Document:

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                                                                   EXHIBIT 10.15

                                    [FORM OF]

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT dated as of this ______ day of October 2003
("Escrow Agreement") is by and among Sardy House, LLC, a Colorado limited
liability company ("Sardy House"), North and South Aspen, L.L.C., a Colorado
limited liability company which owns all 25 of the outstanding limited liability
company membership interests of Sardy House ("North South"), W. G. Nielsen &
Company, a Colorado corporation ("Underwriter"), and Computershare Trust
Company, Inc., a Colorado corporation, as Escrow Agent ("Escrow Agent").
Collectively, Sardy House and North South are hereinafter referred to as the
"Issuer."

                                   BACKGROUND

         A. The Issuer is conducting a public offering through the Underwriter
of up to the total of 25 limited liability company membership interests of Sardy
House ("Membership Interests") held by North South, which constitute all of the
issued and outstanding Membership Interests.

         B. The offering is being conducted on a "best efforts, all or none"
basis as to a minimum offering of seven (7) Membership Interests necessary to
allow for complete repayment of the bank debt of up to $4,350,000 on the Sardy
House property, the sale of which seven (7) Membership Interests must result in
total proceeds of a minimum of $4,665,000 before any commissions and referral
fees and excluding accrued interest on the bank debt to be repaid, and on a
"best efforts" basis as to the remaining 18 Membership Interests up to the
maximum offering of 25 Membership Interests. If a minimum of seven (7)
Membership Interests are not sold by April 30, 2004, subject to extension for up
to an additional 30 days, the offering will be terminated and all money received
shall be returned to investors with interest within five (5) business days.
Until the minimum offering is achieved, all funds received from investors shall
be deposited into an interest bearing escrow account, with interest to be
credited toward the final purchase price.

         C. In connection with the offering, Sardy House has filed a
Registration Statement on Form SB-2 (Registration No. 333-105521) (together with
all amendments thereto, the "Registration Statement") with the Securities and
Exchange Commission (the "SEC").

         D. Persons who purchase Membership Interests in the offering will be
required to do so pursuant to a Subscription Agreement, the form of which is
attached as Exhibit A to this Escrow Agreement (the "Subscription Agreement")
(such persons who purchase the Membership Interests pursuant to the Subscription
Agreement are hereinafter referred to as the "Subscribers").

         E. In accordance with the Subscription Agreement, the Subscribers will
be required to submit full payment for their investment in the Membership
Interests at the time they return the executed Subscription Agreement to the
Issuer or Underwriter.

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         F. The offering price is $750,000 per Membership Interest. This price
may be changed at any time after December 5, 2003. If the offering price is
decreased it will be decreased for all purchasers, and if the offering price is
increased it will be increased for all purchasers who have not as of that date
executed Subscription Agreements and submitted Subscription Funds.

         G. Issuer and Underwriter desire to establish an escrow account with
Escrow Agent for the deposit of funds received from Subscribers in order to
comply with Rule 10b-9 and Rule 15c2-4 of the rules promulgated by the SEC under
the Securities Exchange Act of 1934.

         H. All payments for Subscriptions for Membership Interests
("Subscription Funds") and the executed Subscription Agreements received by
Issuer or Underwriter shall be promptly forwarded, by no later than noon of the
next business day after receipt, to Escrow Agent, and Escrow Agent has agreed to
accept, hold and disburse such Subscription Funds deposited with it in
accordance with the terms of this Escrow Agreement.

         I. In order to establish the escrow of Subscription Funds and to effect
the consummation of the transactions contemplated by the Subscription
Agreements, the parties hereto have entered into this Escrow Agreement.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, for
themselves, their successors and assigns, hereby agree as follows:

         1. Certain Definitions. The following terms shall have the following
meanings when used herein:

         "Cash Investment" shall mean the number of Membership Interests
subscribed for by a Subscriber multiplied by the Purchase Price (as defined
below) per Membership Interest, as set forth in the Subscription Agreement
submitted by such Subscriber.

         "Construction Loan Agreement" shall mean that certain Construction Loan
Agreement dated March 28, 2003 among Sardy House, North South and WestStar Bank,
as amended.

         "Effective Date" shall mean the date on which the Registration
Statement is declared effective by the SEC.

         "Entire Offering" shall mean the sale of all 25 Membership Interests
offered.

         "Escrow Account" shall mean the interest bearing account entitled
"Computershare Trust Company, Inc., as Escrow Agent for Sardy House, LLC"
established by the Escrow Agent with a bank.

         "Escrow Funds" shall mean the Subscription Funds deposited with Escrow
Agent pursuant to this Escrow Agreement, together with any interest and other
income thereon.

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         "Escrow Period" shall have the meaning set forth in Section 3 of this
Escrow Agreement.

         "Maximum Offering Notice" shall mean a written notification, signed by
the Issuer, which shall specify that: (a) subscriptions for the Entire Offering
have been received and accepted; and (b) such subscriptions have not been
withdrawn, rejected or otherwise terminated.

         "Membership Interests" shall have the meaning set forth in the Section
of this Escrow Agreement titled "Background."

         "Minimum Offering" shall mean the sale of seven (7) Membership
Interests, which shall result in the receipt of total Subscription Funds of a
minimum of $4,665,000 before any commissions and referral fees, which total
represents the total minimum Subscription Funds necessary to upon release from
escrow enable North South to, as disclosed in the prospectus included in the
Registration Statement, (a) pay all commissions and referral fees in connection
with the sale of such Membership Interests and (b) completely repay the total
indebtedness of the Issuer to WestStar Bank of up to $4,350,000 pursuant to the
Construction Loan Agreement.

         "Minimum Offering Notice" shall mean a written notification, signed by
the Issuer, which shall specify that: (a) subscriptions for the Minimum Offering
have been received and accepted; and (b) such subscriptions have not been
withdrawn, rejected or otherwise terminated.

         "Purchase Price" shall mean the purchase price for each Membership
Interest as determined by the Issuer, which Purchase Price is initially $750,000
but may be changed by Issuer at any time after December 5, 2003. If the Purchase
Price is decreased it shall be decreased for all purchasers, and if the Purchase
Price is increased it shall be increased for all purchasers who have not as of
that date executed Subscription Agreements and submitted Subscription Funds.

         "Subscribers" shall have the meaning set forth in the Section of this
Escrow Agreement titled "Background."

         "Subscription Accounting" shall mean an accounting of all subscriptions
for Membership Interests received and accepted by Issuer as of the date of such
accounting, indicating for each subscription the Subscriber's name, address and
taxpayer identification number, the number and total purchase price of
subscribed Membership Interests, any withdrawal of such subscription by the
Subscriber, any rejection of such subscription by the Issuers, or other
termination, for whatever reason, of such subscription.

         "Subscription Funds" shall have the meaning set forth in the Section of
this Escrow Agreement titled "Background."

         2. Appointment of and Acceptance by Escrow Agent and Establishment of
Escrow Account. Issuer hereby appoints Escrow Agent to serve as escrow agent
hereunder, and Escrow Agent hereby accepts such appointment in accordance with
the terms of this Escrow Agreement. In accepting such appointment, Escrow Agent
represents and warrants that it is a "bank," as that term is defined in Section
3(a)(6) of the Securities Exchange Act of 1934.

