Document:

Exhibit 10.1

 

EXECUTION VERSION

 

REFINANCING AMENDMENT NO. 2 (this “Refinancing Amendment”), dated as of June 7, 2017, to that certain Credit Agreement dated as of June 16, 2016 (as amended by that certain Refinancing Amendment dated as of March 21, 2017 and as further amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”; the Existing Credit Agreement as amended by the Refinancing Amendment, the “Credit Agreement”) among KFC Holding Co. (the “Lead Borrower”), Pizza Hut Holdings, LLC and Taco Bell of America, LLC, as co-Borrowers (each, a “Borrower” and together with the Lead Borrower, the “Borrowers”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Collateral Agent, Swing Line Lender, an L/C Issuer and Administrative Agent (the “Administrative Agent”) for the Lenders.

 

WHEREAS, (a) pursuant to Section 2.14 of the Existing Credit Agreement, the Borrowers have requested (x) Incremental Term Loans in the form of Refinancing Term Loans (the “New Term A Loans”) in an aggregate principal amount not exceeding $500,000,000, the proceeds of which shall be used to refinance, in full (concurrently with the effectiveness of this Refinancing Amendment), the Term A Loans outstanding on the Second Amendment Effective Date before giving effect to this Refinancing Amendment (the “Existing Term A Loans”) and  (y) Incremental Revolving Credit Commitments in the form of Refinancing Revolving Credit Commitments (the “New Revolving Credit Commitments”; the loans thereunder “New Revolving Credit Loans”) in an aggregate commitment amount not exceeding $1,000,000,000, which shall be used to refinance and replace in full (concurrently with the effectiveness of this Refinancing Amendment) the Revolving Credit Commitments outstanding before giving effect to this Amendment (the “Existing Revolving Credit Commitments”; the loans thereunder outstanding on the Second Amendment Effective Date before giving effect to this Refinancing Amendment, the “Existing Revolving Credit Loans”).

 

WHEREAS, the Persons holding New Term A Commitments (as defined below) (the “New Term A Lenders”) are severally willing to make New Term A Loans on the Second Amendment Effective Date in an aggregate amount equal to their New Term A Commitment, subject to the terms and conditions set forth in this Amendment;

 

WHEREAS, the Persons holding New Revolving Credit Commitments (the “New Revolving Credit Lenders” and the New Revolving Credit Lenders together with the New Term A Lenders, the “New Lenders”) are severally willing to make New Revolving Credit Commitments available to the Borrowers on the Second Amendment Effective Date in an aggregate commitment amount equal to their New Revolving Credit Commitments, subject to the terms and conditions set forth in this Amendment;

 

WHEREAS, in accordance with Sections 2.14 and 10.01 of the Credit Agreement,  (a) the New Term A Loans shall constitute Term A Loans and shall have the other terms and conditions set forth herein and in the Credit Agreement as amended hereby and (b) the Refinancing Revolving Credit Commitments shall be subject to the same terms applicable to the Existing Revolving Credit Commitments, as amended hereby to (x) decrease the Applicable Rate with respect to the New Revolving Credit Commitments and (y) to extend the Maturity Date with respect to the New Revolving Credit Commitments to the fifth anniversary of the Second Amendment Effective Date;

 

 

WHEREAS, pursuant to Sections 2.14(d) and 10.01 of the Credit Agreement, the New Lenders have agreed to make modifications to the Existing Credit Agreement to effect the terms of the New Term A Loans and the New Revolving Credit Commitments as set forth below;

 

WHEREAS, pursuant to Section 10.01, the Borrowers and the Administrative Agent have agreed to amend Sections 2.14(c) and 3.06(d) as set forth in Annex I attached hereto; and

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1. Defined Terms. Capitalized terms used and not otherwise defined herein have the meanings assigned to them in the Credit Agreement.

 

SECTION 2. New Term A Loans and New Revolving Credit Commitments.

 

(a)           Subject to the terms and conditions set forth herein, each New Term A Lender severally agrees to make a New Term A Loan to the Borrowers on the Second Amendment Effective Date in a principal amount equal to its New Term A Commitment, which shall be made available to the Administrative Agent in immediately available funds in accordance with the Credit Agreement. The “New Term A Commitment” of any New Term A Lender will be the amount set forth opposite such New Term Lender’s name on Schedule 1 hereto. On the Second Amendment Effective Date, the proceeds of the New Term A Loans shall be applied to prepay in full the Existing Term A Loans. The New Term A Commitments of the New Term A Lenders will be automatically and permanently reduced to $0 upon the funding of the New Term A Loans on the Second Amendment Effective Date.

 

(b)           Subject to the terms and conditions set forth herein, each New Revolving Credit Lender severally agrees to make New Revolving Credit Commitments available to the Borrowers on the Second Amendment Effective Date in an aggregate commitment amount equal to its New Revolving Credit Commitment. The “New Revolving Credit Commitment” of any New Revolving Credit Lender will be the amount set forth opposite such New Revolving Credit Lender’s name on Schedule 2 hereto. On the Second Amendment Effective Date, the New Revolving Credit Commitments shall replace in full the Existing Revolving Credit Commitments. Each Swing Line Lender and L/C Issuer acting in such capacities immediately prior to the effectiveness of this Amendment shall continue to act in such capacities immediately following the effectiveness hereof. Each Letter of Credit issued under the Existing Credit Agreement shall be deemed issued under the Credit Agreement following the effectiveness hereof.

 

(c)           On the Second Amendment Effective Date, (i) each existing Term A Lender (immediately prior to giving effect to the transactions herein) (each, an “Existing Term A Lender”) shall have its Existing Term A Loans prepaid in full, (ii) the Borrowers shall pay to each Existing Term A Lender all accrued and unpaid interest on and fees related to the Existing Term A Loans to, but not including, the Second Amendment Effective Date and (iii) all outstanding Revolving Credit Loans (including any Swing Line Loan) shall be prepaid in full,

 

 

and the Existing Revolving Credit Commitments terminated and the Borrowers shall pay to each existing Revolving Credit Lender (immediately prior to giving effect to the transactions herein) all accrued and unpaid interest on and fees related to the outstanding Revolving Credit Loans and Existing Revolving Credit Commitments to, but not including, the Second Amendment Effective Date.

 

(d)           For the avoidance of doubt, on and after the Second Amendment Effective Date, (i) each of the New Term A Loans and the New Revolving Credit Commitments shall each constitute a single Class of Loans or Commitments, as applicable, under the Credit Agreement; (ii) each of the New Term A Lenders and the New Revolving Credit Lenders shall each constitute a single Class of Lenders under the Credit Agreement; (iii) each reference in the Credit Agreement to “Term A Loans” shall be deemed a reference to the New Term A Loans, and each reference to “Term A Lenders” shall be deemed a reference to the New Term A Lenders; and (iv) each reference in the Credit Agreement to “Revolving Credit Loans” shall be deemed a reference to the New Revolving Credit Loans, each reference to “Revolving Credit Commitments” shall be deemed a reference to the New Revolving Credit Commitments and each reference to “Revolving Credit Lenders” shall be deemed a reference to the New Revolving Credit Lenders.

 

(e)           On the Second Amendment Effective Date, the New Revolving Credit Lenders constitute all of the Revolving Credit Lenders under the Credit Agreement, and each such Lender hereby agrees and consents to the amendments to the Existing Credit Agreement set forth in Annex I to this Refinancing Amendment.

 

SECTION 3. Amendments to the Credit Agreement. In accordance with Section 2.14(d) and Section 10.01 of the Credit Agreement and effective as of the Second Amendment Effective Date, the Existing Credit Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Credit Agreement attached as Annex I hereto.

 

SECTION 4. Representations and Warranties. To induce the other parties hereto to enter into this Refinancing Amendment, each Loan Party represents and warrants that:

 

(a)           As of the Second Amendment Effective Date, this Refinancing Amendment has been duly executed and delivered by each Loan Party that is party thereto. This Refinancing Amendment constitutes a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity.

 

(b)           The representations and warranties of the Companies and each other Loan Party contained in Article 5 of the Credit Agreement, or any other Loan Document, shall be true and correct in all material respects on and as of the Second Amendment Effective Date; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided,  further, that any representation and warranty that is qualified as to “materiality,” “Material Adverse

 

 

Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates.

 

(c)           As of the Second Amendment Effective Date no Default shall exist, or would result from the transactions contemplated hereby or from the application of the proceeds therefrom.

 

SECTION 5. Second Amendment Effective Date. This Refinancing Amendment shall become effective as of the first date (the “Second Amendment Effective Date”) on which each of the following conditions shall have been satisfied:

 

(a)           The Administrative Agent shall have received (i) a counterpart signature page of this Refinancing Amendment duly executed by each of the Loan Parties, the Administrative Agent, each Swing Line Lender, each L/C Issuer and each New Lender.

 

(b)           The representations and warranties set forth in Section 4 of this Refinancing Amendment shall be true and correct in all respects on and as of the Second Amendment Effective Date, and the Administrative Agent shall have received a certificate (in form and substance reasonably acceptable to the Administrative Agent), dated as of the Second Amendment Effective Date and signed by a Responsible Officer of the Lead Borrower, certifying as to such representations and warranties.

 

(c)           The Administrative Agent shall have received an opinion from each of Mayer Brown LLP, U.S. counsel to the Loan Parties and Carson Stewart, Esq., corporate counsel of Parent, in each case, in form and substance reasonably satisfactory to the Administrative Agent.

 

(d)           The Administrative Agent shall have received a Committed Loan Notice in respect of the New Term A Loans and any New Revolving Credit Loans.

 

(e)           The Administrative Agent shall have received (x) a notice of mandatory prepayment of Term Loans pursuant to Section 2.05(b)(v) of the Credit Agreement and (y) a notice of prepayment of Revolving Credit Loans and Swing Line Loans and Termination of Revolving Credit Commitments pursuant to Section 2.06 of the Credit Agreement.

 

(f)            The Administrative Agent shall have received a certificate signed by a Responsible Officer of the Lead Borrower designating the New Term A Loans as Refinancing Term Loans and the New Revolving Credit Commitments as Refinancing Revolving Credit Commitments.

 

(g)           The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Loan Party, the authorization of execution, delivery and performance of this Refinancing Amendment, the performance of the Credit Agreement and each other applicable Loan Document, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

 

(h)           The Borrowers shall have paid all fees and amounts due and payable pursuant to this Refinancing Amendment and/or any letter agreements or fee letters (collectively, the “Fee Letters”) by and between the Borrowers and the Administrative Agent, including, to the extent evidenced by a written invoice, reimbursement or payment of documented and reasonable out-of-pocket expenses in connection with this Refinancing Amendment and any other out-of-pocket expenses of the Administrative Agent required to be paid or reimbursed pursuant to the Credit Agreement or the Fee Letters.

 

(i)            The Administrative Agent shall have received at least one (1) Business Day prior to the Second Amendment Effective Date all documentation and other information about the Borrowers and the Guarantors as has been reasonably requested in writing at least three (3) Business Days prior to the Second Amendment Effective Date by the Administrative Agent that it reasonably determines is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act.

 

(j)            The prepayment of (A) the Existing Term A Loans and (B) the Existing Revolving Credit Loans, in each case, shall have been consummated or, substantially concurrently with the incurrence of the New Term A Loans or New Revolving Credit Commitments, shall be consummated, in each case with all accrued and unpaid interest on, and premiums and fees related to, the Existing Term A Loans and the Revolving Credit Loans, as applicable, to, but not including, the Second Amendment Effective Date.

 

(k)           The Administrative Agent shall have received payment from or on behalf of the Borrowers for the account of each New Lender, of an upfront fee for each such Lender in an amount equal to, with respect to each New Term A Lender or New Revolving Credit Lender, 25 basis points on such New Term A Lender’s and/or New Revolving Credit Lender’s, as applicable, New Term A Commitments or New Revolving Credit Commitments.

 

The Administrative Agent shall notify the Borrowers and the New Lenders of the Second Amendment Effective Date and such notice shall be conclusive and binding.

 

SECTION 6. Effect of Refinancing Amendment.

 

(a)           Except as expressly set forth herein, this Refinancing Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or Agents under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle the Borrowers to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.

 

(b)           From and after the Second Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like

 

 

import, and each reference to the “Credit Agreement” in any other Loan Document shall be deemed a reference to the Credit Agreement. This Refinancing Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

 

(c)           This Refinancing Amendment shall be deemed to be an “Incremental Facility Amendment” as defined in the Credit Agreement. Each of the Lenders party hereto hereby acknowledge that the Borrowers hereby provide notice under Section 2.14 of the Credit Agreement of their request for Incremental Term Loans and Incremental Revolving Credit Commitments, with the proposed terms set forth herein, and all notice requirements in Section 2.14 of the Credit Agreement with respect to such request have been satisfied.

 

(d)           The Existing Credit Agreement, as specifically amended by this Refinancing Amendment, is and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations (including, for the avoidance of doubt, all Obligations in respect of the New Term A Loans and New Revolving Credit Commitments made available hereunder) of the Loan Parties under the Loan Documents, in each case as amended by this Refinancing Amendment.

 

(e)           Each Loan Party and, in the case of clause (iii), each Guarantor hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Loan Documents to which it is a party, (ii) ratifies and reaffirms each grant of a lien on, or security interest in, its property made pursuant to the Loan Documents (including, without limitation, the grant of security made by such Loan Party pursuant to the Security Agreement) and confirms that such liens and security interests continue to secure the Obligations under the Loan Documents (including, for the avoidance of doubt, all Obligations in respect of the New Term A Loans and New Revolving Credit Commitments made available hereunder), subject to the terms thereof and (iii) in the case of each Guarantor, ratifies and reaffirms its guaranty of the Obligations (including, for the avoidance of doubt, all Obligations in respect of the New Term A Loans and the New Revolving Credit Commitments made available hereunder) pursuant to the Guarantee.

 

SECTION 7. GOVERNING LAW. THIS REFINANCING AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

SECTION 8. Costs and Expenses. The Borrowers agree to reimburse the Administrative Agent promptly after receipt of a written request for its documented and reasonable out-of-pocket expenses in connection with this Refinancing Amendment, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent. All amounts due under this Section 8 shall be paid within thirty (30) Business Days of receipt by the Lead Borrower of an invoice relating thereto setting forth such expenses in reasonable detail. Notwithstanding the foregoing, any fees and expenses payable in respect of the Second Amendment Effective Date, including legal fees and expenses, shall be due and payable as specified in Section 5(h) above.

 

 

SECTION 9. Counterparts. This Refinancing Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile or other electronic imaging means of an executed counterpart of a signature page to this Refinancing Amendment shall be effective as delivery of an original executed counterpart of this Refinancing Amendment.

 

SECTION 10. Headings. Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Refinancing Amendment.

 

[Remainder of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Refinancing Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

 

	
 
    	
KFC HOLDING CO.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PIZZA HUT HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TACO BELL OF AMERICA, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie   Hayes-Badon
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
YUM! BRANDS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Vice President and Assistant Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TACO BELL CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie   Hayes-Badon
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
				

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
 
    	
YUM   RESTAURANT SERVICES
    
	
 
    	
GROUP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RESTAURANT   CONCEPTS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KFC   US, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie   Hayes-Badon
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KFC CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PIZZA   HUT, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie   Hayes-Badon
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PIZZA HUT OF AMERICA, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie   Hayes-Badon
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
				

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
 
    	
KENTUCKY   FRIED CHICKEN
    
	
 
    	
INTERNATIONAL   HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
YUM! RESTAURANTS
    
	
 
    	
INTERNATIONAL HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
YUM! LUXEMBOURG INVESTMENTS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie   Hayes-Badon
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
YUM! INTERNATIONAL 
    
	
 
    	
PARTICIPATIONS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Connie   Hayes-Badon
    
	
 
    	
 
    	
Name: Connie Hayes-Badon
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
 
    	
JPMORGAN CHASE   BANK, N.A.,
    
	
 
    	
as Administrative Agent, L/C   Issuer and Swing
    
	
 
    	
Line Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Courtney   Eng
    
	
 
    	
 
    	
Name: Courtney Eng
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
 
    	
CITIBANK, N.A.,
    
	
 
    	
as L/C   Issuer and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Tuder
    
	
 
    	
 
    	
Name: David Tuder
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
 
    	
GOLDMAN SACHS BANK USA,
    
	
 
    	
as L/C  Issuer and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Annie Carr
    
	
 
    	
 
    	
Name: 
    	
Annie Carr
    
	
 
    	
 
    	
Title: 
    	
Authorized Signatory
    

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	

    	
WELLS FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   L/C Issuer and Swing Line Lender 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Darcy   McLaren
    
	
 
    	
 
    	
Name:
    	
Darcy McLaren
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
Name of Institution:
    	
JPMORGAN CHASE BANK, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Courtney   Eng
    
	
 
    	
 
    	
Name: 
    	
Courtney Eng
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
						

 

 

	
Name of Institution:
    	
GOLDMAN   SACHS BANK USA
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Annie   Carr
    
	
 
    	
 
    	
Name: 
    	
Annie Carr
    
	
 
    	
 
    	
Title: 
    	
Authorized Signatory
    
						

 

 

	
Name of Institution:
    	
Citibank, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tim Jones
    
	
 
    	
 
    	
Name: 
    	
Tim Jones
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
For any institution   requiring a second signature line:
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
						

 

 

	
Name of Institution:  
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Darcy McLaren
    
	
 
    	
 
    	
 
    	
Name:
    	
Darcy McLaren
    
	
 
    	
 
    	
 
    	
Title:
    	
Director
    
						

 

 

	
Name of Institution:
    	
Bank of America, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Aron Frey
    
	
 
    	
 
    	
 
    	
Name:
    	
Aron Frey
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
						

 

 

	
Name of Institution:
    	
Fifth Third Bank,
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ John A. Marian
    
	
 
    	
 
    	
 
    	
Name:
    	
John A. Marian
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
						

 

 

	
Name of Institution:
    	
The Bank of   Tokyo-Mitsubishi UFJ, Ltd.
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Christine Howatt
    
	
 
    	
 
    	
 
    	
Name:
    	
Christine Howatt
    
	
 
    	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    
						

 

 

	
Name of Institution:
    	
MORGAN STANLEY BANK, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael King
    
	
 
    	
 
    	
 
    	
Name:
    	
Michael King
    
	
 
    	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    
						

 

 

	
Name of Institution:
    	
Coöperatieve Rabobank U.A., New York Branch
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ David Vernon
    
	
 
    	
 
    	
 
    	
Name:
    	
David Vernon
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Van Brandenburg
    
	
 
    	
 
    	
 
    	
Name:
    	
Van Brandenburg
    
	
 
    	
 
    	
 
    	
Title:
    	
Exec Director
    
						

 

 

	
Name of Institution:
    	
Industrial and Commercial Bank of China Limited, New York Branch
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Pinyen Shih
    
	
 
    	
 
    	
 
    	
Name:
    	
Pinyen Shih
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive   Director
    
	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Hsiwei Chen
    
	
 
    	
 
    	
 
    	
Name:
    	
Hsiwei Chen
    
	
 
    	
 
    	
 
    	
Title:
    	
VP
    
						

 

 

	
Name of Institution:
    	
Barclays Bank PLC
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Christopher Aitkin
    
	
 
    	
 
    	
 
    	
Name:
    	
Christopher Aitkin
    
	
 
    	
 
    	
 
    	
Title:
    	
Assistant Vice   President
    
						

 

 

	
Name of Institution:
    	
THE BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Laura Gimena
    
	
 
    	
 
    	
 
    	
Name:
    	
Laura Gimena
    
	
 
    	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
						

 

 

	
Name of Institution:
    	
ING Capital LLC
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ William B. Redmond
    
	
 
    	
 
    	
 
    	
Name:
    	
William B. Redmond
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ben Whitehurst
    
	
 
    	
 
    	
 
    	
Name:
    	
Ben Whitehurst
    
	
 
    	
 
    	
 
    	
Title:
    	
VP
    
						

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
Name of Institution:
    	
U.S. Bank National Association
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven L. Sawyer
    
	
 
    	
 
    	
Name: 
    	
Steven L. Sawyer
    
	
 
    	
 
    	
Title: 
    	
Senior Vice President
    
					

 

 

	
Name of Institution:
    	
PNC Bank, National Association
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shelly   Stephenson
    
	
 
    	
 
    	
Name:
    	
Shelly Stephenson
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
For any institution requiring a second signature line: 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
					

 

 

	
Name of Institution:
    	
Northern Trust   Company
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John C. Canty
    
	
 
    	
 
    	
Name:
    	
John C. Canty
    
	
 
    	
 
    	
Title:
    	
Senior Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
For any institution requiring a second signature line: 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
					

 

 

	
Name of Institution:
    	
Banco Popular de Puerto Rico, New York Branch
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Hector J. Gonzalez
    
	
 
    	
 
    	
Name:
    	
Hector J. Gonzalez
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
For any institution requiring a second signature line: 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
					

 

 

	
Name of Institution:
    	
Banco Popular North America dba Popular   Community Bank
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andres Cabrero
    
	
 
    	
 
    	
Name:
    	
Andres Cabrero
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
For any institution requiring a second signature line: 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
					

 

 

	
Name of Institution:
    	
Capital Bank Corporation
    
	
 
    	
 
    
	
 
    	
Executing as a New Term A Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Rebecca L. Hetzer
    
	
 
    	
 
    	
 
    	
Name: Rebecca L. Hetzer
    
	
 
    	
 
    	
 
    	
Title: Senior Vice President
    
					

 

 

	
Name of Institution:
    	
JPMORGAN CHASE BANK, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Courtney Eng
    
	
 
    	
 
    	
 
    	
Name: Courtney Eng
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
					

 

2

 

	
Name of Institution:
    	
GOLDMAN   SACHS BANK USA
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Annie Carr
    
	
 
    	
 
    	
 
    	
Name: Annie Carr
    
	
 
    	
 
    	
 
    	
Title: Authorized Signatory
    
					

 

2

 

	
Name of Institution:
    	
Citibank, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Tom Jons
    
	
 
    	
 
    	
 
    	
Name: Tom Jons
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
					

 

2

 

	
Name of Institution:
    	
WELLS FARGO BANK, NATIONAL   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Darcy McLaren
    
	
 
    	
 
    	
 
    	
Name: Darcy McLaren
    
	
 
    	
 
    	
 
    	
Title: Director
    
						

 

 

	
Name of Institution:
    	
Bank of America, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Aron Frey
    
	
 
    	
 
    	
 
    	
Name: Aron Frey
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
					

 

2

 

	
Name of Institution:
    	
Fifth Third Bank,
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ John A. Marian
    
	
 
    	
 
    	
 
    	
Name: John A. Marian
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
					

 

2

 

	
Name of Institution:
    	
The   Bank of Tokyo-Mitsubishi UFJ, Ltd.
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Christine   Howatt
    
	
 
    	
 
    	
 
    	
Name: Christine Howatt 
    
	
 
    	
 
    	
 
    	
Title: Authorized Signatory
    
					

 

2

 

	
Name of Institution:
    	
MORGAN STANLEY BANK, N.A.
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael   King
    
	
 
    	
 
    	
 
    	
Name: Michael King 
    
	
 
    	
 
    	
 
    	
Title: Authorized Signatory
    
					

 

2

 

	
Name of Institution:
    	
Coöperatieve Rabobank U.A., New York Branch
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ David Vernon
    
	
 
    	
 
    	
 
    	
Name: David Vernon
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Van   Brandenburg
    
	
 
    	
 
    	
 
    	
Name: Van Brandenburg
    
	
 
    	
 
    	
 
    	
Title: Executive Director
    
					

 

2

 

	
Name of Institution:
    	
Industrial and Commercial Bank of   China Limited, New York Branch
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Pinyen   Shih
    
	
 
    	
 
    	
Name: Pinyen Shih
    
	
 
    	
 
    	
Title: Executive Director
    
	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Hsiwei Chen
    
	
 
    	
 
    	
Name: Hsiwei Chen
    
	
 
    	
 
    	
Title: VP
    
				

 

2

 

	
Name of Institution:
    	
Barclays Bank PLC
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher Aitkin
    
	
 
    	
 
    	
Name: Christopher Aitkin
    
	
 
    	
 
    	
Title: Assistant Vice President
    
				

 

2

 

	
Name of Institution:
    	
ING Capital LLC
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
William B. Redmond
    
	
 
    	
 
    	
Name: William B. Redmond
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ben Whitehurst
    
	
 
    	
 
    	
Name: Ben Whitehurst
    
	
 
    	
 
    	
Title: VP
    
				

 

[Signature Page to Second Amendment to Credit Agreement]

 

 

	
Name of Institution:
    	
China Merchants Bank Co. Ltd., New York Branch
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Xin   Wang
    
	
 
    	
 
    	
Name: Xin Wang
    
	
 
    	
 
    	
Title: Department Head of   Corporate Banking U.S. Group
    
	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Xuejun (Andrew) Mao
    
	
 
    	
 
    	
Name: Xuejun (Andrew) Mao
    
	
 
    	
 
    	
Title: Deputy General Manager
    
				

 

2

 

	
Name of Institution:
    	
THE BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Laura Gimena
    
	
 
    	
 
    	
Name: Laura Gimena
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
For any institution requiring a   second signature line:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

2

 

	
Name of Institution:
    	
U. S. Bank National Association
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven   L. Sawyer
    
	
 
    	
 
    	
Name:
    	
Steven L. Sawyer
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    
					

 

2

 

	
Name of Institution:
    	
PNC Bank, National Association
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shelly   Stephenson
    
	
 
    	
 
    	
Name:
    	
Shelly Stephenson
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
For any institution requiring a second signature line: 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
						

 

2

 

	
Name of Institution:
    	
Northern Trust   Company
    
	
 
    	
 
    
	
 
    	
Executing as a New Revolving Credit Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John C. Canty
    
	
 
    	
 
    	
Name:
    	
John C. Canty
    
	
 
    	
 
    	
Title:
    	
Senior Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
For any institution requiring a second signature line: 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
					

 

2

 

ANNEX I

 

AMENDMENTS TO CREDIT AGREEMENT

 

[Changed pages to Credit Agreement follow]

 

 

EXECUTION VERSION

 

(conformed to (i) the 2017 Refinancing Amendment,
 dated as of March 21, 2017 and (ii) Second
 Amendment dated as of June 7, 2017)

 

 

CREDIT AGREEMENT

 

Dated as of June 16, 2016

 

among

PIZZA HUT HOLDINGS, LLC,

KFC HOLDING CO.

and

TACO BELL OF AMERICA, LLC,

as the Borrowers,

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Collateral Agent,

 

THE LENDERS PARTY HERETO,

 

and

 

JPMORGAN CHASE BANK, N.A.,

GOLDMAN SACHS BANK USA,

WELLS FARGO SECURITIES, LLC,

CITIGROUP GLOBAL MARKETS INC.,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

MORGAN STANLEY SENIOR FUNDING, INC.,

FIFTH THIRD BANK

and

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as Joint Lead Arrangers and Joint Bookrunners

 

BARCLAYS BANK PLC,

THE BANK OF NOVA SCOTIA,

COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH

and

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED, NEW YORK BRANCH

as Co-Documentation Agents and Co-Managers

 

 

 

Table of Contents

 

	
 
    	
Page
    
	
 
    
	
ARTICLE 1
    
	
DEFINITIONS AND ACCOUNTING TERMS
    
	
 
    
	
Section 1.01.  Defined Terms
    	
1
    
	
Section 1.02.  Other Interpretive Provisions
    	
5758
    
	
Section 1.03.  Accounting Terms
    	
5859
    
	
Section 1.04.  Rounding
    	
5860
    
	
Section 1.05.  References to Agreements, Laws, Etc
    	
5960
    
	
Section 1.06.  Times of Day
    	
5960
    
	
Section 1.07.  Timing of Payment or Performance
    	
5960
    
	
Section 1.08.  Currency Equivalents Generally
    	
5960
    
	
Section 1.09.  Certain Calculations and Tests
    	
6061
    
	
 
    
	
ARTICLE 2
    
	
THE COMMITMENTS AND CREDIT   EXTENSIONS
    
	
 
    
	
Section 2.01.  The Loans
    	
6162
    
	
Section 2.02.  Borrowings, Conversions and   Continuations of Loans
    	
6263
    
	
Section 2.03.  Letters of Credit
    	
6365
    
	
Section 2.04.  Swing Line Loans
    	
7172
    
	
Section 2.05.  Prepayments
    	
7375
    
	
Section 2.06.  Termination or Reduction of   Commitments
    	
8081
    
	
Section 2.07.  Repayment of Loans
    	
8082
    
	
Section 2.08.  Interest
    	
8183
    
	
Section 2.09.  Fees
    	
8283
    
	
Section 2.10.  Computation of Interest and Fees
    	
8283
    
	
Section 2.11.  Evidence of Indebtedness
    	
8384
    
	
Section 2.12.  Payments Generally
    	
8384
    
	
Section 2.13.  Sharing of Payments
    	
8586
    
	
Section 2.14.  Incremental Credit Extensions
    	
8587
    
	
Section 2.15.  Extensions of Term Loans and   Revolving Credit Commitments
    	
8890
    
	
Section 2.16.  Defaulting Lenders
    	
9092
    
	
Section 2.17.  Permitted Debt Exchanges
    	
9293
    
	
 
    	
 
    
	
ARTICLE 3
    
	
TAXES, INCREASED COSTS   PROTECTION AND ILLEGALITY
    
	
 
    
	
Section 3.01.  Taxes
    	
9596
    
	
Section 3.02.  Inability to Determine Rates
    	
98100
    
	
Section 3.03.  Increased Cost and Reduced   Return; Capital Adequacy; Reserves on Eurocurrency Rate Loans
    	
99101
    
	
Section 3.04.  Funding Losses
    	
100102
    
	
Section 3.05.  Matters Applicable to All   Requests for Compensation
    	
101102
    
	
Section 3.06.  Replacement of Lenders under   Certain Circumstances
    	
102103
    
	
Section 3.07.  Survival
    	
103104
    

 

i

 

	
 
    	
Page
    
	
 
    
	
ARTICLE 4
    
	
CONDITIONS PRECEDENT TO CREDIT   EXTENSIONS
    
	
 
    
	
Section 4.01.  Conditions to Closing Date
    	
103104
    
	
Section 4.02.  Conditions to All Credit   Extensions
    	
105106
    
	
 
    	
 
    
	
ARTICLE 5
    
	
REPRESENTATIONS AND WARRANTIES
    
	
 
    
	
Section 5.01.  Existence, Qualification and   Power; Compliance with Laws
    	
106107
    
	
Section 5.02.  Authorization; No Contravention
    	
106107
    
	
Section 5.03.  Governmental Authorization; Other   Consents
    	
106107
    
	
Section 5.04.  Binding Effect
    	
106108
    
	
Section 5.05.  Financial Statements; No Material   Adverse Effect
    	
106108
    
	
Section 5.06.  Litigation
    	
107108
    
	
Section 5.07.  Ownership of Property; Liens
    	
107108
    
	
Section 5.08.  Environmental Compliance
    	
107108
    
	
Section 5.09.  Taxes
    	
108109
    
	
Section 5.10.  Compliance with ERISA
    	
108109
    
	
Section 5.11.  Subsidiaries; Equity Interests
    	
108110
    
	
Section 5.12.  Margin Regulations; Investment   Company Act
    	
108110
    
	
Section 5.13.  Disclosure
    	
109110
    
	
Section 5.14.  Intellectual Property; Licenses,   Etc
    	
109110
    
	
Section 5.15.  Solvency
    	
109111
    
	
Section 5.16.  Collateral Documents
    	
109111
    
	
Section 5.17.  Use of Proceeds
    	
109111
    
	
Section 5.18.  Anti-Terrorism Laws; OFAC and Anti-Corruption   Laws
    	
110111
    
	
 
    	
 
    
	
ARTICLE 6
    
	
AFFIRMATIVE COVENANTS
    
	
 
    
	
Section 6.01.  Financial Statements
    	
110112
    
	
Section 6.02.  Certificates; Other Information
    	
111113
    
	
Section 6.03.  Notices
    	
113114
    
	
Section 6.04.  Maintenance of Existence
    	
113115
    
	
Section 6.05.  Maintenance of Properties
    	
113115
    
	
Section 6.06.  Maintenance of Insurance
    	
113115
    
	
Section 6.07.  Compliance with Laws
    	
114115
    
	
Section 6.08.  Books and Records
    	
114115
    
	
Section 6.09.  Inspection Rights
    	
114116
    
	
Section 6.10.  Covenant to Guarantee Obligations   and Give Security
    	
114116
    
	
Section 6.11.  Use of Proceeds
    	
115117
    
	
Section 6.12.  Further Assurances and   Post-Closing Covenants
    	
115117
    
	
Section 6.13.  Designation of Subsidiaries
    	
116118
    
	
Section 6.14.  Payment of Taxes
    	
117118
    
	
Section 6.15.  Nature of Business
    	
117118
    
	
Section 6.16.  Maintenance of Ratings
    	
117119
    

 

ii

 

	
 
    	
Page
    
	
 
    
	
ARTICLE 7
    
	
NEGATIVE COVENANTS
    
	
 
    
	
Section 7.01.  Liens
    	
117119
    
	
Section 7.02.  Investments
    	
121122
    
	
Section 7.03.  Indebtedness
    	
124126
    
	
Section 7.04.  Fundamental Changes
    	
128130
    
	
Section 7.05.  Dispositions
    	
130131
    
	
Section 7.06.  Restricted Payments
    	
132134
    
	
Section 7.07.  Transactions with Affiliates
    	
136137
    
	
Section 7.08.  Prepayments, Etc., of Indebtedness
    	
137139
    
	
Section 7.09.  Financial Covenants
    	
138139
    
	
Section 7.10.  Negative Pledge and Subsidiary   Distributions
    	
138140
    
	
Section 7.11.  Use of Proceeds
    	
139141
    
	
 
    	
 
    
	
ARTICLE 8
    
	
EVENTS OF DEFAULT AND REMEDIES
    
	
 
    
	
Section 8.01.  Events of Default
    	
139141
    
	
Section 8.02.  Remedies Upon Event of Default
    	
141143
    
	
Section 8.03.  Exclusion of Immaterial   Subsidiaries
    	
142144
    
	
Section 8.04.  Application of Funds
    	
142144
    
	
Section 8.05.  Right to Cure
    	
143145
    
	
 
    	
 
    
	
ARTICLE 9
    
	
ADMINISTRATIVE AGENT AND OTHER   AGENTS
    
	
 
    
	
Section 9.01.  Appointment and Authorization of   Agents
    	
144146
    
	
Section 9.02.  Delegation of Duties
    	
145147
    
	
Section 9.03.  Liability of Agents
    	
145147
    
	
Section 9.04.  Reliance by Agents
    	
146148
    
	
Section 9.05.  Notice of Default
    	
147148
    
	
Section 9.06.  Credit Decision; Disclosure of   Information by Agents
    	
147148
    
	
Section 9.07.  Indemnification of Agents
    	
147149
    
	
Section 9.08.  Agents in their Individual   Capacities
    	
148149
    
	
Section 9.09.  Successor Agents
    	
148150
    
	
Section 9.10.  Administrative Agent   May File Proofs of Claim
    	
149150
    
	
Section 9.11.  Collateral and Guaranty Matters
    	
149151
    
	
Section 9.12.  Other Agents; Arrangers and   Managers
    	
150152
    
	
Section 9.13.  Appointment of Supplemental   Administrative Agents
    	
150152
    
	
Section 9.14.  [Reserved]
    	
151153
    
	
Section 9.15.  Cash Management Obligations;   Secured Hedge Agreements
    	
151153
    
	
 
    	
 
    
	
ARTICLE 10
    
	
MISCELLANEOUS
    
	
 
    
	
Section 10.01.  Amendments, Etc
    	
152153
    
	
Section 10.02.  Notices and Other Communications;   Facsimile Copies
    	
153155
    
	
Section 10.03.  No Waiver; Cumulative Remedies
    	
155157
    

 

iii

 

	
 
    	
Page
    
	
 
    
	
Section 10.04.  Attorney Costs and Expenses
    	
156157
    
	
Section 10.05.  Indemnification by the Borrowers
    	
156158
    
	
Section 10.06.  Payments Set Aside
    	
157159
    
	
Section 10.07.  Successors and Assigns
    	
158159
    
	
Section 10.08.  Confidentiality
    	
162163
    
	
Section 10.09.  Setoff
    	
163164
    
	
Section 10.10.  Counterparts
    	
163165
    
	
Section 10.11.  Integration
    	
163165
    
	
Section 10.12.  Survival of Representations and Warranties
    	
164165
    
	
Section 10.13.  Severability
    	
164165
    
	
Section 10.14.  GOVERNING LAW, JURISDICTION, SERVICE OF   PROCESS
    	
164165
    
	
Section 10.15.  WAIVER OF RIGHT TO TRIAL BY JURY
    	
165166
    
	
Section 10.16.  Binding Effect
    	
165166
    
	
Section 10.17.    Judgment Currency
    	
165167
    
	
Section 10.18.    Lender Action
    	
165167
    
	
Section 10.19.    USA PATRIOT Act
    	
166167
    
	
Section 10.20.    Acknowledgement and Consent to Bail-In of EEA Financial   Institutions
    	
166167
    
	
Section 10.21.    Obligations Absolute
    	
166168
    
	
Section 10.22.    No Advisory or Fiduciary Responsibility
    	
167168
    
	
Section 10.23.    Joint and Several Liability
    	
167169
    

 

	
SCHEDULES
    
	
 
    	
 
    	
 
    
	
1.01A
    	
—
    	
Guarantors
    
	
1.01B
    	
—
    	
Excluded Subsidiaries
    
	
1.01C
    	
—
    	
Unrestricted   Subsidiaries
    
	
1.01D
    	
—
    	
China Entities
    
	
1.01E
    	
—
    	
Immaterial Subsidiaries
    
	
2.01
    	
—
    	
Commitments
    
	
2.03
    	
—
    	
Existing Letters of   Credit
    
	
4.01(a)
    	
—
    	
Certain Security   Interests and Guarantees
    
	
5.06
    	
—
    	
Litigation
    
	
5.11
    	
—
    	
Subsidiaries and Other   Equity Investments
    
	
6.12
    	
—
    	
Post-Closing Covenants
    
	
7.01(b)
    	
—
    	
Existing Liens
    
	
7.02
    	
—
    	
Existing Investments 
    
	
7.03(c)
    	
—
    	
Surviving Indebtedness
    
	
7.07
    	
—
    	
Transactions with   Affiliates
    
	
10.02
    	
—
    	
Administrative Agent’s   Office, Certain Addresses for Notices
    

 

iv

 

(b)                                 (i) until delivery of financial statements and a related Compliance Certificate for the first full fiscal quarter commencing on or after the ClosingSecond Amendment Effective Date pursuant to Section 6.01, (A) for Eurocurrency Rate Loans that are Term A Loans or Revolving Credit Loans, 2.251.50%, (B) for Base Rate Loans that are Term A Loans or Revolving Credit Loans, 1.250.50%, and (C) for letter of credit fees, 2.251.50% per annum, and (ii) thereafter, in connection with Revolving Credit Loans, Term A Loans and letter of credit fees, the percentages per annum set forth in the table below, based upon the Total Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):

 

	
Total Leverage Ratio
    	
 
    	
Eurocurrency Rate Loans and
   Letter of Credit Fees
    	
 
    	
Base Rate
   Loans
    	
 
    
	
Greater than or equal to   4.25:1.00
    	
 
    	
2.501.75
    	
%
    	
1.500.75
    	
%
    
	
Less than 4.25:1.00 but greater   than or equal to  2.75:1.00
    	
 
    	
2.251.50
    	
%
    	
1.250.50
    	
%
    
	
Less than 2.75:1.00
    	
 
    	
2.001.25
    	
%
    	
1.000.25
    	
%
    

 

Any change in the Applicable Rate pursuant to clauses (a) and (b) above resulting from a change in the SeuredSecured Net Leverage Ratio or Total Leverage Ratio, as applicable, shall become effective as of the first Business Day immediately following the date the applicable Compliance Certificate is delivered pursuant to Section 6.02(a).

 

Notwithstanding anything to the contrary contained above in this definition or elsewhere in this Agreement, if it is subsequently determined that the Secured Net Leverage Ratio or Total Leverage Ratio, as applicable, set forth in any Compliance Certificate delivered to the Administrative Agent is inaccurate for any reason (or a Compliance Certificate is not delivered within the time period set forth in Section 6.02) and the result thereof is that the Lenders received interest or fees for any period based on an Applicable Rate that is less than that which would have been applicable had the Secured Net Leverage Ratio or Total Leverage Ratio, as applicable, been accurately determined, then, for all purposes of this Agreement, the “Applicable Rate” for any day occurring within the period covered by such Compliance Certificate shall retroactively be deemed to be the relevant percentage as based upon the accurately determined Secured Net Leverage Ratio or Total Leverage Ratio for such period, as applicable, and any shortfall in the interest or fees theretofore paid by the Borrowers for the relevant period pursuant to Section 2.08 and Section 2.09 as a result of the miscalculation of the Secured Net Leverage Ratio or Total Leverage Ratio, as applicable, shall be deemed to be (and shall be) due and payable under the relevant provisions of Section 2.08 or Section 2.09, as applicable, within ten (10) Business Days following the determination described above.

 

Notwithstanding the foregoing, the Applicable Rate in respect of any Class of Incremental Revolving Credit Commitments or Extended Revolving Credit Commitments and any Incremental Term Loans, Extended Term Loans or Revolving Credit Loans made pursuant to any Incremental Revolving Credit Commitments or Extended Revolving Credit Commitments shall be the applicable percentages per annum set forth in the relevant Incremental Facility Amendment or Extension Offer.

 

“Appropriate Lender” means, at any time, (a) with respect to Loans of any Class, the Lenders of such Class (b) with respect to any Letters of Credit, (i) the relevant L/C Issuer and (ii) the Revolving Credit Lenders and (c) with respect to Swing Line Loans, (i) the Swing Line Lender and (ii) if any Swing Line Loans are outstanding pursuant to Section 2.04(a), the Revolving Credit Lenders.

 

“Approved Foreign Bank” has the meaning specified in the definition of “Cash Equivalents.”

 

4

 

the Lead Borrower, that perfection cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required by this Agreement or the Collateral Documents.

 

Notwithstanding the foregoing provisions of this definition or anything in this Agreement or any other Loan Document to the contrary:

 

(A)                               Liens required to be granted from time to time pursuant to the Collateral and Guarantee Requirement shall be subject to exceptions and limitations set forth in the Collateral Documents and, to the extent appropriate in the applicable jurisdiction, as agreed between the Administrative Agent and the Lead Borrower;

 

(B)                               the Collateral and Guarantee Requirement shall not apply to any Excluded Property;

 

(C)                               no actions in any jurisdiction other than the U.S. or that are necessary to comply with the Laws of any jurisdiction other than the U.S. shall be required in order to create any security interests in assets located, titled, registered or filed outside of the U.S. or to perfect such security interests (it being understood that there shall be no security agreements, pledge agreements, or share charge (or mortgage) agreements governed under the Laws of any jurisdiction other than the U.S.); and

 

(D)                               no stock certificates of Immaterial Subsidiaries shall be required to be delivered to the Collateral Agent.

 

“Collateral Documents” means, collectively, the Security Agreement, the Mortgages, each of the collateral assignments, Security Agreement Supplements, security agreements, pledge agreements or other similar agreements delivered to the Collateral Agent and the Lenders pursuant to Section 4.01(a)(iv), Section 6.10 or Section 6.12, the Guaranty and each of the other agreements, instruments or documents that creates or purports to create a Lien or Guarantee in favor of the Collateral Agent for the benefit of the Secured Parties.

 

“Commitment” means a Term Commitment, a Revolving Credit Commitment or an Extended Revolving Credit Commitment.

 

“Commitment Fee” has the meaning provided in Section 2.09(a).

 

“Commitment Fee Rate” means a per annum rate equal to, (a) until delivery of financial statements and a related Compliance Certificate for the first full fiscal quarter commencing on or after the ClosingSecond Amendment Effective Date pursuant to Section 6.01, 0.3750.35% and (ii) thereafter, the percentages per annum set forth in the table below, based upon the Total Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a).

 

	
Total Leverage Ratio
    	
 
    	
Commitment Fee Rate
    	
 
    
	
Greater than or equal to   4.25:1.00
    	
 
    	
0.450.40
    	
%
    
	
Less than 4.25:1.00 but greater   than or equal to 2.75:1.00
    	
 
    	
0.3750.35
    	
%
    
	
Less than 2.75:1.00
    	
 
    	
0.30
    	
%
    

 

“Committed Loan Notice” means a notice of (a) a Term Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion of Loans from one Type to the other, or (d) a continuation of Eurocurrency

 

13

 

selected by Citibank, N.A., (iv) Wells Fargo Bank, National Association or any of its Affiliates selected by Wells Fargo Bank, National Association or (v) any other Lender (or any of its Affiliates) that becomes an L/C Issuer in accordance with Section 2.03(j) or Section 10.07(j); in the case of each of clause (i) through (iv) above, in its capacity as an issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“L/C Issuer Sublimit” means (i) with respect to JPMCB, $75,000,00040,000,000, (ii) with respect to Goldman Sachs, $75,000,00040,000,000, (iii) with respect to Citibank, N.A., $75,000,00040,000,000, (iv) with respect to Wells Fargo Bank, National Association, $75,000,00040,000,000 and (v) with respect to any L/C Issuer described in clause (v) of the definition thereof, such amount as may be agreed between such L/C Issuer and the Borrowers.

 

“L/C Obligation” means, as at any date of determination, the aggregate Dollar Equivalent maximum amount then available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts in respect of Letters of Credit, including all L/C Borrowings.  For all purposes under this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.13 or 3.14 of the ISP, the “Outstanding Amount” of such Letter of Credit shall be deemed to be the amount so remaining available to be drawn. The L/C Obligation of any Revolving Credit Lender at any time shall be its Applicable Percentage of the aggregate L/C Obligations at such time.

 

“LCA Election” has the meaning specified in Section 1.09(a).

 

“LCA Test Date” has the meaning specified in Section 1.09(a).

 

“Lead Arrangers” means (i) with respect to the Facilities provided on the Closing Date, JPMorgan Chase Bank, N.A., Goldman Sachs, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC in their capacities as Joint Lead Arrangers and Joint Bookrunners under this Agreement and (ii) with respect to the 2017 Refinancing Amendment, JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, Goldman Sachs and Citigroup Global Markets Inc. in their capacities as Joint Lead Arrangers and Joint Bookrunners under the 2017 Refinancing Amendment.

 

“Lead Borrower” means KFC Holding Co.

 

“Lender” has the meaning specified in the introductory paragraph to this Agreement and, as the context requires, includes an L/C Issuer and the Swing Line Lender, and their respective successors and assigns as permitted hereunder, each of which is referred to herein as a “Lender.”

 

“Lender Participation Notice” has the meaning specified in Section 2.05(d)(iii).

 

“Letter of Credit” means any letter of credit issued hereunder.  A Letter of Credit may be a commercial letter of credit or a standby letter of credit. Notwithstanding anything to the contrary herein, Goldman Sachs shall only be required to issue standby letters of credit hereunder.

 

“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the relevant L/C Issuer.

 

“Letter of Credit Expiration Date” means, for Letters of Credit under the Revolving Credit Facility, the day that is five (5) Business Days prior to the scheduled Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next preceding Business Day).

 

38

 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) $300,000,000160,000,000 and (b) the aggregate amount of the Revolving Credit Commitments.

 

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, assignment (by way of security or otherwise), deemed trust, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any Capitalized Lease having substantially the same economic effect as any of the foregoing).

 

“Limited Condition Acquisition” means any acquisition, including by way of merger, by one or more of the Companies and/or the Restricted Subsidiaries permitted pursuant to this Agreement whose consummation is not conditioned upon the availability of, or on obtaining, third party financing.

 

“Loan” means an extension of credit by a Lender to a Borrower under Article 2 in the form of a Term Loan, a Revolving Credit Loan or a Swing Line Loan (including any Incremental Term Loans, any Extended Term Loans, loans made pursuant to any Incremental Revolving Credit Commitment or loans made pursuant to Extended Revolving Credit Commitments).

 

“Loan Documents” means, collectively, (i) this Agreement, (ii) the Notes, (iii) each Guaranty, (iv) the Collateral Documents, and (v) each Letter of Credit Application, in each case as amended.

 

“Loan Parties” means, collectively, (i) each of the Companies and (ii) each of the Subsidiary Guarantors.

 

“Local Time” means (a) local time in New York City, with respect to the times for (i) the determination of “Dollar Equivalent” and (ii) the receipt and sending of notices by and to and the disbursement by or payment to the Administrative Agent, any L/C Issuer or Lender with respect to Loans and Letters of Credit denominated in Dollars; (b) local time in London, England, with respect to the time for the receipt and sending of notices by and to the Administrative Agent, any L/C Issuer or any Lender with respect to Loans and Letters of Credit denominated in Euro and British Pound Sterling; (c) local time in London, England, with respect to the disbursement by or payment to the Administrative Agent or any Lender with respect to Loans and Letters of Credit denominated in Euro and British Pound Sterling; (d) local time in such other jurisdiction as the Administrative Agent may specify with respect to the disbursement by or payment to the Administrative Agent or any Lender with respect to Loans and Letters of Credit denominated in any other Revolving Alternative Currency; and (f) in all other circumstances, New York, New York time.

 

“LTM EBITDA” means, with respect to the Companies and the Restricted Subsidiaries, Consolidated EBITDA for the most recently ended Test Period on a Pro Forma Basis.

 

“Master Agreement” has the meaning specified in the definition of “Swap Contract.”

 

“Material Adverse Effect” means (a) a material adverse effect on the business, operations, assets, liabilities (actual or contingent) or financial condition of the Companies and the Restricted Subsidiaries, taken as a whole, (b) a material adverse effect on the ability of the Loan Parties (taken as a whole) to perform their respective payment obligations under any Loan Document to which any of the Loan Parties is a party or (c) a material adverse effect on the rights and remedies of the Lenders or the Agents under any Loan Document.

 

39

 

“Material Real Property” means, as of any date, any real property owned in fee simple by a Loan Party on such date located in the United States (including the land, improvements and fixtures thereon) with a book value in excess of $10,000,000.

 

“Material Subsidiary” means, at any date of determination, each Restricted Subsidiary of the Companies that is not an Immaterial Subsidiary (but including, in any case, any Restricted Subsidiary that has been designated as a Material Subsidiary as provided in, or has been designated as an Immaterial Subsidiary in a manner that does not comply with, the definition of “Immaterial Subsidiary”).

 

“Maturity Date” means (a) with respect to the Revolving Credit Facility, the fifth anniversary of the ClosingSecond Amendment Effective Date (and, with respect to any Extended Revolving Credit Commitments, the maturity date applicable to such Extended Revolving Credit Commitments in accordance with the terms hereof), (b) with respect to the Term B Facility, the seventh anniversary of the Closing Date, (c) with respect to the Term A Facility, the fifth anniversary of the Closing dateSecond Amendment Effective Date, and (d) with respect to any (i) Extended Term Loan, the maturity date applicable to such Extended Term Loan in accordance with the terms hereof or (ii) Incremental Term Loan, the maturity date applicable to such Incremental Term Loan in accordance with the terms hereof; provided that if any such day is not a Business Day, the Maturity Date shall be the Business Day immediately preceding such day.

 

“Maximum Tender Condition” has the meaning specified in Section 2.17(b).

 

“Minimum Extension Condition” has the meaning specified in Section 2.15(b).

 

“Minimum Tender Condition” has the meaning specified in Section 2.17(b).

 

“Minimum Tranche Amount” has the meaning specified in Section 2.15(b).

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

“Mortgage” means, collectively, the deeds of trust, trust deeds, deeds of hypothecation, security deeds, immovable hypothecs, and mortgages creating and evidencing a Lien on a Mortgaged Property made by the applicable Loan Parties in favor or for the benefit of the Collateral Agent on behalf of the Secured Parties in form and substance reasonably satisfactory to the Collateral Agent, including the Mortgages executed and delivered pursuant to Sections 6.10 or 6.12.

 

“Mortgage Policies” has the meaning specified in clause (ii) of the definition of Mortgage Requirement.

 

“Mortgaged Property” means each Material Real Property (including all right, title and interest of the applicable Loan party in and to all easements, hereditaments and appurtenances relating thereto, all improvements, fixtures and equipment thereon and all general intangibles and contract rights and other property rights incidental to ownership of such Material Real Property), if any, which shall be subject to a Mortgage delivered pursuant to Sections 6.10 or 6.12.

 

“Mortgage Requirement” means, at any time, the requirement that the Collateral Agent shall have received the following:

 

40

 

contributions, or during the immediately preceding six (6) years, has made or been obligated to make contributions.

 

“Net Cash Proceeds” means:

 

(a)                                 with respect to the Disposition of any asset by any Company or any Restricted Subsidiary or any Casualty Event, the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such Disposition or Casualty Event (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received and, with respect to any Casualty Event, any insurance proceeds or condemnation awards in respect of such Casualty Event actually received by or paid to or for the account of any Company or any Restricted Subsidiary) over (ii) the sum of (A) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness that is secured by the asset subject to such Disposition or Casualty Event and that is required to be repaid (and is timely repaid) in connection with such Disposition or Casualty Event (other than Indebtedness under the Loan Documents and Indebtedness that is secured by Liens ranking junior to or pari  passu with the Liens securing Indebtedness under the Loan Documents), (B) the out-of-pocket fees and expenses (including attorneys’ fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, other customary expenses and brokerage, consultant and other customary fees) actually incurred by such Company or Restricted Subsidiary, as applicable, in connection with such Disposition or Casualty Event, (C) taxes paid or reasonably estimated to be actually payable in connection therewith (including, for the avoidance of doubt, any income, withholding and other taxes payable as a result of the distribution of such proceeds to a Company and after taking into account any available tax credit or deductions and any tax sharing agreements, and including distributions for Permitted Tax Distributions), and (D) any reserve for adjustment in respect of (x) the sale price of such asset or assets established in accordance with GAAP and (y) any liabilities associated with such asset or assets and retained by the Companies or any Restricted Subsidiary after such sale or other disposition thereof, including pension and other post-employment benefit liabilities and Environmental Liabilities or with respect to any indemnification obligations associated with such transaction, it being understood that “Net Cash Proceeds” shall include (i) any cash or Cash Equivalents received upon the Disposition of any non-cash consideration by the Companies or any Restricted Subsidiary in any such Disposition and (ii) upon the reversal (without the satisfaction of any applicable liabilities in cash in a corresponding amount) of any reserve described in clause (D) above or if such liabilities have not been satisfied in cash and such reserve is not reversed within 365 days after such Disposition or Casualty Event, the amount of such reserve; and

 

(b)                                 (i) with respect to the incurrence or issuance of any Indebtedness by any Company or any Restricted Subsidiary, the excess, if any, of (x) the sum of the cash received in connection with such incurrence or issuance over (y) the investment banking fees, underwriting discounts, commissions, costs and other out-of-pocket expenses and other customary expenses incurred by such Company or such Restricted Subsidiary in connection with such incurrence or issuance and (ii) with respect to any Permitted Equity Issuance by any direct or indirect parent of any Company, the amount of cash from such Permitted Equity Issuance contributed to the capital of any such Company.

 

“New Revolving Credit Commitment” means, the “New Revolving Credit Commitments” as defined in, made available under and amended in accordance with the Second Amendment.

 

42

 

“New Revolving Credit Lender” means, at any time, each Lender holding a New Revolving Credit Commitment at such time.

 

“New Revolving Credit Loan” means, the “New Revolving Credit Loans” as defined in the Second Amendment.

 

“New Term A Commitment” means, the “New Term A Commitments” as defined in and made in accordance with the Second Amendment.

 

“New Term A Lender” means, at any time, each Lender holding a New Term A Loan at such time.

 

“New Term A Loan” means, the “New Term A Loans” as defined in and made in accordance with the Second Amendment.

 

“New Term B Lender” means, at any time, each Lender holding a New Term B Loan at such time.

 

“New Term B Loan” means, the “New Term B Loans” as defined in, and made and /or converted in accordance with the 2017 Refinancing Amendment.

 

“New York Fed” means the Federal Reserve Bank of New York.

 

“New York Fed Bank Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day; provided that if both such rates are not so published for any day that is a Business Day, the term “New York Fed Bank Rate” means the rate quoted for such day for a federal funds transaction at 11:00 a.m. on such day as determined by the Administrative Agent; and provided  further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Non-Consenting Lender” has the meaning specified in Section 3.06(d).

 

“Non-Loan Party” means any Restricted Subsidiary that is not a Loan Party.

 

“Nonrenewal Notice Date” has the meaning specified in Section 2.03(b)(iii).

 

“Note” means a Term Note or a Revolving Credit Note as the context may require.

 

“Obligations” means all (w) advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party or other Subsidiary arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any other Subsidiary of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding, (x) obligations of any Loan Party or any other Subsidiary arising under any Secured Hedge Agreement (other than, with respect to any Guarantor, Excluded Swap Obligations of such Guarantor), (y) Cash Management Obligations and (z) Bilateral L/C Obligations.  Without limiting the generality of the foregoing, the Obligations of the Loan Parties under the Loan Documents (and of any of their Subsidiaries to the extent they have obligations under the Loan Documents) include (a) the obligation (including guarantee obligations) to pay principal, interest, Letter of Credit commissions, reimbursement obligations, charges, expenses, fees, Attorney Costs,

 

43

 

Agreement, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Revolving Credit Commitment, as the case may be.  The initialamount of each Lender’s New Revolving Credit Commitment as of the Second Amendment Effective Date is set forth on Schedule 2 to the Second Amendment. The aggregate amount of the Lenders’ Revolving Credit Commitments on the ClosingSecond Amendment Effective Date is $1,000,000,000.

 

“Revolving Credit Exposure” means, at any time for any Lender, the sum of (a) the Outstanding Amount of the Revolving Credit Loans of such Lender outstanding at such time, (b) the L/C Obligation of such Lender at such time and (c) the Swing Line Exposure of such Lender at such time.

 

“Revolving Credit Facility” means the Revolving Credit Commitments and the extension of credit made thereunder.

 

“Revolving Credit Lender” means a Lender with a Revolving Credit Commitment or, if the Revolving Credit Commitments have terminated or expired, a Lender with Revolving Credit Exposure.

 

“Revolving Credit Loan” means a Loan made pursuant to Section 2.01(c). For the avoidance of doubt, from and after the Second Amendment Effective Date, New Revolving Credit Loans shall constitute Revolving Credit Loans.

 

“Revolving Credit Note” means a promissory note of the Borrowers payable to any Revolving Credit Lender or its registered assigns, in substantially the form of Exhibit C-2 hereto with appropriate insertions, evidencing the aggregate Indebtedness of the Borrowers to such Revolving Credit Lender resulting from the Revolving Credit Loans made by such Revolving Credit Lender under the Revolving Credit Facility.

 

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, and any successor thereto.

 

“Sale Leaseback” means any transaction or series of related transactions pursuant to which any of the Companies or Restricted Subsidiaries (a) sells, transfers or otherwise disposes of any property, real or personal, whether now owned or hereafter acquired, and (b) as part of such transaction, thereafter rents or leases such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold, transferred or disposed.

 

“Sanctions Laws and Regulations” means (a) any sanctions or requirements imposed by, or based upon the obligations or authorities set forth in, the USA PATRIOT Act, Executive Order No. 13224 of September 23, 2001, entitled Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), the U.S. International Emergency Economic Powers Act (50 U.S.C. §§ 1701 et seq.), the U.S. Trading with the Enemy Act (50 U.S.C. App. §§ 1 et seq.), the U.S. Syria Accountability and Lebanese Sovereignty Act, the U.S. Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 or the Iran Sanctions Act, Section 1245 of the National Defense Authorization Act of 2012, all as amended, or any of the foreign assets control regulations (including but not limited to 31 C.F.R., Subtitle B, Chapter V, as amended) or any other law, regulation or executive order relating thereto administered by the U.S. Department of the Treasury Office of Foreign Assets Control (“OFAC”) or the U.S. Department of State, or any similar law, regulation, or executive order enacted in the United States after the date of this Agreement and (b) any sanctions imposed or administered by the United Nations Security Council, the European Union or Her Majesty’s Treasury or, to the extent applicable to any Company or any Restricted Subsidiary, by any European Union Member State.

 

51

 

“SEC” means the Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal functions.

 

“Second Amendment” means that certain Refinancing Amendment No. 2 to the Credit Agreement, dated as of June 7 2017 among the Loan Parties, the Administrative Agent, each L/C Issuer, each Swing Line Lender, each New Term A Lender and each New Revolving Credit Lender.

 

“Second Amendment Effective Date” means June 7, 2017.

 

“Secured Hedge Agreement” means any Swap Contract that is entered into by and between any Loan Party (or any Person that merges into a Loan Party) or any Restricted Subsidiary and any Hedge Bank.

 

“Secured Net Leverage Ratio” means, with respect to any Test Period, the ratio of (a) Consolidated Total Debt (other than any portion of Consolidated Total Debt that is unsecured) as of the last day of such Test Period to (b) Consolidated EBITDA of the Companies for such Test Period.

 

“Secured Parties” means, collectively, the Administrative Agent, the Collateral Agent, the Lead Arrangers, the Documentation Agents, the Co-Managers, the Lenders, the Hedge Banks, the Bilateral L/C Providers, the Cash Management Banks, the Supplemental Administrative Agent and each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.01(c).

 

“Securities Act” means the Securities Act of 1933.

 

“Securitization Asset” means any accounts receivable, real estate asset, mortgage receivables or related assets relating to a Permitted Receivables Financing.

 

“Securitization Fees” means distributions or payments made directly or by means of discounts with respect to any Securitization Asset or participation interest therein issued or sold in connection with, and other fees paid to a person that is not a Restricted Subsidiary in connection with, any Permitted Receivables Financing.

 

“Securitization Non-Disturbance Agreement” means an Acknowledgement and Waiver Agreement, dated as of the Closing Date (as amended, restated supplemented and otherwise modified from time to time), in form reasonably satisfactory to the Administrative Agent and the Borrowers, by the Collateral Agent and acknowledged, agreed and consented to by Citibank, N.A in its capacity as trustee under the Base Indenture.

 

“Securitization Repurchase Obligation” means any obligation of a seller of Securitization Assets in a Permitted Receivables Financing to repurchase Securitization Assets arising as a result of a breach of a representation, warranty or covenant, including as a result of a receivable or portion thereof becoming subject to any asserted defense, dispute, offset or counterclaim of any kind as a result of any action taken by, any failure to take action by or any other event relating to the seller.

 

“Securitization Subsidiary” means any Subsidiary in each case formed for the purpose of and that solely engages in one or more Permitted Receivables Financings and other activities reasonably related thereto.

 

52

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) $100,000,000 and (b) the aggregate principal amount of the Revolving Credit Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Revolving Credit Commitments.

 

“Taco Bell Unrestricted Entities” means, collectively, Taco Bell Funding, LLC and its subsidiaries.

 

“TARGET Day” means any day on which (i) TARGET2 is open for settlement of payments in Euro and (ii) banks are open for dealings in deposits in Euro in the London interbank market.

 

“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilizes a single shared platform and which was launched on November 19, 2007.

 

“Taxes” means all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges imposed by any Governmental Authorities, and additions to tax, penalties and interest with respect thereto.

 

“Term A Commitment” means, as to each Term A Lender that is a New Term A Lender, its obligation to make a New Term A Loan to a Borrower pursuant to Section 2.01 in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule 2.012 to the Second Amendment under the caption “New Term A Commitment” or in the Assignment and Assumption pursuant to which such Term A Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.  The initial aggregate amount of the Term A Commitments as of the Second Amendment Effective Date is $500,000,000.

 

“Term A Lender” means, at any time, any Lender that has a Term A Commitment or a Term A Loan outstanding.

 

“Term A Loan” means a Loan made pursuant to Section 2.01(a).  For the avoidance of doubt, from and after the Second Amendment Effective Date, New Term A Loans shall constitute Term A Loans.

 

“Term B Lender” means, at any time, any Lender that has a Term B Loan outstanding.

 

“Term B Loan” means a Loan made pursuant to Section 2.01(a). For the avoidance of doubt, after the 2017 Refinancing Amendment Effective Date, New Term B Loans shall constitute Term B Loans.

 

“Term Borrowing” means a Borrowing in respect of a Class of Term Loans.

 

“Term Commitments” means a Term A Commitment or a commitment in respect of any Incremental Term Loans or any combination thereof, as the context may require.

 

“Term Lenders” means the Term A Lenders, the Term B Lenders, the Lenders with Incremental Term Loans and the Lenders with Extended Term Loans.

 

“Term Loans” means the Term A Loans, the Term B Loans, the Incremental Term Loans and the Extended Term Loans.

 

56

 

EBITDA) at or prior to the consummation of the relevant Limited Condition Acquisition, such ratios and other provisions will not be deemed to have been exceeded as a result of such fluctuations solely for purposes of determining whether the Limited Condition Acquisition is permitted hereunder and (y) such ratios and other provisions shall not be tested at the time of consummation of such Limited Condition Acquisition or related Specified Transactions. If the Lead Borrower has made an LCA Election for any Limited Condition Acquisition, then in connection with any subsequent calculation of any ratio (excluding, for the avoidance of doubt, any ratio contained in Section 7.09) or basket availability with respect to any other Specified Transaction on or following the relevant LCA Test Date and prior to the earlier of the date on which such Limited Condition Acquisition is consummated or the date that the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of such Limited Condition Acquisition, any such ratio or basket shall be calculated both (x) on a Pro Forma Basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated and (y) without giving effect to such Limited Condition Acquisition and other transactions.

 

(b)                                 Notwithstanding anything to the contrary herein, with respect to any amounts incurred or transactions entered into (or consummated) in reliance on a provision of this Agreement that does not require compliance with a financial ratio or test (including, without limitation, pro forma compliance with Section 7.09 hereof, any First Lien Senior Secured Leverage Ratio test, any Secured Net Leverage Ratio test, any Total Leverage Ratio test and/or any Consolidated Adjusted Fixed Charge Coverage Ratio test) (any such amounts, the “Fixed Amounts”) substantially concurrently with any amounts incurred or transactions entered into (or consummated) in reliance on a provision of this Agreement that requires compliance with any such financial ratio or test (any such amounts, the “Incurrence Based Amounts”), it is understood and agreed that the Fixed Amounts (and any cash proceeds thereof) shall be disregarded in the calculation of the financial ratio or test applicable to the Incurrence-Based Amounts in connection with such substantially concurrent incurrence; provided that this clause (b) shall apply solely with respect to the incurrence of Incremental Facilities, Permitted Credit Facilities Acquisition Debt and Permitted Alternative Incremental Facilities Debt and shall not apply to any amounts incurred or transactions entered into (or consummated) in reliance on any provision of Article VII (other than Section 7.03(t) and Section 7.03(v)).

 

ARTICLE 2

 

The Commitments and Credit Extensions

 

Section 2.01.                          The Loans. Subject to the terms and conditions set forth herein:

 

(a)                                 The Term A Borrowings. EachSubject to the terms and conditions set forth herein and in the Second Amendment, each New Term A Lender severally agrees to make to the Borrowers a single loan denominated in Dollars in a principal amount equal to such New Term A Lender’s New Term A Commitment on the ClosingSecond Amendment Effective Date. Amounts borrowed under this Section 2.01(a) and repaid or prepaid may not be reborrowed. Term A Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

(b)                                 The Term B Borrowings. Subject to the terms and conditions set forth herein and in the 2017 Refinancing Amendment, (i) each Continuing Term B Lender (as defined in the 2017 Refinancing Amendment) has agreed to continue all (or such lesser amount as the applicable Lead Arrangers may allocate) of its existing Term B Loans (as defined in the Existing Credit Agreement) outstanding on the 2017 Refinancing Amendment Effective Date as New Term B Loans and (ii) each Additional Term B Lender (as defined in the 2017 Refinancing Amendment) has agreed to make to the Borrowers a single loan denominated in Dollars in a principal amount equal to such Additional Term B Lender’s Additional Term B

 

62

 

in Section 3.06). All Commitment Fees accrued until the effective date of any termination of the Revolving Credit Commitments shall be paid on the effective date of such termination.

 

Section 2.07.                          Repayment of Loans.

 

(a)                                 Term A Loans. The Borrowers shall repay to the Administrative Agent for the ratable account of the Term Lenders holding each Class of Term A Loans in Dollars (i) on the last Business Day of each March, June, September and December, commencing with the second such date to occur after the ClosingSecond Amendment Effective Date, an aggregate principal amount equal to the applicable percentage set forth below of the aggregate principal amount of the New Term A Loans funded on the ClosingSecond Amendment Effective Date and (ii) on the Maturity Date for the Term A Loans, the aggregate principal amount of all Term A Loans outstanding on such date; provided that payments required by Section 2.07(a)(i) shall be reduced as a result of the application of prepayments in accordance with Section 2.05.

 

	
Payment Dates (commencing with the   first payment date
   occurring at least one full fiscal quarter after the
    ClosingSecond Amendment Effective Date):
    	
 
    	
Quarterly Amortization
   Percentage:
    	
 
    
	
First four payment dates
    	
 
    	
0
    	
%
    
	
Second four payment dates
    	
 
    	
1.25
    	
%
    
	
Third four payment dates
    	
 
    	
1.25
    	
%
    
	
Fourth four payment dates
    	
 
    	
1.875
    	
%
    
	
Fifth four payment dates
    	
 
    	
3.75
    	
%
    

 

(b)                                 Term B Loans. The Borrowers shall repay to the Administrative Agent for the ratable account of the Term Lenders holding each Class of Term B Loans in Dollars (i) on the last Business Day of each March, June, September and December, commencing with the second such date to occur after the 2017 Refinancing Amendment Effective Date, an aggregate principal amount equal to 0.25% of the aggregate principal amount of the Term B Loans funded on the 2017 Refinancing Amendment Effective Date and (ii) on the Maturity Date for the Term B Loans, the aggregate principal amount of all Term B Loans outstanding on such date; provided that payments required by Section 2.07(b)(i) shall be reduced as a result of the application of prepayments in accordance with Section 2.05. In the event any Incremental Term Loans or Extended Term Loans are made, such Incremental Term Loans or Extended Term Loans, as applicable, shall be repaid by the Borrowers in the amounts and on the dates set forth in the definitive documentation with respect thereto and on the applicable Maturity Date thereof.

 

(c)                                  Revolving Credit Loans. The Borrowers shall repay to the Administrative Agent for the ratable account of the Appropriate Lenders on the Maturity Date for the Revolving Credit Facility the principal amount of each of its Revolving Credit Loans outstanding on such date in the currency in which such Revolving Credit Loan is denominated.

 

(d)                                 Swing Line Loans. The Borrowers shall repay its Swing Line Loans on the earlier to occur of (i) the date five (5) Business Days after such Loan is made and (ii) the Maturity Date for the Revolving Credit Facility.

 

Section 2.08.                          Interest.

 

82

 

such purposes only, shall be deemed to include all upfront or similar fees or original issue discount (with original issue discount being equated to interest based on an assumed four-year life to maturity) payable to all Lenders providing the Term B Loans (but excluding customary arrangement or commitment fees payable to any arranger, bookrunner or agent or their Affiliates in connection therewith)) relating to any Term B Loans immediately prior to the effectiveness of the applicable Incremental Facility Amendment by more than 0.50%, the Applicable Rate relating to such Term B Loans shall be adjusted to be equal to the Applicable Rate (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount (with original issue discount being equated to interest based on an assumed four-year life to maturity) payable to all lenders providing such Incremental Term Loans that are “term loan Bs” (but excluding customary arrangement or commitment fees payable to any arranger or bookrunner or their Affiliates in connection therewith)) relating to such Incremental Term Loans that are “term loan Bs” minus 0.50% and (B) if the Applicable Rate (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount (with original issue discount being equated to interest based on an assumed four-year life to maturity) payable to all lenders providing such Incremental Term Loans that are “term loan As” (but excluding customary arrangement or commitment fees payable to any arranger or bookrunner or their Affiliates in connection therewith)) relating to any Term Loans that are “term loan As” exceeds the Applicable Rate (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount (with original issue discount being equated to interest based on an assumed four-year life to maturity) payable to all Lenders providing the Term A Loans (but excluding customary arrangement or commitment fees payable to any arranger, bookrunner or agent or their Affiliates in connection therewith)) relating to any Term A Loans immediately prior to the effectiveness of the applicable Incremental Facility Amendment by more than 0.50%, the Applicable Rate relating to such Term A Loans shall be adjusted to be equal to the Applicable Rate (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount (with original issue discount being equated to interest based on an assumed four-year life to maturity) payable to all lenders providing such Incremental Term Loans that are “term loan As” (but excluding customary arrangement or commitment fees payable to any arranger or bookrunner or their Affiliates in connection therewith)) relating to such Incremental Term Loans that are “term loan As” minus 0.50%; provided that, in the case of each of (A) and (B), if the Incremental Term Loans include an interest rate floor greater than the applicable interest rate floor under such Term Loans, such differential between interest rate floors shall be equated to the Applicable Rate for purposes of determining whether an increase to the Applicable Rate under such Term Loans shall be required, but only to the extent an increase in the interest rate floor in such Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case the interest rate floor (but not the Applicable Rate) applicable to such Term Loans shall be increased to the extent of such differential between interest rate floors), (iii) the final maturity date of any Incremental Term Loan (x) that is a “term loan A” shall be no earlier than the latest Maturity Date with respect to Term A Loans and (y) that is a “term loan B” shall be no earlier than the latest Maturity Date with respect to with respect to Term B Loans, (iv) the Weighted Average Life to Maturity of any Incremental Term Loan (x) that is a “term loan A” shall be no shorter than the Weighted Average Life to Maturity of the Term A Loans and (y) that is a “term loan B” shall be no shorter than the Weighted Average Life to Maturity of the Term B Loans and (v) shall otherwise have the same terms as the applicable Class of Term Loans or such terms as are reasonably satisfactory to the Administrative Agent.

 

(c)                                  Any Incremental Revolving Credit Commitment (other than, in the case of clause (c)(i) and (c)(iii) below, any Refinancing Revolving Credit Commitment) shall (i) have the same maturity date as the Revolving Credit Commitments, (ii) require no scheduled amortization or mandatory commitment reduction prior to the final maturity of the Revolving Credit Commitments and (iii) be on the same terms and pursuant to the same documentation applicable to the Revolving Credit Commitments.; provided that in the case of any Incremental Revolving Credit Commitments designated as Refinancing Revolving Credit Commitments, such Refinancing Revolving Credit Commitments (i) shall have interest rate margins as determined by the Borrowers and the lenders thereunder, (ii) shall not have a Maturity Date that is prior to

 

88

 

the Revolving Maturity Date of the Revolving Credit Commitments being refinanced and (iii) shall otherwise have the same terms as the Revolving Credit Commitments or Revolving Credit Loans being refinanced or such terms as are reasonably satisfactory to the Administrative Agent;

 

(d)                                 Each notice from the Borrowers pursuant to this Section 2.14 shall set forth the requested amount and proposed terms of the relevant Incremental Term Loans and/or Incremental Revolving Credit Commitments. Any additional bank, financial institution, existing Lender or other Person that elects to extend Incremental Term Loans or Incremental Revolving Credit Commitments shall be reasonably satisfactory to the Borrowers and the Administrative Agent (any such bank, financial institution, existing Lender or other Person being called an “Additional Lender”) and, if not already a Lender, shall become a Lender under this Agreement pursuant to an amendment (an “Incremental Facility Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrowers, such Additional Lender, the Administrative Agent and, in the case of any Incremental Revolving Credit Commitments, each L/C Issuer and each Swing Line Lender. No Incremental Facility Amendment shall require the consent of any Lenders other than the Additional Lenders with respect to such Incremental Facility Amendment. No Lender shall be obligated to provide any Incremental Term Loans or Incremental Revolving Credit Commitments, unless it so agrees. An Incremental Facility Amendment may, without the consent of any other Lenders, effect such amendments to any Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 2.14. The effectiveness of any Incremental Facility Amendment shall, unless otherwise agreed to by the Administrative Agent and the Additional Lenders, be subject to the satisfaction on the date thereof (each, an “Incremental Facility Closing Date”) of each of the conditions set forth in Section 4.02 (it being understood that (x) all references to “the date of such Credit Extension” in Section 4.02 shall be deemed to refer to the Incremental Facility Closing Date and (y) if the proceeds of such Incremental Facility are to be used, in whole or in part, to finance a Limited Condition Acquisition, (1) the only representations and warranties that will be required to be true and correct in all material respects as of the applicable Incremental Facility Closing Date shall be customary “specified representations” as agreed by the Borrowers and the applicable lenders providing such Incremental Facility and (2) Section 4.02(b) shall apply solely with respect to a Default pursuant to Section 8.01(f) or (g)). Upon each increase in the Revolving Credit Commitments pursuant to this Section 2.14, each Revolving Credit Lender immediately prior to such increase will automatically and without further act be deemed to have assigned to each Lender providing a portion of the Incremental Revolving Credit Commitment (each, an “Incremental Revolving Lender”) in respect of such increase, and each such Incremental Revolving Lender will automatically and without further act be deemed to have assumed, a portion of such Revolving Credit Lender’s participations hereunder in outstanding Letters of Credit and Swing Line Loans such that, after giving effect to each such deemed assignment and assumption of participations, the percentage of the aggregate outstanding (i) participations hereunder in Letters of Credit and (ii) participations hereunder in Swing Line Loans held by each Revolving Credit Lender (including each such Incremental Revolving Lender) will equal the percentage of the aggregate Revolving Credit Commitments of all Revolving Credit Lenders represented by such Revolving Credit Lender’s Revolving Credit Commitment. Additionally, if any Revolving Credit Loans are outstanding at the time any Incremental Revolving Credit Commitments are established, the Revolving Credit Lenders immediately after effectiveness of such Incremental Revolving Credit Commitments shall purchase and assign at par such amounts of the Revolving Credit Loans outstanding at such time as the Administrative Agent may require such that each Revolving Credit Lender holds its Applicable Percentage of all Revolving Credit Loans outstanding immediately after giving effect to all such assignments. The Administrative Agent and the Lenders hereby agree that the minimum borrowing, pro rata borrowing and pro rata payment requirements contained elsewhere in this Agreement shall not apply to the transactions effected pursuant to the immediately preceding sentence.

 

Section 2.15.                          Extensions of Term Loans and Revolving Credit Commitments.

 

89

 

and, in the case of an assignment of Term B Loans in connection with a Repricing Transaction, the premium, if any, that would have been payable by the Borrowers on such date if such Lender’s Term Loans subject to such assignment had been prepaid on such date shall have been paid by the Borrowers to the assigning Lender and (C) upon such payment and, if so requested by the assignee Lender, the assignor Lender shall deliver to the assignee Lender the appropriate Note or Notes executed by the Borrowers, the assignee Lender shall become a Lender hereunder and the assigning Lender shall cease to constitute a Lender hereunder with respect to such assigned Loans, Commitments and participations, except with respect to indemnification provisions under this Agreement, which shall survive as to such assigning Lender.

 

(c)                                  Notwithstanding anything to the contrary contained above, any Lender that acts as an L/C Issuer may not be replaced hereunder at any time that it has any Letter of Credit outstanding hereunder unless arrangements reasonably satisfactory to such L/C Issuer (including the furnishing of a back-up standby letter of credit in form and substance, and issued by an issuer reasonably satisfactory to such L/C Issuer, or the depositing of cash collateral into a cash collateral account in amounts and pursuant to arrangements reasonably satisfactory to such L/C Issuer) have been made with respect to each such outstanding Letter of Credit and the Lender that acts as the Administrative Agent may not be replaced hereunder except in accordance with the terms of Section 9.09.

 

(d)                                 In the event that (i) the Borrowers or the Administrative Agent have requested that the Lenders (A) consent to an extension of the Maturity Date of any Class of Loans as permitted by Section 2.15, (B) consent to a departure or waiver of any provisions of the Loan Documents or (C) agree to any amendment thereto, (ii) the consent, waiver or amendment in question requires the agreement of all affected Lenders in accordance with the terms of Section 10.01 or all the Lenders with respect to a certain Class of the Loans and (iii) the Required Lenders (or, solely with respect to clause (A) above, the Required Revolving Lenders or Required Term Loan Lenders with respect to a certain Class of the Loans for which an Extension Offer has been made) have agreed to such consent, waiver or amendment, then any Lender who does not agree to such consent, waiver or amendment shall be deemed a “Non-Consenting Lender.”

 

Section 3.07.                          Survival. All of the Borrowers’ obligations under this Article 3 shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder and any assignment of rights by or replacement of a Lender or L/C Issuer.

 

ARTICLE 4

 

Conditions Precedent to Credit Extensions

 

Section 4.01.                          Conditions to Closing Date. The obligations of the Lenders to make Loans on the Closing Date and the effectiveness of the Commitments hereunder are subject to the following conditions:

 

(a)                                 The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each in form and substance reasonably satisfactory to the Administrative Agent and its legal counsel:

 

(i)                       executed counterparts of this Agreement from each of the parties listed on the signature pages hereto;

 

104EX-4.1

 Exhibit 4.1 
  

 
  

TRI POINTE GROUP, INC. 

As the COMPANY 
 THE
GUARANTORS PARTY HERETO 
 5.25% Senior Notes due 2027 

 
  

Second Supplemental Indenture 

Dated as of June 8, 2017 
  

 

U.S. BANK NATIONAL ASSOCIATION, 

Trustee 
  

 
  

 TABLE OF CONTENTS 
  

							
		    		 	 	Page	 
	
	ARTICLE ONE	 
	
	SCOPE OF SUPPLEMENTAL INDENTURE	 
			
	Section 1.01.	    	General	 	 	1	 
	Section 1.02.	    	Specified Modifications in Respect of the Notes	 	 	2	 
	
	ARTICLE TWO	 
	
	CERTAIN DEFINITIONS	 
	
	ARTICLE THREE	 
	
	COVENANTS	 
			
	Section 3.01.	    	Reports to Holders	 	 	10	 
	Section 3.02.	    	Restrictions on Secured Debt	 	 	10	 
	Section 3.03.	    	Restrictions on Sale and Leaseback Transactions	 	 	12	 
	Section 3.04.	    	Additional Note Guarantees	 	 	12	 
	Section 3.05.	    	[Reserved]	 	 	13	 
	Section 3.06.	    	Change of Control Offer	 	 	13	 
	Section 3.07.	    	Limitations on Mergers, Consolidations, Etc.	 	 	14	 
	
	ARTICLE FOUR	 
	
	DEFAULTS	 
			
	Section 4.01.	    	Events of Default	 	 	15	 
	Section 4.02.	    	Acceleration	 	 	17	 
	
	ARTICLE FIVE	 
	
	GUARANTEE OF NOTES	 
			
	Section 5.01.	    	Note Guarantee	 	 	17	 
	Section 5.02.	    	Execution and Delivery of Note Guarantee	 	 	17	 
	Section 5.03.	    	Limitation of Note Guarantee	 	 	18	 
	Section 5.04.	    	Release of Guarantor	 	 	18	 
	Section 5.05.	    	Waiver of Subrogation	 	 	19	 
	
	ARTICLE SIX	 
	
	DEFEASANCE	 
			
	Section 6.01.	    	Conditions to Legal Defeasance or Covenant Defeasance	 	 	19	 
	Section 6.02.	    	Discharge of Indenture	 	 	21	 

  
 -i- 

							
	ARTICLE SEVEN	 
	
	MISCELLANEOUS	 
			
	Section 7.01.	    	Governing Law	 	 	21	 
	Section 7.02.	    	No Adverse Interpretation of Other Agreements	 	 	21	 
	Section 7.03.	    	No Recourse Against Others	 	 	22	 
	Section 7.04.	    	Successors and Assigns	 	 	22	 
	Section 7.05.	    	Duplicate Originals	 	 	22	 
	Section 7.06.	    	Severability	 	 	22	 
			
	Exhibit A	    	Form of Note	 			
	Exhibit B	    	Form of Notification on Note of Guarantee	 			

 Second Supplemental Indenture dated as of June 8, 2017 (“Supplemental
Indenture”), to the Indenture dated as of May 23, 2016 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture” and together with the Supplemental Indenture, the
“Indenture”), by and among TRI Pointe Group, Inc., a Delaware corporation (the “Company”), each of the subsidiaries of the Company that are signatories hereto as the Guarantors (the “Guarantors”)
and U.S. Bank National Association, as trustee (including any successor replacing such person in accordance with the applicable provisions of the Indenture, the “Trustee”). 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of Notes (each as defined
herein): 
 WHEREAS, the Company and the Trustee have duly authorized the execution and delivery of the Base Indenture to provide for the
issuance from time to time of senior debt securities (the “Securities”) to be issued in one or more Series as in the Base Indenture provided; 

WHEREAS, the Company and the Guarantors desire and have requested the Trustee to join them in the execution and delivery of this Supplemental
Indenture in order to establish and provide for the issuance by the Company of a Series of Securities designated as its 5.25% Senior Notes due 2027, substantially in the form attached hereto as Exhibit A (including any Additional Notes, as
defined below, the “Notes”), initially guaranteed by the Guarantors, on the terms set forth herein; 
 WHEREAS,
Section 2.01 of the Base Indenture provides that a supplemental indenture may be entered into by the Company, the Guarantors and the Trustee without the consent of Holders for such purpose provided certain conditions are met; 

WHEREAS, the conditions set forth in the Base Indenture for the execution and delivery of this Supplemental Indenture have been complied with;
and 
 WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the Company, the Guarantors and the Trustee,
in accordance with its terms, and a valid amendment of, and supplement to, the Base Indenture have been done; 
 NOW, THEREFORE: 

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

ARTICLE ONE 
 Scope of
Supplemental Indenture 
 Section 1.01.         General. 

The changes, modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall be applicable only with respect
to, and govern the terms of, the Notes and shall not apply to any other Securities that may have been or may hereafter be issued under the Base Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates
such changes, modifications and supplements. 

 Pursuant to this Supplemental Indenture, there is hereby created and designated the Notes as a
Series of Securities under the Base Indenture entitled “5.25% Senior Notes due 2027.” The Notes shall be substantially in the form of Exhibit A hereto and will mature and bear interest as provided in such form and have the other
terms and conditions set forth therein, this Supplemental Indenture and the Base Indenture (to the extent not superseded hereby). The Company shall pay interest on overdue principal at 5.25%; it shall pay interest on overdue installments of interest
(to the extent lawful) at 5.25%. The Notes shall be guaranteed by the Guarantors as provided in this Supplemental Indenture and the form of Exhibit B hereto. The Trustee will initially be the Registrar and Paying Agent for the Notes, and DTC
will initially be the Depositary for the Notes. The covenants provided in Article Three of this Supplemental Indenture are applicable (unless waived or amended as provided in the Indenture) so long as the Notes are outstanding or until
defeasance or other discharge pursuant to the Indenture. An aggregate principal amount of $300.0 million of Notes will be issued on the Issue Date. Additional Notes (the “Additional Notes”) in an unlimited amount may be issued in
one or more issuances from time to time on the same terms and conditions, except for issue date, and if applicable, the issue price and the first interest payment, either of which may differ from the respective terms of the previously issued Notes
of same Series, and with the same CUSIP numbers as the Notes offered hereby (to the extent permissible under applicable law) without the consent of Holders of the Notes, except that if any Additional Notes are not fungible with the Notes issued on
the Issue Date for U.S. federal income tax purposes, such Additional Notes will have a separate CUSIP number. The Notes initially issued hereunder and any such Additional Notes shall vote on all matters, and otherwise be treated as, a single Series
for all purposes under the Indenture. 
 The Company may optionally redeem the Notes as provided in the Notes. 

Section 1.02.        Specified Modifications in Respect of the Notes. 

(1)        Section 5.01 of the Base Indenture shall be deleted in its entirety and replaced by
Section 3.07 of this Supplemental Indenture. 
 (2)        Section 7.05 of the Base
Indenture shall apply in respect of the Notes; provided that the Trustee shall not have any discretion to withhold any notice of the Default with respect to any breach of Section 3.06 hereof, irrespective of any determination that
withholding of such notice is in the interest of the Holders of the Notes. 
 (3)        “Event
of Default” as set forth in Section 6.01 of the Base Indenture shall be replaced by “Event of Default” as set forth in Section 4.01 of this Supplemental Indenture. 

(4)        Section 6.06 of the Base Indenture shall apply in respect of the Notes;
provided that clause (2) thereof shall be amended by replacing “of at least a majority” with “at least 25%” under this Supplemental Indenture. 

(5)        Section 7.05 of the Base Indenture shall apply in respect of the Notes;
provided that the reference to “90 days” shall be replaced with “60 days” under this Supplemental Indenture. 

(6)        Section 8.01(d) of the Base Indenture shall be deleted in its entirety and replaced by
Section 6.01 of this Supplemental Indenture, and Section 8.01(e) of the Base Indenture shall be deleted in its entirety and replaced by Section 6.02 of this Supplemental Indenture. 

(7)        Article Ten of the Base Indenture shall apply in respect of the Notes; provided
that, (1) the Company may amend the Indenture without the consent of any Holder to provide for the issuance of Additional Notes in compliance and in accordance with the limitations set forth in the Indenture, or to comply with the rules of the
Depositary and (2) notwithstanding anything to the contrary in the Base In-

  
 -2- 

 
denture and this Supplemental Indenture, any amendment or waiver of Section 3.06 hereof (prior to the occurrence of a Change of Control Triggering Event) will require consent of Holders of a
majority of the outstanding principal amount of Notes. 
 ARTICLE TWO

Certain Definitions 
 The
following terms have the meanings set forth below in this Supplemental Indenture. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the Base Indenture. To the extent terms defined herein differ from the Base
Indenture the terms defined herein will govern. 
 “Adjusted Net Assets” of a Guarantor at any date means the lesser of the
amount by which (x) the fair value of the property of such Guarantor exceeds the total amount of liabilities, including, without limitation, contingent liabilities (after giving effect to all other fixed and contingent liabilities), but
excluding liabilities under the Guarantee, of such Guarantor at such date and (y) the present fair salable value of the assets of such Guarantor at such date exceeds the amount that will be required to pay the probable liability of such
Guarantor on its debts and all other fixed and contingent liabilities (after giving effect to all other fixed and contingent liabilities and after giving effect to any collection from any Subsidiary of such Guarantor in respect of the obligations of
such Guarantor under the Guarantee), excluding Indebtedness in respect of the Guarantee, as they become absolute and matured. 

“Attributable Debt”, when used with respect to any Sale and Leaseback Transaction, means, as at the time of determination,
the present value (discounted at a rate equivalent to the Company’s then-current weighted average cost of funds for borrowed money as at the time of determination, compounded on a semi-annual basis) of the total obligations of the lessee for
rental payments during the remaining term of any Capitalized Lease included in any such Sale and Leaseback Transaction. 

“Bankruptcy Event” means the commencement of any case under the Bankruptcy Code (Title 11 of the United States Code) or
the commencement of any other bankruptcy, reorganization, receivership, or similar proceeding under any federal, state or foreign law or by or against any Person for whom the Company or a Restricted Subsidiary has executed a Springing Guarantee for
the benefit of such Person; provided, however, that the filing of an involuntary case against such Person shall only be a Bankruptcy Event if (i) such involuntary case is filed in whole or in part by the Company or a Restricted
Subsidiary, any member in such Person which is an Affiliate of the Company or a Restricted Subsidiary, or any other Affiliate of the Company or a Restricted Subsidiary, or (ii) the Company or a Restricted Subsidiary, any member in such Person
which is an Affiliate of the Company or a Restricted Subsidiary, or any other Affiliate of the Company or a Restricted Subsidiary shall in any way induce or participate in the filing, whether directly or indirectly, of an involuntary bankruptcy case
against such Person or any other Person, and such involuntary case or proceeding is not dismissed with prejudice within 120 days of the filing thereof. 

“Capitalized Lease” means a lease required to be capitalized for financial reporting purposes in accordance with GAAP. 

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

(1)        consummation of any transaction (including, without limitation, any merger
or consolidation) the result of which is that any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5
under the Exchange Act, except that for purposes of this clause that per-

  
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son or group shall be deemed to have “beneficial ownership” of all securities that any such person or group has the right to acquire, whether such right is exercisable immediately or
only after the passage of time), directly or indirectly, of Voting Stock representing more than 35% of the voting power of the total outstanding Voting Stock of the Company; 

(2)        (a) all or substantially all of the assets of the Company and the
Restricted Subsidiaries are sold or otherwise transferred to any Person other than a Wholly Owned Restricted Subsidiary or (b) the Company consolidates or merges with or into another Person or any Person consolidates or merges with or into the
Company, in either case under this clause (2), in one transaction or a series of related transactions in which immediately after the consummation thereof Persons owning Voting Stock representing in the aggregate 100% of the total voting power of the
Voting Stock of the Company immediately prior to such consummation do not own Voting Stock representing a majority of the total voting power of the Voting Stock of the Company or the surviving or transferee Person; or 

(3)        the Company shall adopt a Plan of Liquidation or dissolution or any such
plan shall be approved by the stockholders of the Company; provided that a liquidation or dissolution of the Company which is part of a transaction that does not constitute a Change of Control under the proviso contained in clause
(2) above shall not constitute a Change of Control. 
 Notwithstanding the foregoing, a transaction will not be deemed to involve a
Change of Control if (1) the Company becomes a wholly owned subsidiary of a holding company and (2) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of
the Company’s voting stock immediately prior to that transaction. 
 “Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Rating Decline. 
 “Comparable Treasury Issue” means the United States
Treasury security selected by at least two Reference Treasury Dealers as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 

“Comparable Treasury Price” means, with respect to any redemption date, (a) the average of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount, on the third Business Day preceding such redemption date, as set forth in the daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (b) if such release (or any successor release) is not published or does not contain such price on such Business Day,
(i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if fewer than four such Reference Treasury Dealer Quotations are
provided to the Company, the average of all such quotations. 
 “Consolidated Net Tangible Assets” means, as of any date,
the total amount of assets which would be included on a combined balance sheet of the Restricted Subsidiaries (not including the Company) together with the total amount of assets that would be included on the Company’s balance sheet, not
including its subsidiaries, under GAAP (less applicable reserves and other properly deductible items) after deducting therefrom: 

  
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 (1)        all short-term liabilities,
except for liabilities payable by their terms more than one year from the date of determination (or renewable or extendible at the option of the obligor for a period ending more than one year after such date); 

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

(3)        all goodwill, trade names, trademarks, patents, unamortized debt discount,
unamortized expense incurred in the issuance of debt and other intangible assets. 
 “Credit Agreement” means that certain
Amended and Restated Credit Agreement dated July 7, 2015 entered into by and among the Company, certain Subsidiaries of the Company, the financial institutions from time to time party thereto and U.S. Bank National Association as administrative
agent, including any related notes, guarantees, collateral documents, instruments and agreements executed in connection therewith, and as amended, restated, modified, renewed, refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from time to time. 

“Domestic Subsidiary” means any Restricted Subsidiary of the Company that was formed under the laws of the United States or
any state of the United States or the District of Columbia. 
 “Equity Interests” of any Person means (1) any and all
shares or other equity interests (including common stock, preferred stock, limited liability company interests and partnership interests) in such Person and (2) all rights to purchase, warrants or options (whether or not currently exercisable),
participations or other equivalents of or interests in (however designated) such shares or other interests in such Person. 

“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 Measurement Date. 
 “guarantee” means a direct or
indirect guarantee by any Person of any Indebtedness of any other Person and includes any obligation, direct or indirect, contingent or otherwise, of such Person: (1) to purchase or pay (or advance or supply funds for the purchase or payment
of) Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services (unless such purchase arrangements are on arm’s-length terms and are
entered into in the ordinary course of business), to take-or-pay, or to maintain financial statement conditions or otherwise); or (2) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or in part). “guarantee,” when used as a verb, and “guaranteed” have correlative meanings. 

“Guarantors” means each of the Company’s Subsidiaries that executes a Note Guarantee pursuant to the provisions of this
Supplemental Indenture. 
 “Indebtedness” means 

(1) any liability of any person: 

(A) for borrowed money, or 

  
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 (B) evidenced by a bond, note, debenture or similar instrument (including a
purchase money obligation) given in connection with the acquisition of any businesses, properties or assets of any kind (other than (1) a trade payable or a current liability arising in the ordinary course of business and (2) contingent
purchase price obligations so long as they are contingent), or 
 (C) for the payment of money relating to a Capitalized
Lease Obligation, or 
 (D) for all Redeemable Capital Stock valued at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; 
 (2) any liability of others described in the preceding clause (1) that
such person has guaranteed or that is otherwise its legal liability; provided, however, that a Springing Guarantee shall not be deemed to be Indebtedness under this clause (2) until the earliest to occur of (a) the demand by a lender for
payment under such Springing Guarantee, (b) the occurrence or failure to occur of any event, act or circumstance that, with or without the giving of notice and/or passage of time, entitles a lender to make a demand for payment thereunder or
(c) a Bankruptcy Event; 
 (3) all Indebtedness referred to in (but not excluded from) clauses (1) and (2) above of other
persons and all dividends of other persons, the payment of which is secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including, without
limitation, accounts and contract rights) owned by such person, even though such person has not assumed or become liable for the payment of such Indebtedness; and 

(4) any amendment, supplement, modification, deferral, renewal, extension or refunding or any liability of the types referred to in clauses
(1), (2) and (3) above. 
 “Issue Date” means June 8, 2017, the date on which the Notes are originally
issued under this Supplemental Indenture. 
 “Lien” means, with respect to any asset, any mortgage, deed of trust, lien
(statutory or other), pledge, easement, restriction, covenant, charge, security interest or other encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, and any lease in the nature thereof, any option or other agreement to sell, and any agreement to give, any financing statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction (other than cautionary filings in respect of operating leases). 
 “Moody’s” means Moody’s Investors
Service, Inc., and its successors. 
 “Non-Recourse Land Financing” means any Indebtedness of the Company or any Restricted
Subsidiary for which the holder of such Indebtedness has no recourse, directly or indirectly, to the Company or such Restricted Subsidiary for the principal of, premium, if any, and interest on such Indebtedness, and for which the Company or such
Restricted Subsidiary is not, directly or indirectly, obligated or otherwise liable for the principal of, premium, if any, and interest on such Indebtedness, except pursuant to mortgages, deeds of trust or other Liens or other recourse obligations
or liabilities in respect of specific land or other real property interests of the Company or such Restricted Subsidiary; provided that recourse obligations or liabilities of the Company or such Restricted Subsidiary solely for customary “bad
boy” guarantees, indemnities (including, without limitation, environmental indemnities), covenants (including, without limitation, performance, completion or similar covenants and guarantees), or breach of any warranty, representation or
covenant in respect of any Indebtedness, including liability by reason of any agreement by the Company or any Restricted Subsidiary to provide additional capital or maintain the financial con-

  
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dition of or otherwise support the credit of the Person incurring the Indebtedness, will not prevent Indebtedness from being classified as Non-Recourse Land Financing. 

“Note Guarantee” means the guarantee of the Notes by the Guarantors. 

“Obligation” means any principal, interest, penalties, fees, indemnification, reimbursements, costs, expenses, damages and
other liabilities payable under the documentation governing any Indebtedness. 
 “Plan of Liquidation” with respect to any
Person, means a plan that provides for, contemplates or the effectuation of which is preceded or accompanied by (whether or not substantially contemporaneously, in phases or otherwise): (1) the sale, lease, conveyance or other disposition of
all or substantially all of the assets of such Person otherwise than as an entirety or substantially as an entirety; and (2) the distribution of all or substantially all of the proceeds of such sale, lease, conveyance or other disposition of
all or substantially all of the remaining assets of such Person to creditors and holders of Equity Interests of such Person. 

“Rating Agency” means each of (a) S&P and (b) Moody’s. 

“Rating Category” means: 

(1)        with respect to S&P, any of the following categories: BB, B, CCC, CC, C
and D (or equivalent successor categories); and 
 (2)        with respect to
Moody’s, any of the following categories: Ba, B, Caa, Ca, C and D (or equivalent successor categories). 
 In determining whether the
rating of the Notes has decreased by one or more gradations, gradations within Rating Categories (+ and - for S&P; or 1, 2 and 3 for Moody’s) will be taken into account (e.g., with respect to S&P a decline in rating from BB+ to BB, as
well as from BB- to B+, will constitute a decrease of one gradation). 
 “Rating Date” means the date which is 90 days
prior to the earlier of (1) a Change of Control and (2) public notice of the occurrence of a Change of Control or of the intention by the Company to effect a Change of Control. 

“Rating Decline” means the decrease (as compared with the Rating Date) by one or more gradations within Rating Categories as
well as between Rating Categories of the rating of the Notes by a Rating Agency on, or within 120 days after, the earlier of the date of public notice of the occurrence of a Change of Control or of the intention by the Company to effect a Change of
Control (which period will be extended for so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies). 

“Redeemable Capital Stock” means any capital stock of the Company or any Subsidiary that, either by its terms, by the terms
of any security into which it is convertible or exchangeable or otherwise, (1) is or upon the happening of an event or passage of time would be required to be redeemed on or prior to the final stated maturity of the Notes or (2) is
redeemable at the option of the holder thereof at any time prior to such final stated maturity or (3) is convertible into or exchangeable for debt securities at any time prior to such final stated maturity. 

  
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 “Reference Treasury Dealer” means (a) J.P. Morgan Securities LLC and its
successors and (b) any other Primary Treasury Dealer(s) selected by the Company; provided, however, that if J.P. Morgan Securities LLC ceases to be a primary U.S. Government securities dealer in the United States of America (a
“Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer. 
 “Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date. 

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

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

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors. 
 “Sale and Leaseback Transaction” means a sale or transfer made by the Company or a Restricted Subsidiary
(except a sale or transfer made to the Company or another Restricted Subsidiary) of any property which is either (1) a manufacturing facility, office building or warehouse whose book value equals or exceeds 1% of Consolidated Net Tangible
Assets as of the date of determination or (2) another real property interest (not including a model home) which exceeds 5% of Consolidated Net Tangible Assets as of the date of determination, if such sale or transfer is made with the agreement,
commitment or intention of leasing such property to the Company or a Restricted Subsidiary. 
 “Secured Debt” means any
Indebtedness which is secured by (1) a Lien on any property of the Company or the property of any Restricted Subsidiary or (2) a Lien on shares of stock owned directly or indirectly by the Company or a Restricted Subsidiary in a
corporation or on Equity Interests owned by the Company or a Restricted Subsidiary in a partnership or other entity not organized as a corporation or in the Company’s rights or the rights of a Restricted Subsidiary in respect of Indebtedness of
a corporation, partnership or other entity in which the Company or a Restricted Subsidiary has an Equity Interest; provided that “Secured Debt” shall not include Non-Recourse Land Financing that consists exclusively of land and
improvements thereon. The securing in the foregoing manner of any such Indebtedness which immediately prior thereto was not Secured Debt shall be deemed to be the creation of Secured Debt at the time security is given. 

“Senior Indebtedness” means the principal of (and premium, if any, on) and interest on (including interest accruing after the
occurrence of an Event of Default or after the filing of a petition initiating any proceeding pursuant to any Bankruptcy Law whether or not such interest is an allowable claim in any such proceeding) and other amounts due on or in connection with
any Indebtedness of the Company, whether outstanding on the date hereof or hereafter created, incurred or assumed, unless, in the case of any particular Indebtedness, the instrument creating or evidencing the same or pursuant to which the same is
outstanding expressly provides that such Indebtedness shall not be senior in right of payment to the debt securities. Notwithstanding the foregoing, “Senior Indebtedness” shall not include (1) Indebtedness

  
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of the Company that is expressly subordinated in right of payment to any Senior Indebtedness of the Company, (2) Indebtedness of the Company that by operation of law is subordinate to any
general unsecured obligations of the Company, (3) Indebtedness of the Company to any Subsidiary, (4) Indebtedness of the Company incurred in violation of Section 3.02 and 3.03 of the Indenture, (5) to the extent it might
constitute Indebtedness, any liability for federal, state or local taxes or other taxes, owed or owing by the Company and (6) to the extent it might constitute Indebtedness, trade account payables owed or owing by the Company or any of its
Subsidiaries. 
 “Significant Subsidiary” means (1) any Restricted Subsidiary that would be a “significant
subsidiary” as defined in Regulation S-X promulgated pursuant to the Securities Act of 1933 as such regulation is in effect on the Issue Date and (2) any Restricted Subsidiary that, when aggregated with all other Restricted Subsidiaries
that are not otherwise Significant Subsidiaries and as to which any event described in clause (7) or (8) under Section 4.01 has occurred and is continuing, would constitute a Significant Subsidiary under clause (1) of this
definition. 
 “Springing Guarantee” means a guarantee by a Person which by its express terms does not become effective
until the occurrence of a Bankruptcy Event. 
 “Subsidiary” means, with respect to any Person, any corporation, limited
liability company, association or other business entity of which more than 50% of the total voting power of the Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the election of the board of directors or
comparable governing body thereof are at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof). Unless otherwise specified, “Subsidiary”
refers to a Subsidiary of the Company. 
 “Treasury Rate” means, with respect to any redemption date, the rate per annum
equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date. 
 “Unrestricted Subsidiary” means any Subsidiary that is designated by the Company (evidenced by resolutions of the
Board of Directors of the Company, delivered to the Trustee certifying compliance with this definition) as a Subsidiary resulting from any investment (including any guarantee of Indebtedness) made by the Company or any Restricted Subsidiary of the
Company in joint ventures engaged in homebuilding, land acquisition or land development businesses and businesses that are reasonably related thereto or reasonable extensions thereof with unaffiliated third parties provided that the aggregate amount
of investments in all Unrestricted Subsidiaries shall not exceed $25 million (with the amount of each investment being calculated based upon the amount of investments made on or after the date such joint venture becomes a Subsidiary); provided,
further that if the Company subsequently designates a Subsidiary, which previously had been designated an Unrestricted Subsidiary, to be a Restricted Subsidiary (evidenced by resolutions of the Board of Directors of the Company, delivered to the
Trustee certifying compliance with this definition) and causes such Subsidiary to comply with Section 3.04, then the amount of any investments in such Unrestricted Subsidiary made on or after the date such joint venture became a Subsidiary
shall be credited against the $25 million basket set forth in this definition (up to a maximum amount of $25.0 million). 
 “Voting
Stock” with respect to any Person, means securities of any class of Equity Interests of such Person entitling the holders thereof (whether at all times or only so long as no senior class of stock or other relevant equity interest has voting
power by reason of any contingency) to vote in the election of members of the Board of Directors of such Person. 

  
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 “Wholly Owned Domestic Subsidiary” means a Wholly Owned Restricted Subsidiary
that is a Domestic Subsidiary. 
 “Wholly Owned Restricted Subsidiary” means a Restricted Subsidiary of which 100% of the
Equity Interests (except for directors’ qualifying shares or certain minority interests owned by other Persons solely due to local law requirements that there be more than one stockholder, but which interest is not in excess of what is required
for such purpose) are owned directly by the Company or through one or more Wholly Owned Restricted Subsidiaries. 
 ARTICLE THREE 

Covenants 

Section 3.01.        Reports to Holders. 

Whether or not required by the SEC, so long as any Notes are outstanding, the Company shall furnish to the Trustee and the Holders of Notes,
within the time periods specified in the SEC’s rules and regulations (including any grace periods or extensions permitted by the SEC): 

(1)        all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to file these Forms, including a “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and, with respect to the annual information only, a report on the annual financial statements by the Company’s independent registered public accounting firm; and 

(2)        all current reports that would be required to be filed with the SEC on Form
8-K if the Company were required to file these reports. 
 In addition, whether or not required by
the SEC, the Company shall file a copy of all of the information and reports referred to in clauses (i) and (ii) above with the SEC for public availability within the time periods specified in the SEC’s rules and regulations (unless
the SEC will not accept the filing) and make the information available to securities analysts and prospective investors upon request. 

From and after the Issue Date and for so long as any Notes remain outstanding, the Company shall furnish to the Holders (with a copy to the
Trustee) and to securities analysts and prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

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 3.02.        Restrictions on
Secured Debt. 
 The Company shall not, and shall not cause or permit a Restricted Subsidiary to, create, incur, assume or guarantee any
Secured Debt unless the Notes will be secured equally and ratably with (or prior to) such Secured Debt, with certain exceptions. This restriction does not prohibit (and there shall be no obligation to equally and ratably secure the Notes upon) the
creation, incurrence, assumption or guarantee of Secured Debt which is secured by: 

  
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 (i)         Liens on model homes, homes
held for sale, homes that are under contract for sale, homes under development, contracts for the sale of homes and/or land (improved or unimproved), land (improved or unimproved), manufacturing plants, warehouses or office buildings and fixtures
and equipment located thereat, or thereon; 
 (ii)        Liens on property at the
time of its acquisition by the Company or a Restricted Subsidiary, including Capitalized Lease Obligations and purchase money obligations, which Liens secure obligations assumed by the Company or a Restricted Subsidiary, or Liens on assets of a
Person, in each case, existing at the time such property or Person is acquired or merged with or into or consolidated with the Company or any such Restricted Subsidiary (and, in each case, not created in anticipation or contemplation thereof); 

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

(iv)        Liens incurred in connection with pollution control, industrial revenue,
water, sewage or public improvement bonds or any similar bonds, or in connection with any agreements for the funding of infrastructure, including in respect of the issuance of community facility district bonds, metro district bonds, mello-roos bonds
and subdivision improvement bonds, and similar bonds, in each case, arising in the ordinary course of business; 

(v)        any right of 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 money of the Company or a Restricted Subsidiary with or held by such lender or lenders
or its affiliates in the ordinary course of business; 
 (vi)        Liens securing
Indebtedness of a Restricted Subsidiary owed to the Company or to a Wholly Owned Restricted Subsidiary of the Company or Liens securing the Company’s Indebtedness owing to a Guarantor; or 

(vii)        Liens securing Indebtedness in an aggregate principal amount not to
exceed $100.0 million at any one time outstanding. 
 Additionally, such permitted Secured Debt includes any amendment, restatement,
supplement, renewal, replacement, extension or refunding in whole or in part, of Secured Debt permitted at the time of the original incurrence thereof. 

In addition, the Company and its Restricted Subsidiaries may create, incur, assume or guarantee Secured Debt, without equally or ratably
securing the Notes, if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding (i) Secured Debt permitted under clauses (i) through (vii) above and (ii) any Secured
Debt in relation to which the Notes have been equally and ratably secured) and (2) all Attributable Debt in respect of Sale and Leaseback Transactions (excluding Attributable Debt in respect of Sale and Leaseback Transactions satisfying the
conditions set forth in clauses (i), (ii) and (iii) of Section 3.03) as of the date of determination would not exceed 20% of Consolidated Net Tangible Assets. 

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

  
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 Section 3.03.        Restrictions on Sale and
Leaseback Transactions. 
 The Company shall not, and shall not permit any Restricted Subsidiary to, enter into any Sale and Leaseback
Transaction, unless: 
 (i)        notice is promptly given to the Trustee of the
Sale and Leaseback Transaction; 
 (ii)        fair value is received by the Company
or the relevant Restricted Subsidiary for the property sold (as determined in good faith pursuant to a resolution of the Board of Directors of the Company delivered to the Trustee); and 

(iii)        the Company or such Restricted Subsidiary, within 365 days after the
completion of the Sale and Leaseback Transaction, applies an amount equal to the net proceeds therefrom either: 

a.        to the redemption, repayment or retirement of the Notes or any Additional
Notes, any other Securities issued under the Base Indenture or the Company’s 4.375% Senior Notes due 2019, the 4.875% Senior Notes due 2021 or 5.875% Senior Notes due 2024 (including the cancellation by the applicable trustee of any Notes or
other Securities delivered by the Company to the applicable trustee) or Senior Indebtedness of the Company, or 

b.        to the purchase by the Company or any Restricted Subsidiary of the Company
of property substantially similar to the property sold or transferred. 
 In addition, the Company and its Restricted Subsidiaries may enter
into a Sale and Leaseback Transaction if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses (i) through (vii) of Section 3.02 or
Secured Debt in relation to which the Notes have been equally and ratably secured) and (2) all Attributable Debt in respect of Sale and Leaseback Transactions (excluding Attributable Debt in respect of Sale and Leaseback Transactions satisfying
the conditions set forth in clauses (i), (ii) and (iii) of this Section 3.03) as of the date of determination would not exceed 20% of Consolidated Net Tangible Assets. 

Section 3.04.        Additional Note Guarantees. 

The Company shall cause each Wholly Owned Domestic Subsidiary that incurs (1) any Indebtedness (and/or commitments in respect thereof)
under the Credit Agreement, (2) Indebtedness (and/or commitments in respect thereof) under any syndicated loan or capital markets debt securities issuance which is equal to or in excess of $125.0 million in principal amount so long as the
Company or a Guarantor is the borrower, issuer or a guarantor of the Indebtedness (and/or commitments in respect thereof) or (3) a guarantee of any Indebtedness (and/or commitments in respect thereof) of the Company or a Guarantor described in
the preceding clause (1) or (2), to: 
 (1)        execute and deliver to the
Trustee (a) a supplemental indenture in form satisfactory to the Trustee pursuant to which such Restricted Subsidiary shall unconditionally guarantee all of the Company’s obligations under the Notes and this Indenture and (b) a
notation of guarantee in respect of its Note Guarantees; and 
 (2)        deliver to
the Trustee one or more Opinions of Counsel that such supplemental indenture 

  
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 (a)        has been duly authorized,
executed and delivered by such Restricted Subsidiary; and 
 (b)        constitutes
a valid and legally binding obligation of such Restricted Subsidiary in accordance with its terms. 
 If, after the Issue Date, the Company
or any Guarantor acquires or creates another Wholly Owned Domestic Subsidiary that incurs (1) any Indebtedness (and/or commitments in respect thereof) under the Credit Agreement, (2) Indebtedness (and/or commitments in respect thereof)
under any syndicated loan or capital markets debt securities issuance which is equal to or in excess of $125.0 million in principal amount so long as the Company or a Guarantor is the borrower, issuer or a guarantor of the Indebtedness (and/or
commitments in respect thereof) or (3) a guarantee of any Indebtedness (and/or commitments in respect thereof) of the Company or a Guarantor described in the preceding clause (1) or (2), then the Company shall cause such Restricted
Subsidiary to: 
 (i)        execute and deliver to the Trustee (a) a
supplemental indenture in form satisfactory to the Trustee pursuant to which such Restricted Subsidiary shall unconditionally guarantee all of the Company’s obligations under the Notes and this Indenture and (b) a notation of guarantee in
respect of its Note Guarantee; and 
 (ii)        deliver to the Trustee one or
more Opinions of Counsel that such supplemental indenture 
 a.        has been
duly authorized, executed and delivered by such Restricted Subsidiary and 

b.        constitutes a valid and legally binding obligation of such Restricted
Subsidiary in accordance with its terms. 
 Section 3.05. [Reserved]. 

Section 3.06. Change of Control Offer. 

Upon the occurrence of a Change of Control Triggering Event, the Company shall be obligated to make an Offer to Purchase (the “Change
of Control Offer”), and shall purchase, on a Business Day (the “Change of Control Payment Date”) not more than 60 nor less than 30 days following the occurrence of the Change of Control, all of the then outstanding Notes at
a purchase price (the “Change of Control Purchase Price”) equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the Change of Control Payment Date. The Change of Control Offer shall
remain open for at least 20 Business Days and until the close of business on the Change of Control Payment Date. 
 Within 30 days following
the date upon which a Change of Control Triggering Event occurs (the “Change of Control Date”), the Company shall send a notice of the Change of Control Offer, by first class mail or delivered electronically in accordance with the
procedures of the Depositary, to the Holders, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. The notice to the Holders shall (1) describe the transaction or transactions that constitute the
Change of Control, (2) offer to purchase, pursuant to the procedures required by the Indenture and described in the notice, on the Change of Control Date and for the Change of Control Purchase Price, all of the Notes properly tendered by such
Holder pursuant to such Change Of Control Offer, and (3) contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Change of Control Offer. 

  
 -13- 

 Any amounts remaining after the purchase of Notes pursuant to a Change of Control Offer shall be
returned by the Trustee to the Company. 
 The Company’s obligation to make a Change of Control Offer will be satisfied if a third
party makes the Change of Control Offer in the manner and at the times and otherwise in compliance with the requirements applicable to a Change of Control Offer made by the Company and purchases all Notes properly tendered and not withdrawn under
the Change of Control Offer. 
 The Company shall comply with applicable tender rules, including the requirements of Rule 14e-1 under
the Exchange Act and any other applicable laws and regulations in connection with the purchase of Notes pursuant to a Change of Control Offer. To the extent the provisions of any securities laws or regulations conflict with the provisions under this
Section 3.06, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 3.06 by virtue thereof. 

Section 3.07.        Limitations on Mergers, Consolidations, Etc. 

The Company shall not, directly or indirectly, in a single transaction or a series of related transactions, (a) consolidate or merge with
or into (other than a merger that satisfies the requirements of clause (i) below with a Wholly Owned Restricted Subsidiary solely for the purpose of changing the Company’s jurisdiction of incorporation to another State of the United
States), or sell, lease, transfer, convey or otherwise dispose of or assign all or substantially all of the assets of the Company or the Company and its Restricted Subsidiaries (taken as a whole) or (b) adopt a Plan of Liquidation unless, in
either case: 
 either: 

(a)        the Company will be the surviving or continuing Person; or 

(b)        the Person formed by or surviving such consolidation or merger or to which
such sale, lease, conveyance or other disposition shall be made (or, in the case of a Plan of Liquidation, any Person to which assets are transferred) (collectively, the “Successor”) is a corporation or limited liability company
organized and existing under the laws of any State of the United States of America or the District of Columbia, and the Successor expressly assumes, by a supplemental indenture in form satisfactory to the Trustee, all of the obligations of the
Company under the Notes and this Indenture; provided that at any time the Successor is a limited liability company, there shall be a co-issuer of the Notes that is a corporation; and 

immediately after giving effect to such transaction and the assumption of the obligations as set forth in clause (i)(b) above
and the incurrence of any Indebtedness to be incurred in connection therewith, no Default shall have occurred and be continuing. 
 Except
as provided under Section 5.04, no Guarantor may transfer all or substantially all of its assets to, consolidate with or merge with or into another Person, whether or not affiliated with such Guarantor, unless: 

(i)        either: 

(a)        such Guarantor will be the surviving or continuing Person; or 

  
 -14- 

 (b)        the Person formed by or
surviving any such consolidation or merger assumes, by supplemental indenture in form and substance satisfactory to the Trustee, all of the obligations of such Guarantor under the Note Guarantee of such Guarantor and this Indenture; and 

(ii)        immediately after giving effect to such transaction, no Default shall have
occurred and be continuing. 
 The Company shall deliver to the Trustee on or prior to the consummation of a transaction proposed pursuant
to clause (i)(b) of the first or second paragraph of this Section 3.07 an Officers’ Certificate and an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture and constitutes the
legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms. 
 For purposes of the foregoing,
the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or substantially all of the assets of one or more Restricted Subsidiaries, the Equity Interests of which constitute all or substantially
all of the assets of the Company, will be deemed to be the transfer of all or substantially all of the assets of the Company. 
 Upon any
consolidation, combination or merger of the Company or a Guarantor, or any transfer of all or substantially all of the assets of the Company in accordance with the foregoing, in which the Company or such Guarantor is not the continuing obligor under
the Notes or its Note Guarantee, the surviving entity formed by such consolidation or into which the Company or such Guarantor is merged or to which the conveyance, lease or transfer is made will succeed to, and be substituted for, and may exercise
every right and power of, the Company or such Guarantor under this Indenture, the Notes and the Note Guarantees with the same effect as if such surviving entity had been named therein as the Company or such Guarantor and, except in the case of a
conveyance, transfer or lease, the Company or such Guarantor, as the case may be, will be released from the obligation to pay the principal of and interest on the Notes or in respect of its Note Guarantee, as the case may be, and all of the
Company’s or such Guarantor’s other obligations and covenants under the Notes, this Indenture and its Note Guarantee, if applicable. 

Notwithstanding the foregoing, (i) any Restricted Subsidiary may merge into the Company or another Restricted Subsidiary and
(ii) the requirements of the fourth preceding paragraph above will not apply to any transaction pursuant to which the surviving Person is not the Company or a Person that would be required to become a Guarantor under Section 3.04. 

ARTICLE FOUR 
 Defaults

 Section 4.01.        Events of Default 

Each of the following is an “Event of Default”: 

(i)        failure by the Company to pay interest on any of the Notes when it becomes due and payable
and the continuance of any such failure for 30 days; 
 (ii)        failure by the Company to pay
the principal on the Notes when it becomes due and payable, whether at stated maturity, upon redemption, upon purchase, upon acceleration or otherwise; 

(iii)        failure by the Company or any of its Restricted Subsidiaries to comply with
Section 3.07; 

  
 -15- 

 (iv)        failure by the Company or any of its
Restricted Subsidiaries to comply with any other agreement or covenant in this Indenture and continuance of this failure for 30 days after notice of the failure has been given to the Company by the Trustee or by the Holders of at least 25% of the
aggregate principal amount of the Notes then outstanding (with a copy to the Trustee if given by the Holders); 

(v)        default under any mortgage, indenture or other instrument or agreement under which there
may be issued or by which there may be secured or evidenced Indebtedness (other than Non-Recourse Land Financing) of the Company or any Restricted Subsidiary, whether such Indebtedness now exists or is incurred after the Issue Date, which default:

 (1)        is caused by a failure to pay when due principal on such Indebtedness within the
applicable express grace period, 
 (2)        results in the acceleration of such Indebtedness
prior to its express final maturity or 
 (3)        results in the commencement of judicial
proceedings to foreclose upon, or to exercise remedies under applicable law or applicable security documents to take ownership of, the assets securing such Indebtedness, and 

in each case, the principal amount of such Indebtedness, together with any other Indebtedness with respect to which an event described in
clause (1), (2) or (3) has occurred and is continuing, aggregates $50.0 million or more; 

(vi)        one or more judgments or orders that exceed $50.0 million in the aggregate (net of amounts
covered by insurance or bonded) for the payment of money have been entered by a court or courts of competent jurisdiction against the Company or any Restricted Subsidiary and such judgment or judgments have not been satisfied, stayed, annulled or
rescinded within 60 days of being entered; 
 (vii)        the Company or any Significant Subsidiary
pursuant to or within the meaning of any Bankruptcy Law: 
 (1)        commences a voluntary case,

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

(3)        consents to the appointment of a Custodian of it or for all or substantially all of its
assets, or 
 (4)        makes a general assignment for the benefit of its creditors; 

(viii)        a court of competent jurisdiction enters an order or decree under any Bankruptcy Law
that: 
 (1)        is for relief against the Company or any Significant Subsidiary as debtor in an
involuntary case, 
 (2)        appoints a Custodian of the Company or any Significant Subsidiary or
a Custodian for all or substantially all of the assets of the Company or any Significant Subsidiary, or 

(3)        orders the liquidation of the Company or any Significant Subsidiary, and the order or
decree remains unstayed and in effect for 60 days; or 

  
 -16- 

 (ix)        any Note Guarantee of any Significant
Subsidiary ceases to be in full force and effect (other than in accordance with the terms of such Note Guarantee and this Indenture) or is declared null and void and unenforceable or found to be invalid or any Guarantor denies its liability under
its Note Guarantee (other than by reason of release of a Guarantor from its Note Guarantee or this Indenture in accordance with the terms of this Indenture and the Note Guarantee). 

Section 4.02.        Acceleration 

References in Section 6.02 of the Base Indenture to subclauses (5) and (6) shall be replaced with references to subclauses
(vii) and (viii) of this Supplemental Indenture. 
 ARTICLE FIVE 

Guarantee of Notes 

Section 5.01.        Note Guarantee. 

Subject to the provisions of this Article Five, each Guarantor, by execution of this Indenture, jointly and severally, unconditionally
guarantees to each Holder (i) the due and punctual payment of the principal of and interest on each Note, when and as the same shall become due and payable, whether at maturity, by acceleration or otherwise, the due and punctual payment of
interest on the overdue principal of and interest on the Notes, to the extent lawful, and the due and punctual payment of all other Obligations and due and punctual performance of all Obligations of the Company to the Holders and the Trustee all in
accordance with the terms of such Note and this Indenture, and (ii) in the case of any extension of time of payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, at stated maturity, by acceleration or otherwise. Each Guarantor, by execution of this Indenture, agrees that its obligations hereunder shall be absolute and unconditional, irrespective of, and
shall be unaffected by, any invalidity, irregularity or unenforceability of any such Note or this Indenture, any failure to enforce the provisions of any such Note or this Indenture, any waiver, modification or indulgence granted to the Company with
respect thereto by the Holder of such Note, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or such Guarantor. 

Each Guarantor hereby waives diligence, presentment, demand for payment, filing of claims with a court in the event of merger or bankruptcy of the Company,
any right to require a proceeding first against the Company, protest or notice with respect to any such Note or the Indebtedness evidenced thereby and all demands whatsoever, and covenants that this Note Guarantee will not be discharged as to any
such Note except by payment in full of the principal thereof and interest thereon. Each Guarantor hereby agrees that, as between such Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (i) the maturity of the
Obligations guaranteed hereby may be accelerated as provided in Article Six of the Base Indenture (as supplemented by this Supplemental Indenture) for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of such Obligations as provided in Article Six of the Base Indenture (as supplemented by
this Supplemental Indenture), such Obligations (whether or not due and payable) shall forthwith become due and payable by each Guarantor for the purpose of this Note Guarantee. 

Section 5.02.        Execution and Delivery of Note Guarantee. 

To further evidence the Note Guarantee set forth in Section 5.01, each Guarantor hereby agrees that a notation of such Note Guarantee,
substantially in the form included in Exhibit B hereto, shall be 

  
 -17- 

 
endorsed on each Note authenticated and delivered by the Trustee and such Note Guarantee shall be executed by either manual or facsimile signature of an Officer or an Officer of a general
partner, as the case may be, of each Guarantor. The validity and enforceability of any Note Guarantee shall not be affected by the fact that it is not affixed to any particular Note. 

Each of the Guarantors hereby agrees that its Note Guarantee set forth in Section 5.01 shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Note Guarantee. 
 If an officer of a Guarantor whose signature is on
this Indenture or a Note Guarantee no longer holds that office at the time the Trustee authenticates the Note on which such Guarantee is endorsed or at any time thereafter, such Guarantor’s Note Guarantee shall be valid nevertheless. 

The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of any Note Guarantee set
forth in this Indenture on behalf of the Guarantor. 
 Section 5.03.        Limitation of
Note Guarantee. 
 The obligations of each Guarantor are limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its Note Guarantee or pursuant to
its contribution obligations under this Indenture, result in the obligations of such Guarantor under its Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state law. Each Guarantor that makes a payment or
distribution under its Note Guarantee shall be entitled to a contribution from each other Guarantor in a pro rata amount based on the Adjusted Net Assets of each Guarantor. 

Section 5.04.        Release of Guarantor 

A Guarantor shall be released from all of its obligations under its Guarantee if: 

(A)        all of the assets of such Guarantor have been sold or otherwise disposed of
in a transaction in compliance with the terms of the Indenture (including Sections 3.06 and 3.07); 

(B)        all of the Equity Interests held by the Company and the Restricted
Subsidiaries of such Guarantor have been sold or otherwise disposed of in a transaction in compliance with the terms of the Indenture (including Sections 3.06 and 3.07); 

(C)        any Guarantor merges with and into the Company or another Guarantor, with
the Company or such other Guarantor surviving such merger; 
 (D)        any
Guarantor is designated as an Unrestricted Subsidiary, in accordance with the Indenture or otherwise ceases to be a Restricted Subsidiary (including by way of liquidation or dissolution) in a transaction permitted by this Indenture, 

(E)        any Guarantor ceases to guarantee any Indebtedness of the Company or any
other Guarantor which gave rise to such Guarantor guaranteeing the Notes, except as a result of a discharge or release by or as a result of payment under such guarantee of such Indebtedness, 

  
 -18- 

 (F)        the Company exercises its
Legal Defeasance option in accordance with Section 8.01(b) of the Base Indenture or Covenant Defeasance option in accordance with Section 8.01(c) of the Base Indenture, in each case as supplemented by this Supplemental Indenture; or 

(G)        all obligations under the Indenture are discharged in accordance with
Section 8.01(e) of the Base Indenture; 
 and in each such case, 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 such transactions have been complied with and that such release is authorized and permitted hereunder. 

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

Section 5.05.        Waiver of Subrogation. 

Each 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 Guarantor’s obligations under its Note Guarantee and this Indenture, including, without limitation, any right of subrogation, reimbursement, exoneration, indemnification, and any right
to participate in any claim or remedy of any Holder of 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 set-off or in any other manner, payment or Note on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and
the Notes shall not have been paid in full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Holders, 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 Indenture. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this Section 5.05 is knowingly made in contemplation of such benefits. 

ARTICLE SIX 
 Defeasance

 Section 6.01.        Conditions to Legal Defeasance or Covenant Defeasance. 

The following shall be the conditions to application of either paragraph (b) or paragraph (c) of Section 8.01 of the Base
Indenture to the outstanding Notes: 
 (i)        the Company must irrevocably
deposit with the Trustee, in trust, for the benefit of the Holders, U.S. legal tender, Government Obligations or a combination thereof, in such amounts as will be sufficient (without reinvestment) in the opinion of a nationally recognized firm of
independent public accountants selected by the Company , to pay the principal of and interest on the Notes on the stated date for payment or on the redemption date of the principal or installment of principal of or interest on the Notes, and the
Trustee must have a valid, perfected, exclusive security interest in such trust, 

  
 -19- 

 (ii)        in the case of Legal
Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States in form reasonably acceptable to the Trustee confirming that: 

(1)        the Company has received from, or there has been published by the Internal
Revenue Service, a ruling, or 
 (2)        since the date hereof, there has been a
change in the applicable U.S. federal income tax law, 
 in either case to the effect that, and based thereon this Opinion of Counsel shall
confirm that, the Holders will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the Legal Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such Legal Defeasance had not occurred, 

(iii)        in the case of Covenant Defeasance, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States in form reasonably acceptable to the Trustee confirming that the Holders will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if the Covenant Defeasance had not occurred, 

(iv)        no Default shall have occurred and be continuing on the date of such
deposit (other than a Default resulting from the borrowing of funds to be applied to such deposit and the grant of any Lien securing such borrowing), 

(v)        the Legal 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 or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound, 

(vi)        the Company shall have delivered to the Trustee an Officers’
Certificate stating that the deposit was not made by it with the intent of preferring the Holders over any other of its creditors or with the intent of defeating, hindering, delaying or defrauding any other of its creditors or others, and 

(vii)        the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that the conditions provided for in, in the case of the Officers’ Certificate, clauses (i) through (vi) and, in the case of the Opinion of Counsel, clauses (i) (with respect to
the validity and perfection of the security interest), (ii) and/or (iii) and (v) of this paragraph have been complied with. 

If the funds deposited with the Trustee to effect Covenant Defeasance are insufficient to pay the principal of and interest on the Notes when
due, then the Company’s obligations and the obligations of Guarantors under this Indenture will be revived and no such defeasance will be deemed to have occurred. 

  
 -20- 

 Section 6.02.         Discharge of Indenture

 The Company may terminate its obligations and the obligations of the Guarantors under the Notes, the Note Guarantees and the Indenture,
except the obligations referred to in the last paragraph of this Section 6.02, if 

(ii)        all the Notes that have been authenticated and delivered (except lost,
stolen or destroyed Notes which have been replaced or paid and Notes for whose payment money has been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Issuer or discharged from this trust) have been
delivered to the Trustee for cancellation, or 
 (iii)        (a) all Notes not
delivered to the Trustee for cancellation otherwise have become due and payable or have been called for redemption pursuant to paragraph 4 of the Notes, and the Company has irrevocably deposited or caused to be deposited with the Trustee trust funds
in trust in an amount of money sufficient to pay and discharge the entire Indebtedness (including all principal and accrued interest) on the Notes not theretofore delivered to the Trustee for cancellation, 

(b)        the Company has paid all sums payable by it under this Indenture, 

(c)        the Company has delivered irrevocable instructions to the Trustee to apply
the deposited money toward the payment of the Notes at maturity or on the redemption date, as the case may be, and 

(d)        the Trustee, for the benefit of the Holders, has a valid, perfected,
exclusive security interest in this trust. 
 In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel
(as to legal matters) stating that all conditions precedent to satisfaction and discharge have been complied with. 
 After such delivery, the Trustee shall
acknowledge in writing the discharge of the Company’s and the Guarantors’ obligations under the Notes, the Note Guarantees and the Indenture except for those surviving obligations specified in Section 8.02 of the Base Indenture. 

ARTICLE SEVEN 

Miscellaneous 

Section 7.01.        Governing Law. 

THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS SUPPLEMENTAL INDENTURE, THE NOTES AND THE NOTE GUARANTEES. 

Section 7.02.        No Adverse Interpretation of Other Agreements. 

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

  
 -21- 

 Section 7.03.        No Recourse Against
Others. 
 All liability (i) described in Paragraph 11 of the Notes, of any director, officer, employee or stockholder, as such, of
the Company and (ii) described in the second paragraph of the guarantees of each Guarantor, of any stockholder, officer, director, employee, incorporator, partner, member or manager, as such, of any Guarantor, is expressly waived and released
as a condition of, and as a consideration for, the execution of the Indenture and the issuance of the Notes. It is understood that this limitation on recourse is made expressly for the benefit of any such shareholder, employee, officer or director
and may be enforced by any of them. 
 Section 7.04.        Successors and Assigns. 

All covenants and agreements of the Company and the Guarantors in this Supplemental Indenture and the Notes shall bind their respective
successors and assigns. All agreements of the Trustee, any additional trustee and any Paying Agents in this Supplemental Indenture shall bind its successors and assigns. 

Section 7.05.        Duplicate Originals. 

The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement. 
 The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall
constitute effective execution and delivery of this Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 

Section 7.06.        Severability. 

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

  
 -22- 

 SIGNATURES 

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

 

			
	TRI POINTE GROUP, INC.
		
	By:	 	/s/ Michael D. Grubbs
		 	Name:  Michael D. Grubbs
		 	Title:  Chief Financial Officer
	
	 TRI POINTE HOMES, INC.

TRI POINTE HOLDINGS, INC.
 TRI POINTE COMMUNITIES,
INC.,
 as Guaranteeing Subsidiaries

		
	By:	 	/s/ Bradley W. Blank
		 	Name:  Bradley W. Blank
		 	Title:  Secretary
	
	 TRI POINTE CONTRACTORS, LP,

as Guaranteeing Subsidiary

By:  TRI Pointe Communities, Inc., its General Partner

		
	By:	 	/s/ Bradley W. Blank
		 	Name:  Bradley W. Blank
		 	Title:  Secretary
	
	 MARACAY 91, L.L.C.

MARACAY HOMES, L.L.C.
 MARACAY BRIDGES, LLC

MARACAY VR, LLC
 PARDEE HOMES

PARDEE HOMES OF NEVADA
 THE QUADRANT CORPORATION

TRENDMAKER HOMES, INC.
 WINCHESTER HOMES INC.,

as Guaranteeing Subsidiaries

		
	By:	 	/s/ Bradley W. Blank
		 	Name:  Bradley W. Blank
		 	Title:  Secretary

  
 S-1 

 
			
	 MARACAY THUNDERBIRD, L.L.C.,

as Guaranteeing Subsidiary
 By:  Maracay Homes, L.L.C.,
its Manager

		
	By: 	 	/s/ Bradley W. Blank
		 	Name:  Bradley W. Blank
		 	Title:  Secretary

  
 S-2 

 U.S. BANK NATIONAL ASSOCIATION, as Trustee 

 

			
		
	By: 	 	/s/ Fonda Hall
		 	Name:  Fonda Hall
		 	Title:  Vice President

  
 S-3 

 EXHIBIT A 

[FORM OF FACE OF NOTE] 

[Global Note Legend] 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF
THE HOLDERS OF BENEFICIAL INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06 OF THE BASE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN. 

  
 A-1 

					
	 No.
	  	 	CUSIP No.: 87265H AF6	 
		  	 	ISIN No.: US87265HAF64	 

 5.25% Senior Notes due 2027 

TRI POINTE GROUP, INC. 
 a
Delaware corporation 
 promises to pay to [            ] or registered assigns 

the principal sum of $[            ]
(            ) Dollars on June 1, 2027. 
 Interest Payment Dates: June 1 and
December 1 
 Record Dates: May 15 and November 15 

Dated: 
  

			
	TRI POINTE GROUP, INC.
		
	By:  	 	 
		 	Title:
		
	By:  	 	 
		 	Title:

 Authenticated: 
  

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

		
	By:  	 	 
		 	Authorized Signatory

  
 A-2 

 [FORM OF REVERSE SIDE OF NOTE] 

TRI POINTE GROUP, INC. 

5.25% Senior Notes due 2027 

TRI POINTE GROUP, INC., a Delaware corporation (together with its successors and assigns, the “Company”), issued this Note
under an Indenture dated as of May 23, 2016 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”), as supplemented by the Second Supplemental Indenture dated as of June 8,
2017 (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), by and among the Company, the Guarantors party thereto and U.S. Bank National Association, as trustee (in such capacity, the
“Trustee”), to which reference is hereby made for a statement of the respective rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders and of the terms upon which the Notes are, and are to
be, authorized and delivered. All terms used in this Notes that are defined in the Indenture shall have the meanings assigned to them therein. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the TIA, if applicable. The Notes are subject to all such terms, and Holders are referred to the Indenture and the TIA, if applicable, for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Indenture does not limit the aggregate principal amount of Notes that may be issued thereunder. 

 

	1.	Interest. 

 The Company promises to pay interest on the principal amount of this Note at
the rate per annum shown above. The Company will pay interest semiannually on June 1 and December 1 of each year (each, an “Interest Payment Date”), commencing December 1, 2017, until the principal is paid or made
available for payment. Interest on the Securities will accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from June 8,
20171, provided that, if there is no existing default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next
succeeding interest payment date, interest shall accrue from such interest payment date. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  

	2.	Method of Payment. 

 The Company will pay interest on the Notes (except defaulted
interest, if any, which will be paid on such special payment date to Holders of record on such special record date as may be fixed by the Company) to the persons who are registered Holders of Notes at the close of business on May 15 or
November 15, as the case may be, immediately preceding the applicable interest payment date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States
that at the time of payment is legal tender for payment of public and private debts. 
  

	1 	In the case of Notes issued on the Issue Date 

  
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	3.	Paying Agent and Registrar. 

 Initially, the Trustee will act as Paying Agent and
Registrar. The Company may change or appoint any Paying Agent, Registrar or co-Registrar without notice. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or co-Registrar. 

 

	4.	Optional Redemption. 

 The Company may, at its option, redeem the Notes at any time or
from time to time, in whole or in part. The redemption price will be equal to the greater of the following amounts: (i) 100% of their principal amount of the Notes being redeemed; and (ii) the present value of the Remaining Scheduled
Payments on the Notes being redeemed on the redemption date, discounted to the redemption date, on a semiannual basis, at the Treasury Rate plus 50 basis points (0.50%). 

At any time on or after December 1, 2026 (six months prior to the maturity date of the Notes), the Company may redeem the Notes, in whole
at any time or in part from time to time, at 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to the date of redemption. 

The Company will also pay accrued and unpaid interest on such Notes to the redemption date. In determining the redemption price and accrued
interest, interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. 
 Notice of redemption may state
that the redemption is conditioned upon the occurrence of other events, and will be mailed by first class mail (or delivered electronically in accordance with the procedures of the Depositary) at least 30 days but not more than 60 days before the
redemption date to each Holder of Notes to be redeemed at its registered address (with a copy to the Trustee). Notes in denominations larger than $2,000 may be redeemed in part. On and after the redemption date interest ceases to accrue on Notes or
portions of them called for redemption so long as the Issuer has deposited with the paying agent for such Notes funds in satisfaction of the redemption price (including accrued and unpaid interest on such Notes to be redeemed) pursuant to the
Indenture, provided that if the Company shall default in the payment of such Notes at the redemption price together with accrued interest, interest shall continue to accrue at the rate borne by the Notes. 

 

	5.	Denominations, Transfer, Exchange. 

 The Notes are in registered form only without
coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may transfer or exchange Notes by presentation of such Notes to the Registrar or a co-Registrar with a request to register the transfer or to
exchange them for an equal principal amount of Notes of other denominations. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Registrar need not transfer or exchange any Note selected for redemption or purchase, except the unredeemed or unpurchased part thereof if the Note is redeemed or purchased in part, or transfer or exchange any Notes
for a period of 15 days before a selection of Notes to be redeemed or purchased. 
  

	6.	Persons Deemed Owners. 

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

  
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	7.	Unclaimed Money. 

 Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal or interest that remains unclaimed for two years, and thereafter, Holders entitled to the money must look to the Company for payment as
general creditors. 
  

	8.	Amendment, Supplement, Waiver. 

 The Indenture or the Notes may be amended or
supplemented and any existing default or compliance with any provision of, the Indenture may be waived in accordance with the terms of the Indenture. 
  

	9.	Successor. 

 When a successor assumes all the obligations of its predecessor under the
Notes and the Indenture, the predecessor will be released from those obligations. 
  

	10.	Trustee Dealings With Company. 

 Subject to certain limitations imposed by the TIA, the
Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its affiliates, and may otherwise deal with the Company or its affiliates, as if it were not
Trustee, including owning or pledging the Notes. 
  

	11.	No Recourse Against Others. 

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

 

	12.	Discharge of Indenture. 

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

	13.	Authentication. 

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

	14.	Abbreviations. 

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

  
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	15.	GOVERNING LAW. 

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

	16.	CUSIP and ISIN Numbers. 

 Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Notes and has directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of repurchase and reliance may be placed only on the other identification numbers placed thereon. 

 

	17.	Copies. 

 The Company will furnish to any Holder upon written request and without charge
a copy of the Indenture and the applicable Authorizing Resolution or supplemental indenture. Requests may be made to: TRI Pointe Group, Inc., 19540 Jamboree Road, Suite 300, Irvine, California 92612, Attention: Investor Relations. 

 

	18.	Change of Control Triggering Event. 

 In the event that there shall occur a Change of
Control Triggering Event, except as otherwise provided in the Indenture, the Company shall make an offer to each Holder of the Notes to purchase all or any part of such Holder’s Notes at 101% of the principal amount thereof plus accrued and
unpaid interest to the date of purchase in accordance with the procedures set forth in the Indenture. 
  

	19.	Defaults and Remedies. 

 The Events of Default relating to the Notes are defined in
Article Six of the Base Indenture as modified by the Supplemental Indenture. Upon the occurrence of an Event of Default, the rights and obligations of the Company and the Holders shall be as set forth in the Indenture. 

 

	20.	Conflicts 

 To the extent this Note conflicts with the terms of the Indenture the terms
of the Indenture will govern. 

  
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 ASSIGNMENT FORM 

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

	
	I or we assign and transfer this Note to
	
	   

	(Insert assignee’s social security or tax ID number)
	
	   

	
	   

	
	   

	
	   

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

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

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

Signature Guarantee:
                                        

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

  
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 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have all or any part of this Note purchased by the Company pursuant to Section 3.06 of the Indenture, check the
box below: 
 ☐    Section 3.06 

If you want to have only part of the Note purchased by the Company pursuant to Section 3.06 of the Indenture, state the amount you elect
to have purchased: 

$                         
                                         
           
   ($2,000 or integral multiples of $1,000 in excess thereof) 

Date:                         
                      
 Your
Signature:                                       
                                         
                             

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

	
	   

	Signature Guaranteed

 SIGNATURE GUARANTEE 

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

  
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 EXHIBIT B 

[FORM OF NOTATION ON NOTE OF GUARANTEE] 

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

No past, present or future stockholder, officer, director, employee, incorporator, partner, member or manager, as such, of any of the
Guarantors shall have any liability under the Guarantee by reason of such person’s status as stockholder, officer, director, employee, incorporator, partner, member or manager. Each Holder of a Note by accepting a Note waives and releases all
such liability. This waiver and release are part of the consideration for the issuance of the Guarantees. 
 Each Holder of the Notes by
accepting a Note agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of the Indenture. 

THE GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

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

					
	[Signature of Guarantor(s)]
		
	By:	 	 
		 	Name:	 	
		 	Title	 	
		
	By:	 	 
		 	Name:	 	
		 	Title	 	

  
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