.

     SECTION 102. Compliance Certificates and Opinions. Upon any application or request by
the Company to the Trustee to take any action under any provision of this Indenture, 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, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or opinion need be
furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (including certificates delivered pursuant to Section 1011) shall include:

     (1) a statement that each individual signing such certificate or opinion has read such
condition or covenant and the definitions herein relating thereto;

     (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 each such individual, he or she has made such
examination or investigation as is necessary to enable the individual to express an informed
opinion as to whether or not such condition or covenant has been complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such condition or
covenant has been complied with.

     SECTION 103. Form of Documents Delivered to Trustee. In any case where several matters
are required to be certified by, or covered by an opinion of, any specified Person, it is not
necessary that all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion as to some matters and one or more other such Persons as to other
matters, and any such Person may certify or give an opinion as to such matters in one or several
documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon an Opinion of Counsel, or a certificate or representations by counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the opinion,
certificate or representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such Opinion of Counsel or certificate or representations may
be based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the information as to such
factual matters is in the possession of the Company, unless such counsel knows that the certificate
or opinion or representations as to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

 

 

     SECTION 104. Acts of Holders. (a) Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders
of the Outstanding Securities of all series or one or more series, as the case may be, may be
embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing. Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of a writing appointing any
such agent, or of the holding by any Person of a Security, shall be sufficient for any purpose of
this Indenture and (subject to Section 602) conclusive in favor of the Trustee and the Company and
any agent of the Trustee or the Company, if made in the manner provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other reasonable manner which the Trustee deems sufficient. Subject to
Article Six, the execution of any instrument by a Holder or his agent may be proved in accordance
with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as
shall be satisfactory to the Trustee.

     (c) The ownership of Registered Securities shall be proved by the Security Register.

     (d) The ownership of Bearer Securities may be proved by the production of such Bearer
Securities or by a certificate executed, as depositary, by any trust company, bank, banker or other
depositary, wherever situated, if such certificate shall be deemed by the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on deposit with such
depositary, or exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer Securities, if such
certificate or affidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company
may assume that such ownership of any Bearer Security continues until (1) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3) such Bearer Security
is surrendered in exchange for a Registered Security, or (4) such Bearer Security is no longer
Outstanding. The ownership of Bearer Securities may also be proved in any other manner which the
Trustee deems sufficient.

     (e) If the Company shall solicit from the Holders of Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its
option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c),
such record date shall be the record date specified in or pursuant to such Board Resolution, which
shall be a date not earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith and not later than the date such solicitation is completed. If
such a record date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record date, but only the Holders of record
at the close of business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding Securities have authorized
or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other Act, and for that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders on such
record date shall be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than eleven months after the record date.

     (f) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee, any Security
Registrar, any Paying Agent, any Authenticating Agent or the Company in reliance thereon, whether
or not notation of such action is made upon such Security.

 

 

     SECTION 105. Notices, etc., to Trustee and Company. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed with,

     (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate
Trust Office, or

     (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first class
postage prepaid, to the Company addressed to it at the address of its principal office specified in
the first paragraph of this Indenture or at any other address previously furnished in writing to
the Trustee by the Company.

     SECTION 106. Notice to Holders; Waiver. Where this Indenture provides for notice of
any event to Holders of Registered Securities by the Company or the Trustee, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his address as it
appears in the Security Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to Holders of Registered
Securities is given by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to
other Holders of Registered Securities or the sufficiency of any notice to Holders of Bearer
Securities given as provided herein. Any notice mailed to a Holder in the manner herein prescribed
shall be conclusively deemed to have been received by such Holder, whether or not such Holder
actually receives such notice.

     If by reason of the suspension of or irregularities in regular mail service or by reason of
any other cause it shall be impracticable to give such notice by mail, then such notification to
Holders of Registered Securities as shall be made with the approval of the Trustee shall constitute
a sufficient notification to such Holders for every purpose hereunder.

     Except as otherwise expressly provided herein or otherwise specified with respect to any
Securities pursuant to Section 301, where this Indenture provides for notice to Holders of Bearer
Securities of any event, such notice shall be sufficiently given if published in an Authorized
Newspaper in The City of New York and in such other city or cities as may be specified in such
Securities on a Business Day, such publication to be not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice. Any such notice shall be
deemed to have been given on the date of such publication or, if published more than once, on the
date of the first such publication.

     If by reason of the suspension of publication of any Authorized Newspaper or Authorized
Newspapers or by reason of any other cause it shall be impracticable to publish any notice to
Holders of Bearer Securities as provided above, then such notification to Holders of Bearer
Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither the failure to give notice by publication to any
particular Holder of Bearer Securities as provided above, nor any defect in any notice so
published, shall affect the sufficiency of such notice with respect to other Holders of Bearer
Securities or the sufficiency of any notice to Holders of Registered Securities given as provided
herein.

     Any request, demand, authorization, direction, notice, consent or waiver required or permitted
under this Indenture shall be in the English language, except that any published notice may be in
an official language of the country of publication.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     SECTION 107. Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.

     SECTION 108. Successors and Assigns. All covenants and agreements in this Indenture by
the Company shall be binding on their successors and assigns, whether so expressed or not.

 

 

     SECTION 109. Separability Clause. In case any provision in this Indenture or in any
Security or coupon shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     SECTION 110. Benefits of Indenture. Nothing in this Indenture, in the Securities or
coupons, express or implied, shall give to any Person, other than the Parties hereto, any Security
Registrar, any Paying Agent, any Authenticating Agent and their successors hereunder and the
Holders any benefit or any legal or equitable right, remedy or claim under this Indenture.

     SECTION 111. No Personal Liability. No recourse under or upon any obligation, covenant
or agreement contained in this Indenture, in any Security or coupon appertaining thereto, or
because of any indebtedness evidenced thereby, shall be had against any promoter, as such, or
against any past, present or future shareholder, officer or director, as such, of the Company or of
any successor, either directly or through the Company or any successor, under any rule of law,
statute or constitutional provision or by the enforcement of any assessment or by any legal or
equitable proceeding or otherwise, all such liability being expressly waived and released by the
acceptance of the Securities by the Holders thereof and as part of the consideration for the issue
of the Securities.

     SECTION 112. Governing Law. This Indenture and the Securities and coupons shall be
governed by and construed in accordance with the internal laws of the State of New York. This
Indenture is subject to the provisions of the TIA that are required to be part of this Indenture
and shall, to the extent applicable, be governed by such provisions.

     SECTION 113. Legal Holidays. In any case where any Interest Payment Date, Redemption
Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity of any Security shall
not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this
Indenture or any Security or coupon other than a provision in the Securities of any series which
specifically states that such provision shall apply in lieu hereof), payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on such date, but may be
made on the next succeeding Business Day at such Place of Payment with the same force and effect as
if made on the Interest Payment Date, Redemption Date, Repayment Date or sinking fund payment date,
or at the Stated Maturity or Maturity, provided that no interest shall accrue on the amount
so payable for the period from and after such Interest Payment Date, Redemption Date, Repayment
Date, sinking fund payment date, Stated Maturity or Maturity, as the case may be.

ARTICLE TWO

SECURITIES FORMS

     SECTION 201. Forms of Securities. The Registered Securities, if any, of each series
and the Bearer Securities, if any, of each series and related coupons shall be in substantially the
forms as shall be established in one or more indentures supplemental hereto or approved from time
to time by or pursuant to a Board Resolution in accordance with this Indenture, shall have such
appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture or any indenture supplemental hereto, and may have such letters, numbers or other
marks of identification or designation and such legends or endorsements placed thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or
as may be required to comply with any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any stock exchange on which the Securities may be listed, or to
conform to usage.

     Unless otherwise specified as contemplated by Section 301, Bearer Securities shall have
interest coupons attached.

     The definitive Securities and coupons shall be printed, lithographed or engraved or produced
by any combination of these methods on a steel engraved border or steel engraved borders or may be
produced in any other manner, all as determined by the officers executing such Securities or
coupons, as evidenced by their execution of such Securities or coupons.

 

 

     SECTION 202. Form of Trustee’s Certificate of Authentication. Subject to Section 611,
the Trustee’s certificate of authentication shall be in substantially the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated:                                         

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

     SECTION 203. Securities Issuable in Global Form. If Securities of or within a series
are issuable in global form, as specified as contemplated by Section 301, then, notwithstanding
clause (8) of Section 301 and the provisions of Section 302, any such Security shall represent such
of the Outstanding Securities of such series as shall be specified therein and may provide that it
shall represent the aggregate amount of Outstanding Securities of such series from time to time
endorsed thereon and that the aggregate amount of Outstanding Securities of such series represented
thereby may from time to time be increased or decreased to reflect exchanges. Any endorsement of a
Security in global form to reflect the amount, or any increase or decrease in the amount, of
Outstanding Securities represented thereby shall be made by the Trustee in such manner and upon
instructions given by such Person or Persons as shall be specified therein or in the Company Order
to be delivered to the Trustee pursuant to Section 303 or 304. Subject to the provisions of Section
303 and, if applicable, Section 304, the Trustee shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions given by the Person or Persons specified
therein or in the applicable Company Order. If a Company Order pursuant to Section 303 or 304 has
been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement
or delivery or redelivery of a Security in global form shall be in writing but need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel.

     The provisions of the last sentence of Section 303 shall apply to any Security represented by
a Security in global form if such Security was never issued and sold by the Company and the Company
delivers to the Trustee the Security in global form together with written instructions (which need
not comply with Section 102 and need not be accompanied by an Opinion of Counsel) with regard to
the reduction in the principal amount of Securities represented thereby, together with the written
statement contemplated by the last sentence of Section 303.

     Notwithstanding the provisions of Section 307, unless otherwise specified as contemplated by
Section 301, payment of principal of (and premium, if any) and interest on any Security in
permanent global form shall be made to the Person or Persons specified therein.

     Notwithstanding the provisions of Section 308 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat as the
Holder of such principal amount of Outstanding Securities represented by a permanent global
Security (i) in the case of a permanent global Security in registered form, the Holder of such
permanent global Security in registered form, or (ii) in the case of a permanent global Security in
bearer form, Euroclear or CEDEL.

ARTICLE THREE

THE SECURITIES

     SECTION 301. Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.

 

 

     The Securities may be issued in one or more series. There shall be established in one or more
Board Resolutions or pursuant to authority granted by one or more Board Resolutions and, subject to
Section 303, set forth, or determined in the manner provided, in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance of Securities of
any series, any or all of the following, as applicable (each of which (except for the matters set
forth in clauses (1), (2) and (15) below), if so provided, may be determined from time to time by
the Company with respect to unissued Securities of the series when issued from time to time):

     (1) the title of the Securities of the series (which shall distinguish the Securities of such
series from all other series of Securities);

     (2) any limit upon the aggregate principal amount of the Securities of the series that may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 304, 305, 306, 906, 1107 or 1305);

     (3) the date or dates, or the method by which such date or dates will be determined, on which
the principal of the Securities of the series shall be payable;

     (4) the rate or rates at which the Securities of the series shall bear interest, if any, or
the method by which such rate or rates shall be determined, the date or dates from which such
interest shall accrue or the method by which such date or dates shall be determined, the Interest
Payment Dates on which such interest will be payable and the Regular Record Date, if any, for the
interest payable on any Registered Security on any Interest Payment Date, or the method by which
such date shall be determined, and the basis upon which interest shall be calculated if other than
that of a 360-day year of twelve 30-day months;

     (5) the place or places, if any, other than or in addition to the Borough of Manhattan, the
City of New York, where any principal of (and premium) and interest payable in respect of
Securities of the series shall be payable, any Registered Securities of the series may be
surrendered for registration of transfer, exchange or conversion and notices or demands to or upon
the Company in respect of the Securities of the series and this Indenture may be served;

     (6) the period or periods within which, the price or prices (including, if any) at which, the
currency or currencies, currency unit or units or composite currency or currencies in which, and
other terms and conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, if the Company is to have the option;

     (7) the obligation, if any, of the Company to redeem, repay or purchase Securities of the
series pursuant to any provision or at the option of a Holder thereof, and the period or periods
within which or the date or dates on which, the price or prices at which, the currency or
currencies, currency unit or units or composite currency or currencies in which, and other terms
and conditions upon which Securities of the series shall be redeemed, repaid or purchased
(including without limitation whether, and the extent to which, the premium shall be payable in
connection therewith), in whole or in part, pursuant to such obligation.

     (8) if other than denominations of $1,000 and any integral multiple thereof, the denominations
in which any Registered Securities of the series shall be issuable and, if other than the
denomination of $5,000, the denomination or denominations in which any Bearer Securities of the
series shall be issuable;

     (9) if other than the Trustee, the identity of each Security Registrar and/or Paying Agent;

     (10) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series that shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 502 or, if applicable, the portion of the principal amount of
Securities of the series that is convertible in accordance with the provisions of this Indenture,
or the method by which such portion shall be determined;

     (11) if other than Dollars, the Foreign Currency or Currencies in which payment of the
principal of (and premium, if any) or interest on the Securities of the series shall be payable or
in which the Securities of the series shall be denominated;

 

 

     (12) whether the amount of payments of principal of (and premium, if any) or interest, if any,
on the Securities of the series may be determined with reference to an index, formula or other
method (which index, formula or method may be based, without limitation, on one or more currencies,
currency units, composite currencies, commodities, equity indices or other indices), and the manner
in which such amounts shall be determined;

     (13) whether the principal of (and premium, if any) or interest on the Securities of the
series are to be payable, at the election of the Company, or a Holder thereof, in a currency or
currencies, currency unit or units or composite currency or currencies other than that in which
such Securities are denominated or stated to be payable, the period or periods within which, and
the terms and conditions upon which, such election may be made, and the time and manner of, and
identity of the exchange rate agent with responsibility for, determining the exchange rate between
the currency or currencies, currency unit or units or composite currency or currencies in which
such Securities are denominated or stated to be payable and the currency or currencies, currency
unit or units or composite currency or currencies in which such Securities are to be so payable;

     (14) provisions, if any, granting special rights to the Holders of Securities of the series
upon the occurrence of such events as may be specified;

     (15) any deletions from, modifications of or additions to the Events of Default or covenants
of the Company with respect to Securities of the series, whether or not such Events of Default or
covenants are consistent with the Events of Default or covenants set forth herein;

     (16) if the Securities are to be issued other than as Registered Securities in definitive
form, whether Securities of the series are to be issuable as Registered Securities, Bearer
Securities (with or without coupons) or both, any restrictions applicable to the offer, sale or
delivery of Bearer Securities and the terms upon which Bearer Securities of the series may be
exchanged for Registered Securities of the series and vice versa (if permitted by applicable laws
and regulations), whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in permanent global form
with or without coupons and, if so, whether beneficial owners of interests in any such permanent
global Security may exchange such interests for Securities of such series and of like tenor of any
authorized form and denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in Section 305, and, if Registered Securities of the series are
to be issuable as a global Security, the identity of the depositary for such series;

     (17) the date as of which any Bearer Securities of the series and any temporary global
Security representing Outstanding Securities of the series shall be dated if other than the date of
original issuance of the first Security of the series to be issued;

     (18) the Person to whom any interest on any Registered Security of the series shall be
payable, if other than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest,
the manner in which, or the Person to whom, any interest on any Bearer Security of the series shall
be payable, if otherwise than upon presentation and surrender of the coupons appertaining thereto
as they severally mature, and the extent to which, or the manner in which, any interest payable on
a temporary global Security on an Interest Payment Date will be paid if other than in the manner
provided in Section 304;

     (19) the applicability, if any, of Sections 1302 and/or 1303 to the Securities of the series
and any provisions in modification of, in addition to or in lieu of any of the provisions of
Article Thirteen;

     (20) if the Securities of such series are to be issuable in definitive form (whether upon
original issue or upon exchange of a temporary Security of such series) only upon receipt of
certain certificates or other documents or satisfaction of other conditions, then the form and/or
terms of such certificates, documents or conditions;

     (21) if the Securities of the series are to be issued upon the exercise of warrants, the time,
manner and place for such Securities to be authenticated and delivered;

     (22) whether and under what circumstances the Company will pay Additional Amounts as
contemplated by Section 1009 on the Securities of the series to any Holder who is not a United
States person (including any modification to the definition of such term) in respect of any tax,
assessment or governmental charge and, if so,

 

 

whether the Company will have the option to redeem
such Securities rather than pay such Additional Amounts (and the terms of any such option);

     (23) whether and to what extent the Securities of the series are to be guaranteed by one or
more of the Subsidiaries of the Company or other Persons; and

     (24) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture).

     All Securities of any one series and the coupons appertaining to any Bearer Securities of such
series shall be substantially identical except, in the case of Registered Securities, as to
denomination and except as may otherwise be provided in or pursuant to such Board Resolution
(subject to Section 303) and set forth in such Officers’ Certificate or in any such indenture
supplemental hereto. All Securities of any one series need not be issued at the same time and,
unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series.

     If any of the terms of the Securities of any series are established by action taken pursuant
to one or more Board Resolutions, a copy of an appropriate record of such action(s) shall be
certified by the Secretary or an Assistant Secretary of the Company on behalf of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’ Certificate setting forth the
terms of the Securities of such series.

     SECTION 302. Denominations. The Securities of each series shall be issuable in such
denominations as shall be specified as contemplated by Section 301. With respect to Securities of
any series denominated in Dollars, in the absence of any such provisions with respect to the
Securities of any series, the Registered Securities of such series, other than Registered
Securities issued in global form (which may be of any denomination), shall be issuable in
denominations of $1,000 and any integral multiple thereof and the Bearer Securities of such series,
other than Bearer Securities issued in global form (which may be of any denomination), shall be
issuable in a denomination of $5,000.

     SECTION 303. Execution, Authentication, Delivery and Dating. The Securities and any
coupons appertaining thereto shall be executed by the Company’s Chairman of the Board, its
President or one of its Senior Vice Presidents, and its Chief Financial Officer or Controller. The
signature of any of these officers on the Securities and coupons may be manual or facsimile
signatures of the present or any future such authorized officer and may be imprinted or otherwise
reproduced on the Securities.

     Securities or coupons bearing the manual or facsimile signatures of individuals who were at
any time the proper officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities did not hold such offices at the date of such Securities or coupons.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series, together with any coupon appertaining thereto,
executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of
such Securities, and the Trustee in accordance with the Company Order shall authenticate and
deliver such Securities; provided, however, that, in connection with its original
issuance, no Bearer Security shall be mailed or otherwise delivered to any location in the United
States; and provided further that, unless otherwise specified with respect to any series of
Securities pursuant to Section 301, a Bearer Security may be delivered in connection with its
original issuance only if the Person entitled to receive such Bearer Security shall have furnished
a certificate to Euroclear or CEDEL, as the case may be, in the form set forth in Exhibit A-1 to
this Indenture or such other certificate as may be specified with respect to any series of
Securities pursuant to Section 301, dated no earlier than 15 days prior to the earlier of the date
on which such Bearer Security is delivered and the date on which any temporary Security first
becomes exchangeable for such Bearer Security in accordance with the terms of such temporary
Security and this Indenture. If any Security shall be represented by a permanent global Bearer
Security, then, for purposes of this Section and Section 304, the notation of a beneficial owner’s
interest therein upon original issuance of such Security or upon exchange of a portion of a
temporary global Security shall be deemed to be delivery in connection with its original issuance
of such beneficial owner’s interest in such permanent global Security. Except as permitted by
Section 306, the Trustee shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured have been detached and canceled.

 

 

     If all the Securities of any series are not to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit, such Company Order
may set forth procedures acceptable to the Trustee for the issuance of such Securities and
determining the terms of particular Securities of such series, such as interest rate or formula,
maturity date, date of issuance and date from which interest shall accrue. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to TIA Section 315(a) through
315(d)) shall be fully protected in relying upon,

     (i) an Opinion of Counsel stating that

          (a) the form or forms of such Securities and any coupons have been established in conformity
with the provisions of this Indenture;

          (b) the terms of such Securities and any coupons have been established in conformity with the
provisions of this Indenture; and

          (c) such Securities, together with any coupons appertaining thereto, when completed by
appropriate insertions and executed and delivered by the Company to the Trustee for authentication
in accordance with this Indenture, authenticated and delivered by the Trustee in accordance with
this Indenture and issued by the Company in the manner and subject to any conditions specified in
such Opinion of Counsel, will constitute legal, valid and binding obligations of the Company,
enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization and other similar laws of general applicability relating to or affecting the
enforcement of creditors’ rights generally and to general equitable principles; and

     (ii) an Officers’ Certificate stating that all conditions precedent provided for in this
Indenture relating to the issuance of the Securities have been complied with and that, to the best
of the knowledge of the signers of such certificate, that no Event of Default with respect to any
of the Securities shall have occurred and be continuing.

     If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties, obligations or immunities under the Securities and this Indenture
or otherwise in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all the
Securities of any series are not to be issued at one time, it shall not be necessary to deliver an
Officers’ Certificate otherwise required pursuant to Section 301 or a Company Order, or an Opinion
of Counsel or an Officers’ Certificate otherwise
required pursuant to the preceding paragraph at the time of issuance of each Security of such
series, but such order, opinion and certificates, with appropriate modifications to cover such
future issuances, shall be delivered at or before the time of issuance of the first Security of
such series.

     Each Registered Security shall be dated the date of its authentication and each Bearer
Security shall be dated as of the date specified as contemplated by Section 301.

 

 

     No Security or coupon shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security or Security to which such coupon
appertains a certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized signatory, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this Indenture.
Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 309 together with a written statement (which
need not comply with Section 102 and need not be accompanied by an Opinion of Counsel) stating that
such Security has never been issued and sold by the Company, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

     SECTION 304. Temporary Securities. (a) Pending the preparation of definitive
Securities of any series, the Company may execute, and upon Company Order, the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of
the definitive Securities in lieu of which they are issued, in registered form, or, if authorized,
in bearer form with one or more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such Securities may
determine, as conclusively evidenced by their execution of such Securities. In the case of
Securities of any series, such temporary Securities may be in global form.

     Except in the case of temporary Securities in global form (which shall be exchanged in
accordance with Section 304(b) or as otherwise provided in or pursuant to a Board Resolution), if
temporary Securities of any series are issued, the Company will cause definitive Securities of that
series to be prepared without unreasonable delay. After the preparation of definitive securities of
such series, the temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such series at the office
or agency of the Company in a Place of Payment for that series, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities of any series (accompanied by
any non-matured coupons appertaining thereto), the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of definitive Securities of
the same series of authorized denominations; provided, however, that no definitive
Bearer Security shall be delivered in exchange for a temporary Registered Security; and
provided further that a definitive Bearer Security shall be delivered in exchange for a
temporary Bearer Security only in compliance with the conditions set forth in Section 303. Until so
exchanged, the temporary Securities of any series shall in all respects be entitled to the same
benefits under this Indenture as definitive Securities of such series.

     (b) Unless otherwise provided in or pursuant to a Board Resolution, this Section 304(b) shall
govern the exchange of temporary Securities issued in global form other than through the facilities
of The Depository Trust Company. If any such temporary Security is issued in global form, then such
temporary global Security shall, unless otherwise provided therein, be delivered to the London
office of a depositary or common depositary (the “Common Depositary”), for the benefit of Euroclear
and CEDEL, for credit to the respective accounts of the beneficial owners of such Securities (or to
such other accounts as they may direct).

     Without unnecessary delay but in any event not later than the date specified in, or determined
pursuant to the terms of, any such temporary global Security (the “Exchange Date”), the Company
shall deliver to the Trustee definitive Securities, in aggregate principal amount equal to the
principal amount of such temporary global Security, executed by the Company. On or after the
Exchange Date, such temporary global Security shall be surrendered by the Common Depositary to the
Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or from time to time in
part, for definitive Securities without charge, and the Trustee shall authenticate and deliver, in
exchange for each portion of such temporary global Security, an equal aggregate principal amount of
definitive Securities of the same series of authorized denominations and of like tenor as the
portion of such temporary global Security to be exchanged. The definitive Securities to be delivered in exchange
for any such temporary global Security shall be in bearer form, registered form, permanent global
bearer form or permanent global registered form, or any combination thereof, as specified as
contemplated by Section 301, and, if any
combination thereof is so specified, as requested by the beneficial owner thereof;
provided, however, that, unless otherwise specified in such temporary global
Security, upon such presentation by the Common Depositary, such

 

 

temporary global Security is
accompanied by a certificate dated the Exchange Date or a subsequent date and signed by Euroclear
as to the portion of such temporary global Security held for its account then to be exchanged and a
certificate dated the Exchange Date or a subsequent date and signed by CEDEL as to the portion of
such temporary global Security held for its account then to be exchanged, each in the form set
forth in Exhibit A-2 to this Indenture or in such other form as may be established pursuant to
Section 301; and provided further that definitive Bearer Securities shall be delivered in
exchange for a portion of a temporary global Security only in compliance with the requirements of
Section 303.

     Unless otherwise specified in such temporary global Security, the interest of a beneficial
owner of Securities of a series in a temporary global Security shall be exchanged for definitive
Securities of the same series and of like tenor following the Exchange Date when the account holder
instructs Euroclear or CEDEL, as the case may be, to request such exchange on his behalf and
delivers to Euroclear or CEDEL, as the case may be, a certificate in the form set forth in Exhibit
A-1 to this Indenture (or in such other form as may be established pursuant to Section 301), dated
no earlier than 15 days prior to the Exchange Date, copies of which certificate shall be available
from the offices of Euroclear and CEDEL, the Trustee, any Authenticating Agent appointed for such
series of Securities and each Paying Agent. Unless otherwise specified in such temporary global
Security, any such exchange shall be made free of charge to the beneficial owners of such temporary
global Security, except that a Person receiving definitive Securities must bear the cost of
insurance, postage, transportation and the like unless such Person takes delivery of such
definitive Securities in person at the offices of Euroclear or CEDEL. Definitive Securities in
bearer form to be delivered in exchange for any portion of a temporary global Security shall be
delivered only outside the United States.