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         Prior to the Effective Date, the parties hereto shall establish the
Escrow Account. The Issuer and the Underwriter shall instruct Subscribers to
make payments for Subscription Funds either by wire transfer or check payable to
"Computershare Trust Company, Inc., as Escrow Agent for Sardy House, LLC." Wire
transfers shall be directed to the following account:

                  Bank: ______________________________________
                  ABA #:  ____________________________________
                  Account #:  ________________________________
                  Account Name: Computershare Trust Company, Inc., as Escrow
                                Agent for Sardy House, LLC

Any check received that is made payable to a party other than Escrow Agent shall
be returned to the person who submitted the check.

         3. Deposits into Escrow Account and Escrow Period.

            (a) Deposits into Escrow Account. After the Effective Date, Issuer
         and Underwriter shall forward to Escrow Agent, by no later than noon of
         the next business day after receipt, (i) the Subscription Funds and
         Subscription Agreements received by Issuer or Underwriter for deposit
         into the Escrow Account and (ii) the appropriate IRS Form W-9s or Form
         W-8s (or Escrow Agent's substitute forms therefor) for each Subscriber
         that are required to be executed and delivered by each Subscriber
         pursuant to the terms of the Subscription Agreement. Escrow Agent
         agrees to deposit into the Escrow Account, upon the receipt thereof,
         any and all Subscription Funds, including all checks and other
         instruments and monies payable to Escrow Agent as escrow agent
         therefor. Escrow Agent is hereby authorized to forward each check or
         other instrument for collection, and upon collection of the proceeds of
         each check or other instrument deposit the collected proceeds into the
         Escrow Account.

                  ALL FUNDS SO DEPOSITED SHALL REMAIN THE PROPERTY OF THE
                  SUBSCRIBERS ACCORDING TO THEIR RESPECTIVE INTERESTS AND
                  SHALL NOT BE SUBJECT TO ANY LIEN OR CHARGE BY ESCROW
                  AGENT OR BY JUDGMENT OR CREDITORS' CLAIMS AGAINST ISSUER
                  UNTIL RELEASED TO ISSUER IN ACCORDANCE WITH SECTION 5(a)
                  HEREOF.

            No party shall accept any funds from Subscribers prior to the
         Effective Date. Upon receipt of any Subscription Funds which are not
         equal to the proper Cash Investment for such subscription or if a
         notice of insufficient funds has been received by Escrow Agent for a
         check for such Subscription Funds, Escrow Agent's sole obligation shall
         be to notify Issuer of such fact and to return such Subscription Funds
         to Issuer. If Issuer rejects any subscription for which the Escrow
         Agent has already deposited Subscription Funds into the Escrow Account,
         the Escrow Agent shall promptly issue a check payable to the Subscriber
         in the amount of the Subscriber's subscription check plus

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         interest earned on such funds, after the Escrow Agent has cleared such
         funds, and deliver such check to Issuer. Issuer shall promptly deliver
         such check to the Subscriber.

            (b) Escrow Period for Minimum Offering. The escrow period (the
         "Escrow Period") with respect to the Minimum Offering shall begin with
         the Effective Date and shall terminate upon the earlier of the
         following to occur:

                (i)    The date upon which the Escrow Agent confirms that it has
                       received the Minimum Offering Notice, and the
                       Subscription Funds with respect to such Minimum Offering
                       Notice have been deposited into the Escrow Account; or

                (ii)   5:00 p.m. (Denver, Colorado time) on April 30, 2004,
                       unless extended from time to time in writing by the
                       Issuer and Underwriter for an additional number of days
                       as described in the prospectus included in the
                       Registration Statement, but not to be extended for more
                       than an additional 30 days (as extended, the "Expiration
                       Date"), if Subscription Funds with respect to the Minimum
                       Offering have not been deposited into the Escrow Account
                       by the Expiration Date; or

                (iii)  The date upon which Escrow Agent receives written notice
                       from Issuer of a determination to terminate the offering
                       prior to completion of the Minimum Offering.

            (c) Escrow Period for Subscription Funds Received After Completion
         of Minimum Offering. The Escrow Period with respect to any Subscription
         Funds received and deposited into the Escrow Account after the Minimum
         Offering has been completed shall be as set forth in the provisions for
         such Subscription Funds in Section 5(a)(ii) of this Escrow Agreement.

         4. Investment of Escrow Funds. Prior to the disbursement of Escrow
Funds pursuant to Section 5 of this Escrow Agreement, the Escrow Funds shall be
invested only as directed in writing by Issuer. The Issuer may only direct
investments in the following:

            (a)  short-term securities issued or guaranteed by the United States
                 of America Government or of any agency thereof and backed by
                 the full faith and credit of the United States of America;

            (b)  bank accounts or bank money-market accounts with commercial
                 banks with capital, surplus and undivided profits aggregating
                 in excess of $1 billion (based on the most recent financial
                 statements of such bank which are then publicly available at
                 the SEC or otherwise); or

            (c)  short-term certificates of deposit issued by a commercial bank
                 with a combined capital and surplus (or parent holding company
                 of which has a combined capital and surplus) of at least
                 $50,000,000.

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         In the absence of specific written instructions by the Issuer, the
Escrow Agent shall invest and reinvest the Escrow Funds in bank money-market
accounts as set forth in paragraph (b) of this Section 4.

         5. Disbursements of Escrow Funds.

            (a)  Completion of Offering.

                (i) Completion of Minimum Offering. Escrow Agent shall pay to
            North South by wire transfer the amount of the Escrow Funds equal to
            the Purchase Price multiplied by the number of Membership Interests
            purchased in the Minimum Offering, excluding interest and other
            income earned on the Escrow Funds, and deliver all documents and
            instruments, including certificates representing the Membership
            Interests for the Subscribers, no later than three (3) business days
            following receipt by Escrow Agent of the following items:

                     (1)  The Minimum Offering Notice;
                     (2)  A Subscription Accounting, substantiating the sale of
                          the Minimum Offering;
                     (3)  Subscription Agreements signed by all Subscribers;
                     (4)  Certificates representing the Membership Interests for
                          the Subscribers;
                     (5)  Such other certificates, notices or other documents as
                          Escrow Agent, in its discretion, shall reasonably
                          require and shall have requested from Issuer in
                          writing; and
                     (6)  Cleared Subscription Funds.

            At such time that Escrow Agent pays to North South in accordance
            with the above terms the value of the Escrow Funds equal to the
            Purchase Price multiplied by the number of Membership Interests
            purchased in the Minimum Offering, excluding interest and other
            income earned on such Escrow Funds, Escrow Agent shall deliver to
            each Subscriber the certificate representing the Membership
            Interests purchased by such Subscriber. In addition, in order to
            credit the interest and other income earned on the Escrow Funds
            toward the final Purchase Price paid by the Subscribers for their
            Membership Interests, Escrow Agent shall at such time pay by check
            to each Subscriber such Subscriber's pro rata amount of interest and
            other income earned on the Escrow Funds represented by such
            Subscriber's Subscription Funds. Further, if the amount of
            Subscription Funds paid by any Subscriber and deposited into the
            Escrow Account exceeds the final Purchase Price for the Membership
            Interests purchased by such Subscriber, Escrow Agent shall include
            in the amount of the check to such Subscriber the amount by which
            the Subscription Funds paid by such Subscriber and deposited into
            the Escrow Account exceeds the final Purchase Price.

            In connection with the completion of the Minimum Offering and the
            receipt of Escrow Funds from Escrow Agent in connection therewith,
            North South

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            acknowledges that it is solely obligated and responsible for the
            application of such released funds to payment of any commissions and
            referral fees in connection with the sale of the Membership
            Interests and to complete repayment of the outstanding indebtedness
            of the Issuer to WestStar Bank under the Construction Loan
            Agreement, as disclosed in the prospectus included in the
            Registration Statement.

                (ii) Subscription Funds Received After Completion of Minimum
            Offering. Commencing 14 days after the completion of the Minimum
            Offering, Escrow Agent shall pay to North South by wire transfer the
            amount of the Escrow Funds equal to the Purchase Price multiplied by
            the number of Membership Interests purchased after the completion of
            the Minimum Offering, excluding interest and other income earned on
            the Escrow Funds, no later than three (3) business days following
            receipt by the Escrow Agent of the items set forth in Sections
            5(a)(i)(2), (3), (4), (5) and (6) above with respect to Subscription
            Funds received after the completion of the Minimum Offering (with
            the document set forth in Section 5(a)(i)(2) not subject to a
            requirement to re-substantiate the sale of the Minimum Offering).

            At such time that Escrow Agent pays to North South in accordance
            with the above terms the value of the Escrow Funds equal to the
            Purchase Price multiplied by the number of Membership Interests
            purchased after completion of the Minimum Offering, excluding
            interest and other income earned on such Escrow Funds, Escrow Agent
            shall deliver to each Subscriber the certificate representing the
            Membership Interests purchased by such Subscriber. In addition, in
            order to credit the interest and other income earned on the Escrow
            Funds toward the final Purchase Price paid by the Subscribers for
            their Membership Interests, Escrow Agent shall at such time pay by
            check to each Subscriber such Subscriber's pro rata amount of
            interest and other income earned on the Escrow Funds represented by
            such Subscriber's Subscription Funds. Further, if the amount of
            Subscription Funds paid by any Subscriber and deposited into and
            remaining in the Escrow Account exceeds the final Purchase Price for
            the Membership Interests purchased by such Subscriber, Escrow Agent
            shall include in the amount of the check to such Subscriber the
            amount by which the Subscription Funds paid by such Subscriber and
            deposited into and remaining in the Escrow Account exceeds the final
            Purchase Price.

            In connection with the receipt of Escrow Funds from Escrow Agent
            after the completion of the Minimum Offering, North South
            acknowledges that it is solely obligated and responsible for the
            application of such released funds to payment of any commissions and
            referral fees in connection with the sale of the Membership
            Interests, as disclosed in the prospectus included in the
            Registration Statement.

            The foregoing process for Subscription Funds received after the
            completion of the Minimum Offering may be repeated every 14 days
            until receipt of the Maximum Offering Notice or the termination or
            expiration of the offering.

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            Notwithstanding the foregoing, Escrow Agent shall not be obligated
            to disburse the Escrow Funds to North South if Escrow Agent
            reasonably believes that (i) Subscription Funds in full payment
            equal to the required Cash Investment based on the Purchase Price
            for that number of Membership Interests equal to or greater than the
            Minimum Offering have not been received, deposited with and
            collected by Escrow Agent, subject to the right of Issuer to
            consummate the sale of some, but not all, of the Membership
            Interests (subject to the Minimum Offering condition) or (ii) any of
            the certifications and opinions set forth in the documents furnished
            to Escrow Agent are incorrect or incomplete.

                (b) Termination of the Offering. No later than five (5)
            business days after the receipt by Escrow Agent of written notice
            from Issuer of a determination to terminate the offering and that
            there will be no closing or further closing of the sale of
            Membership Interests to Subscribers, Escrow Agent shall pay to each
            Subscriber, by bank draft and by first class mail, that portion of
            the Escrow Funds equal to the amount of the Subscription Funds paid
            by such Subscriber and deposited into the Escrow Account, plus
            interest and other income earned thereon.

                (c) Rejection or Withdrawal of Subscriptions. No later than
            five (5) business days after receipt by Escrow Agent of written
            notice from Issuer that Issuer has rejected or permitted a
            withdrawal of any Subscription for which Subscription Funds have
            already been deposited into the Escrow Account by Escrow Agent,
            Escrow Agent shall pay to such Subscriber, by bank draft and by
            first class mail, that portion of the Escrow Funds equal to the
            amount of the Subscription Funds paid by such Subscriber and
            deposited into the Escrow Account, plus interest and other income
            earned thereon.

                (d) Expiration of Offering Period. Notwithstanding anything to
            the contrary contained herein, if Escrow Agent shall not have
            received the Minimum Offering Notice and cleared Subscription Funds
            therefore on or before the Expiration Date, Escrow Agent shall,
            within five (5) business days after such date and without any
            further instruction or direction from Issuer, return to each
            Subscriber, by bank draft and by first class mail, that portion of
            the Escrow Funds equal to the amount of the Subscription Funds paid
            by such Subscriber and deposited into the Escrow Account, plus
            interest and other income earned thereon.

         6. Suspension of Performance or Disbursement into Court. If, at any
time, there shall exist any dispute between Issuer, Underwriter, Escrow Agent,
Subscribers or any other person with respect to the holding or disposition of
any portion of the Escrow Funds or any other obligations of Escrow Agent
hereunder, or if at any time Escrow Agent is unable to determine, to Escrow
Agent's sole satisfaction, the proper disposition of any portion of the Escrow
Funds or Escrow Agent's proper actions with respect to its obligations
hereunder, or if Issuer has not within thirty (30) days of the furnishing by
Escrow Agent of a notice of resignation pursuant to Section 7 hereof appointed a
successor Escrow Agent to act hereunder, then Escrow Agent may, in its sole
discretion, take either or both of the following actions:

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            (a) Suspend the performance of any of its obligations under this
         Escrow Agreement until such dispute or uncertainty shall be
         resolved to the sole satisfaction of Escrow Agent or until a successor
         Escrow Agent shall have been appointed (as the case may be); and/or

            (b) Petition (by means of an interpleader action or any other
         appropriate method) any court of competent jurisdiction in Denver,
         Colorado for instructions with respect to such dispute or uncertainty,
         and pay to such court all funds held by it for holding and disposition
         in accordance with the instructions of such court. In determining the
         resolution of such dispute or uncertainty, such court shall apply the
         laws of the State of Colorado.

         Escrow Agent shall have no liability to Issuer, Underwriter,
Subscribers or any other person with respect to any such suspension of
performance or disbursement into court, specifically including any liability or
claimed liability that may arise, or be alleged to have arisen, out of or as a
result of any delay in the disbursement of funds held in the Escrow Account or
any delay in or with respect to any action required or requested of Escrow
Agent.

         7. Resignation and Removal of Escrow Agent. Escrow Agent may resign
from the performance of its duties hereunder at any time by giving thirty (30)
days' prior written notice to Issuer, or may be removed by Issuer, with or
without cause, at any time by Issuer giving prior written notice to Escrow
Agent. Such resignation or removal shall take effect upon the appointment of a
successor Escrow Agent as provided herein below. Upon any such notice of
resignation or removal, Issuer shall appoint a successor Escrow Agent hereunder.
If the Issuer shall fail to appoint a successor Escrow Agent within thirty (30)
days after such notice of resignation or removal, the Escrow Agent shall have
the right to deposit the Escrow Funds to a court of competent jurisdiction for
the appointment of a successor Escrow Agent. Upon the acceptance in writing by a
successor Escrow Agent of any appointment as Escrow Agent hereunder, such
successor Escrow Agent shall thereupon succeed to and become vested with and
subject to all the rights, powers, privileges, duties and obligations of the
former Escrow Agent, and the former Escrow Agent shall be discharged from its
duties and obligations under this Escrow Agreement, but shall not be discharged
from any liability for actions taken as Escrow Agent hereunder prior to such
succession. After any former Escrow Agent's resignation or removal, the
provisions of this Escrow Agreement shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Escrow Agent under this Escrow
Agreement.

         8. Liability of Escrow Agent.

            (a) Escrow Agent shall have no liability or obligation with
         respect to the Escrow Funds other than as set forth in this Escrow
         Agreement, except for any liability which may result from Escrow
         Agent's willful misconduct or gross negligence. Escrow Agent's sole
         responsibility shall be for the safekeeping and disbursement of the
         Escrow Funds in accordance with the terms of this Escrow Agreement.
         Escrow Agent shall have no implied duties or obligations and shall not
         be charged with knowledge or notice of any fact or circumstance not
         specifically set forth herein. Escrow Agent may rely upon any
         instrument, whether bearing original, conformed or facsimile
         signatures, not only as to its

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         due execution, validity and effectiveness, but also as to the truth and
         accuracy of any information contained therein which Escrow Agent shall
         in good faith believe to be genuine, to have been signed or presented
         by the person or parties purporting to sign the same, and to conform to
         the provisions of this Escrow Agreement. In no event shall Escrow Agent
         be liable for incidental, indirect, special, consequential or punitive
         damages. Escrow Agent shall not be obligated to take any legal action
         or commence any proceeding in connection with the Escrow Funds or any
         account in which the Escrow Funds are deposited or this Escrow
         Agreement, or to appear in, prosecute or defend any such legal action
         or proceeding. Without limiting the generality of the foregoing, Escrow
         Agent shall not be responsible for or required to enforce any of the
         terms or conditions of any Subscription Agreement with Subscribers or
         any other agreement between Issuer and/or Subscribers. Escrow Agent
         shall not be responsible or liable in any manner for the performance by
         Issuer or any Subscribers of their respective obligations under any
         Subscription Agreement nor shall Escrow Agent be responsible or liable
         in any manner for the failure of Issuer, Underwriter or any third party
         (including any Subscriber) to honor any of the provisions of this
         Escrow Agreement. Escrow Agent may consult legal counsel selected by it
         in the event of any dispute or question as to the construction of any
         of the provisions hereof or of any other agreement or of its duties
         hereunder, and shall incur no liability and shall be fully indemnified
         from any liability whatsoever in acting in accordance with the opinion
         or instruction of such counsel. Issuer shall promptly pay, upon demand,
         the reasonable fees and expenses of any such counsel.

            (b) Escrow Agent is authorized, in its sole discretion, to comply
         with orders issued or process entered by any court with respect to the
         Escrow Funds, without determination by Escrow Agent of such court's
         jurisdiction in the matter. If any portion of the Escrow Funds is at
         any time attached, garnished or levied upon under any court order, or
         in case the payment, assignment, transfer, conveyance or delivery of
         any such property shall be stayed or enjoined by any court order, or in
         case any order, judgment or decree shall be made or entered by any
         court affecting such property or any part thereof, then and in any such
         event, Escrow Agent is authorized, in its sole discretion, to rely upon
         and comply with any such order, writ, judgment or decree which it is
         advised by legal counsel selected by it that is binding upon it without
         the need for appeal or other action; and if Escrow Agent complies with
         any such order, writ, judgment or decree, it shall not be liable to any
         of the parties hereto or to any other person or entity by reason of
         such compliance even though such order, writ, judgment or decree may be
         subsequently reversed, modified, annulled, set aside or vacated.

         9. Indemnification of Escrow Agent. From and at all times after the
date of this Escrow Agreement, Issuer shall, except as otherwise hereinafter
provided, to the fullest extent permitted by law, indemnify and hold harmless
Escrow Agent and each officer, director, employee, attorney, agent and affiliate
of Escrow Agent (collectively, the "Indemnified Parties") against any and all
actions, claims (whether or not valid), losses, damages, liabilities, costs and
expenses of any kind or nature whatsoever (including without limitation
reasonable attorneys' fees, costs and expenses) incurred by or asserted against
any of the Indemnified Parties from and after the date hereof, whether direct,
indirect or consequential, as a result of, arising from or in any way relating
to any claim, demand, suit, action or proceeding (including any inquiry or

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investigation) by any person, including without limitation Issuer or
Subscribers, whether threatened or initiated, asserting a claim for any legal or
equitable remedy against any person under any statute or regulation, including,
but not limited to, any federal or state securities laws, or under any common
law or equitable cause or otherwise, arising from or in connection with the
negotiation, preparation, execution, performance or failure of performance of
this Escrow Agreement or any transactions contemplated herein, whether or not
any such Indemnified Party is a party to any such action, proceeding, suit or
the target of any such inquiry or investigation; provided, however, that no
Indemnified Party shall have the right to be indemnified hereunder for any
liability finally determined by a court of competent jurisdiction, subject to no
further appeal, to have resulted solely from the gross negligence or willful
misconduct of such Indemnified Party. If any such action or claim shall be
brought or asserted against any Indemnified Party, such Indemnified Party shall
promptly notify Issuer in writing and Issuer shall promptly assume and enter an
appropriate defense for such Indemnified Party, including the employment of
counsel (reasonably satisfactory to such Indemnified Party) and the payment of
all expenses. Such Indemnified Party shall, in its sole discretion, have the
right to employ separate counsel (who may be selected by such Indemnified Party
in its sole discretion) in any such action and to participate in the defense
thereof, and the fees and expenses of such counsel shall be paid by such
Indemnified Party, except that Issuer shall be liable for and shall pay all such
fees and expenses if (i) Issuer agrees to pay such fees and expenses, (ii)
Issuer shall fail, in the reasonable discretion of such Indemnified Party, to
employ counsel reasonably satisfactory to the Indemnified Party in any such
action or proceeding, (iii) Issuer is the plaintiff in any such action or
proceeding, or (iv) the named parties to any such action or proceeding
(including any impleaded parties) include both Indemnified Party and Issuer, and
Indemnified Party shall have been advised by counsel that there may be one or
more legal defenses available to it which are different from or additional to
those available to Issuer. All such fees and expenses payable by Issuer pursuant
to the foregoing sentence shall be paid from time to time as incurred, both in
advance of and after the final disposition of such action or claim. The
obligations of Issuer under this Section 9 shall survive any termination of this
Escrow Agreement and the resignation or removal of Escrow Agent.

         10. Compensation to Escrow Agent.

             (a) Fees. Issuer shall pay to Escrow Agent the fees set forth in
         the attached Exhibit B to this Escrow Agreement.

             (b) No Disbursements from Escrow Funds to Pay Escrow Agent or
         Other Parties. Escrow Agent is not authorized to disburse to itself or
         any other person from the Escrow Funds (i) any amounts due to Escrow
         Agent or any other party under this Section 10 or (ii) any amount
         Escrow Agent or any Indemnified Party is entitled to seek pursuant to
         Section 9 hereof. Notwithstanding the foregoing, Escrow Agent may hold
         Escrow Funds until its fees are paid by Issuer.

         11. Representations and Warranties. The Issuers make the following
representations and warranties to Escrow Agent:

             (a) Each Issuer is a limited liability company duly formed and
         validly subsisting under the laws of the State of Colorado, and each
         Issuer has full power and

                                       11
<PAGE>

         authority to execute and deliver this Escrow Agreement and to perform
         its obligations hereunder.

             (b) This Escrow Agreement has been duly approved by all necessary
         limited liability company action of each Issuer, including any
         necessary approval by the members of each Issuer, has been executed by
         duly authorized managers of each Issuer, and constitutes a valid and
         binding agreement of each Issuer, enforceable in accordance with its
         terms (except as limited by bankruptcy, insolvency, or other laws
         affecting the enforcement of creditors' rights).

             (c) The execution, delivery and performance by each Issuer of this
         Escrow Agreement will not violate, conflict with, or cause a default
         under the articles of organization or the operating agreement of either
         Issuer, any applicable law or regulation, any court order or
         administrative ruling or decree to which either Issuer is a party or
         any of its property is subject, or any agreement, contract, indenture
         or other binding arrangement to which either Issuer is a party or any
         of its property is subject.

             (d) No party other than the parties hereto and the prospective
         Subscribers have, or shall have, any lien, claim or security interest
         in the Escrow Funds or any part thereof. No financing statement under
         the Uniform Commercial Code is on file in any jurisdiction claiming a
         security interest in or describing (whether specifically or generally)
         the Escrow Funds or any part thereof.

             (e) Each Issuer hereby acknowledges that the status of Escrow
         Agent is that of agent only for the limited purposes set forth herein,
         and hereby represents and covenants that no representation or
         implication shall be made that Escrow Agent has investigated the
         desirability or advisability of investment in the Membership Interests
         or has approved, endorsed or passed upon the merits of the investment
         therein and that the name of Escrow Agent has not and shall not be used
         in any manner in connection with the offer or sale of the Membership
         Interests other than to state that Escrow Agent has agreed to serve as
         Escrow Agent for the limited purposes set forth herein, as disclosed in
         the prospectus included in the Registration Statement.

             (f) All of the representations and warranties of each Issuer
         contained herein are true and complete as of the date hereof and will
         be true and complete at the time of any deposits to or disbursement
         from the Escrow Funds.

         12. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed to have been validly served, given or delivered five
(5) days after deposit in the United States mail, by certified mail with return
receipt requested and postage prepaid, when delivered personally, one (1) day
after delivery to any overnight courier, or when transmitted by facsimile
transmission facilities, and addressed to the party to be noticed as follows:

                                       12
<PAGE>

              If to                 Issuer:North and South Aspen, L.L.C.
                                    c/o Hotel Lenado
                                    200 S. Aspen Street
                                    Aspen, Colorado 81611
                                    Attn: Mr. Daniel D. Delano
                                    Fax: (970) 925-3840

              With a copy to:       Roger V. Davidson, Esq.
                                    Ballard Spahr Andrews & Ingersoll, LLP
                                    1225 Seventeenth Street, Suite 2300
                                    Denver, Colorado 80202
                                    Fax: (303) 296-3956

              If to Underwriter:    W. G. Nielsen & Company
                                    3200 Cherry Creek South Drive, Suite 470
                                    Denver, Colorado 80209
                                    Attn: Mr. Wayne G. Nielsen
                                    Fax: (303) 830-6620

              With a copy to:       Philip A. Feigin, Esq.
                                    Rothgerber Johnson & Lyons LLP
                                    One Tabor Center, Suite 3000
                                    1200 Seventeenth Street
                                    Denver, Colorado 80202
                                    Fax: (303) 623-9222

              If to Escrow Agent:   Computershare Trust Company, Inc.
                                    350 Indiana Street, Suite 800
                                    Golden, Colorado 80401
                                    Attn: Corporate Trust
                                    Fax: (303) 262-0700

or to such other address as each party may designate for itself by like notice.

         13. Amendments or Waiver. This Escrow Agreement may be changed, waived
or discharged only by a writing signed by all of the parties hereto. No delay or
omission by any party in exercising any right with respect thereto shall operate
as a waiver. A waiver on any one occasion shall not be construed as a bar to, or
waiver of, any right or remedy on any future occasion.

         14. Severability. To the extent any provision of this Escrow Agreement
is prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Escrow Agreement.

                                       13
<PAGE>

         15. Governing Law. This Escrow Agreement shall be construed and
interpreted in accordance with the internal laws of the State of Colorado
without giving effect to the principles or rules governing conflict of laws.

         16. Entire Agreement. This Escrow Agreement constitutes the entire
agreement among the parties relating to the acceptance, collection, holding,
investment and disbursement of the Escrow Funds and sets forth in its entirety
the obligations and duties of Escrow Agent with respect to the Escrow Funds.

         17. Assignability. This Escrow Agreement shall not be assignable
without the written consent of all of the parties hereto.

         18. Binding Effects. All of the terms of this Escrow Agreement, as it
may be amended from time to time, shall be binding upon, inure to the benefit of
and be enforceable by the respective successors and permitted assigns of Issuer,
Underwriter, Subscribers and Escrow Agent.

         19. Execution in Counterparts. This Escrow Agreement may be executed in
two or more counterparts, which when so executed shall constitute one and the
same agreement.

         20. Termination. This Escrow Agreement may be terminated at any time by
a written document signed by all of the parties hereto. Upon the first to occur
of (a) the disbursement of all amounts of Escrow Funds pursuant to Section 5
hereof or (b) the disbursement of all amounts of Escrow Funds into a court
pursuant to Section 6 hereof, this Escrow Agreement shall terminate and Escrow
Agent shall have no further obligation or liability whatsoever with respect to
this Escrow Agreement or the Escrow Funds.

         21. Dealings. Escrow Agent and any stockholder, director, officer or
employee of Escrow Agent may buy, sell and deal in any of the securities of
Issuer and become pecuniarily interested in any transaction in which Issuer may
be interested, and contract and lend money to Issuer and otherwise act as fully
and freely as though it were not Escrow Agent under this Escrow Agreement.
Nothing herein shall preclude Escrow Agent from acting in any other capacity for
the Subscribers or any other person or entity.

         22. Signatures by Facsimile. Any facsimile signature of any party
hereto shall constitute a legal, valid and binding execution hereof by such
party.

                  [Remainder of page intentionally left blank]

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Escrow
Agreement to be executed as of the date first above written.

ISSUER:

SARDY HOUSE, LLC,                           NORTH AND SOUTH ASPEN, L.L.C.,
a Colorado limited liability company        a Colorado limited liability company

     By: BLOCK 66, LLC,                     By:
         a Colorado limited liability          ---------------------------------
         company, its Manager                  Daniel D. Delano, Manager
         its Manager

         By:
            -------------------------
            Daniel D. Delano, Manager

UNDERWRITER:

W. G. NIELSEN & COMPANY,
a Colorado corporation

By:
   ----------------------------------
   Wayne G. Nielsen, President

ESCROW AGENT:

COMPUTERSHARE TRUST COMPANY, INC.,
a Colorado corporation,
as Escrow Agent

By:
   ----------------------------------
Name:
     --------------------------------
Title:
      -------------------------------

By:
   ----------------------------------
Name:
     --------------------------------
Title:
      -------------------------------

                                       15
<PAGE>

                                    EXHIBIT A

                             SUBSCRIPTION AGREEMENT

[Form of Subscription Agreement]

                                      A-1
<PAGE>

                                    EXHIBIT B

                        COMPUTERSHARE TRUST COMPANY, INC.
                                SARDY HOUSE, LLC
                            ESCROW AGENT FEE SCHEDULE

<TABLE>
<S>                                                                    <C>
Account Acceptance and Annual Administrative Fee                       $5,000

         The above fee includes the following services:

         o  Receipt of the Subscription Agreements
         o  Processing the Subscription Funds
         o  Verification of the Collection of Subscription Funds

Subscription Agreements Received and Reviewed                          $10 each.

Deposit for Return of Funds to Subscribers                             $150

Return of Funds to Subscribers                                         $20 each

         The above fee is required in the event the following services are
required:

         o  Check issuance
         o  Calculation of Interest earned and paid to Subscribers
         o  1099's issued to Subscribers
         o  Bank Reconciliation
         o  Stationary and Supply Expense
         o  Out-of-Pocket Expense

Tax Reporting - Transmittal of Information to IRS                      $250
1099 Issuance                                                          $1.75 per form

Out-of-Pocket Expenses                                                 At cost
         o  Included but not limited to: attorney fees, printing, stationary, express mail charges,
            wire transfer fees and postage.
</TABLE>

THE ACCEPTANCE, ANNUAL AND DEPOSIT FEES ARE PAYABLE AT THE CLOSING OF THE
ESCROW. Special or extraordinary events, such as amendments to the documents or
disputes are not included in the above fees, and we reserve the right to charge
an additional amount based on the time incurred in handling such events should
they occur. Late charges are 1 1/2% per month on outstanding balances owing 45
days from date of invoice.

                                      B-1exv4w2

 

Exhibit 4.2

CENTEX CORPORATION

Issuer

and

JPMORGAN CHASE BANK

(formerly The Chase Manhattan Bank)

Trustee

INDENTURE SUPPLEMENT NO. 13

Dated as of October 6, 2003

to

INDENTURE

Dated as of October 1, 1998

5.125% Senior Notes due October 1, 2013

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 
	 	 	 	Page
	 	 	 	

	ARTICLE ONE DEFINITIONS
	 	 	1	 
	ARTICLE TWO TERMS AND ISSUANCE OF THE NOTES
	 	 	3	 
	 	Section 2.01. Issuance and Designation
	 	 	3	 
	 	Section 2.02. Form and Other Terms of Notes; Incorporation of Terms
	 	 	3	 
	 	Section 2.03. Place and Method of Payment
	 	 	3	 
	ARTICLE THREE ADDITIONAL COVENANTS
	 	 	4	 
	 	Section 3.01. Limitation on Liens
	 	 	4	 
	 	Section 3.02. Limitation on Sale and Lease-Back Transactions
	 	 	6	 
	ARTICLE FOUR DEFEASANCE
	 	 	6	 
	 	Section 4.01. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	6	 
	 	Section 4.02. Legal Defeasance
	 	 	6	 
	 	Section 4.03. Covenant Defeasance
	 	 	7	 
	 	Section 4.04. Conditions to Covenant Defeasance
	 	 	7	 
	ARTICLE FIVE MISCELLANEOUS
	 	 	8	 
	 	Section 5.01. Ratification of Indenture
	 	 	8	 
	 	Section 5.02. Redemption
	 	 	8	 
	 	Section 5.03. Conflict with Trust Indenture Act
	 	 	8	 
	 	Section 5.04. Effect of Headings
	 	 	8	 
	 	Section 5.05. Counterparts
	 	 	8	 
	 	Section 5.06. Severability
	 	 	8	 
	 	Section 5.07. Benefits of Indenture Supplement
	 	 	8	 
	 	Section 5.08. Acceptance of Trusts
	 	 	9	 
	 	Section 5.09. Governing Law
	 	 	9	 

EXHIBIT A - Form of Note

i

 

          INDENTURE SUPPLEMENT NO. 13 (“Indenture Supplement”), dated as of October
6, 2003, between CENTEX CORPORATION, a Nevada corporation (together with its
successors and assigns as provided in the Indenture referred to below, the
“Company”), and JPMORGAN CHASE BANK, a New York banking corporation (formerly,
The Chase Manhattan Bank, successor to Chase Bank of Texas, National
Association) (together with its successors in trust thereunder as provided in
the Indenture referred to below, the “Trustee”), as trustee under an Indenture
dated as of October 1, 1998 (the “Indenture”).

PRELIMINARY STATEMENT

          Section 2.02 of the Indenture provides, among other things, that the
Company may, when authorized by its Board of Directors, and the Trustee may at
any time and from time to time, enter into a series supplement to the Indenture
for the purpose of authorizing one or more Series of Senior Debt Securities and
to specify certain terms of each such Series of Senior Debt Securities. The
Board of Directors of the Company has duly authorized the creation of a Series
of Senior Debt Securities to be known as the Company’s 5.125% Senior Notes due
2013 (the “Notes”), and the Company and the Trustee are executing and
delivering this Indenture Supplement in order to provide for the issuance of
the Notes.

ARTICLE ONE

Definitions

          Except to the extent such terms are otherwise defined in this Indenture
Supplement or the context clearly requires otherwise, all terms used in this
Indenture Supplement which are defined in the Indenture or the form of Note
attached hereto as Exhibit A, either directly or by reference therein, shall
have the meanings assigned to them therein.

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

CONSOLIDATED NET TANGIBLE ASSETS:

          The term “Consolidated Net Tangible Assets” shall mean the aggregate
amount of assets included on the most recent consolidated balance sheet of the
Company and its subsidiaries, less applicable reserves and other properly
deductible items and after deducting therefrom (a) all current liabilities and
(b) all goodwill, trade names, trademarks, patents, unamortized debt discount
and expense, and other like intangibles, all in accordance with generally
accepted accounting principles consistently applied.

DEPOSITARY:

          The term “Depositary” shall mean, unless otherwise specified by the
Company, The Depository Trust Company, New York, New York, or any successor
thereto registered as a Clearing Agency under the Securities Exchange Act of
1934, as amended, or any successor statute or regulation.

 

 

FUNDED INDEBTEDNESS:

          The term “Funded Indebtedness” shall mean notes, bonds, debentures or
other similar evidences of indebtedness for money borrowed which by their terms
mature at or are extendible or renewable at the option of the obligor to a date
more than 12 months after the date of the creation of such debt.

GLOBAL SECURITY:

          The term “Global Security” shall mean a single Note that is issued to
evidence Notes having identical terms and provisions, which is delivered to the
Depositary or pursuant to instructions of the Depositary and which shall be
registered in the name of the Depositary or its nominee.

INTEREST PAYMENT DATE:

          The term “Interest Payment Date” means the Stated Maturity of an
installment of interest on the Notes.

MATURITY DATE:

          The term “Maturity Date,” when used with respect to any Note, shall mean
the date on which the principal of such Note becomes due and payable in
accordance with its terms and the terms of this Indenture as therein or herein
provided, whether at Stated Maturity, upon declaration of acceleration, call
for redemption or otherwise.

NOTEHOLDER; HOLDER:

          The terms “Noteholder” or “Holder” shall mean any Person in whose name at
the time a particular Note is registered in the Senior Debt Security Register
kept for that purpose in accordance with the terms hereof.

REGULAR RECORD DATE:

          The term “Regular Record Date” for the interest payable on any Interest
Payment Date shall mean the day which is fifteen calendar days immediately
prior to such Interest Payment Date, whether or not such day is a business day.

REDEMPTION DATE:

          The term “Redemption Date” for a Note shall mean the date fixed for the
redemption of such Note in accordance with the provisions of this Indenture
Supplement.

2

 

SPECIAL RECORD DATE:

          The term “Special Record Date” for the payment of any defaulted interest
means a date which is not less than ten and not more than fifteen calendar days
immediately preceding the Interest Payment Date of defaulted interest on such
Note established by notice given by first class mail by or on behalf of the
Company to the Holder of such Note not less than fifteen calendar days prior to
such Special Record Date.

STATED MATURITY:

          The term “Stated Maturity” means, when used with respect to any Note or
any installment of interest thereon (including defaulted interest), the date
specified in such Note as the fixed date upon which the principal of such Note
or such installment of interest is due and payable.

ARTICLE TWO

Terms and Issuance of the Notes

          Section 2.01. Issuance and Designation. A Series of Senior Debt
Securities which shall be designated as the Company’s “5.125% Senior Notes due
2013” shall be executed, authenticated and delivered in accordance with the
provisions of, and shall in all respects be subject to, the terms, conditions
and covenants of, the Indenture and this Indenture Supplement (including the
form of Note set forth in Exhibit A). The aggregate principal amount of the
Notes which may be authenticated and delivered under this Indenture Supplement
shall not, except as permitted by the provisions of the Indenture, exceed
$300,000,000, provided that the Company may, without the consent of the Holders
of the Notes, reopen this Series and issue additional Notes under the Indenture
and this Indenture Supplement in addition to the $300,000,000 of Notes
authorized as of the date hereof.

          Section 2.02. Form and Other Terms of Notes; Incorporation of Terms. The
Notes shall be substantially in the form attached hereto as Exhibit A. The
terms of such Notes are herein incorporated by reference and are part of this
Indenture Supplement.

          Section 2.03. Place and Method of Payment. The place of payment in
respect of the Notes will be at the principal office or agency of the Company
in Dallas, Texas or at the office or place of business of the Trustee or its
successor in trust under the Indenture, which, at the date hereof, is located
at Chase Global Trust, 450 W. 33rd Street, 15th Floor, New York, New York
10001. Payments in respect of principal or premium, if any, on Notes will be
made only against surrender of such Notes at such office. Payments of interest
on each Interest Payment Date with respect to each Note will be made to the
Person in whose name such Note is registered at the close of business on the
Regular Record Date immediately preceding such Interest Payment Date by U.S.
dollar check drawn on a bank in the City of New York or, for Holders of at
least $1,000,000 of Notes, by wire transfer to a dollar account maintained by
the payee with a bank in the United States; provided that a written request
from such Holder to such effect

3

 

designating such account is received by the Trustee or the Paying Agent no
later than 30 calendar days preceding such Interest Payment Date. Unless such
designation is revoked, any such designation made by such Holder with respect
to such Note payable to such Holder will remain in effect with respect to any
further interest payments with respect to such Note payable to such Holder.
The Company will pay any administrative costs imposed by banks in connection
with making interest payments by wire transfer.

          So long as the Depositary continues to make its “Same-Day Funds Settlement
System” available to the Company, payments due on Notes represented by a Global
Security registered in the name of the Depositary or its nominee will be made
in immediately available funds to the Depositary or its nominee, as the case
may be, as the registered owner of the Global Security representing such Notes.
The Company expects that the Depositary or its nominee, upon receipt of any
payment, will credit immediately participants’ accounts with payments in
same-day funds in amounts proportionate to their respective beneficial
interests in such payments, as shown on the records of the Depositary or its
nominee. The Company also expects that payments by participants and indirect
participants to owners of beneficial interests in such Global Security held
through such Persons will be governed by standing instructions and customary
practices, as is now the case with securities registered in the name of
nominees for such customers, and will be the responsibility of such
participants and indirect participants.

ARTICLE THREE

Additional Covenants

          Section 3.01. Limitation on Liens. The following provisions shall apply
to the Notes:

		
	 	     (a) The Company will not itself, and will not permit any of its
subsidiaries (other than Centex Financial Services, Inc. and its
subsidiaries) to, issue, assume or guarantee any indebtedness for
borrowed money (“Indebtedness”) if such borrowed money is secured by a
mortgage, pledge, security interest, lien or other encumbrance (any such
mortgage, pledge, security interest, lien or other encumbrance being
hereinafter in this Section 3.01 referred to as a “Lien”) on or with
respect to any of the properties or assets of the Company or any such
subsidiary or on any shares of capital stock or other equity interests of
any subsidiary that owns properties or assets (other than Centex
Financial Services, Inc. and its subsidiaries), whether, in each case,
owned at the date of this Indenture Supplement or thereafter acquired,
unless the Company makes effective provision whereby the Notes are
secured by such Lien equally and ratably with any and all other borrowed
money thereby secured; provided, however, that the foregoing restrictions
shall not be applicable to:

		
	 	     (i) any Lien existing on any of the Company’s properties or
assets or shares of capital stock or other equity interests at the
date of this Indenture Supplement;

4

 

		
	 	     (ii) any Lien created by a subsidiary of the Company in favor
of the Company or any wholly-owned subsidiary;

		
	 	     (iii) any Lien on any property or asset of any corporation or
other entity (or on any accession or improvement to such asset or
any proceeds thereof) existing at the time such corporation or
other entity becomes a subsidiary of the Company or is merged or
consolidated with or into the Company or any of its subsidiaries;

		
	 	     (iv) any Lien on any property or asset existing at the time of
acquisition thereof (or on any accession or improvement to such
property or asset or any proceeds thereof) by the Company or any of
its subsidiaries;

		
	 	     (v) any Lien on any property or asset (or on any accession or
improvement to such property or asset or any proceeds thereof)
securing Indebtedness incurred or assumed for the purpose of
financing all or any part of the cost of acquiring such property or
asset or the making of any improvement thereof; provided that such
Lien attaches to such property or asset concurrently with or within
180 days after the acquisition thereof or the making of such
improvement;

		
	 	     (vi) any Lien incurred in connection with pollution control,
industrial revenue or any similar financing;

		
	 	     (vii) any Lien arising out of the refinancing, extension,
renewal or replacement of any of the Liens permitted by any of
clauses (i) through (vi) above; provided that the principal amount
of the Indebtedness secured by the Lien being refinanced, extended,
reviewed or replaced is not increased and is not secured by any
additional properties or assets; and

		
	 	     (viii) any Lien imposed by law.

		
	 	     (b) Notwithstanding the provisions of subsection (a) of this Section
3.01, the Company or any of its subsidiaries may issue, assume or
guarantee Indebtedness secured by a Lien which would otherwise be subject
to the foregoing restrictions in an aggregate amount which, together with
all other such secured borrowings of the Company and its subsidiaries and
the Attributable Debt (as defined below) in respect of Sale and
Lease-Back Transactions (as defined in Section 3.02) existing at such
time (other than Sale and Lease-Back Transactions not subject to the
limitation contained in Section 3.02), does not at the time exceed twenty
percent (20%) of the Consolidated Net Tangible Assets of the Company and
its subsidiaries, as shown on the audited consolidated balance sheet
contained in the latest annual report to stockholders of the Company.
The term “Attributable Debt” as used in this paragraph shall mean, as of
any particular time, the present value of the obligation of a lessee for
rental payments during the remaining term of any lease (including any
period for which such lease has been extended or may, at the option of
the lessor, be extended).

5

 

          Section 3.02. Limitation on Sale and Lease-Back Transactions. The Company
will not, nor will it permit any of its subsidiaries to, enter into any
arrangement with any Person (other than the Company) providing for the leasing
by the Company or a subsidiary of any of its properties or assets (except for
temporary leases for a term of not more than three (3) years and except for
sales and leases of model homes), which property or asset has been or is to be
sold or transferred by the Company or such subsidiary to such Person (herein
referred to as a “Sale and Lease-Back Transaction”), unless (a) the net
proceeds to the Company or such subsidiary from such sale or transfer equal or
exceed the fair value (as determined by the Board of Directors, the Chairman of
the Board, the Vice Chairman, the President or the principal financial officer
of the Company) of the property or asset so leased, (b) the Company or such
subsidiary would be entitled to incur Indebtedness secured by a Lien on the
property or asset to be leased pursuant to Section 3.01, (c) the Company shall,
and in any such case the Company covenants that it will, apply an amount equal
to the fair value (as determined by the Board of Directors, the Chairman of the
Board, the Vice Chairman, the President or the principal financial officer of
the Company) of the property or asset so leased to the retirement (other than
any mandatory retirement), within 180 days of the effective date of any such
Sale and Lease-Back Transaction, of Funded Indebtedness of the Company, (d)
such Sale and Lease-Back Transaction relates to a sale which occurred within
180 days from the date of acquisition of such property or asset by the Company
or a subsidiary or the date of the completion of construction or commencement
of full operations on such property, whichever is later, or (e) such
transaction was consummated prior to the date of this Indenture Supplement.

ARTICLE FOUR

Defeasance

          Section 4.01. Option to Effect Legal Defeasance or Covenant Defeasance.
The Company may, at any time, with respect to the Notes, elect to have either
Section 13.01 of the Indenture or Section 4.03 of this Indenture Supplement be
applied to all outstanding Notes upon compliance with the conditions set forth
in Article Thirteen of the Indenture and below in this Article Four.

          Section 4.02. Legal Defeasance. Upon the Company’s exercise under Section
4.01 of the option applicable to Section 13.01 of the Indenture, the Company
may terminate its obligations under the Notes, the Indenture and this Indenture
Supplement by complying with the terms and conditions of Section 13.01 of the
Indenture; provided, however, that the Opinion of Counsel delivered to the
Trustee will also state that either (A) the Company has received from, or there
has been published by, the Internal Revenue Service, a ruling or (B) since the
date hereof, there has been a change in the applicable federal income tax law,
in either case to the effect that, and based thereon such Opinion of Counsel
shall confirm that, the Holders of the outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such
defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such
defeasance had not occurred.

6

 

          Section 4.03. Covenant Defeasance. Upon the Company’s exercise under
Section 4.01 of the option applicable to this Section 4.03, the Company shall
be released from its obligations under the covenants contained in Article Three
of this Indenture Supplement with respect to the outstanding Notes on and after
the date the conditions set forth below are satisfied (“Covenant Defeasance”),
and the Notes shall thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, such Covenant Defeasance means that, with respect
to the outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default, but, except as
specified above, the remainder of the Indenture and such Notes shall be
unaffected thereby. In addition, the Company’s exercise under Section 4.01 of
the option applicable to this Section 4.03 shall not constitute an Event of
Default.

          Section 4.04. Conditions to Covenant Defeasance. The following shall be
the conditions to the application of Section 4.03 to the outstanding Notes:

		
	 	     (1) the Company shall irrevocably have deposited or caused to be
deposited with the Trustee under the terms of an irrevocable trust
agreement in form and substance satisfactory to the Trustee, as trust
funds in trust solely for the benefit of the Holders of such Notes for
that purpose, money or direct non-callable obligations of, or
non-callable obligations guaranteed by, the United States of America for
the payment of which guarantee or obligation the full faith and credit of
the United States is pledged (“U.S. Government Obligations”) maturing as
to principal and interest in such amounts and at such times as are
sufficient, as verified in a Certificate of a Firm of Independent Public
Accountants, without consideration of any reinvestment of such interest,
to pay principal of and interest on the outstanding Notes to maturity or
redemption as the case may be, provided that the Trustee or any paying
agent shall have been irrevocably instructed to apply such money or the
proceeds of such U.S. Government Obligations to the payment of said
principal and interest with respect to the Notes. The Company may make an
irrevocable deposit pursuant to this Section 4.04 only if at such time
the Company shall have delivered to the Trustee and any such paying agent
an Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions herein precedent to the satisfaction and discharge of this
Indenture have been complied with and the Opinion of Counsel further
states that the making of such deposit (i) does not contravene or violate
any provision of any indenture, mortgage, loan agreement or other similar
agreement known to such counsel to which the Company is a party or by
which it or any of its property is bound, (ii) does not require
registration by the deposit referred to above under the Investment
Company Act of 1940, as amended, and (iii) to the effect that the Holders
of the outstanding Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such defeasance and will be
subject to federal income tax in the

7

 

		
	 	same amount, in the same manner and at the same times as would have
been the case if such defeasance had not occurred.

		
	 	     (2) Notwithstanding the foregoing paragraph, the Company’s
obligations in Sections 2.06, 2.08, 5.01, 5.02, 5.05, 6.01, 8.06, 8.10,
13.04 and 13.05 of the Indenture shall survive until the Notes are no
longer outstanding. Thereafter, the Company’s obligations in Sections
8.06, 13.04 and 13.05 of the Indenture shall survive.

ARTICLE FIVE

Miscellaneous

          Section 5.01. Ratification of Indenture. As supplemented by this
Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be
read, taken and construed as one and the same instrument.

          Section 5.02. Redemption. Notwithstanding anything contained in the
Indenture, the Company may redeem any of the Notes upon the terms and
conditions contained in the Notes directly or indirectly from or in
anticipation of money borrowed having an interest cost to the Company of less
than the interest rate applicable to the Notes.

          Section 5.03. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof which is required
to be included in this Indenture Supplement by any of the provisions of the
Trust Indenture Act, such required provisions shall control.

          Section 5.04. Effect of Headings. The article and section headings herein
are included for convenience only and shall not affect the construction hereof.

          Section 5.05. Counterparts. This Indenture Supplement may be executed in
any number of counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

          Section 5.06. Severability. In case any provision of this Indenture
Supplement or in the Notes shall be found invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

          Section 5.07. Benefits of Indenture Supplement. