Document:

Property Management - Account Services Agreement

 Exhibit 10.48 
 LEGACY AT MARTIN’S POINT, VILLAGE OF LOMBARD, 
 ILLINOIS 

PROPERTY MANAGEMENT – 
 ACCOUNT SERVICES AGREEMENT 
 BETWEEN 

LEGACY PARTNERS RESIDENTIAL L.P. 
 AND 
 KBS LEGACY PARTNERS LOMBARD LLC 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 Recitals
	  		  	 	1	  
	 ARTICLE 1.        DEFINITIONS
	  	 	1	  
	 1.01.
	  	Definitions	  	 	1	  
	 ARTICLE 2.        APPOINTMENT AND SERVICES OF AGENT
	  	 	2	  
	 2.01.
	  	Term	  	 	2	  
	 ARTICLE 3.        COMPENSATION AND EXPENSES OF AGENT
	  	 	3	  
	 3.01.
	  	Fees	  	 	3	  
	 3.02.
	  	Expenses to be Borne by Agent	  	 	4	  
	 3.03.
	  	Noncustomary Services	  	 	5	  
	 3.04.
	  	Nonperformance	  	 	5	  
	 ARTICLE 4.        PERSONNEL AND BONDING
	  	 	5	  
	 4.01.
	  	Stability of Management Team	  	 	5	  
	 4.02.
	  	Fidelity Bond	  	 	5	  
	 4.03.
	  	Affiliates	  	 	6	  
	 ARTICLE 5.        COMPLIANCE WITH LAWS
	  	 	6	  
	 5.01.
	  	Compliance	  	 	6	  
	 5.02.
	  	Notice	  	 	6	  
	 ARTICLE 6.        FINANCIAL MATTERS
	  	 	6	  
	 6.01.
	  	Books and Records	  	 	6	  
	 6.02.
	  	Reports	  	 	6	  
	 6.03.
	  	Audit	  	 	7	  
	 6.04.
	  	Other Reports and Statements	  	 	7	  
	 6.05.
	  	Reserved	  	 	7	  
	 6.06.
	  	Final Accounting	  	 	7	  
	 6.07.
	  	Reserved	  	 	7	  
	 6.08.
	  	Certification	  	 	7	  
	 ARTICLE 7.        BANK ACCOUNTS
	  	 	7	  
	 7.01.
	  	Property Accounts	  	 	7	  
	 7.02.
	  	Expenses Paid By Owner	  	 	8	  
	 ARTICLE 8.        INSURANCE AND INDEMNITY
	  	 	8	  
	 8.01.
	  	INDEMNIFICATION	  	 	8	  
	 8.02.
	  	Agent’s Insurance Responsibility	  	 	10	  
	 8.03.
	  	Contract Documents; Indemnity Provisions	  	 	11	  
	 8.04.
	  	Ratings of Insurance Companies	  	 	11	  
	 8.05.
	  	Owner’s Insurance Responsibility	  	 	11	  
	 8.06.
	  	Reserved	  	 	11	  
	 ARTICLE 9.        RELATIONSHIP OF PARTIES and REPRESENTATIONS and
WARRANTIES
	  	 	11	  
	 9.01.
	  	Nature of Relationship	  	 	11	  
	 9.02.
	  	Communications Between Parties	  	 	11	  
	 9.03.
	  	Relationship of Owner and Agent with Respect to Leasing	  	 	12	  
	 9.04.
	  	No Sales Brokerage Agreement	  	 	12	  
	 9.05.
	  	Confidentiality	  	 	12	  

							
	 9.06.
	  	 Agent Not to Pledge Owner’s Credit
	  	 	12	  
	 9.07
	  	 Representations and Warranties
	  	 	12	  
	 ARTICLE 10.    TERMINATION
	  	 	13	  
	 10.01.
	  	     Termination by Owner Without Cause
	  	 	13	  
	 10.02.
	  	     Termination by Owner for Cause
	  	 	13	  
	 10.03.
	  	     Termination by Agent
	  	 	13	  
	 10.04.
	  	     Orderly Transition
	  	 	14	  
	 10.05.
	  	     Rights Which Survive Termination or Expiration
	  	 	14	  
	 ARTICLE 11.    MISCELLANEOUS
	  	 	14	  
	 11.01.
	  	     Governing Law
	  	 	14	  
	 11.02.
	  	     Table of Contents and Headings
	  	 	14	  
	 11.03.
	  	     Entire Agreement
	  	 	14	  
	 11.04.
	  	     Successors and Assigns
	  	 	14	  
	 11.05.
	  	     Waiver
	  	 	15	  
	 11.07.
	  	     Time
	  	 	15	  
	 11.08.
	  	     Attorneys’ Fees
	  	 	15	  
	 11.09.
	  	     Further Acts
	  	 	15	  
	 11.10.
	  	     No Advertising
	  	 	15	  
	 11.11.
	  	     Signs
	  	 	15	  
	 11.12.
	  	     Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages
	  	 	16	  
	 11.14.
	  	     Notices
	  	 	16	  
	 11.15.
	  	     Counterparts
	  	 	17	  

  
 EXHIBITS: 

 

			
	A -	  	 LEGAL DESCRIPTION

 PROPERTY MANAGEMENT - ACCOUNT SERVICES AGREEMENT 

This PROPERTY MANAGEMENT - ACCOUNT SERVICES AGREEMENT (this “Agreement”) is made as of May 31,
2012 (the “Effective Date”) between LEGACY PARTNERS RESIDENTIAL L.P., a Delaware limited partnership (“Agent”), and KBS LEGACY PARTNERS LOMBARD LLC, a Delaware limited liability company (“Owner”).

 RECITALS 
 A.            Owner is the record or beneficial owner of the Property (as defined below) and Agent is experienced in the management, operation
and accounting of residential apartment projects similar to the Property. 

B.            The parties desire to enter into this
Agreement and set forth the terms and conditions under which Agent will provide certain services with regard to account maintenance and bookkeeping services. 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, Owner and Agent agree as follows: 

AGREEMENT 

ARTICLE 1. DEFINITIONS. 
 1.01.       Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth below: 

“Affiliate” shall mean, when used with respect to any person (a) if such person is a corporation, any
officer or director thereof and any person which is directly, or indirectly, the beneficial owner of more than 10% of any class of equity security (as defined in the Securities Exchange Act of 1934) thereof, or if any such beneficial owner is a
partnership, any partner thereof, or if any such beneficial owner is a corporation, any person controlling, controlled by or under common control with such beneficial owner or of any officer or director of such beneficial owner or of any corporation
occupying any such control relationship, (b) if such person is a partnership, any partner thereof, and (c) any other person which directly or indirectly controls or is controlled by or is under common control with such person. For the
purpose of this definition, “control” (including the correlative meanings of the term “controlling,” “controlled by” and “under common control with”), with respect to any person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities or by contract or otherwise. The term “Affiliate” shall also mean, when
used with respect to any individual, the parents and grandparents of such individual, the parents and grandparents of any other individual who is an Affiliate of such individual by virtue of any one or more of the foregoing clauses (a),
(b) and (c) of this definition, any descendant (whether natural or adopted) of any such parents or grandparents and any spouse of any such descendant. 

  
 1 

 “Approved Capital Budget” and “Approved Operating
Budget” shall have the meanings set forth in the Property Management Agreement. 
 “Fiscal Year”
shall mean the twelve (12) months commencing January 1 and ending December 31. 
 “Gross
Monthly Collections” shall have the meaning set forth in the Property Management Agreement. 

“Property” shall mean that certain real property consisting of approximately
             acres and improvements constructed thereon consisting of 256 residential units (commonly known as Avalon at Lombard Apartments) and zero (-0-) square feet of retail
space located in Village of Lombard, Illinois as more particularly described on Exhibit A attached hereto. 

“Property Management Agreement” shall mean that certain Property Management Agreement dated as of even date
herewith between Owner and Property Manager for the provision of property management services with respect to the Property. 
 “Property Manager” shall mean RMK Management Corporation, an Illinois corporation. 
 “Records Office” shall mean Agent’s corporate office in Foster City, California. 

ARTICLE 2.    APPOINTMENT AND SERVICES OF AGENT. 

2.01.      Term. Owner hereby hires Agent to provide account maintenance and
bookkeeping services upon the terms and conditions herein stated, and Agent hereby accepts said engagement, for a term beginning on the date of this Agreement and ending at 12:00 midnight on the one-year anniversary of the beginning date, unless
sooner terminated by Owner or Agent as provided in Article 10 of this Agreement. At the expiration of said term, this Agreement, if not renewed in writing by Owner and Agent, shall then be deemed a month-to-month agreement cancelable by either
party on not less than thirty (30) days’ advance written notice, which notice may be given at any time during a month, provided that in any event the cancellation shall be effective at the end of the calendar month in which the thirty
(30) day notice period ends. 
 2.02.      Services of Agent. Agent
shall maintain the Accounts (as defined below) and provide bookkeeping services to facilitate the efficient operation of the Property in compliance with this Agreement. Without limiting the generality of the foregoing and subject at all times to
such procedures and directions that shall be set forth in this Agreement (as revised or amended from time to time), Agent shall do all of the following: 

(a)        Employees. Agent shall select, employ, pay,
supervise and discharge all employees and personnel necessary to provide the services required under this Agreement (subject to the limitations set forth in Section 4.01 hereof). All persons so employed by Agent shall be employees of Agent or
independent contractors retained by Agent, and not by 

  
 2 

 
Owner. All costs of gross salary and wages, payroll taxes, medical and dental insurance, worker’s compensation insurance, incentive leasing bonuses and other costs and employee benefit
expenses payable on account of such employees, shall be included in the Approved Operating Budget. Agent shall fully comply with all applicable laws and regulations having to do with workers’ compensation, social security, unemployment
insurance, hours of labor, wages, working conditions and other employer/employee-related subjects. 
 (b)        Records and Budgets. Agent shall keep or cause to be kept at the Records Office suitable books of control as provided in this Agreement. Agent
shall assist Owner in reviewing monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. 
 (c)        Operating Expenses. Unless otherwise directed by Owner, at the written request and direction of Property Manager, Agent shall process payment of
all operating and capital expenses in a manner commercially reasonable for the Property. 

(d)        Business Plan and Property Review Program.
Agent shall assist Owner in reviewing business plans for the Property submitted by Property Manager. In addition, Agent shall participate in Owner’s property review programs to the extent requested by Owner and applicable to the services
provided under this Agreement. Such review shall include asset, investment, financial and strategy profiles in form and substance satisfactory to Owner and such assistance as Owner may request in connection with appraisals of the Property. Agent
shall respond, within 10 days, to Owner’s management evaluation reports concerning actions to be taken by Agent to correct or modify its management standards for the operations or financial services provided for the Property. 

ARTICLE 3. COMPENSATION AND EXPENSES OF AGENT. 
 3.01.    Fees. 

(a)        Owner shall pay Agent, and Agent shall accept as full
compensation for the services to be rendered to Owner hereunder during the term hereof, a sum equivalent to one percent (1%) of Gross Monthly Collections (the “Services Fee”). Such compensation shall be payable monthly on or
before the 20th of the subsequent month. 

(b)        Except with respect to other services provided by
Affiliates of Agent in accordance with Section 3.01(c), which shall be reimbursed by Owner pursuant to Section 3.01(c), Agent shall pay from the Services Fee all costs associated with or relating to its own office overhead and management
personnel not located or employed at the Property, including without limitation, the salaries, wages and all other compensation, together with associated unemployment and social security taxes and contributions, as well as expenses specifically
stated in this Agreement to be borne by Agent. 

(c)        If included in the Approved Operating Budget or with
the prior approval and direction of Owner, Agent may obtain services and materials including, but not limited to, 

  
 3 

 
consulting, training, computer hardware and software, contract services and accounting and bookkeeping services through the organization, subsidiaries or Affiliates of Agent for the benefit of
the Property, provided the quality of service and the price thereof is competitive with comparable prices and services offered by third parties, and the costs therefore shall be reimbursed by Owner. All discounts, rebates and other savings realized
thereon by Agent are to be passed on to Owner, in full. 
 3.02.     Expenses to be Borne by
Agent.   Unless otherwise provided in the Approved Operating Budget or Section 4.01(b) below, expenses incurred in rendering all overall supervisory, management and recordkeeping and other services to be rendered by Agent in
connection with the operations of the Property shall be borne by Agent and not charged to Owner. Without limiting the generality of the foregoing provisions of this section, the following expenses and costs incurred by and/or on behalf of Agent
shall be at the sole cost and expense of Agent and shall not be reimbursed by Owner: 

(a)        All costs of gross salary and wages, payroll taxes,
insurance, workmen’s compensation and other costs of Agent’s corporate office and executive personnel (other than full time or part time personnel whose positions and salaries are specifically authorized in the Approved Operating Budget);

 (b)        All costs incurred as a result of
Agent’s breach of this Agreement, and/or the negligence and/or willful misconduct of Agent and/or any one or more of its Affiliates, employees, independent contractors, agents and/or other representatives; 

(c)        Unless otherwise provided in the Approved Operating
Budget, all costs of forms, accounting materials, administrative materials, papers, ledgers and other supplies and equipment used in Agent’s corporate office, all costs of Agent’s data processing equipment located at Agent’s corporate
office and all costs of data processing provided by computer service companies to Agent’s corporate office; 
 (d)        All costs of bonuses, incentive compensation, profit sharing or any pay advances to employees employed by Agent in connection with the operation and
management of the Property, except for payments to individuals specifically set forth in the Approved Operating Budget or otherwise approved in writing by Owner in advance; 

(e)        All costs of automobile purchases and/or rentals,
unless provided for in the Approved Operating Budget or Approved Capital Budget or the automobile is being provided by Owner; 
 (f)        All costs of comprehensive crime insurance purchased by Agent for its own account; 

(g)        All costs of meals, travel and hotel accommodations
for Agent’s home or regional office personnel who travel to and from the Property, unless expressly authorized by Owner; and 

  
 4 

 (h)        Unless
otherwise provided in the Approved Operating Budget, all costs (exclusive of fees that are directly property related, e.g., registration fee) of obtaining and maintaining such licenses, permits, consents and authorizations. 

3.03.    Noncustomary Services. Notwithstanding anything provided in this Agreement to the contrary, Agent
shall not furnish or render to the tenants of the Property services other than those services customarily furnished to tenants of properties similar to the Property. 
 3.04.    Nonperformance. If Agent fails to perform any act required under this Agreement, then Owner, after ten (10) days’ written notice to Agent (or, in the case of
any emergency, without notice) and without waiving or releasing Agent from any of its obligations hereunder, may (but shall not be required to) perform such act. Owner shall have (in addition to any other right or remedy) the right to offset all
costs and expenses incurred in exercising its rights under this Section 3.04 against any sums due or to become due to Agent, including, without limitation, the Services Fee. 

ARTICLE 4. PERSONNEL AND BONDING. 
 4.01.    Stability of Management Team. Owner and Agent recognize the benefits inherent in promoting stability in the management team engaged in the operation of the Property.

 (a)        Agent shall, in the hiring of all
employees and in retaining independent contractors, use reasonable care to select qualified, competent and trustworthy employees and independent contractors. Subject to the provisions of this Section 4.01, the selection, terms of employment
(including rates of compensation) and termination thereof, and the supervision, training and assignment of duties of all employees of Agent engaged in the operation of the Property shall be the duty and responsibility of and shall be determined by
Agent. All personnel at the Property shall be employees of Agent and/or contractors of Agent. 

(b)        Agent shall employ at Agent’s sole cost and
expense (unless otherwise provided in the Approved Operating Budget) a designated representative who works from the Records Office and is responsible for the Property and other properties (the costs and expenses for whom, if provided for in the
Approved Operating Budget, shall be pro rated in light of the time spent attending to the Property as opposed to other properties). 
 4.02.    Fidelity Bond.   Agent, at Agent’s cost, shall obtain a fidelity bond or bonds covering Agent, and all persons who handle, have access to, or are
responsible for, Owner’s monies in such amount and in such forms as are reasonably acceptable to Owner, at all times and to cover all periods, during the term of this Agreement. Any changes in such bond(s) must be approved by Owner. Agent
hereby agrees to add Owner as a joint loss payee under its blanket crime policy as it pertains to the Property. Agent hereby assigns all proceeds of said bond(s) as they relate to the Property to Owner and agrees to execute such further assignments
and notices thereof as shall be required by Owner. Such bond(s) shall indemnify Owner against any loss of money or other property which Owner shall sustain through any criminal, fraudulent or dishonest act or acts committed by Agent or any of its
employees or agents, during the performance of their obligations under this Agreement or their employment. Alternatively, Agent may obtain a crime insurance policy covering the Agent, and all 

  
 5 

 
persons who handle, have access to, or are responsible for, Owner’s monies which shall be obtained at Agent’s sole expense and shall provide Owner coverage of Two Million Dollars
($2,000,000.00) per occurrence with a Fifty Thousand Dollar ($50,000.00) deductible which deductible shall be an expense of Agent. Owner shall be furnished by Agent with a certificate or other satisfactory documentation relating to the bond(s) or
alternative crime insurance policy immediately upon issuance thereof. 
 4.03.    Affiliates.
  Agent shall not contract for outside services for the Property with any Affiliate of Agent without the prior written consent of Owner. 
 ARTICLE 5.   COMPLIANCE WITH LAWS. 

5.01.    Compliance.    Agent shall comply fully with and abide by all laws, rules,
regulations, requirements, orders, notices, determinations and ordinances (collectively, “Requirements”) of any federal, state or municipal authority to the extent applicable. If the cost of compliance is (i) not included in
the Approved Operating Budget or Approved Capital Budget or (ii) in excess of $10,000, Agent shall notify Owner promptly and obtain Owner’s prior written approval prior to making the expenditure. 

5.02.    Notice.  Agent shall promptly notify Owner of any non-compliance with, or alleged violation
of, any Requirement after becoming aware of the same. 
 ARTICLE 6. FINANCIAL MATTERS. 

6.01.    Books and Records.  Property Manager shall keep accounts and books and records of the
Property in accordance with the terms of the Property Management Agreement and the methods and systems, and in form and substance, approved by Owner, showing all receipts, expenditures and all other records necessary or convenient for the recording
of the results of operations of the Property. Such books are to be maintained on both a cash and accrual accounting basis utilizing the Yardi accounting software hosted by Agent. Agent shall cooperate and assist Property Manager in the production
and retention of such books and records. To the extent held by Agent, any such original books and records shall be kept in a secure location at the Records Office and shall be open to inspection by Owner and their representatives during normal
business hours and Agent agrees to cooperate in making such books and records available for inspection. Upon the effective date of any termination of this Agreement, all of such books and records held by Agent shall be delivered forthwith to Owner
so as to ensure the orderly continuance of the operation of the Property. Cut-off date for books on a monthly basis will be the last working day of each month. 
  

	6.02.    	 Reports. 

 (a)        On or before the last day of each month, Agent shall provide such reports and data to Owner and Property Manager as shall be required from time to time
by Owner. Without limitation, Agent shall provide the following to Owner and Property Manager for the current calendar month: 
 (i)        a detailed report of all monies collected (identified by tenant or other 

  
 6 

 
source) which shall include, but not be limited to, rents collected (including laundry or other vending income, garage or parking income, percentage rent and other amounts payable under any
retail leases, if any), rents prepaid beyond the current month, and security deposits collected, and of vacancies and delinquent rents; 
 (ii)        a detailed report of all expenses paid; 
 (iii)       all bank statements and reconciliations; and 
 (iv)       any other special information as required from time to time by Owner. 
 6.03.    Audit. Owner shall have the right to conduct an audit of the Property’s accounts and records at any time. Agent shall promptly correct all weaknesses and errors
disclosed by Owner’s audits, and shall timely inform Owner in writing of all corrective actions taken. Owner’s audit shall be at Owner’s expense unless an error arising from Agent’s negligence or misconduct is discovered that is
equal to or greater than two percent (2%) of annual gross receipts of the Property for the period audited, in which case Agent shall bear the full cost of the subject audit. Any adjustments in amounts due and owing from Owner or Agent shall be
paid within fifteen (15) calendar days following Owner’s receipt of the audit. 

6.04.    Other Reports and Statements. Agent shall furnish to Owner, as promptly as practicable, such other
reports, statements or other information with respect to the operations of the Property or the Accounts as Owner may from time to time reasonably request. 
 6.05.    Reserved. 
 6.06.    
Final Accounting.   Following termination of this Agreement, whether by expiration of the term hereof or sooner, Agent shall be responsible for preparing a final accounting within thirty (30) days after the effective date of
said termination. The final accounting shall include all items reasonably requested by Owner. Agent shall be entitled to receive a prorated share of its Services Fee to the date of termination. 

 

	6.07.    Reserved.	 

6.08.    Certification. To the extent applicable, all financial statements shall be certified as true and
correct in all material respects by Agent. 
 ARTICLE 7. BANK ACCOUNTS. 

 

	7.01.    Property	Accounts. 

 (a)        All funds received by Agent derived from the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account
(the “Property Bank Account”) in Agent’s name, as agent for Owner, in an FDIC-insured bank designated or approved by Owner, which such account will be in compliance with applicable law.

  
 7 

 
Owner may direct Agent to change depository banks or the depository arrangements. All funds so deposited shall be deemed to be trust funds held by Agent for the benefit of Owner and shall be held
and disbursed as provided herein. Agent shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant security deposits (the “TSD Account”). 

(b)        No non-Property funds shall be commingled with the
funds in the Property Bank Account or TSD Account (collectively, the “Accounts”). 

7.02.     Expenses Paid by Owner.   Except as otherwise directed by Owner, the following costs are to be paid
directly by Agent: 
 (a)        Any and all costs
necessary for the management, operation and maintenance of the Property requested by Property Manager, provided such costs are provided for and are within the limits of the Approved Operating Budget or specifically approved in writing by Owner;

 (b)        Capital expenditures provided for in the
Approved Capital Budget and requested by Property Manager or authorized in writing by Owner and directed by Owner to be incurred by Property Manager; and 

(c)        Any and all costs necessary for emergency expenses as
provided in Section 2.02(f) of the Property Management Agreement and directed to be incurred by Property Manager. 
 Agent shall not be obligated to make any advance to or for the account of Owner. 
 ARTICLE 8.
INSURANCE AND INDEMNITY. 
 8.01.     INDEMNIFICATION. 

(A) AGENT AGREES TO AND SHALL, COMPLETELY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY,
DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO OWNER), PROTECT AND HOLD OWNER AND ITS RESPECTIVE PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AUTHORIZED SUCCESSORS, AUTHORIZED ASSIGNS AND AGENTS HARMLESS FROM AND
AGAINST ANY AND ALL CLAIMS, DEMANDS, ACTIONS, FINES, PENALTIES, LIABILITIES, LOSSES, TAXES, DAMAGES, INJURIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ACTUAL ATTORNEYS’, CONSULTANTS’ AND EXPERT WITNESS’ FEES, AND DEFENSE COSTS AT
BOTH THE TRIAL AND APPELLATE LEVELS) (COLLECTIVELY, “DAMAGES”) IN ANY MANNER RELATED TO, ARISING OUT OF OR RESULTING FROM (I) ANY FAILURE OF AGENT TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT CAUSING DAMAGE TO OWNER, BUT ONLY TO
THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE 

  
 8 

 
INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (II) ANY ACTS OF AGENT BEYOND THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, (III) ANY NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER
WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS OF AGENT, BUT WITH REGARD TO NEGLIGENCE OF PROPERTY MANAGER (AS OPPOSED TO GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS) ONLY TO THE EXTENT SUCH DAMAGES ARE NOT
COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (IV) ANY INJURY, DAMAGE OR DEATH TO AGENT, ITS OFFICERS, DIRECTORS, PARTNERS, EMPLOYEES, AGENTS AND OTHER REPRESENTATIVES, AND (V) ANY INJURY, DAMAGE AND/OR DEATH TO
ANY INDEPENDENT CONTRACTORS OF AGENT. THE OBLIGATIONS OF AGENT UNDER THIS SUBSECTION (A) SHALL APPLY ONLY TO THE EXTENT DAMAGES OF AN INDEMNIFIED PARTY ARE NOT FULLY PAID BY OWNER’S COMMERCIAL GENERAL LIABILITY INSURANCE DESCRIBED BELOW IN
SECTION 8.05(B). NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT TO THE CONTRARY, AGENT’S OBLIGATIONS UNDER THIS SECTION 8.01 SHALL SURVIVE THE EXPIRATION, TERMINATION OR CANCELLATION OF THIS AGREEMENT, AND SHALL BIND ANY AND
ALL OF THE HEIRS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES OF AGENT. THE RIGHTS OF OWNER UNDER THIS SECTION 8.01 SHALL ALSO INURE TO THE BENEFIT OF ANY AND ALL OF THEIR PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS,
MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES, AND TO THE BENEFIT OF ANY AND ALL PERSONS AND LEGAL ENTITIES WHO ARE, COULD BE OR ARE ALLEGED TO BE, LIABLE FOR THE OBLIGATIONS
OF OWNER OR SUCH PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES. 

(B)        OWNER AGREES TO AND SHALL, COMPLETELY AND TO THE
MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO AGENT), PROTECT AND HOLD AGENT (AND ITS PARTNERS, EMPLOYEES, AGENTS, SUCCESSORS, ASSIGNS AND TRANSFEREES) HARMLESS FROM AND AGAINST ANY AND ALL DAMAGES IN ANY
MANNER RELATED TO OR ARISING OUT OF AGENT’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT WHICH ARE (A) WITHIN THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, AND (B) NOT WITHIN THE SCOPE OF AGENT’S INDEMNITY SET FORTH IN
SECTION 8.01(A) ABOVE. 
 (C)        THE
RIGHTS AND OBLIGATIONS OF INDEMNITY PROVIDED IN THIS SECTION 8.01 SHALL NOT BE EXCLUSIVE AND SHALL BE IN ADDITION TO SUCH OTHER RIGHTS AND OBLIGATIONS AS OTHERWISE EXIST 

  
 9 

 
INDEPENDENT OF THE PROVISIONS OF THIS SECTION 8.01. 
  

	8.02.    	Agent’s Insurance Responsibility. 

 (a)        The Agent shall maintain during the term of this Agreement, and any extensions or renewals thereof, each of the following insurance coverages with
deductibles, if applicable: 
  

	 	(i)	 Workers’ Compensation Insurance at no less than statutory requirements including employer’s liability with a limit of not less than
$1,000,000 each accident for bodily injury accident and $1,000,000 each employee and policy limit for bodily injury by disease. 

  

	 	(ii)	Non-Occupational Disability Insurance when required by law, if applicable. 

(iii)      Commercial General Liability Insurance with a minimum combined
bodily injury and property damage per occurrence limit of liability of $5,000,000, a products-completed operations aggregate limit of $5,000,000 and a general aggregate limit of $10,000,000. Limits of liability may be satisfied through the
maintenance of a combination of primary and umbrella/excess liability policies. 

(iv)      Automobile Liability Insurance covering owned, hired and
nonowned vehicles, separate coverage in an amount not less than $1,000,000 combined single limit for bodily injury and property damage of $1,000,000 each accident. 

(v)        Errors and Omissions Insurance coverage in an amount
not less than $1,000,000 each claim and general aggregate. 

   (b)        Agent shall promptly provide Owner
no later than three (3) days after the Effective Date with certificates of insurance or other satisfactory documentation which evidence that all required insurance is in full force and effect. Upon request, Agent shall provide Owner with a copy
of the foregoing insurance policies. The insurance as required in Subsections 8.02(a)(i), (ii) and (v) to be maintained by Agent shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice of
cancellation or material change. The liability policies required by Subsections 8.02(a)(iii) and (iv) shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice of cancellation or material change and
shall name Owner and its principals, officers, directors, shareholders, partners, members, trustees, beneficiaries and employees as additional insureds. All liability policies shall be written to apply to all bodily injury, property damage, personal
injury and other covered loss, however occasioned, which occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. Such liability policies also shall contain endorsements including cross-liability
and waiver of subrogation, and shall contain such other endorsements as may be reasonably required by Owner. The liability policies required by Subsections 8.02(a)(iii) shall include broad form contractual liability insurance

  
 10 

 
coverage. 
 8.03.     Contract Documents;
Indemnity Provisions. Agent shall use its best efforts to include in service and supply contracts prepared or executed by Agent respecting the Property provisions to the effect that the other contracting party shall, to maximum extent permitted
by law, indemnify, defend (with counsel reasonably acceptable to Owner), protect and hold harmless Agent and Owner and their respective principals, officers, directors, shareholders, partners, members, managers, trustees, beneficiaries and employees
from and against any and all Damages in any manner related to, arising out of and/or resulting from any damage to or injury to, or death of, persons or property caused or occasioned by or in connection with or arising out of any acts or omissions of
said contracting party or its employees or agents or contractors and agree that no principal, officer, director, shareholder, partner, member, manager, investor, trustee, officer, employee or agent of Owner shall be personally liable for any of the
obligations of Owner hereunder. 
 8.04.     Ratings of Insurance Companies. All insurance
required to be carried by Agent shall be written with companies having a policyholder and asset rate, as circulated by Best’s Insurance Reports, of A-:VIII or better unless an exception is approved by Owner. 

8.05.     Owner’s Insurance Responsibility. Owner shall maintain during the term of this Agreement,
and any extensions thereof, each of the following insurance coverages which shall be primary and noncontributory insurance: 
 (a)        All-Risk Property Damage Insurance and Loss of Rents Insurance coverage on the Property. 

(b)        Commercial General Liability Insurance coverage with a
minimum general aggregate limit of not less than $10,000,000. Agent shall be designated an insured under Owner’s commercial general liability insurance policy while acting within the scope of its authority as Owner’s property manager. All
other terms and conditions of this Agreement (including, without limitation, the indemnification provisions of Section 8.01 and Agent’s obligation to maintain insurance described in Section 8.02) shall not be affected by this
Section 8.05(b). 
 8.06.     Reserved. 

 

	ARTICLE	9. RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES. 

 9.01.     Nature of Relationship. In taking any action pursuant to this Agreement, Agent will be acting only as an independent contractor, and nothing in this Agreement,
expressed or implied, shall be construed as creating a partnership or joint venture or an employment relationship or that of principal and agent between Agent (or any person employed by Agent) and Owner or any other relationship between the parties
hereto except that of property owner and independent contractor. 
 9.02.     Communications Between Parties.
Owner shall rely on Agent to direct and control all 

  
 11 

 
operations at the Property; provided, however, Owner reserves the right to communicate directly with the manager specified in Subsection 4.01(b), Agent’s accountant(s) working on
Property matters, all tenants and tenants’ representatives, all lease prospects, all advertising, management, cleaning and servicing firms doing work for the Property, and all parties contracting with Owner or Agent with respect to the
Property. 
 9.03.     Relationship of Owner and Agent with Respect to Leasing. Agent shall not
be entitled to any commission or other fee in connection with the leasing of apartment units at the Property. 

9.04.     No Sales Brokerage Agreement. There are no sales brokerage agreements between Owner and Agent;
Agent has no brokerage agreement or understanding (exclusive or otherwise) with respect to the sale of all or part of the Property on behalf of Owner; and in the event that Owner effects a sale of the Property, whether on its own or through the use
of others, brokers or otherwise, Agent shall be entitled to no compensation, fee or commission or other payment on account of such sale. Unless specifically approved by Owner, Agent shall have no right to obligate Owner for the payment of any fees
or commissions to any outside real estate agent or broker for tenant leases. Except as expressly provided to the contrary elsewhere herein or as otherwise approved by Owner in writing, Agent shall be fully responsible for any compensation due
employees of Agent and any real estate brokers cooperating with Agent. Agent shall indemnify and hold Owner harmless with respect to any action, proceeding, claim, liability, loss, cost or expense (including reasonable attorneys’ fees) arising
in connection with any claim for brokerage or finder’s fees or any other like payment payable as a result of a breach under this Section 9.04 by Agent. Agent’s obligations with respect to the foregoing indemnity shall survive the
expiration or earlier termination of this Agreement. 
 9.05.     Confidentiality. Except as may
be otherwise required by law, Agent and Owner shall maintain the confidentiality of all matters pertaining to this Agreement and all operations and transactions relating to the Property. 

9.06.     Agent Not to Pledge Owner’s Credit. Agent shall not, except in the purchase of goods,
wares, merchandise, materials, supplies and services reasonably required in the performance of its obligations under this Agreement and approved by Owner, pledge the credit of Owner; nor shall Agent, in the name or on behalf of Owner, borrow any
money or execute any promissory note, installment purchase agreement, bill of exchange or other obligation binding on Owner or the Property. 
 9.07      Representations and Warranties. 
 (a)       Agent represents and warrants that (i) Agent has full power, authority and legal right to execute, deliver and perform this Agreement and to perform all of its
obligations hereunder and (ii) the execution, delivery and performance of all or any portion of this Agreement do not and will not (x) require any consent or approval from any governmental authority, (y) violate any provisions of law
or any government order or (z) conflict with, result in a breach of, or constitute a default under, the charter or bylaws of Agent or any instrument to which Agent is a party or by which it or any of its property is bound. 

  
 12 

 (b)        Owner
represents and warrants that it has full power, authority and legal right to execute, deliver and perform this Agreement. 
 (c)        Agent acknowledges and agrees that Owner is relying upon the representations and warranties set forth in Sections 9.07(a) in entering into this
Agreement, and Owner acknowledges and agrees that Agent is relying upon the representations and warranties set forth in Section 9.07(b) in entering into this Agreement. 
 ARTICLE 10.              TERMINATION. 
 10.01.    Termination by Owner Without Cause. This Agreement may be terminated by Owner at any time without cause and upon written notice to Agent by Owner, effective thirty
(30) days from the date of such notice, which shall be considered the effective date of termination. 

10.02.    Termination by Owner for Cause. This Agreement may be terminated by Owner (or the Agent may be required by Owner to
change its personnel assigned as Agent for the Property) at any time during the term hereof upon written notice to Agent effective immediately for any of the following causes: 

(a)        If Agent shall suspend or discontinue business;

 (b)        If a court shall enter a decree or order
for relief in respect of Agent in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law, or appoint a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Agent or for any substantial part of its property, or for the winding-up, dissolution or liquidation of its affairs, and such decree or order shall continue unstayed and
in effect for a period of sixty (60) consecutive days or if Agent shall consent to any of the foregoing; 
 (c)        If Agent shall commence a voluntary case or action under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or
state bankruptcy insolvency or other similar law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Agent or for any substantial part of its
property, or make any assignment for the benefit of creditors, or admit in writing that it is unable, or fail generally to pay its debts as such debts become due, or take action in furtherance of any of the foregoing; 

(d)        If Agent is grossly negligent or engages in willful
misconduct with respect to its duties or obligations to Owner under this Agreement; or 

(e)        If Agent commits any other material default in the
performance of any of its obligations under this Agreement, unless such default is cured with thirty (30) days after written notice of such default is given to Agent, or, if not curable within thirty (30) days, commenced within such thirty
(30) days and diligently prosecuted to completion. 
  

	10.03.    Termination	 by Agent. This Agreement may be terminated by Agent, without cause, upon

  
 13 

 
ninety (90) days’ written notice to Owner. This Agreement may be terminated by Agent for cause if Owner commits any material default in the performance of any of its obligations under
this Agreement, including, without limitation, its obligation to pay to Agent any fees due and payable under Section 3.01 above, and such default shall continue for a period of thirty (30) days after notice thereof by Agent to Owner.

 10.04.    Orderly Transition. In the event of any termination or expiration of this Agreement,
Agent shall use its best efforts to effect an orderly transition of the management and operation of the Property to an agent designated by Owner and to cooperate with such agent. Upon termination or expiration of this Agreement, Agent’s rights,
if any, to withdraw funds from any account which contains funds collected in connection with the Property shall terminate. Agent shall remove all signs that it may have placed at the Property containing its name and repair any resulting damage. In
addition, Agent shall deliver the following to Owner on or before thirty (30) days following the termination or expiration date: 
 (a)        A final report, reflecting the balance of income and expenses for the Property as of the date of termination or expiration; and 

(c)        All keys, property, supplies, records, contracts,
drawings, leases and correspondence, in existence at the time of termination or expiration and all other papers or documents pertaining to the Property. All data, information and documents shall at all times be the property of Owner. 

10.05.    Rights Which Survive Termination or Expiration. Termination and/or expiration of this Agreement
shall in no event terminate or prejudice any right arising out of or accruing in connection with the terms of this Agreement attributable to events and circumstances occurring prior to termination or expiration of this Agreement, and/or all rights
and obligations specified in this Agreement to survive such termination and/or expiration. 
 ARTICLE
11.               MISCELLANEOUS. 

11.01.    Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the
State in which the property is located without going effect to the conflict of law principles of such State. 

11.02.    Table of Contents and Headings. The Table of Contents preceding this Agreement and the headings of
the various articles and sections of this Agreement have been inserted for convenient reference only and shall not have the effect of modifying or amending the express terms and provisions of this Agreement. 

11.03.    Entire Agreement. This Agreement contains the entire agreement between the parties with regard to
the subject matter hereof, and this Agreement shall not be amended, modified or cancelled except in writing signed by both parties or by their duly authorized agents. 
 11.04.    Successors and Assigns. All terms, conditions and agreements herein set forth shall inure to the benefit of, and be binding upon the parties, and any and all of their
respective permitted heirs, 

  
 14 

 
successors, representatives and assigns. Notwithstanding the foregoing, this Agreement may not be assigned by Agent nor shall Agent delegate any of its duties hereunder without Owner’s prior
written consent, which consent may be granted or withheld in Owner’s sole and absolute discretion. Any attempted assignment or delegation by Agent hereunder in violation of this Section 11.04 shall be null and void and of no force or
effect. 
 11.05.      Waiver. The failure of either party to insist upon a strict
performance of any of the terms or provisions of this Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such terms, provisions, option, right or remedy,
but the same shall continue and remain in full force and effect. No waiver by either party of any terms or provisions hereof shall be deemed to have been made unless expressed in writing and signed by such party. In the event of consent by Owner to
an assignment of this Agreement, no further assignment shall be made without the express written consent of Owner. 

11.06.      Severability. Whenever possible each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under all applicable laws. However, if any provision of this Agreement is invalid under any applicable law, such provision shall be ineffective only to the extent of such invalidity without invalidating the
remaining provisions of this Agreement and, to the fullest extent possible, this Agreement shall be interpreted so as to give effect to the stated written intent of the parties. 

11.07.      Time. Time is of the essence of this Agreement. 

11.08.      Attorneys’ Fees. In the event of any legal or equitable proceeding for enforcement
of any of the terms or conditions of this Agreement, or any alleged disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding, or the non-dismissing party where the
dismissal occurs other than by reason of a settlement, shall be entitled to recover its reasonable costs and expenses, including without limitation reasonable attorneys’ fees and costs, paid or incurred in good faith at the pre-trial, trial and
appellate levels, and in enforcing any award or judgment granted pursuant thereto. Any award, judgment or order entered in any such proceeding shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred
in enforcing such award or judgment, including without limitation (a) post-award or post-judgment motions, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examinations, (d) discovery and
(e) bankruptcy litigation. The “prevailing party”, for purposes of this Agreement, shall be deemed to be that party that obtains substantially the result sought, whether by dismissal, award or judgment. 

11.09.      Further Acts. Owner and Agent shall execute such other documents and perform such other
acts as may be reasonably necessary and/or helpful to carry out the purposes of this Agreement. 

11.10.      No Advertising. No publication, announcement or other public advertisement of the name
of Owner in connection with the Property shall be made by Agent, except as may be required by applicable law or with the prior written consent of Owner. 
 11.11.      Signs. Signs and building directories are prohibited unless specifically approved by Owner. Agent may place reasonable leasing signs as required with the
prior approval of Owner. All signs 

  
 15 

 
must meet all requirements of local sign codes and ordinances. 

11.12.  Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages. Agent agrees that no principal, officer,
director, shareholder, partner, member, investor, manager, representative, trustee, officer, employee or agent of Owner or of its members or partners shall be personally liable for any of the obligations of Owner hereunder and that Agent must look
solely to the assets of Owner for the enforcement of any claims against Owner arising hereunder. In addition, Agent hereby waives in connection with any such claim any right it may have to a jury trial and any punitive or consequential damages.

 11.14.  Notices. Any notice required or desired to be given under this Agreement shall be given in writing
and shall be deemed sufficiently given and served for all purposes when personally delivered or delivered by any generally recognized courier, or by certified or registered mail, addressed to the appropriate address shown below. Any notice given by
depositing it in the United States mail as certified or registered mail, postage prepaid, shall be deemed given five (5) business days after deposit. 
  

			
	Owner:	  	 KBS Legacy Partners Lombard LLC
 c/o KBS Capital Advisors, LLC
 620 Newport Center Drive, Suite 1300

Newport Beach, California 92660
 Attn:
  David Snyder

		
	With a copy to:	  	 KBS Legacy Partners Lombard LLC
 c/o Legacy Partners Residential Realty LLC
 7525 SE 24th Street, Suite 180

Mercer Island, Washington 98040
 Attn:
  Kerry L. Nicholson

		
	With a copy to:	  	 KBS Legacy Partners Lombard LLC
 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor

Foster City, California 94404
 Attn:
  W. Dean Henry/Guy K. Hays

		
	Agent:	  	 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

Attn:   Carol Foster

		
	With a copy to:	  	 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

Attn:   W. Dean Henry/Guy K. Hays

  
 16 

 11.15.  Counterparts. This Agreement may be executed in any number of
counterparts and each such counterpart shall be deemed to be an original instrument, but all such executed counterparts together shall constitute one and the same instrument. 

  
 17 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument
to be executed as of the Effective Date. 
  

									
	OWNER:	  	 KBS LEGACY PARTNERS LOMBARD LLC, a
 Delaware limited liability company

			
		  	By:    	 	 KBS LEGACY PARTNERS PROPERTIES
 LLC, a Delaware limited liability company, its sole
 member

				
		  		 	By:    	  	 KBS LEGACY PARTNERS LIMITED
 PARTNERSHIP, a Delaware limited
 partnership, its sole member

					
		  		 		  	By:    	  	 KBS LEGACY PARTNERS

APARTMENT REIT, INC., a
 Maryland corporation,
its sole
 general partner

					
		  		 		  		  	By: /s/ Guy K. Hays                     
                                         
              
		  		 		  		  	Name: Guy K. Hays
		  		 		  		  	Title: Executive Vice President

  

									
	AGENT:	  	 LEGACY PARTNERS RESIDENTIAL L.P., a
 Delaware limited partnership

			
		  	By:	 	       Legacy Partners Residential, Inc., a

      Delaware corporation, its managing general
       partner

			
		  		 	
        By: /s/ Michael J. King          
                                         
                         
         Name:  Michael J. King

        Its:       Vice President – Designated Real

                     Estate
Broker

		  		 		 		 	
		  		 		 		 	

  
 18 

 EXHIBIT A 
 LEGAL DESCRIPTION OF PROPERTY 
 PARCEL 1: 

TRACT B OF COVE LANDING ASSESSMENT PLAT NO. 2 OF TRACT 9 IN COVE LANDING ASSESSMENT PLAT OF THE WEST 1⁄2 OF THE SOUTHEAST 1/4 (EXCEPT THE NORTH 660.00
FEET THEREOF AND EXCEPT THE NORTH 31 ACRES OF THAT PART THEREOF LYING SOUTH OF THE NORTH 660.00 OF SAID WEST 1⁄2 OF THE SOUTHEAST 1⁄4 AND EXCEPT THAT PART OF THE SOUTH 50.00 FEET AS MEASURED PERPENDICULAR TO AND PARALLEL WITH THE SOUTH LINE OF
THE WEST 1⁄2 OF THE SOUTHEAST 1⁄4, LYING EAST OF THE WEST 25.00 FEET THEREOF AND LYING WEST OF THE EAST 300.00 FEET THEREOF) OF SECTION 19, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN DUPAGE COUNTY, ILLINOIS.

 PARCEL 2: 
 EASEMENTS FOR INGRESS
AND EGRESS TO AND FROM FINDLEY ROAD OVER THE WALKWAYS AND ROADWAYS CONSTRUCTED OR TO BE CONSTRUCTED ON PORTIONS OF THE PROPERTY ADJACENT TO PARCEL 1 ON THE WEST AND NORTH AS SET FORTH IN THAT CERTAIN DECLARATION OF EASEMENTS AND LICENSE RECORDED AS
DOCUMENT R71-18281 WHICH RIGHTS WERE CONVEYED BY DEED RECORDED SEPTEMBER 24, 1987 AS DOCUMENT R87-140825. 
 PARCEL 3: 

NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE “FINDLEY ROAD ACCESSWAYS” AS SET FORTH IN THAT CERTAIN DEVELOPMENT AGREEMENT RECORDED
JUNE 29, 2001 AS DOCUMENT R2001-131054.EX-4.1

 Exhibit 4.1 

 
  

 
  
 PURCHASE CONTRACT AGREEMENT 
 Dated as of July 16, 2012

 Between 
 BEAZER HOMES USA, INC. 
 and 

U.S. BANK NATIONAL ASSOCIATION, 
 as Purchase Contract Agent 
 and as Trustee under the Indenture referred
to herein 
  
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	 	1	  
	 Section 1.01
	 	 Definitions
	  	 	1	  
	 Section 1.02
	 	 Compliance Certificates and Opinions
	  	 	10	  
	 Section 1.03
	 	 Form of Documents Delivered
	  	 	11	  
	 Section 1.04
	 	 Acts of Holders; Record Dates
	  	 	11	  
	 Section 1.05
	 	 Notices
	  	 	13	  
	 Section 1.06
	 	 Notice to Holders; Waiver
	  	 	13	  
	 Section 1.07
	 	 Effect of Headings and Table of Contents
	  	 	14	  
	 Section 1.08
	 	 Successors and Assigns
	  	 	14	  
	 Section 1.09
	 	 Separability Clause
	  	 	14	  
	 Section 1.10
	 	 Benefits of Agreement
	  	 	14	  
	 Section 1.11
	 	 Governing Law
	  	 	14	  
	 Section 1.12
	 	 Conflicts with Indenture
	  	 	15	  
	 Section 1.13
	 	 Legal Holidays
	  	 	15	  
	 Section 1.14
	 	 Counterparts
	  	 	15	  
	 Section 1.15
	 	 Inspection of Agreement
	  	 	15	  
	 Section 1.16
	 	 Waiver of Jury Trial
	  	 	15	  
	 Section 1.17
	 	 Force Majeure
	  	 	15	  
	 Section 1.18
	 	 Calculations
	  	 	16	  
	 Section 1.19
	 	 UCC
	  	 	16	  
		
	 ARTICLE II UNIT AND PURCHASE CONTRACT FORMS
	  	 	16	  
	 Section 2.01
	 	 Forms of Units and Purchase Contracts Generally
	  	 	16	  
	 Section 2.02
	 	 Form of Certificate of Authentication
	  	 	17	  
	 Section 2.03
	 	 Global Securities; Separation of Units
	  	 	17	  
	 Section 2.04
	 	 Recreation of Units
	  	 	18	  
		
	 ARTICLE III THE UNITS AND PURCHASE CONTRACTS
	  	 	19	  
	 Section 3.01
	 	 Amount and Denominations
	  	 	19	  
	 Section 3.02
	 	 Rights and Obligations Evidenced by the Equity-Linked Securities
	  	 	19	  
	 Section 3.03
	 	 Execution, Authentication, Delivery and Dating
	  	 	19	  
	 Section 3.04
	 	 Temporary Equity-Linked Securities
	  	 	20	  
	 Section 3.05
	 	 Registration; Registration of Transfer and Exchange
	  	 	21	  
	 Section 3.06
	 	 Book-Entry Interests
	  	 	22	  
	 Section 3.07
	 	 Notices to Holders
	  	 	22	  
	 Section 3.08
	 	 Appointment of Successor Depositary
	  	 	23	  
	 Section 3.09
	 	 Definitive Securities
	  	 	23	  
	 Section 3.10
	 	 Mutilated, Destroyed, Lost and Stolen Securities
	  	 	23	  
	 Section 3.11
	 	 Persons Deemed Owners
	  	 	24	  
	 Section 3.12
	 	 Cancellation
	  	 	25	  
		
	 ARTICLE IV SETTLEMENT OF THE PURCHASE CONTRACTS
	  	 	26	  
	 Section 4.01
	 	 Settlement Rate
	  	 	26	  
	 Section 4.02
	 	 Representations and Agreements of Holders
	  	 	26	  

							
	 Section 4.03
	 	 Delivery Upon Settlement of the Purchase Contracts
	  	 	27	  
	 Section 4.04
	 	 Early Settlement
	  	 	28	  
	 Section 4.05
	 	 Early Mandatory Settlement at the Company’s Election
	  	 	29	  
	 Section 4.06
	 	 No Fractional Shares
	  	 	30	  
		
	 ARTICLE V ADJUSTMENTS
	  	 	31	  
	 Section 5.01
	 	 Adjustments to the Fixed Settlement Rates
	  	 	31	  
	 Section 5.02
	 	 Early Settlement Upon a Fundamental Change
	  	 	39	  
	 Section 5.03
	 	 Adjustments for Events Occurring During Averaging Periods
	  	 	41	  
		
	 ARTICLE VI REMEDIES
	  	 	41	  
	 Section 6.01
	 	 Unconditional Right of Holders to Receive Shares of Common Stock
	  	 	41	  
	 Section 6.02
	 	 Limitation on Proceedings
	  	 	41	  
	 Section 6.03
	 	 Restoration of Rights and Remedies
	  	 	42	  
	 Section 6.04
	 	 Rights and Remedies Cumulative
	  	 	42	  
	 Section 6.05
	 	 Delay or Omission Not Waiver
	  	 	42	  
	 Section 6.06
	 	 Undertaking for Costs
	  	 	42	  
	 Section 6.07
	 	 Waiver of Stay or Execution Laws
	  	 	43	  
	 Section 6.08
	 	 Control by Majority
	  	 	43	  
		
	 ARTICLE VII THE PURCHASE CONTRACT AGENT AND TRUSTEE
	  	 	43	  
	 Section 7.01
	 	 Certain Duties and Responsibilities
	  	 	43	  
	 Section 7.02
	 	 Notice of Default
	  	 	44	  
	 Section 7.03
	 	 Certain Rights of Purchase Contract Agent
	  	 	44	  
	 Section 7.04
	 	 Not Responsible for Recitals
	  	 	46	  
	 Section 7.05
	 	 May Hold Units and Purchase Contracts
	  	 	46	  
	 Section 7.06
	 	 Money Held in Custody
	  	 	46	  
	 Section 7.07
	 	 Compensation, Reimbursement and Indemnification
	  	 	47	  
	 Section 7.08
	 	 Corporate Purchase Contract Agent Required; Eligibility
	  	 	47	  
	 Section 7.09
	 	 Resignation and Removal; Appointment of Successor
	  	 	48	  
	 Section 7.10
	 	 Acceptance of Appointment by Successor
	  	 	49	  
	 Section 7.11
	 	 Merger; Conversion; Consolidation or Succession to Business
	  	 	49	  
	 Section 7.12
	 	 Preservation of Information; Communications to Holders
	  	 	50	  
	 Section 7.13
	 	 No Other Obligations of Purchase Contract Agent or Trustee
	  	 	50	  
	 Section 7.14
	 	 Tax Compliance
	  	 	50	  
		
	 ARTICLE VIII SUPPLEMENTAL AGREEMENTS
	  	 	51	  
	 Section 8.01
	 	 Supplemental Agreements Without Consent of Holders
	  	 	51	  
	 Section 8.02
	 	 Supplemental Agreements With Consent of Holders
	  	 	52	  
	 Section 8.03
	 	 Execution of Supplemental Agreements
	  	 	52	  
	 Section 8.04
	 	 Effect of Supplemental Agreements
	  	 	52	  
	 Section 8.05
	 	 Reference to Supplemental Agreements
	  	 	53	  
	 Section 8.06
	 	 Notice of Supplemental Agreements
	  	 	53	  
		
	 ARTICLE IX CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	 	53	  
	 Section 9.01
	 	 Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except Under Certain Conditions
	  	 	53	  

  
 ii 

							
	 Section 9.02
	 	 Rights and Duties of Successor Entity
	  	 	53	  
	 Section 9.03
	 	 Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent
	  	 	54	  
		
	 ARTICLE X COVENANTS OF THE COMPANY
	  	 	54	  
	 Section 10.01
	 	 Performance Under Purchase Contracts
	  	 	54	  
	 Section 10.02
	 	 Maintenance of Office or Agency
	  	 	54	  
	 Section 10.03
	 	 Statements of Officers of the Company as to Default
	  	 	55	  
	 Section 10.04
	 	 Existence
	  	 	55	  
	 Section 10.05
	 	 Company to Reserve Common Stock
	  	 	55	  
	 Section 10.06
	 	 Covenants as to Common Stock
	  	 	55	  
	 Section 10.07
	 	 Tax Treatment
	  	 	56	  
	
	EXHIBITS	  
		
	 Exhibit A—Form of Faces of Unit
	  	 	A-1	  
		
	 Exhibit B—Form of Faces of Purchase Contract
	  	 	B-1	  

  
 iii

 PURCHASE CONTRACT
AGREEMENT, dated as of July 16, 2012 between Beazer Homes USA, Inc., a Delaware corporation (the “Company”), and U.S. Bank National Association, a national banking association, acting as
purchase contract agent and attorney-in-fact for the Holders of Purchase Contracts (as defined herein) from time to time (the “Purchase Contract Agent”) and as trustee under the Indenture (as defined herein). 

RECITALS OF THE COMPANY 

The Company has duly authorized the execution and delivery of this Agreement and the Units (as defined herein) and Purchase Contracts
issuable hereunder. 
 All things necessary to make the Units and Purchase Contracts, when such are executed by the Company and
authenticated on behalf of the Holders and delivered by the Purchase Contract Agent, as provided in this Agreement, the valid obligations of the Company and to constitute this Agreement a valid agreement of the Company, in accordance with its terms,
have been done. For and in consideration of the premises and the purchase of the Units (including the constituent parts thereof) by the Holders thereof, it is mutually agreed as follows: 

ARTICLE I 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 Section 1.01 Definitions 
 For all purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires: 
 (a) the terms defined in this Article have
the meanings assigned to them in this Article and include the plural as well as the singular, and nouns and pronouns of the masculine gender include the feminine and neuter genders; 

(b) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles in the United States; 
 (c) the words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision; 
 (d) “or” is not exclusive; and 
 (e) the following terms have the
meanings given to them in this Section 1.01(e): 
 “Act” has the meaning, with respect to any Holder, set
forth in Section 1.04(a). 
 “Affiliate” of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the
foregoing. 

 “Agreement” means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the applicable provisions hereof. 
 “Applicable Market Value” means the average Closing Price per share of the Common Stock on each of the 20 consecutive Trading Days ending on, and including, the third Trading Day
immediately preceding the Mandatory Settlement Date. 
 “Applicants” has the meaning set forth in
Section 7.12(b). 
 “Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the
beneficial owner of such Book-Entry Interest as reflected on the books of the Depositary or on the books of a Person maintaining an account with the Depositary (directly as a Depositary Participant or as an indirect participant, in each case in
accordance with the rules of the Depositary). 
 “Board of Directors” means the board of directors of the
Company or a duly authorized committee of that board. 
 “Board Resolution” means one or more resolutions of
the Board of Directors (or, for the avoidance of doubt, any duly authorized committee thereof), a copy of which has been certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors (or such
committee) and to be in full force and effect on the date of such certification and delivered to the Purchase Contract Agent. 

“Book-Entry Interest” means a beneficial interest in a Global Security, registered in the name of a Depositary or a
nominee thereof, ownership and transfers of which shall be maintained and made through book entries by such Depositary as described in Section 3.06. 
 “Business Day” means any day other than a Saturday, Sunday or any day on which banking institutions in New York, New York are authorized or obligated by applicable law to close.

 “Capital Stock” of any Person means any and all shares, interests, participations or other equivalents,
however designated, of corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any rights (other than debt securities convertible or exchangeable into an equity interest),
warrants or options to acquire an equity interest in such Person. 
 “Clearing Agency” means an organization
registered as a “Clearing Agency” pursuant to Section 17A of the Exchange Act. 
 “close of
business” means 5:00 p.m. (New York City time). 
 “Closing Price,” with respect to a share of the
Common Stock, means on any given date: 

  

- 2 - 

 (1) the reported closing price per share on that date or, if no closing price is reported,
the last reported sale price per share of Common Stock on the NYSE on that date; or 
 (2) if the Common Stock is not traded on
the NYSE, the closing price per share on that date as reported in composite transactions for the principal U.S. national or regional securities exchange on which the Common Stock is so traded or, if no closing price is reported, the last reported
sale price per share of Common Stock on the principal U.S. national or regional securities exchange on which the Common Stock is so traded; or 
 (3) if the Common Stock is not traded on a U.S. national or regional securities exchange, the last quoted bid price per share of Common Stock on that date in the over-the-counter market as reported by
Pink OTC Markets Inc. or a similar or successor organization; or 
 (4) if the Common Stock is not so quoted by Pink OTC Markets
Inc. or a similar or successor organization, the market value per share of the Common Stock on that date as determined by the Board of Directors. 
 For the avoidance of doubt, following a Reorganization Event, the Closing Price shall be determined in the manner provided in clause (ii) of the last sentence of the first paragraph of
Section 5.01(e). 
 All references herein to the closing price per share of Common Stock and the last reported sale price
per share of Common Stock on the NYSE shall be such closing price per share and such last reported sale price per share as reflected on the website of the NYSE (www.nyse.com) and as reported by Bloomberg Professional Service; provided,
however, that in the event that there is a discrepancy between the closing price per share and the last reported sale price per share as reflected on the website of the NYSE and as reported by Bloomberg Professional Service, the closing price
per share and the last reported sale price per share on the website of the NYSE shall govern. 
 “Code” means
the Internal Revenue Code of 1986 (title 26 of the United States Code), as amended from time to time. 
 “Common
Stock” means the common stock, par value $0.001 per share, of the Company as it existed on the date of this Agreement, subject to Section 5.01(e). 
 “Company” means the Person named as the “Company” in the first paragraph of this Agreement until a successor shall have become such pursuant to the applicable provision of this
Agreement, and thereafter “Company” shall mean such successor. 
 “Corporate Trust Office” means the
principal corporate trust office of the Purchase Contract Agent at which, at any particular time, its corporate trust business shall be administered, which office at the date hereof is located at U.S. Bank Corporate Trust Services, 1349 West
Peachtree Street NW, Suite 1050, Atlanta, GA 30309, Attention: Account Manager-Beazer Tangible Equity Units; provided, however, that solely for the purposes of the requirement to maintain an office in the Borough of Manhattan, the
Corporate Trust Office shall be located at 100 Wall Street, 16th Floor Window, New York, NY 10005, Attention: Account Manager-Beazer Tangible Equity Units. 

  

- 3 - 

 “Current Market Price” per share of Common Stock on any date means for the
purposes of determining an adjustment to the Fixed Settlement Rates: 
 (a) for purposes of adjustments pursuant to
Section 5.01(a)(ii), Section 5.01(a)(iv) in the event of an adjustment not relating to a Spin-Off, and Section 5.01(a)(v), the average of the Closing Prices per share of Common Stock over the five consecutive Trading Day period
ending, and including, on the Trading Day immediately preceding the Ex-Date with respect to the issuance or distribution requiring such computation; 
 (b) for purposes of adjustments pursuant to Section 5.01(a)(iv) in the event of an adjustment relating to a Spin-Off, the average of the Closing Prices per share of Common Stock over the first ten
consecutive Trading Days commencing, on and including, the fifth Trading Day following the Ex-Date for such distribution; and 

(c) for purposes of adjustments pursuant to Section 5.01(a)(vi), the average of the Closing Prices per share of Common Stock over
the five consecutive Trading Day period ending, and including, on the seventh Trading Day after the Tender Offer Expiration Date of the relevant tender offer or exchange offer. 

“Definitive Security” means any Security in definitive form. 

“Depositary” means a Clearing Agency that is acting as a depositary for the Purchase Contracts and in whose name, or in
the name of a nominee of that organization, shall be registered one or more Global Securities and which shall undertake to effect book-entry transfers of the Purchase Contracts as contemplated by Section 3.06, Section 3.07,
Section 3.08 and Section 3.09. 
 “Definitive Equity-Linked Security” means an Equity-Linked Security
in definitive form. 
 “Depositary Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time the Depositary effects book-entry transfers of securities deposited with the Depositary. 
 “DTC” means The Depository Trust Company. 
 “DWAC
System” has the meaning set forth in Section 2.03(a). 
 “Early Mandatory Settlement Date” has
the meaning set forth in Section 4.05(a). 
 “Early Mandatory Settlement Notice” has the meaning set forth
in Section 4.05(b). 
 “Early Mandatory Settlement Rate” shall be the Maximum Settlement Rate, unless the
Closing Price per share of the Common Stock for 20 or more Trading Days in a period of 30 consecutive Trading Days ending on, and including, the Trading Day immediately preceding the Notice Date exceeds 130% of the Threshold Appreciation Price in
effect on each such Trading Day, in which case the “Early Mandatory Settlement Rate” shall be the Minimum Settlement Rate. 

  

- 4 - 

 “Early Mandatory Settlement Right” has the meaning set forth in
Section 4.05(a). 
 “Early Settlement” has the meaning set forth in Section 4.04(a). 

“Early Settlement Date” has the meaning set forth in Section 4.04(b). 

“Early Settlement Rate” for each Purchase Contract means the Minimum Settlement Rate, unless the Holder elects to settle
such Purchase Contract in connection with a Fundamental Change, in which case such Holder shall receive upon settlement of such Purchase Contract a number of shares of Common Stock equal to the Fundamental Change Early Settlement Rate. 

“Effective Date” has the meaning set forth in Section 5.02(c). 

“Equity-Linked Security” means a Unit or a Purchase Contract, as applicable. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any statute successor thereto, in each case as
amended from time to time, together with the rules and regulations promulgated thereunder. 
 “Exchange
Property” has the meaning set forth in Section 5.01(e). 
 “Exchange Property Unit” has the
meaning set forth in Section 5.01(e). 
 “expiration date” has the meaning set forth in
Section 1.04(e). 
 “Ex-Date” means, with respect to any issuance of distribution on shares of the Common
Stock, the first date on which shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such issuance or distribution. 

“Fair Market Value” means the fair market value as determined in good faith by the Board of Directors (or an authorized
committee thereof), whose determination shall be conclusive and set forth in a Board Resolution. 
 “Fixed Settlement
Rate” has the meaning set forth in Section 4.01(iii). 
 “Fundamental Change” shall be deemed to
occur if any of the following occurs: 
 (i) the Common Stock or other common stock receivable upon settlement of Purchase
Contracts is neither listed for trading on a U.S. national securities exchange nor approved for trading on an established automated over-the-counter trading market in the United States; or 

(ii) the consummation of any acquisition (whether by means of a liquidation, share exchange, tender offer, consolidation,
recapitalization, reclassification, merger of the Company or any sale, lease or other transfer of the consolidated assets of the Company and its Subsidiaries) or a series of related transactions or events, in each case pursuant to which the Common
Stock is exchanged for, converted into, or constitutes solely the right to receive, consideration consisting of any combination of cash, other securities or any other property; 

  

- 5 - 

 
provided, however, that if at least 90% of such consideration (other than cash payments for fractional shares or pursuant to statutory appraisal rights) consists of common stock and
any associated rights traded on a U.S. national securities exchange (or which will be so traded when issued or exchanged in connection with such acquisition, transactions or events), such acquisition, transactions or events shall not be deemed to be
a “fundamental change” pursuant to this clause (ii). 
 “Fundamental Change Early Settlement Date”
has the meaning set forth in Section 5.02(a). 
 “Fundamental Change Early Settlement Rate” has the
meaning set forth in Section 5.02(c). 
 “Fundamental Change Early Settlement Right” has the meaning set
forth in Section 5.02(a). 
 “Global Note” means a Global Note, as defined in the Indenture, that shall
evidence the number of Separate Notes specified therein. 
 “Global Purchase Contract” means a Purchase
Contract in global form that (i) shall evidence the number of Separate Purchase Contracts specified therein, (ii) shall be registered on the books and records of the Purchase Contract Agent in the name of the Depositary or its nominee and
(iii) shall be held by the Purchase Contract Agent as custodian for the Depositary. 
 “Global Security”
means a Global Unit, a Global Purchase Contract or a Global Note, as applicable. 
 “Global Unit” means a Unit
in global form that (i) shall evidence the number of Units specified therein, (ii) shall be registered on the books and records of the Purchase Contract Agent in the name of the Depositary or its nominee and (iii) shall be held by the
Purchase Contract Agent as custodian for the Depositary. 
 “Holder” means, with respect to a Unit or Purchase
Contract, the Person in whose name the Unit or Purchase Contract, as the case may be, is registered in the Security Register, and with respect to a Note, the Person in whose name the Note is registered as provided for in the Indenture;
provided, however, that in determining whether the Holders of the requisite number of Units or Purchase Contracts, as the case may be, have voted on any matter, then for the purpose of such determination only (and not for any other
purpose hereunder), if the Units or Purchase Contracts, as the case may be, remain in the form of one or more Global Securities and if the Depositary that is the registered holder of such Global Security has sent an omnibus proxy assigning voting
rights to the Depositary Participants to whose accounts the Units or Purchase Contracts, as the case may be, are credited on the related record date, the term “Holder” shall mean such Depositary Participant acting at the direction of the
Beneficial Owners. 
 “Indenture” means the Indenture, dated as of April 17, 2002, between the Company and
the Trustee (including any provisions of the TIA that are deemed incorporated therein), as supplemented by the Sixteenth Supplemental Indenture, dated as of July 16, 2012, pursuant to which the Notes will be issued. 

  

- 6 - 

 “Issue Date” means July 16, 2012. 

“Issuer Order” or “Issuer Request” means a written order or request signed in the name of the Company by its
Chairman of the Board, its President or one of its Vice Presidents, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Purchase Contract Agent or the Trustee. 

“Mandatory Settlement Date” means July 15, 2015. 

“Market Disruption Event” means (i) a failure by the securities exchange or other market referenced in the
definition of Trading Day to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for the Common Stock of an aggregate one-half hour of
suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Common Stock or in any options, contracts or futures contracts relating to the Common Stock.

 “Maximum Settlement Rate” means 8.6207, subject to adjustment as provided herein. 

“Minimum Settlement Rate” means 7.0373, subject to adjustment as provided herein. 

“Notes” means the series of notes designated as the 6.00% Senior Amortizing Notes due July 15, 2015 to be issued by
the Company under the Indenture, and “Note” means each note of such series having an initial principal amount of $5.1086. 
 “Notice Date” has the meaning set forth in Section 4.05(b)(ii). 
 “NYSE” means the New York Stock Exchange, Inc. 

“Officers’ Certificate” means a certificate signed by any two of the following: a Chairman of the Board, a Chief
Executive Officer, a President, a Vice President, a Treasurer, an Assistant Treasurer, a Secretary or an Assistant Secretary of the Company, or any other officer or officers of the Company designated in a writing by or pursuant to authority of the
Board of Directors and delivered to the Purchase Contract Agent and Trustee from time to time. 
 “Opinion of
Counsel” means a written opinion of counsel, who may be counsel to the Company (and who may be an employee of the Company), and who shall be reasonably acceptable to the Purchase Contract Agent or Trustee, as applicable. An opinion of
counsel may rely on certificates as to matters of fact. 
 “Outstanding Purchase Contracts” means, as of the
date of determination, all Purchase Contracts theretofore executed, authenticated on behalf of the Holder and delivered under this Agreement (including, for the avoidance of doubt, Purchase Contracts held as a component of Units and Separate
Purchase Contracts), except: 
 (i) Purchase Contracts theretofore cancelled by the Purchase Contract Agent or delivered to the
Purchase Contract Agent for cancellation or deemed cancelled pursuant to the provisions of this Agreement; and 

  

- 7 - 

 (ii) Purchase Contracts in exchange for or in lieu of which other Purchase Contracts have
been executed, authenticated on behalf of the Holder and delivered pursuant to this Agreement, other than any such Purchase Contract in respect of which there shall have been presented to the Purchase Contract Agent proof satisfactory to it that
such Purchase Contract is held by a “protected purchaser” (as such term is defined in Section 8-303 of the Uniform Commercial Code of New York as then in effect) in whose hands the Purchase Contracts are valid obligations of the
Company; provided, however, that in determining whether the Holders of the requisite number of the Purchase Contracts have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Purchase Contracts
owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding Purchase Contracts, except that, in determining whether the Purchase Contract Agent shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Purchase Contracts that a Responsible Officer of the Purchase Contract Agent actually knows to be so owned shall be so disregarded. 

“Participant” has the meaning set for in Section 2.03(a). 

“Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association,
joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof or any other entity of whatever nature. 

“Purchase Contract” means the contract obligating the Company to deliver shares of Common Stock on the terms and subject
to the conditions set forth herein. 
 “Purchase Contract Agent” means the Person named as the “Purchase
Contract Agent” in the first paragraph of this Agreement until a successor Purchase Contract Agent shall have become such pursuant to the applicable provisions of this Agreement, and thereafter “Purchase Contract Agent” shall mean
such Person. 
 “Purchase Contract Settlement Fund” has the meaning set forth in Section 4.03(a).

 “Reference Price” means $2.90, subject to adjustment as provided herein. 

“Reorganization Event” has the meaning set forth in Section 5.01(e). 

“Repurchase Date” has the meaning set forth in the Indenture. 

“Repurchase Price” has the meaning set forth in the Indenture. 

“Repurchase Right” has the meaning set forth in the Indenture. 

“Responsible Officer” means, with respect to the Purchase Contract Agent, any officer of the Purchase Contract Agent
assigned by the Purchase Contract Agent to administer this Agreement. 
 “Scheduled Trading Day” means a day
that is scheduled to be a Trading Day on the primary U.S. national securities exchange or market on which the Common Stock is listed or admitted for trading; provided, however, that if the Common Stock is not so listed or admitted for
trading, then “Scheduled Trading Day” means a Business Day. 

  

- 8 - 

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

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended, and any statute successor thereto, in
each case as amended from time to time, and the rules and regulations promulgated thereunder. 
 “Security”
means a Unit, a Purchase Contract or a Note, as applicable. 
 “Security Register” and “Security
Registrar” have the respective meanings set forth in Section 3.05. 
 “Separate Note” has the
meaning set forth in Section 2.03(a). 
 “Separate Purchase Contract” has the meaning set forth in
Section 2.03(a). 
 “Settlement Date” means any Fundamental Change Early Settlement Date, Early Settlement
Date, Early Mandatory Settlement Date, or Mandatory Settlement Date. 
 “Settlement Rate” has the meaning set
forth in Section 4.01. 
 “Spin-Off” means a dividend or other distribution to all or substantially all
holders of Common Stock consisting of Capital Stock of, or similar equity interests in, or relating to a Subsidiary or other business unit of the Company, which Capital Stock or equity interests are, or will be, immediately following such Spin-Off,
listed on a national or regional securities exchange. 
 “Stated Amount” means $25.00 per Unit. 

“Stock Price” has the meaning set forth in Section 5.02(c). 

“Subsidiary” means, with respect to any Person, (i) any corporation, association or other business entity of which
more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof) and (ii) any partnership (a) the sole general partner or managing general partner of which is such Person or a Subsidiary of such
Person or (b) the only general partners of which are such Person or one or more Subsidiaries of such Person (or any combination thereof). 
 “Tender Offer Expiration Date” has the meaning set forth in Section 5.01(a)(vi). 
 “Tender Offer Expiration Time” has the meaning set forth in Section 5.01(a)(vi). 

  

- 9 - 

 “Threshold Appreciation Price” means $3.55, subject to adjustment as
provided herein. 
 “TIA” means the Trust Indenture Act of 1939, as amended from time to time. 

“Trading Day” means a day on which (i) trading in the Common Stock generally occurs; (ii) there is no Market
Disruption Event; and (iii) a Closing Price per share of the Common Stock is provided on the NYSE or, if the Common Stock is not then listed on the NYSE, on the principal other U.S. national or regional securities exchange on which the Common
Stock is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Stock is then traded. 

“Trustee” means U.S. Bank National Association, as trustee under the Indenture, or any successor thereto. 

“Underwriters” has the meaning set forth in the Underwriting Agreement. 

“Underwriting Agreement” means the Underwriting Agreement, dated as of July 10, 2012, between the Company and the
several underwriters named therein relating to the Units. 
 “Unit” means the collective rights of a Holder of
a unit consisting of one Purchase Contract and one Note prior to separation pursuant Section 2.03 or subsequent to recreation pursuant to Section 2.04. 
 “Vice President” means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president.” 

Section 1.02 Compliance Certificates and Opinions. 

Except as otherwise expressly provided by this Agreement, upon any application or request by the Company to the Purchase Contract Agent
or Trustee to take any action in accordance with any provision of this Agreement, the Company shall furnish to the Purchase Contract Agent or Trustee, as applicable, an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Agreement relating to the proposed action have been complied with and, if requested by the Purchase Contract Agent or Trustee, as applicable, an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Agreement relating to such particular
application or request, no additional certificate or opinion need be furnished. 
 Every Officers’ Certificate or opinion
with respect to compliance with a condition or covenant provided for in this Agreement shall include: 
 (i) a
statement that each individual signing such Officers’ Certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 

  

- 10 - 

 (ii) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such Officers’ Certificate or opinion are based; 
 (iii) a statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to enable such individual to express an informed opinion as to whether
or not such covenant or condition has been complied with; and 
 (iv) a statement as to whether, in the opinion
of each such individual, such condition or covenant has been complied with. 
 Section 1.03 Form of Documents
Delivered. 
 In any case where several matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect
to the matters upon which his certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such factual matters is in the possession of the Company unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous. 
 Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other instruments under this Agreement, they may, but need not, be consolidated and form one instrument. 

Section 1.04 Acts of Holders; Record Dates. 
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Agreement to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are
delivered to the Purchase Contract Agent and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Agreement and (subject to
Section 7.01) conclusive in favor of the Purchase Contract Agent and the Company, if made in the manner provided in this Section. 

  

- 11 - 

 (b) The fact and date of the execution by any Person of any such instrument or writing may
be proved in any manner which the Purchase Contract Agent deems sufficient. 
 (c) The ownership of Purchase Contracts shall be
proved by the Security Registrar upon review of the Security Register. 
 (d) Any request, demand, authorization, direction,
notice, consent, waiver or other Act of the Holder of any Purchase Contract shall bind every future Holder of the same Purchase Contract and the Holder of such Purchase Contract issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Purchase Contract Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Purchase Contract. 

(e) The Company may set any date as a record date for the purpose of determining the Holders of Outstanding Purchase Contracts entitled
to give, make or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Agreement to be given, made or taken by Holders of Purchase Contracts. If any record date is set pursuant to
this paragraph, the Holders of the Outstanding Purchase Contracts on such record date, and no other Holders, shall be entitled to take the relevant action with respect to the Purchase Contracts, whether or not such Holders remain Holders after such
record date; provided, however, that no such action shall be effective hereunder unless taken prior to or on the applicable expiration date by Holders of the requisite number of Outstanding Purchase Contracts on such record date.
Nothing contained in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be cancelled and be of no effect), and nothing contained in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite number of Outstanding Purchase Contracts
on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable expiration date to be
given to the Purchase Contract Agent in writing and to each Holder of Purchase Contracts in the manner set forth in Section 1.06. 
 With respect to any record date set pursuant to this Section, the Company may designate any date as the “expiration date” and from time to time may change the expiration date to any
earlier or later day; provided, however, that no such change shall be effective unless notice of the proposed new expiration date is given to the Purchase Contract Agent in writing, and to each Holder of Purchase Contracts in the
manner set forth in Section 1.06, prior to or on the existing expiration date. If an expiration date is not designated with respect to any record date set pursuant to this Section, the Company shall be deemed to have initially designated the
180th day after such record date as the expiration date with respect thereto, subject to its right to change the expiration date as provided in this paragraph. Notwithstanding anything to the contrary in the foregoing, no expiration date shall be
later than the 180th day after the applicable record date. 

  

- 12 - 

 Section 1.05 Notices. 

Any notice or communication is duly given if in writing and delivered in Person or mailed by first-class mail (registered or certified,
return receipt requested), telecopier (with receipt confirmed) or overnight courier guaranteeing next day delivery to the others’ address; provided, however, that notice shall be deemed given to the Purchase Contract Agent or
Trustee, as applicable, only upon receipt thereof: 
 If to the Purchase Contract Agent or Trustee: 

U.S. Bank National Association 
 Corporate Trust Services 
 1349 West Peachtree St., Ste. 1050

 Atlanta, GA 30309 
 Fax: 404-898-8844 
 with a copy to: 

Jones Day 
 1420 Peachtree Street, N.E. 
 Suite 800 

Atlanta, GA 30309-3053 
 Fax: 404-581-8330 
 Attention: Ralph F. MacDonald III, Esq.

 If to the Company: 
 Beazer Homes USA, Inc. 
 1000 Abernathy Road 

Suite 260 
 Atlanta, Georgia 30328 
 Fax: 770-481-7364 

Attention: Kenneth F. Khoury 
 with a copy to: 
 King & Spalding LLP 

1180 Peachtree Street, N.E. 
 Atlanta, GA 30309 
 Fax: 404-572-5133 

Attention: William Calvin Smith, Esq. 
 Section 1.06 Notice to Holders; Waiver. 
 Where this Agreement
provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at its address as it
appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed 

  

- 13 - 

 
for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Where this Agreement provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Purchase Contract Agent, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give
such notice by mail, then such notification as shall be made with the written approval of the Purchase Contract Agent shall constitute a sufficient notification for every purpose hereunder. 

Section 1.07 Effect of Headings and Table of Contents. 

The Article and Section headings herein and in the Table of Contents are for convenience only and shall not affect the construction
hereof. 
 Section 1.08 Successors and Assigns. 

All covenants and agreements in this Agreement by the Company and the Purchase Contract Agent shall bind their respective successors and
assigns, whether so expressed or not. 
 Section 1.09 Separability Clause. 

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

Section 1.10 Benefits of Agreement. 
 Nothing contained in this Agreement or in the Purchase Contracts, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and, to the extent provided
hereby, the Holders, any benefits or any legal or equitable right, remedy or claim under this Agreement. The Holders from time to time shall be beneficiaries of this Agreement and shall be bound by all of the terms and conditions hereof and of the
Purchase Contracts by their acceptance of delivery of such Purchase Contracts. 
 Section 1.11 Governing Law.

 This Agreement, the Units and the Purchase Contracts, and any claim, controversy or dispute arising under or related to
this Agreement, the Units or the Purchase Contracts shall be governed by, and construed in accordance with, the laws of the State of New York (without regard to the conflicts of law principles that would result in the application of law other than
the law of the State of New York). 

  

- 14 - 

 Section 1.12 Conflicts with Indenture. 

To the extent that any provision of this Purchase Contract Agreement relating to or affecting the Notes conflicts with or is inconsistent
with the Indenture, the Indenture shall govern. 
 Section 1.13 Legal Holidays. 

In any case where any Settlement Date shall not be a Business Day, notwithstanding any other provision of this Agreement or the Purchase
Contracts, the settlement of the Purchase Contracts shall not be effected on such date, but instead shall be effected on the next succeeding Business Day with the same force and effect as if made on such Settlement Date, and no interest or other
amounts shall accrue or be payable by the Company or to any Holder in respect of such delay, except that, if such next succeeding Business Day is in the next succeeding calendar year, such settlement shall be made on the immediately preceding
Business Day with the same force and effect as if made on such Settlement Date. 
 Section 1.14 Counterparts.

 This Agreement may be executed in any number of counterparts by the parties hereto on separate counterparts, each of
which, when so executed and delivered, shall be deemed an original, but all such counterparts shall together constitute one and the same instrument. 
 Section 1.15 Inspection of Agreement. 
 A copy of this Agreement
shall be available at all reasonable times during normal business hours at the Corporate Trust Office for inspection by any Holder or Beneficial Owner. 
 Section 1.16 Waiver of Jury Trial. 
 EACH OF THE COMPANY, THE
PURCHASE CONTRACT AGENT AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 
 Section 1.17 Force Majeure. 

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

  

- 15 - 

 Section 1.18 Calculations. 

The solicitation of any necessary bids and the performance of any calculations to be made hereunder shall be the sole obligation of the
Company. These calculations include, but are not limited to, determination of the applicable Settlement Rate, the Fixed Settlement Rates, the Early Settlement Rate, the Early Mandatory Settlement Rate, the Fundamental Change Early Settlement Rate,
the Applicable Market Value, the Closing Price, the Current Market Price, the Reference Price and the Threshold Appreciation Price as the case may be. All calculations made by the Company or its agent hereunder shall be made in good faith and,
absent manifest error, be final and binding on the Purchase Contract Agent, the Trustee, each Paying Agent and on the Holders. For any calculations to be made by the Company or its agent hereunder, the Company shall provide a schedule of such
calculations to the Purchase Contract Agent and the Trustee, and each of the Purchase Contract Agent and the Trustee shall be entitled to conclusively rely upon the accuracy of the calculations by the Company or its agent without independent
verification, shall have no liability with respect thereto and shall have no liability to the Holders for any loss any of them may incur in connection with no independent verification having been done. 

Section 1.19 UCC. 
 Each Purchase Contract (whether or not included in a Unit) is a security governed by Article 8 of the Uniform Commercial Code as in effect in the State of New York on the date hereof. 

ARTICLE II 

UNIT AND PURCHASE CONTRACT FORMS 
 Section 2.01 Forms of Units and Purchase Contracts Generally. 
 The
Units and Purchase Contracts shall be in substantially the forms set forth in Exhibit A and Exhibit B hereto, respectively, which shall be incorporated in and made a part of this Purchase Contract Agreement, with such letters, numbers
or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as may be required by the rules of any securities exchange on which the Units or Purchase Contracts, as the case may be, are
(or may in the future be) listed or any depositary therefor, or as may, consistently herewith, be determined by the officers of the Company executing such Units and Purchase Contracts, as the case may be, as evidenced by their execution thereof.

 The Units and Purchase Contracts shall be issuable only in registered form and only in denominations of a single Unit or
Purchase Contract, as the case may be, and any integral multiple thereof. 
 Definitive Securities shall be printed,
lithographed or engraved with steel engraved borders or may be produced in any other manner, all as determined by the officers of the Company executing the Units or Purchase Contracts, as the case may be, evidenced by such Definitive Securities,
consistent with the provisions of this Agreement, as evidenced by their execution thereof. 

  

- 16 - 

 Every Global Unit and Global Purchase Contract executed, authenticated on behalf of the
Holders and delivered hereunder shall bear a legend in substantially the following form: 
 “THIS SECURITY IS A GLOBAL
[UNIT / PURCHASE CONTRACT] WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS GLOBAL [UNIT / PURCHASE CONTRACT] IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
 UNLESS THIS GLOBAL [UNIT / PURCHASE
CONTRACT] IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS 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 SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.” 
 Section
2.02 Form of Certificate of Authentication. 
 The form of certificate of authentication of the Units and Purchase
Contracts shall be in substantially the form set forth in the form of Unit or form of Purchase Contract, respectively, attached hereto. 
 Section 2.03 Global Securities; Separation of Units. 
 (a) On any
Business Day during the period beginning on, and including, the Business Day immediately succeeding the Issue Date to, but excluding, the third Business Day immediately preceding the Mandatory Settlement Date or any Early Mandatory Settlement Date,
a Holder or Beneficial Owner of a Unit may separate such Unit into its constituent Purchase Contract and Note (each such separated Purchase Contract and separated Note, a “Separate Purchase Contract” and “Separate
Note,” respectively), which will thereafter trade under their respective CUSIP numbers (07556Q 121 and 07556Q 808), and that Unit will cease to exist. Beneficial interests in a Unit, and after separation, the Separate Purchase Contract and
Separate Note, will be shown on and transfers will be effected through direct or indirect participants in DTC. Beneficial interests in Units, Separate Purchase Contracts and Separate Notes will be evidenced by Global Units, Global Purchase Contracts
and Global Notes, respectively. In order 

  

- 17 - 

 
to separate a Unit into its component parts, a Beneficial Owner must deliver written instruction to the broker or other direct or indirect participant (the “Participant”) through
which it holds an interest in such Unit to notify DTC through DTC’s Deposit/Withdrawal at Custodian System (the “DWAC System”) of such Beneficial Owner’s election to separate such Unit, following which the Purchase
Contract Agent or Trustee, as applicable, shall register (i) a decrease in the Global Unit and the amount of Purchase Contracts and Notes attached to the Global Unit as Attachments 3 and 4, respectively, as set forth in Schedule A to each such
attachment, and (ii) a corresponding increase in the amount of the Global Purchase Contract and Global Note. If, however, such Unit is in the form of a Definitive Security in accordance with Section 3.09, the Holder thereof must deliver to
the Purchase Contract Agent such Unit, together with a separation notice, in the form set forth in Attachment 1 to the form of Unit attached hereto as Exhibit A. Upon the receipt of such separation notice, the Company shall promptly cause
delivery, in accordance with the delivery instructions set forth in such separation notice, of one Separate Purchase Contract and one Separate Note for each such Unit. Separate Purchase Contracts and Separate Notes will be transferable independently
from each other. 
 (b) Holders which elect to separate the Note and related Purchase Contract in accordance with this
Section 2.03 shall be responsible for any fees or expenses payable in connection with such separation, and the Company shall not be responsible for any such fees or expenses. 

Each of the Purchase Contract Agent and the Trustee is authorized to act in accordance with any letter of representations executed by the
Company in favor of DTC. 
 Section 2.04 Recreation of Units. 

(a) On any Business Day during the period beginning on, and including, the Business Day immediately succeeding the Issue Date to, but
excluding, the third Business Day immediately preceding the Mandatory Settlement Date or any Early Mandatory Settlement Date, a Holder or Beneficial Owner of a Separate Purchase Contract and a Separate Note may recreate a Unit (which will thereafter
trade under the CUSIP number 07556Q 709 for the Units), and each such Separate Purchase Contract and Separate Note will cease to exist. In order to recreate a Separate Purchase Contract and Separate Note into a Unit, a Beneficial Owner must deliver
written instruction to the Participant through which it holds an interest in such Separate Purchase Contract and Separate Note to notify DTC through the DTC’s DWAC System of such Beneficial Owner’s election to recreate a Unit, following
which the Purchase Contract Agent or Trustee, as applicable, shall register (i) an increase in the Global Unit and the amount of Purchase Contracts and Notes attached to the Global Unit as Attachments 3 and 4, respectively, as set forth in
Schedule A to each such attachment, and (ii) a corresponding decrease in the amount of the Global Purchase Contract and Global Note. If, however, such Separate Purchase Contract and Separate Note are in the form of Definitive Securities, the
Holder thereof must deliver to the Purchase Contract Agent such Definitive Securities, together with a recreation notice, in the form set forth in Attachment 2 to the form of Unit attached hereto as Exhibit A. Upon the receipt of such
recreation notice, the Company shall promptly cause delivery, in accordance with the delivery instructions set forth in such recreation notice, of one Unit in definitive form for such Definitive Securities. 

  

- 18 - 

 (b) Holders that recreate Units in accordance with this Section 2.04 shall be
responsible for any fees or expenses payable in connection with such recreation, and the Company shall not be responsible for any such fees or expenses. 
 ARTICLE III 
 THE UNITS AND PURCHASE CONTRACTS 

Section 3.01 Amount and Denominations. 
 The aggregate number of Units and Separate Purchase Contracts evidenced by Equity-Linked Securities executed, authenticated on behalf of the Holders and delivered hereunder is limited in each case to
4,000,000 (or up to 4,600,000 to the extent the Underwriters fully exercise their over-allotment option to purchase additional Units pursuant to the Underwriting Agreement), except for Units and Separate Purchase Contracts executed, authenticated
and delivered upon registration of transfer of, in exchange for, or in lieu of, other Units and Separate Purchase Contracts pursuant to Section 3.04, Section 3.05, Section 3.10, Section 3.04 or Section 8.05. 

Equity-Linked Securities that are not in the form of Global Securities shall be issuable in denominations of one Equity-Linked Security
and integral multiples in excess thereof. 
 Section 3.02 Rights and Obligations Evidenced by the Equity-Linked
Securities. 
 Each Equity-Linked Security shall evidence the number of Units or Separate Purchase Contracts, as the
case may be, specified therein, with each such Unit or Separate Purchase Contract representing the rights and obligations of the Holder thereof and the Company under one Unit or one Separate Purchase Contract, respectively. 

Prior to the delivery of shares of Common Stock under each Purchase Contract (whether such Purchase Contract is held as a component of a
Unit or as a Separate Purchase Contract), such Purchase Contract shall not entitle the Holder thereof to any of the rights of a holder of Common Stock, including, without limitation, the right to vote or receive any dividends or other payments or to
consent or to receive notice as a shareholder in respect of the meetings of shareholders or for the election of directors for any other matter, or any other rights whatsoever as a shareholder of the Company. 

Section 3.03 Execution, Authentication, Delivery and Dating. 

Upon the execution and delivery of this Agreement, and at any time and from time to time thereafter, the Company may deliver
Equity-Linked Securities executed by the Company to the Purchase Contract Agent and Trustee for authentication on behalf of the Holders and delivery, together with an Issuer Order for authentication of such Equity-Linked Securities, and the Purchase
Contract Agent and Trustee in accordance with such Issuer Order shall authenticate on behalf of the Holders and deliver such Equity-Linked Securities. 

  

- 19 - 

 The Equity-Linked Securities shall be executed on behalf of the Company by any authorized
officer of the Company. The signature of any such officer on the Equity-Linked Securities may be manual or facsimile. 

Equity-Linked Securities bearing the manual or facsimile signature of an individual who was at any time the proper officer of the Company
shall bind the Company, notwithstanding that such individual has ceased to hold such offices prior to the authentication and delivery of such Equity-Linked Securities or did not hold such offices at the date of such Equity-Linked Securities.

 Each Equity-Linked Security shall be dated the date of its authentication. 

No Equity-Linked Security shall be entitled to any benefit under this Agreement or be valid or obligatory for any purpose unless there
appears on such Equity-Linked Security a certificate of authentication substantially in the form provided for herein executed by an authorized officer of the Purchase Contract Agent and Trustee by manual signature, and such certificate upon any
Equity-Linked Security shall be conclusive evidence, and the only evidence, that such Equity-Linked Security has been duly authenticated and delivered hereunder. 
 Section 3.04 Temporary Equity-Linked Securities. 
 Pending the
preparation of Definitive Equity-Linked Securities, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and Trustee shall authenticate on behalf of the Holders, and deliver, in lieu of
such Definitive Equity-Linked Securities, temporary Equity-Linked Securities that are in substantially the form set forth in Exhibit A or Exhibit B hereto, as the case may be, with such letters, numbers or other marks of identification
or designation and such legends or endorsements printed, lithographed or engraved thereon as may be required by the rules of any securities exchange on which the Units or Separate Purchase Contracts, as the case may be, are listed, or as may,
consistently herewith, be determined by the officers of the Company executing such Equity-Linked Securities, as evidenced by their execution of the Equity-Linked Securities. 
 If temporary Equity-Linked Securities are issued, the Company will cause Definitive Equity-Linked Securities to be prepared without unreasonable delay. After the preparation of Definitive Equity-Linked
Securities, the temporary Equity-Linked Securities shall be exchangeable for Definitive Equity-Linked Securities upon surrender of the temporary Equity-Linked Securities at the Corporate Trust Office, at the expense of the Company and without charge
to the Holder or the Purchase Contract Agent. Upon surrender for cancellation of any one or more temporary Equity-Linked Securities, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent
and Trustee shall authenticate on behalf of the Holder, and deliver in exchange therefor, one or more Definitive Equity-Linked Securities of like tenor and denominations and evidencing a like number of Units or Separate Purchase Contracts, as the
case may be, as the temporary Equity-Linked Security or Equity-Linked Securities so surrendered. Until so exchanged, the temporary Equity-Linked Securities shall in all respects evidence the same benefits and the same obligations with respect to the
Units or Separate Purchase Contracts, as the case may be, evidenced thereby as Definitive Equity-Linked Securities. 

  

- 20 - 

 Section 3.05 Registration; Registration of Transfer and Exchange. 

The Company shall cause to be kept at the Corporate Trust Office a register (the “Security Register”) in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Equity-Linked Securities and of transfers of Equity-Linked Securities. The Purchase Contract Agent is hereby initially appointed Security Registrar
(the “Security Registrar”) for the purpose of registration of Equity-Linked Securities and transfers of Equity-Linked Securities as provided herein. The Security Registrar shall record separately the registration and transfer of the
Equity-Linked Securities evidencing Units and Separate Purchase Contracts. 
 Upon surrender for registration of transfer of any
Equity-Linked Security at the Corporate Trust Office, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and Trustee shall authenticate on behalf of the designated transferee or
transferees, and deliver, in the name of the designated transferee or transferees, one or more new Equity-Linked Securities of any authorized denominations, of like tenor, and evidencing a like number of Units or Separate Purchase Contracts, as the
case may be. 
 At the option of the Holder, Equity-Linked Securities may be exchanged for other Equity-Linked Securities of any
authorized denominations and evidencing a like number of Units or Separate Purchase Contracts, as the case may be, upon surrender of the Equity-Linked Securities to be exchanged at the Corporate Trust Office. Whenever any Equity-Linked Securities
are so surrendered for exchange, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and Trustee shall authenticate on behalf of the Holder, and deliver the Equity-Linked Securities which
the Holder making the exchange is entitled to receive. 
 All Equity-Linked Securities issued upon any registration of transfer
or exchange of an Equity-Linked Security shall evidence the ownership of the same number of Units or Separate Purchase Contracts, as the case may be, and be entitled to the same benefits and subject to the same obligations, under this Agreement as
the Units or Separate Purchase Contracts, as the case may be, evidenced by the Equity-Linked Security surrendered upon such registration of transfer or exchange. 
 Every Equity-Linked Security presented or surrendered for registration of transfer or exchange shall (if so required by the Purchase Contract Agent) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Purchase Contract Agent duly executed by the Holder thereof, or its attorney duly authorized in writing. 
 No service charge shall be made for any registration of transfer or exchange of an Equity-Linked Security, but the Company may require payment from the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange of Equity-Linked Securities, other than any exchanges pursuant to Section 3.06 and Section 8.05 not involving any transfer. 

  

- 21 - 

 Notwithstanding anything to the contrary in the foregoing, the Company shall not be
obligated to execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to authenticate on behalf of the Holder or deliver any Equity-Linked Security in exchange for any other Equity-Linked Security
presented or surrendered for registration of transfer or for exchange on or after the Business Day immediately preceding the Settlement Date with respect to such Equity-Linked Security. In lieu of delivery of a new Equity-Linked Security, upon
satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer instructions from such Holder, the Purchase Contract Agent shall, if a Settlement Date with respect to such Equity-Linked
Security has occurred, deliver the shares of Common Stock deliverable in respect of the Purchase Contracts evidenced by such Equity-Linked Security (together with Separate Notes equal to the number of, and in the same form as, the Notes evidenced by
such Equity-Linked Security if such Equity-Linked Security is a Unit and if the Repurchase Right is not applicable or, if applicable, not exercised). 
 Section 3.06 Book-Entry Interests. 
 The Units, on original
issuance, will be issued in the form of one or more fully registered Global Units, to be delivered to the Depositary or its custodian by, or on behalf of, the Company. The Company hereby designates DTC as the initial Depositary. Such Global Units
shall initially be registered on the books and records of the Company in the name of Cede & Co., the nominee of DTC, and no Beneficial Owner will receive a Definitive Unit representing such Beneficial Owner’s interest in such Global
Unit, except as provided in Section 3.09. The Purchase Contract Agent shall enter into an agreement with the Depositary if so requested by the Company in writing. Unless and until definitive, fully registered Securities have been issued to
Beneficial Owners pursuant to Section 3.09: 
 (i) the provisions of this Section 3.06 shall be in full
force and effect; 
 (ii) the Company shall be entitled to deal with the Depositary for all purposes of this
Agreement (including receiving approvals, votes or consents hereunder) as the Holder of the Global Units and Global Purchase Contracts and shall have no obligation to the Beneficial Owners as such; 

(iii) to the extent that the provisions of this Section 3.06 conflict with any other provisions of this Agreement,
the provisions of this Section 3.06 shall control; and 
 (iv) the rights of the Beneficial Owners shall be
exercised only through the Depositary and shall be limited to those established by law and agreements between such Beneficial Owners and the Depositary or the Depositary Participants. 
 Section 3.07 Notices to Holders. 
 Whenever a notice or other
communication to the Holders is required to be given under this Agreement, the Company or the Company’s agent shall give such notices and communications to the Holders and, with respect to any Units or Purchase Contracts registered in the name
of the Depositary or the nominee of the Depositary, the Company or the Company’s agent shall, except as set forth herein, have no obligations to the Beneficial Owners. 

  

- 22 - 

 Section 3.08 Appointment of Successor Depositary. 

If the Depositary elects to discontinue its services as securities depositary with respect to the Units or Purchase Contracts, the
Company may, in its sole discretion, appoint a successor Depositary with respect to such Units or such Purchase Contracts, as the case may be. 
 Section 3.09 Definitive Securities. 
 If: 

(i) the Depositary is no longer a Clearing Agency or is unwilling or unable to continue its services as securities
depositary with respect to the Global Securities and a successor Depositary is not appointed within 90 days after such discontinuance pursuant to Section 3.08; 

(ii) at any time the Depositary ceases to be a Clearing Agency; or 

(iii) the Company elects, in its sole discretion, to allow some or all Global Units or Global Purchase Contracts to be
exchangeable for definitive securities in registered form, 
 then (x) Definitive Securities shall be prepared by the
Company with respect to such Global Securities and delivered to the Purchase Contract Agent and the Trustee, and (y) upon surrender of such Global Securities by the Depositary, accompanied by registration instructions, the Company shall cause
Definitive Securities to be executed, authenticated and delivered to Beneficial Owners in accordance with the instructions of the Depositary. The Company shall not be liable for any delay in delivery of such instructions and may conclusively rely
on, and shall be protected in relying on, such instructions. Each Definitive Security so delivered shall evidence Units or Purchase Contracts or Notes, as the case may be, of the same kind and tenor as the Global Security so surrendered in respect
thereof. Notwithstanding anything to the contrary in the foregoing, the exchange of Global Notes for Notes in definitive form shall be governed by the Indenture. 
 Section 3.10 Mutilated, Destroyed, Lost and Stolen Securities. 
 If
any mutilated Equity-Linked Security is surrendered to the Purchase Contract Agent, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and Trustee shall authenticate on behalf of the
Holder, and deliver in exchange therefor, a new Equity-Linked Security, evidencing the same number of Units or Separate Purchase Contracts, as the case may be, and bearing a security number not contemporaneously outstanding. 

If there shall be delivered to the Company, the Purchase Contract Agent and Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Equity-Linked Security, and (ii) such security or indemnity as may be reasonably required by them to hold each of them and any agent of any of them harmless, then, in the absence of notice to the Company, the
Purchase Contract Agent or Trustee that such Equity-Linked Security has been acquired by a protected purchaser, the Company shall execute and deliver to the Purchase Contract Agent and Trustee,

  

- 23 - 

 
and the Purchase Contract Agent and Trustee shall authenticate on behalf of the Holder, and deliver to the Holder, in lieu of any such destroyed, lost or stolen Equity-Linked Security, a new
Equity-Linked Security, evidencing the same number of Units or Separate Purchase Contracts, as the case may be, and bearing a security number not contemporaneously outstanding. 

Notwithstanding anything to the contrary in the foregoing, the Company shall not be obligated to execute and deliver to the Purchase
Contract Agent and Trustee, and the Purchase Contract Agent and Trustee shall not be obligated to authenticate on behalf of the Holder, and deliver to the Holder, an Equity-Linked Security on or after the Business Day immediately preceding the
Settlement Date with respect to such Equity-Linked Security. In lieu of delivery of a new Equity-Linked Security, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer
instructions from such Holder, the Purchase Contract Agent shall, if a Settlement Date with respect to such Equity-Linked Security has occurred, deliver or arrange for delivery of the shares of Common Stock deliverable in respect of the Purchase
Contracts evidenced by such Equity-Linked Security (together with Separate Notes equal to the number of, and in the same form as, the Notes evidenced by such Equity-Linked Security if such Equity-Linked Security is a Unit and if the Repurchase Right
is not applicable or, if applicable, not exercised). 
 Upon the issuance of any new Equity-Linked Security under this
Section 3.10, the Company and the Purchase Contract Agent may require the payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the
reasonable fees and expenses of the Purchase Contract Agent) connected therewith. 
 Every new Equity-Linked Security issued
pursuant to this Section 3.10 in lieu of any destroyed, lost or stolen Equity-Linked Security shall constitute an original additional contractual obligation of the Company and of the Holder in respect of the Unit or Separate Purchase Contract,
as the case may be, evidenced thereby, whether or not the destroyed, lost or stolen Equity-Linked Security shall be found at any time. Such new Equity-Linked Security (and the Units or Separate Purchase Contracts, as applicable, evidenced thereby)
shall be at any time enforceable by anyone, and shall be entitled to all the benefits and be subject to all the obligations of this Agreement equally and proportionately with any and all other Equity-Linked Securities delivered hereunder.

 The provisions of this Section 3.10 are exclusive and shall preclude, to the extent lawful, all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Equity-Linked Securities. 

Section 3.11 Persons Deemed Owners. 
 Prior to due presentment of an Equity-Linked Security for registration of transfer, the Company and the Purchase Contract Agent, and any agent of the Company or the Purchase Contract Agent, may treat the
Person in whose name such Equity-Linked Security is registered as the owner of the Unit or Purchase Contract, as the case may be, evidenced thereby, for the purpose of performance of the Units or Purchase Contracts, as applicable, evidenced by such
Equity-Linked Securities and for all other purposes whatsoever, and neither the Company nor the Purchase Contract Agent, nor any agent of the Company or the Purchase Contract Agent, shall be affected by notice to the contrary. 

  

- 24 - 

 Notwithstanding anything to the contrary in the foregoing, with respect to any Global Unit
or Global Purchase Contract, nothing contained herein shall prevent the Company, the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent from giving effect to any written certification, proxy or other authorization
furnished by the Depositary (or its nominee), as a Holder, with respect to such Global Unit or Global Purchase Contract or impair, as between such Depositary and the related Beneficial Owner, the operation of customary practices governing the
exercise of rights of the Depositary (or its nominee) as Holder of such Global Unit or Global Purchase Contract. 
 Section
3.12 Cancellation. 
 All Securities surrendered for separation or recreation and all Equity-Linked Securities
surrendered for settlement or upon the registration of transfer or exchange of an Equity-Linked Security shall, if surrendered to any Person other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent and, if not already
cancelled, be promptly cancelled by it; provided, however, that the Purchase Contract Agent shall deliver any Notes or Separate Notes so surrendered to it to the Trustee and Paying Agent (as defined in the Indenture) for disposition in
accordance with the provisions of the Indenture. In the case of a Unit or Units surrendered for settlement, subject to Section 4.05 hereof, the Company shall promptly execute and the Trustee shall promptly authenticate and deliver in accordance
with the terms of the Indenture to the Holder thereof a number of Separate Notes equal to the number of, and in the same form as, the Notes comprising part of the Units so surrendered. The Company may at any time deliver to the Purchase Contract
Agent for cancellation any Equity-Linked Securities previously executed, authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Equity-Linked Securities so delivered shall, upon an Issuer Order, be
promptly cancelled by the Purchase Contract Agent; provided, however, that if the Equity-Linked Securities so delivered are Units, the Purchase Contract Agent shall deliver the Notes comprising such Units to the Trustee and Paying
Agent (as defined in the Indenture) for disposition in accordance with the provisions of the Indenture. No Equity-Linked Securities shall be executed, authenticated on behalf of the Holder and delivered in lieu of or in exchange for any
Equity-Linked Securities cancelled as provided in this Section, except as expressly permitted by this Agreement. All cancelled Equity-Linked Securities held by the Purchase Contract Agent shall be disposed of in accordance with its customary
practices. 
 If the Company or any Affiliate of the Company shall acquire any Equity-Linked Security, such acquisition shall
not operate as a cancellation of such Equity-Linked Security unless and until such Equity-Linked Security is delivered to the Purchase Contract Agent for cancellation, in which case such Equity-Linked Security shall be accompanied by an Issuer Order
and cancelled in accordance with the immediately preceding paragraph. 

  

- 25 - 

 ARTICLE IV 
 SETTLEMENT OF THE PURCHASE CONTRACTS 
 Section 4.01 Settlement
Rate. 
 Each Purchase Contract obligates the Company to deliver, on the Mandatory Settlement Date, a number of shares
of Common Stock (subject to Section 4.06 and ARTICLE V) equal to the Settlement Rate as determined by the Company unless such Purchase Contract settles prior to the Mandatory Settlement Date. 

The “Settlement Rate” per Purchase Contract is equal to: 

(i) if the Applicable Market Value (as defined below) is equal to or greater than the Threshold Appreciation Price, a
number of shares of Common Stock equal to the Minimum Settlement Rate; 
 (ii) if the Applicable Market Value is
less than the Threshold Appreciation Price but greater than the Reference Price, a number of shares of Common Stock equal to a fraction whose numerator is the Stated Amount of such Purchase Contract and whose denominator is the Applicable Market
Value; and 
 (iii) if the Applicable Market Value is less than or equal to the Reference Price, a number of
shares of Common Stock equal to the Maximum Settlement Rate; 
 provided, however, that the Maximum Settlement
Rate, the Minimum Settlement Rate (each, a “Fixed Settlement Rate”) shall be subject to adjustment as provided in ARTICLE V and rounded upward or downward to the nearest 1/10,000th of a share. 

(iv) The Company shall give notice of the Settlement Rate to the Purchase Contract Agent and Holders no later than 2
Trading Days prior to the Mandatory Settlement Date. 
 Section 4.02 Representations and Agreements of Holders.

 Each Holder of an Equity-Linked Security by its acceptance thereof: 

(i) irrevocably authorizes the Purchase Contract Agent to enter into and perform this Agreement on its behalf as its
attorney-in-fact; 
 (ii) consents to the provisions hereof; 

(iii) agrees that it will treat each Purchase Contract in its entirety as a forward contract for the delivery of the
Common Stock, or other Exchange Property, on the Mandatory Settlement Date (or on any Fundamental Change Early Settlement Date, Early Settlement Date, or Early Mandatory Settlement Date), under the terms of which contract the Company will, at
settlement, deliver to the Holders the number of shares of Common Stock that such Holder is entitled to receive at that time pursuant to the terms of the Purchase Contracts; 

  

- 26 - 

 (iv) in the case of a Holder that holds a Unit, agrees, for United States
tax purposes, to treat (1) a Unit as an investment unit composed of two separate instruments, in accordance with its form and (2) the Notes as indebtedness; and 

(v) agrees to be bound by the terms and provisions thereof. 

Section 4.03 Delivery Upon Settlement of the Purchase Contracts. 

(a) On the applicable Settlement Date (or, with respect to an Early Settlement Date, on the date provided for in the first sentence of
Section 4.04(c)), the Company shall issue and deliver to the Purchase Contract Agent, for the benefit of the Holders of the Outstanding Purchase Contracts, the aggregate number of shares of Common Stock to which such Holders are entitled
hereunder, registered in the name of the Purchase Contract Agent (or its nominee) as custodian for the Holders (such shares of Common Stock, together with any dividends or distributions for which a record date and payment date for such dividend or
distribution have occurred after the due date for the delivery of the Common Stock, where such payment is made to the Purchase Contract Agent, the “Purchase Contract Settlement Fund”). 

(b) On or following the applicable Settlement Date, upon surrender of the Units or Separate Purchase Contracts by book entry transfer or
by delivery of any Units or Separate Purchase Contracts in definitive form to the Purchase Contract Agent with duly completed settlement instructions in the form attached thereto, the Purchase Contract Agent shall transfer the shares of Common Stock
underlying such Purchase Contracts, together with (i) cash in lieu of fractional shares as provided in Section 4.06, (ii) the Separate Note (in the case of the transfer or delivery of Units, but not in the case of settlement on the
Mandatory Settlement Date if such Separate Note also matures on the Mandatory Settlement Date) and (iii) any dividends or distributions with respect to such shares constituting part of the Purchase Contract Settlement Fund, but without any
interest thereon, to such Holder by book-entry transfer, or other appropriate procedures, in accordance with such instructions. 

(c) The shares of Common Stock underlying the Purchase Contracts shall be registered in the name of the Holder or the Holder’s
designee as specified in the settlement instructions provided by the Holder to the Purchase Contract Agent, and the Company will pay all stock transfer and similar taxes attributable to the delivery thereof, unless any such transfer or similar tax
is payable in respect of any registration of such shares in a name of a Person other than the Person in whose name the Security evidencing such Purchase Contract is registered, in which case the Company shall not be required to pay any such transfer
or similar tax and no such registration shall be made unless the Person requesting such registration has paid any such transfer or similar taxes required by reason of such registration in a name of a Person other than the Person in whose name the
Security evidencing such Purchase Contract is registered or has established to the satisfaction of the Company that such tax either has been paid or is not payable. 

  

- 27 - 

 In the event a Holder fails to effect surrender or delivery of its Units or Purchase
Contracts in accordance with the provisions hereof, the shares of Common Stock underlying such Purchase Contracts, and any distributions thereon, shall be held in the name of the Purchase Contract Agent or its nominee in trust for the benefit of
such Holder, until the earlier to occur of: 
 (i) the surrender of the relevant Units or Separate Purchase
Contracts for settlement in accordance with the provisions hereof or receipt by the Company and the Purchase Contract Agent from such Holder of satisfactory evidence that such Units or Separate Purchase Contracts have been destroyed, lost or stolen,
together with any reasonable indemnity that may be required by the Purchase Contract Agent and the Company; and 

(ii) the passage of two (2) years from the Settlement Date, following which the Purchase Contract Agent shall pay to
the Company such Holder’s shares of Common Stock and any distributions thereon; provided, however, that the Purchase Contract Agent, before making any such payment to the Company, may at the expense of the Company cause to be
published once in a newspaper of general circulation in the City of New York or mail to each such Holder notice that such property remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such
publication or mailing, any unclaimed balance of such property then remaining will be repaid to the Company. After payment to the Company, (A) Holders entitled to such property must look to the Company for payment as general creditors, unless
applicable abandoned property law designates another person, and (B) all liability of the Purchase Contract Agent with respect to such property shall cease. 
 Section 4.04 Early Settlement. 
 (a) Subject to and upon compliance
with the provisions of this Section 4.04, at any time during the period beginning on, and including, the Trading Day immediately following the Issue Dateto, but excluding, the third Trading Day immediately preceding the Mandatory Settlement
Date, a Holder may elect to settle its Purchase Contracts early, in whole or in part (an “Early Settlement”) at the Early Settlement Rate per Purchase Contract or Unit, as applicable. 

(b) A Holder’s right to receive Common Stock upon Early Settlement of any of its Purchase Contracts is subject to the following
conditions: 
 (i) delivery of a written and signed notice of election (an “Early Settlement
Notice”) in the form attached to the Purchase Contract to the Purchase Contract Agent electing Early Settlement of such Purchase Contract; 
 (ii) surrendering the relevant Definitive Security, if such Purchase Contract or the Unit that includes such Purchase Contract is in the form of a Definitive Security, to the Purchase Contract Agent at
the Corporate Trust Office duly endorsed for transfer to the Company or in blank with the form of Election to Settle Early on the reverse thereof duly completed, or if such Purchase Contract is represented by a Global Security, compliance with the
applicable procedures of the Depositary; and 

  

- 28 - 

 (iii) payment by such Holder of any transfer or similar taxes payable in
connection with the issuance of Common Stock to any Person other than such Holder pursuant to Section 4.04(c) below. 
 If
a Holder complies with the requirements set forth in clauses (i) through (iii) above earlier than the close of business on any Business Day, then that Business Day shall be considered the “Early Settlement Date.” If a
Holder complies with the requirements set forth in clauses (i) through (iii) above at or after 5:00 p.m., New York City time, on any Business Day or at any time on a day that is not a Business Day, then the next Business Day shall be
considered the “Early Settlement Date.” 
 (c) Upon surrender or book-entry transfer of such Purchase Contracts
or the related Units in accordance with Section 4.03, the Company shall cause a number of shares of Common Stock, per Purchase Contract or Unit, as applicable, equal to the Early Settlement Rate to be issued and delivered, together with payment
in lieu of any fraction of a share as provided in Section 4.06, as promptly as practicable, but no later than the third Business Day following the Early Settlement Date. Such shares shall be registered in the name of the Holder or the
Holder’s designee, and shall be delivered as specified on the applicable form of Election to Settle Early provided by the Holder to the Purchase Contract Agent. If any shares of Common Stock deliverable in respect of a Purchase Contract are to
be registered to a Person other than the Person in whose name the Security evidencing such Purchase Contract is registered, no such registration shall be made unless the Person requesting such registration has paid any transfer and other taxes
required by reason of such registration in a name other than that of the registered Holder of the certificate evidencing such Purchase Contract or has established to the satisfaction of the Company that such tax either has been paid or is not
payable. 
 (d) In the event that Early Settlement is effected with respect to Purchase Contracts that are a component of Units,
upon such Early Settlement the Company shall execute and the Trustee shall authenticate on behalf of the Holder and deliver to the Holder thereof, at the expense of the Company, a number of Separate Notes, in same form as the Notes comprising part
of the Units, equal to the number of Purchase Contracts as to which Early Settlement was effected. 
 (e) In the event that
Early Settlement is effected with respect to Purchase Contracts represented by less than all the Purchase Contracts evidenced by a Security, upon such Early Settlement the Company shall execute and the Purchase Contract Agent and Trustee shall
authenticate on behalf of the Holder and deliver to the Holder thereof, at the expense of the Company, one or more Securities evidencing the Purchase Contracts (and, if applicable, Amortizing Notes) as to which Early Settlement was not effected
(and, if applicable, Amortizing Notes). 
 Section 4.05 Early Mandatory Settlement at the Company’s Election.

 (a) The Company has the right to settle the Purchase Contracts early, in whole but not in part (the “Early
Mandatory Settlement Right”), on a date fixed by it (the “Early Mandatory Settlement Date”) at the Early Mandatory Settlement Rate. 

  

- 29 - 

 (b) If the Company elects to exercise its Early Mandatory Settlement Right, the Company will
provide the Purchase Contract Agent and the Holders of Units, Separate Purchase Contracts and Separate Notes with a notice of its election (the “Early Mandatory Settlement Notice”), issue a press release announcing its election and
post such press release on its website. The Early Mandatory Settlement Notice shall specify, among other things: 

(i) the Early Mandatory Settlement Rate; 

(ii) the Early Mandatory Settlement Date, which will be at least 5 but not more than 30 Business Days following the date
of the Company’s notice (the “Notice Date”); 
 (iii) whether Holders of Units and Separate
Notes will have the right to require the Company to repurchase their Amortizing Notes that are a component of the Units or are Separate Notes, as the case may be pursuant to and in accordance with the Indenture; 

(iv) if applicable, the Repurchase Price and Repurchase Date; 

(v) if applicable, the last date on which Holders may exercise their Repurchase Right; and 

(vi) if applicable, the procedures that Holders must follow to require the Company to repurchase their Notes (which
procedures shall be in accordance with the Indenture). 
 The Company will deliver the shares of Common Stock and any cash
payable for fractional shares to the Holders of the Purchase Contract on the Early Mandatory Settlement Date. 
 (c) In the
event that Early Mandatory Settlement is effected with respect to Purchase Contracts that are a component of Units, upon such Early Mandatory Settlement the Company shall execute and the Trustee shall authenticate on behalf of the Holder and deliver
to the Holder thereof, at the expense of the Company, Separate Notes in the same form and in the same number as the Notes comprising part of the Units; provided, however, that if the Repurchase Date occurs prior to the Early Mandatory
Settlement Date, Holders will surrender the Units on the Repurchase Date and the Company shall execute, and the Purchase Contract Agent and the Trustee shall authenticate, Separate Purchase Contracts in the same form and in the same number as the
Purchase Contracts comprising part of the Units, such Separate Purchase Contracts to be settled on the Early Mandatory Settlement Date. 
 Section 4.06 No Fractional Shares. 
 No fractional shares or scrip
certificates representing fractional shares of Common Stock shall be issued or delivered to Holders upon settlement of the Purchase Contracts. In lieu of any fractional shares of Common Stock that would otherwise be issuable upon settlement of any
Purchase Contracts, a Holder of a Security shall be entitled to receive an amount in cash equal to the fraction of a share of Common Stock, calculated on an aggregate basis in respect of the Purchase Contracts being settled, multiplied by the last
reported sale price of the Common Stock 

  

- 30 - 

 
on the Trading Day immediately preceding the applicable Settlement Date. The Company shall provide the Purchase Contract Agent from time to time with sufficient funds to permit the Purchase
Contract Agent to make all cash payments required by this Section 4.06 in a timely manner. 
 ARTICLE V 

ADJUSTMENTS 
 Section 5.01 Adjustments to the Fixed Settlement Rates. 
 (a) Each
Fixed Settlement Rate shall be subject to the following adjustments: 
 (i) Stock Dividends and
Distributions. If the Company issues Common Stock to all or substantially all of the holders of Common Stock as a dividend or other distribution, then each Fixed Settlement Rate in effect at 5:00 p.m., New York City time, on the date fixed for
determination of the holders of Common Stock entitled to receive such dividend or other distribution will be divided by a fraction: 
 (A) the numerator of which is the number of shares of Common Stock outstanding at 5:00 p.m., New York City time, on the date fixed for such determination, and 

(B) the denominator of which is the sum of the number of shares of Common Stock outstanding at 5:00 p.m., New York City
time, on the date fixed for such determination and the total number of shares of Common Stock constituting such dividend or other distribution. 
 Any adjustment made pursuant to this clause (i) will become effective immediately after 5:00 p.m., New York City time, on the date fixed for such determination. If any dividend or distribution
described in this clause (i) is declared but not so paid or made, each Fixed Settlement Rate shall be readjusted, effective as of the date the Board of Directors publicly announces its decision not to make such dividend or distribution, to such
Fixed Settlement Rate that would be in effect if such dividend or distribution had not been declared. For the purposes of this clause (i), the number of shares of Common Stock outstanding at 5:00 p.m., New York City time, on the date fixed for such
determination shall not include shares held in treasury by the Company but shall include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The Company shall not pay any dividend or make
any distribution on shares of Common Stock held in treasury by the Company. 
 (ii) Issuance of Stock Purchase
Rights. If the Company issues to all or substantially all holders of Common Stock rights or warrants (other than rights or warrants issued pursuant to a dividend reinvestment plan or share purchase plan or other similar plans), entitling such
holders, for a period of up to 45 calendar days from the date of issuance of such rights or warrants, to subscribe for or purchase shares of Common Stock at a price per share less than the Current Market Price per share, then each Fixed Settlement
Rate in effect at 5:00 p.m., New York City time, on the date fixed for determination of the holders of Common Stock entitled to receive such rights or warrants will be increased by multiplying such Fixed Settlement Rate by a fraction: 

  

- 31 - 

 (A) the numerator of which is the sum of (x) the number of shares of
Common Stock outstanding at 5:00 p.m., New York City time, on the date fixed for such determination and (y) the number of shares of Common Stock issuable pursuant to such rights or warrants, and 

(B) the denominator of which is the sum of (x) the number of shares of Common Stock outstanding at 5:00 p.m., New
York City time, on the date fixed for such determination and (y) the number of shares of Common Stock equal to the quotient of the aggregate offering price payable to exercise such rights or warrants divided by the Current Market Price per
share of Common Stock. 
 Any adjustment made pursuant to this clause (ii) will become effective immediately after 5:00
p.m., New York City time, on the date fixed for such determination. In the event that such rights or warrants described in this clause (ii) are not so issued, each Fixed Settlement Rate shall be readjusted, effective as of the date the Board of
Directors publicly announces its decision not to issue such rights or warrants, to such Fixed Settlement Rate that would then be in effect if such issuance had not been declared. To the extent that such rights or warrants are not exercised prior to
their expiration or shares of Common Stock are otherwise not delivered pursuant to such rights or warrants upon the exercise of such rights or warrants, each Fixed Settlement Rate shall be readjusted to such Fixed Settlement Rate that would then be
in effect had the adjustment made upon the issuance of such rights or warrants been made on the basis of the delivery of only the number of shares of Common Stock actually delivered. In determining the aggregate offering price payable to exercise
such rights or warrants, there shall be taken into account any consideration received for such rights or warrants and any consideration given to exercise such rights or warrants (the value of which consideration, if other than cash, to be determined
by the Board of Directors in a Board Resolution, whose determination shall be conclusive). For the purposes of this clause (ii), the number of shares of Common Stock at the time outstanding shall not include shares held in treasury by the Company
but shall include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The Company shall not issue any such rights or warrants in respect of shares of Common Stock held in treasury by the
Company. 
 (iii) Subdivisions and Combinations of the Common Stock. If outstanding shares of Common Stock
shall be subdivided into a greater number of shares of Common Stock or combined into a lesser number of shares of Common Stock, then each Fixed Settlement Rate in effect at 5:00 p.m., New York City time, on the effective date of such subdivision or
combination shall be multiplied by a fraction: 
 (A) the numerator of which is the number of shares of Common
Stock that would be outstanding immediately after, and solely as a result of, such subdivision or combination, and 
 (B) the denominator of which is the number of shares of Common Stock outstanding immediately prior to such subdivision or combination. 

  

- 32 - 

 Any adjustment made pursuant to this clause (iii) shall become effective immediately
after 5:00 p.m., New York City time, on the effective date of such subdivision or combination. 
 (iv) Debt or
Asset Distribution. (A) If the Company distributes to all or substantially all holders of Common Stock evidences of its indebtedness, shares of Capital Stock, securities, cash or other assets (excluding (1) any dividend or distribution
covered by Section 5.01(a)(i), (2) any rights or warrants covered by Section 5.01(a)(ii), (3) any dividend or distribution covered by Section 5.01(a)(v) and (4) any Spin-Off to which the provisions set forth in
Section 5.01(a)(iv)(B) apply), then each Fixed Settlement Rate in effect at 5:00 p.m., New York City time, on the date fixed for the determination of holders of Common Stock entitled to receive such distribution will be multiplied by a
fraction: 
 1. the numerator of which is the Current Market Price per share of Common Stock, and 

2. the denominator of which is the Current Market Price per share of Common Stock minus the Fair Market Value, on such
date fixed for determination, of the portion of the evidences of indebtedness, shares of Capital Stock, securities, cash or other assets so distributed applicable to one share of Common Stock. 

Any adjustment made pursuant to this clause (A) shall become effective immediately after 5:00 p.m., New York City
time, on the date fixed for the determination of the holders of Common Stock entitled to receive such distribution. If such distribution is not so made, then each Fixed Settlement Rate shall be readjusted, effective as of the date the Board of
Directors publicly announces its decision not to pay such distribution, to such Fixed Settlement Rate that would then be in effect if such distribution had not been declared. 

(B) In the case of a Spin-Off, each Fixed Settlement Rate in effect at 5:00 p.m., New York City time, on the date fixed
for the determination of holders of Common Stock entitled to receive the Capital Stock or equity interests distributed pursuant to such Spin Off will be multiplied by a fraction: 

1. the numerator of which is the sum of (x) the Current Market Price per share of Common Stock and (y) the
average of the Closing Prices of such Capital Stock or equity interests (determined pursuant to the definition of “Closing Price” as if such Capital Stock or equity interests were Common Stock) so distributed applicable to one share of
Common Stock over the ten consecutive Trading Days commencing on, and including, the fifth Trading Day following the Ex-Date for such Spin-Off; and 
 2. the denominator of which is the Current Market Price per share of Common Stock. 

  

- 33 - 

 Any adjustment made pursuant to this clause (B) shall be deemed to have
become effective immediately after 5:00 p.m., New York City time, on the date fixed for the determination of the holders of Common Stock entitled to receive such Capital Stock or equity interests. If any Stock Purchase Contract is to be settled
after such time and on or before the tenth consecutive Trading Days commencing on, and including, the fifth Trading Day following the Ex-Date for such Spin-Off, then, notwithstanding anything to the contrary herein, the settlement of such Stock
Purchase Contract shall be delayed to the extent, and only to the extent, necessary to determine the Current Market Price, or the average of the Closing Prices of such Capital Stock or equity interests, for purposes of determining the adjustment for
such Spin-Off pursuant to this Section 5.01(a)(iv)(B). 
 If such Spin-Off is not so made, then each Fixed
Settlement Rate shall be readjusted, effective as of the date the Board of Directors publicly announces its decision not to effect such Spin-Off, to such Fixed Settlement Rate that would then be in effect if such Spin-Off had not been declared.

 (v) Cash Distributions. If the Company distributes an amount exclusively in cash to all or
substantially all holders of Common Stock (excluding (x) any cash that is distributed in a Reorganization Event to which Section 5.01(e) applies, (y) any dividend or distribution in connection with the liquidation, dissolution or
winding up of the Company and (z) any consideration payable as part of a tender or exchange offer to which Section 5.01(a)(vi) applies), then each Fixed Settlement Rate in effect at 5:00 p.m., New York City time, on the date fixed for
determination of the holders of Common Stock entitled to receive such distribution will be multiplied by a fraction: 
 (A) the numerator of which is the Current Market Price per share of Common Stock, and 
 (B) the denominator of which is the Current Market Price per share of Common Stock minus the amount per share of Common Stock of such distribution. 

Any adjustment made pursuant to this clause (v) shall become effective immediately after 5:00 p.m., New York City time, on the date
fixed for the determination of the holders of Common Stock entitled to receive such distribution. In the event that any distribution described in this clause (v) is not so made, each Fixed Settlement Rate shall be readjusted, effective as of
the date the Board of Directors publicly announces its decision not to pay such distribution, to such Fixed Settlement Rate that would then be in effect if such distribution had not been declared. 

(vi) Self Tender Offers and Exchange Offers. If the Company or any Subsidiary of the Company successfully completes
a tender or exchange offer pursuant to a Schedule TO or registration statement on Form S-4 for Common Stock (excluding any securities convertible or exchangeable for Common Stock), where the cash and the value of any other consideration included in
the payment per share of Common Stock exceeds 

  

- 34 - 

 
the Current Market Price per share of Common Stock, then each Fixed Settlement Rate in effect at 5:00 p.m., New York City time, on the date of expiration of the tender or exchange offer (the
“Tender Offer Expiration Date”) will be multiplied by a fraction: 
 (A) the numerator of which
shall be equal to the sum of: 
 a. the aggregate cash and Fair Market Value, on the Tender Offer Expiration
Date, of any other consideration paid or payable for all shares of Common Stock validly tendered or exchanged and not withdrawn as of the Tender Offer Expiration Date; and 

b. the product of (x) the Current Market Price per share of Common Stock and (y) the number of shares of Common
Stock outstanding immediately after the last time (the “Tender Offer Expiration Time”) tenders or exchanges may be made pursuant to such tender or exchange offer on the Tender Offer Expiration Date, after giving effect to the
purchase of all shares accepted for purchase or exchange in such tender or exchange offer, and 
 (B) the
denominator of which shall be equal to the product of (x) the Current Market Price per share of Common Stock and (y) the number of shares of Common Stock outstanding immediately prior to the Tender Offer Expiration Time and prior to giving
effect to the purchase of any shares accepted for purchase or exchange in such tender or exchange offer. 
 Any
adjustment made pursuant to this clause (vi) shall become effective immediately after 5:00 p.m., New York City time, on the seventh Trading Day immediately following the Tender Offer Expiration Date. In the event that the Company or one of its
Subsidiaries is obligated to purchase shares of Common Stock pursuant to any such tender offer or exchange offer, but the Company or such Subsidiary is permanently prevented by applicable law from effecting any such purchases, or all such purchases
are rescinded, then each Fixed Settlement Rate shall be readjusted to such Fixed Settlement Rate that would then be in effect if such tender offer or exchange offer had not been made. Except as set forth in the preceding sentence, for the avoidance
of doubt, if the application of this clause (vi) to any tender offer or exchange offer would result in a decrease in each Fixed Settlement Rate, no adjustment shall be made for such tender offer or exchange offer under this clause (vi).

 (vii) If the application of Section 5.01(a)(iv)(A) or Section 5.01(a)(v) with respect to a
distribution would result in the denominator referred to in Section 5.01(a)(iv)(A) or Section 5.01(a)(v) to be zero or negative, then, in lieu of an adjustment in each Fixed Settlement Rate, each Holder of Purchase Contracts shall be
entitled to receive upon settlement thereof, in addition to any consideration otherwise then due thereupon, the kind and amount of indebtedness, shares of Capital Stock, securities, cash or other assets that such Holder would have received pursuant
to such distribution if such Holder owned, as of the record date for determining the holders of Common Stock entitled to participate in such distribution, a number of shares of Common Stock equal to the Minimum Settlement Rate in effect on such
date. 

  

- 35 - 

 (viii) Rights Plans. To the extent that the Company has a rights plan
in effect with respect to the Common Stock on any Settlement Date for any Purchase Contracts, the Holders thereof shall be entitled to receive from the Company, in addition to the consideration otherwise then due, the rights under such rights plan,
unless, prior to such Settlement Date, the rights have separated from the Common Stock, in which case each Fixed Settlement Rate shall be adjusted at the time of separation of such rights as if the Company made a distribution to all holders of the
Common Stock that is subject to Section 5.01(a)(iv), subject to readjustment in the event of the expiration, termination or redemption of such rights. 
 (b) Adjustment for Tax Reasons. The Company may make such increases in each Fixed Settlement Rate, in addition to any other increases required by this Section 5.01, as the Company deems
advisable to avoid or diminish any income tax to holders of the Common Stock resulting from any dividend or distribution of shares of Common Stock (or issuance of rights or warrants to acquire shares of Common Stock) or from any event treated as
such for income tax purposes or for any other reasons; provided, however, that the same proportionate adjustment must be made to each Fixed Settlement Rate. 
 (c) Calculation of Adjustments; Adjustments to Threshold Appreciation Price, Reference Price and Stock Price. (i) All adjustments to each Fixed Settlement Rate shall be calculated to the
nearest 1/10,000th of a share of Common Stock. No adjustment in a Fixed Settlement Rate shall be required unless such adjustment would require an increase or decrease of at least one percent therein; provided, however, that any
adjustments which by reason of this Section 5.01(c)(i) are not required to be made shall be carried forward and taken into account in any subsequent adjustment; provided, further, that on the earlier of the Mandatory Settlement
Date, the Fundamental Change Early Settlement Date, the Early Mandatory Settlement Date and an Early Settlement Date, adjustments to each Fixed Settlement Rate shall be made with respect to any such adjustment carried forward and which has not been
taken into account before such date. 
 (i) Upon each adjustment to each Fixed Settlement Rates pursuant to
Section 5.01(a) or Section 5.01(b), each of the Threshold Appreciation Price and the Reference Price shall be divided by a fraction, the numerator of which shall be either Fixed Settlement Rate immediately after such adjustment pursuant to
Section 5.01(a) or Section 5.01(b), as applicable, and the denominator of which shall be such Fixed Settlement Rate immediately before such adjustment. 

(ii) If: 
 (A) the record date for a dividend or distribution on the Common Stock occurs after the end of the 20 consecutive Trading Day period used for calculating the Applicable Market Value and before the
Mandatory Settlement Date, Early Mandatory Settlement Date or Fundamental Change Early Settlement Date; and 

  

- 36 - 

 (B) such dividend or distribution would have resulted in an adjustment of
the number of shares of Common Stock issuable to the Holders had such record date occurred on or before the last Trading Day of such 20-Trading Day period, 
 then the Company shall deem the Holders to be holders of record of Common Stock for purposes of that dividend or distribution. In this case, the Holders would receive the dividend or distribution on
Common Stock together with the number of shares of Common Stock issuable upon the Mandatory Settlement Date, the Early Mandatory Settlement Date or Fundamental Change Early Settlement Date, as applicable. 

(iii) If an adjustment is made to the Fixed Settlement Rates pursuant to Section 5.01(a) or Section 5.01(b),
then an adjustment shall be made to each Stock Price set forth the first column of the table included in Section 5.02(e) by multiplying such Stock Price by a fraction, the numerator of which is the Minimum Settlement Rate immediately prior to
such adjustment and the denominator of which is the Minimum Settlement Rate immediately after such adjustment. Each of the Fundamental Change Early Settlement Rates in the table included in Section 5.02(e) will be subject to adjustment in the
same manner as each Fixed Settlement Rate as set forth in this Section 5.01. 
 (iv) Notwithstanding
anything herein to the contrary, no adjustment to the Fixed Settlement Rates (or, for the avoidance of doubt, any corresponding adjustment to the Reference Price or Threshold Reference Price pursuant to Section 5.01(c)(i)) shall be made if
Holders may participate in the transaction that would otherwise give rise to an adjustment. In addition, the Fixed Settlement Rates shall not be adjusted: 
 (A) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the
investment of additional optional amounts in shares of Common Stock under any plan; 
 (B) upon the issuance of
any shares of Common Stock or rights or warrants to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries; 

(C) upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or
convertible security outstanding as of the Issue Date; or 
 (D) for a change in the par value or no par value of
the Common Stock. 
 (d) Notice of Adjustment. Whenever the Fixed Settlement Rates are to be adjusted, the Company shall:

 (i) compute such adjusted Fixed Settlement Rates (and any corresponding adjustment to the Fundamental Change
Settlement Rates, the Stock Prices, the Reference Price and the Threshold Appreciation Price) and prepare and transmit to the Purchase Contract Agent an Officers’ Certificate, and, within five Business Days after such

  

- 37 - 

 
adjustment, provide a statement to Holders, in each case setting forth such adjusted Fixed Settlement Rates, Fundamental Change Settlement Rates, Stock Prices, Reference Price and Threshold
Appreciation Price, the method of calculation thereof in reasonable detail and the facts requiring such adjustment and upon which such adjustment is based; and 
 (ii) within five Business Days following such adjustment, provide, or cause to be provided, a written notice to the Holders of the occurrence of such event. 

(e) Reorganization Events. In the event of: 

(i) any consolidation or merger of the Company with or into another Person (other than a merger or consolidation in which
the Company is the continuing corporation and in which the Common Stock outstanding immediately prior to the merger or consolidation is not exchanged for cash, securities or other property of the Company or another Person); 

(ii) any sale, transfer, lease or conveyance to another Person of all or substantially all of the property and assets of
the Company; 
 (iii) any reclassification of Common Stock; or 

(iv) any statutory exchange of securities of the Company with another Person (other than in connection with a merger or
acquisition covered by clause (i) above), 
 in each case, as a result of which the Common Stock would be converted into, or exchanged for,
or would represent solely the right to receive, securities, cash or property (each, a “Reorganization Event,” and, such securities, cash or property, the “Exchange Property,” and the amount of Exchange Property that
a holder of one share of the Common Stock would be entitled to receive on account of such Reorganization Event, an “Exchange Property Unit”), then from and after the effective time of such Reorganization Event, the consideration due
upon settlement of any Purchase Contract will be determined in the same manner as if each reference herein to any number of shares of Common Stock were instead a reference to the same number of Exchange Property Units. For purposes of the foregoing,
the type and amount of Exchange Property in the case of any Reorganization Event that causes the Common Stock to be converted into or exchanged for, or to represent solely the right to receive, more than a single type of consideration (determined
based in part upon any form of shareholder election) will be deemed to be the weighted average of the types and amounts of consideration received pursuant to such Reorganization Event by the holders of the Common Stock that affirmatively make such
an election. The number of Exchange Property Units for each Purchase Contract settled following the effective time of such Reorganization Event will be determined without interest thereon and without any right to dividends or distributions thereon
which have a record date prior to the date such Purchase Contracts are actually settled. The Applicable Market Value of the Exchange Property Unit will be determined (i) with respect to any publicly traded securities that compose all or part of
the Exchange Property Unit, based on the Closing Price of such securities (determined pursuant to the definition of “Closing Price” as if such securities were Common Stock); (ii) in the case of any cash that composes all or part of
the Exchange Property Unit, based on the amount of such cash; and (iii) in the case of any other property that composes all or part of the Exchange Property Unit, based on the value of such property, as determined by a nationally recognized
independent investment banking firm retained by the Company for such purpose. 

  

- 38 - 

 The above provisions of this Section 5.01(e) shall similarly apply to successive
Reorganization Events. Following each Reorganization Event, (i) for the avoidance of doubt, the Fixed Settlement Rates shall continue to be subject to adjustment (together with corresponding adjustments to the Fundamental Change Settlement
Rates, the Stock Prices, the Reference Price and the Threshold Appreciation Price) pursuant to this Section 5.01; and (ii) for all purposes hereunder (including, without limitation, for purposes of determining whether a Fundamental Change
has occurred), each reference herein to Common Stock shall be read as if such reference were instead a reference to the Exchange Property Units. 
 The Company (or any successor) shall, within 20 days of the occurrence of any Reorganization Event, provide written notice to the Purchase Contract Agent and Holders of such occurrence of such event and
of the composition of the Exchange Property and Exchange Property Units. Failure to deliver such notice shall not affect the operation of this Section 5.01(e). 
 Section 5.02 Early Settlement Upon a Fundamental Change. 
 (a) If a
Fundamental Change occurs and a Holder elects to effect an Early Settlement of any Purchase Contract in connection with such Fundamental Change, then, notwithstanding anything to the contrary herein, such Holder shall receive a number of shares of
Common Stock (or cash, securities or other property) equal to the Fundamental Change Early Settlement Rate (the “Fundamental Change Early Settlement Right”). An Early Settlement shall be deemed for these purposes to be “in
connection with” such Fundamental Change if the Holder delivers an Early Settlement Notice to the Purchase Contract Agent, and otherwise satisfies the requirements for effecting Early Settlement of its Purchase Contracts set forth in
Section 4.04, during the period beginning on, and including, the Effective Date of the Fundamental Change and ending on, and including, the 30th Business Day thereafter (the “Fundamental Change Early Settlement Date”).

 (b) The Company shall provide the Purchase Contract Agent and the Holders of Units and Separate Purchase Contracts with a
notice of a Fundamental Change within five Business Days after its occurrence, issue a press release announcing the Effective Date and post such press release on its website. The notice shall set forth (i) the applicable Fundamental Change
Early Settlement Rate, (ii) the kind and amount of Exchange Property receivable by the Holder upon settlement and (iii) the deadline by which each Holder’s Fundamental Change Early Settlement Right must be exercised. 

(c) The “Fundamental Change Early Settlement Rate” shall be determined by the Company by reference to the table below,
based on the date on which the Fundamental Change occurs or becomes effective (the “Effective Date”) and the stock price (the “Stock Price”) in the Fundamental Change, which shall be determined as follows:

 (i) in the case of a Fundamental Change described in clause (ii) of the definition thereof in which
holders of shares of Common Stock receive only cash in the Fundamental Change, the Stock Price shall be the cash amount paid per share of Common Stock; and 

  

- 39 - 

 (ii) in all other cases, the Stock Price shall be the average of the daily
Closing Prices per share of Common Stock over the 10 Trading Day period ending on, and including, the Trading Day preceding the Effective Date. 
 (d) The Stock Prices set forth in the first column of the table below and the Fundamental Change Early Settlement Rates in the table below are subject to adjustment as provided in
Section 5.01(c)(iii). 
 (e) The following table sets forth the Fundamental Change Early Settlement Rate per Purchase
Contract for each Stock Price and Effective Date set forth below: 
  

									
	 	 	 Effective Date

	 Stock Price
	 	 July 16, 2012
	 	 July 15, 2013
	 	 July 15, 2014
	 	 July 15, 2015

	   $0.50
	 	7.8254	 	7.9505	 	8.0765	 	8.6207
	   $1.00
	 	7.4201	 	7.5453	 	7.6712	 	8.6207
	   $1.50
	 	7.1706	 	7.2958	 	7.4217	 	8.6207
	   $2.50
	 	6.9143	 	7.0395	 	7.1654	 	8.6207
	   $2.75
	 	6.8776	 	7.0028	 	7.1287	 	8.6207
	   $2.90
	 	6.8588	 	6.9840	 	7.1099	 	8.6207
	   $3.00
	 	6.8475	 	6.9726	 	7.0986	 	8.3333
	   $3.25
	 	6.8226	 	6.9478	 	7.0737	 	7.6923
	   $3.55
	 	6.7983	 	6.9234	 	7.0494	 	7.0423
	   $3.75
	 	6.7848	 	6.9100	 	7.0359	 	7.0373
	   $4.50
	 	6.7484	 	6.8735	 	6.9994	 	7.0373
	   $5.00
	 	6.7327	 	6.8579	 	6.9838	 	7.0373
	   $7.50
	 	6.7021	 	6.8273	 	6.9532	 	7.0373
	 $10.00
	 	6.6994	 	6.8246	 	6.9505	 	7.0373
	 $12.50
	 	6.7028	 	6.8279	 	6.9539	 	7.0373
	 $15.00
	 	6.7070	 	6.8322	 	6.9581	 	7.0373

 The exact Stock Prices and Effective Dates may not be set forth in the table above, in which case:

 (i) if the applicable Stock Price is between two Stock Prices in the table or the Effective Date is between
two Effective Dates in the table, then the Fundamental Change Early Settlement Rate shall be determined by a straight-line interpolation between the Fundamental Change Early Settlement Rates set forth for the higher and lower Stock Prices and the
two Effective Dates, as applicable, based on a 365- or 366-day year, as applicable; 
 (ii) if the applicable
Stock Price is in excess of $15.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the table above), then the Fundamental Change Early Settlement Rate shall be the Minimum Settlement Rate; or 

  

- 40 - 

 (iii) if the applicable Stock Price is less than $0.50 per share (subject to
adjustment in the same manner as the Stock Prices set forth in the table above) (the “Minimum Stock Price”), then the Fundamental Change Early Settlement Rate shall be determined as if the Stock Price equaled the Minimum Stock
Price, and using straight line interpolation, as described in clause (i) of this Section 5.02(e), if the Effective Date is between two dates in the table. 
 The maximum number of shares of Common Stock deliverable under a Purchase Contract is the Maximum Settlement Rate. 
 (f) If a Holder exercises its Fundamental Change Early Settlement Right following the Effective Date of a Fundamental Change pursuant to clause (ii) of the definition thereof and such Fundamental
Change constitutes a Reorganization Event, then, for the avoidance of doubt, such Holder shall, pursuant to Section 5.01(e), receive, per Stock Purchase Contract being settled, a number of Exchange Property Units equal to the Fundamental Change
Settlement Rate applicable to such Fundamental Change. 
 (g) If a Holder does not elect to exercise the Fundamental Change
Early Settlement Right, such Holder’s Purchase Contracts shall remain outstanding and shall be subject to normal settlement on any subsequent Settlement Date, including, if applicable, the provisions set forth in Section 5.01. 

Section 5.03 Adjustments for Events Occurring During Averaging Periods. 

Notwithstanding anything to the contrary herein, whenever an average of prices of the Common Stock must be calculated pursuant hereto
over a specified period of time, the Board of Directors shall, in its good faith determination (which determination shall be described in a Board Resolution), appropriately adjust such prices to account for any adjustment, pursuant hereto, to the
Fixed Settlement Rates that shall become effective, or any event requiring, pursuant hereto, an adjustment to the Fixed Settlement Rates where the Ex Date of such event occurs, at any time during such period. 

ARTICLE VI 

REMEDIES 

Section 6.01 Unconditional Right of Holders to Receive Shares of Common Stock. 

Each Holder of a Purchase Contract (whether or not included in a Unit) shall have the right, which is absolute and unconditional, to
receive the shares of Common Stock pursuant to such Purchase Contract and to institute suit for the enforcement of any such right to receive the shares of Common Stock, and such right shall not be impaired without the consent of such Holder.

 Section 6.02 Limitation on Proceedings. 

No Holder of Purchase Contracts (whether or not included in a Unit) may institute any proceedings, judicial or otherwise, with respect to
this Agreement or for any remedy hereunder, 

  

- 41 - 

 
except in the case of failure of the Purchase Contract Agent, for 60 days, to act after the Purchase Contract Agent has received a written request to institute proceedings in respect of a default
with respect to any covenant hereunder from the Holders of not less than 25% of the Outstanding Purchase Contracts, as well as an offer of indemnity reasonably satisfactory to the Purchase Contract Agent. This provision will not prevent any Holder
of Purchase Contracts (whether or not included in a Unit) from instituting suit for the delivery of Common Stock deliverable upon settlement of the Purchase Contracts on the Mandatory Settlement Date or any Early Settlement Date, Fundamental Change
Settlement Date or Early Mandatory Settlement Date. 
 Section 6.03 Restoration of Rights and Remedies.

 If any Holder has instituted any proceeding to enforce any right or remedy under this Agreement and such proceeding has
been discontinued or abandoned for any reason, or has been determined adversely to such Holder, then and in every such case, subject to any determination in such proceeding, the Company and such Holder shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of such Holder shall continue as though no such proceeding had been instituted. 
 Section 6.04 Rights and Remedies Cumulative. 
 Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.10, no right or remedy herein conferred upon or reserved to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
 Section 6.05 Delay or Omission Not Waiver. 
 No delay or omission of
any Holder to exercise any right or remedy upon a default hereunder shall impair any such right or remedy or constitute a waiver of any such right. Every right and remedy given by this Article or by law to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by such Holders. 
 Section 6.06 Undertaking for Costs. 

All parties to this Agreement agree, and each Holder of a Purchase Contract, by its acceptance of such Purchase Contract shall be deemed
to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Agreement, or in any suit against the Purchase Contract Agent for any action taken, suffered or omitted by it as Purchase
Contract Agent, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and costs against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided, however, that the provisions of this Section shall not apply to any suit instituted by (a) the
Purchase Contract Agent, (b) any Holder, or group of Holders, holding in the aggregate more 

  

- 42 - 

 
than 10% of the Outstanding Purchase Contracts, or (c) any Holder for the enforcement of the right to receive shares of Common Stock under the Purchase Contracts held by such Holder.

 Section 6.07 Waiver of Stay or Execution Laws. 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or assume or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Agreement; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Purchase Contract Agent or the Holders, but will
suffer and permit the execution of every such power as though no such law had been enacted. 
 Section 6.08 Control by
Majority. 
 The Holders of not less than a majority in number of the Outstanding Purchase Contracts shall have the
right to direct the time, method and place of conducting any proceeding for any remedy available to the Purchase Contract Agent, or of exercising any trust or power conferred upon the Purchase Contract Agent; provided, however, that
the Purchase Contract Agent has received indemnity reasonably satisfactory to it. Notwithstanding anything to the contrary in the foregoing, the Purchase Contract Agent may refuse to follow any direction that is in conflict with any law or this
Purchase Contract Agreement, that may involve it in personal liability or that may be unduly prejudicial to the Holders of Purchase Contracts not joining in the action. 
 ARTICLE VII 
 THE PURCHASE CONTRACT AGENT AND TRUSTEE 

Section 7.01 Certain Duties and Responsibilities. 
 (a) Each of the Purchase Contract Agent and Trustee: 
 (i)
undertakes to perform, with respect to the Units and Purchase Contracts, such duties and only such duties as are specifically delegated to it and set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement
against the Purchase Contract Agent or Trustee; and 
 (ii) in the absence of bad faith or gross negligence on
its own part, may, with respect to the Units and Purchase Contracts, may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Purchase Contract
Agent or the Trustee, as applicable, and conforming to the requirements of this Agreement but in the case of any certificates or opinions that by any provision hereof are specifically required to be furnished to the Purchase Contract Agent or the
Trustee, as applicable, the Purchase Contract Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement (but need not confirm or investigate the accuracy of the mathematical
calculations or other facts stated therein and may assume the genuineness of all signatures). 

  

- 43 - 

 (b) No provision of this Agreement shall be construed to relieve the Purchase Contract Agent
from liability for its own grossly negligent action, its own grossly negligent failure to act, its own willful misconduct or its own bad faith, except that: 
 (i) this subsection shall not be construed to limit the effect of Section 7.01(a); 
 (ii) the Purchase Contract Agent shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Purchase Contract Agent was grossly negligent
in ascertaining the pertinent facts; 
 (iii) no provision of this Agreement shall require the Purchase Contract
Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if indemnity reasonably satisfactory to the Purchase Contract
Agent is not provided to it; and 
 (iv) the Purchase Contract Agent shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in number of the Outstanding Purchase Contracts. 
 (c) Whether or not herein expressly so provided, every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Purchase Contract Agent shall be
subject to the provisions of this Section 7.01. 
 Section 7.02 Notice of Default. 

Within 90 days after the occurrence of any default by the Company hereunder of which a Responsible Officer of the Purchase Contract Agent
has actual knowledge, the Purchase Contract Agent shall transmit by mail to the Company and the Holders of Purchase Contracts, as their names and addresses appear in the Security Register, notice of such default hereunder, unless such Responsible
Officer of the Purchase Contract Agent has actual knowledge that such default shall have been cured or waived. 
 Section
7.03 Certain Rights of Purchase Contract Agent. 
 Subject to the provisions of Section 7.01: 

(a) the Purchase Contract Agent may conclusively rely and shall be fully protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by
the proper party or parties; 

  

- 44 - 

 (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by an Officers’ Certificate, Issuer Order or Issuer Request, and any resolution of the Board of Directors of the Company may be sufficiently evidenced by a Board Resolution; 

(c) whenever in the administration of this Agreement the Purchase Contract Agent shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the Purchase Contract Agent (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’
Certificate of the Company; 
 (d) the Purchase Contract Agent may consult with counsel of its selection appointed with due care
by it hereunder and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

(e) the Purchase Contract Agent shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Purchase Contract Agent, in its discretion may make reasonable
further inquiry or investigation into such facts or matters related to the execution, delivery and performance of the Purchase Contracts as it may see fit, and, if the Purchase Contract Agent shall determine to make such further inquiry or
investigation, it shall be given a reasonable opportunity, during the Company’s normal business hours, to examine the relevant books, records and premises of the Company, personally or by agent or attorney, and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation; 
 (f) the Purchase Contract Agent may execute any
of the powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, or Affiliates and the Purchase Contract Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney or
Affiliate appointed with due care by it hereunder; 
 (g) the Purchase Contract Agent shall be under no obligation to exercise
any of the rights or powers vested in it by this Agreement at the request or direction of any of the Holders pursuant to this Agreement, unless such Holders shall have provided to the Purchase Contract Agent security or indemnity reasonably
satisfactory to the Purchase Contract Agent against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction; 
 (h) the Purchase Contract Agent shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Agreement; 
 (i) the Purchase Contract Agent shall not be deemed to have notice of
any default hereunder unless a Responsible Officer of the Purchase Contract Agent has actual knowledge thereof or unless written notice of a default is received by the Purchase Contract Agent at the Corporate Trust Office of the Purchase Contract
Agent, and such notice references the Purchase Contracts and this Agreement; 

  

- 45 - 

 (j) the Purchase Contract Agent may request that the Company deliver an Officers’
Certificate setting forth the names of individuals or titles of officers authorized at such time to take specified actions pursuant to this Agreement, which Officers’ Certificate may be signed by any person authorized to sign an Officers’
Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded; 

(k) the rights, privileges, protections, immunities and benefits given to the Purchase Contract Agent and under this Agreement,
including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Purchase Contract Agent and Trustee (whether or not the Trustee is expressly referred in connection with any such rights, privileges,
protections, immunities and benefits) and to each agent, custodian and other Person employed to act hereunder; and 
 (l) in no
event shall either of the Purchase Contract Agent or the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the
Purchase Contact Agent or the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 Section 7.04 Not Responsible for Recitals. 
 The recitals contained
herein and in the instruments evidencing any Purchase Contract or Amortizing Note, or in any document used in connection with the sale, offer or issuance of the Purchase Contracts or the Amortizing Notes, shall be taken as the statements of the
Company, and neither the Purchase Contract Agent nor the Trustee assumes any responsibility for their accuracy. Neither the Purchase Contract Agent nor the Trustee makes any representations as to the validity or sufficiency of either this Agreement
or of the Purchase Contracts. Neither the Purchase Contract Agent nor the Trustee shall be accountable for the use or application by the Company of the proceeds in respect of the Purchase Contracts. 

Section 7.05 May Hold Units and Purchase Contracts. 

Any Security Registrar or any other agent of the Company, or the Purchase Contract Agent, the Trustee and any of their Affiliates, in
their individual or any other capacity, may become the owner of Units, Separate Purchase Contracts and Separate Notes and may otherwise deal with the Company or any other Person with the same rights it would have if it were not Security Registrar or
such other agent, or the Purchase Contract Agent. The Company may become the owner of Units, Separate Purchase Contracts and Separate Notes. 
 Section 7.06 Money Held in Custody. 
 Money held by the Purchase
Contract Agent in custody hereunder need not be segregated from other funds except to the extent required by law or provided herein. The Purchase Contract Agent shall be under no obligation to invest or pay interest on any money received by it
hereunder except as specifically instructed by the Company in an Issuer Order. 

  

- 46 - 

 Section 7.07 Compensation, Reimbursement and Indemnification. 

The Company agrees: 
 (a) to pay to the Purchase Contract Agent compensation for all services rendered by it hereunder as the Company and the Purchase Contract Agent shall from time to time agree in writing; 

(b) except as otherwise expressly provided for herein, to promptly reimburse the Purchase Contract Agent upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Purchase Contract Agent in accordance with any provision of this Agreement (including costs of collection and the reasonable compensation and the expenses and disbursements of
its agents and counsel), except any such expense, disbursement or advance as may be determined to have been caused by the Purchase Contract Agent’s own gross negligence, willful misconduct or bad faith; and 

(c) to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent and their respective agents and representatives
for, and to hold them harmless against, any loss, liability or expense incurred without gross negligence, willful misconduct or bad faith on their part, arising out of or in connection with the acceptance or administration of the Purchase Contract
Agent’s duties hereunder, including the costs and expenses of defending itself against any claim (whether asserted by the Company, a Holder or any other person) or liability in connection with the exercise or performance of any of its powers or
duties hereunder. 
 The provisions of this Section shall survive the resignation or removal of the Purchase Contract Agent, the
termination of this Agreement or the rejection of this Agreement under bankruptcy law. 
 Section 7.08 Corporate Purchase
Contract Agent Required; Eligibility. 
 There shall at all times be a Purchase Contract Agent hereunder which shall be
a corporation or national banking association organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to exercise corporate trust powers, having (or being
a member of a bank holding company having) a combined capital and surplus of at least $50,000,000, subject to supervision or examination by Federal or State authority and having a corporate trust office in the Borough of Manhattan, New York City, if
there be such a corporation in the Borough of Manhattan, New York City, qualified and eligible under this Article and willing to act on reasonable terms. If such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Purchase Contract Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

  

- 47 - 

 Section 7.09 Resignation and Removal; Appointment of Successor. 

(a) No resignation or removal of the Purchase Contract Agent and no appointment of a successor Purchase Contract Agent pursuant to this
Article shall become effective until the acceptance of appointment by the successor Purchase Contract Agent in accordance with the applicable requirements of Section 7.10. 

(b) The Purchase Contract Agent may resign at any time by giving written notice thereof to the Company 60 days prior to the effective
date of such resignation. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase Contract Agent within 30 days after the giving of such notice of
resignation, the resigning Purchase Contract Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent. 

(c) The Purchase Contract Agent may be removed at any time by Act of the Holders of a majority in number of the Outstanding Purchase
Contracts delivered to the Purchase Contract Agent and the Company. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase Contract Agent within 30 days
after the delivery of such Act, the removed Purchase Contract Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent. 

(d) If at any time: 
 (i) the Purchase Contract Agent shall cease to be eligible under Section 7.08 and shall fail to resign after written request therefor by the Company or by any such Holder; or 

(ii) the Purchase Contract Agent shall be adjudged bankrupt or insolvent or a receiver of the Purchase Contract Agent or
of its property shall be appointed or any public officer shall take charge or control of the Purchase Contract Agent or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

then, in any such case, (x) the Company by a Board Resolution may remove the Purchase Contract Agent, or (y) any Holder who has been a bona
fide Holder of a Purchase Contract for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Purchase Contract Agent and the appointment of a successor
Purchase Contract Agent. 
 (e) If the Purchase Contract Agent shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Purchase Contract Agent for any cause, the Company shall promptly appoint a successor Purchase Contract Agent and shall comply with the applicable requirements of Section 7.10. If no successor Purchase
Contract Agent shall have been so appointed by the Company and accepted appointment in the manner required by Section 7.10, any Holder who has been a bona fide Holder of a Purchase Contract for at least six months, on behalf of itself and all
others similarly situated, or the Purchase Contract Agent may petition at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent. 

  

- 48 - 

 (f) The Company shall give, or shall cause such successor Purchase Contract Agent to give,
notice of each resignation and each removal of the Purchase Contract Agent and each appointment of a successor Purchase Contract Agent by mailing written notice of such event by first-class mail, postage prepaid, to Holders as their names and
addresses appear in the applicable Security Register. Each notice shall include the name of the successor Purchase Contract Agent and the address of its Corporate Trust Office. 

Section 7.10 Acceptance of Appointment by Successor. 

(a) In case of the appointment hereunder of a successor Purchase Contract Agent, every such successor Purchase Contract Agent so
appointed shall execute, acknowledge and deliver to the Company and to the retiring Purchase Contract Agent an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Purchase Contract Agent shall become
effective and such successor Purchase Contract Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, agencies and duties of the retiring Purchase Contract Agent, and the retiring Purchase Contract Agent
shall have no further obligations or duties hereunder except as expressly set forth herein. At the request of the Company or the successor Purchase Contract Agent, such retiring Purchase Contract Agent shall, upon its receipt of payment or
reimbursement of any amounts due to it hereunder, execute and deliver an instrument transferring to such successor Purchase Contract Agent all the rights, powers and trusts of the retiring Purchase Contract Agent and shall duly assign, transfer and
deliver to such successor Purchase Contract Agent all property and money held by such retiring Purchase Contract Agent hereunder. 
 (b) Upon request of any such successor Purchase Contract Agent, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Purchase Contract
Agent all such rights, powers and agencies referred to in paragraph Section 7.10(a). 
 (c) No successor Purchase Contract
Agent shall accept its appointment unless at the time of such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this Article. 
 Section 7.11 Merger; Conversion; Consolidation or Succession to Business. 
 Any corporation into which the Purchase Contract Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Purchase Contract Agent shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Purchase Contract Agent, shall be the successor of the Purchase Contract Agent hereunder; provided,
however, that such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. If any Equity-Linked Securities shall have
been authenticated on behalf of the Holders by the Trustee and Purchase Contract Agent then in office, but not delivered, any successor by merger, conversion 

  

- 49 - 

 
or consolidation to such Purchase Contract Agent may adopt such Purchase Contract Agent’s authentication and deliver the Equity-Linked Securities so authenticated with the same effect as if
such successor Purchase Contract Agent had itself authenticated such Equity-Linked Securities. 
 Section 7.12
Preservation of Information; Communications to Holders. 
 (a) The Purchase Contract Agent shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders as received by the Purchase Contract Agent in its capacity as Security Registrar. 
 (b) If three or more Holders (such three or more Holders, the “Applicants”) apply in writing to the Purchase Contract Agent, and furnish to the Purchase Contract Agent reasonable proof
that each such Applicant has owned a Unit or Separate Purchase Contract for a period of at least six months preceding the date of such application, and such application states that the Applicants desire to communicate with other Holders with respect
to their rights under this Agreement or under the Units or Separate Purchase Contracts and is accompanied by a copy of the form of proxy or other communication that such Applicants propose to transmit, then the Purchase Contract Agent shall mail to
all the Holders copies of the form of proxy or other communication that is specified in such request, with reasonable promptness after a tender to the Purchase Contract Agent of the materials to be mailed and of payment, or provision for the
payment, of the reasonable expenses of such mailing. 
 Section 7.13 No Other Obligations of Purchase Contract Agent or
Trustee. 
 Except to the extent otherwise expressly provided in this Agreement, neither the Purchase Contract Agent nor
Trustee assumes any obligations, and neither the Purchase Contract Agent nor Trustee shall be subject to any liability, under this Agreement or Security evidencing a Unit or Purchase Contract in respect of the obligations of the Holder of any Unit
or Purchase Contract thereunder. The Company agrees, and each Holder of a Security, by his or her acceptance thereof, shall be deemed to have agreed, that the Purchase Contract Agent’s or Trustee’s authentication, as applicable, of the
Securities on behalf of the Holders shall be solely as agent and attorney-in-fact for the Holders, and that neither the Purchase Contract Agent nor Trustee shall have any obligation to perform such Purchase Contracts (whether held as components of
Units or Separate Purchase Contracts) on behalf of the Holders, except to the extent expressly provided in ARTICLE III hereof. Anything contained in this Agreement to the contrary notwithstanding, in no event shall the Purchase Contract Agent, the
Trustee or their respective officers, employees or agents be liable under this Agreement to any third party for indirect, special, punitive, or consequential loss or damage of any kind whatsoever, including lost profits, whether or not the
likelihood of such loss or damage was known to the Purchase Contract Agent or Trustee, incurred without any act or deed that is found to be attributable to gross negligence, willful misconduct or bad faith on the part of the Purchase Contract Agent
or Trustee. 
 Section 7.14 Tax Compliance. 

(a) The Company and the Purchase Contract Agent shall comply with all applicable certification, information reporting and withholding
(including “backup” withholding) 

  

- 50 - 

 
requirements imposed by applicable tax laws, regulations or administrative practice with respect to (i) any payments made with respect to the Purchase Contracts or (ii) the issuance,
delivery, holding, transfer, redemption or exercise of rights under the Purchase Contracts. Such compliance shall include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts required to be
withheld to the appropriate taxing authority or its designated agent. 
 (b) The Company shall provide written direction to the
Purchase Contract Agent with respect to its obligations arising under Section 7.14(a). The Purchase Contract Agent shall comply, in accordance with the terms hereof, with any such written direction or any other written direction received from
the Company with respect to the execution or certification of any required documentation and the application of such requirements to particular payments or Holders or in other particular circumstances, and may for purposes of this Agreement
conclusively rely on any such direction in accordance with the provisions of Section 7.01(a)(ii) hereof. 
 (c) The
Purchase Contract Agent shall maintain all appropriate records documenting compliance with such requirements, and shall make such records available, on written request, to the Company or its authorized representative within a reasonable period of
time after receipt of such request. 
 ARTICLE VIII 

SUPPLEMENTAL AGREEMENTS 
 Section 8.01 Supplemental Agreements Without Consent of Holders. 

Without the consent of any Holders, the Company, the Purchase Contract Agent and the Trustee at any time and from time to time, may enter
into one or more agreements supplemental hereto, in form satisfactory to the Company and the Purchase Contract Agent, to: 
 (i) evidence the permitted succession of another Person to the Company’s obligations; 
 (ii) add to the covenants for the benefit of Holders or to surrender any of the Company’s rights or powers; 
 (iii) evidence and provide for the acceptance of appointment of a successor Purchase Contract Agent; 
 (iv) make provision with respect to the rights of Holders pursuant to adjustments in the Settlement Rate due to Reorganization Events; 

(v) cure any ambiguity or manifest error, to correct or supplement any provisions that may be inconsistent; or 

(vi) to make any other provisions with respect to such matters or questions; 

  

- 51 - 

 provided that any such action described in clauses (v) and (vi) above shall
not adversely affect the interest of the Holders. 
 Section 8.02 Supplemental Agreements With Consent of Holders.

 With the consent of the Holders of not less than a majority in number of the Outstanding Purchase Contracts, by Act of
said Holders delivered to the Company, the Purchase Contract Agent and the Trustee the Company, when authorized by a Board Resolution, and the Purchase Contract Agent and Trustee may enter into an agreement or agreements supplemental hereto for the
purpose of modifying in any manner the terms of the Purchase Contracts, or the provisions of this Agreement or the rights of the Holders in respect of the Purchase Contracts; provided, however, that, except as contemplated herein, no
such supplemental agreement shall, without the consent of each Holder of an outstanding Purchase Contract affected thereby, 
 (i) reduce the number of shares of Common Stock deliverable upon settlement of the Purchase Contracts, change the Mandatory Settlement Date, the right to settle Purchase Contracts early or the Fundamental
Change Early Settlement Right; or otherwise adversely affect the Holder’s rights under the Purchase Contract; or 
 (ii) reduce the above-stated percentage of Outstanding Purchase Contracts the consent of the Holders of which is required for the modification or amendment of the provisions of the Purchase Contracts or
the Purchase Contract Agreement, or 
 (iii) impair the right to institute suit for the enforcement of the
Purchase Contract. 
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any
proposed supplemental agreement, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 8.03
Execution of Supplemental Agreements. 
 In executing, or accepting the additional agencies created by, any
supplemental agreement permitted by this Article or the modifications thereby of the agencies created by this Agreement, the Purchase Contract Agent and Trustee shall be provided, and (subject to Section 7.01) shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental agreement is authorized or permitted by this Agreement and does not violate the Indenture, and that any and all conditions
precedent to the execution and delivery of such supplemental agreement have been satisfied. The Purchase Contract Agent and Trustee may, but shall not be obligated to, enter into any such supplemental agreement that affects the Purchase Contract
Agent’s or Trustee’s own rights, duties or immunities under this Agreement or otherwise. 
 Section 8.04 Effect
of Supplemental Agreements. 
 Upon the execution of any supplemental agreement under this Article, this Agreement shall
be modified in accordance therewith, and such supplemental agreement shall form a part of this Agreement for all purposes; and every Holder of Securities theretofore or thereafter authenticated on behalf of the Holders and delivered hereunder, shall
be bound thereby. 

  

- 52 - 

 Section 8.05 Reference to Supplemental Agreements. 

Securities authenticated on behalf of the Holders and delivered after the execution of any supplemental agreement pursuant to this
Article may, and shall if required by the Purchase Contract Agent, bear a notation in form approved by the Purchase Contract Agent as to any matter provided for in such supplemental agreement. If the Company shall so determine, new Securities so
modified as to conform, in the opinion of the Purchase Contract Agent, the Trustee and the Company, to any such supplemental agreement may be prepared and executed by the Company and authenticated on behalf of the Holders and delivered by the
Purchase Contract Agent in exchange for outstanding Securities. 
 Section 8.06 Notice of Supplemental Agreements.

 After any supplemental agreement under this Article becomes effective, the Company shall mail to the Holders a notice
briefly describing such supplemental agreement; provided, however, that the failure to give such notice to all Holders, or any defect therein, shall not impair or affect the validity of such supplemental agreement. 

ARTICLE IX 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
 Section 9.01 Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except Under Certain Conditions. 
 The Company covenants that it will not merge with and into, consolidate with or convert into any other Person or sell, assign, transfer, lease or convey all or substantially all of its properties and
assets to any Person, unless: 
 (i) the successor entity is an entity organized and validly existing under the
laws of the United States of America, any State of the United States of America or the District of Columbia that expressly assumes all of the Company’s obligations under the Units, the Purchase Contracts and this Agreement; and 

(ii) the Company or the successor entity, as the case may be, will not, immediately after the merger, consolidation,
conversion, sale, assignment, lease or conveyance, be in default in the performance of its covenants and conditions under the Units, the Purchase Contracts or this Agreement. 
 Section 9.02 Rights and Duties of Successor Entity. 
 In case of any
such merger, consolidation, sale, assignment, transfer or conveyance (but not any such lease) and upon any such assumption by a successor entity in accordance with Section 9.01, such successor entity shall succeed to and be substituted for the
Company with the same effect as if it had been named herein as the Company. Such successor entity thereupon 

  

- 53 - 

 
may cause to be signed, and may issue either in its own name or in the name of the Company, any or all of the Securities evidencing Units or Purchase Contracts issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Purchase Contract Agent; and, upon the order of such successor entity, instead of the Company, and subject to all the terms, conditions and limitations in this Agreement
prescribed, the Purchase Contract Agent and Trustee shall authenticate on behalf of the Holders and deliver any Securities that previously shall have been signed and delivered by the officers of the Company to the Purchase Contract Agent and Trustee
for authentication, and any Security evidencing Units or Purchase Contracts that such successor corporation thereafter shall cause to be signed and delivered to the Purchase Contract Agent and Trustee for that purpose. All the Securities issued
shall in all respects have the same legal rank and benefit under this Agreement as the Securities theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Securities had been issued at the date of the
execution hereof. 
 In the event of any such merger, consolidation, sale, assignment, transfer, lease or conveyance, such
change in phraseology and form (but not in substance) may be made in the Securities evidencing Units or Purchase Contracts thereafter to be issued as may be appropriate. 
 Section 9.03 Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent. 
 The Purchase Contract Agent, subject to Section 7.01 and Section 7.03, shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such merger,
consolidation, conversion, sale, assignment, transfer, lease or conveyance, and any such assumption, complies with the provisions of this Article and that all conditions precedent to the consummation of any such merger, consolidation, sale,
assignment, transfer, lease or conveyance have been met. 
 ARTICLE X 

COVENANTS OF THE COMPANY 
 Section 10.01 Performance Under Purchase Contracts. 
 The Company
covenants and agrees for the benefit of the Holders from time to time of the Units and Purchase Contracts that it will duly and punctually perform its obligations under the Units and Purchase Contracts in accordance with the terms of the Units and
Purchase Contracts and this Agreement. 
 Section 10.02 Maintenance of Office or Agency. 

The Company will maintain in the Borough of Manhattan, New York City an office or agency where Securities may be presented or surrendered
for acquisition of shares of Common Stock upon settlement of the Purchase Contracts on the Mandatory Settlement Date, any Early Settlement Date or any Early Mandatory Settlement Date and where notices and demands to or upon the Company in respect of
the Purchase Contracts and this Agreement may be served. The Company will give prompt written notice to the Purchase Contract Agent of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to

  

- 54 - 

 
maintain any such required office or agency or shall fail to furnish the Purchase Contract Agent with the address thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office, and the Company hereby appoints the Purchase Contract Agent as its agent to receive all such presentations, surrenders, notices and demands. 

The Company may also from time to time designate one or more other offices or agencies where Securities may be presented or surrendered
for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in
the Borough of Manhattan, New York City for such purposes. The Company will give prompt written notice to the Purchase Contract Agent of any such designation or rescission and of any change in the location of any such other office or agency. The
Company hereby designates as the place of payment for the Purchase Contracts the Corporate Trust Office and appoints the Purchase Contract Agent at its Corporate Trust Office as paying agent in such city. 

Section 10.03 Statements of Officers of the Company as to Default. 

The Company will deliver to the Purchase Contract Agent, within 120 days after the end of each fiscal year of the Company (which as of
the date hereof is September 30) ending after the date hereof, an Officers’ Certificate (one of the signers of which shall be the principal executive officer, principal financial officer or principal accounting officer of the Company),
stating whether or not to the knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions hereof, and if the Company shall be in default, specifying all such defaults
and the nature and status thereof of which they may have knowledge. 
 Section 10.04 Existence. 

Except as otherwise permitted under ARTICLE IX, the Company will do or cause to be done all things necessary to maintain in full force
its legal existence, rights (charter and statutory) and franchises, except that the Company is not required to preserve any right or franchise if the Company determines that it is no longer desirable in the conduct of its business and the loss is
not disadvantageous in any material respect to the Holders of any Purchase Contracts. 
 Section 10.05 Company to Reserve
Common Stock. 
 The Company shall at all times prior to the Mandatory Settlement Date reserve and keep available, free
from preemptive rights, out of its authorized but unissued Common Stock, solely for issuance upon settlement of the Purchase Contracts, that number of shares of Common Stock as shall from time to time be issuable upon the settlement of all
Outstanding Purchase Contracts (whether or not included in a Unit), assuming settlement at the Maximum Settlement Rate. 

Section 10.06 Covenants as to Common Stock. 
 The Company covenants that all shares of Common Stock that may be issued upon settlement of any Outstanding Purchase Contract will, upon issuance, be duly authorized, validly issued, fully paid and
non-assessable, free from all taxes, liens and charges and not subject to any preemptive rights. 

  

- 55 - 

 The Company further covenants that, if at any time the Common Stock shall be listed on the
NYSE or any other national securities exchange, the Company will, if permitted by the rules of such exchange, list and keep listed, so long as the Common Stock shall be so listed on such exchange, all Common Stock issuable upon settlement of the
Purchase Contracts; provided, however, that, if the rules of such exchange system permit the Company to defer the listing of such Common Stock until the first delivery of Common Stock upon settlement of Purchase Contracts in accordance
with the provisions of this Agreement, the Company covenants to list such Common Stock issuable upon settlement of the Purchase Contracts in accordance with the requirements of such exchange at such time. 

Section 10.07 Tax Treatment. 
 The Company agrees, and by purchasing a Unit each Holder agrees, for United States tax purposes, to treat (1) a Unit as an investment unit composed of two separate instruments, in accordance with its
form and (2) the Notes as indebtedness. 
 [SIGNATURES ON THE FOLLOWING PAGE] 

  

- 56 - 

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

					
	BEAZER HOMES USA, INC.
		
	By:	 	 /s/ Robert L. Salomon

		 	Name:	 	Robert L. Salomon
		 	Title:	 	 Executive Vice President and

Chief Financial Officer

	
	 U.S. BANK NATIONAL ASSOCIATION,

as Purchase Contract Agent

		
	By:	 	 /s/ William B. Echols

		 	Name:	 	William B. Echols
		 	Title:	 	Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee under the Indenture

		
	By:	 	 /s/ William B. Echols

		 	Name:	 	William B. Echols
		 	Title:	 	Vice President

 EXHIBIT A 
 [FORM OF FACE OF UNIT] 
 [INCLUDE IF A GLOBAL UNIT] 

[THIS SECURITY IS A GLOBAL UNIT WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS GLOBAL UNIT IS EXCHANGEABLE FOR SECURITIES REGISTERED IN
THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
 UNLESS THIS GLOBAL UNIT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS 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 SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

  
 A-1

 BEAZER HOMES USA, INC. 

7.50% TANGIBLE EQUITY UNITS 
  

			
	CUSIP No. 07556Q 709	  	
	No.
                                    	  	[Initial]1 Number of Units
                                    

 This Unit certifies that [CEDE & CO.]1
[            ]2 (the “Holder”), or registered assigns, is the registered owner of [the number of Units set forth above]2 [the number of Units shown on Schedule A hereto, which number may from time to time be reduced or increased, as
appropriate in accordance with the terms of the Purchase Contract Agreement (as defined below), but which shall not exceed          Units]1. 
 Each Unit consists of (i) a Purchase Contract and (ii) a Note, in each case issued by Beazer Homes USA, Inc. (the “Company”). Each Unit evidenced hereby is governed by a
Purchase Contract Agreement, dated as of July 16, 2012 (as may be supplemented from time to time, the “Purchase Contract Agreement”), between the Company and U.S. Bank National Association, as purchase contract agent (including
its successors hereunder, the “Purchase Contract Agent”) and as trustee (including its successors hereunder, the “Trustee”) under the Indenture. 

Reference is hereby made to the Purchase Contract Agreement and the Indenture and, in each case supplemental agreements thereto, for a
description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Purchase Contract Agent, the Trustee, the Company, and the Holders and of the terms upon which the Units are, and are to be, executed
and delivered. 
 Upon the conditions and under the circumstances set forth in the Purchase Contract Agreement, Holders of Units
shall have the right to separate a Unit into its component parts, and a Holder of a Separate Purchase Contract and Separate Note shall have the right to re-create a Unit. 
 The Company agrees, and by purchasing a Unit each Holder agrees, for U.S. tax purposes, to treat (1) a Unit as an investment unit composed of two separate instruments, in accordance with its form and
(2) the Notes as indebtedness. 
 The Units, and any claim, controversy or dispute arising under or related to the
Units, shall be governed by, and construed in accordance with, the laws of the State of New York (without regard to the conflicts of law principles that would result in the application of law other than the law of the State of New York).

  

	1	Include if a Global Unit. 

	2	Exclude if a Global Unit. 

  
 A-2

 Capitalized terms used herein and not defined have the meanings given to such terms in the
Purchase Contract Agreement. 
 [SIGNATURES ON THE FOLLOWING PAGE] 

  
 A-3

 IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed. 
  

			
	BEAZER HOMES USA, INC.
	By:	 	  

		 	Name:
		 	Title:

 Dated:
                                         
                    

  
 A-4

 UNIT CERTIFICATE OF AUTHENTICATION 

OF PURCHASE CONTRACT AGENT AND TRUSTEE UNDER INDENTURE 
 This is one of the Units referred to in the within mentioned Purchase Contract Agreement. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,

as Purchase Contract Agent

		
	By:	 	  

		 	(Authorized Signatory)
	
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee under the Indenture

		
	By:	 	  

		 	(Authorized Signatory)

 Dated:
                                         
                    

  
 A-5

 SCHEDULE A 
 [INCLUDE IF A GLOBAL UNIT] 
 SCHEDULE OF INCREASES OR DECREASES IN A GLOBAL UNIT

 The initial number of Units evidenced by this Global Unit is
                                         
   . The following increases or decreases in this Global Unit have been made: 
  

									
	 Date
	  	Amount of increase
in number of Units
evidenced by the
Global Unit	  	Amount of
decrease in number
of Units evidenced
by the Global Unit	  	Number of Units
evidenced by the
Global Unit
following such
decrease
or
increase	  	Signature of
authorized
signatory of
Purchase Contract
Agent

  
 A-6

 ATTACHMENT 1 
 [FORM OF SEPARATION NOTICE] 
 U.S. Bank National Association 

Corporate Trust Services 
 1349 West Peachtree
Street, Suite 1050 
 Atlanta, GA 30309 

Attention: Account Manager—Beazer Tangible Equity Units 
 Re:    Separation of [Global]3 Units 
 The undersigned [Beneficial Owner]3 hereby notifies you that it wishes to separate
             Units [as to which it holds a Book-Entry
Interest]3 into the applicable number of Notes and the
applicable number of Purchase Contracts in accordance with the Purchase Contract Agreement (the “Purchase Contract Agreement”) dated July 16, 2012 between the Beazer Homes USA, Inc. (the “Company”) and U.S.
Bank National Association, as Purchase Contract Agent and Trustee under the Indenture. Terms used and not defined herein have the meaning assigned to such terms in the Purchase Contract Agreement. 

The undersigned [includes herewith]4 [Beneficial Owner has instructed the undersigned Depository Participant to transfer to you its Book-Entry
Interests]3 the number of Units specified in the
immediately succeeding paragraph. The undersigned [includes herewith]4 [Beneficial Owner has furnished the undersigned Depository Participant
with]3 the appropriate endorsements and documents and paid
all transfer or similar taxes, if any, to the extent required by the Purchase Contract Agreement. 
 Please [deliver to the
undersigned’s address specified below]4 [transfer to
the account of the undersigned Beneficial Owner with the undersigned Depositary Participant the beneficial interests
in]3 (i) the number of Notes and (ii) number of
Purchase Contracts represented by the number of Units specified above. 
  

 

	3 	Include if a Global Unit. 

	4 	Exclude if a Global Unit. 

  
 A-7

 IN WITNESS
WHEREOF, the [undersigned has caused this instrument to be duly executed]4 [Depository Participant has caused this instrument to be duly executed on behalf of itself and the undersigned Beneficial Owner]3. 
  

									
	 Dated:
	 	  
	 		  		 	
		 		 		  	[NAME OF BENEFICIAL OWNER]
					
		 		 		  	By:	 	  

		 		  		 	 Name:
 Title:

Address:

				
	 [NAME OF DEPOSITORY PARTICIPANT]3
	 		  		 	
					
	 By:
	 	  
	 		  		 	
		 	 Name:

Address:
	 		  		 	

 Attest By: 

  
 A-8

 ATTACHMENT 2 
 [FORM OF RECREATION NOTICE] 
 U.S. Bank National Association 

Corporate Trust Services 
 1349 West Peachtree
Street, Suite 1050 
 Atlanta, GA 30309 

Attention: Account Manager–Beazer Tangible Equity Units 
 Re:    Recreation of [Global]5 Units 
 The undersigned [Beneficial Owner]5 hereby notifies you that it wishes to recreate
             Units [as to which it holds a Book-Entry
Interest]5 from the applicable number of Notes and the
applicable number of Purchase Contracts in accordance with the Purchase Contract Agreement (the “Purchase Contract Agreement”) dated as of July 16, 2012 between Beazer Homes USA, Inc. (the “Company”) and U.S.
Bank National Association, as Purchase Contract Agent and Trustee under the Indenture. Terms used and not defined herein have the meaning assigned to such terms in the Purchase Contract Agreement. 

The undersigned [includes herewith]6 [Beneficial Owner has instructed the undersigned Depository Participant to transfer to you its Book-Entry Interests
in]5 the applicable number of Notes and the applicable
number of Purchase Contracts sufficient for the recreation of the number of Units specified above. The undersigned [includes herewith]6 [Beneficial Owner has furnished the undersigned Depository Participant with]5 the appropriate endorsements and documents and paid all transfer or
similar taxes, if any, to the extent required by the Purchase Contract Agreement. 
 Please [deliver to the
undersigned’s address specified below]6 [transfer to
the account of the undersigned Beneficial Owner with the undersigned Depositary Participant the beneficial interests
in]5 the number of Units specified above. 

 
  

	5 	Include if a Global Unit. 

	6 	Exclude if a Global Unit. 

  
 A-9

 IN WITNESS WHEREOF, the [undersigned has
caused this instrument to be duly executed]6 [Depository
Participant has caused this instrument to be duly executed on behalf of itself and the undersigned Beneficial
Owner]8. 

 

									
	 Dated:
	 	  
	 		  		 	
		 		 		  	[NAME OF BENEFICIAL OWNER]
					
		 		 		  	By:	 	  

		 		  		 	 Name:
 Title:

Address:

				
	 [NAME OF DEPOSITORY PARTICIPANT]7
	 		  		 	
					
	 By:
	 	  
	 		  		 	
		 	 Name:

Address:
	 		  		 	

 Attest By: 
  

 

	6 	Exclude if a Global Unit. 

	8 	Include if a Global Unit. 

	7 	Exclude if a Global Unit. 

  
 A-10

 ATTACHMENT 3 
 BEAZER HOMES USA, INC. 
 PURCHASE CONTRACTS 

CUSIP No. 07556Q 121 
  

	 No.
                             
	
Number of Purchase Contracts:               
               

 This Purchase
Contract certifies that, Cede & Co, or its registered assigns (the “Holder”) is the registered owner of the number of Purchase Contracts [set forth above][shown on Schedule A hereto], which number may from time to
time be reduced or increased as set forth on Schedule A hereto, as appropriate in accordance with the terms of the Purchase Contract Agreement, dated as of July 16, 2012 (as may be supplemented from time to time, the “Purchase Contract
Agreement”), between the Company and U.S. Bank National Association, as purchase contract agent (including its successors hereunder, the “Purchase Contract Agent”) and as trustee under the Indenture (as defined on the
reverse hereof), but which shall not exceed                      Purchase Contracts. 

Each Purchase Contract consists of the rights of the Holder under such Purchase Contract with the Company. All capitalized terms used
herein which are defined in the Purchase Contract Agreement have the meaning set forth therein. 
 Each Purchase Contract
evidenced hereby obligates the Company to deliver to the Holder of this Purchase Contract on the Mandatory Settlement Date a number shares of common stock, $0.001 par value (“Common Stock”), of the Company equal to the Settlement
Rate, unless such Purchase Contract settles prior to the Mandatory Settlement Date, all as provided in the Purchase Contract Agreement and more fully described on the reverse hereof. 

Reference is hereby made to the further provisions set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place. 
 IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed. 
  

	
	 BEAZER HOMES USA, INC.

 
 By:
                                         
                                         
             

	 Name:
 Title:

 Dated:
                         

  
 A-11

 PURCHASE CONTRACT CERTIFICATE OF AUTHENTICATION 

OF PURCHASE CONTRACT AGENT AND TRUSTEE UNDER THE INDENTURE 
 This is one of the Purchase Contracts referred to in the within-mentioned Purchase Contract Agreement. 
  

	
	 U.S. BANK NATIONAL ASSOCIATION,

as Purchase Contract Agent
  

By:                  
                                         
                                    

(Authorized Signatory)

	
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee under the Indenture
  

By:                  
                                         
                                    

(Authorized Signatory)

  
 A-12

 [REVERSE OF PURCHASE CONTRACT] 

Each Purchase Contract evidenced hereby is governed by the Purchase Contract Agreement. Reference is hereby made to the Purchase Contract
Agreement and supplemental agreements thereto for a description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Purchase Contract Agent, the Trustee, the Company, and the Holders and of the terms
upon which the Purchase Contracts are, and are to be, executed and delivered. 
 Each Purchase Contract evidenced hereby
obligates the Company to deliver to the Holder of this Purchase Contract, on the Mandatory Settlement Date, a number of shares of Common Stock equal to the Settlement Rate, unless such Purchase Contract settles prior to the Mandatory Settlement
Date, all as provided in the Purchase Contract Agreement. 
 No fractional shares of Common Stock will be issued upon settlement
of Purchase Contracts, as provided in Section 4.06 of the Purchase Contract Agreement. 
 The Purchase Contracts are
issuable only in registered form and only in denominations of a single Purchase Contract and any integral multiple thereof. The transfer of any Purchase Contract will be registered and Purchase Contracts may be exchanged as provided in the Purchase
Contract Agreement. 
 The Holder of this Purchase Contract, by its acceptance hereof, authorizes the Purchase Contract Agent to
enter into and perform the Purchase Contract Agreement on its behalf as its attorney-in-fact and agrees to be bound by the terms and provisions thereof. 
 Subject to certain exceptions set forth in the Purchase Contract Agreement, the provisions of the Purchase Contract Agreement may be amended with the consent of the Holders of a majority of the Purchase
Contracts. 
 The Purchase Contracts, and any claim, controversy or dispute arising under or related to the Purchase
Contracts, shall be governed by, and construed in accordance with, the laws of the State of New York (without regard to the conflicts of law principles that would result in the application of law other than the law of the State of New York).

 The Company, the Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract Agent
may treat the Person in whose name this Purchase Contract is registered as the owner of the Purchase Contracts evidenced hereby for the purpose of performance of the Purchase Contracts and for all other purposes whatsoever, whether or not any
payments in respect thereof be overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the contrary. 

The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any of the rights of a holder of the Common
Stock or other Exchange Property. 

  
 A-13

 Each Purchase Contract (whether or not included in a Unit) is a security governed by Article
8 of the Uniform Commercial Code as in effect in the State of New York on the date hereof. 
 A copy of the Purchase Contract
Agreement is available for inspection at the offices of the Purchase Contract Agent. 

  
 A-14

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

  

									
	 TEN COM:
	  	 as tenants in common

				
	 UNIF GIFT MIN ACT:
	  	  
	  	 	Custodian:	  	  	  

		  	(cust)	  				  	(minor)
			
		  	 Under Uniform gifts to Minors Act of
	   
	  	  

		
		  	  

		
	 TENANT:
	  	 as tenants by the entireties

			
	 JT TEN:
	  	as joint tenants with right of survivorship and not as tenants in common	  		

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 
 (Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee) 
 (Please
Print or Type Name and Address Including Postal Zip Code of Assignee) 
 the within Purchase Contracts and all rights thereunder, hereby
irrevocably constituting and appointing attorney                     , to transfer said Purchase Contracts on the books of the Company with
full power of substitution in the premises. 
  

			
	
DATED:                       
                                         
                                         
      
	  	
Signature:                      
                                         
                                     

		
		  	Notice : The signature to this assignment must correspond with the name as it appears upon the face of the within Purchase Contracts in every particular, without alteration or
enlargement or any change whatsoever
	
Signature Guarantee:                    
                                         
                           
	  	

  

  
 A-15

 SETTLEMENT INSTRUCTIONS 

The undersigned Holder directs that a certificate for shares of Common Stock or other securities deliverable upon settlement on or after
the Settlement Date of Purchase Contracts evidenced by this instrument be registered in the name of, and delivered, together with a check in payment for any fractional share, to the undersigned at the address indicated below unless a different name
and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer tax payable incidental thereto. 

 

			
	 DATED:
                    
	    	  

		    	 Signature

		
		    	 Signature Guarantee:
                                    

		    	 (if assigned to another Person)

	If shares are to be registered in the name of and delivered to a Person other than the Holder, please (i) print such Person’s name and address and (ii) provide a guarantee of
your signature:	    	
		
	  
	    	  

	Name	    	Name
		
	Address	    	Address
		
	  
	    	  

		
	  
	    	  

		
	 Social Security or other Taxpayer Identification Number, if any
	    	  

  

  
 A-16

 ELECTION TO SETTLE EARLY 

The undersigned Holder of this Purchase Contract hereby irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase Contracts evidenced by this instrument specified below. The undersigned Holder directs that a certificate for shares of Common Stock or other securities deliverable upon such
Early Settlement be registered in the name of, and delivered, together with a check in payment for any fractional share and any Purchase Contract representing any Purchase Contracts evidenced hereby as to which Early Settlement is not effected, to
the undersigned at the address indicated below unless a different name and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will
pay any transfer tax payable incident thereto. 
  

			
	
DATED:                       
                                         
                                         
    
	  	
    Signature:                  
                                         
                                      

	
	 Signature Guarantee:
                                         
                                         
                    

  

  
 A-17

 Number of Purchase Contracts evidenced hereby as to which Early Settlement is being elected:

  

			
		
	If shares of Common Stock or Purchase Contracts are to be registered in the name of and delivered to a Person other than the Holder, please print such Person’s name and
address:	    	 REGISTERED HOLDER

		
		    	Please print name and address of Registered Holder:
		
	  
	    	  

	 Name
	    	 Name

		
	 Address
	    	 Address

		
	  
	    	  

		
	  
	    	  

		
	 Social Security or other Taxpayer Identification Number, if any
	    	  

  

  
 A-18

 SCHEDULE A 
 SCHEDULE OF INCREASES OR DECREASES IN THE PURCHASE CONTRACT 
 The initial number
of Purchase Contracts evidenced by this certificate is                     . The following increases or decreases in this certificate have
been made: 
  

									
	 Date
	  	Amount of
increase in
number of
Purchase
Contracts
evidenced
hereby	  	Amount of
decrease in
number of
Purchase
Contracts
evidenced
hereby	  	Number of
Purchase
Contracts
evidenced
hereby
following such
decrease
or
increase	  	Signature
of
authorized
signatory of
Purchase
Contract
Agent

  
 A-19

 ATTACHMENT 4 
 BEAZER HOMES USA, INC. 
 6.00% SENIOR AMORTIZING NOTES 

DUE JULY 15, 2015 
 REGISTERED

 CUSIP: 07556Q 808 

ISIN: US07556Q8087 
  

	 No.
                             
	
[Initial] Number of Notes: [               
                     ] 

 Beazer Homes USA, Inc., a Delaware corporation (the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby
promises to pay to CEDE & CO., or registered assigns, the initial principal sum of $5.1086 for each of the number of Notes set forth [above][in Schedule A hereto], in quarterly installments (each constituting a payment of interest at the
rate per year of 6.00% and a partial repayment of principal) payable on each July 15, October 15, January 15 and April 15, commencing on October 15, 2012 (each such date, an “Installment Payment
Date” and the period from, and including, July 16, 2012 to, but excluding, the first Installment Payment Date and each subsequent full quarterly period from and including an Installment Payment Date to, but excluding, the immediately
succeeding Installment Payment Date, an “Installment Payment Period”), all as set forth on the reverse hereof. The installment amount payable on any Installment Payment Date shall be computed on the basis of a 360-day year
consisting of twelve 30-day months. If an installment is payable for any period shorter than a full Installment Payment Period, such installment shall be computed on the basis of the actual number of days elapsed per 30-day month. In the event that
any date on which an installment is payable is not a Business Day, then payment of the installment on such date will be made on the next succeeding day that is a Business Day, and without any interest or other payment in respect of any such delay.
However, if such Business Day is in the next succeeding calendar year, then such installment payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date when such installment
payment was originally due. Installments shall be paid to the person in whose name the Note is registered, with limited exceptions, at the close of business on the Business Day immediately preceding the related Installment Payment Date (each, a
“Regular Record Date”). If the Notes do not remain in book-entry only form, the Company shall have the right to select Regular Record Dates, noticed in writing in advance, to the Trustee and Holders, which will be more than 14 days
but less than 60 days prior to the relevant Installment Payment Date. Any such installment payment not punctually paid or duly provided for on any Interest Payment Date shall forthwith cease to be payable to the registered Holders at the close of
business on such Regular Record Date and may be paid to the Person in whose name this Note (or one or more successor Securities) is registered at the close of business on a special record date to be fixed by the Trustee for the payment of such
defaulted installment, notice whereof shall be given to the registered Holders of the Notes not less than 15 days prior to such special record date, or may be paid at any time in any other 

  
 A-20

 
lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Installments shall be payable at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York; provided, however, that payment of installments may be made
at the option of the Company by check mailed to the registered Holder at such address as shall appear in the Security Register or by wire transfer to an account appropriately designated by the Holder entitled to payment. 

This Note shall not be entitled to any benefit under the Indenture hereinafter referred to or be valid or obligatory for any purpose
until the Certificate of Authentication shall have been signed by or on behalf of the Trustee. 
 The provisions of this Note
are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place. 

  
 A-21

 IN WITNESS WHEREOF, the
Company has caused this instrument to be executed. 
 Dated:
                                         
        
  

			
	
	 BEAZER HOMES USA, INC.,

 
 as Issuer

		
	By:	 	  

		 	Name:
		 	Title:

 Attest 
  

									
	 By:
	  	  
	  		  	By:	  	  

		  	Name:	  		  		  	Name:
		  	Title:	  		  		  	Title:

  
 A-22

 CERTIFICATE OF AUTHENTICATION 

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

 

			
	Dated:	 	                             
                                         
                                         

	
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee under the Indenture

		
	 By:
	 	                             
                                         
                                         

		 	 Authorized Signatory:

		 	 Title:

  
 A-23

 [REVERSE OF NOTE] 
 BEAZER HOMES USA, INC. 
 This Note is one of a duly authorized series of
Securities of the Company designated as its 6.00% Senior Amortized Notes due 2015 (herein sometimes referred to as the “Notes”), issued under the Indenture, dated as of April 17, 2002, between the Company and U.S. Bank National
Association, as trustee (the “Trustee,” which term includes any successor trustee under the Indenture) (the “Base Indenture”) as supplemented by the Sixteenth Supplemental Indenture, dated as of July 16, 2012,
between the Company and the Trustee (such supplemental indenture, together with the Base Indenture, the “Indenture”), to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the Holders. The terms of other series of Securities issued under the Indenture may vary with respect to interest rates, issue dates, maturity, redemption, repayment, currency of
payment and otherwise as provided in the Indenture. The Indenture further provides that securities of a single series may be issued at various times, with different maturity dates and may bear interest at different rates. This series of Securities
is limited in aggregate principal amount as specified in the Indenture. 
 Each installment shall constitute a payment of
interest (at a rate of 6.00% per annum) and a partial repayment of principal on the Note, allocated as set forth in the schedule below: 
  

									
	 Scheduled Installment Payment Date
	  	Amount of Principal	 	  	Amount of Interest	 
	 October 15, 2012
	  	$	0.3878	  	  	$	0.0758	  
	 January 15, 2013
	  	$	0.3979	  	  	$	0.0708	  
	 April 15, 2013
	  	$	0.4039	  	  	$	0.0648	  
	 July 15, 2013
	  	$	0.4100	  	  	$	0.0588	  
	 October 15, 2013
	  	$	0.4161	  	  	$	0.0526	  
	 January 15, 2014
	  	$	0.4224	  	  	$	0.0464	  
	 April 15, 2014
	  	$	0.4287	  	  	$	0.0401	  
	 July 15, 2014
	  	$	0.4351	  	  	$	0.0336	  
	 October 15, 2014
	  	$	0.4416	  	  	$	0.0271	  
	 January 15, 2015
	  	$	0.4483	  	  	$	0.0205	  
	 April 15, 2015
	  	$	0.4550	  	  	$	0.0138	  
	 July 15, 2015
	  	$	0.4618	  	  	$	0.0069	  

 The Securities of this series shall not be subject to redemption at the option of the Company. However, a
Holder shall have the right to require the Company to repurchase some or all of its Notes for cash at the Repurchase Price per Note to be repurchased on the Repurchase Date, upon the occurrence of certain events and subject to the conditions set
forth in the Indenture. 
 This Security is not entitled to the benefit of any sinking fund. The Indenture contains provisions
for defeasance and covenant defeasance at any time of the indebtedness on this Security upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Security. 

  
 A-24

 If an Event of Default with respect to the Notes shall occur and be continuing, then (unless
no declaration of acceleration or notice is required for such Event of Default) either the Trustee or the Holders of not less than 25% in principal amount of the Notes of this series then outstanding may declare the aggregate principal amount of the
Notes of this series, and all interest accrued thereon, to be due and payable immediately, in the manner, subject to the conditions and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee, with the consent of the holders of not
less than a majority in principal amount of the Securities at the time outstanding, to execute supplemental indentures for certain purposes as described therein. 
 Obligations Unconditional. No provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay installments on this Note
at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed. 
 Additional Terms.
The Notes are originally being issued as part of the Company’s 7.50% Tangible Equity Units (the “Units”) issued pursuant to that certain Purchase Contract Agreement, dated as of July 16, 2012, between the Company, the
Trustee and U.S. Bank National Association, as Purchase Contract Agent and as Trustee of the Indenture (the “Purchase Contract Agreement”). Holders of the Units have the right to separate such Units into their constituent parts,
consisting of Purchase Contracts (as defined in the Purchase Contract Agreement) and Notes, during the times, and under the circumstances, described in the Purchase Contract Agreement. Following separation of any Unit into its constituent parts, the
Notes will be transferable independently from the Purchase Contracts. In addition, separated Notes can be recombined with separated Purchase Contracts to recreate Units, as provided for in the Purchase Contract Agreement. Reference is hereby made to
the Purchase Contract Agreement for a more complete description of the terms thereof applicable to the Units and Notes. 

Transfer and Exchange. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this
Note shall be registered on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company in the Borough of Manhattan, The City of New York, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount, shall be issued to the designated transferee or transferees. 
 The Securities of
this series are initially issued in registered, global form without coupons in initial minimum denominations of one Note and integral multiples in excess thereof. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. 

  
 A-25

 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Issuer or the Trustee may treat the Holder in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary. 
 This Note and the Indenture, and any claim, controversy or dispute arising under or
related to the Indenture or this Note, shall for all purposes be governed by, and construed in accordance with, the laws of the State of New York (without regard to the conflicts of law principles that would result in the application of law other
than the law of the State of New York). 
 All terms used in this Note which are defined in the Indenture and not otherwise
defined herein shall have the meanings assigned to them in the Indenture. 
 No recourse shall be had for the payment of any
installment on this Note, or for any claim based hereon, or upon any obligation, covenant or agreement of the Company in the Indenture, against any incorporator, stockholder, officer or director, past, present or future of the Company or of any
predecessor or successor corporation, either directly or through the Company or of any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment of penalty or otherwise; and all
such personal liability is expressly released and waived as a condition of, and as part of the consideration for, the issuance of this Note. 
 The Company and each Holder agrees, for U.S. tax purposes, to treat the Notes as indebtedness. 

  
 A-26

 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned assigns and transfers this Note to: 
 (Insert assignee’s
social security or tax identification number) 
 (Insert address and zip code of assignee) 

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

	
	
	  
	Signature:
	
	  
	Signature Guarantee

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

  
 A-27

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

			
	By:	 	 
		 	 Name:
 Title:

 

	
	 
	as Trustee

  

			
	
		
	By:	 	 
		 	 Name:

Title:

  

			
	Attest:
		
	By:	 	 
		 	 Name:

Title:

  
 A-28

 FORM OF REPURCHASE NOTICE 
 TO: Beazer Homes USA, Inc. and U.S. Bank National Association, as Trustee 
 The
undersigned registered Holder hereby irrevocably acknowledges receipt of a notice from Beazer Homes USA, Inc. (the “Company”) regarding the right of Holders to elect to require the Company to repurchase the Notes and requests and
instructs the Company to repay the entire principal amount of the number of Notes below designated, in accordance with the terms of the Indenture and the Notes, together with accrued and unpaid interest to, but excluding, the Repurchase Date to the
registered holder hereof. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. The Notes shall be repurchased by the Company as of the Repurchase Date pursuant to the terms and conditions
specified in the Indenture. 
 Dated:
                                         
                        
  

	
	
	  
	 Signature:
  

	
	 

 NOTICE: The above signature of the Holder hereof must correspond with the name as written upon the
face of the Notes in every particular without alteration or enlargement or any change whatever. 
 Notes Certificate Number (if applicable):
____________________________ 
 Number of Notes to be repurchased (if less than all, must be one Note or integral multiples in excess thereof):
___________________________ 
 Social Security or Other Taxpayer Identification Number: ___________________________ 

  
 A-29

 SCHEDULE A 
 The initial number of Notes evidenced by this certificate is [                    ]. The following
increases or decreases in this Note have been made: 
  

									
	 Date
	  	Amount of
decrease in
number of Notes
evidenced hereby	  	Amount of
increase in
number of
Notes evidenced
hereby	  	Number of
Notes
evidenced
hereby
following such
decrease (or
increase)	  	Signature
of
authorized
officer of
Trustee

  
 A-30

 EXHIBIT B 
 [FORM OF FACE OF PURCHASE CONTRACT] 
 [INCLUDE IF A GLOBAL PURCHASE CONTRACT]

 [THIS SECURITY IS A GLOBAL PURCHASE CONTRACT WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS GLOBAL PURCHASE CONTRACT IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS
SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 

UNLESS THIS GLOBAL PURCHASE CONTRACT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS 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 SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.] 

  
 B-1

 [FORM OF REVERSE OF PURCHASE CONTRACT] 

Each Purchase Contract evidenced hereby is governed by a Purchase Contract Agreement, dated as of July 16, 2012 (as may be
supplemented from time to time, the “Purchase Contract Agreement”), between the Company and U.S. Bank National Association, as purchase contract agent (including its successors hereunder, the “Purchase Contract
Agent”) and as trustee under the Indenture. Reference is hereby made to the Purchase Contract Agreement and supplemental agreements thereto for a description of the respective rights, limitations of rights, obligations, duties and
immunities thereunder of the Purchase Contract Agent, the Trustee, the Company, and the Holders and of the terms upon which the Purchase Contracts are, and are to be, executed and delivered. 

Each Purchase Contract evidenced hereby obligates the Company to deliver to the Holder of this Purchase Contract, on the Mandatory
Settlement Date, a number of shares of Common Stock equal to the Settlement Rate, unless such Purchase Contract settles prior to the Mandatory Settlement Date, all as provided in the Purchase Contract Agreement. 

No fractional shares of Common Stock will be issued upon settlement of Purchase Contracts, as provided in Section 4.06 of the
Purchase Contract Agreement. 
 The Purchase Contracts are issuable only in registered form and only in denominations of a
single Purchase Contract and any integral multiple thereof. The transfer of any Purchase Contract will be registered and Purchase Contracts may be exchanged as provided in the Purchase Contract Agreement. 

The Holder of this Purchase Contract, by its acceptance hereof, authorizes the Purchase Contract Agent to enter into and perform the
Purchase Contract Agreement on its behalf as its attorney-in-fact and agrees to be bound by the terms and provisions thereof. 

Subject to certain exceptions set forth in the Purchase Contract Agreement, the provisions of the Purchase Contract Agreement may be
amended with the consent of the Holders of a majority of the Purchase Contracts. 
 The Purchase Contracts, and any claim,
controversy or dispute arising under or related to the Purchase Contracts, shall be governed by, and construed in accordance with, the laws of the State of New York (without regard to the conflicts of law principles that would result in the
application of law other than the law of the State of New York). 
 The Company, the Purchase Contract Agent and its
Affiliates and any agent of the Company or the Purchase Contract Agent may treat the Person in whose name this Purchase Contract is registered as the owner of the Purchase Contracts evidenced hereby for the purpose of performance of the Purchase
Contracts and for all other purposes whatsoever, whether or not any payments in respect thereof be overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by
notice to the contrary. 
 The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any of the
rights of a holder of the Common Stock or other Exchange Property. 

  
 B-2

 Each Purchase Contract (whether or not included in a Unit) is a security governed by Article
8 of the Uniform Commercial Code as in effect in the State of New York on the date hereof. 
 A copy of the Purchase Contract
Agreement is available for inspection at the offices of the Purchase Contract Agent. 

  
 B-3

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

  

							
	TEN COM:	  	as tenants in common
			
	UNIF GIFT MIN ACT:	  	  
	  	Custodian:
                                         
   
		  	(cust)	  	                    (minor)	  	
			
		  	Under Uniform gifts to Minors Act of 	  	  

		
		  	  

		
	TENANT:	  	as tenants by the entireties
			
	JT TEN:	  	as joint tenants with right of survivorship and not as tenants in common	  	

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 
 (Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee) 
 (Please
Print or Type Name and Address Including Postal Zip Code of Assignee) 
 the within Purchase Contracts and all rights thereunder, hereby
irrevocably constituting and appointing attorney                                 ,
to transfer said Purchase Contracts on the books of the Company with full power of substitution in the premises. 
  

			
	DATED:
                                         
   	  	Signature:
                                         
   
		
		  	Notice : The signature to this assignment must correspond with the name as it appears upon the face of the within Purchase Contracts in every particular, without alteration or
enlargement or any change whatsoever

 Signature Guarantee:
                                         
    

  
 B-4

 SETTLEMENT INSTRUCTIONS 

The undersigned Holder directs that a certificate for shares of Common Stock or other securities deliverable upon settlement on or after
the Settlement Date of Purchase Contracts evidenced by this instrument be registered in the name of, and delivered, together with a check in payment for any fractional share, to the undersigned at the address indicated below unless a different name
and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer tax payable incidental thereto. 

 

					
	DATED:
                                         
   	    		  	
		    		  	Signature
			
		    		  	Signature Guarantee:
                                         
                           
		    		  	(if assigned to another Person)
	If shares are to be registered in the name of and delivered to a Person other than the Holder, please (i) print such Person’s name and address and (ii) provide a guarantee of
your signature:	    	
		
	  
 Name
	    	  
 Name

		
	 Address
  

 
  

 
	    	 Address
  

 
  

 

		
	Social Security or other Taxpayer Identification Number, if any	    	  

  

  
 B-5

 ELECTION TO SETTLE EARLY 

The undersigned Holder of this Purchase Contract hereby irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase Contracts evidenced by this instrument specified below. The undersigned Holder directs that a certificate for shares of Common Stock or other securities deliverable upon such
Early Settlement be registered in the name of, and delivered, together with a check in payment for any fractional share and any Purchase Contract representing any Purchase Contracts evidenced hereby as to which Early Settlement is not effected, to
the undersigned at the address indicated below unless a different name and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will
pay any transfer tax payable incident thereto. 
  

					
	DATED:
                                         
   	    		  	Signature
                                         
   

 Signature Guarantee:
                                         
                            

  
 B-6

 Number of Purchase Contracts evidenced hereby as to which Early Settlement is being elected:

  

			
	If shares of Common Stock or Purchase Contracts are to be registered in the name of and delivered to a Person other than the Holder, please print such Person’s name and
address:	    	REGISTERED HOLDER
		
		    	Please print name and address of Registered Holder:
		
	  
 Name
	    	  
 Name

		
	 Address
  

 
  

 
	    	 Address
  

 
  

 

		
	Social Security or other Taxpayer Identification Number, if any	    	  

  

  
 B-7

 SCHEDULE A 
 SCHEDULE OF INCREASES OR DECREASES IN THE PURCHASE CONTRACT 
 The initial number
of Purchase Contracts evidenced by this certificate is
                                    . The following increases
or decreases in this certificate have been made: 
  

									
	 Date
	  	Amount of
increase in
number of
Purchase
Contracts
evidenced
hereby	  	Amount of
decrease in
number of
Purchase
Contracts
evidenced
hereby	  	Number of
Purchase
Contracts
evidenced
hereby
following such
decrease
or
increase	  	Signature
of
authorized
signatory of
Purchase
Contract
Agent

  
 B-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}]]