     Until exchanged in full as hereinabove provided, the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as definitive Securities of
the same series and of like tenor authenticated and delivered hereunder, except that, unless
otherwise specified as contemplated by Section 301, interest payable on a temporary global Security
on an Interest Payment Date for Securities of such series occurring prior to the applicable
Exchange Date shall be payable to Euroclear and CEDEL on such Interest Payment Date upon delivery
by Euroclear and CEDEL to the Trustee of a certificate or certificates in the form set forth in
Exhibit A-2 to this Indenture (or in such other forms as may be established pursuant to Section
301), for credit without further interest on or after such Interest Payment Date to the respective
accounts of Persons who are the beneficial owners of such temporary global Security on such
Interest Payment Date and who have each delivered to Euroclear or CEDEL, as the case may be, a
certificate dated no earlier than 15 days prior to the Interest Payment Date occurring prior to
such Exchange Date in the form set forth as Exhibit A-1 to this Indenture (or in such other forms
as may be established pursuant to Section 301). Notwithstanding anything to the contrary herein
contained, the certifications made pursuant to this paragraph shall satisfy the certification
requirements of the preceding two paragraphs of this Section 304(b) and of the third paragraph of
Section 303 of this Indenture and the interests of the Persons who are the beneficial owners of the
temporary global Security with respect to which such certification was made will be exchanged for
definitive Securities of the same series and of like tenor on the Exchange Date or the date of
certification if such date occurs after the Exchange Date, without further act or deed by such
beneficial owners. Except as otherwise provided in this paragraph, no payments of principal or
interest owing with respect to a beneficial interest in a temporary global Security will be made
unless and until such interest in such temporary global Security shall have been exchanged for an
interest in a definitive Security. Any interest so received by Euroclear and CEDEL and not paid as
herein provided shall be returned to the Trustee prior to the expiration of two years after such
Interest Payment Date in order to be repaid to the Company.

     SECTION 305. Registration, Registration of Transfer and Exchange. The Company shall
cause to be kept at the Corporate Trust Office of the Trustee or in any office or agency of the
Company in a Place of Payment a register for each series of Securities (the registers maintained in
such office or in any such office or agency of the Company in a Place of Payment being herein
sometimes referred to collectively as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities. The Security Register shall be in written
form or any other form capable of being converted into written form within a reasonable time. The Trustee, at
its Corporate Trust Office, is hereby initially appointed “Security Registrar” for the purpose of
registering Registered Securities and transfers of Registered Securities on such Security Register
as herein provided. In the event that the Trustee shall cease to be Security Registrar, it shall
have the right to examine the Security Register at all reasonable times.

 

 

     Subject to the provisions of this Section 305, upon surrender for registration of transfer of
any Registered Security of any series at any office or agency of the Company in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Registered Securities of the same
series, of any authorized denominations and of a like aggregate principal amount, bearing a number
not contemporaneously outstanding, and containing identical terms and provisions.

     Subject to the provisions of this Section 305, at the option of the Holder, Registered
Securities of any series may be exchanged for other Registered Securities of the same series, of
any authorized denomination or denominations and of a like aggregate principal amount, containing
identical terms and provisions, upon surrender of the Registered Securities to be exchanged at any
such office or agency. Whenever any such Registered Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the Registered Securities
which the Holder making the exchange is entitled to receive. Unless otherwise specified with
respect to any series of Securities as contemplated by Section 301, Bearer Securities may not be
issued in exchange for Registered Securities.

     If (but only if) permitted by the applicable Board Resolution and (subject to Section 303) set
forth in the applicable Officers’ Certificate, or in any indenture supplemental hereto, delivered
as contemplated by Section 301, at the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized denominations and of a
like aggregate principal amount and tenor, upon surrender of the Bearer Securities to be exchanged
at any such office or agency, with all unmatured coupons and all matured coupons in default thereto
appertaining. If the Holder of a Bearer Security is unable to produce any such unmatured coupon or
coupons or matured coupon or coupons in default, any such permitted exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company in an amount equal
to the face amount of such missing coupon or coupons, or the surrender of such missing coupon or
coupons may be waived by the Company and the Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent harmless. If thereafter the
Holder of such Security shall surrender to any Paying Agent any such missing coupon in respect of
which such a payment shall have been made, such Holder shall be entitled to receive the amount of
such payment; provided, however, that, except as otherwise provided in Section
1002, interest represented by coupons shall be payable only upon presentation and surrender of
those coupons at an office or agency located outside the United States. Notwithstanding the
foregoing, in case a Bearer Security of any series is surrendered at any such office or agency in a
permitted exchange for a Registered Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and before the opening of business
at such office or agency on the relevant Interest Payment Date, or (ii) any Special Record Date and
before the opening of business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date or proposed date for payment, as the case may be, and interest or Defaulted
Interest, as the case may be, will not be payable on such Interest Payment Date or proposed date
for payment, as the case may be, in respect of the Registered Security issued in exchange for such
Bearer Security, but will be payable only to the Holder of such coupon when due in accordance with
the provisions of this Indenture. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the
Holder making the exchange is entitled to receive.

     Notwithstanding the foregoing, except as otherwise specified as contemplated by Section 301,
any permanent global Security shall be exchangeable only as provided in this paragraph. If the
depositary for any permanent global Security is “DTC,” then, unless the terms of such global
Security expressly permit such global Security to be exchanged in whole or in part for definitive
Securities, a global Security may be transferred, in whole but not in part, only to a nominee of
DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such global Security selected or
approved by the Company or to a nominee of such successor to DTC. If at any time DTC notifies the
Company that it is unwilling or unable to continue as depositary for the applicable global
Security or Securities or if at any time DTC ceases to be a clearing agency registered under the
Exchange Act if so required by applicable law or regulation, the Company shall appoint a successor depositary with respect to
such global Security or Securities. If (x) a successor depositary for such global Security or
Securities is not appointed by the Company within 90 days after the Company receives such notice or
becomes aware of such unwillingness, inability or ineligibility, (y) an Event of Default has
occurred and is continuing and the beneficial owners representing a

 

 

majority in principal amount of
the applicable series of Securities represented by such global Security or Securities advise DTC to
cease acting as depositary for such global Security or Securities or (z) the Company, in its sole
discretion, determines at any time that all Outstanding Securities (but not less than all) of any
series issued or issuable in the form of one or more global Securities shall no longer be
represented by such global Security or Securities, then the Company shall execute, and the Trustee
shall authenticate and deliver definitive Securities of like series, rank, tenor and terms in
definitive form in an aggregate principal amount equal to the principal amount of such global
Security or Securities. If any beneficial owner of an interest in a permanent global Security is
otherwise entitled to exchange such interest for Securities of such series and of like tenor and
principal amount of another authorized form and denomination, as specified as contemplated by
Section 301 and provided that any applicable notice provided in the permanent global Security shall
have been given, then without unnecessary delay but in any event not later than the earliest date
on which such interest may be so exchanged, the Company shall execute, and the Trustee shall
authenticate and deliver definitive Securities in aggregate principal amount equal to the principal
amount of such beneficial owner’s interest in such permanent global Security. On or after the
earliest date on which such interests may be so exchanged, such permanent global Security shall be
surrendered for exchange by DTC or such other depositary as shall be specified in the Company Order
with respect thereto to the Trustee, as the Company’s agent for such purpose; provided,
however, that no such exchanges may occur during a period beginning at the opening of
business 15 days before any selection of Securities to be redeemed and ending on the relevant
Redemption Date if the Security for which exchange is requested may be among those selected for
redemption; and provided further that no Bearer Security delivered in exchange for
a portion of a permanent global Security shall be mailed or otherwise delivered to any location in
the United States. If a Registered Security is issued in exchange for any portion of a permanent
global Security after the close of business at the office or agency where such exchange occurs on
(i) any Regular Record Date and before the opening of business at such office or agency on the
relevant Interest Payment Date, or (ii) any Special Record Date and the opening of business at such
office or agency on the related proposed date for payment of Defaulted Interest, interest or
Defaulted Interest, as the case may be, will not be payable on such Interest Payment Date or
proposed date for payment, as the case may be, in respect of such Registered Security, but will be
payable on such Interest Payment Date or proposed date for payment, as the case may be, only to the
Person to whom interest in respect of such portion of such permanent global Security is payable in
accordance with the provisions of this Indenture.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     Every Registered Security presented or surrendered for registration of transfer or for
exchange or redemption shall (if so required by the Company or the Security Registrar) be duly
endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar, duly executed by the Holder thereof or his attorney duly authorized in
writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or 1305 not involving any
transfer.

     The Company, or the Trustee, as applicable, shall not be required (i) to issue, register the
transfer of or exchange any Security if such Security may be among those selected for redemption
during a period beginning at the opening of business 15 days before selection of the Securities to
be redeemed under Section 1103 and ending at the close of business on (A) if such Securities are
issuable only as Registered Securities, the day of the mailing of the relevant notice of redemption
and (B) if such Securities are issuable as Bearer Securities, the day of the first
publication of the relevant notice of redemption or, if such Securities are also issuable as
Registered Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any
Registered Security so selected for redemption in whole or in part, except, in the case of any Registered Security to be redeemed in
part, the portion thereof not to be redeemed, or (iii) to
exchange any Bearer Security so selected for redemption except that such a Bearer Security may be exchanged for a Registered Security of
that series and like tenor, provided that such Registered Security shall be simultaneously
surrendered for redemption, or (iv) to issue, register the transfer of or exchange any Security
which has been surrendered for repayment at the option of the Holder, except the portion, if any,
of such Security not to be so repaid.

 

 

     SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated
Security or a Security with a mutilated coupon appertaining to it is surrendered to the Trustee or
the Company, together with, in proper cases, such security or indemnity as may be required by the
Company or the Trustee to save each of them or any agent of either of them harmless, the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series and principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the coupons, if any,
appertaining to the surrendered Security.

     If there shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or coupon, and (ii) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security or in exchange for
the Security to which a destroyed, lost or stolen coupon appertains (with all appurtenant coupons
not destroyed, lost or stolen), a new Security of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to such destroyed, lost or stolen Security or to
the Security to which such destroyed, lost or stolen coupon appertains.

     Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated,
destroyed, lost or stolen Security or coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, with coupons corresponding to the
coupons, if any, appertaining to such destroyed, lost or stolen Security or to the Security to
which such destroyed, lost or stolen coupon appertains, pay such Security or coupon;
provided, however, that payment of the principal of (and premium, if any) and
interest on Bearer Securities shall, except as otherwise provided in Section 1002, be payable only
at an office or agency located outside the United States and, unless otherwise specified as
contemplated by Section 301, any interest on Bearer Securities shall be payable only upon
presentation and surrender of the coupons appertaining thereto.

     Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Security of any series with its coupons, if any, issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security, or in exchange for a Security to which a destroyed,
lost or stolen coupon appertains, shall constitute an original additional contractual obligation of
the Company, whether or not the destroyed, lost or stolen Security and its coupons, if any, or the
destroyed, lost or stolen coupon shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of that series and their coupons, if any, duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities or coupons.

     SECTION 307. Payment of Interest; Interest Rights Preserved. Except as otherwise
specified with respect to a series of Securities in accordance with the provisions of Section 301,
interest on any Registered Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest at the office or
agency of the Company maintained for such purpose pursuant to Section 1002; provided,
however, that, except as otherwise provided with respect to any series of Securities, or as
provided below with respect to global Securities, each installment of interest on any Registered

     Security may at the Company’s option be paid by (i) mailing a check for such interest, payable to
or upon the written order of the Person entitled thereto pursuant to Section 308, to the address of
such Person as it appears on the Security Register or (ii) transfer to an account maintained by the
payee located inside the United States.

     Unless otherwise provided as contemplated by Section 301 with respect to the Securities of any
series, payment of interest may be made, in the case of a Bearer Security, by transfer to an
account maintained by the payee with a bank located outside the United States.

 

 

     Unless otherwise provided as contemplated by Section 301, every permanent global Security will
provide that interest, if any, payable on any Interest Payment Date will be paid to DTC, Euroclear
and/or CEDEL, as the case may be, with respect to that portion of such permanent global Security
held for its account by Cede & Co. or the Common Depositary, as the case may be, for the purpose of
permitting such party to credit the interest received by it in respect of such permanent global
Security to the accounts of the beneficial owners thereof and that all payments with respect to
such permanent global Security shall be made by wire transfer of immediately available funds.

     In case a Bearer Security of any series is surrendered in exchange for a Registered Security
of such series after the close of business (at an office or agency in a Place of Payment for such
series) on any Regular Record Date and before the opening of business (at such office or agency) on
the next succeeding Interest Payment Date, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date and interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such Bearer Security, but
will be payable only to the Holder of such coupon when due in accordance with the provisions of
this Indenture.

     Except as otherwise specified with respect to a series of Securities in accordance with the
provisions of Section 301, any interest on any Registered Security of any series that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may
be paid by the Company at its election in each case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Registered Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Registered Security of such
series and the date of the proposed payment (which shall not be less than 20 days after such notice
is received by the Trustee), and at the same time the Company shall deposit with the Trustee an
amount of money in the currency or currencies, currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) 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 in this
clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date
of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Registered Securities of such series at his address as it appears in the
Security Register not less than 10 days prior to such Special Record Date. The Trustee may, in its
discretion, in the name and at the expense of the Company, cause a similar notice to be published
at least once in an Authorized Newspaper in each place of payment, but such publications shall not
be a condition precedent to the establishment of
such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the Persons in whose names the Registered Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following clause (2). In case a Bearer Security of any
series is surrendered at the office or agency in a Place of Payment
for such series in exchange for a Registered Security of such series after the close of business at such office or
agency on any Special Record Date and before the opening of business at such office or agency on
the related proposed date for payment of Defaulted Interest, such Bearer Security shall be
surrendered without the coupon relating to such proposed date of payment and Defaulted Interest
will not be payable on such proposed date of payment in respect of the Registered Security issued
in exchange for such Bearer Security, but will be payable only to the Holder of such coupon when
due in accordance with the provisions of this Indenture.

     (2) The Company may make payment of any Defaulted Interest on the Registered Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities exchange
on which such Securities

 

 

may be listed, and upon such notice as may be required by such exchange,
if, after notice given by the Company to the Trustee of the proposed payment pursuant to this
clause, such manner of payment shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

     SECTION 308. Persons Deemed Owners. Prior to due presentment of a Registered Security
for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Registered Security is registered as the owner of such
Security for the purpose of receiving payment of principal of (and premium, if any), and (subject
to Sections 305 and 307) interest on, such Registered Security and for all other purposes
whatsoever, whether or not such Registered Security be overdue, and none of the Company, the
Trustee or any agent of the Company or the Trustee shall be affected by notice to the contrary.

     Title to any Bearer Security and any coupons appertaining thereto shall pass by delivery. The
Company, the Trustee and any agent of the Company or the Trustee may treat the Holder of any Bearer
Security and the Holder of any coupon as the absolute owner of such Security or coupon for the
purpose of receiving payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or coupon be overdue, and none of the Company, the Trustee or any
agent of the Company or the Trustee shall be affected by notice to the contrary.

     None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Security in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

     Notwithstanding the foregoing, with respect to any global Security, nothing herein shall
prevent the Company, the Trustee, or any agent of the Company, or the Trustee, from giving effect
to any written certification or other authorization furnished by any depositary, as a Holder, with
respect to such global Security or impair, as between such depositary and owners of beneficial
interests in such global Security, the operation of customary practices governing the exercise of
the rights of such depositary (or its nominee) as Holder of such global Security.

     SECTION 309. Cancellation. All Securities and coupons surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or exchange or for
credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Securities and coupons and Securities and coupons
surrendered directly to the Trustee for any such purpose shall be promptly canceled by it. The
Company may at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever,
and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee. If the Company shall so acquire any of the Securities, however,
such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented
by such Securities unless and until the same are surrendered to the Trustee for cancellation. No
Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section, except as expressly permitted by this Indenture. Canceled Securities and coupons
held by the Trustee shall be returned to the Company.

     SECTION 310. Computation of Interest. Except as otherwise specified as contemplated by
Section 301 with respect to Securities of any series, interest on the Securities of each series
shall be computed on the basis of a 360-day year consisting of twelve 30-day months.

     SECTION 311. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee of any
change in the “CUSIP” numbers.

 

 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

     SECTION 401. Satisfaction and Discharge of Indenture. This Indenture shall upon
Company Request cease to be of further effect with respect to any series of Securities specified in
such Company Request (except as to any surviving rights of registration of transfer or exchange of
Securities of such series herein expressly provided for and any right to receive Additional
Amounts, as provided in Section 1007), and the Trustee, upon receipt of a Company Order, and at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture as to such series when,

     (1) either

          (A) all Securities of such series theretofore authenticated and delivered and all coupons, if
any, appertaining thereto (other than (i) coupons appertaining to Bearer Securities surrendered for
exchange for Registered Securities and maturing after such exchange, whose surrender is not
required or has been waived as provided in Section 305, (ii) Securities and coupons of such series
which have been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306, (iii) coupons appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender has been waived as provided in Section 1106, and (iv)
Securities and coupons of such series for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or

          (B) all Securities of such series and, in the case of (i) or (ii) below, any coupons
appertaining thereto not theretofore delivered to the Trustee for cancellation

               (i) have become due and payable, or

               (ii) will become due and payable at their Stated Maturity within one year, or

               (iii) if redeemable at the option of the Company, are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense of the Company,

and the Company, in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount in the currency or
currencies, currency unit or units or composite currency or currencies in which the Securities of
such series are payable, sufficient to pay and discharge the entire indebtedness on such Securities
and such coupons not theretofore delivered to the Trustee for cancellation, for principal (and
premium, if any) and interest to the date of such deposit (in the case of Securities which have
become due and payable) or to the Stated Maturity or Redemption Date, as the case may be;

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

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture as to such series have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee and any predecessor Trustee under Section 606, the obligations of the
Company to any Authenticating Agent under Section 611 and, if money shall have been deposited with
and held by the Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of
the Trustee under Section 402 and the last paragraph of Section 1003 shall survive such
satisfaction and discharge.

     SECTION 402. Application of Trust Funds. Subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be
held in trust and applied by it, in accordance with the provisions of the Securities, the coupons
and this Indenture, to the payment, either directly or through any Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any), and any interest for whose payment such money has

 

 

deposited with or received by the Trustee, but such money need not be segregated from other funds
except to the extent required by law.

ARTICLE FIVE

REMEDIES

     SECTION 501. Events of Default. Except as otherwise provided with respect to any
series of Securities, “Event of Default,” wherever used herein with respect to any particular
series of Securities, means any one of the following events (whatever the reason for such Event of
Default and whether or not it shall be voluntary or involuntary or be 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) unless such event is specifically deleted or modified in or
pursuant to the supplemental indenture, Board Resolution or Officers’ Certificate establishing the
terms of such series pursuant to this Indenture:

     (1) default in the payment of any interest on any Security of that series or of any coupon
appertaining thereto, when such interest or coupon becomes due and payable, and continuance of such
default for a period of 30 days; or

     (2) default in the payment of the principal of (or premium, if any, on) any Security of that
series when it becomes due and payable at its Maturity; or

     (3) default in the performance, or breach, of any covenant or warranty of the Company in this
Indenture with respect to any Security of that series (other than a covenant or warranty a default
in whose performance or whose breach is elsewhere in this Section specifically dealt with), and
continuance of such default or breach for a period of 60 days after there has been given, by
registered or certified mail to the Company, by the Trustee or to the Company, and the Trustee by
the Holders of at least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder; or

     (4) a default under any evidence of Recourse Indebtedness of the Company or under any
mortgage, indenture or other instrument of the Company (including a default with respect to
Securities of any series other than that series) under which there may be issued or by which there
may be secured any Recourse Indebtedness of the Company (or by any Subsidiary of the Company, the
repayment of which the Company has guaranteed or for which the Company is directly responsible or
liable as obligor or guarantor), whether such Recourse Indebtedness now exists or shall hereafter
be created, which default shall constitute a failure to pay an aggregate principal amount exceeding
$5,000,000 of Recourse Indebtedness of any or all such Persons when due and payable after the
expiration of any applicable grace period with respect thereto and
shall have resulted in such Recourse Indebtedness in an aggregate principal amount exceeding $5,000,000 becoming or being
declared due and payable before the date on which it would otherwise have become due and payable,
without such Recourse Indebtedness having been discharged; or

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

          (A) commences a voluntary case,

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

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

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

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

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

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

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

 

 

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

     (7) the guarantee of any Security by a guarantor thereof ceases to be, or is asserted in
writing by the Company or any Guarantor not to be, in full force and effect or enforceable in
accordance with its terms, or

     (8) any other Event of Default provided with respect to Securities of that series.

     As used in this Section 501, the term “Bankruptcy Law” means Title 11, U.S. Code, or any
similar Federal or State law for the relief of debtors and the term “Custodian” means any receiver,
trustee, assignee, liquidator or other similar official under any Bankruptcy Law.

     SECTION 502. Acceleration of Maturity; Rescission and Annulment. Except as otherwise
provided with respect to any series of Securities, if an Event of Default with respect to
Securities of any series at the time Outstanding occurs and is continuing, then and in every such
case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal (or, if any Securities are Original Issue
Discount Securities or Indexed Securities, such portion of the principal as may be specified in the
terms thereof) and premium (if any) of all the Securities of that series to be due and payable
immediately, by a notice in writing to the Company, (and to the Trustee if given by the Holders),
and upon any such declaration such principal and premium (if any) or specified portion thereof
shall become immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

     (1) the Company has paid or deposited with the Trustee a sum sufficient to pay in the
currency, currency unit or composite currency in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series):

          (A) all overdue installments of interest on all Outstanding
 Securities of that series and any related coupons,

          (B) the principal of (and premium, if any, on) any Outstanding Securities of that series which
have become due otherwise than by such declaration of acceleration and interest thereon at the rate
or rates borne by or provided for in such Securities,

          (C) to the extent that payment of such interest is lawful, interest upon overdue installments
of interest at the rate or rates borne by or provided for in such Securities, and

          (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and

     (2) all Events of Default with respect to Securities of that series, other than the nonpayment
of the principal of (or premium, if any) or interest on Securities of that series which have become
due solely by such declaration of acceleration, have been cured or waived as provided in Section
513.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

     SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee. The
Company covenants that if:

     (1) default is made in the payment of any installment of interest on any Security of any
series and any related coupon when such interest becomes due and payable and such default continues
for a period of 30 days, or

     (2) default is made in the payment of the principal of (or premium, if any, on) any Security
of any series at its Maturity, then the Company will, upon demand of the Trustee, pay to the
Trustee, for the benefit of the Holders of such Securities of such series and coupons, the whole
amount then due and payable on such Securities and coupons for principal (and premium, if any) and
interest, with interest upon any overdue principal (and premium, if any) and,

 

 

to the extent that
payment of such interest shall be legally enforceable, upon any overdue installments of interest,
at the rate or rates borne by or provided for in such Securities, and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Company, or any other obligor upon such Securities of such series and
collect the moneys adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities of such series, wherever
situated.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series and any related coupons by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

     SECTION 504. Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Securities of any series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of overdue principal, premium, if any, or
interest) shall be entitled and empowered, by intervention in such proceeding or otherwise:

     (i) to file and prove a claim for the whole amount, or such lesser amount as may be provided
for in the Securities of such series, of principal (and premium, if any) and interest owing and
unpaid in respect of the Securities and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of
the Holders allowed in such judicial proceeding, and

     (ii) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same;

     and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of Securities of such
series and coupons to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and
any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any
predecessor Trustee under Section 606.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or coupons or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a
Security or coupon in any such proceeding.

     SECTION 505. Trustee May Enforce Claims Without Possession of Securities or Coupons.
All rights of action and claims under this Indenture or any of the Securities or coupons may be
prosecuted and enforced by the Trustee without the possession of any of the Securities or coupons
or the production thereof in any proceeding relating thereto, and any such proceeding instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities and coupons in respect of which such judgment has been recovered.

     SECTION 506. Application of Money Collected. Any money collected by the Trustee
pursuant to this Article shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal (or premium, if any)
or interest, upon presentation of the Securities or coupons,

 

 

or both, as the case may be, and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under Section
606;

     SECOND: To the payment of the amounts then due and unpaid upon the Securities and coupons for
principal (and premium, if any) and interest payable, in respect of which or for the benefit of
which such money has been
collected, ratably, without preference or priority of any kind, according to the aggregate
amounts due and payable on such Securities and coupons for principal (and premium, if any) and
interest, respectively; and

     THIRD: To the payment of the remainder, if any, to the Company or the Person or Persons
entitled thereto.

     SECTION 507. Limitation on Suits. No Holder of any Security of any series or any
related coupon shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

     (1) such Holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities of that series;

     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities of that
series shall have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee indemnity satisfactory to the Trustee
against the costs, expenses and liabilities to be incurred in compliance with such request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and

     (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities
of that series; it being understood and intended that no one or more of such Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable benefit of all such
Holders.

     SECTION 508. Unconditional Right of Holders to Receive Principal (Premium, if any) and
Interest. Notwithstanding any other provision in this Indenture, the Holder of any Security or
coupon shall have the right which is absolute and unconditional to receive payment of the principal
of (and premium, if any) and (subject to Sections 305 and 307) interest on such Security or payment
of such coupon on the respective due dates expressed in such Security or coupon (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

     SECTION 509. Restoration of Rights and Remedies. If the Trustee or any Holder of a
Security or coupon has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such case, the Company,
the Trustee and the Holders of Securities and coupons shall, subject to any determination in such
proceeding, be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

     SECTION 510. Rights and Remedies Cumulative. Except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities or coupons in the
last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders of Securities or coupons is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

 

     SECTION 511. Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Security or coupon to exercise any right or remedy accruing upon any Event of
Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders of Securities or coupons, as the case may be.

     SECTION 512. Control by Holders of Securities. The Holders of not less than a majority
in principal amount of the Outstanding Securities of any series shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the Securities of such
series, provided that

     (1) such direction shall not be in conflict with any rule of law or with this Indenture,

     (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and

     (3) the Trustee need not take any action which might involve it in personal liability or be
unduly prejudicial to the Holders of Securities of such series not joining therein.

     SECTION 513. Waiver of Past Defaults. The Holders of not less than a majority in
principal amount of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series and any related coupons waive any past default hereunder with respect
to such series and its consequences, except a default

     (1) in the payment of the principal of (or premium, if any) or interest on any Security of
such series or any related coupons, or

     (2) in respect of a covenant or provision hereof which under Article Nine cannot be modified
or amended without the consent of the Holder of each Outstanding Security of such series affected.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or Event of Default or impair any right
consequent thereon.

     SECTION 514. Waiver of Usury, Stay or Extension Laws. The Company covenants (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 or take the benefit or advantage of, any usury, stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the covenants or the
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 covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

     SECTION 515. Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, 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, the
filing by any party litigant in such suit of any undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees
and expenses, against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions of this Section
shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding
Securities, or to any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or after the Redemption
Date).

ARTICLE SIX

THE TRUSTEE

 

 

     SECTION 601. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner
and to the extent provided in TIA Section 313(c), notice of such default hereunder actually known
to a Responsible Officer of the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the
principal of (or premium, if any) or interest on any Security of such series, or in the payment of
any sinking fund installment with respect to the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the Holders of the
Securities and coupons of such series; and provided further that in the case of any
default or breach of the character specified in Section 501(3) with respect to the Securities and
coupons of such series, no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term “default” means any event which is,
or after notice or lapse of time or both would become, an Event of Default with respect to the
Securities of such series.

     SECTION 602. Certain Rights of Trustee. Subject to the provisions of TIA Section
315(a) through 315(d):

     (1) the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, coupon or other paper or document (whether in its
original or facsimile form) believed by it to be genuine and to have been signed or presented by
the proper party or parties;

     (2) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order (other than delivery of any Security, together with any
coupons appertaining thereto, to the Trustee for authentication and delivery pursuant to Section
303 which shall be sufficiently evidenced as provided therein) and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution;

     (3) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officers’ Certificate;

     (4) the Trustee may consult with counsel of its selection and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

     (5) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders of Securities of any series
or any related coupons pursuant to this Indenture, unless such Holders shall have offered to the
Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or direction;

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

     (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder; and

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

     The Trustee shall not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers.

 

 

     Except during the continuance of an Event of Default, the Trustee undertakes to perform only
such duties as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee.

     SECTION 603. Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the Trustee’s certificate of authentication, and in
any coupons shall be taken as the statements of the Company and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities or
coupons, except that the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof.

     SECTION 604. May Hold Securities. The Trustee, any Paying Agent, Security Registrar,
Authenticating Agent or any other agent of the Company, in its individual or any other capacity,
may become the owner or pledgee of Securities and coupons and, subject to TIA Sections 310(b) and
311, may otherwise deal with the Company with the same rights it would have if it were not the
Trustee, Paying Agent, Security Registrar, Authenticating Agent or such other agent.

     SECTION 605. Money Held in Trust. Money held by the Trustee in trust hereunder need
not be segregated from other funds except to the extent required by law. The Trustee shall be under
no liability for interest on any money received by it hereunder except as otherwise agreed with the
Company in writing.

     SECTION 606. Compensation and Reimbursement. The Company agrees:

     (1) to pay to the Trustee from time to time reasonable compensation for all services rendered
by it hereunder as agreed with the Company in writing (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse each of the Trustee and any
predecessor Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this Indenture (including the
reasonable compensation and the expenses and disbursements of its agents and counsel), except any
such expense, disbursement or advance as may be attributable to its negligence or bad faith; and

     (3) to indemnify each of the Trustee and any predecessor Trustee for, and to hold it harmless
against, any loss, liability, claim, damage or expense (including taxes other than taxes based on
the income of the Trustee) incurred without negligence or bad faith on its own part, arising out of
or in connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.

     When the Trustee incurs expenses
or renders services in connection with an Event of Default specified in Section 501(5) or Section
501(6), the expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of administration under any
applicable Federal or state bankruptcy, insolvency or other similar law.

     As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of (or premium, if
any) or interest on particular Securities or any coupons.

     The provisions of this Section shall survive the termination of this Indenture.

     SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests. There
shall at all times be a Trustee hereunder which shall be eligible to act as Trustee under TIA
Section 310(a)(1) and shall have a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law or the requirements
of Federal, State, Territorial or District of Columbia supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of such corporation shall be deemed
to be its combined capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section, it shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

 

 

     SECTION 608. Resignation and Removal; Appointment of Successor. (a) No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee in accordance with
the applicable requirements of Section 609.

     (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition at the expense of the Company any court of
competent jurisdiction for the appointment of a successor Trustee.

     (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Trustee and the Company If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the Trustee who is being removed may petition at the expense of the Company any court
of competent jurisdiction for the appointment of a successor Trustee.

     (d) If at any time:

          (1) the Trustee shall fail to comply with the provisions of TIA Section 310(b) after written
request therefor by the Company or by any Holder of a Security who has been a bona fide Holder of a
Security for at least six months, or

          (2) the Trustee shall cease to be eligible under Section 607 and shall fail to resign after
written request therefor by the Company or by any Holder of a Security who has been a bona fide
Holder of a Security for at least six months, or

          (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent
or a receiver of the Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, (i) the Company by or pursuant to a Board
Resolution may remove the Trustee and appoint a successor Trustee with respect to all Securities,
or (ii) subject to TIA Section 315(e), any Holder of a Security who has been a bona fide Holder of
a Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause with respect to the Securities of one or more
series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or
all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series). If, within one year after such resignation, removal or
incapacity, or the occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance or such appointment, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or the Holders of Securities and accepted
appointment in the manner hereinafter provided, any Holder of a Security who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to Securities of such series.

     (f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series in the manner provided for notices to the Holders of Securities in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

     SECTION 609. Acceptance of Appointment by Successor. (a) In case of the appointment
hereunder of a successor Trustee with respect to all Securities, every such successor Trustee shall
execute, acknowledge and deliver

 

 

to the Company and the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee hereunder, subject
nevertheless to its claim, if any, provided for in Section 606.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto, pursuant to Article Nine hereof, wherein each successor Trustee shall accept
such appointment and which (1) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates; but, on request of the Company, or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

     (c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may
be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

     SECTION 610. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation
shall be otherwise qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto. In case any Securities or
coupons shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities of coupons so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities or coupons. In case any Securities
or coupons shall not have been authenticated by such predecessor Trustee, any such successor
Trustee may authenticate and deliver such Securities or coupons, in either its own name or that of
its predecessor Trustee, with the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee.

     SECTION 611. Appointment of Authenticating Agent. At any time when any of the
Securities remain Outstanding, the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange, registration of transfer or
partial redemption or repayment thereof, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated

 

 

by the Trustee hereunder. Any such appointment shall be evidenced by an instrument in writing
signed by a Responsible Officer of the Trustee, a copy of which instrument shall be promptly
furnished to the Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on

behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on
behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to
the Company and shall at all times be a bank or trust company or corporation organized and doing
business and in good standing under the laws of the United States of America or of any State or the
District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or examination by
Federal or State authorities. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report
of condition so published. In case at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or further act on the part of the Trustee or the
Authenticating Agent.

     An Authenticating Agent for any series of Securities may at any time resign by giving written
notice of resignation to the Trustee for such series and to the Company. The Trustee for any series
of Securities may at any time terminate the agency of an Authenticating Agent by giving written
notice of termination to such Authenticating Agent and the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, the Trustee for such series
may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall
give notice of such appointment to all Holders of Securities of the series with respect to which
such Authenticating Agent will serve in the manner set forth in Section 106. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent herein. No successor Authenticating Agent shall be appointed unless
eligible under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation including reimbursement of its reasonable expenses for its services under this
Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to or in lieu of the Trustee’s
certificate of authentication, an alternate certificate of authentication substantially in the
following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	Dated:	 
	THE BANK OF NEW YORK, as Trustee	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	as Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

     SECTION 612. Trustee’s Application for Instructions from the Company. Any application
by the Trustee for written instructions from the Company may, at the option of the Trustee, set
forth in writing any action proposed to

 

 

be taken or omitted by the Trustee under this Indenture and the date on and/or after which
such action shall be taken or such omission shall be effective. The Trustee shall not be liable for
any action taken by, or omission of, the Trustee in accordance with a proposal included in such
application on or after the date specified in such application (which date shall not be less than five Business Days after the date any officer
of the Company actually receives such application, unless any such officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     SECTION 701. Disclosure of Names and Addresses of Holders. Every Holder of Securities
or coupons, by receiving and holding the same, agrees with the Company and the Trustee that neither
the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any information as to the names
and addresses of the Holders of Securities in accordance with TIA Section 312, regardless of the
source from which such information was derived, and that the Trustee shall not be held accountable
by reason of mailing any material pursuant to a request made under TIA Section 312(b).

     SECTION 702. Reports by Trustee. Within 60 days after October 1 of each year
commencing with the first October 1 after the first issuance of Securities pursuant to this
Indenture, the Trustee shall transmit by mail to all Holders of Securities as provided in TIA
Section 313(c) a brief report dated as of such October 1 if required by TIA Section 313(a).

     SECTION 703. Reports by Company. The Company will:

     (1) deliver to the Trustee and each Holder, within 15 days after the same are filed with the
Commission, copies of all reports and information (or copies of such portions of any of the
foregoing as the Commission may by rules and regulations prescribe), if any, exclusive of exhibits,
which the Company and any guarantors are required to file with the Commission pursuant to Section
13 or 15(d) of the Exchange Act or pursuant to the immediately following sentence. So long as any
Securities remain outstanding, the Company and any Subsidiary guarantors shall file with the
Commission such reports as may be required pursuant to Section 13 of the Exchange Act in respect of
a security registered pursuant to Section 12 of the Exchange Act. If the Company or any Subsidiary
guarantors are not subject to the requirements of Section 13 or 15(d) of the Exchange Act (or
otherwise required to file reports pursuant to the immediately preceding sentence), the Company
shall deliver to the Trustee and to each Holder, within 15 days after the Company and any
Subsidiary guarantors would have been required to file such information with the Commission were
they required to do so, financial statements, including any notes thereto (and, in the case of a
fiscal year end, an auditors’ report by an independent certified public accounting firm of
established national reputation), and a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” substantially equivalent to that which they would have been
required to include in such quarterly or annual reports, information, documents or other reports if
they had been subject to the requirements of Section 13 or 15(d) of the Exchange Act.
Notwithstanding the foregoing, to the extent then permitted by federal securities laws or
regulations or “no-action” letters interpreting such laws or regulations, separate financial
statements and other information of any Subsidiary guarantors shall not be required. The Company
and any Subsidiary guarantors shall also comply with the other provisions of TIA Section 314(a);

     (2) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and reports
with respect to compliance by the Company with the conditions and covenants of this Indenture as
may be required from time to time by such rules and regulations;

     (3) transmit by mail to the Holders of Securities, within 30 days after the filing thereof
with the Trustee, in the manner and to the extent provided in TIA Section 313(c), such summaries of
any information, documents and reports required to be filed by the Company pursuant to paragraphs
(1) and (2) of this Section as may be required by rules and regulations prescribed from time to
time by the Commission; and

 

 

     (4) delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     SECTION 704. The Company to Furnish Trustee Names and Addresses of Holders. The
Company will furnish or cause to be furnished to the Trustee:

     (a) semi-annually, not later than 15 days after the Regular Record Date for interest for each
series of Securities, a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Registered Securities of such series as of such Regular Record Date, or
if there is no Regular Record Date for interest for such series of Securities, semi- annually, upon
such dates as are set forth in the Board Resolution or indenture supplemental hereto authorizing
such series, and

     (b) at such other times as the Trustee may request in Writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished, provided, however,
that, so long as the Trustee is the Security Registrar, no such list shall be required to be
furnished.

ARTICLE EIGHT

CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

     SECTION 801. Consolidations and Mergers of Company and Sales, Leases and Conveyances
Permitted Subject to Certain Conditions. Except as otherwise provided with respect to any
series of Securities, the Company may consolidate with, or sell, lease or convey all or
substantially all of its assets to, or merge with or into any other entity, provided that in any
such case, (i) the Company will be the continuing entity, or the successor entity will be an entity
organized and existing under the laws of the United States or a State thereof and such successor
entity expressly assumes the due and punctual performance and observance of all of the covenants
and conditions of this Indenture to be performed by the Company by supplemental indenture,
complying with Article Nine hereof, satisfactory to the Trustee, executed and delivered to the
Trustee by such entity and (ii) immediately after giving effect to such transaction and treating
any indebtedness which becomes an obligation of the Company or any Subsidiary as a result thereof
as having been incurred by the Company or such Subsidiary at the time of such transaction, no Event
of Default, and no event which, after notice or the lapse of time, or both, would become an Event
of Default, shall have occurred and be continuing.

     SECTION 802. Rights and Duties of Successor Entity. In case of any such consolidation,
merger, sale, lease or conveyance and upon any such assumption by the successor entity, such
successor entity shall succeed to and be substituted for the Company with the same effect as if it
had been named herein as the Company and the predecessor entity, except in the event of a lease,
shall be relieved of any further obligation under this Indenture and the Securities. Any such
successor entity of the Company thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor entity, instead of the Company, and subject to all the terms, conditions
and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the officers of the Company to
the Trustee for authentication, and any Securities which such successor entity thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All the Securities so issued
shall in all respects have the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture as though all of
such Securities had been issued at the date of the execution hereof.

     In case of any such consolidation, merger, sale, lease or conveyance, such changes in
phraseology and form (but not in substance) may be made in the Securities thereafter to be issued
as may be appropriate.

     SECTION 803. Officers’ Certificate and Opinion of Counsel. Any consolidation, merger,
sale, lease or conveyance permitted under Section 801 is also subject to the condition that the
Trustee receive an Officers’ Certificate and an Opinion of Counsel to the effect that any such
consolidation, merger, sale, lease or conveyance,

 

 

and the assumption by any successor entity, complies with the provisions of this Article and
that all conditions precedent herein provided for relating to such transaction have been complied
with.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

     SECTION 901. Supplemental Indentures Without Consent of Holders. Without the consent
of any Holders of Securities or coupons, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:

     (1) to evidence the succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company herein and in the Securities contained; or

     (2) to add to the covenants of the Company for the benefit of the Holders of all or any series
of Securities (and if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the Company; or

     (3) to add any additional Events of Default for the benefit of the Holders of all or any
series of Securities (and if such Events of Default are to be for the benefit of less than all
series of Securities, stating that such Events of Default are expressly being included solely for
the benefit of such series); provided, however, that in respect of any such
additional Events of Default such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in the case of other
defaults) or may provide for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default or may limit the right of the Holders of a majority in
aggregate principal amount of that or those series of Securities to which such additional Events of
Default apply to waive such default; or

     (4) to add to or change any of the provisions of this Indenture to provide that Bearer
Securities may be registrable as to principal, to change or eliminate any restrictions on the
payment of principal of or any premium or interest on Bearer Securities, to permit Bearer
Securities to be issued in exchange for Registered Securities, to permit Bearer Securities to be
issued in exchange for Bearer Securities of other authorized denominations or to permit or
facilitate the issuance of Securities in uncertificated form, provided that any such action shall
not adversely affect the interests of the Holders of Securities of any series or any related
coupons in any material respect; or

     (5) to change or eliminate any of the provisions of this Indenture, provided that any such
change or elimination shall become effective only when there is no Security Outstanding of any
series created prior to the execution of such supplemental indenture which is entitled to the
benefit of such provision; or

     (6) to secure the Securities; or

     (7) to establish the form or terms of Securities of any series and any related coupons as
permitted by Sections 201 and 301; or

     (8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee; or

     (9) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions with
respect to matters or questions arising under this Indenture which shall not be inconsistent with
the provisions of this Indenture; or

     (10) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant
to Sections 1301, 1302 and 1303; provided that any such action shall not adversely affect
the interests of the Holders of Securities of such series and any related coupons or any other
series of Securities in any material respect; or

 

 

     (11) to make any change that does not adversely affect the legal rights under this Indenture
of any Holder of Debt Securities of any series; or

     (12) to add a guarantor of the Securities.

     SECTION 902. Supplemental Indentures with Consent of Holders. With the consent of the
Holders of not less than a majority in principal amount of all Outstanding Securities affected by
such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner
the rights of the Holders of Securities and any related coupons under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby:

     (1) change the Stated Maturity of the principal of (or premium, if any, on) or any installment
of principal of or interest on, any Security; or reduce the principal amount thereof or the rate or
amount of interest thereon, or any premium payable upon the redemption thereof, or change any
obligation of the Company to pay Additional Amounts pursuant to Section 1007 (except as
contemplated by Section 801(1) and permitted by Section 901(1)), or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a declaration
of acceleration of the Maturity thereof pursuant to Section 502 or the amount thereof provable in
bankruptcy pursuant to Section 504, or adversely affect any right of repayment at the option of the
Holder of any Security, or change any Place of Payment where, or the currency or currencies,
currency unit or units or composite currency or currencies in which, any Security or any premium or
the interest thereon is payable, or impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity thereof, (or, in the case of redemption or repayment
at the option of the Holder, on or after the Redemption Date or the Repayment Date, as the case may
be), or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or the consent of whose
Holders is required for any waiver with respect to such series (or compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences) provided for in
this Indenture, or

     (3) modify any of the provisions of this Section or Section 513, except to increase the
required percentage to effect such action or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, or

     (4) release any guarantors from their guarantees of the Securities, or, except as contemplated
in any supplemental indenture, make any change in a guarantee of a Security that would adversely
affect the interests of the Holders, or

     (5) modify the ranking or priority of the Securities.

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

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

     SECTION 903. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or the
modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

 

 

     SECTION 904. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder and of any coupon
appertaining thereto shall be bound thereby.

     SECTION 905. Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as
then in effect; and shall be deemed to include any provisions of the Trust Indenture Act necessary
to effect such conformity.

     SECTION 906. Reference in Securities to Supplemental Indentures. Securities of any
series authenticated and delivered after the execution of any supplemental indenture pursuant to
this Article may, and shall, if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.

     SECTION 907. Notice of Supplemental Indentures. Promptly after the execution by the
Company and the Trustee of any supplemental indenture pursuant to the provisions of Section 902,
the Company shall give notice thereof to the Holders of each Outstanding Security affected, in the
manner provided for in Section 106, setting forth in general terms the substance of such
supplemental indenture.

ARTICLE TEN

COVENANTS

     SECTION 1001. Payment of Principal (and Premium, if any) and Interest. The Company
covenants and agrees for the benefit of the Holders of each series of Securities that it will duly
and punctually pay the principal of (and premium, if any) and interest on the Securities of that
series in accordance with the terms of such series of Securities, any coupons appertaining thereto
and this Indenture. Unless otherwise specified as contemplated by Section 301 with respect to any
series of Securities, any interest due on and any Additional Amounts payable in respect of Bearer
Securities on or before Maturity, other than Additional Amounts, if any, payable as provided in
Section 1007 in respect of principal of (or premium, if any, on) such a Security, shall be payable
only upon presentation and surrender of the several coupons for such interest installments as are
evidenced thereby as they severally mature. Unless otherwise specified with respect to Securities
of any series pursuant to Section 301, at the option of the Company, all payments of principal may
be paid by check to the registered Holder of the Registered Security or other person entitled
thereto against surrender of such Security.

     SECTION 1002. Maintenance of Office or Agency. If Securities of a series are issuable
only as Registered Securities, the Company shall maintain in each Place of Payment for any series
of Securities an office or agency where Securities of that series may be presented or surrendered
for payment or conversion, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. If Securities of a series are issuable
as Bearer Securities, the Company will maintain: (A) in the Borough of Manhattan, The City of New
York, an office or agency where any Registered Securities of that series may be presented or
surrendered for payment or conversion, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be surrendered for
exchange, where notices and demands to or upon the Company in respect of the Securities of that
series and this Indenture may be served and where Bearer Securities of that series and related
coupons may be presented or surrendered for payment or conversion in the circumstances described in
the following paragraph (and not otherwise); (B) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series which is located outside the United States, an
office or agency where Securities of that series and related coupons may be presented and surrendered for payment (including payment of any
Additional Amounts payable on Securities of that series pursuant to Section 1007) or conversion;
provided, however, that if the Securities of that series are listed on the
Luxembourg Stock Exchange or any other stock exchange located outside the United States and such
stock exchange shall so require, the Company will maintain a Paying Agent for the Securities of
that series in Luxembourg or any other required city located outside the United States, as the case
may be, so long as the Securities of that series are listed on such exchange; and (C) subject to
any laws or regulations applicable thereto, in

 

 

a Place of Payment for that series located outside the United States an office or agency where any
Registered Securities of that series may be surrendered for registration of transfer, where
Securities of that series may be surrendered for exchange and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may be served. The
Company will give prompt written notice to the Trustee of the location, and any change in the
location, of each such office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee, except that Bearer Securities of that series and the related coupons may be
presented and surrendered for payment (including payment of any Additional Amounts payable on
Bearer Securities of that series pursuant to Section 1007) or conversion at the offices specified
in the Security, in London, England, and the Company hereby appoint the same as its agent to
receive such respective presentations, surrenders, notices and demands, and the Company hereby
appoint the Trustee its agent to receive all such presentations, surrenders, notices and demands.

     Unless otherwise specified with respect to any Securities pursuant to Section 301, no payment
of principal, premium or interest on Bearer Securities shall be made at any office or agency of the
Company in the United States or by check mailed to any address in the United States or by transfer
to an account maintained with a bank located in the United States; provided,
however, that, if the Securities of a series are payable in Dollars, payment of principal
of and any premium and interest on any Bearer Security (including any Additional Amounts payable on
Securities of such series pursuant to Section 1007) shall be made at the office of the Company’s
Paying Agent in the Borough of Manhattan, The City of New York, if (but only if) payment in Dollars
of the full amount of such principal, premium or interest, as the case may be, at all offices or
agencies outside the United States maintained for the purpose by the Company in accordance with
this Indenture, is illegal or effectively precluded by exchange controls or other similar
restrictions.

     The Company may from time to time designate one or more other offices or agencies where the
Securities of one or more series may be presented or surrendered for any or all of such purposes,
and may from time to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in accordance with the requirements set forth above for Securities of
any series for such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such other office or
agency. Unless otherwise specified with respect to any Securities pursuant to Section 301 with
respect to a series of Securities, the Company hereby designates as a Place of Payment for each
series of Securities the office or agency of the Company in the Borough of Manhattan, The City of
New York, and initially appoints the Trustee at its Corporate Trust Office as Paying Agent in such
city and as its agent to receive all such presentations, surrenders, notices and demands.

     Unless otherwise specified with respect to any Securities pursuant to Section 301, if and so
long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent.

     SECTION 1003. Money for Securities Payments to Be Held in Trust. If the Company shall
at any time act as its own Paying Agent with respect to any series of any Securities and any
related coupons, it will, on or before each due date of the principal of (and premium, if any), or
interest on, any of the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum in the currency or currencies, currency unit or units or
composite currency or currencies in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series) sufficient to pay
the principal (and premium, if any) or interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee of
its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities and any
related coupons, it will, on or before each due date of the principal of (and premium, if any) or
interest on, any Securities of that series, deposit with a Paying Agent a sum (in the currency or
currencies, currency unit or units or composite currency or currencies described in the preceding
paragraph) sufficient to pay the principal (and premium, if any) or interest, so becoming due, such
sum to be held in trust for the benefit of the Persons entitled to such principal (and premium, if
any) or interest and (unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

 

 

     The Company will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will:

     (1) hold all sums held by it for the payment of principal of (and premium, if any) or interest
on Securities in trust for the benefit of the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided;

     (2) give the Trustee notice of any default by the Company (or any other obligor upon the
Securities) in the making of any such payment of principal (and premium, if any) or interest; and

     (3) at any time during the continuance of any such default upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such sums.

     Except as otherwise provided in the Securities of any series, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal
of (and premium, if any) or interest on any Security of any series and remaining unclaimed for two
years after such principal (and premium, if any) and interest has become due and payable shall be
paid to the Company upon Company Request or (if then held by the Company) shall be discharged from
such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor,
look only to the Company for payment of such principal of (and premium, if any) or interest on any
Security, without interest thereon, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to be published once,
in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

     SECTION 1004. Existence. Subject to Article Eight, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect the existence, rights and
franchises of itself and any guarantor of the Securities; provided, however, that
the Company shall not be required to preserve any right or franchise if the Board of Directors
determines that the preservation thereof is no longer desirable in the conduct of the business of
the Company and such guarantors taken as a whole and that the loss thereof is not disadvantageous
in any material respect to the Holders; and provided further that any guarantor may
consolidate with, merge into, or sell, convey, transfer, lease or otherwise dispose of all or part
of its property and assets to the Company or any other guarantor and provided further that
nothing contained herein shall prohibit the substantially concurrent merger involving the Company,
NVR Homes, Inc. and NVR Financial Services, Inc.

     SECTION 1005. Maintenance of Properties. The Company will cause all of the properties
of itself and of each Subsidiary used or useful in the conduct of its business or the business of
any Subsidiary to be maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of the Company may be
necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, the Company and its
Subsidiaries shall not be prevented from discontinuing the operation and maintenance of any of such
properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of
its business and not disadvantageous in any material respect to the Holders.

     SECTION 1006. Insurance. The Company will, and will cause each of its Subsidiaries to,
keep all of its insurable properties insured against loss or damage at least equal to their then
full insurable value.

 

 

     SECTION 1007. Payment of Taxes and Other Claims. The Company will pay or discharge or
cause to be paid or discharged, before the same shall become delinquent, (1) all material taxes,
assessments and governmental charges levied or imposed upon it or any Subsidiary or upon the
income, profits or property of the Company or any Subsidiary, and (2) all material lawful claims
for labor, materials and supplies which, if unpaid, might by law become a lien upon the property of
the Company or any Subsidiary; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith by appropriate
proceedings.

     SECTION 1008. Statement as to Compliance. The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year, a brief certificate from its principal executive
officer, principal financial officer or principal accounting officer as to his or her knowledge of
the Company’s compliance with all conditions and covenants under this Indenture and, in the event
of any noncompliance, specifying such noncompliance and the nature and status thereof. For purposes
of this Section 1008, such compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

     SECTION 1009. Additional Amounts. If any Securities of a series provide for the
payment of Additional Amounts, the Company will pay to the Holder of any Security of such series or
any coupon appertaining thereto Additional Amounts as may be specified as contemplated by Section
301. Whenever in this Indenture there is mentioned, in any context except in the case of Section
502(1), the payment of the principal of or any premium or interest on, or in respect of, any
Security of any series or payment of any related coupon or the net proceeds received on the sale or
exchange of any Security of any series, such mention shall be deemed to include mention of the
payment of Additional Amounts provided by the terms of such series established pursuant to Section
301 to the extent that, in such context, Additional Amounts are, were or would be payable in
respect thereof pursuant to such terms and express mention of the payment of Additional Amounts (if
applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in
those provisions hereof where such express mention is not made.

     Except as otherwise specified as contemplated by Section 301, if the Securities of a series
provide for the payment of Additional Amounts, at least 10 days prior to the first Interest Payment
Date with respect to that series of Securities (or if the Securities of that series will not bear
interest prior to Maturity, the first day on which a payment of principal and any premium is made),
and at least 10 days prior to each date of payment of principal and any premium or interest if
there has been any change with respect to the matters set forth in the below-mentioned Officers’
Certificate, the Company will furnish the Trustee and the Company’s principal Paying Agent or
Paying Agents, if other than the Trustee, with an Officers’ Certificate instructing the Trustee and
such Paying Agent or Paying Agents whether such payment of principal of and any premium or interest
on the Securities of that series shall be made to Holders of Securities of that series or any
related coupons who are not United States persons without withholding for or on account of any tax,
assessment or other governmental charge described in the Securities of the series. If any such
withholding shall be required, then such Officers’ Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Securities of that series or
related coupons and the Company will pay to the Trustee or such Paying Agent the Additional Amounts
required by the terms of such Securities. If the Trustee or any Paying Agent, as the case may be,
shall not so receive the above-mentioned certificate, then the Trustee or such Paying Agent shall
be entitled (i) to assume that no such withholding or deduction is required with respect to any
payment of principal or interest with respect to any Securities of a series or related coupons
until it shall have received a certificate advising otherwise and (ii) to make all payments of
principal and interest with respect to the Securities of a series or related coupons without
withholding or deductions until otherwise advised. The Company covenants to indemnify the Trustee
and any Paying Agent for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of or in connection
with actions taken or omitted by any of them or in reliance on any Officers’ Certificate furnished
pursuant to this Section or in reliance on the Company’s not furnishing such an Officers’
Certificate.

     SECTION 1010. Waiver of Certain Covenants. The Company may omit in any particular
instance to comply with any term, provision or condition set forth in Sections 1004 and 1005,
inclusive, if before or after the time for such compliance the Holders of at least a majority in
principal amount of all outstanding Securities of such series, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such covenant or condition, but
no such waiver shall extend to or affect such covenant or condition except to the extent so

 

 

expressly waived, and, until such waiver shall become effective, the obligations of the
Company and the duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

     SECTION 1011. Statement by Officers as to Default. The Company shall deliver to the
Trustee, as soon as possible and in any event within ten days after an officer of Company becomes
aware of the occurrence of any Event of Default or an event which, with notice or the lapse of time
or both, would constitute an Event of Default, an Officers’ Certificate setting forth the details
of such Event of Default or Default and the action which the Company proposes to take with respect
thereto.

     SECTION 1012. Calculation of Original Issue Discount. The Company shall file with the
Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of
original issue discount (including daily rates and accrual periods) accrued on Outstanding
Securities as of the end of such year and (ii) such other specific information relating to such
original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended
from time to time.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

     SECTION 1101. Applicability of Article. Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 or in any indenture supplemental hereto for
Securities of any series) in accordance with this Article.

     SECTION 1102. Election to Redeem; Notice to Trustee. The election of the Company to
redeem any Securities shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all of the Securities of any series, the
Company shall, at least 45 days prior to the giving of the notice of redemption in Section 1104
(unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be redeemed. In the
case of any redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish
the Trustee with an Officers’ Certificate evidencing compliance with such restriction.

     SECTION 1103. Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities of any series issued on the same day with the same terms are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series issued on such date
with the same terms not previously called for redemption, by lot or by such other method as the
Trustee shall deem fair and appropriate and which may provide for the selection for redemption of
portions (equal to the minimum authorized denomination for Securities of that series or any
integral multiple thereof) of the principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series.

     The Trustee shall promptly notify the Company and the Security Registrar (if other than
itself) in writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Security redeemed or to
be redeemed only in part, to the portion of the principal amount of such Security which has been or
is to be redeemed.

     SECTION 1104. Notice of Redemption. Notice of redemption shall be given in the manner
provided in Section 106, not less than 30 days nor more than 60 days prior to the Redemption Date,
unless a shorter period is specified by the terms of such series established pursuant to Section
301, to each Holder of Securities to be redeemed, but failure to give such notice in the manner
herein provided to the Holder of any Security designated for redemption as a whole or in part, or
any defect in the notice to any such Holder, shall not affect the validity of the proceedings for
the redemption of any other such Security or portion thereof.

     Any notice that is mailed to the Holders of Registered Securities in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not the Holder receives
the notice.

 

 

     All notices of redemption shall include a description of the Securities and shall state:

     (1) the Redemption Date,

     (2) the Redemption Price, accrued interest to the Redemption Date payable as provided in
Section 1106, if any, and Additional Amounts, if any,

     (3) if less than all Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amount) of the particular
Security or Securities to be redeemed,

     (4) in case any Security is to be redeemed in part only, the notice which relates to such
Security shall state that on and after the Redemption Date, upon surrender of such Security, the
holder will receive, without a charge, a new Security or Securities of authorized denominations for
the principal amount thereof remaining unredeemed,

     (5) that on the Redemption Date the Redemption Price and accrued interest to the Redemption
Date payable as provided in Section 1106, if any, will become due and payable upon each such
Security, or the portion thereof, to be redeemed and, if applicable, that interest thereon shall
cease to accrue on and after said date,

     (6) the Place or Places of Payment where such Securities, together in the case of Bearer
Securities with all coupons appertaining thereto, if any, maturing after the Redemption Date, are
to be surrendered for payment of the Redemption Price and accrued interest, if any, or for
conversion,

     (7) that, unless otherwise specified in such notice, Bearer Securities of any series, if any,
surrendered for redemption must be accompanied by all coupons maturing subsequent to the date fixed
for redemption or the amount of any such missing coupon or coupons will be deducted from the
Redemption Price, unless security or indemnity satisfactory to the Company and the Trustee for such
series and any Paying Agent is furnished,

     (8) if Bearer Securities of any series are to be redeemed and any Registered Securities of
such series are not to be redeemed, and if such Bearer Securities may be exchanged for Registered
Securities not subject to redemption on this Redemption Date pursuant to Section 305 or otherwise,
the last date, as determined by the Company, on which such exchanges may be made,

     (9) the CUSIP number of such Security, if any, and

     (10) if applicable, that a Holder of Securities who desires to convert Securities for
redemption must satisfy the requirements for conversion contained in such Securities, the then
existing conversion price or rate, and the date and time when the option to convert shall expire.

     Notice of redemption of Securities to be redeemed shall be given by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the Company.

     SECTION 1105. Deposit of Redemption Price. At least one Business Day prior to any
Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in the currency or currencies, currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) sufficient to pay on the Redemption Date
the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof which are to be redeemed on that date.

     SECTION 1106. Securities Payable on Redemption Date. Notice of redemption having been
given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified in the currency or currencies, currency unit or
units or composite currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series) (together
with accrued interest, if any, to the Redemption Date), and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued interest) such Securities
shall, if the same were interest-bearing, cease to bear interest and the coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent provided below, shall
be void. Upon surrender of any such Security for redemption in accordance with said notice,
together with all coupons, if any,

 

 

appertaining thereto maturing after the Redemption Date, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest, if any, to the Redemption Date;
provided, however, that installments of interest on Bearer Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable only at an office or agency located
outside the United States (except as otherwise provided in Section 1002) and, unless otherwise
specified as contemplated by Section 301, only upon presentation and surrender of coupons for such
interest; and provided further that, installments of interest on Registered Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of Section 307.

     If any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant
coupons maturing after the Redemption Date, such Security may be paid after deducting from the
Redemption Price an amount equal to the face amount of all such missing coupons, or the surrender
of such missing coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender to the Trustee or
any Paying Agent any such missing coupon in respect of which a deduction shall have been made from
the Redemption Price, such Holder shall be entitled to receive the amount so deducted;
provided, however, that interest represented by coupons shall be payable only at an
office or agency located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon presentation and
surrender of those coupons.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption as a result of the failure by the Company to fund such redemption, the principal (and
premium, if any) shall, until paid, bear interest from the Redemption Date at the rate borne by the
Security or at such other rate as may be specified with respect to any series of Securities.

     SECTION 1107. Securities Redeemed in Part. Any Registered Security which is to be
redeemed only in part (pursuant to the provisions of this Article) shall be surrendered at a Place
of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or his attorney duly authorized in writing) and the Company shall execute
and the Trustee shall authenticate and deliver to the Holder of such Security without service
charge a new Security or Securities of the same series, of any authorized denomination as requested
by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of
the principal of the Security so surrendered.

ARTICLE TWELVE

REPAYMENT AT THE OPTION OF HOLDERS

     SECTION 1201. Applicability of Article. Repayment of Securities of any series before
their Stated Maturity at the option of Holders thereof shall be made in accordance with the terms
of such Securities, if any, and (except as otherwise specified by the terms of such series
established pursuant to Section 301) in accordance with this Article.

     SECTION 1202. Repayment of Securities. Securities of any series subject to repayment
in whole or in part at the option of the Holders thereof will, unless otherwise provided in the
terms of such Securities, be repaid at a price equal to the principal amount thereof, together with
interest, if any, thereon accrued to the Repayment Date specified in or pursuant to the terms of
such Securities. The Company covenants that at least one Business Day prior to the Repayment Date
it will deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money in the
currency or currencies, currency unit or units or composite currency or currencies in which the
Securities of such series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of such series) sufficient to pay the principal (or, if so provided by the terms of
the Securities of any series, a percentage of the principal) of, and (except if the Repayment Date
shall be an Interest Payment Date) accrued interest on, all the Securities or portions thereof, as
the case may be, to be repaid on such date.

     SECTION 1203. Exercise of Option. Securities of any series subject to repayment at the
option of the Holders thereof will contain an “Option to Elect Repayment” form on the reverse of
such Securities. In order for any Security to be repaid at the option of the Holder, the Trustee
must receive at the Place of Payment therefor specified

 

 

in the terms of such Security (or at such other place or places of which the Company shall
from time to time notify the Holders of such Securities) not earlier than 60 days nor later than 30
days prior to the Repayment Date (1) the Security so providing for such repayment together with the
“Option to Elect Repayment” form on the reverse thereof duly completed by the Holder (or by the
Holder’s attorney duly authorized in writing) or (2) a facsimile transmission or a letter from a
member of a national securities exchange, or the National Association of Securities Dealers, Inc.
(“NASD”), or a commercial bank or trust company in the United States setting forth the name of the
Holder of the Security, the principal amount of the Security, the principal amount of the Security
to be repaid, the CUSIP number, if any, or a description of the tenor and terms of the Security, a
statement that the option to elect repayment is being exercised thereby and a guarantee that the
Security to be repaid, together with the duly completed form entitled “Option to Elect Repayment”
on the reverse of the Security, will be received by the Trustee not later than the fifth Business
Day after the date of such facsimile transmission or letter; provided, however,
that such facsimile transmission or letter shall only be effective if such Security and form duly
completed are received by the Trustee by such fifth Business Day. If less than the entire principal
amount of such Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum denomination for
Securities of such series, and the denomination or denominations of the Security or Securities to
be issued to the Holder for the portion of the principal amount of such Security surrendered that
is not to be repaid, must be specified. The principal amount of any Security providing for
repayment at the option of the Holder thereof may not be repaid in part if, following such
repayment, the unpaid principal amount of such Security would be less than the minimum authorized
denomination of Securities of the series of which such Security to be repaid is a part. Except as
otherwise may be provided by the terms of any Security providing for repayment at the option of the
Holder thereof, exercise of the repayment option by the Holder shall be irrevocable unless waived
by the Company.

     SECTION 1204. When Securities Presented for Repayment Become Due and Payable. If
Securities of any series provide repayment at the option of the Holders thereof shall have been
surrendered as provided in this Article and as provided by or pursuant to the terms of such
Securities, such Securities or the portion thereof, as the case may be, to be repaid shall become
due and payable and shall be paid by the Company on the Repayment Date therein specified, and on
and after such Repayment Date (unless the Company shall default in the payment of such Securities
on such Repayment Date) such Securities shall, if the same were interest-bearing, cease to bear
interest and the coupons for such interest appertaining to any Bearer Securities so to be repaid,
except to the extent provided below, shall be void. Upon surrender of any such Security for
repayment in accordance with such provisions, together with coupons, if any, appertaining thereto
maturing after the Repayment Date, the principal amount of such Security so to be repaid paid by the Company, together with accrued interest, if
any, Repayment Date; provided, however, that coupons whose Stated Maturity is on or
prior to the Repayment Date shall be payable at an office or agency located outside the United
States (except as otherwise provided in Section 1002) and, unless otherwise specified pursuant to
Section 301, only upon presentation and surrender of such coupons; and provided further
that, in the case of Registered Securities, installments of interest, if any, whose Stated Maturity
is on or prior to the Repayment Date shall be payable (but with interest thereon, unless the
Company shall default in the payment thereof) to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business relevant Record Dates according
to their terms and the provisions of Section 307.

     If any Bearer Security surrendered for repayment shall not be accompanied by all appurtenant
coupons maturing after the Repayment Date, such Security may be paid after deducting from the
amount payable therefor as provided in Section 1202 an amount equal to the face amount of all such
missing coupons, or the surrender of such missing coupons may be waived by the Company and the
Trustee if there be furnished to them such security or indemnity as they may require to save it and
any Paying Agent harmless. If thereafter the Holder of such Security shall surrender to the Trustee
or any Paying Agent any such missing coupon in respect of which a deduction shall have been made as
provided in the preceding sentence, such Holder shall be entitled to receive the amount so
deducted; provided, however, that interest represented by coupons shall be payable
only at an office or agency located outside the United States (except as otherwise provided in
Section 1002) and, unless otherwise specified as contemplated by Section 301, only presentation and
surrender of those coupons.

     If the principal amount of any Security surrendered for repayment shall not be so repaid upon
surrender thereof, such principal amount (together with interest, if any, thereon accrued to such
Repayment Date) shall, until paid, bear interest from the Repayment Date at the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) set forth in such Security.

 

 

     SECTION 1205. Securities Repaid in Part. Upon surrender of any Registered Security
which is to be repaid in part only, the Company shall execute and the Trustee shall authenticate
and deliver to the Holder of such Security, without service charge and at the expense of the
Company, a new Registered Security or Securities of the same series, of any authorized denomination
specified by the Holder, in an aggregate principal amount equal to and in exchange for the portion
of the principal of such Security so surrendered which is not to be repaid.

ARTICLE THIRTEEN

DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 1301. Applicability of Article; Company’s Option to Effect Defeasance or Covenant
Defeasance. If, pursuant to Section 301, provision is made for either or both of (a) defeasance of
the Securities of or within a series under Section 1302 or (b) covenant defeasance of the
Securities of or within a series under Section 1303, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this Article (with such
modifications thereto as may be specified pursuant to Section 301 with respect to any Securities),
shall be applicable to such Securities and any coupons appertaining thereto, and the Company may at
its option by Board Resolution, at any time, with respect to such Securities and any coupons
appertaining thereto, elect to have Section 1302 (if applicable) or Section 1303 (if applicable) be
applied to such Outstanding Securities and any coupons appertaining thereto upon compliance with
the conditions set forth below in this Article.

     SECTION 1302. Defeasance and Discharge. Upon the Company’s exercise of the above
option applicable to this Section with respect to any Securities of or within a series, the Company
and any guarantors of the Securities shall be deemed to have been discharged from their obligations
with respect to such Outstanding Securities and any coupons appertaining thereto on the date the
conditions set forth in Section 1304 are satisfied (hereinafter, “defeasance”). For this purpose,
such defeasance means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by such Outstanding Securities and any coupons appertaining thereto, which
shall thereafter be deemed to be “Outstanding” only for the purposes of Section 1305 and the other
Sections of this Indenture referred to in clauses (A) and (B) below, and to have satisfied all of
its other obligations under such Securities and any coupons appertaining thereto and this Indenture
insofar as such Securities and any coupons appertaining thereto are concerned (and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise
terminated or discharged hereunder: (A) the rights of Holders of such Outstanding Securities and
any coupons appertaining thereto to receive, solely from the trust fund described in Section 1304
and as more fully set forth in such Section, payments in respect of the principal of (and premium,
if any) and interest, if any, on such Securities and any coupons appertaining thereto when such
payments are due, (B) the Company’s obligations with respect to such Securities under Sections 305,
306, 1002 and 1003 and with respect to the payment of Additional Amounts, if any, on such
Securities as contemplated by Section 1007, (C) the rights, powers, trusts, duties and immunities
of the Trustee hereunder and (D) this Article. Subject to compliance with this Article Thirteen,
the Company may exercise its option under this Section notwithstanding the prior exercise of its
option under Section 1303 with respect to such Securities and any coupons appertaining thereto.

     SECTION 1303. Covenant Defeasance. Upon the Company’s exercise of the above option
applicable to this Section with respect to any Securities of or within a series, the Company and
the guarantors of any Securities shall be released from their obligations under Sections 1004 and
1005, inclusive and, if specified pursuant to Section 301, their obligations under any other
covenant, with respect to such Outstanding Securities and coupons appertaining thereto on and after
the date the conditions set forth in Section 1304 are satisfied (hereinafter, “covenant
defeasance”), and such Securities and any coupons appertaining thereto shall thereafter be deemed
to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of
Holders (and the consequences of any thereof) in connection with Sections 1004 and 1005, inclusive,
or such other covenant, but shall continue to be deemed “Outstanding” for all other purposes
hereunder. For this purpose, such covenant defeasance means that, with respect to such Outstanding
Securities and any coupons appertaining thereto, the Company and the guarantors of any Securities
may omit to comply with and shall have no liability in respect of any term, condition or limitation
set forth in any such Section or such other covenant, whether directly or indirectly, by reason of
any reference elsewhere herein to any such Section or such other covenant or by reason of reference
in any Section or such other covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a default or an Event of Default under Section 501(3)
or 501(7) otherwise, as the case may be,

 

 

but, except as specified above, remainder of this Indenture and such Securities and any
coupons appertaining thereto shall be unaffected thereby.

     SECTION 1304. Conditions to Defeasance or Covenant Defeasance. The following shall be
the conditions to application of Section 1302 or Section 1303 to any Outstanding Securities of or
within a series and any coupons appertaining thereto:

     (a) The Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee satisfying the requirements of Section 607 who shall agree to comply with the
provisions of this Article Thirteen applicable to it) as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for; and dedicated solely to, the
benefit of the Holders of such Securities and any coupons appertaining thereto, (1) an amount in
such currency, currencies or currency unit in which such Securities and any coupons appertaining
thereto are then specified as payable at Stated Maturity, or (2) Government Obligations applicable
to such Securities and coupons appertaining thereto (determined on the basis of the currency,
currencies or currency unit in which such Securities and coupons appertaining thereto are then
specified as payable at Stated Maturity) which through the scheduled payment of principal and
interest in respect thereof in accordance with the terms will provide, not later than one day
before the due date of any payment of principal of (and premium, if any) and interest, if any, on
such Securities and any coupons appertaining thereto, money in an amount, or (3) a combination
thereof, any case, in an amount, sufficient, without consideration of any reinvestment of such
principal and interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and
discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, the principal of (and premium, if any) and interest, if any, on such Outstanding
Securities and any coupons, appertaining thereto on the Stated Maturity of such principal or
installment of principal or interest or analogous payments applicable to such Outstanding
Securities and any coupons appertaining thereto on the day on which such payments are due and
payable in accordance with the terms of this Indenture and of such Securities and any coupons
appertaining thereto.

     (b) Such defeasance or covenant defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture or any other material agreement or instrument to which
the Company is a party or by which it is bound.

     (c) No Event of Default or event which with notice or lapse of time or both would become an
Event of Default with respect to such Securities and any coupons appertaining thereto shall have
occurred and be continuing on the date of such deposit or, insofar as Sections 501(6) and 501(7)
are concerned, at any time during the period ending on the 91st day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until the expiration of such
period).

     (d) In the case of an election under Section 1302, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding
Securities and any coupons appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such
defeasance had not occurred.

     (e) In the case of an election under Section 1303, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the Holders of such Outstanding Securities and any
coupons appertaining thereto will not recognize income, gain or loss for Federal income tax
purposes as a result of such covenant defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such covenant
defeasance had not occurred.

     (f) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance under Section 1302 or the
covenant defeasance under Section 1303 (as the case may be) have been complied with and an Opinion
of Counsel to the effect that either (i) as a result of a deposit pursuant to subsection (a) above
and the related exercise of the Company’s option under Section 1302 or Section 1303 (as the case
may be), registration is not required under the Investment Company Act of 1940, as

 

 

amended, by the Company with respect to the trust funds representing such deposit or by the
Trustee for such trust funds or (ii) all necessary registrations under said Act have been effected.

     (g) Notwithstanding any other provisions of this Section, such defeasance or covenant
defeasance shall be effected in compliance with any additional or substitute terms, conditions or
limitations which may be imposed on the Company in connection therewith pursuant to Section 301.

     SECTION 1305. Deposited Money and Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions. Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations (or other property as may be provided pursuant to Section 301)
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1305, the “Trustee”) pursuant to Section 1304 in respect
of any Outstanding Securities of any series and any coupons appertaining thereto shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Securities and any
coupons appertaining thereto and this Indenture, to the payment, either directly or through any
Paying Agent as the Trustee may determine, to the Holders of such Securities and any coupons
appertaining thereto of all sums due and to become due thereon in respect of principal (and
premium, if any) and interest, but such money need not be segregated from other funds except to the
extent required by law.

     Unless otherwise specified with respect to any Security pursuant to Section 301, if, after a
deposit referred to in Section 1304(a) has been made, (a) the Holder of a Security in respect of
which such deposit was made is entitled to, and does, elect pursuant to Section 301 or the terms of
such Security to receive payment in a currency or currency unit other than that in which the
deposit pursuant to Section 1304(a) has been made in respect of such Security, or (b) a Conversion
Event occurs in respect of the currency or currency unit in which the deposit pursuant to Section
1304(a) has been made, the indebtedness represented by such Security and any coupons appertaining
thereto shall be deemed to have been, and will be, fully discharged and satisfied through the
payment of the principal of (and premium, if any), and interest, if any, on such Security as the
same becomes due out of the proceeds yielded by converting (from time to time as specified below in
the case of any such election) the amount or other property deposited in respect of such Security
into the currency or currency unit in which such Security becomes payable as a result of such
election or Conversion Event based on the applicable market exchange rate for such currency or currency unit in effect on the second Business Day prior to each payment date,
except, with respect to a Conversion Event, for such currency or currency unit in effect (as nearly
as feasible) at the time of the Conversion Event.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 1304 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of such Outstanding Securities and any coupons
appertaining thereto.

     Anything in this Article to the contrary notwithstanding, subject to Section 606, the Trustee
shall deliver or pay to the Company from time to time upon the Company Request any money or
Government Obligations (or other property and any proceeds therefrom) held by it as provided in
Section 1304 which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, are in excess of
the amount thereof which would then be required to be deposited to effect a defeasance or covenant
defeasance, as applicable, in accordance with this Article.

************

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

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of the day and year
first above written.

	 	 	 	 	 
	 	 	NVR, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Paul C. Saville
	 

	 	 	 	 
	 

	 	 	 	Name: Paul C. Saville
	 

	 	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ MaryBeth Lewicki
	 

	 	 	 	 
	 

	 	 	 	Name: MaryBeth Lewicki
	 

	 	 	 	Title: Assistant Vice President

 

 

EXHIBIT A

FORMS OF CERTIFICATION

EXHIBIT A-1

FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED

TO RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST

PAYABLE PRIOR TO THE EXCHANGE DATE

CERTIFICATE

[Insert title or sufficient description of Securities to be delivered]

     This is to certify that, as of the date hereof, and except as set forth below, the
above-captioned Securities held by you for our account (i) are owned by person(s) that are not
citizens or residents of the United States, domestic companies, or any estate or trust the income
of which is subject to United States federal income taxation regardless of its source (“United
States person(s)”), (ii) are owned by United States person(s) that are (a) foreign branches of
United States financial institutions (financial institutions, as defined in United States Treasury
Regulations Section 1.165-12(c)(1)(v) are herein referred to as “financial institutions”)
purchasing for their own account or for resale, or (b) United States person(s) who acquired the
Securities through foreign branches of United States financial institutions and who hold the
Securities through such United States financial institutions on the date hereof (and in either case
(a) or (b), each such United States financial institution hereby agrees, on its own behalf or
through its agent, that you may advise NVR, Inc. or its agent that such financial institution will
comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the United States Internal
Revenue Code of 1986, as amended, and the regulations thereunder), or (iii) are owned by United
States or foreign financial institution(s) for purposes of resale during the restricted period (as
defined in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, in addition, if
the owner is a United States or foreign financial institution described in clause (iii) above
(whether or not also described in clause (i) or (ii)), this is to further certify that such
financial institution has not acquired the Securities for purposes of resale directly or indirectly
to a United States person or to a person within the United States or its possessions.

     As used herein, “United States” means the United States of America (including the States and
the District of Columbia); and “possessions” include Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, Wake Island and the Northern Mariana Islands.

     We undertake to advise you promptly by tested telex on or prior to the date on which you
intend to submit your certification relating to the above- captioned Securities held by you for our
account in accordance with your Operating Procedures if any applicable statement herein is not
correct on such date, and in the absence of any such notification it may be assumed that this
certification applies as of such date.

     This certificate excepts and does not relate to [U.S. $]                      of such
interest in the above-captioned Securities in respect of which we are not able to certify and as to
which we understand an exchange for an interest in a Permanent Global Security or an exchange for
and delivery of definitive Securities (or, if relevant, collection of any interest) cannot be made
until we do so certify.

     We understand that this certificate may be required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to
produce this certificate or a copy thereof to any interested party in such proceedings.

Dated:                     , 19       

[To be dated no earlier than the 15th day prior to (i)

the Exchange Date or (ii) the relevant Interest

Payment Date occurring prior to the Exchange Date,

as applicable]

	 	 	 
	 

	 	[Name of Person Making
Certification]
	 

	 	 
	 

	 	(Authorized Signatory)
	 

	 	Name:
	 

	 	Title:

 

 

EXHIBIT A-2

FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR

AND CEDEL S.A. IN CONNECTION WITH THE EXCHANGE

OF A PORTION OF A TEMPORARY GLOBAL SECURITY OR TO

OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

CERTIFICATE

[Insert title or sufficient description of Securities to be delivered]

     This is to certify that, based solely on written certifications that we have received in
writing, by tested telex or by electronic transmission from each of the persons appearing in our
records as persons entitled to a portion of the principal amount set forth below (our “Member
Organizations”) substantially in the form attached hereto, as of the date hereof, [U.S.
$]
                     principal amount of the above-captioned Securities (i) is owned by
person(s) that are not citizens or residents of the United States, domestic companies, domestic
corporations or any estate or trust the income of which is subject to United States Federal income
taxation regardless of its source (“United States person(s)”), (ii) is owned by United States
person(s) that are (a) foreign branches of United States financial institutions (financial
institutions, as defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(v) are herein referred
to as “financial institutions”) purchasing for their own account or for resale, or (b) United
States person(s) who acquired the Securities through foreign branches of United States financial
institutions and who hold the Securities through such United States financial institutions on the
date hereof (and in either case (a) or (b), each such financial institution has agreed, on its own
behalf or through its agent, that we may advise NVR, Inc. or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal
Revenue Code of 1986, as amended, and the regulations thereunder), or (iii) is owned by United
States or foreign financial institution(s) for purposes of resale during the restricted period (as
defined in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to the further
effect, that financial institutions described in clause (iii) above (whether or not also described
in clause (i) or (ii)) have certified that they have not acquired the Securities for purposes of
resale directly or indirectly to a United States person or to a person within the United States or
its possessions.

     As used herein, “United States” means the United States of America (including the States and
the District of Columbia); and its “possessions” include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.

     We further certify that (i) we are not making available herewith for exchange (or, if
relevant, collection of any interest) any portion of the temporary global Security representing the
above captioned Securities excepted in the above-referenced certificates of Member Organizations
and (ii) as of the date hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member Organizations with respect to
any portion of the part submitted herewith for exchange (or, if relevant, collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.

     We understand that this certification is required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to
produce this certificate or a copy thereof to any interested party in such proceedings.

Dated:                      19         

[To be dated no earlier than the Exchange Date or the

relevant Interest Payment Date occurring prior to the

Exchange Date, as applicable]

	 	 	 
	 

	[Morgan Guaranty Trust Company of New York, Brussels Office,] as Operator of
the Euroclear System [Cedel S.A.]
	 

	By:exv4w4

Exhibit 4.4

NVR, INC.

and

NVR HOMES, INC. (AS SUBSIDIARY GUARANTOR)

AND

THE BANK OF NEW YORK

as Trustee

 

First Supplemental Indenture

Dated as of April 14, 1998

 

8% Senior Notes Due 2005

 

 

FIRST SUPPLEMENTAL INDENTURE

     FIRST SUPPLEMENTAL INDENTURE, dated as of April 14, 1998, between NVR, INC., a Virginia
corporation (hereinafter called the “Company”), and NVR HOMES, INC., a Virginia corporation
(“Homes” ), as a Subsidiary Guarantor (as defined), each having its principal office at 7601
Lewinsville Road, Suite 300, McLean, Virginia, 22102 and THE BANK OF NEW YORK, a New York banking
corporation (the “Trustee”), having a Corporate Trust Office at 101 Barclay Street, 21st Floor, New
York, New York, as Trustee under the Base Indenture and this First Supplemental Indenture (each as
hereinafter defined). Capitalized terms used and not otherwise defined herein shall have the
meaning set forth in the Base Indenture (as defined).

RECITALS

     WHEREAS, the Company, and the Trustee have as of April 14, 1998 entered into an Indenture (the
"Base Indenture”) providing for the issuance by the Company from time to time of its senior debt
securities evidencing its unsecured and unsubordinated indebtedness, which, pursuant to Section
301(23) of the Base Indenture may be guaranteed by one or more of the Company’s subsidiaries;

     WHEREAS, no Securities have been issued under the Base Indenture;

     WHEREAS, the Company desires under this First Supplemental Indenture to issue the Notes (as
defined in Article III hereof) to be guaranteed on a senior unsecured basis by Homes (and under
certain circumstances defined herein, by other Subsidiary Guarantors (as defined in Article III
hereof)), and has duly authorized the creation of the Notes and the execution and delivery of this
First Supplemental Indenture to modify and supplement the Base Indenture and provide certain
additional provisions as hereinafter described;

     WHEREAS, Homes desires to guarantee the Notes on a senior unsecured basis and, in accordance
with Section 301(23) of the Base Indenture and this First Supplemental Indenture, Homes has duly
authorized the issuance of its Subsidiary Guarantee (as defined) and the execution and delivery of
this First Supplemental Indenture and the Subsidiary Guarantee;

     WHEREAS, in accordance with Section 901(7) of the Base Indenture, the Company and the Trustee
are authorized and permitted to amend and supplement the Base Indenture as set forth herein,
without the consent of any Holder, and all requirements set forth in Article Nine of the Base
Indenture to make this First Supplemental Indenture effective have been satisfied; and

     WHEREAS, the Company, Homes and the Trustee deem it advisable to enter into this First
Supplemental Indenture for the purposes of establishing the terms of the Notes and the Subsidiary
Guarantees and for providing for the rights, obligations and duties of the Trustee with respect to
the Notes and Subsidiary Guarantees;

     NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the mutual premises and agreements herein contained, the Company,
Homes and the Trustee covenant and agree, for the equal and proportionate benefit of all Holders of
the Notes, as follows:

ARTICLE I.

CREATION OF THE NOTES

     Section 1.01. Designation of Series. Pursuant to the terms hereof and Sections 201 and 301 of
the Base Indenture, the Company hereby creates a series of its Notes known as the “8% Senior Notes
due 2005,” which shall be guaranteed by Homes and such Notes (including the associated Subsidiary
Guarantees) shall be deemed “Securities” for all purposes under the Base Indenture.

     Section 1.02. Form of Notes. The definitive form of the Notes shall be substantially in the
form set forth in Exhibit A attached hereto and the definitive form of the Subsidiary
Guarantees to be attached to the Notes shall be substantially in the form set forth in Exhibit
B, each of which is incorporated herein and made part hereof. The Notes shall bear interest, be
payable and have such other terms as are stated in the form of definitive Note or in the Base
Indenture, as supplemented by this First Supplemental Indenture.

     Section 1.03. Limit on Amount of Series. The initial principal amount of Notes issued under
this First Supplemental Indenture shall be $145,000,000 and the aggregate principal amount of Notes
authorized to be issued

 

 

under this series shall not exceed $175,000,000. Additional Notes may, upon the execution and
delivery of this First Supplemental Indenture or from time to time thereafter (subject to Section
5.02 hereof), be executed by the Company and delivered to the Trustee for authentication, and the
Trustee shall thereupon authenticate and deliver said Notes (which shall include the applicable
Subsidiary Guarantee) to or upon the written order of the Company, signed by its Chairman of the
Board, President or a Vice President and by its Chief Financial Officer, Treasurer or an Assistant
Treasurer or its Secretary or an Assistant Secretary, without further action by the Company.

     Section 1.04. Certificate of Authentication. The Trustee’s certificate of authentication to be
borne on the Notes shall be substantially as provided in the Base Indenture.

     Section 1.05. Designation of Restricted and Unrestricted Subsidiaries. As of the Issue Date,
the Restricted Subsidiaries of the Company shall be NVR Homes, Inc., NVR Financial Services, Inc.,
RVN, Inc. and Fox Ridge Homes, Inc. As of the Issue Date, all other Subsidiaries of the Company
shall be Unrestricted Subsidiaries.

ARTICLE II.

APPOINTMENT OF THE TRUSTEE FOR THE NOTES

     Section 2.01. Appointment of Trustee. Pursuant and subject to the Base Indenture, the Company,
Homes and the Trustee hereby constitute the Trustee as trustee to act on behalf of the Holders of
the Notes, and as the principal Paying Agent and Security Registrar for the Notes, effective upon
execution and delivery of this First Supplemental Indenture. By execution, acknowledgment and
delivery of this First Supplemental Indenture, the Trustee hereby accepts appointment as trustee,
Paying Agent and Security Registrar with respect to the Notes, and agrees to perform such trusts
upon the terms and conditions in the Base Indenture and in this First Supplemental Indenture set
forth.

     Section 2.02. Rights, Powers, Duties and Obligations of the Trustee. Any rights, powers,
duties and obligations by any provisions of the Base Indenture conferred or imposed upon the
Trustee shall, insofar as permitted by law, be conferred or imposed upon and exercised or performed
by the Trustee with respect to the Notes.

ARTICLE III.

DEFINITIONS

     So long as any of the Notes are Outstanding, the following definitions shall be applicable to
the Notes, be included as defined terms for all purposes under the Base Indenture with respect to
the Notes and, to the extent inconsistent with the definition of such term contained in Section 101
of the Base Indenture, shall replace such definition for purposes of the Notes:

     “1993 Notes” means the Company’s 11% Senior Notes due April 15, 2003 issued under that certain
Indenture dated as of September 30, 1993, as amended, among the Company, Homes, NVR Financial
Services, Inc., RVN, Inc. and Fox Ridge Homes, Inc. and IBJ Schroeder Bank & Trust Company.

     “Acquired Indebtedness” means Indebtedness of any Person that is not a Restricted Subsidiary,
which Indebtedness is outstanding at the time such Person becomes a Restricted Subsidiary, or is
merged into or consolidated with, the Company or a Restricted Subsidiary; provided, however, that
such Indebtedness was not incurred in connection with, or in contemplation of, such Person becoming
a Restricted Subsidiary or such merger or consolidation.

     “Adjusted Net Assets” of a Subsidiary Guarantor at any date shall mean the lesser of (i) the
amount by which the fair value of the property of such Subsidiary Guarantor exceeds the total
amount of liabilities, including, without limitation, contingent liabilities (after giving effect
to all other fixed and contingent liabilities incurred or assumed on such date), but excluding
liabilities under the Subsidiary Guarantee, of such Subsidiary Guarantor at such date and (ii) the
amount by which the present fair salable value of the assets of such Subsidiary Guarantor at such
date exceeds the amount that will be required to pay the probable liability of such Subsidiary
Guarantor on its debts (after giving effect to all other fixed and contingent liabilities incurred
or assumed on such date and after giving effect to any collection from any Subsidiary of such
Subsidiary Guarantor in respect of the obligations of such Subsidiary under the Subsidiary
Guarantee), excluding debt in respect of the Subsidiary Guarantee, as they become absolute and
matured.

 

 

     “Affiliate” means, with respect to any specified Person, any other Person directly or
indirectly controlling or controlled by, or under direct or indirect common control with, such
specified Person. For purposes of this definition, the term “control” means the power to direct the
management and policies of a Person, either directly or through one or more intermediaries, whether
through the ownership of voting securities, by contract, or otherwise, or (b) without limiting the
foregoing, ownership of 20% or more of the voting power of the voting common equity of such Person
(on a fully diluted basis). Notwithstanding the foregoing, the term “Affiliate” shall not include,
with respect to the Company or any Restricted Subsidiary, any Restricted Subsidiary or, with
respect to any Restricted Subsidiary, the Company.

     “Asset Sale” means, with respect to any Person, the sale, lease, conveyance or other
disposition (including, without limitation, by merger or consolidation, and whether by operation of
law or otherwise) of any of that Person’s assets (including, without limitation, the sale or other
disposition of Capital Stock of any Subsidiary of such Person, whether by such Person or by such
Subsidiary) whether owned on the Issue Date or subsequently acquired, in one transaction or a
series of related transactions, in which such Person and/or its Subsidiaries receive cash and/or
other consideration (including, without limitation, the unconditional assumption of Indebtedness of
such Person and/or its Subsidiaries) having an aggregate fair market value of $10,000,000 or more
as to such transaction or series of related transactions (each such transaction being referred to
herein as a “disposition”); provided, however, that the following transactions shall not constitute
an Asset Sale: (i) a transaction or series of related transactions that results in a Change of
Control; (ii) dispositions of land, building lots, homes, infrastructure, other buildings,
improvements, appurtenances and entitlements in the ordinary course of business and dispositions of
obsolete equipment; (iii) exchanges or swaps of real estate by the Company in the ordinary course
of business for real estate of substantially equivalent value (or for real estate and cash or Cash
Equivalents which, in the aggregate, have a substantially equivalent value); (iv) dispositions
between or among the Company and any one or more Restricted Subsidiaries or between or among
Restricted Subsidiaries; (v) a disposition that is a Permitted Investment (to the extent such
Permitted Investment may be deemed to constitute an Asset Sale) or a Restricted Payment permitted
under Section 5.01 hereof; and (vi) dispositions of the Capital Stock of Ryan Mortgage Acceptance
Corporation IV.

     “Attributable Debt” means, with respect to any Capitalized Lease Obligations, the capitalized
amount thereof determined in accordance with GAAP.

     “Bank Credit Facility” means the Amended and Restated Credit and Security Agreement, dated as
of May 5, 1995, among NVR Homes, as borrower, the Company, as a guarantor, and the lenders named
therein and BankBoston N.A., as agent (together with the documents related thereto (including,
without limitation, any guaranty agreements), as such facility has been or may be amended,
restated, supplemented or otherwise modified from time to time, and includes any facility extending
the maturity of, increasing the total commitment of, or restructuring (including, without
limitation, the inclusion of Subsidiary Guarantors thereunder that are Restricted Subsidiaries of
the Company) all or any portion of, the Indebtedness under such facility or any successor or
replacement facilities and includes any facility with one or more agents or lenders refinancing or
replacing all or any portion of the Indebtedness under such facility or any successor facilities.

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

     “Base Indenture” has the meaning set forth in the Recitals.

     “Board of Directors” means the board of directors of the Company or any authorized committee
thereof.

     “Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of or in a Person’s capital stock or other equity interests, and options,
rights or warrants to purchase such capital stock or other equity interests, whether now
outstanding or issued after the Issue Date, including, without limitation, all Preferred Stock of
such Person if such Person is a corporation or membership interests if such Person is a limited
liability company and each general and limited partnership interest of such Person if such Person
is a partnership.

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

 

 

     “Cash Equivalents” means (a) U.S. government obligations; (b) GNMA securities; (c) debt issued
by other agencies of the United States of America; (d) commercial paper rated either “A1” or
comparable by S&P or “P1” or comparable by Moody’s; (e) Dutch auction preferred stocks rated either
“AA” or comparable by S&P or “Aa2” or comparable by Moody’s; (f) certificates of deposit issued by
commercial banks or savings and loan associations whose short-term debt is rated either “A1” or
comparable by S&P or “P1” or comparable by Moody’s or a comparable rating by Thompson’s Bank Watch,
or if such an institution is a subsidiary, then its parent corporation may have such a rating; (g)
bankers acceptances issued by financial institutions that meet the requirements for certificates of
deposit; (h) deposits in institutions having the same qualifications required for investments in
certificates of deposit; (i) repurchase agreements collateralized by any otherwise acceptable
collateral as defined above; (j) money market accounts a majority of whose assets are composed of
items described by any of the foregoing clauses (a) through (i) through brokerage firms deemed
acceptable by the Company’s management; and (k) investments in mutual funds that are registered
under the Investment Company Act of 1940, as amended, which have net assets of at least
$100,000,000 and at least 85% of whose assets consist of securities having a rating of not less
than AAA or its equivalent by Moody’s or investments or other obligations of the type described in
clauses (a) through (j) above (without regard to maturities).

     “Change of Control” means the occurrence of any of the following events:

     (i) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation) in one or more series of related transactions of all or substantially all of the
assets of the Company on a consolidated basis;

     (ii) any “person” or “group” (as such terms are used in Section 13(d) of the Exchange Act) is
or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of more than 50 percent of the total voting power of all securities
generally entitled to vote in the election of directors of the Company;

     (iii) during any period of two consecutive calendar years, individuals who at the beginning of
such period constituted the Board of Directors (together with any new directors whose election by
such Board of Directors or whose nominations for elections by the stockholders of the Company was
approved by a majority vote of the directors of the Company then still in office who were either
directors at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the Board of Directors
then in office; or

     (iv) the merger or consolidation of the Company with or into another person or the merger of
another person with or into the Company in a transaction with the effect that immediately after
such transaction the stockholders of the Company immediately prior to such transaction hold less
than 50% of the total voting power of all securities generally entitled to vote in the election of
directors of the Person surviving such merger or consolidation.

     “Consolidated EBITDA” of any Person for any period means (a) the Consolidated Net Income of
such Person for such period, plus (b) the sum, without duplication (and only to the extent such
amounts are deducted in determining such Consolidated Net Income), of (i) the provision for income
taxes for such period for such Person and its Subsidiaries (or, with respect to the Company, for
the Company and its Restricted Subsidiaries) (except to the extent of tax benefits associated with
an extraordinary loss) for such period, (ii) depreciation and amortization expense of such Person
and its Subsidiaries (or, with respect to the Company, for the Company and its Restricted
Subsidiaries), (iii) Consolidated Interest Expense of such Person for such period, and (iv) all
other noncash, nonextraordinary charges (excluding any non-cash charges to the extent they
represent an accrual of or reserve for cash charges in any future period or amortization of a
prepaid cash charge that was paid in a prior period) reducing Consolidated Net Income for such
period determined, in each case, on a consolidated basis for such Person and its Subsidiaries (or,
with respect to the Company, for the Company and its Restricted Subsidiaries) in accordance with
GAAP.

     “Consolidated Fixed Charge Coverage Ratio” on any date (the “Transaction Date”) means, with
respect to any Person, the ratio of (a) the aggregate amount of Consolidated EBITDA of such Person
attributable to continuing operations and businesses for the Reference Period to (b) the sum of (i)
the aggregate Consolidated Interest Incurred of such Person (exclusive of amounts attributable to
discontinued operations and businesses, but in each case only to the extent that the obligations
giving rise to such Consolidated Interest Incurred would no longer be obligations

 

 

contributing to such Person’s Consolidated Interest Incurred subsequent to the Transaction
Date) for the Reference Period, plus (ii) dividends paid or accrued (unless paid to, or accrued in
favor of, the Company or its Restricted Subsidiaries) on Disqualified Capital Stock of the Company
and Restricted Subsidiaries of the Company during the Reference Period times a fraction, the
numerator of which is one and the denominator of which is one minus the then current combined
federal, state and local statutory tax rate of the Company; provided that for purposes of such
computation, in calculating Consolidated EBITDA and Consolidated Interest Incurred, (w) the
transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio shall
be assumed to have occurred (on a pro forma basis) on the first day of the Reference Period; (x)
the Incurrence of any Refinancing Indebtedness during the Reference Period or subsequent thereto
and on or prior to the Transaction Date (and the proceeds of which were used to refinance
Indebtedness other than Indebtedness under revolving credit facilities) shall be assumed to have
occurred (on a pro forma basis) on the first day of such Reference Period; (y) Consolidated
Interest Incurred attributable to any Indebtedness being Incurred bearing a floating interest rate
shall be computed as if the rate in effect on the Transaction Date had been the applicable rate for
the entire period, unless the Company or any of its Restricted Subsidiaries is a party to an
Interest Swap Obligation (which shall remain in effect for the 12-month period after the
Transaction Date) that has the effect of fixing the interest rate on the date of computation, in
which case such rate (whether higher or lower) shall be used; and (z) all members of the
consolidated group of the Company on the Transaction Date that were acquired during the Reference
Period or on or prior to the Transaction Date shall be deemed to be members of the consolidated
group of the Company, along with any Indebtedness incurred in connection with the acquisition
thereof, for the entire Reference Period.

     “Consolidated Interest Expense” of any Person for any period means the Interest Expense of
such Person and its Subsidiaries or, with respect to the Company, of the Company and its Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.

     “Consolidated Interest Incurred” of any Person for any period means the Interest Incurred of
such Person and its Subsidiaries or, with respect to the Company, of the Company and its Restricted
Subsidiaries (other than the Company’s financial services segment Restricted Subsidiaries) for such
period, determined on a consolidated basis in accordance with GAAP.

     “Consolidated Net Assets” of the Company as of any date means the total amount of assets of
the Company and its Restricted Subsidiaries (less applicable reserves) on a consolidated basis at
the end of the fiscal quarter immediately preceding such date for which financial information is
available, as determined in accordance with GAAP, as reflected on the consolidated balance sheet of
the Company and its Restricted Subsidiaries as of the end of such fiscal quarter.

     “Consolidated Net Income” of any Person for any period means the aggregate net income (or
loss) of such Person and its Subsidiaries (or, with respect to the Company, of the Company and its
Restricted Subsidiaries) (collectively for the purposes of this definition of Consolidated Net
Income only, the “Relevant Person”) for such period, determined on a consolidated basis in
accordance with GAAP, excluding without duplication: (a) the net income (or loss) of any other
Person in which the Relevant Person has an ownership interest, other than cash dividends or cash
distributions during such period that have been received by the Relevant Person; (b) extraordinary
gains and losses, net of the tax effects thereof; (c) except to the extent includable in
Consolidated Net Income pursuant to the foregoing clause (a), the net income (or loss) of any
Person that accrued prior to the date that such Person was acquired by the Relevant Person or is
merged into or consolidated with the Relevant Person or any of its Subsidiaries (or in the case of
the Company, any Person that is an Unrestricted Subsidiary or prior to the date that such Person is
acquired by the Company as a Restricted Subsidiary or becomes a Restricted Subsidiary); (d) the net
income of any Restricted Subsidiary to the extent that (and only so long as) the declaration or
payment of dividends or similar distributions by such Restricted Subsidiary of that income is
prohibited by the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Restricted Subsidiary during such
period; (e) any expense related to the amortization of reorganization value in excess of amounts
allocable to identifiable assets (as defined by GAAP) and (f) any noncash expense related to the
issuance of Qualified Capital Stock of the Company pursuant to the Company’s 1994 Management
Incentive Plan.

     “Consolidated Net Worth” of any Person as of any date means the stockholders’ equity
(including any preferred stock that is classified as equity under GAAP, but excluding Disqualified
Capital Stock) of such Person and its Subsidiaries (or, with respect to the Company, of the Company
and its Restricted Subsidiaries) on a consolidated basis at

 

 

the end of the fiscal quarter immediately preceding such date for which financial information
is available, as determined in accordance with GAAP.

     “Currency Agreement” of any Person means any foreign exchange contract, currency swap
agreement or other similar agreement or arrangement designed to protect such Person or any of its
Subsidiaries or Affiliates against fluctuations in currency values.

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

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

     “Designation Amount” has the meaning set forth in the definition of “Unrestricted Subsidiary.”

     “Disinterested Director” means a member of the Board of Directors of the Company who does not
have any material direct or indirect financial interest in or with respect to the transaction being
considered.

     “Disqualified Capital Stock” means (a) with respect to any Person, any Capital Stock of such
Person or its Subsidiaries that, by its terms or by the terms of any security into which it is
convertible or exchangeable, is, or upon the happening of an event or the passage of time would be,
required to be redeemed or repurchased by such Person or its Subsidiaries, including at the option
of the Holder, in whole or in part, or has, or upon the happening of an event or passage of time
would have, a redemption or similar payment due on or prior to the Stated Maturity; and (b) with
respect to any Restricted Subsidiary, any Capital Stock (other than (i) Capital Stock owned by the
Company or a Restricted Subsidiary; and (ii) common stock with no preferences or privileges and
with no redemption or repayment provisions).

     “Equity Investor” with respect to any Person means any other Person that has made an
investment in the capital stock, shares, interests, participation or other ownership interests of
such other Person (including any option, warrant or right to acquire any such interest) or has made
any capital contribution to such other Person and owns a minority interest in such Person.

     “Event of Default” has the meaning set forth in Section 4.01 hereof

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

     “Existing Indebtedness” means all of the Indebtedness of the Company and its Subsidiaries that
is outstanding on the Issue Date.

     “First Supplemental Indenture” means the Base Indenture as modified and supplemented by this
First Supplemental Indenture, as either may be modified, amended or supplemented in accordance with
their terms.

     “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 date of this First Supplemental
Indenture.

     “Holder” means the person in whose name a Note is registered on the register for the Notes.

     “Incur” means, with respect to any Indebtedness or other obligation of any Person, to create,
issue, incur (including by conversion, exchange or otherwise), assume, guarantee or otherwise
become liable in respect of such Indebtedness or other obligation or the recording, as required
pursuant to GAAP or otherwise, of any such Indebtedness or other obligation on the balance sheet of
such Person (and “Incurrence,” “Incurred” and “Incurring” shall have meanings correlative to the
foregoing). Indebtedness of a Person existing at the time such Person becomes a Restricted
Subsidiary or is merged or consolidated with or into the Company or any Restricted Subsidiary shall
be deemed to be Incurred at such time. Neither the accrual of interest, nor the accretion of
original issue discount, nor the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, nor the payment of dividends on Disqualified Capital Stock in the
form of additional shares of the same class of Disqualified Capital Stock shall be deemed to be an
Incurrence of Indebtedness or an issuance of Disqualified Capital Stock for purposes of this First
Supplemental Indenture; provided, in

 

 

each such case, that the amount thereof is included for purposes of the Consolidated Fixed
Charge Coverage Ratio of the Company. In addition, the mere extension of the term of lender
commitments to extend credit or funds to the Company or any of its Subsidiaries pursuant to a
revolving credit agreement or similar arrangement shall not be deemed to be an Incurrence of
Indebtedness.

     “Indebtedness” of any Person means, without duplication, (a) any liability of such Person
(other than accounts payable, other trade payables, general contingency and tax reserves,
liabilities for deposits and deferred income which in accordance with GAAP are recorded as
liabilities and accrued expenses (including without limitation, obligations for insurance premiums)
Incurred in the ordinary course of business) (i) for borrowed money or under any reimbursement
obligation relating to a letter of credit or other similar instruments (other than standby letters
of credit, performance, completion, surety or similar bonds or instruments issued for the benefit
of such Person or surety, performance, completion or payment bonds, earnest money notes or similar
purpose undertakings or indemnifications issued by, such Person in the ordinary course of
business); (ii) evidenced by a bond, note, debenture or similar instrument (including a purchase
money obligation) given in connection with the acquisition of any businesses, properties or assets
of any kind or with services (other than any obligation to pay a contingent purchase price which,
as of the date of Incurrence thereof is not required to be recorded as a liability in accordance
with GAAP); or (iii) in respect of Capitalized Lease Obligations (to the extent of the Attributable
Debt in respect thereof), (b) any Indebtedness of others that such Person has guaranteed to the
extent of the guaranty, (c) to the extent not otherwise included, Interest Swap Obligations or the
obligations of such Person under Currency Agreements, in either case to the extent recorded as
liabilities not constituting Interest Incurred, net of amounts recorded as assets in respect of
such agreements, in accordance with GAAP, (d) all Indebtedness of others secured by a Lien (other
than a Permitted Lien) on any asset of such Person, whether or not such Indebtedness is assumed by
such Person, and (e) all Disqualified Stock issued by such Person (the amount of indebtedness
represented by any Disqualified Stock shall equal the greater of the voluntary or involuntary
liquidation preference plus accrued and unpaid dividends). The amount of Indebtedness of any Person
at any date shall be (A) the outstanding balance at such date of all unconditional obligations as
described above, net of any unamortized discount to be accounted for as Interest Expense, in
accordance with GAAP, (B) the maximum liability of such Person for any contingent obligations under
clause (b) above at such date, net of, any unamortized discount to be accounted for as Interest
Expense in accordance with GAAP and (C) in the case of clause (d) above, the lesser of (1) the fair
market value of any asset subject to a Lien securing the Indebtedness of others on the date that
the Lien attaches and (2) the amount of the Indebtedness secured.

     “Interest Expense” of any Person for any period means, without duplication, the aggregate
amount of interest which, in conformity with GAAP, should be set opposite the caption “interest
expense” or any like caption on an income statement for such Person (including, without limitation,
imputed interest included on Capitalized Lease Obligations, the interest portion of any deferred
payment obligation, amortization of discount or premium, if any, and all other noncash interest
expense) plus, with respect to the Company and its Restricted Subsidiaries, without duplication
(including duplication of the foregoing items), amortization of issue costs on Indebtedness, all
interest included as a component of cost of sales for such period, and all commissions, discounts
and other fees and charges owed with respect to bankers’ acceptance financing, and amortization and
expensing of other financing fees and expenses, and all interest actually paid by the Company or a
Restricted Subsidiary under any guaranty of Indebtedness (including, without limitation, a guaranty
of principal, interest or any combination thereof) of any other Person during such period.

     “Interest Incurred” of any Person for any period means, without duplication, the aggregate
amount of interest which, in conformity with GAAP, should be set opposite the caption “interest
expense” or any like caption on an income statement for such Person (including, without limitation,
imputed interest included on Capitalized Lease Obligations, the interest portion of any deferred
payment obligation, amortization of discount or premium, if any, and all other noncash interest
expense) plus, with respect to the Company and its Restricted Subsidiaries, without duplication
(including duplication of the foregoing items), all interest capitalized for such period,
amortization of issue costs on Indebtedness, all commissions, discounts and other fees and charges
owed with respect to bankers’ acceptance financing, amortization and expensing of other financing
fees and expenses, and all interest actually paid by the Company or a Restricted Subsidiary under
any guaranty of Indebtedness (including, without limitation, a guaranty of principal, interest or
any combination thereof) of any other Person during such period.

     “Interest Swap Obligation” means any obligation of any Person pursuant to any arrangement
whereby such Person is entitled to receive from time to time periodic payments calculated by
applying either a fixed or floating

 

 

rate of interest on a stated notional amount in exchange for periodic payments made by such
Person calculated by applying a fixed or floating rate of interest on the same notional amount;
provided, that the term “Interest Swap Obligation” shall also include interest rate exchange,
collar, swap option, futures contracts or other similar agreements providing interest rate
protection.

     “Investment” by any Person in any other Person means (without duplication) (a) the acquisition
by such Person (whether for cash, property, services, securities or otherwise) of Capital Stock,
bonds, notes, debentures, partnership, or other ownership interests, or other securities of such
other Person, (b) the making by such Person of any deposit with, or advance, loan or other
extension of credit to, such other Person (including the purchase of property from such other
Person subject to an understanding or agreement, contingent or otherwise, to resell such property
to such other Person), except in the ordinary course of business, (c) the entering into by such
Person of any guaranty of, or other contingent obligation with respect to, Indebtedness or other
liability of such other Person, or (d) the making of any capital contribution by such Person to
such other Person.

     “Investment Grade” shall mean BBB- or higher by S&P or Baa3 or higher by Moody’s or the
equivalent of such ratings by S&P or Moody’s.

     “Issue Date” means the date of original issuance of the Notes.

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

     “Moody’s” means Moody’s Investors Service, Inc. or any successor to its debt rating business.

     “Net Cash Proceeds” means (i) cash (in U.S. dollars or freely convertible into U.S. dollars)
received by the Company or any Restricted Subsidiary from an Asset Sale net of all (a) brokerage
commissions, and all other fees and expenses (including, without limitation, fees and expenses of
counsel and investment bankers) related to such Asset Sale, (b) provisions for all income and other
taxes measured by or resulting from such Asset Sale, (c) payments made to retire Indebtedness where
payment of such Indebtedness is required by instruments governing such indebtedness and secured by
the assets sold pursuant to and in connection with such Asset Sale, (d) amounts required to be paid
to any Person (other than the Company or a Restricted Subsidiary) owning a legal or beneficial
interest in the assets subject to the Asset Sale, (e) appropriate amounts to be provided by the
Company or any Restricted Subsidiary thereof, as the case may be, as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by the Company or any
Restricted Subsidiary thereof, as the case may be, after such Asset Sale, including, without
limitation, pension and other post-employment liabilities under any indemnification obligations
associated with such Asset Sale, all as reflected in an Officers’ Certificate delivered to the
Trustee, and (ii) all noncash consideration received by the Company or any of its Restricted
Subsidiaries from such Asset Sale promptly thereupon liquidated or converted into cash, without
duplication, net of all items enumerated in subclauses (a) through (e) of clause (i) hereof.

     “Non-Recourse Indebtedness” means, with respect to any Person, Indebtedness (or any portion
thereof) of such Person for which the sole legal recourse for collection of principal, premium, and
interest on such Indebtedness is against the specific property identified in the instruments
evidencing or securing such Indebtedness, which property was acquired with the proceeds of such
Indebtedness or such Indebtedness was Incurred within 180 days after the acquisition of such
property, without any liability on the part of any such Person for any deficiency with respect to
principal, premium or interest.

     “Notes” means the 8% Senior Notes due 2005 issued hereunder, as supplemented from time to time
in accordance with the terms hereof.

     “Officer” means the Chairman of the Board, the President, the Chief Executive Officer, any
Vice President, the Treasurer or the Secretary of the Company or, as applicable, any Restricted
Subsidiary.

     “Permitted Business” means any business primarily engaged in homebuilding (including
townhomes, condominiums and single family homes), related financial services, or other activities
reasonably related or incident to the foregoing.

     “Permitted Investment” means (a) Investments in Cash Equivalents, (b) Investments in the
Company or in its Restricted Subsidiaries, (c) Investments by the Company or any Restricted
Subsidiary of the Company in a Person,

 

 

if as a result of such Investment (i) such Person becomes a Restricted Subsidiary of the
Company or (ii) such Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Company or a Restricted
Subsidiary; (d) advances to Ryan Mortgage Acceptance Corporation IV for the purpose of redeeming
the bonds of such entity; provided that (i) the net proceeds of the sale of the collateral securing
such bonds shall be used to repay such advance with any remaining net proceeds to be distributed as
a dividend to NVRFS, (ii) at the time of such Investment, a valid written commitment shall be in
place from an investor not affiliated with the Company to purchase such collateral within a
specified period of time, which period shall in no event exceed 60 days, and at a specific price or
yield and (iii) each advance is repaid within two Business Days after the delivery of the
collateral pursuant to such written commitment; (e) loans or advances made in the ordinary course
of business to officers, directors or employees of the Company or any of its Restricted
Subsidiaries in an amount not to exceed $2,000,000 at any one time outstanding, (f) Investments
made prior to the Issue Date, (g) Investments in the form of guaranties to the extent such
guaranties are permitted to be Incurred pursuant to Section 5.02 hereof, (h) net cash Investments
in and advances to Unrestricted Subsidiaries in an amount not to exceed $20,000,000 at any one time
outstanding, (i) Investments having an aggregate fair market value (measured on the date each such
Investment is made and without giving effect to subsequent changes in value) not to exceed
$15,000,000 in any fiscal year and not to exceed $30,000,000 at any one time outstanding, in any
Permitted Business and (j) Investments in NVR Mortgage Finance, Inc. to be used by NVR Mortgage
Finance, Inc. solely for the purpose of funding mortgage loans in the ordinary course of business
in an amount not to exceed $25,000,000; provided, however, that (i) a valid take-out commitment is
in place at the time of the closing of the mortgage loan from an investor not affiliated with the
Company, and (ii) any particular advance remains outstanding for no more than 15 consecutive
calendar days in any calendar month.

     “Permitted Liens” means (a) Liens for taxes, assessments or governmental charges or claims
that either (i) are not yet delinquent, (ii) are being contested in good faith by appropriate
proceedings and as to which appropriate reserves have been established or other provisions have
been made in accordance with GAAP, or (iii) solely encumber property abandoned or in the process of
being abandoned, (b) statutory Liens of landlords and carriers’, warehousemen’s, mechanics’,
suppliers’, materialmen’s, repairmen’s or other Liens imposed by law and arising in the ordinary
course of business and with respect to amounts that, to the extent applicable, either (i) are not
yet delinquent or (ii) are being contested in good faith by appropriate proceedings and as to which
appropriate reserves have been established or other provisions have been made in accordance with
GAAP, (c) Liens Incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security, (d) Liens
Incurred or deposits made to secure the performance of tenders, bids, leases, statutory
obligations, surety and appeal bonds, performance bonds, completion bonds, performance guaranty
bonds, progress payments, government contracts, utility services and other obligations of like
nature in each case Incurred in the ordinary course of business, (e) attachment or judgment Liens
with respect to judgments or proceedings which, with the passage of time, would not constitute an
Event of Default and which are being contested in good faith by appropriate proceedings, (f)
easements, dedications, assessment district or similar Liens in connection with municipal or
special district financing, rights-of-way, zoning restrictions, reservations and other similar
charges, encumbrances or burdens not materially interfering with the ordinary course of business,
(g) leases or subleases granted to others not materially interfering with the ordinary course of
business, (h) Liens on assets securing Refinancing Indebtedness which refinanced Indebtedness that
was previously secured by such assets, (i) any interest in or title of a lessor to property subject
to any Capitalized Lease Obligation Incurred in compliance with this First Supplemental Indenture,
(j) Liens existing on the date of this First Supplemental Indenture, including without limitation,
Liens securing Existing Indebtedness, (k) any right of first refusal, right of first offer, option,
contract or other agreement to sell or purchase an asset, pay lot premiums or participate in the
income or revenue derived therefrom, (l) Liens securing Non-Recourse Indebtedness of the Company or
a Restricted Subsidiary, (m) Liens on property or assets of any Restricted Subsidiary securing
Indebtedness of such Restricted Subsidiary owing to the Company or one or more of its Restricted
Subsidiaries, (n) any legal right of, or right granted in good faith to, a lender or lenders to
which the Company or a Restricted Subsidiary may be indebted to offset against, or appropriate and
apply to the payment of, such Indebtedness any and all balances, credits, deposits, accounts or
monies of the Company or a Restricted Subsidiary with or held by such lender or lenders, (o) Liens
in favor of the Trustee arising pursuant to this First Supplemental Indenture, (p) Liens Incurred
in the ordinary course of business as security for the Company’s or its Restricted Subsidiaries’
obligations with respect to indemnification in favor of title insurance providers, (q) letters of
credit, bonds or other assets pledged to secure insurance in the ordinary course of business, (r)
Liens on property of a person existing at the time such person is merged into or consolidated with
the Company or any Restricted Subsidiary of the Company; provided, that such Liens were not
incurred in connection with, or in

 

 

contemplation of, such merger or consolidation; (s) Liens on property existing at the time of
acquisition thereof by the Company or any Restricted Subsidiary of the Company; provided that such
Liens (a) were not incurred in connection with, or in contemplation of, such acquisition and (b) do
not extend to any assets of the Company or any of its Restricted Subsidiaries other than the
property so acquired; (t) Liens incurred or pledges or deposits made in the ordinary course of
business to secure payment of workers’ compensation, or to participate in any fund in connection
with workers’ compensation, unemployment insurance, old age pensions or other social security
programs; (u) Liens created by special assessment districts used to finance infrastructure
improvements; (v) interests of purchasers of housing units in such units arising under the
applicable contracts of sale or applicable law; (w) any pledge or deposit of cash or property in
conjunction with obtaining bonds or letters of credit required to engage in constructing on-site
and off-site improvements required by municipalities or other governmental authorities in the
ordinary course of business; (x) purchase money mortgages (including, without limitation,
Capitalized Lease Obligations and purchase money security interests); and (y) any other Liens,
provided, that the aggregate amount of obligations secured by such other Liens outstanding at any
one time does not exceed 10% of the Company’s Consolidated Net Worth at the time of Incurrence
thereof.

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

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

     “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.

     “Qualified Capital Stock” means Capital Stock other than Disqualified Capital Stock.

     “Public Equity Offering” means an underwritten public offering by the Company of its Qualified
Capital Stock pursuant to a registration statement effective under the Securities Act (other than a
registration statement on Form S-8 or similar form).

     “Rating Agencies” shall mean (i) S&P and (ii) Moody’s.

     “Reference Period” with regard to any Person means the four full fiscal quarters of such
Person ended on or immediately preceding any date upon which any determination is to be made
pursuant to the terms of the Notes or this First Supplemental Indenture for which financial
information is available.

     “Refinancing Indebtedness” means Indebtedness that is an extension, renewal, replacement or
refunding of Indebtedness permitted to be Incurred by this First Supplemental Indenture; provided,
however, that (a) the maximum principal amount of Refinancing Indebtedness (or, if such Refinancing
Indebtedness does not require cash payments prior to maturity or is otherwise issued at a discount,
the original issue price of such Refinancing Indebtedness) permitted may not exceed (i) the
principal amount of the Indebtedness being extended, renewed, replaced or refunded plus reasonable
financing fees and other associated reasonable out-of-pocket expenses and any prepayment premium,
penalty, consent fees and accrued interest (collectively, “Refinancing Fees”); or (ii) if such
Indebtedness being extended, renewed, replaced, or refunded was issued at an original issue
discount, the original issue price, plus amortization of the original issue discount to the time of
the Incurrence of the Refinancing Indebtedness plus Refinancing Fees, (b) except with respect to
Indebtedness Incurred to finance the acquisition, holding or development of real property and
related appurtenances and the construction of improvements thereon and Incurred in the ordinary
course of business and in compliance with the terms of this First Supplemental Indenture, the
Refinancing Indebtedness has a Weighted Average Life and a final maturity that is equal to or
greater than the Indebtedness being extended, renewed, replaced or refunded at the time of such
extension, renewal, replacement or refunding, (c) the Refinancing Indebtedness shall rank with
respect to the Notes to an extent no less favorable in respect thereof to the Holders than the
Indebtedness being refinanced, and (d) the Company may Incur Refinancing Indebtedness only to
refinance Indebtedness of the Company or a Subsidiary Guarantor, and a Subsidiary Guarantor may
Incur Refinancing Indebtedness only to refinance Indebtedness of the Company or a Subsidiary
Guarantor and a Restricted Subsidiary that is not a Subsidiary Guarantor may incur Refinancing

 

 

Indebtedness only to refinance Indebtedness of such Restricted Subsidiary or another
Restricted Subsidiary that is not a Subsidiary Guarantor.

     “Restricted Payment” means, with respect to any Person, (a) any dividend or other distribution
on shares of Capital Stock of the Company or any Restricted Subsidiary, (b) any payment on account
of the purchase, redemption or other acquisition or retirement for value, in whole or in part, of
any shares of Capital Stock of the Company or any Restricted Subsidiary, (c) any defeasance,
redemption, repurchase, or other acquisition or retirement for value, or any payment in respect of
any amendment (in anticipation of or in connection with any such retirement, acquisition, or
defeasance), in whole or in part, of any Indebtedness of the Company or a Restricted Subsidiary
that is subordinate in right of payment to the Notes, but only if such defeasance, redemption,
repurchase or other acquisition or retirement is made prior to the scheduled payment on such
Indebtedness and (d) any Investment (other than a Permitted Investment); provided, however, that
the term “Restricted Payment” does not include (i) any dividend, distribution, or other payment on
shares of Capital Stock of the Company or a Restricted Subsidiary solely in shares of Qualified
Capital Stock of the Company or such Restricted Subsidiary, (ii) any dividend, distribution, or
other payment to the Company or any of its Restricted Subsidiaries by any of its Subsidiaries,
(iii) the purchase, redemption or other acquisition or retirement for value of any shares of
Capital Stock of a Subsidiary owned by the Company, (iv) any defeasance, redemption, repurchase or
other acquisition or retirement for value, in whole or in part, of (A) Indebtedness of the Company
payable solely in shares of Capital Stock or Subordinated Indebtedness of the Company, (B)
Indebtedness or Disqualified Capital Stock of a Restricted Subsidiary payable solely in shares of
Capital Stock of the Company or such Restricted Subsidiary or Subordinated Indebtedness of the
Company, or (C) Indebtedness of the Company owed to Subsidiary Guarantors and Indebtedness of the
Company that is subordinated in right of payment to the Notes and owed to its Restricted
Subsidiaries that are not Subsidiary Guarantors, (v) any defeasance, redemption, repurchase, or
other acquisition or retirement for value, in whole or in part, of Subordinated Indebtedness of the
Company or a Restricted Subsidiary existing on the Issue Date or (vi) any proportionate payment in
respect of minority interests in Restricted Subsidiaries to the extent that the payment constitutes
a return of capital that was not included in the Company’s shareholders’ equity or a dividend or
similar distribution not included in determining the Company’s Consolidated Net Income.

     “Restricted Subsidiary” means each of the Subsidiaries of the Company which is not an
Unrestricted Subsidiary.

     “S&P” means Standard and Poor’s Ratings Group or any successor to its debt rating business.

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

     “Securities” has the meaning set forth in the Recitals.

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

     “Significant Subsidiary” means any Subsidiary of the Company which would constitute a
“significant subsidiary” as defined in Rule 1.02 of Regulation S-X under the Securities Act and the
Exchange Act.

     “Stated Maturity,” when used with respect to any Note, means June 1, 2005.

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

     “Subsidiary” of any Person means any corporation or other entity (other than political
subdivisions or enterprises thereof or governmental agencies) of which at least 50% of the Capital
Stock having ordinary voting power to elect the Board of Directors or other persons performing
similar functions is at the time directly or indirectly owned or controlled by such Person.

     “Subsidiary Guarantor” means NVR Homes, Inc. and any other Subsidiary of the Company that is
required to execute a Subsidiary Guarantee pursuant to this First Supplemental Indenture.

     “Subsidiary Guarantee” means the guarantee of the Notes by any Subsidiary Guarantor as set
forth in Exhibit B hereto.

 

 

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

     “Trustee” means the party named as such in the Base Indenture and this First Supplemental
Indenture until a successor replaces it pursuant to the Base Indenture and thereafter means the
successor serving under the Base Indenture and this First Supplemental Indenture.

     “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.

     “Unrestricted Subsidiary” means each of the Subsidiaries of the Company so designated by a
resolution adopted by the Board of Directors of the Company as provided below and whose creditors
have no direct or indirect recourse (including, without limitation, no recourse with respect to the
payment of principal or interest on Indebtedness of such Subsidiary) to the Company or a Restricted
Subsidiary. The Board of Directors of the Company may redesignate an Unrestricted Subsidiary to be
a Restricted Subsidiary; provided that (i) any such redesignation shall be deemed to be an
Incurrence by the Company and its Restricted Subsidiaries of the Indebtedness (if any) of such
redesignated Subsidiary for purposes of this First Supplemental Indenture as of the date of such
redesignation, and (ii) immediately after giving effect to such redesignation and the incurrence of
any such additional Indebtedness, the Company and its Restricted Subsidiaries could incur $1.00 of
additional Indebtedness pursuant to paragraph (b) of Section 5.02 hereof. Subject to the foregoing,
the Board of Directors of the Company also may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary; provided that (i) a Restricted Payment shall be deemed to be made at the
time of such designation and such designation shall reduce the Basket to the extent of the book
value (in accordance with GAAP) of the Company’s or a Restricted Subsidiary’s investment in the
Subsidiary being designated an Unrestricted Subsidiary (the “Designation Amount”), and (ii)
immediately after giving effect to such designation and reduction of the Basket, the Company and
its Restricted Subsidiaries could incur $1.00 of additional Indebtedness pursuant to paragraph (b)
of Section 5.02 hereof. Any such designation or redesignation by the Board of Directors of the
Company shall be evidenced to the Trustee by the filing with the Trustee a certified copy of the
resolution of the Board of Directors of the Company giving effect to such designation or
redesignation and an Officers’ Certificate certifying that such designation or redesignation
complied with the foregoing conditions and setting forth the underlying calculations of such
Officers’ Certificate.

     “Weighted Average Life” means, as of the date of determination, with respect to any debt
instrument, the quotient obtained by dividing (i) the sum of the products of the number of years
from the date of determination to the dates of each successive scheduled principal payment of such
debt instrument multiplied by the amount of such principal payment by (ii) the sum of all such
principal payments.

ARTICLE IV.

EVENTS OF DEFAULT

     Section 4.01. Events of Default. Pursuant to Section 301(15) of the Base Indenture, so long as
any Notes are outstanding, the Company covenants and agrees that “Event of Default,” wherever used
herein, means any one of the following events, which are applicable to the Notes instead of the
Events of Default specified in Section 501 of the Base Indenture:

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

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

     (c) failure by the Company or a Restricted Subsidiary, as the case may be, to comply with
Sections 5.01, 5.02, 5.04, 5.08, 5.09, 5.10 or Article VI hereof;

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

 

 

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

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

     (g) (i) the acceleration of any Indebtedness (other than Non-Recourse Indebtedness) of the
Company or any of its Restricted Subsidiaries (in accordance with the terms of such Indebtedness
and after giving effect to any applicable grace period set forth in the documents governing such
Indebtedness) that has an outstanding principal amount of $25,000,000 or more individually or in
the aggregate to be immediately due and payable; and (ii) the failure by the Company or any of its
Restricted Subsidiaries to make any principal, premium, interest or other required payment in
respect of Indebtedness (other than Non-Recourse Indebtedness) of the Company or any of its
Restricted Subsidiaries with an outstanding aggregate principal amount of $25,000,000 or more
individually or in the aggregate (after giving effect to any applicable grace period set forth in
the documents governing such Indebtedness);

     (h) one or more final nonappealable judgments (in the amount not covered by insurance or not
reserved for) or the issuance of any warrant of attachment against any portion of the property or
assets (except with respect to Non-Recourse Indebtedness) of the Company or any Restricted
Subsidiary, which are $10,000,000 or more individually or in the aggregate, at any one time
rendered against the Company or any of its Restricted Subsidiaries by a court of competent
jurisdiction and not bonded, satisfied or discharged for a period (during which execution shall not
be effectively stayed) of (i) 45 days after the judgment (which, if there is more than one
judgment, causes such judgments to exceed $10,000,000 in the aggregate) becomes final and such
court shall not have ordered or approved, and the parties shall not have agreed upon, the payment
of such judgment at a later date or dates or (ii) 60 days after all or any part of such judgment is
payable pursuant to any court order or agreement between the parties; and

     (i) any Subsidiary Guarantee of the Notes shall be held in a judicial proceeding to be
unenforceable or invalid or shall, except as permitted by this First Supplemental Indenture, cease
for any reason to be in full force and effect, or any Subsidiary Guarantor, or any Person acting on
behalf of a Subsidiary Guarantor, shall deny or disaffirm its obligations in respect of the Notes.

     Section 4.02. Acceleration of Maturity; Rescission and Annulment. The following shall replace
Section 502 of the Base Indenture in its entirety:

     If an Event of Default with respect to the Notes occurs and is continuing (other than an Event
of Default specified in sub-clauses (e) or (f) above relating to the Company), then in each such
case, unless the principal of all of the Notes shall have already become due and payable, either
the Trustee or the holders of 25% in aggregate principal amount of the Notes then outstanding, by
notice in writing to the Company (and to the Trustee if given by the Holders) (an “Acceleration
Notice”), may declare all principal, determined as set forth below, including in each case accrued
interest thereon, to be due and payable immediately. If an Event of Default specified in
sub-clauses (e) or (f) above occurs relating to the Company, all principal and accrued and unpaid
interest thereon shall be immediately due and payable on all outstanding Notes without any
declaration or other act on the part of the Trustee or the Holders. The Holders of a majority in
principal amount of the Notes then outstanding by written notice to the Trustee and the Company may
waive any Default or Event of Default (other than any Default or Event of Default in payment of
principal or interest) on the Notes under this First Supplemental Indenture. Holders of a majority
in principal amount of the then outstanding Notes may rescind an acceleration and its consequence
(except an acceleration due to nonpayment of principal or interest on the Notes) if the rescission
would not conflict with any judgment or decree and if all existing Events of Default (other than
the non-payment of accelerated principal) have been cured or waived.

 

 

ARTICLE V.

COVENANTS OF THE COMPANY

     Pursuant to Section 301(15) of the Base Indenture, so long as any of the Notes are
Outstanding, the Company covenants and agrees, in addition to the covenants and agreements
contained in Article Ten of the Base Indenture, as follows:

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

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

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

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

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

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

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

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

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

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

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

     (G) $50,000,000.

 

 

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

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

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

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

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

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

Section 5.02. Limitations on Indebtedness.

     (a) Neither the Company nor any of its Restricted Subsidiaries may, directly or indirectly,
Incur any Indebtedness except (i) Non-Recourse Indebtedness Incurred in the ordinary course of
business; (ii) Indebtedness evidenced by Notes and Subsidiary Guarantees issued on the Issue Date;
(iii) Indebtedness of the Company solely to any Subsidiary Guarantor, Indebtedness of any
Subsidiary Guarantor to any other Subsidiary Guarantor or to the Company or Indebtedness of any
Restricted Subsidiary that is not a Subsidiary Guarantor to the Company or to any Restricted
Subsidiary, provided that neither the Company nor any Restricted Subsidiary shall become liable to
any Person with respect to such Indebtedness other than the Company or a Restricted Subsidiary;
(iv) Refinancing Indebtedness (including any subsequent refinancing, extension, renewal,
replacement or refunding thereof that satisfies the conditions set forth in the definition of
“Refinancing Indebtedness”) (A) of any Indebtedness permitted to be Incurred pursuant to clauses
(ii) or (iv) of this paragraph (a) or the immediately following paragraph (b) or (B) of any
Indebtedness to the extent outstanding on the Issue Date (other than under the Bank Credit
Facility, the 1993 Notes or Capitalized Lease Obligations being repaid using proceeds from the sale
of the Notes); (v) Indebtedness Incurred solely in respect of performance, completion, guaranty and
similar bonds and similar purpose undertakings and Indebtedness under any earnest money notes,
tenders, bids, leases, statutory obligations, surety and appeal bonds, progress statements,
government contracts, letters of credit, escrow agreements and other obligations of like nature and
deposits made to secure performance of any of the foregoing, in each case in the ordinary course of
business; (vi) Indebtedness incurred by the Company or any Subsidiary Guarantor under the Bank
Credit Facility in an aggregate principal amount not to exceed $100,000,000 at any time, less the
aggregate amount of all proceeds of sales or dispositions of assets applied to permanently reduce
the outstanding amount (or, in the case of a revolving credit facility the committed amount) of
such Indebtedness pursuant to Section 5.04 hereof and guaranties thereof by Subsidiary Guarantors;
(vii) (A) Indebtedness which represents the assumption by the Company or a Restricted Subsidiary of
Indebtedness of a Restricted Subsidiary permitted to be Incurred pursuant to the terms of this
First Supplemental Indenture, and (B) Indebtedness of a Subsidiary Guarantor represented by
guaranties in respect of Indebtedness of the Company or another Subsidiary Guarantor permitted to
be Incurred pursuant to this First Supplemental Indenture and (C) Indebtedness of the Company
represented by guaranties in respect of Indebtedness of a Subsidiary Guarantor permitted to be
Incurred pursuant to this First Supplemental Indenture; (viii) other Indebtedness outstanding on
the Issue Date, including the 1993 Notes; (ix) purchase money obligations and Capitalized Lease
Obligations; and (x) Indebtedness of the Company or any Subsidiary Guarantor to any Unrestricted
Subsidiary or any Restricted Subsidiary that is not a Subsidiary Guarantor in an aggregate amount
not to exceed $20,000,000 at any one time outstanding.

     (b) Notwithstanding the foregoing, the Company and its Restricted Subsidiaries that are
Subsidiary Guarantors may Incur Indebtedness, in each case, if, at the time such Indebtedness is
Incurred: (i) no Default or Event of Default shall have occurred and be continuing or would occur
after giving effect to such transaction, and (ii) immediately after giving effect thereto (without
duplication) on a pro forma basis, either (A) the Consolidated Fixed Charge Coverage Ratio of the
Company on the date of such Incurrence is at least equal to 2.0 to 1 or (B) the ratio of
Indebtedness of the Company and its Restricted Subsidiaries on a consolidated basis on the date of
such Incurrence (excluding for purposes of such calculation other Indebtedness specifically
permitted to be Incurred pursuant to clause (i) or clause (v) of the preceding paragraph), to
Consolidated Net Worth of the Company is less than 3.25 to 1.

          Neither the Company nor any Restricted Subsidiary shall incur any Indebtedness that is
contractually subordinated in right of payment to any other Indebtedness of the Company or such
Restricted Subsidiary unless such Indebtedness is also contractually subordinated in right of
payment to the Notes on substantially identical terms; provided, however, that no Indebtedness of
the Company or a Restricted Subsidiary shall be deemed to be contractually subordinated in right of
payment to any other Indebtedness of the Company solely by virtue of being unsecured.

          Furthermore, for purposes of determining compliance with this covenant in the event that an
item of proposed Indebtedness meets the criteria of more than one of the categories described in
clauses (i) through (x) of paragraph (a) above as of the date of incurrence thereof, or is entitled
to be Incurred pursuant to paragraph (b) of this covenant as of the date of incurrence thereof, the
Company shall, in its sole discretion, classify such item of Indebtedness on the date of its
Incurrence in any manner that complies with this covenant.

 

 

          Section 5.03. Limitations on Transactions with Affiliates. Until the Notes are rated
Investment Grade by both Rating Agencies, after which time the following covenant no longer shall
be binding on the Company or any Restricted Subsidiary:

     (a) Neither the Company nor any of its Restricted Subsidiaries may, directly or indirectly,
make any loan, advance, guaranty or capital contribution to or for the benefit of, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or for the benefit of, or
purchase or lease any property or assets from, or enter into or amend any contract, agreement or
understanding with, or for the benefit of any Affiliate (each an “Affiliate Transaction”), except
for (i) Restricted Payments otherwise permitted under this First Supplemental Indenture, and (ii)
transactions, the terms of which are at least as favorable as the terms which could be obtained by
the Company or such Restricted Subsidiary, as the case may be, in a comparable transaction made on
an arm’s-length basis with Persons who are not Affiliates.

     (b) In addition, (i) with respect to any Affiliate Transaction or series of related Affiliate
Transactions with an aggregate value in excess of $5,000,000, such transaction must first be
approved by a majority of the Disinterested Directors and (ii) with respect to any Affiliate
Transaction or related series of Affiliate Transactions with an aggregate value in excess of
$25,000,000, the Company must first deliver to the Trustee a favorable written opinion from an
investment banking firm of national reputation as to the fairness from a financial point of view of
such transaction to the Company or such Restricted Subsidiary, as the case may be, or with respect
to transactions involving real property, a determination of value by a licensed real estate
appraisal firm that is of regional standing in the region in which the subject property is located
and which has professionals that are MAI certified.

     (c) Notwithstanding the foregoing, Affiliate Transactions shall not include (i) transactions
exclusively between or among the Company and one or more Restricted Subsidiaries or between or
among one or more Restricted Subsidiaries, (ii) any contract, agreement or understanding with, or
for the benefit of, or planned for the benefit of, employees, officers or directors of the Company
or any Restricted Subsidiary (in their capacity as such) that has been approved by the Board of
Directors (or a committee thereof) or is in the ordinary course of business and consistent with
past practice, (iii) issuances of Qualified Capital Stock of the Company to members of the Board of
Directors, officers and employees of the Company or its Subsidiaries pursuant to plans approved by
the stockholders or the Board of Directors (or a committee thereof) or is in the ordinary course of
business and consistent with past practice of the Company, (iv) home sales and readily marketable
mortgage loans to employees, officers and directors of the Company and Subsidiaries in the ordinary
course of business, (v) payment of regular fees and reimbursement of expenses to members of the
Board of Directors who are not employees of the Company and reimbursement of expenses and payment
of wages and other compensation to officers and employees of the Company or any of its Subsidiaries
or loans or advances in respect thereof, (vi) contractual arrangements in effect on the Issue Date
and renewals and extensions thereof not involving modifications materially adverse to the Company
or any Restricted Subsidiary, (vii) Restricted Payments or Permitted Investments otherwise made in
compliance with this First Supplemental Indenture or (viii) the advancement of general and
administrative expenses of the Company and its Subsidiaries that are reimbursed in the ordinary
course of business.

          Section 5.04. Limitations on Asset Sales. Subject to Article VI hereof and until the Notes are
rated Investment Grade by both Rating Agencies, after which time the following covenant no longer
shall be binding on the Company, neither the Company nor any Restricted Subsidiary may, directly or
indirectly, consummate an Asset Sale, unless the Company (or such Restricted Subsidiary, as the
case may be) receives consideration at the time of such Asset Sale at least equal to the fair
market value (reasonably evidenced by a good faith resolution of the Board of Directors or the
board of directors or comparable governing body of such Restricted Subsidiary, whose resolution
shall be conclusive) of the assets sold or otherwise disposed of, provided that the aggregate fair
market value of the consideration received from any Asset Sale that is not in the form of cash or
Cash Equivalents shall not, when aggregated with the fair market value of all other noncash
consideration received by the Company and its Restricted Subsidiaries from all previous Asset Sales
since the Issue Date that has not been converted into cash or Cash Equivalents, exceed 10% of the
Consolidated Net Assets of the Company at the time of the Asset Sale under consideration; and,
provided, further, however, that the amount of (x) any liabilities of the Company or any Restricted
Subsidiary (other than liabilities that are Incurred in connection with or in contemplation of such
Asset Sale) that are assumed by the transferee of any such assets and (y) any notes or other
obligations received by the Company or any such Restricted Subsidiary from such transferee that are
promptly converted by the Company or such Restricted Subsidiary into cash, shall be deemed to be
cash (to the extent of the cash received) for purposes of this provision.

          Within 180 days after the receipt of any Net Cash Proceeds from an Asset Sale, the Company may
apply such Net Cash Proceeds in its sole discretion (a) to permanently repay Indebtedness under the
Bank Credit Facility (and to permanently reduce the commitment thereunder for purposes of clause
(a)(vi) of Section 5.02 hereof) or (b) to acquire all or substantially all of the assets of, or
Capital Stock representing a majority of the voting power in the election of directors or other
governing body of, another Permitted Business, (c) to make a capital expenditure or (d) to acquire
other assets not classified as current under GAAP that are used or useful in a Permitted Business.
Pending the final application of any such Net Cash Proceeds, the Company may temporarily reduce
revolving credit borrowings or otherwise invest such Net Cash Proceeds in any manner that is not
prohibited by this First Supplemental Indenture. Any Net Cash Proceeds from Asset Sales that are
not applied or invested as provided in the first sentence of this paragraph shall be deemed to
constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $10,000,000, the
Company shall be required to make an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in

 

 

this First Supplemental Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets (an “Asset Sale Offer”) to purchase the maximum principal amount of
Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds, at
an offer price for the Notes in cash in an amount equal to 100% of the principal amount thereof
plus accrued and unpaid interest thereon, if any, to the date of purchase, in accordance with the
procedures set forth in this First Supplemental Indenture and such other pari passu Indebtedness.
To the extent that any Excess Proceeds remain after consummation of an Asset Sale Offer, the
Company may use such Excess Proceeds for any purpose not otherwise prohibited by this First
Supplemental Indenture. If the aggregate principal amount of Notes and such other pari passu
Indebtedness tendered into such Asset Sale Offer surrendered by Holders thereof exceeds the amount
of Excess Proceeds, the Trustee shall select the Notes and such other pari passu Indebtedness to be
purchased on a pro rata basis. Upon completion of such offer to purchase (and without regard to
whether all Excess Proceeds are used therefor), the amount of Excess Proceeds shall be reset at
zero.

          Any Asset Sale Offer shall be conducted by the Company in compliance with applicable law,
including, without limitation, Section 14(e) of the Exchange Act and Rule 14e-1 thereunder, if
applicable.

          Section 5.05. Limitations on Restrictions Affecting Restricted Subsidiaries. The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or restriction on the
ability of any Restricted Subsidiary to (a)(i) pay dividends or make any other distributions to the
Company or any of its Restricted Subsidiaries on its Capital Stock or with respect to any other
interest or participation in, or measured by, its profits, or (ii) pay any Indebtedness owed to the
Company or any of its Restricted Subsidiaries, (b) make loans or advances to the Company or any of
is Restricted Subsidiaries, (c) transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries, or (d) guarantee the Notes or any
Indebtedness issued in exchange for, or the proceeds of which are used to extend, refinance, renew,
replace, or refund the Notes, except for such encumbrances or restrictions described in (a) through
(d) above existing under or by reasons of (i) Existing Indebtedness as in effect on the date of
this First Supplemental Indenture, (ii) applicable law or regulation, (iii) any instrument
governing Acquired Indebtedness as in effect at the time of acquisition, which encumbrance or
restriction is not applicable to any person, or the properties or assets of any person, other than
the person, or the properties or assets of the person, so acquired, provided that the Consolidated
Net Income of such person shall not be taken into account in determining whether such acquisition
was permitted by the terms of this First Supplemental Indenture, (iv) by reason of customary
non-assignment provisions or prohibitions on subletting in leases or other contracts entered into
in the ordinary course of business, (v) Refinancing Indebtedness permitted under clause (iv) of
paragraph (a) of Section 5.02 hereof, provided that the restrictions contained in the agreements
governing such Refinancing Indebtedness are no more restrictive than those contained in the
agreements governing the Indebtedness being refinanced, or (vi) with respect to clause (c) above,
(A) purchase money obligations, Non-Recourse Indebtedness and Capital Lease Obligations for
property acquired or leased in the ordinary course of business, (B) any agreement restricting the
sale or other disposition of properties securing Indebtedness permitted by this First Supplemental
Indenture if such agreement does not expressly restrict the ability of a Restricted Subsidiary to
pay dividends or make loans or advances to the Company, (C) restrictions or encumbrances contained
in any security agreements permitted by this First Supplemental Indenture securing Indebtedness
permitted by this First Supplemental Indenture to the extent that such restrictions or encumbrances
restrict the transfer of assets (or proceeds thereof) subject to such security agreement, or (D)
any restrictions or encumbrances with respect to a Restricted Subsidiary imposed pursuant to an
agreement which has been entered into for the sale or disposition of the Capital Stock or assets of
such Restricted Subsidiary or such an agreement which has been entered into for the sale or
disposition of assets of the Company to the extent otherwise permitted by this First Supplemental
Indenture, including in connection with any Asset Sale, as applicable only to such assets or
Capital Stock to be sold, or (vii) customary agreements entered into in the ordinary course of
business restricting the ability of a joint venture to make distributions or payments of cash or
property to participants in such joint venture.

          Section 5.06. Limitations on Liens. The Company may not and may not permit any Restricted
Subsidiary to Incur, or suffer to exist any Lien (other than Permitted Liens) upon any of its
property or assets, whether now owned or hereafter acquired.

          Section 5.07. Payments for Consent. Neither the Company nor any of its Subsidiaries shall,
directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee
or otherwise, to any Holder of

 

 

the Notes for or as an inducement to any consent, waiver or amendment of any terms or
provisions of this First Supplemental Indenture or the Notes unless such consideration is offered
and paid to all Holders of the Notes that so consent, waive or agree to amend in the time frame set
forth in the solicitation documents relating to such consent, waiver or agreement.

          Section 5.08. Guarantees of Certain Indebtedness. The Company shall not permit any of its
Restricted Subsidiaries other than the Subsidiary Guarantors, directly or indirectly, to guarantee the payment of any Indebtedness under the Bank Credit Facility, any other
credit facility, or any other Indebtedness of the Company or any other Restricted Subsidiary,
unless such Restricted Subsidiary, the Company and the Trustee execute and deliver a supplemental
indenture evidencing a Subsidiary Guarantee of the Notes. Neither the Company nor any Subsidiary
Guarantor shall be required to make a notation on the Notes to reflect any such subsequent
Subsidiary Guarantee. Nothing in this covenant shall be construed to permit any Restricted
Subsidiary of the Company to incur Indebtedness otherwise prohibited by Section 5.02 hereof.

          Section 5.09. Maintenance of Consolidated Net Worth. The Company is required to furnish to the
Trustee an Officers’ Certificate within 55 days after the end of any fiscal quarter (100 days after
the end of any fiscal year) notifying the Trustee that the Company’s Consolidated Net Worth has
declined below $80.0 million (the “Minimum Required Net Worth”) at the end of any fiscal quarter in
which the Company’s Consolidated Net Worth has so declined. If, on the last day of each of any two
consecutive fiscal quarters (the last day of the second fiscal quarter being referred to herein as
a “Deficiency Date”), the Company’s Consolidated Net Worth is less than the Minimum Required Net
Worth, then the Company is required, no later than 65 days after each such Deficiency Date (110
days if such Deficiency Date is the last day of the Company’s fiscal year), to make an offer to all
Holders of Notes to purchase (a “Purchase Offer”) 10% of the aggregate principal amount of the
Notes theretofore issued under this First Supplemental Indenture (the “Offer Amount”) at a purchase
price equal to 100% of the principal amount of the Notes, plus accrued interest to the date of
purchase. The Purchase Offer is required to remain open for a period of 20 Business Days following
its commencement, except to the extent otherwise permitted by applicable law (as extended, the
“Offer Period”) and the Company is required to purchase the Offer Amount of the Notes on a
designated date no later than one Business Day after the termination of the Offer Period, or if
less than the Offer Amount of Notes shall have been tendered, all Notes then tendered; provided,
however, that the Company shall not be obligated to purchase any of such Notes unless Holders of
Notes of at least 10% of the Offer Amount shall have tendered and not subsequently withdrawn their
Notes for repurchase. If the aggregate principal amount of Notes tendered exceeds the Offer Amount,
the Company is required to purchase the Notes tendered to it pro rata among the Notes tendered
(with such adjustments as may be appropriate so that only Notes in denominations of $1,000 and
integral multiples thereof shall be purchased). The Company shall comply with all applicable
federal and state securities laws in connection with each Purchase Offer. In no event shall the
failure of the Company’s Consolidated Net Worth to equal or exceed the Minimum Required Net Worth
at the end of the fiscal quarter be counted toward the making of more than one Purchase Offer. The
Company may reduce the principal amount of Notes to be purchased pursuant to the Purchase Offer by
subtracting 100% of the principal amount (excluding premium) of Notes acquired by the Company
subsequent to the Deficiency Date through purchase (otherwise than pursuant to this Section 5.09 or
Section 5.04 or Section 5.10 hereof), optional redemption or exchange and surrender for
cancellation.

          Section 5.10. Repurchase of Notes Upon Change of Control. In the event that a Change of
Control has occurred, each Holder shall have the right, at such Holder’s option, subject to the
terms and conditions of this First Supplemental Indenture, to require the Company to repurchase all
or any part of such Holder’s Notes (provided that the principal amount of such Notes must be $1,000 or an integral multiple thereof) on the date that is no later than 60 Business
Days (unless a later date is required by applicable law) after the occurrence of such Change of
Control (the “Change of Control Payment Date”), at a cash price equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, if any (the “Change of Control Purchase Price”),
to the Change of Control Payment Date.

          The Company shall notify the Trustee within ten Business Days after the Company becomes aware
of the occurrence of a Change of Control. Within 20 Business Days after the occurrence of a Change
of Control, the Company shall make an unconditional offer (a “Change of Control Offer”) to all
Holders of Notes to purchase all of

 

 

the Notes at the Change of Control Purchase Price by sending written notice of a Change of
Control Offer, by first class mail, to each Holder at its registered address, with a copy to the
Trustee.

          On or before the Change of Control Payment Date, the Company shall (i) accept for payment
Notes or portions thereof properly tendered pursuant to the Change of Control Offer, (ii) deposit
with the Paying Agent U.S. Legal Tender sufficient to pay the Change of Control Purchase Price
(together with accrued and unpaid interest) of all Notes so tendered and (iii) deliver to the
Trustee Notes so accepted together with an Officers’ Certificate listing the Notes or portions
thereof being purchased by the Company. The Paying Agent shall promptly mail to the Holders of
Notes so accepted payment in an amount equal to the Change of Control Purchase Price (together with
accrued and unpaid interest), and the Trustee shall promptly authenticate and mail or deliver to
such Holders a new Note equal in principal amount to any unpurchased portion of the Note
surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the
Holder thereof. The Company shall publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Change of Control Payment Date.

          The Change of Control purchase feature of the Notes may make more difficult or discourage a
takeover of the Company, and, thus, the removal of incumbent management. To the extent applicable
and if required by law, the Company shall comply with Section 14 of the Exchange Act and the
provisions of Regulation 14E and any other tender offer rules under the Exchange Act and other
securities laws, rules and regulations which may then be applicable to any offer by the Company to
purchase the Notes at the option of Holders upon a Change of Control.

          Section 5.11. Use of Certain Proceeds. The Company shall commence a tender offer to repurchase
the remaining 1993 Notes as promptly as practicable following the Issue Date. The Company shall
redeem all remaining untendered outstanding 1993 Notes in December 1998 at a purchase price of
105.5% of the principal amount thereof in accordance with the terms of the indenture governing the
1993 Notes, and shall maintain, at all times prior to completion of such redemption, Investments in
Cash Equivalents at least equal to the lesser of (i) $80.0 million, and (ii) the outstanding
principal amount of 1993 Notes not theretofore redeemed or repurchased. In addition, the Company
shall, as promptly as practicable, deposit in escrow with an escrow agent that is not an Affiliate
of the Company, $12,000,000 pending the Company’s use of such funds to exercise its purchase option
under that certain Lease Agreement dated May 15, 1989 by and among Corporate Property Associates 9,
L.P., as landlord and NVHomes L.P., Ryan Operations G.P. and Ryan Homes, Inc., as amended, or as
otherwise permitted in accordance with the terms of the escrow agreement. The Company shall use its
commercially reasonable efforts to effect such purchase option in accordance with its terms.

ARTICLE VI.

MERGER, CONSOLIDATION OR SALE OF ASSETS

     Pursuant to Section 301(15) of the Base Indenture, so long as any of the Notes are
outstanding, the following provision shall replace Section 801 of the Base Indenture for purposes
of the Notes:

     (a) The Company shall not consolidate with or merge with or into, any other Person, or
transfer all or substantially all of its assets to, any entity unless permitted by law and unless
(i) the resulting, surviving or transferee entity, which shall be a corporation, partnership,
limited liability company or other entity organized and existing under the laws of the United
States or a State thereof or the District of Columbia, assumes by supplemental indenture, in a form
reasonably satisfactory to the Trustee, all of the obligations of the Company under the Notes and
this First Supplemental Indenture, (ii) immediately after giving effect to, and as a result of,
such transaction, no Default or Event of Default shall have occurred and be continuing, (iii)
immediately after giving effect to such transaction on a pro forma basis, the net worth of the
surviving or transferee entity on a stand-alone basis is at least equal to the Consolidated Net
Worth of the Company immediately prior to such transaction; and (iv) the Company or the surviving
or transferee entity thereof would immediately thereafter be permitted to Incur at least $1.00 of
additional Indebtedness pursuant to the provisions described in paragraph (b) under Section 5.02
hereof. The provisions of clause (iii) or clause (iv) above shall not apply to a transaction or
series of related transactions in which the sole participants are Restricted Subsidiaries of the
Company or to a transaction between the Company and one or more of its Restricted Subsidiaries,
subject to any limitations on mergers involving Subsidiary Guarantors.

     (b) For purposes of clause (a), the sale, lease, conveyance, assignment, transfer, or other
disposition of all or substantially all of the properties and assets of one or more Subsidiaries of
the Company, which properties and assets, if held by the Company instead of such Subsidiaries,
would constitute all or substantially all of the properties and assets of the Company, on a
consolidated basis, shall be deemed to be the transfer of all or substantially all of

 

 

the properties and assets of the Company. Thereafter such successor corporation or
corporations shall succeed to and be substituted for the Company with the same effect as if it had
been named herein as the “Company” and all such obligations of the predecessor corporation shall
terminate.

ARTICLE VII.

REDEMPTION

          The Notes shall be redeemable at the option of the Company, in whole or in part, at any time
on or after June 1, 2003, at the redemption prices (expressed as a percentage of principal amount)
set forth below, plus accrued and unpaid interest thereon, if any, to the redemption date, if
redeemed during the 12-month period beginning on June 1 of the years indicated below:

	 	 	 	 	 
	Redemption Year	 	Price
	2003

	 	 	104.000	 
	2004

	 	 	102.000	 
	2005

	 	 	100.000	 

          In addition, prior to June 1, 2001, the Company may redeem up to 35% of the aggregate
principal amount of the Notes issued under this First Supplemental Indenture at a redemption price
equal to 108% of the principal amount of the Notes so redeemed, plus accrued and unpaid interest
thereon, if any, to the redemption date with the net cash proceeds of one or more Public Equity
Offerings; provided, however, that (x) at least $113,750,000 aggregate principal amount of all
Notes issued under the Indenture remains outstanding immediately after giving effect to any such
redemption (excluding any Notes held by the Company) and (y) notice of any such redemption is given
within 60 days of the applicable Public Equity Offering.

          Selection of the Notes or portions thereof for redemption pursuant to the foregoing shall be
made by the Trustee pro rata or by lot. Notice of redemption shall be mailed via courier
guaranteeing overnight delivery at least 30 days but not more than 60 days before the redemption
date to each Holder whose Notes are to be redeemed at the registered address of such Holder. On and
after the redemption date, interest shall cease to accrue on the Notes or portions thereof called
for redemption.

ARTICLE VIII.

GUARANTEES

          Pursuant to Section 301(23) of the Base Indenture, and until the 91st day after the Notes have
been paid in full, the following provisions shall be a part of this First Supplemental Indenture.

          Section 8.01. Unconditional Subsidiary Guarantee. Each Subsidiary Guarantor hereby
unconditionally, jointly and severally, guarantees (such guarantee to be referred to herein as the
“Subsidiary Guarantee”) to each Holder of a Note authenticated and delivered by the Trustee and to
the Trustee and its successors and assigns, irrespective of the validity and enforceability of this
First Supplemental Indenture, the Notes or the obligations of the Company hereunder or thereunder,
that: (i) the principal of, interest and premium, if any, on the Notes will be promptly paid in
full when due, subject to any applicable grace period, whether at stated maturity, by acceleration
or otherwise and interest on the overdue principal of, and interest on any interest, to the extent
lawful, and premium, if any, on the Notes and all other obligations of the Company to the Holders
or the Trustee hereunder or thereunder will be promptly paid in full, all in accordance with the
terms hereof and thereof; and (ii) in case of any extension of time of payment or renewal of any
Notes or of any such other obligations, the same will be promptly paid in full when due in
accordance with the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in the case of clauses
(i) and (ii) above, to the limitations set forth in Section 8.04. Each Subsidiary Guarantor hereby
agrees that its obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this First Supplemental

 

 

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, the recovery of any judgment against
the Company, any action to enforce the same or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of a guarantor (other than indefeasable
payment in full of the Notes). Each Subsidiary Guarantor hereby waives diligence, presentment,
demand for 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 this Subsidiary Guarantee will not be discharged except by
complete performance of the obligations contained in the Notes, this First Supplemental Indenture
and in the Subsidiary Guarantee. If any Holder or the Trustee is required by any court or otherwise
to return to the Company, any Subsidiary Guarantor, or any Custodian, trustee, liquidator or other
similar official acting in relation to the Company or any Subsidiary Guarantor, any amount paid by
the Company or any Subsidiary Guarantor to the Trustee or such Holder, this Subsidiary Guarantee,
to the extent theretofore discharged, shall be reinstated in full force and effect as to such
amount only. Each Subsidiary Guarantor further agrees that, as between each Subsidiary Guarantor,
on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in this First Supplemental Indenture
for the purposes of this Subsidiary Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y)
in the event of any acceleration of such obligations as provided in this First Supplemental
Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable
by each Subsidiary Guarantor for the purpose of the Subsidiary Guarantee.

          Section 8.02. Release of a Subsidiary Guarantor. Upon (i) a sale or other disposition of all
or substantially all of the assets of any Subsidiary Guarantor, by way of merger, consolidation or
otherwise, or (ii) a sale, distribution or other disposition of all of the capital stock of any
Subsidiary Guarantor, including, without limitation, a distribution of all of the capital stock of
any Subsidiary Guarantor to stockholders of the Company in a transaction that complies with Section
5.01 hereof, such Subsidiary Guarantor (in the event of a sale or other disposition, by way of such
a merger, consolidation, distribution or otherwise, of all of the capital stock of such Subsidiary
Guarantor) or the Person acquiring the property (in the event of a sale or disposition of all or
substantially all of the assets of such Subsidiary Guarantor) will be released and relieved of any
obligations under its Subsidiary Guarantee; provided that the Net Cash Proceeds of such sale or
other disposition are applied in accordance with the provisions of Section 5.04 hereof.

          Section 8.03. Limitation of Subsidiary Guarantor’s Liability. Each Subsidiary Guarantor and by
its acceptance hereof each Holder hereby confirms that it is the intention of all such parties that
the guarantee by such Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or state law. To
effectuate the foregoing intention, the Holders and such Subsidiary Guarantor hereby irrevocably
agree that the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee shall be
limited to the maximum amount as will, after giving effect to all other contingent and fixed
liabilities of such Subsidiary Guarantor and after giving effect to any collections from or
payments made by or on behalf of any other Subsidiary Guarantor in respect of the obligations of
such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to Section 8.05, result
in the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting
such fraudulent transfer or conveyance.

          Section 8.04. Subsidiary Guarantors May Consolidate, Etc. on Certain Terms. No Subsidiary
Guarantor may consolidate with or merge with or into (whether or not such Subsidiary Guarantor is
the surviving Person) another corporation, Person or entity (other than the Company or another
Subsidiary Guarantor), unless (i) subject to the provisions of Section 8.02 hereof, the Person
formed by or surviving any such consolidation or merger (if other than the Subsidiary Guarantor)
assumes all of the obligations of such Subsidiary Guarantor under the Notes (including the
Subsidiary Guarantee) and this First Supplemental Indenture pursuant to a supplemental indenture,
in form and substance reasonably satisfactory to the Trustee, together with an Officers’
Certificate of the Company and an Opinion of Counsel stating that the transaction and such
supplemental indenture comply with this First Supplemental Indenture (provided that this
requirement will not apply to a substantially concurrent merger involving the Company, Homes and
NVR Financial Services, Inc.), and (ii) immediately after giving effect to such transaction, no
Default or Event of Default exists.

          Section 8.05. Contribution. In order to provide for just and equitable contribution among the
Subsidiary Guarantors, the Subsidiary Guarantors agree, inter se, that in the event any payment or
distribution is

 

 

made by any Subsidiary Guarantor (a “Funding Subsidiary Guarantor”) under this Subsidiary
Guarantee, such Funding Subsidiary Guarantor shall be entitled to a contribution from all other
Subsidiary Guarantors in a pro rata amount based on the Adjusted Net Assets of each Subsidiary
Guarantor (including the Funding Subsidiary Guarantor) for all payments, damages and expenses
incurred by that Funding Subsidiary Guarantor in discharging the Company’s obligations with respect
to the Notes or any other Subsidiary Guarantor’s obligations with respect to this Subsidiary
Guarantee.

          Section 8.06. Waiver of Subrogation. Until the Notes are paid in full, each Subsidiary
Guarantor hereby irrevocably waives 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 such
Subsidiary Guarantor’s obligations under this Subsidiary Guarantee and this First Supplemental
Indenture, including, without limitation, any right of subrogation, reimbursement, exoneration,
indemnification, and any right to participate in any claim or remedy of any Holder of Notes 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 setoff or in any other manner,
payment or security on account of such claim or other rights. If any amount shall be paid to any
Subsidiary Guarantor in violation of the preceding sentence and the Notes shall not have been paid
in full, such amount shall have been deemed to have been paid to such Subsidiary Guarantor for the
benefit of, and held in trust for the benefit of, the Holders of the Notes, and shall forthwith be
paid to the Trustee for the benefit of such Holders to be credited and applied upon the Notes,
whether matured or unmatured, in accordance with the terms of this First Supplemental Indenture.
Each Subsidiary Guarantor acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this First Supplemental Indenture and that the waiver set
forth in this Section 8.06 is knowingly made in contemplation of such benefits.

          Section 8.07. Execution of Subsidiary Guarantee. To evidence their guarantee to the Holders
specified in Section 8.01, the Subsidiary Guarantors hereby agree to execute the Subsidiary
Guarantee in substantially the form of Exhibit B recited to be endorsed on each Note ordered to be
authenticated and delivered by the Trustee. Each Subsidiary Guarantor hereby agrees that its
guarantee set forth in Section 8.01 shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Subsidiary Guarantee. Each such Subsidiary
Guarantee shall be signed on behalf of each Subsidiary Guarantor by one Officer (who shall have
been duly authorized by all requisite corporate actions) prior to the authentication of the Note on
which it is endorsed, and the delivery of such Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of such Subsidiary Guarantee on behalf of such
Subsidiary Guarantor. Such signatures upon the Subsidiary Guarantee may be by manual or facsimile
signature of such duly authorized Officer and may be imprinted or otherwise reproduced on the
Subsidiary Guarantee, and in case any such Officer who shall have signed the Subsidiary Guarantee
shall cease to be such Officer before the Note on which such Subsidiary Guarantee is endorsed shall
have been authenticated and delivered by the Trustee or disposed of by the Company, such Note
nevertheless may be authenticated and delivered or disposed of as though the person who signed the
Subsidiary Guarantee had not ceased to be such Officer of the Subsidiary Guarantor.

          Section 8.08. Obligations of Each Subsidiary Guarantor Unconditional. Nothing contained in
this Article VIII or elsewhere in this First Supplemental Indenture or in the Notes or the
Subsidiary Guarantees is intended to or shall impair, as among any Subsidiary Guarantor, its
creditors, and the Holders of the Notes, the obligation of such Subsidiary Guarantor, which is
absolute and unconditional, to pay to the Holders of the Notes the principal of and any interest on
the Notes as and when the same shall become due and payable in accordance with the terms of the
Subsidiary Guarantees, or is intended to or shall affect the relative rights of the Holders of the
Notes and creditors of any Subsidiary Guarantor, nor shall anything herein or therein prevent the
Holder of any Note or the Trustee on its behalf from exercising all remedies otherwise permitted by
applicable law upon default under this First Supplemental Indenture, subject to the rights, if any,
in respect of cash, property or securities of any Subsidiary Guarantor received upon the exercise
of such remedy.

          Section 8.09. Notice to Trustee. The Company or any Subsidiary Guarantor shall give prompt
written notice to the Trustee of any fact known to the Company or any such Subsidiary Guarantor
which would prohibit the making of any payment to or by the Trustee in respect of the Subsidiary
Guarantees pursuant to the provisions of this Article VIII. Regardless of anything to the contrary
contained in this Article VIII or elsewhere in this First Supplemental Indenture, the Trustee shall
not be charged with knowledge of the existence of any Default or Event of Default with respect to
any facts which would prohibit the making of any payment to or by the Trustee unless and

 

 

until a Responsible Officer of the Trustee shall have received notice in writing from the
Company or a Subsidiary Guarantor, and, prior to receipt of any such written notice, the Trustee
shall be entitled to assume (in the absence of actual knowledge of a Responsible Officer to the
contrary) that no such facts exist.

          Section 8.10. Reliance on Judicial Order or Certificate of Liquidating Agent. Upon any payment
or distribution of assets of any Subsidiary Guarantor referred to in this Article VIII, the
Trustee, subject to the provisions of this First Supplemental Indenture, and the Holders shall be
entitled to rely upon any order or decree made by any court of competent jurisdiction in which
bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or upon
certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution, delivered to the Trustee or the Holders, for the purpose of
ascertaining the persons entitled to participate in such distribution, the amount thereof or
payable thereon, the amount or amounts paid or distribution thereon and all other facts pertinent
thereto or to this Article VIII.

ARTICLE IX

OFFER TO REPURCHASE PURSUANT TO SECTION 5.04 OR 5.09 HEREOF

     In the event that, pursuant to Section 5.04 or Section 5.09 hereof, the Company shall be
required to commence an Asset Sale Offer or a Purchase Offer (a “Repurchase Offer”), it shall
follow the procedures specified below.

     The Repurchase Offer shall remain open for a period of 20 Business Days following its
commencement and no longer, except to the extent that a longer period is required by applicable law
(as extended, the “Offer Period”). No later than one Business Day after the termination of the
Offer Period (the “Purchase Date”), the Company shall purchase the principal amount of Notes
required to be purchased pursuant to Section 5.04 or Section 5.09 hereof (the “Offer Amount”) or,
subject to the terms of Section 5.09 (if such repurchase is pursuant to Section 5.09 hereof), if
less than the Offer Amount has been tendered, all Notes tendered in response to the Repurchase
Offer. Payment for any Notes so purchased shall be made in the same manner as interest payments are
made.

     If the Purchase Date is on or after an interest payment record date and on or before the
related interest payment date, any accrued and unpaid interest shall be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no additional interest
shall be payable to Holders who tender Notes pursuant to the Repurchase Offer.

     Upon the commencement of a Repurchase Offer, the Company shall send, by first class mail, a
notice to the Trustee and each of the Holders. The notice shall contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the Repurchase Offer. The
Repurchase Offer shall be made to all Holders. The notice, which shall govern the terms of the
Repurchase Offer, shall state:

     (a) that the Repurchase Offer is being made pursuant to this Article IX and, as applicable,
Section 5.04 or Section 5.09 hereof and the length of time the Repurchase Offer shall remain open;

     (b) the Offer Amount, the purchase price and the Purchase Date and in the case of a Repurchase
Offer being made pursuant to Section 5.09 hereof that the Company shall not be obligated to
purchase any of such Notes unless Holders of Notes of at least 10% of the Offer Amount shall have
tendered and not subsequently withdrawn their Notes for repurchase;

     (c) that any Note not tendered or accepted for payment shall continue to accrue interest;

     (d) that, unless the Company defaults in making such payment, any Note accepted for payment
pursuant to the Repurchase Offer shall cease to accrue interest after the Purchase Date;

     (e) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may only
elect to have all of such Note purchased and may not elect to have only a portion of such Note
purchased;

     (f) that Holders electing to have a Note purchased pursuant to any Repurchase Offer shall be
required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, or transfer by book-entry transfer, to the Company, a depositary, if
appointed by the Company, or a Paying Agent at the address specified in the notice at least three
days before the Purchase Date;

 

 

     (g) that Holders shall be entitled to withdraw their election if the Company, the depositary
or the Paying Agent, as the case may be, receives, not later than the expiration of the Offer
Period, a telegram, facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Note the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased;

     (h) that, if the aggregate principal amount of Notes surrendered by Holders exceeds the Offer
Amount, the Company shall select the Notes to be purchased on a pro rata basis (with such
adjustments as may be deemed appropriate by the Company so that only Notes in denominations of
$1,000, or integral multiples thereof, shall be purchased); and

     (i) that Holders whose Notes were purchased only in part shall be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry
transfer).

          On or before the Purchase Date, the Company shall, to the extent lawful, accept for payment,
on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered
pursuant to the Repurchase Offer or, subject to the terms of Section 5.09 hereof in the case of a
Repurchase Offer made pursuant thereto, if less than the Offer Amount has been tendered, all Notes
tendered, and shall deliver to the Trustee an Officers’ Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the terms of this
Article IX. The Company, the Depository Trust Company or the Paying Agent, as the case may be,
shall promptly (but in any case not later than one Business Day after the Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase price of the Notes tendered by
such Holder and accepted by the Company for purchase, and the Company shall promptly issue a new
Note, and the Trustee, upon written request from the Company shall authenticate and mail or deliver
such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note
surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the
Holder thereof. The Company shall publicly announce the results of the Repurchase Offer on the
Repurchase Date.

Other than as specifically provided in this Article IX, any purchase pursuant to this Article IX
shall be made pursuant to the provisions of Article Eleven of the Base Indenture.

ARTICLE X

MISCELLANEOUS

          Section. 10.01. Discharge; Defeasance. Articles 4 and 13 of the Base Indenture relating to
Satisfaction and Discharge and to Defeasance and Covenant Defeasance, respectively, shall be
applicable to the Notes issued under this First Supplemental Indenture.

          Section 10.02. Application of First Supplemental Indenture. Each and every term and condition
contained in this First Supplemental Indenture that modifies, amends or supplements the terms and
conditions of the Base Indenture shall apply only to the Notes created hereby and not to any future
series of Securities established under the Base Indenture.

          Section 10.11. Benefits of First Supplemental Indenture. Nothing contained in this First
Supplemental Indenture shall or shall be construed to confer upon any person other than a Holder of
the Notes, the Company and the Trustee any right or interest to avail itself or himself, as the
case may be, of any benefit under any provision of this First Supplemental Indenture.

          Section 10.04. Defined Terms. All capitalized terms which are used herein and not otherwise
defined herein are defined in the Base Indenture and are used herein with the same meanings as in
the Base Indenture.

          Section 10.05. Effective Date. This First Supplemental Indenture shall be effective as of the
date first above written and upon the execution and delivery hereof by each of the parties hereto.

          Section 10.06. Governing Law. This First Supplemental Indenture shall be governed by, and
construed in accordance with, the internal laws of the State of New York.

 

 

          Section 10.07. Counterparts. This First Supplemental Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

          Section 10.08. Satisfaction and Discharge. This First Supplemental Indenture shall cease to be
of further force and effect upon compliance with Section 401 of the Indenture with respect to the
Notes created hereby.

 

 

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

	 	 	 	 	 
	 	NVR, INC.

 	 
	Dated: April 14, 1998  	By:  	/s/ Paul C. Saville
 	 
	 	Name:  	Paul C. Saville 	 
	 	Title:  	Senior Vice President Finance and Chief Financial

Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                      /s/ Dennis M. Seremet
 	 
	 	Name:  	Dennis M. Seremet 	 
	 	Title:  	Vice President and Controller 	 
	 

Attest: /s/ [illegible]

	 	 	 	 	 
	 	NVR HOMES, INC.

 	 
	Dated: April 14, 1998 	By:  	/s/ Paul C. Saville
 	 
	 	Name:  	Paul C. Saville 	 
	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                      /s/ Dennis M. Seremet
 	 
	 	Name:  	Dennis M. Seremet 	 
	 	Title:  	Vice President 	 
	 

Attest: /s/ [illegible]

	 	 	 	 	 
	 	THE BANK OF NEW YORK

   as Trustee

 	 
	Dated: April 14, 1998  	By:  	/s/ MaryBeth Lewicki
 	 
	 	Name:  	MaryBeth Lewicki 	 
	 	Title:  	Assistant Vice President 	 
	 

 

 

EXHIBIT A

FORM OF NOTE

NVR, INC.

8% Senior Notes due 2005

			
	 	 	 
	 
	 	Principal Amount
	CUSIP No. 62944TAB1
	 	$145,000,000

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

     UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A
NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF
DTC OR A NOMINEE OF SUCH SUCCESSOR.

     NVR, Inc., a Virginia corporation (the “Issuer,” which term includes any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of One Hundred Forty Five Million Dollars on June 1, 2005
(the “Maturity Date”), and to pay interest thereof from April 14, 1998 (or from the most recent
Interest Payment Date to which interest has been paid or duly provided for), semiannually in
arrears on June 1 and December 1 of each year (each, an “Interest Payment Date”), commencing on
June 1, 1998, and on the Maturity Date, at a rate of 8% per annum, until payment of said principal
sum has been made or duly provided for.

     The interest so payable and punctually paid or duly provided for on an Interest Payment Date
and on the Maturity Date will be paid to the Holder in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the “Regular Record Date” for such
payment, which will be the May 15 and November 15 (regardless of whether such day is a Business Day
(as defined below)) next preceding such payment date or the Maturity Date, as the case may be. Any
interest not so punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date, and shall be paid to the Holder in whose name this Note (or one
or more predecessor Notes) is registered at the close of business on a subsequent record date for
the payment of such defaulted interest (which shall not be less than five Business Days prior to
the date of the payment of such defaulted interest) established by notice given by mail or by on
behalf of the Issuer to the Holders of the Notes not less than 15 days preceding such subsequent
record date. Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day
months.

     The principal of this Note payable on the Maturity Date will be paid against presentation and
surrender of this Note at the office or agency of the Issuer maintained for that purpose in New
York, New York. The Issuer hereby initially designates the Corporate Trust Office of the Trustee in
New York, New York as the office to be maintained by it where Notes may be presented for payment,
registration of transfer, or exchange and where notices or demands to or upon the Issuer in respect
of the Notes or the Indenture referred to on the reverse hereof may be served.

     Interest payable on this Note on any Interest Payment Date and on the Maturity Date, as the
case may be, will be the amount of interest accrued during the applicable Interest Period (as
defined below).

     An “Interest Period” is each period from and including the immediately preceding Interest
Payment Date (or from and including April 14, 1998, in the case of the initial Interest Period) to
but excluding the applicable Interest Payment Date or the Maturity Date, as the case may be. If any
Interest Payment Date other than the Maturity Date

 

 

would otherwise be a day that is not a Business Day, any amounts payable on such Interest
Payment Date will be paid on the succeeding Business Day with the same force and effect as if it
were paid on the date such payment was due. If the Maturity Date falls on a day that is not a
Business Day, principal and interest payable on the Maturity Date will be paid on the succeeding
Business Day with the same force and effect as if paid on the date such payment was due, and no
interest will accrue on the amount so payable for the period from and after the Maturity Date.

     Payments of principal and interest in respect of this Note will be made by wire transfer of
immediately available funds (or with respect to any Note not held in global form, by a U.S. dollar
check or by wire transfer of immediately available funds) in such coin or currency of the United
States of America as at the time of payment is legal tender for the payment of public and private
debts.

     Reference is made to the further provisions of this Note set forth on the reverse hereof. Such
further provisions shall for all purposes have the same effect as though fully set forth at this
place. Capitalized terms used herein, including on the reverse hereof, and not defined herein or on
the reverse hereof shall have the respective meanings given to such terms in the Indenture.

     This Note shall not be entitled to the benefits of the Indenture referred to on the reverse
hereof or be valid or become obligatory for any purpose until the certificate of authentication
hereon shall have been manually signed by the Trustee under such Indenture.

 

 

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

	 	 	 	 	 
	Dated: April_____, 1998  	NVR, INC., as Issuer

 	 
	 	By:  	 	 
	 	 	   Name:  	 
	 	 	   Its: 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	

 	 
	 	 	   Name:  	 
	 	 	   Its: 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is
one of the Securities of the series designated herein referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Dated: April ___,1998 	THE BANK OF NEW YORK

 	 
	 	By:  	 	 
	 	 	    Authorized Signatory 	 
	 	 	 	 
	 

 

 

[REVERSE OF NOTE]

NVR, INC.

8% Senior Notes due 2005

     This security is one of a duly authorized issue of debentures, notes, bonds, or other
evidences of indebtedness of the Issuer (hereinafter called the “Securities”) of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture dated as of
April 14, 1998, between the Issuer and The Bank of New York, as trustee (the “Trustee”) as
supplemented by the First Supplemental Indenture dated as of April 14, 1998 among the Issuer, NVR
Homes, Inc. as a subsidiary guarantor and the Trustee (as so supplemented, herein called the
“Indenture”), duly executed and delivered by the Issuer to The Bank of New York, as Trustee (herein
called the “Trustee,” which term includes any successor trustee under the Indenture with respect to
the series of Securities of which this Note is a part), to which Indenture and all Indentures
supplemental thereto that are applicable to the Notes (as defined below) reference is hereby made
for a description of the rights, limitations of rights, obligations, duties, and immunities
thereunder of the Trustee, the Issuer, and the Holders of the Securities, and of the terms upon
which the Securities are, and are to be, authenticated and delivered. The Securities may be issued
in one or more series, which different series may be issued in various aggregate principal amounts,
may mature at different times, may bear interest (if any) at different rates, may be subject to
different redemption provisions (if any), and may otherwise vary as provided in the Indenture. This
Security is one of a series designated as the 8% Senior Notes due 2005 of the Issuer (the “Notes”),
limited in aggregate principal amount to $175,000,000.

     In case an Event of Default with respect to the 8% Senior Notes due 2005 shall have occurred
and be continuing, the principal hereof and premium (if any) may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect, and subject to the
conditions provided in the Indenture.

     The Notes shall be redeemable at the option of the Company, in whole or in part, at any time
on or after June 1, 2003, at the redemption prices (expressed as a percentage of principal amount)
set forth below, plus accrued and unpaid interest thereon, if any, to the redemption date, if
redeemed during the 12-month period beginning on June 1 of the years indicated below:

	 	 	 	 	 
	Redemption Year	 	Price
	2003

	 	 	104.000 	%
	2004

	 	 	102.000 	%
	2005

	 	 	100.000	%

     In addition, prior to June 1, 2001, the Company may redeem up to 35% of the aggregate
principal amount of the Notes issued under this First Supplemental Indenture at a redemption price
equal to 108% of the principal amount of the Notes so redeemed, plus accrued and unpaid interest
thereon, if any, to the redemption date with the net cash proceeds of one or more Public Equity
Offerings; provided, however, that (x) at least $113,750,000 aggregate principal amount of all
Notes issued under the Indenture remains outstanding immediately after giving effect to any such
redemption (excluding any Notes held by the Company) and (y) notice of any such redemption is given
within 60 days of the applicable Public Equity Offering.

     Selection of the Notes or portions thereof for redemption pursuant to the foregoing shall be
made by the Trustee pro rata or by lot. Notice of redemption shall be mailed via courier
guaranteeing overnight delivery at least 30 days but not more than 60 days before the redemption
date to each Holder whose Notes are to be redeemed at the registered address of such Holder. On and
after the redemption date, interest shall cease to accrue on the Notes or portions thereof called
for redemption.

     The covenants set forth in Article V of the First Supplemental Indenture shall be fully
applicable to the Notes.

     The First Supplemental Indenture provides that, subject to certain conditions, (i) if a Change
of Control (as defined in the First Supplemental Indenture) occurs, the Issuer shall be required to
make a Change of Control Offer, (ii) in the event of certain Asset Sales, the Company shall be
required to make an Asset Sale Offer (in each case as such terms are defined in the First
Supplemental Indenture) and (iii) if the Company does not maintain a Minimum Required Net Worth (as
defined in the First Supplemental Indenture), the Company shall be required to make a Purchase
Offer (as defined in the First Supplemental Indenture), in certain circumstances, for all or a
portion of the Notes.

 

 

     The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of
the Holders of not less than a majority of the aggregate principal amount of the Securities at the
time Outstanding of all series to be affected (voting as one class), evidenced as provided in the
Indenture, to execute supplemental Indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental Indenture or modifying in
any manner the rights of the Holders of the Securities of each series; provided, however, that no
such supplemental Indenture shall, without the consent of the Holder of each Security so affected,
among other things (i) change the final maturity of any Security, or reduce the principal amount
thereof or any premium thereon, or reduce the rate or extend the time of payment of any interest
thereof, or impair or affect the rights of any Holder to institute suit for the payment on any
Security, or (ii) reduce the percentage of Securities, the Holders of which are required to consent
to any such supplemental Indenture, (iii) reduce the percentage of Securities, the Holders of which
are required to consent to any waiver of compliance with certain provisions of the Indenture or any
waiver of certain defaults thereunder or (iv) modify the ranking or priority of the Securities. It
is also provided in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, the Holders of a majority in aggregate principal amount
outstanding of the Securities of such series (or, in the case of certain defaults or Events of
Default, all series of Securities) may on behalf of the Holders of all the Securities of such
series (or all of the Securities, as the case may be) waive any such past default or Event of
Default and its consequences, prior to any declaration accelerating the maturity of such
Securities, or, subject to certain conditions, may rescind a declaration of acceleration and its
consequences with respect to such Securities. The preceding sentence shall not, however, apply to a
default in the payment of the principal of or premium, if any, or interest on any of the
Securities. Any such consent or waiver by the Holder of this Security (unless revoked as provided
in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and
owners of this Security and any securities that may be issued in exchange or substitution herefor,
irrespective of whether or not any notation thereof is made upon this Security or such other
securities.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless (a) such Holder
shall have previously given the Trustee written notice of a continuing Event of Default, (b) the
Holders of not less than 25% in aggregate principal amount of the Securities Outstanding shall have
made written request to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity and the Trustee shall not have received from
the Holders of a majority in aggregate principal amount of the Securities Outstanding a direction
inconsistent with such request, and (c) the Trustee shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof, premium, if any, or interest hereon on or after the respective due
dates expressed herein.

     No references herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal, premium, if any, and interest on this Security in the manner, at the respective times,
at the rate and in the coin or currency herein prescribed.

     This Security is issuable only in registered form without coupons in denominations of $1,000
and integral multiples thereof. Securities may be exchanged for a like aggregate principal amount
of Securities of this series of other authorized denominations at the office or agency of the
Issuer in New York, New York, in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge except for any tax or other governmental
charge imposed in connection therewith.

     This Security is not subject to a sinking fund requirement.

     Upon due presentment for registration of transfer of Securities at the office or agency of the
Issuer in New York, New York, a new Security or Securities of the same series of authorized
denominations in an equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge except for any tax
or other governmental charge imposed in connection therewith.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture, in
any Security or coupon appertaining thereto, or because of any indebtedness evidenced hereby or
thereby (including, without limitation, any obligation or indebtedness relating to the principal
of, or premium, if any, or interest or any other amounts due, or claimed to be due, on this
Security), or for any claim based thereon or otherwise in respect thereof,

 

 

shall be had against any promoter, as such, or against any past, present or future
shareholder, office or director, as such, of the Issuer or of any successor, either directly or
through the Issuer or any successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance hereof and as part of the
consideration for the issue hereof.

     Prior to due presentation of a Security for registration of transfer, the Issuer, the Trustee,
and any authorized agent of the Issuer or the Trustee may deem and treat the Person in whose name
this Security is registered as the absolute owner of this Security (whether or not this Security
shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment of, or on account of, the principal hereof and premium, if any, and
subject to the provisions herein and on the face hereof; interest hereon, and for all other
purposes, and neither the Issuer nor the Trustee nor any authorized agent of the Issuer or the
Trustee shall be affected by any notice to the contrary.

     The Indenture and this Security shall be governed by the internal laws of the State of New
York, United States of America.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused “CUSIP” numbers to be printed on the Securities of this series
as a convenience to the Holders of such Securities. No representation is made as to the correctness
or accuracy of such CUSIP numbers as printed on the Securities, and reliance may be placed only on
the other identification numbers printed hereon.

 

 

ASSIGNMENT FORM AND CERTIFICATE OF TRANSFER

     To assign this Security fill in the form below:

     (I) or (we) assign and transfer this Security to

 

(Insert assignee’s social security or tax identification number, if any)

 

 

 

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

	 	 	 
	Your signature:
	 	 
	 
	 

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

	 	 	 	 	 
	Date:

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Signature Guarantee:

	 	 	 	 
	 	 	 
	 

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

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Issuer pursuant to Section 5.04, 5.09
or 5.10 of the First Supplemental Indenture, check here                     .

     If you want to elect to have only a part of this Note purchased by the Issuer pursuant to
Section 5.04, 5.09 or 5.10 of the First Supplemental Indenture, state the amount:

$                    

Dated:                                         

Your Signature:
         
            
             
                  
                   
      

     (sign exactly as your name appears on the

     other side of this Security)

Signature Guarantee:    
       
           
           
          
           
       

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

 

 

EXHIBIT B

FORM OF SUBSIDIARY GUARANTEE

     NVR Homes, Inc., a Virginia corporation (hereinafter referred to as the “Subsidiary
Guarantor,” which term includes any successor Subsidiary Guarantor under the Indenture dated as of
April 14, 1998 between NVR, Inc. and The Bank of New York as Trustee (the “Trustee”) as
supplemented by the First Supplemental Indenture dated as of April 14, 1998 between NVR, Inc., the
Subsidiary Guarantor and the Trustee (the “Indenture”) referred to in the Note upon which this
notation is endorsed), (i) has unconditionally guaranteed that (a) the principal of, interest and
premium, if any, on the Notes will be promptly paid in full when due, subject to any applicable
grace period, whether at stated maturity, by acceleration or otherwise and interest on the overdue
principal of, and interest on interest, to the extent lawful, and premium, if any, on the Notes and
all other obligations of the Company to the Holders or the Trustee under the Indenture or the Notes
will be promptly paid in full, all in accordance with the terms set forth in the Indenture and
Notes; and (b) in case of any extension of time of payment or renewal of the Notes or of any such
other obligations, the same will be promptly paid in full when due in accordance with the terms of
the extension or renewal, subject to any applicable grace period, whether at stated maturity, by
acceleration or otherwise, (ii) has agreed to pay any and all costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under
this Subsidiary Guarantee; provided, however, that this Subsidiary Guarantee is limited as to the
Subsidiary Guarantor to the extent necessary not to constitute a fraudulent conveyance or
fraudulent transfer.

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

     This Subsidiary Guarantee shall be binding upon the undersigned and, to the extent provided in
the Indenture, its successors and assigns and shall inure to the benefit of the successors and
assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by
any Holder or the Trustee, the rights and privileges herein conferred upon that party shall
automatically extend to and be vested in such transferee or assignee, all subject to the terms and
conditions hereof.

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

 

 

     IN WITNESS WHEREOF, the Subsidiary Guarantor has caused this Subsidiary Guarantee to be signed
manually or by facsimile by its duly authorized officer.

	 	 	 	 	 
	 	NVR HOMES, INC., as Subsidiary Guarantor

 	 
	 	By:  	 	 
	 	 	     Name:  	 
	 	 	     Title:

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