Document:

EX-4.1

 Exhibit 4.1 

EXECUTION VERSION 
  

 
  

D.R. HORTON, INC. AND THE GUARANTORS PARTY HERETO 

2.500% Senior Notes due 2024 
  

 
 Supplemental
Indenture 
 Dated as of October 10, 2019 
  

 
 BRANCH
BANKING AND TRUST COMPANY, 
 as 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.
	 	Limitations on Secured Debt	  	 	11	 
	 Section 3.02.
	 	Restrictions on Sale and Leaseback Transactions	  	 	12	 
	 Section 3.03.
	 	Offer to Purchase upon Change of Control Triggering Event	  	 	12	 
			
		 	ARTICLE FOUR	  			
			
		 	MISCELLANEOUS	  			
			
	 Section 4.01.
	 	Governing Law	  	 	14	 
	 Section 4.02.
	 	No Adverse Interpretation of Other Agreements	  	 	14	 
	 Section 4.03.
	 	No Recourse Against Others	  	 	14	 
	 Section 4.04.
	 	Successors and Assigns	  	 	14	 
	 Section 4.05.
	 	Duplicate Originals	  	 	14	 
	 Section 4.06.
	 	Severability	  	 	14	 

  

			
	Exhibit A	  	Form of Security
	Exhibit B	  	Form of Notification Security of Guarantee

  

  
 -i- 

 First Supplemental Indenture dated as of October 10, 2019 (“Supplemental
Indenture”), by and among D.R. Horton, Inc., a Delaware corporation (the “Company”), each of the subsidiaries of the Company that are signatories hereto as the initial guarantors (the “Initial Guarantors”)
and Branch Banking and Trust Company, as the trustee (including any successor replacing such person in accordance with the applicable provisions of the Indenture, the “Trustee”), to the Indenture dated as of the date hereof, by and
between the Company and the Trustee (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”). 

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 Initial 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 2.500% Senior Notes due 2024, substantially in the form attached hereto as Exhibit A (including any
Additional Notes, as defined below, the “Notes”), initially guaranteed by the Initial 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 Initial
Guarantors and the Trustee for such Notes, 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 Initial 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 Initial 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 “2.500% Senior Notes due 2024.” 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 2.500% per annum; it shall pay interest on overdue installments
of interest at 2.500% per annum. The Notes shall be guaranteed by the Guarantors as provided in 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 Base Indenture) so long as the Notes are outstanding or until defeasance or other discharge
pursuant to the Base Indenture. An aggregate principal amount of $500,000,000 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. 
 Section 1.02. Specified Modifications in Respect of the Notes. 

(1) Article Six of the Base Indenture shall apply in respect of the Notes; provided that with respect to clause (3) under the first
paragraph and the second paragraph of Section 6.01 of the Base Indenture, Section 3.03 hereof shall be deemed such specified provision which breach thereof shall constitute, together with Article Five of the Base Indenture, an Event of
Default with notice but without passage of time. 
 (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 3.03 hereof, irrespective of any determination that withholding of such notice is in the interest of the
Holders of the Notes. 
 (3) Article Ten of the Base Indenture shall apply in respect of the Notes; provided that, notwithstanding
anything to the contrary in the Base Indenture and this Supplemental Indenture, any amendment or waiver of Section 3.03 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. 

  
 -2- 

 “Attributable Debt” means, in respect of a Sale and Leaseback Transaction,
the present value (discounted at the weighted average effective interest cost per annum of the outstanding debt of the Company, compounded semiannually) of the obligation of the lessee for rental payments during the remaining term of the lease
included in such transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended or, if earlier, until the earliest date on which the lessee may terminate such lease upon payment of a penalty
(in which case the obligation of the lessee for rental payments shall include such penalty), after excluding all amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water and utility rates and similar
charges. 
 “Change of Control” means: 

(1) any sale, lease or other transfer (in one transaction or a series of transactions) of all or substantially all of the
consolidated assets of the Company and its Subsidiaries to any Person (other than a Subsidiary of the Company); provided, however, that a transaction where the holders of all classes of Voting Stock of the Company immediately prior to
such transaction own, directly or indirectly, Voting Stock representing more than 50% of the voting power of all Voting Stock of such Person immediately after such transaction shall not be a Change of Control; 

(2) a “person” or “group” (within the meaning of Section 13(d) of the Exchange Act (other than
(x) the Company or (y) Donald R. Horton, Terrill J. Horton, or their respective wives, children, grandchildren and other descendants, or any trust or other entity formed or controlled by any of such individuals (each an “Excluded
Person”))) publicly discloses, including, without limitation, by filing a Schedule 13D or Schedule TO, or the Company or any of its Subsidiaries publicly discloses, including without limitation, by filing any other schedule, form or report
under the Exchange Act (including, without limitation, a Current Report on Form 8-K), facts indicating that such person or group has become the ultimate “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of Voting Stock of the Company representing more than 50% of the voting power of the Voting Stock of the Company; or 

(3) the stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company;
provided, however, that a liquidation or dissolution of the Company that is part of a transaction that does not constitute a Change of Control under the proviso contained in clause (1) above shall not constitute a Change of
Control. 
 Any person or group whose acquisition of beneficial ownership constitutes a Change of Control under clause (2) of the
foregoing definition in respect of which a Change of Control Offer is made in accordance with the requirements of the Indenture will thereafter, together with its Affiliates, constitute an additional Excluded Person. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Ratings Downgrade Event. 

“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 (the “Remaining Life”) of the Notes to be redeemed calculated as if the maturity date of such Notes was the Par Call Date, 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 Life of the Notes. 

  
 -3- 

 “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 such Reference Treasury Dealer Quotations, or (ii) if the
Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Consolidated
Adjusted Tangible Assets” of the Company as of any date means the Consolidated Tangible Assets of the Company and the Guarantors at the end of the fiscal quarter immediately preceding such date less (a) the book value of any assets
securing any Non-Recourse Indebtedness, and (b) all short term liabilities of the Company and the Guarantors, 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 to a maturity date more than one year after such date) and liabilities in respect of retiree benefits other than persons for which the Company or the Guarantors are required to
accrue pursuant to Accounting Standards Codification 715-60 (or any successor provision), in each case as determined in accordance with GAAP. 

“Consolidated Tangible Assets” of the Company as of any date means the book value of the total assets of the Company and the
Guarantors (less applicable reserves) on a consolidated basis at the end of the fiscal quarter immediately preceding such date, less: (1) Intangible Assets and (2) appropriate adjustments on account of minority interests of other Persons
holding equity investments in Guarantors, in each case as determined in accordance with GAAP. 
 “Fitch” means Fitch
Ratings. 
 “GAAP” means generally accepted accounting principles set forth in the accounting standards codification of the
Financial Accounting Standards Board or in such other statements by such or any other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the Issue Date. 

“Guarantors” means (i) initially, each of: 

C. Richard Dobson Builders, Inc., a Virginia corporation; 

CH Investments of Texas, Inc., a Delaware corporation; 

CHI Construction Company, an Arizona corporation; 

CHTEX of Texas, Inc., a Delaware corporation; 

Continental Homes, Inc., a Delaware corporation; 

Continental Homes of Texas, L.P., a Texas limited partnership; 

Continental Residential, Inc., a California corporation; 

D.R. Horton - CHAustin, LLC, a Delaware limited liability company; 

D.R. Horton - Colorado, LLC, a Delaware limited liability company; 

D.R. Horton - Crown, LLC, a Delaware limited liability company; 

D.R. Horton - Emerald, Ltd., a Texas limited partnership; 

D.R. Horton - Georgia, LLC, a Delaware limited liability company; 

D.R. Horton - Highland, LLC, a Delaware limited liability company; 

D.R. Horton - Indiana, LLC, a Delaware limited liability company; 

  
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 D.R. Horton - Iowa, LLC, a Delaware limited liability company; 

D.R. Horton - Permian, LLC, a Delaware limited liability company; 

D.R. Horton - Regent, LLC, a Delaware limited liability company; 

D.R. Horton - Schuler Homes, LLC, a Delaware limited liability company; 

D.R. Horton - Terramor, LLC, a Delaware limited liability company; 

D.R. Horton - Texas, Ltd., a Texas limited partnership; 

D.R. Horton - WPH, LLC, a Delaware limited liability company; 

D.R. Horton, Inc. - Birmingham, an Alabama corporation; 

D.R. Horton, Inc. -Chicago, a Delaware corporation; 

D.R. Horton, Inc. - Dietz-Crane, a Delaware corporation; 

D.R. Horton, Inc. - Greensboro, a Delaware corporation; 

D.R. Horton, Inc. - Gulf Coast, a Delaware corporation; 

D.R. Horton, Inc. - Huntsville, a Delaware corporation; 

D.R. Horton, Inc. - Jacksonville, a Delaware corporation; 

D.R. Horton, Inc. - Louisville, a Delaware corporation; 

D.R. Horton, Inc. - Midwest, a California corporation; 

D.R. Horton, Inc. - Minnesota, a Delaware corporation; 

D.R. Horton, Inc. - New Jersey, a Delaware corporation; 

D.R. Horton, Inc. - Portland, a Delaware corporation; 

D.R. Horton, Inc. - Torrey, a Delaware corporation; 

D.R. Horton BAY, Inc., a Delaware corporation; 

D.R. Horton CA2, Inc., a California corporation; 

D.R. Horton CA3, Inc., a Delaware corporation; 

D.R. Horton CA4, LLC, a Delaware limited liability company; 

D.R. Horton Cruces Construction, Inc., a Delaware corporation; 

D.R. Horton LA North, Inc., a Delaware corporation; 

D.R. Horton Los Angeles Holding Company, Inc., a California corporation; 

D. R. Horton Management Company, Ltd., a Texas limited partnership; 

D.R. Horton Materials, Inc., a Delaware corporation; 

D.R. Horton Serenity Construction, LLC, a Delaware limited liability company; 

D.R. Horton VEN Inc., a California corporation; 

DRH Cambridge Homes, LLC, a Delaware limited liability company; 

DRH Construction, Inc., a Delaware corporation; 

DRH - HWY 114, LLC, a Delaware limited liability company; 

DRH Regrem VII, LP, a Texas limited partnership; 

DRH Regrem XII, LP, a Texas limited partnership; 

DRH Regrem XIV, Inc., a Delaware corporation; 

DRH Regrem XV, Inc., a Delaware corporation; 

DRH Regrem XVI, Inc., a Delaware corporation; 

DRH Regrem XVII, Inc., a Delaware corporation; 

DRH Regrem XVIII, Inc., a Delaware corporation; 

DRH Regrem XIX, Inc., a Delaware corporation; 

DRH Regrem XX, Inc., a Delaware corporation; 

DRH Regrem XXI, Inc., a Delaware corporation; 

DRH Regrem XXII, Inc., a Delaware corporation; 

DRH Regrem XXIII, Inc., a Delaware corporation; 

DRH Regrem XXIV, Inc., a Delaware corporation; 

DRH Regrem XLII, LLC, a Delaware limited liability company; 

DRH Regrem XLIII, LLC, a Delaware limited liability company; 

  
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 DRH Regrem XLIV, LLC, a Delaware limited liability company; 

DRH Regrem XLV, LLC, a Delaware limited liability company; 

DRH Regrem XLVI, LLC, a Delaware limited liability company; 

DRH Regrem XLVII, LLC, a Delaware limited liability company; 

DRH Regrem XLVIII, LLC, a Delaware limited liability company; 

DRH Regrem XLIX, LLC, a Delaware limited liability company; 

DRH Regrem L, LLC, a Delaware limited liability company; 

DRH Regrem LI, LLC, a Delaware limited liability company; 

DRH Regrem LII, LLC, a Delaware limited liability company; 

DRH Regrem LIII, LLC, a Delaware limited liability company; 

DRH Regrem LIV, LLC, a Delaware limited liability company; 

DRH Regrem LV, LLC, a Delaware limited liability company; 

DRH Regrem XXV, Inc., a Delaware corporation; 

DRH Southwest Construction, Inc., a California corporation; 

DRH Tucson Construction, Inc., a Delaware corporation; 

HPH Homebuilders 2000 L.P., a California limited partnership; 

KDB Homes, Inc., a Delaware corporation; 

Lexington Homes - DRH, LLC, a Delaware limited liability company; 

Meadows I, Ltd., a Delaware corporation; 

Meadows II, Ltd., a Delaware corporation; 

Meadows VIII, Ltd., a Delaware corporation; 

Meadows IX, Inc., a New Jersey corporation; 

Meadows X, Inc., a New Jersey corporation; 

Melody Homes, Inc., a Delaware corporation; 

Pacific Ridge - DRH, LLC, a Delaware limited liability company; 

Schuler Homes of Arizona LLC, a Delaware limited liability company; 

Schuler Homes of California, Inc., a California corporation; 

Schuler Homes of Oregon, Inc., an Oregon corporation; 

Schuler Homes of Washington, Inc., a Washington corporation; 

SGS Communities at Grande Quay L.L.C., a New Jersey limited liability company; 

SHA Construction LLC, a Delaware limited liability company; 

SHLR of California, Inc., a California corporation; 

SHLR of Nevada, Inc., a Nevada corporation; 

SHLR of Washington, Inc., a Washington corporation; 

SRHI LLC, a Delaware limited liability company; 

SSHI LLC, a Delaware limited liability company; 

Vertical Construction Corporation, a Delaware corporation; 

Walker Drive, LLC, a Delaware limited liability company; 

Western Pacific Housing-Antigua, LLC, a Delaware limited liability company; 

Western Pacific Housing-Broadway, LLC, a Delaware limited liability company; 

Western Pacific Housing-Canyon Park, LLC, a Delaware limited liability company; 

Western Pacific Housing-Carrillo, LLC, a Delaware limited liability company; 

Western Pacific Housing-Communications Hill, LLC, a Delaware limited liability company; 

Western Pacific Housing-Copper Canyon, LLC, a Delaware limited liability company; 

Western Pacific Housing-Creekside, LLC, a Delaware limited liability company; 

Western Pacific Housing-Lomas Verdes, LLC, a Delaware limited liability company; 

Western Pacific Housing-McGonigle Canyon, LLC, a Delaware limited liability company; 

  
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 Western Pacific Housing-Mountaingate, L.P., a California limited
partnership; 
 Western Pacific Housing-Norco Estates, LLC, a Delaware limited liability company; 

Western Pacific Housing-Pacific Park II, LLC, a Delaware limited liability company; 

Western Pacific Housing-Park Avenue East, LLC, a Delaware limited liability company; 

Western Pacific Housing-Park Avenue West, LLC, a Delaware limited liability company; 

Western Pacific Housing-Playa Vista, LLC, a Delaware limited liability company; 

Western Pacific Housing-River Ridge, LLC, a Delaware limited liability company; 

Western Pacific Housing-Terra Bay Duets, LLC, a Delaware limited liability company; 

Western Pacific Housing-Torrey Meadows, LLC, a Delaware limited liability company; 

Western Pacific Housing-Torrey Village Center, LLC, a Delaware limited liability company; 

Western Pacific Housing-Windemere, LLC, a Delaware limited liability company; 

Western Pacific Housing, Inc., a Delaware corporation; 

Western Pacific Housing Management, Inc., a California corporation; and 

WPH-Camino Ruiz, LLC, a Delaware limited liability company; 

and (ii) each of the Company’s Subsidiaries that becomes a guarantor of the Notes pursuant to the provisions of the Indenture, in each case until
subsequently released from its Guarantee pursuant to the provisions of the Indenture. 
 “Intangible Assets” means with
respect to the Notes, all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, write-ups of assets over their prior
carrying value (other than write-ups which occurred prior to the Issue Date and other than, in connection with the acquisition of an asset, the write-up of the value of
such asset (within one year of its acquisition) to its fair market value in accordance with GAAP) and all other items which would be treated as intangibles on the consolidated balance sheet of the Company and the Guarantors prepared in accordance
with GAAP. 
 “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor
rating categories of Moody’s); a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of BBB- or better by
S&P (or its equivalent under any successor rating categories of S&P); and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company. 

“Issue Date” means October 10, 2019, the date on which the Notes are originally issued under this Supplemental
Indenture. 
 “Moody’s” means Moody’s Investors Service, Inc. 

“Non-Guarantor Subsidiary” means any Subsidiary that is not a Guarantor. 

“Permitted Liens” means any Lien: 

(1) incurred or deposits made to secure the performance of tenders, bids, leases, statutory obligations, surety and appeal
bonds, development obligations, progress payments, government contracts, utility services, developer’s or other obligations to make on-site or off-site improvements
and other obligations of like nature (exclusive of obligations for the payment of borrowed money but including the items referred to in the parenthetical in clause (i)(a) of the definition of “Indebtedness”), in each case incurred in the
ordinary course of business of the Company and the Guarantors, 

  
 -7- 

 (2) constituting attachment or judgment liens, 

(3) securing Non-Recourse Indebtedness of the Company or any Guarantor; provided
that it applies only to the Property financed out of the net proceeds of such Non-Recourse Indebtedness (and any accessions thereto and proceeds thereof), 

(4) securing Purchase Money Indebtedness; provided that it applies only to the Property acquired, constructed or
improved with the proceeds of such Purchase Money Indebtedness (and any accessions thereto and proceeds thereof), 
 (5)
constituting purchase money Liens (including Capitalized Lease Obligations); provided that it applies only to the Property acquired (and any accessions thereto and proceeds thereof) and the related Indebtedness is incurred within 180 days
after the acquisition of such Property, 
 (6) constituting the right of a lender or lenders to which the Company or a
Guarantor 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 Guarantor with or held by such lender or lenders or its
affiliates, 
 (7) constituting the pledge or deposit of cash or other Property in conjunction with obtaining surety,
performance, completion or payment bonds and letters of credit or other similar instruments or providing earnest money obligations, escrows or similar purpose undertakings or indemnifications in the ordinary course of business of the Company and the
Guarantors, 
 (8) incurred in connection with pollution control, industrial revenue, water, sewage or other public
improvement bonds or any similar bonds, 
 (9) statutory Liens of landlords and carriers’, warehousemen’s,
mechanics’, suppliers’, materialmen’s, repairmen’s or other Liens imposed by law and arising in the ordinary course of business, 

(10) leases or subleases granted to others not materially interfering with the ordinary course of business of the Company and
the Guarantors taken as a whole, 
 (11) Liens securing community development district bonds or similar bonds issued by any
governmental authority to accomplish similar purposes, 
 (12) Liens on assets and properties of joint ventures or limited
partnerships that are not wholly-owned Subsidiaries of the Company or any of the Guarantors, and 
 (13) Liens securing the
Company’s or the Guarantors’ obligations to third parties, in connection with joint development agreements with such third parties, to perform and/or pay for or reimburse the costs of construction and/or development related to or
benefiting Company’s or the Guarantors’ Property and Property belonging to such third parties. 

  
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 “Purchase Money Indebtedness” means Indebtedness of the Company or any
Guarantor incurred for the purpose of financing all or any part of the purchase price, or the cost of construction or improvement, of any Property to be used in the ordinary course of business by the Company and the Guarantors; provided,
however, that (1) the aggregate principal amount of such Indebtedness shall not exceed such purchase price or cost and (2) such Indebtedness shall be incurred no later than 180 days after the acquisition of such Property or
completion of such construction or improvement. 
 “Rating Agency” means (1) each of Moody’s, Fitch and S&P;
or (2) if any of Moody’s, Fitch or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available (for reasons outside of the Company’s control), a “nationally recognized statistical rating
organization” as defined under Section 3(a)(62) of the Exchange Act selected by the Company (as certified by a resolution of the Company’s Board of Directors) as a replacement Rating Agency for Moody’s, Fitch or S&P, or all
three, as the case may be. 
 “Ratings Downgrade Event” means the rating on the Notes is lowered independently by each of
the Rating Agencies and the Notes are rated below Investment Grade by all three Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by
any of the Rating Agencies); provided that a Ratings Downgrade Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be
deemed a Ratings Downgrade Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform
the Trustee in writing at the Company’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the
applicable Change of Control shall have occurred at the time of the Ratings Downgrade Event). 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date. 

“Reference Treasury Dealers” means (a) J.P. Morgan Securities LLC, Mizuho Securities (USA) LLC and Wells Fargo
Securities, LLC (or any of their respective affiliates which are Primary Treasury Dealers), and their respective successors; provided, however, that if any of the foregoing shall cease 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, and (b) any other Primary Treasury Dealer(s) selected by the Company. 

“Remaining Scheduled Payments” means, with respect to any Note, the remaining scheduled payments of the principal thereof to
be redeemed and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that if such redemption date is not an Interest Payment Date (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 the date of such redemption. 

  
 -9- 

 “Revolving Credit Facility” means the revolving credit facility entered
into by the Company pursuant to that certain Credit Agreement dated as of September 7, 2012, as amended prior to the Issue Date and as may be further amended or modified from time to time, by and among the Company, Mizuho Bank LTD. (as
successor in interest to The Royal Bank of Scotland plc), as administrative agent, and the lenders and other parties thereto. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 

“Sale and Leaseback Transaction” means a sale or transfer made by the Company or a Guarantor of any Property which is either
(a) a manufacturing facility, project club house, amenity center and common area, office building, warehouse or distribution facility whose book value equals or exceeds 1% of Consolidated Adjusted Tangible Assets as of the date of determination
or (b) another Property which exceeds 5% of Consolidated Adjusted 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
Guarantor, provided that “Sale and Leaseback Transaction” shall not include (1) a sale-leaseback transaction relating to a Property entered into within 180 days after the later of (i) the date of acquisition of such
Property by the Company or a Guarantor and (ii) the date of the completion of construction or commencement of full operations on such Property, whichever is later, (2) a sale-leaseback transaction which has a lease of no more than three
years in length or (3) a sale or transfer made to the Company or another Guarantor. 
 “Secured Debt” means any
Indebtedness of the Company or any Guarantor which is secured by (a) a Lien in any Property of the Company or a Guarantor (other than property excluded in clause (b)) or (b) a Lien on Capital Stock owned directly or indirectly by the
Company or a Guarantor in a corporation or other entity (other than a Non-Guarantor Subsidiary) or in the rights of the Company or a Guarantor in respect of Indebtedness of a corporation or other entity (other
than a Non-Guarantor Subsidiary) in which the Company or a Guarantor owns Capital Stock. 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. For the avoidance of doubt, cash collateralized letters of credit issued under the Revolving Credit Facility shall not constitute Secured Debt. 

“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. 

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of
any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

  
 -10- 

 ARTICLE THREE 

Covenants 
 Section 3.01.
Limitations on Secured Debt. 
 The Company will not, and will not cause or permit any Guarantor to, create, incur, assume or
guarantee any Secured Debt unless the Notes are secured equally and ratably with (or prior to) such Secured Debt, provided that the foregoing does not prohibit the creation, incurrence, assumption or guarantee of: 

(1) Secured Debt which is secured by Liens on model homes, homes held for sale, homes that are under construction or under contract for sale,
contracts for the sale of homes, land (improved or unimproved), contracts for the sale of land, project club houses, amenity centers and common areas, manufacturing plants, warehouses, distribution facilities or office buildings, and fixtures and
equipment located at or on any of the foregoing or leasehold or other interests in any of the foregoing; 
 (2) Secured Debt which is secured
by a Lien on Property at the time of its acquisition by the Company or a Guarantor, which Lien secures obligations assumed by the Company or a Guarantor, or on the Property of a corporation or other entity at the time it is merged into or
consolidated with the Company or a Guarantor or becomes a Guarantor as a result of the acquisition of its Capital Stock by the Company or a Guarantor (other than Secured Debt created in contemplation of the acquisition of such Property or the
consummation of such a merger or consolidation or acquisition where the Lien attaches to or affects the Property of the Company or a Guarantor prior to such transaction); 

(3) Secured Debt which is secured by Liens arising from conditional sales agreements or title retention agreements with respect to Property
acquired by the Company or a Guarantor; 
 (4) Secured Debt which is secured by Liens securing Indebtedness of a Guarantor owing to the
Company or to another Guarantor; 
 (5) Indebtedness secured by a Permitted Lien; and 

(6) any amendment, restatement, supplement, renewal, replacement, extension, refinancing or refunding, in whole or in part (“Refinanced
Debt”), of Secured Debt that was permitted to be created, incurred, assumed or guaranteed pursuant to clauses (1) through (5) above at the time of the original creation, incurrence, assumption or guarantee thereof, or by this clause
(6), provided in each case that the principal amount of the Refinanced Debt does not exceed the principal amount of the Secured Debt being refinanced, extended, renewed or replaced (plus accrued interest thereon and expenses of refinancing,
extension, renewal or replacement) and such Refinanced Debt is not secured by any additional Properties of the Company or any Guarantor (other than accessions and proceeds). 

In addition, the Company and the Guarantors may create, incur, assume or guarantee Secured Debt, without equally or ratably (or on a senior
basis) securing the Notes, if immediately thereafter the sum of (1) the aggregate principal amount (or the accreted value thereof, in the case of any Secured Debt issued with original issue discount) of all Secured Debt outstanding (excluding
Secured Debt permitted under clauses (1) through (6) above and any Secured Debt in relation to which the Notes have been secured equally and ratably (or on a senior basis)) 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 (1) and (2) and if the 365 day period referenced therein shall have expired, also clause (3) under
Section 3.02) as of the date of determination would not exceed 20% of Consolidated Adjusted Tangible Assets. 

  
 -11- 

 Section 3.02. Restrictions on Sale and Leaseback Transactions. 

The Company will not, and will not cause or permit any Guarantor to, enter into any Sale and Leaseback Transaction, unless: 

(1) notice is promptly given to the Trustee of the Sale and Leaseback Transaction; 

(2) fair value is received by the Company or a Guarantor for the Property sold (as determined in good faith pursuant to a resolution of the
Board of Directors delivered to the Trustee); and 
 (3) the Company or a Guarantor, 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 (a) the Notes or the Securities of any other Series under the Base Indenture (other than a Series that, pursuant to the applicable supplemental indenture or Authorizing Resolution, does not have the benefit of this Section or its
equivalent), including the cancellation by the Trustee of any Securities of any such Series delivered by the Company to the Trustee, or (b) any other Indebtedness of the Company or any Guarantor (other than Indebtedness which by its terms or
the terms of the instrument by which it was issued is subordinate in right of payment to the Notes or any such other Series), or 

(B) to the purchase by the Company or a Guarantor of Property substantially similar to the Property sold or transferred. 

Without regard to the foregoing, the Company and the Guarantors 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 (1) through (6) of the first paragraph of Section 3.01 above or Secured Debt in relation to which the Notes have
been secured equally and ratably (or on a senior basis)) 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 (1) and (2) and if the 365 day period referenced therein shall have expired, also clause (3) above) as of the date of determination would not exceed 20% of Consolidated Adjusted Tangible Assets. 

Section 3.03. Offer to Purchase upon Change of Control Triggering Event. 

(1) In the event that there shall occur a Change of Control Triggering Event, except as otherwise provided in Section 3.03(6) hereof, the
Company shall make an offer to each Holder of the Notes (the “Change of Control Offer”) 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 (the “Change of Control Purchase Price”) in accordance with the procedures set forth in this Section 3.03. 

  
 -12- 

 (2) On or before the thirtieth day after any Change of Control Triggering Event, or, at the
Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the Company shall be obligated to make the Change of Control Offer by mailing, or causing to be mailed, to all Holders of Notes, with
a copy to the Trustee, a notice regarding the Change of Control Triggering Event and the Change of Control Offer. The notice shall state the payment date for the repurchase of the Notes, which date shall be no earlier than 30 days and no later than
60 days from the date such notice is mailed. The notice may, if mailed prior to the date of consummation of the Change of Control, also state that the offer to purchase is conditioned on a Change of Control or Change of Control Triggering Event
occurring on or prior to the payment date specified in the notice. 
 (3) On the payment date of the Change of Control Purchase Price as
specified in the notice, the Company shall, to the extent lawful: 
 (A) accept for payment all Notes or portions of Notes
properly tendered and not withdrawn pursuant to the Change of Control Offer; 
 (B) deposit with the Paying Agent an amount
equal to the Change of Control Purchase Price in respect of all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer; and 

(C) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate
stating the aggregate principal amount of Notes or portions of Notes being purchased by the Company. 
 (4) The Paying Agent shall promptly
mail to each Holder of Notes properly tendered pursuant to the Change of Control Offer, the Change of Control Purchase Price for such Notes, and the Trustee shall promptly authenticate and mail, or cause to be transferred by book entry, to each such
Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that the new Note shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. The Company
shall publicly announce the results of the Change of Control Offer on or as soon as reasonably practicable after the payment date of the Change of Control Purchase Price. 

(5) The Company will comply with applicable law, including Section 14(e) of the Exchange Act and Rule
14e-1 thereunder, and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the purchase of the Notes as a result of a Change of
Control or Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with this Section 3.03, the Company will comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under this Section 3.03 by virtue of such conflict. 
 (6) The Company will not be required to
make a Change of Control Offer after a Change of Control Triggering Event if (1) a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third
party purchases all Notes properly tendered and not withdrawn under its offer, (2) the Company has given notice to redeem all Notes in accordance with paragraph 4 of the Notes and Article Three of the Base Indenture, unless and until there is a
default in payment of the applicable redemption price or (3) in connection with or in contemplation of any Change of Control for which a definitive agreement is in place, the Company or a third party has made an offer to purchase (an
“Alternate Offer”) any and all Notes properly tendered at a cash price equal to or higher than the Change of Control Purchase Price and has purchased all Notes properly tendered and not withdrawn in accordance with the terms of such
Alternate Offer. 

  
 -13- 

 (7) None of the provisions relating to a repurchase upon a Change of Control Triggering
Event shall be waivable by the Board of Directors of the Company. 
 ARTICLE FOUR 

Miscellaneous 
 Section 4.01.
Governing Law. 
 THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS SUPPLEMENTAL INDENTURE, THE NOTES AND THE GUARANTEES. 

Section 4.02. 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. 
 Section 4.03. 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 waived and released. 

Section 4.04. Successors and Assigns. 

All covenants and agreements of the Company and the Guarantors in this Supplemental Indenture and the Notes shall bind its successors and
assigns. All agreements of the Trustee in this Supplemental Indenture shall bind its successors and assigns. 
 Section 4.05. 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. 
 Section 4.06. 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. 

  
 -14- 

 SIGNATURES 

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

 

			
	D.R. HORTON, INC.
		
	By:	 	 
		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer

  
 -15- 

 GUARANTORS: 

 

			
	C. RICHARD DOBSON BUILDERS, INC.	  	CH INVESTMENTS OF TEXAS, INC.
	CHI CONSTRUCTION COMPANY	  	CHTEX OF TEXAS, INC.
	CONTINENTAL HOMES, INC.	  	CONTINENTAL RESIDENTIAL, INC.
	D.R. HORTON, INC. - BIRMINGHAM	  	D.R. HORTON, INC. -CHICAGO
	D.R. HORTON, INC. - DIETZ-CRANE	  	D.R. HORTON, INC. - GREENSBORO
	D.R. HORTON, INC. - GULF COAST	  	D.R. HORTON, INC. - HUNTSVILLE
	D.R. HORTON, INC. - JACKSONVILLE	  	D.R. HORTON, INC. - LOUISVILLE
	D.R. HORTON, INC. - MIDWEST	  	D.R. HORTON, INC. - MINNESOTA
	D.R. HORTON, INC. - NEW JERSEY	  	D.R. HORTON, INC. - PORTLAND
	D.R. HORTON, INC. - TORREY	  	D.R. HORTON BAY, INC.
	D.R. HORTON CA2, INC.	  	D.R. HORTON CA3, INC.
	D.R. HORTON CRUCES CONSTRUCTION, INC.	  	D.R. HORTON LA NORTH, INC.
	D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.	  	D.R. HORTON MATERIALS, INC.
	D.R. HORTON VEN, INC.	  	DRH CONSTRUCTION, INC.
	DRH REGREM XIV, INC.	  	DRH REGREM XV, INC.
	DRH REGREM XVI, INC.	  	DRH REGREM XVII, INC.
	DRH REGREM XVIII, INC.	  	DRH REGREM XIX, INC.
	DRH REGREM XX, INC.	  	DRH REGREM XXI, INC.
	DRH REGREM XXII, INC.	  	DRH REGREM XXIII, INC.
	DRH REGREM XXIV, INC.	  	DRH REGREM XXV, INC.
	DRH SOUTHWEST CONSTRUCTION, INC.	  	DRH TUCSON CONSTRUCTION, INC.
	KDB HOMES, INC.	  	MEADOWS I, LTD.
	MEADOWS II, LTD.	  	MEADOWS VIII, LTD.
	MEADOWS IX, INC.	  	MEADOWS X, INC.
	MELODY HOMES, INC.	  	SCHULER HOMES OF ARIZONA LLC
	SCHULER HOMES OF CALIFORNIA, INC.	  	SCHULER HOMES OF OREGON, INC.
	SCHULER HOMES OF WASHINGTON, INC.	  	SHA CONSTRUCTION LLC
	SHLR OF CALIFORNIA, INC.	  	SHLR OF NEVADA, INC.
	SHLR OF WASHINGTON, INC.	  	SRHI LLC
	SSHI LLC	  	VERTICAL CONSTRUCTION CORPORATION
	WESTERN PACIFIC HOUSING, INC.	  	WESTERN PACIFIC HOUSING MANAGEMENT, INC.

  

			
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and Chief Financial Officer

  
 -16- 

 
							
	CONTINENTAL HOMES OF TEXAS, L.P.
		
	By:	 	CHTEX of Texas, Inc.,
		 	as General Partner
				
		 	    	 	By:	 	          

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer
	
	D.R. HORTON - EMERALD, LTD.
	D.R. HORTON - TEXAS, LTD.
	D. R. HORTON MANAGEMENT COMPANY, LTD.
	DRH REGREM VII, LP
	DRH REGREM XII, LP 
		
	By:	 	Meadows I, Ltd.,
		 	as General Partner
				
		 		 	By:	 	  

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer
	
	SGS COMMUNITIES AT GRANDE QUAY, L.L.C.
		
	By:	 	Meadows IX, Inc.,
		 	as Member
				
		 		 	By:	 	  

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer
				
	and	 		 		 	
		
	By:	 	Meadows X, Inc.,
		 	as Member
				
		 		 	By:	 	  

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer

  
 -17- 

 
									
		 	DRH CAMBRIDGE HOMES, LLC
			
	    	 	By:	 	D.R. Horton, Inc. -Chicago,
		 		 	as Sole Member
					
		 		 		 	By:	 	          

		 		 		 		 	Bill W. Wheat
		 	    	 		 		 	Executive Vice President and Chief Financial Officer
	
	HPH HOMEBUILDERS 2000 L.P.
	WESTERN PACIFIC HOUSING-ANTIGUA, LLC
	WESTERN PACIFIC HOUSING-BROADWAY, LLC
	WESTERN PACIFIC HOUSING-CANYON PARK, LLC
	WESTERN PACIFIC HOUSING-CARRILLO, LLC
	WESTERN PACIFIC HOUSING-COMMUNICATIONS HILL, LLC
	WESTERN PACIFIC HOUSING-COPPER CANYON, LLC
	WESTERN PACIFIC HOUSING-CREEKSIDE, LLC
	WESTERN PACIFIC HOUSING-LOMAS VERDES, LLC
	WESTERN PACIFIC HOUSING-MCGONIGLE CANYON, LLC
	WESTERN PACIFIC HOUSING-MOUNTAINGATE, L.P.
	WESTERN PACIFIC HOUSING-NORCO ESTATES, LLC
	WESTERN PACIFIC HOUSING-PACIFIC PARK II, LLC
	WESTERN PACIFIC HOUSING-PARK AVENUE EAST, LLC
	WESTERN PACIFIC HOUSING-PARK AVENUE WEST, LLC
	WESTERN PACIFIC HOUSING-PLAYA VISTA, LLC
	WESTERN PACIFIC HOUSING-RIVER RIDGE, LLC
	WESTERN PACIFIC HOUSING-TERRA BAY DUETS, LLC
	WESTERN PACIFIC HOUSING-TORREY MEADOWS, LLC
	WESTERN PACIFIC HOUSING-TORREY VILLAGE CENTER, LLC
	WESTERN PACIFIC HOUSING-WINDEMERE, LLC
	WPH-CAMINO RUIZ, LLC
			
		 	By:	 	Western Pacific Housing Management, Inc.,
		 		 	as Manager Member or General Partner
					
		 		 		 	By:	 	  

		 		 		 		 	Bill W. Wheat
		 		 		 		 	Executive Vice President and Chief Financial Officer

  
 -18- 

 
							
	D.R. HORTON - SCHULER HOMES, LLC
		
	By:	 	Vertical Construction Corporation,
		 	as Manager
				
		 	    	 	By:	 	          

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer
	
	LEXINGTON HOMES - DRH, LLC
	PACIFIC RIDGE - DRH, LLC
		
	By:	 	SHLR of Washington, Inc.,
		 	as Sole Member
				
		 		 	By:	 	  

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer
	
	D.R. HORTON - CROWN, LLC 
	D.R. HORTON - GEORGIA, LLC 
	D.R. HORTON - HIGHLAND, LLC
	D.R. HORTON - IOWA, LLC
	D.R. HORTON - REGENT, LLC 
	D.R. HORTON - TERRAMOR, LLC
	D.R. HORTON - WPH, LLC 
	D.R. HORTON SERENITY CONSTRUCTION, LLC 
	DRH REGREM XLII, LLC
	DRH REGREM XLIII, LLC
	DRH REGREM XLIV, LLC
	DRH REGREM XLV, LLC
	DRH REGREM XLVI, LLC
	DRH REGREM XLVII, LLC
	DRH REGREM XLVIII, LLC
	DRH REGREM XLIX, LLC
	DRH REGREM L, LLC
	DRH REGREM LI, LLC
	DRH REGREM LII, LLC
	DRH REGREM LIII, LLC
	DRH REGREM LIV, LLC
	DRH REGREM LV, LLC
		
	By:	 	D.R. Horton, Inc.,
		 	as Sole Member
				
		 		 	By:	 	  

		 		 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer

  
 -19- 

 
							
	D.R. HORTON CA4, LLC
		
	By:	 	Western Pacific Housing, Inc.,
		 	as Sole Member
				
		 		 	By:	 	          

		 	    	 		 	Bill W. Wheat
		 		 		 	Executive Vice President and Chief Financial Officer
	
	D.R. HORTON - CHAUSTIN, LLC
		
	By:	 	Continental Homes of Texas, L.P.,
		 	as Sole Member
			
		 	By:	 	CHTEX of Texas, Inc.,
		 		 	as General Partner

 
									
					
		 		 		 	By:	 	          

		 		 		 		 	Bill W. Wheat
		 		 		 		 	Executive Vice President and Chief Financial Officer
	
	D.R. HORTON - INDIANA, LLC
		
	By:	 	D.R. Horton, Inc. - Midwest,
	its Member
					
		 	    	 	    	 	By:	 	          

		 		 		 		 	Bill W. Wheat
	    	 		 		 		 	Executive Vice President and Chief Financial Officer
	
	D.R. HORTON - COLORADO, LLC
		
	By:	 	Melody Homes, Inc.,
	its Member
					
		 		 		 	By:	 	              

		 		 		 		 	Bill W. Wheat
		 		 		 		 	Executive Vice President and Chief Financial Officer

  
 S-1 

 
	
	    DRH - HWY 114, LLC
	    D.R. HORTON - PERMIAN, LLC

  

			
	By:	 	D.R. Horton - Texas, Ltd.,
	its Member
		
		 	By: Meadows I, Ltd.,
		 	its General Partner

  

					
	            	 	By:	 	  

		 		 	Bill W. Wheat
		 		 	Executive Vice President and Chief Financial Officer

  

					
	    WALKER DRIVE, LLC
	
	By: D.R. Horton BAY, Inc., its Member
			
	            	 	By:	 	  

		 		 	Bill W. Wheat
		 		 	Executive Vice President and Chief Financial Officer

  
 S-1 

			
	BRANCH BANKING AND TRUST COMPANY, as Trustee
		
	By:	 	  

		 	Name:
		 	Title:

  
 S-1 

 EXHIBIT A 

[FORM OF FACE OF SECURITY] 

[Global Security Legend] 

THIS GLOBAL SECURITY 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
SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06 OF THE BASE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY 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 SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY 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.: 23331A BM0
		  	ISIN No.: US23331ABM09

 2.500% SENIOR NOTES DUE 2024 

D.R. HORTON, INC. 
 a
Delaware corporation 
 promises to pay to [             ] or registered assigns 

the principal sum of $[             ]
(             ) Dollars on October 15, 2024. 
 Interest Payment Dates: April 15 and
October 15, commencing April 15, 2020 
 Record Dates: April 1 and October 1 

Dated: 
  

			
	D.R. HORTON, INC.
		
	By:	 	  

		 	Title:

 Authenticated: 
 Branch
Banking and Trust Company, 
 as Trustee, certifies that this is one of the Securities 

referred to in the within mentioned Indenture. 
  

			
	By:	 	  

		 	Authorized Signatory

  
 A-2 

 [FORM OF REVERSE SIDE OF SECURITY] 

D.R. HORTON, INC. 

2.500% SENIOR NOTES DUE 2024 

D.R. HORTON, INC., a Delaware corporation (together with its successors and assigns, the “Company”), issued this Security
under an Indenture dated as of October 10, 2019 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”) by and between the Company and Branch Banking and Trust Company, as the
trustee (the “Trustee”), as supplemented by the Supplemental Indenture dated as of October 10, 2019 (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), by
and among the Company, the Guarantors party thereto and 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 Securities are, and are to be, authorized and delivered. All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them therein. 

 

	1.	 Interest. 

The Company promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay interest
semiannually on April 15 and October 15 of each year (each, an “Interest Payment Date”), commencing April 15, 2020, 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 October 10, 2019, provided that, if there is no existing default in the payment of interest, and if this Security is
authenticated between a record date referred to on the face hereof and the next succeeding interest payment date, interest shall accrue from such interest payment date. Interest will be computed on the basis of a
360-day year of twelve 30-day months. 
  

	2.	 Method of Payment. 

The Company will pay interest on the Securities (except defaulted interest, if any, which will be paid on such special payment date to Holders
of record on such special record date as may be fixed by the Company) to the persons who are registered Holders of Securities at the close of business on April 1 or October 1, as the case may be, immediately preceding the applicable
interest payment date. Holders must surrender Securities 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. 
  

	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 redeem the Securities at any time or from time to time, in whole or in part. 

  
 A-3 

 The redemption price for Securities redeemed prior to September 15, 2024 (the
“Par Call Date”) will be equal to the greater of the following amounts: (i) 100% of their principal amount; and (ii) the present value of the Remaining Scheduled Payments on the Securities being redeemed that would be due if
the Securities matured on the Par Call Date, discounted to the redemption date, on a semiannual basis, at the Treasury Rate plus 20 basis points (0.20%), plus, in each case, accrued and unpaid interest on such Securities to the redemption date. 

The redemption price for Securities redeemed on or after the Par Call Date will be equal to 100% of the principal amount of the Securities
being redeemed, plus accrued and unpaid interest on such Securities 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 will be mailed at least 15 days but not more than 60 days before the redemption date to each Holder of Securities to be
redeemed at its registered address. Securities in denominations larger than $2,000 may be redeemed in part. On and after the redemption date interest ceases to accrue on Securities or portions of them called for redemption, provided that if
the Company shall default in the payment of such Securities at the redemption price together with accrued interest, interest shall continue to accrue at the rate borne by the Securities. 

 

	5.	 Denominations, Transfer, Exchange. 

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

	6.	 Persons Deemed Owners. 

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

 

	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. 

Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the outstanding Securities of each Series affected by the amendment and any past default or compliance with any provision relating to any Series of the Securities may be waived in a particular instance with the
consent of the Holders of a majority in principal amount of the outstanding Securities of such Series. Without the consent of any Securityholder, the Company and the Trustee may amend or supplement the Indenture or the Securities in certain respects
as specified in the Indenture. 

  
 A-4 

	9.	 Successor. 

When a successor assumes all the obligations of its predecessor under a Series of the Securities 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 the Trustee, including owning or pledging the Securities. 

 

	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
Securities or the Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation. Each Holder by accepting a Security waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities. 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 Security shall not be valid until an authorized signatory of the Trustee signs the certificate of authentication on this Security. 

 

	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). 
  

	15.	 GOVERNING LAW. 

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

  
 A-5 

	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 Securities and has directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a convenience to Holders. No representation is made by the Company or the Trustee as to the accuracy of such numbers
either as printed on the Securities 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: D.R. Horton, Inc., 1341 Horton Circle, Arlington, Texas 76011, Attention: Chief Financial Officer. 
  

	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 Securities to purchase all or any part of such Holder’s Securities 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 Securities 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. 

  
 A-6 

 ASSIGNMENT FORM 

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

I or we assign and transfer this Security to 
  

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

 
  

 
  

 
  

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

agent to transfer this Security on the books of the 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 Security) 

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. 

  
 A-7 

 EXHIBIT B 

[FORM OF NOTATION ON SECURITY 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 this Security, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the overdue principal and interest, if any, on this Security, 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 Nine of the Base Indenture and (ii) in case of any extension of time of payment or renewal of this Security 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 Security by accepting a Security waives and
releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees. 
 Each Holder of
this Security by accepting this Security 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 Securities upon which the
Guarantee is noted shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized officers. 
  

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

  
 B-1Exhibit

Exhibit 10.1

Transition Services, Separation and Release Agreement 

This Transition Services, Separation and Release Agreement (“Agreement”) is entered into by and between Fox Factory Holding Company, a Delaware Corporation (“Company”) and Zvi Glasman, an individual resident of California (“Executive”) as of October 2 2019 (“Effective Date“).  The Company and Executive shall collectively be referred to as the “Parties.”
WHEREAS, Executive has been employed by the Company as Chief Financial Officer (“CFO”) pursuant to the terms and conditions of the employment agreement by and between the Company and Executive dated July 22, 2013 (“Employment Agreement”); 
WHEREAS, Executive currently holds the following Company equity (“Company Equity”): 
	
							
	Date of Grant
	Form of Equity
	Number of Shares/Units
	Vesting Start Date
	Vested
	Unvested
	Final Vesting  Date

	2.27.17
	RSU
	55,600
	2.27.18
	37,067
	18,533
	2.27.20

WHEREAS, Executive has tendered his resignation from the position of CFO effective as of November 1, 2019;
WHEREAS the Company and Executive desire that Executive provide additional transition services in a non-executive capacity for the period between November 1, 2019 and February 28, 2020 (“Transition Period”) as set forth herein; and
WHEREAS, this Agreement sets forth the terms and conditions regarding Executive’s employment with the Company during the Transition Period, and the terms and conditions regarding the termination of the services of Executive upon termination of the Transition Period. 
NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Executive and the Company agree as follows:
1.CFO Employment Period. Executive shall continue to be employed as the Company’s CFO reporting to the Company’s Chief Executive Officer (“CEO”) subject to the terms of the Employment Agreement through 11:59 pm on November 1, 2019. As of 12:00 am on November 2, 2019, Executive shall have resigned his position as an officer of the Company and shall no longer serve as the Company’s CFO (the “Transition Date”).   
2.Transition Period.  As of the Transition Date, Executive shall remain a full-time employee of the Company in a non-executive role and shall provide transition and support services as mutually agreed upon between the CEO and Executive prior to the termination of the Transition Period. 
1.Exclusive Services. During the term of this Agreement Executive shall not, directly or indirectly, whether as a partner, employee, creditor, shareholder, independent contractor or otherwise, promote, participate or engage in any activity or other business which competes with the Company’s current or known future business operations.

2.Policies, Rules and Regulations.  At all times during the Transition Period, Executive agrees to continue to observe and comply with the Company’s written rules and regulations, and Executive shall remain subject to and shall comply with the Company’s Employee Code of Conduct and all Company policies, including but not limited to the Company’s policy prohibiting discrimination and sexual harassment, the Company’s Insider Trading Policy, the Company’s Incentive Compensation Recoupment Policy and the Material Obligations set forth in Section 11 herein.   
3.Compensation and Benefits During the Transition Period. 
1.Base Pay. The Company shall continue to pay Executive his current base annual salary payable in accordance with Company’s standard payroll schedule subject to applicable taxes and withholding.  Executive shall not be entitled to any increase in his annual compensation during the Transition Period.
2.Performance Bonus.  Executive shall be eligible for the 2019 Annual Performance Bonus if he remains employed through January 3, 2020. The 2019 Performance Bonus shall be calculated in accordance with Executive’s Employment Agreement and be paid according to the Company’s standard payroll procedures, subject to applicable tax and withholding. Executive shall not be eligible for or entitled to the 2020 annual Performance Bonus or any pro rata amount thereof.
3.Equity. Executive shall continue to vest in his unvested shares of Company Equity pursuant to the terms of the applicable equity agreements and the Company’s 2013 Omnibus Equity Plan 
4.(“Equity Plan”) through the Separation Date.  Any unvested shares of Company Equity as of the Separation Date shall be forfeited in accordance with the applicable equity agreements and the Equity Plan.  
5.Other Benefits. Executive shall be entitled to continue to participate in the Company’s current benefit plans during the Transition Period, subject to the eligibility and enrollment requirements of such plans.   
4.Termination of the Transition Period.  
1.The Transition Period shall terminate upon earliest to occur of the following: “Separation Date”):  
(a)11: 59 pm on February 28, 2020
(b)Termination for Cause (as defined below)
(c)Executive’s Death 
(d)Executive’s voluntary resignation prior to February 28, 2020
2.Definitions:
(a) “Cause” means:
(i)Executive’s material breach of any provision of this Agreement that if curable remains uncured for 10 calendar days following written notice of such breach; 

(ii)Any act of personal dishonesty taken by Executive in connection with Executive’s responsibilities as an employee and intended to result in material personal enrichment of Executive;
(iii)Executive, has been grossly negligent or engaged in willful or gross misconduct in the performance of Executive's duties;
(iv)Executive has committed, or has been convicted of fraud, acts of moral turpitude, embezzlement, theft, or dishonesty or other criminal conduct (other than minor motor vehicle offenses that do not or would not constitute a felony); or
(v)Executive habitually misuses alcohol or any non-prescribed drug or intoxicant and such misuse materially interferes with the performance of Executive duties to the Company.
(vi)“Disability” means Executive’s inability prior to November 1, 2019, to perform the essential functions of his position, with or without reasonable accommodation.
5.Payments upon Termination of the Transition Period.  
1.Accrued Obligations. As of the Separation Date the Company shall pay Executive previously accrued but unpaid or unused compensation, including but not limited to, Base Salary earned through the Separation Date, and accrued but unpaid PTO less applicable taxes and withholding (the “Accrued Obligations”).  
2.Termination for Cause, Death or Disability.  
(a)In the event the Transition Period is terminated for Cause, Executive shall be entitled to the Accrued Obligations through the termination date Event and no other amounts set forth in this Section 5.  
(b)In the event the Transition Period is terminated due to Executive’s death (other than by suicide) or Disability, Executive (or Executive’s estate in the event of death) shall be entitled to the Accrued Obligations and Executive’s 2019 annual Performance Bonus payable in accordance with the Company’s normal payroll procedures and subject to applicable tax and withholding. 
3.Termination between January 3, 2019 and February 28, 2020. In the event the Transition Period is terminated between December 31, 2019 and February 28, 2020, Executive shall receive the Accrued Obligations, and the 2019 annual Performance Bonus to which he is entitled, paid no later than March 15, 2020, in accordance with the Company’s standard payroll procedures subject to applicable withholding taxes and other deductions authorized by Executive. 
6.Release Consideration. 
1.Agreement Release. In exchange for his continued employment through the Transition Period pursuant to the terms set forth herein, Executive agrees to: (a) execute this Agreement providing his release of claims against the Released Parties, as defined below (“Agreement Release”); (b) sign and return this Agreement (in care of, and addressed to the attention of Dale A. Silvia as set forth in Section 15 of this Agreement) within twenty-one (21) calendar days from the date the Agreement is presented to Executive; (c) not revoke the Agreement Release as provided in Section 12.3 below; and (d) otherwise comply with the Material Obligations set forth in Section 11 of this Agreement.  

2.Final Release Consideration. Executive further agrees to execute a second release as of the Separation Date (“Final Release”) in consideration for payment of One-Thousand Dollars ($1,000) (“Final Release Payment”). To be eligible to receive the Final Release Payment, Executive must: (a) sign and return the Final Release (in care of, and addressed to the attention of Dale A. Silvia as set forth in Section 15 of this Agreement) within twenty-one (21) calendar days from the date the Final Release is presented to Executive, (b) not revoke the Final Release under the terms of the Final Release, and (c) otherwise comply with the Material Obligations set forth in Section 11 of this Agreement. 
Executive acknowledges that the consideration for the Agreement Release and the Final Release are sufficient consideration provided to him in return for his execution of this Agreement and the Final Release and that he would not otherwise be entitled to such consideration.  
7.COBRA. Except in the event Executive’s employment is terminated for Cause, upon the Separation Date, Executive’s coverage under the Company’s group health plan shall terminate in accordance with the terms of such Plan.  To the extent required under the Consolidated Omnibus Budget Reconciliation Act, as amended (“COBRA”) or, if applicable, state insurance laws, and permitted under the Company's current group health insurance policies, Executive shall be eligible to continue his group health insurance benefits. Executive has been, or will be, provided with a notice describing his rights and obligations under COBRA. If Executive and/or Executive’s eligible family members elect to continue group health insurance, and upon notification to the Company of such election, the Company shall pay for Executive’s continuation of coverage through the earliest of December 31, 2020 or the date Executive acquires any other health coverage.
8.No Other Compensation or Benefits. Executive acknowledges that, except as expressly provided in this Agreement, Executive has not earned, is not owed, and will not receive from the Company any additional compensation (including base salary, bonus, incentive compensation, variable compensation/commission, or profit sharing), severance, or benefits prior to, on or after the Separation Date, with the exception of any vested benefits Executive may have under the express terms of a written ERISA-qualified benefit plan (e.g., the 401k Plan), and any expenses still owed to Executive.  Executive agrees that, within five (5) business days following the Separation Date, Executive will submit his final documented expense reimbursement statement reflecting all business expenses incurred through the Separation Date, if any, for which Executive seeks reimbursement. The Company will reimburse Executive for these expenses pursuant to its regular business practice, but in no event later than twenty-two days following the Separation Date.  
9.Acknowledgements.  Executive acknowledges: (i) receipt of all compensation and benefits due through the date of this Agreement as a result of services performed for the Company; (ii) Executive has reported to the Company any and all work-related injuries incurred by Executive during employment; (iii) the Company properly provided Executive with any leave of absence because of Executive’s or a family member’s health condition and Executive has not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave; (iv) Executive has had the opportunity to provide the Company with written notice of any and all concerns regarding suspected ethical and compliance issues or violations on the part of the Company or any other Released Parties (as defined below); and (v) Executive has not filed any claim in a civil action or a complaint in an administrative action against the Company, any other Released Parties; or any employee, representative or agent of the Company.

10.Return of Company Property.  Upon the Separation Date Executive shall return to the Company any and all Company documents (and all copies thereof) and other Company property in his possession or control, including, but not limited to, Company files, notes, drawings, memoranda, records, business plans and forecasts, reports, proposals, personnel information, financial information, specifications, computer-recorded information, tangible property (laptop computer, cell phone, PDA, etc.), entry cards, identification badges and keys; and, any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part). Executive agrees that he will conduct a diligent search to locate any such documents, property and information.  If Executive has used any non-Company computer, hard drive, portable flash drive, server, cellular telephone, iPhone, iPod, Blackberry, PDA, or e-mail system to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, he agrees to immediately provide the Company with a computer-useable copy of such information and then permanently delete and expunge such Company confidential or proprietary information from those systems.  Executive further agrees to provide the Company access to such systems as requested to verify that the necessary copying and/or deletion is completed.  By executing and returning this Agreement, Executive certifies that he will comply with all such obligations to return all Company documents and information regardless of where he has maintained such Company property.  
11.Material Obligations. 
1.Continuing Obligation to Protect Company’s Proprietary Information. Executive acknowledges that by reason of his position with Company, he was, or may have been, given access to confidential or proprietary information or materials respecting Company’s business affairs, or the business affairs of the Company’s customers, parent, subsidiaries, or affiliates. Such confidential information includes, but is not limited to, the Company’s business strategies, financial results, human resource and personnel documentation, contractual agreements between Company and other individuals or entities, strategies and ideas, compilation of information and records which are owned by Company and which are regularly used in operation of its business, procedures, written descriptions, processes, research projects, protocols or other tangible items and documentation, including computer programs, reports and marketing information. Executive represents that he has held all such information in confidence and will continue to do so.  Executive further acknowledges and agrees to comply with his continuing obligations under the Employment Agreement to refrain from disclosing or using, for himself or another, any of the Company’s proprietary trade secret information. 
2.Non-Interference; Non-Solicitation.  To the fullest extent permitted by law, Executive agrees not to unlawfully interfere with any of the Company's contractual obligations or prospective business opportunities with others.  Furthermore, Executive agrees not to use or disclose any of the Company's confidential proprietary or trade secret information. Additionally, Executive agrees, for a period of two (2) years from the Effective Date, not to contact, with the intent to solicit or solicit the business of any client, customer, creditor, or licensee or any current employee of the Company.  Executive acknowledges that this Section 11 is a reasonable and necessary measure designed to protect the confidential proprietary and trade secret information of the Company, as well as its employment and business relationships, and does not prejudice Executive in his ability to work in his trade or profession.

12.General Release of Company. In exchange for the Release Consideration provided to Executive pursuant to Section 6 above, to which Executive would not otherwise be entitled, Executive hereby generally and completely releases (“General Release”) the Company and its current and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, investors and assigns (collectively “Released Parties”) of and from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions arising prior to or during the period of Executive’s employment with the Company through the Separation Date (collectively “Released Claims”).  
1.Scope of Release. The Released Claims include, but are not limited to: (a) all claims arising out of or in any way related to Executive’s employment with the Company, or the separation thereof; (b) all claims related to Executive’s compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of contract (oral or written), wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including but not limited to claims for fraud, misrepresentation, defamation, negligence, invasion of privacy, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, including but not limited to claims for discrimination, harassment, retaliation, failure to accommodate, attorneys’ fees, or other claims arising under any federal or state statutes or local ordinances, including but not limited to the Civil Rights Act of 1964 (as amended), the Civil Rights Act of 1991,  the Americans with Disabilities Act of 1990 (as amended), the Age Discrimination in Employment Act of 1967 (ADEA”), the Family Medical Leave Act, the California Labor Code, the California Government Code, the California Business & Professions Code, and the California Fair Employment & Housing Act.
2.Waiver of Unknown Claims.  EXECUTIVE UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  In giving the release set forth in this Agreement, which includes claims which may be unknown to Executive at present, Executive acknowledges that he has read and understands Section 1542 of the California Civil Code, which reads as follows: 
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.  
Executive hereby expressly waives and relinquishes all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to Executive’s release of claims herein, including but not limited to the release of unknown and unsuspected claims.

3.ADEA Waiver. Executive acknowledges that he is knowingly and voluntarily waiving and releasing any rights he may have under the Age Discrimination in Employment Act, or ADEA (“ADEA Waiver”), and that the consideration given for this ADEA Waiver is in addition to anything of value to which Executive is already entitled.  Executive further acknowledges that Executive has been advised, as required by the ADEA, that:  (a) his ADEA Waiver does not apply to any rights or claims that may arise after the date that he signs this Agreement; (b) Executive has been advised of his right to consult with an attorney prior to signing this Agreement; (c) Executive has twenty-one (21) days to consider this Agreement (although Executive may choose to waive that period and voluntarily sign this Agreement earlier), and Executive acknowledges that any modification, material or otherwise, made to this Agreement does not restart or extend in any manner the 21-day consideration period; (d) Executive has seven (7) days following the date Executive signs this Agreement to revoke the ADEA Waiver (by providing written notice of revocation to the Company in accordance with Section 16 below by 5:00 p.m. on the seventh (7th) day following the date on which Executive signs this Agreement); and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth (8th) day after the date that this Agreement is executed, provided that Executive does not revoke it.
4.Excluded Claims. Notwithstanding the foregoing, the following are not included in the Released Claims (“Excluded Claims”): (a) any rights or claims for defense or indemnification Executive may have pursuant to any written indemnification agreement with the Company to which Executive is a party, under the Company’s certificate of incorporation or bylaws, as amended to date, or under applicable law or any applicable directors’ and officers’ liability insurance policy; (b) any rights or claims Executive may have as a stockholder of the Company; and (c) any rights or claims under this Agreement.
13.No Interference with Rights. Nothing in this Agreement is intended to waive claims (i) for unemployment or workers’ compensation benefits, (ii) for vested rights under ERISA-covered employee benefit plans as applicable on the Separation Date, (iii) that may arise after Executive signs this Agreement, (iv) for reimbursement of expenses under the Company’s expense reimbursement policies, or (v) which cannot be released by private agreement.  In addition, nothing in this Agreement including but not limited to the acknowledgments, release of claims, proprietary information, confidentiality, and cooperation provisions, (i) waives Executive’s right to testify in an administrative, legislative, or judicial proceeding concerning alleged criminal conduct or alleged sexual harassment on the part of the Company, or on the part of the agents or employees of the Company, when Executive has been required or requested to attend such a proceeding pursuant to a court order, subpoena, or written request from an administrative agency or the legislature, (ii) limits or affects Executive’s right to challenge the validity of this Agreement under the ADEA or the OWBPA, (iii) prevents Executive from communicating with, filing a charge or complaint with or from participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, the Securities and Exchange Commission, or any other any federal, state or local agency charged with the enforcement of any laws, including providing documents or any other information, or (iv) limits Executive from exercising rights under Section 7 of the NLRA to engage in protected, concerted activity with other employees, although by signing this Agreement Executive waiving rights to individual relief (including backpay, frontpay, reinstatement or other legal or equitable relief) in any charge, complaint, or lawsuit or other proceeding brought by Executive or on Executive’s behalf by any third party, except for any right Executive may have to receive a payment or award from a government agency (and not the Company) for information provided to the government agency or otherwise where prohibited.
14.Good Faith Cooperation and Assistance. Executive agrees to provide good faith cooperation and assistance as reasonably requested by the Board to ensure a smooth transition to the successor CFO of the Company, including, but not limited to, providing requested information relevant to the business of the Company in a timely manner and Executive’s availability for consultation upon reasonable request. 

15.Notices.  Any notice, consent, waiver, and other communication under this Agreement shall be in writing, and any written notice or other document shall be deemed to have been duly given and received (a) if mailed by registered or certified mail, three business days after deposit in the United States mail, postage prepaid, return receipt requested; (b) upon confirmation of a receipt of a facsimile transmission; (c) if hand delivered, upon delivery against receipt or upon refusal to accept the notice; (d) if delivered by a recognized overnight courier, one business day after deposit with such courier, postage prepaid, in each case, addressed to such Party at the address set forth below or at the most recent address specified through written notice under this provision; or (e) if delivered via email, upon confirmation of receipt.  Failure to conform to the requirement that mailing be done by registered mail or certified mail shall not defeat the effectiveness of notice actually received by the addressee. Unless otherwise provided for in this Agreement, notices should be sent to the following addresses:

If to the Executive:    Zvi Glasman
Address on File.
        
To the Company:    Fox Factory Holding Corp.
6634 Hwy. 53
Braselton, GA 30517
Attn: Chief Human Resources Officer
Facsimile: 706.243.4622

16.Arbitration. THE PARTIES HEREBY KNOWINGLY AND VOLUNTARILY WAIVE ANY RIGHTS THAT THEY MAY HAVE TO A JURY TRIAL FOR ANY SUCH DISPUTES, CONTROVERSIES OR CLAIMS.  In the event of any dispute arising under or including any provisions of this Agreement, Executive and the Company agree to submit the dispute to binding arbitration before a mutually agreed upon arbitrator in accordance with the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1, et seq.  Disputes between the Parties that may not be subject to pre-dispute arbitration agreement as provided by an Act of Congress are excluded from the coverage of this Agreement.  The arbitration shall be conducted in [INSERT CITY OR COUNTY], California by JAMS, Inc. (“JAMS”) or its successors, under JAMS’ then applicable rules.  A neutral arbitrator shall be selected by both parties, and shall: (a) have the authority to compel adequate discovery for the resolution of the dispute; (b) have the authority to award monetary damages and any and all other remedies that would be available in court, governed by the substantive laws of the State of California; and (c) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. The parties shall be entitled to all rights and remedies that either would be entitled to pursue in a court of law; provided, however, that either party may seek to obtain injunctive relief in court to prevent irreparable harm pending the conclusion of arbitration.  Each party will pay the fees for their own counsel, subject to any remedies to which that party may later be entitled under this Agreement or applicable law.  However, in all cases where required by law, the Company will pay the Arbitrator's and arbitration fees. If under applicable law the Company is not required to pay all the Arbitrator's and/or arbitration fees, such fee(s) will be apportioned between the parties in accordance with said applicable law, and any disputes in that regard will be resolved by the Arbitrator.  The decision of the Arbitrator shall be final and binding on the parties. Nothing in this Section will prohibit the parties in the future from mutually agreeing to alternative methods of dispute resolution such as mutually agreed non-binding mediation before a mutually agreed mediator or other methods of dispute resolution prior to initiating arbitration under this Section; provided however that no party shall be deemed to be obligated to agree to such alternative dispute resolution mechanisms in lieu of the provisions of this Section 16.  

17.Controlling Law. This Agreement shall in all respects be interpreted, enforced, and governed under the laws of the State of California. The Company and Executive agree that the language in this Agreement shall, in all cases, be construed as a whole, according to its fair meaning, and not strictly for, or against, either of the Parties.
18.Severability. Should any provision of this Agreement be declared or determined to be illegal or invalid by any government agency, arbitrator, or court of competent jurisdiction, the validity of the remaining parts, terms or provisions of this Agreement shall not be affected and such provisions shall remain in full force and effect.
19.Entire Agreement. This Agreement, the applicable Company equity documents and the Final Release shall constitute the entire agreement and understanding between the Executive and the Company with respect to the subject matter hereof, and fully supersedes all prior and contemporaneous negotiations, understandings, representations, writings, discussions and/or agreements, whether oral or written, pertaining to or concerning the subject matter of this Agreement, including but not limited to the Employment Agreement. No oral statements or other prior written materials, not specifically incorporated into this Agreement shall be of any force or effect, and no changes in or additions to this Agreement shall be recognized, unless incorporated into this Agreement by written amendment, such amendment to become effective on the date stipulated in it. Any amendment to this Agreement must be signed by Executive and the Company.  
20.Disclaimer of Reliance. Except for the specific representations expressly made by the Company in this Agreement, Executive specifically disclaims that Executive is relying upon or relied upon on any communications, promises, statements, inducements, or representation(s) that may have been made, oral or written, regarding the subject matter of this Agreement.  The Parties represent that they are relying solely and only on their own judgment in entering into this Agreement. 
21.No Admission of Liability.  Each of the Parties acknowledges that neither this Agreement, nor payment of any consideration pursuant to this Agreement, shall be taken or construed to be an admission or concession of any kind with respect to any alleged liabilities, all of which are expressly denied by the Released Parties.
22.Waiver of California Civil Code Section 1654.  Each of the Parties has had the opportunity to obtain advice of legal counsel prior to the execution of this Agreement, and understands fully the contents hereof.  Therefore, this Agreement shall not be construed to have been drafted by any one Party and the Parties expressly waive the provisions of California Civil Code §1654 to the extent that it requires an ambiguity to be interpreted against the drafting party.
23.Attorney’s Fees.  Each Party shall bear its/his own attorney’s fees in the preparation and review of this Agreement. Should suit or action be instituted to enforce any provision of this Agreement, the prevailing party shall be entitled to recover its/his costs and reasonable attorney’s fees.

24.No Waiver. This Agreement may not be waived, modified, amended, supplemented, canceled or discharged, except by written agreement of the Executive and the Company. Failure to exercise and/or delay in exercising any right, power or privilege in this Agreement shall not operate as a waiver. No waiver of any breach of any provision shall be deemed to be a waiver or any preceding or succeeding breach of the same or any other provision, nor shall any waiver be implied from any course of dealing between Executive and the Company.
25.Captions. All Section captions are for reference only and shall not be considered in construing this Agreement.
26.Counterparts. This Agreement may be executed by the Parties in multiple counterparts, whether or not all signatories appear on these counterparts (including via electronic signatures, and exchange of PDF documents via email), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date(s) set forth herein below.

	
	
	COMPANY:

	FOX FACTORY HOLDING CORP.

	By: /s/ Dale A. Silvia

	Its: Chief Human Resources Officer

	 

	EXECUTIVE:

	/s/ Zvi Glasman

	Zvi Glasman

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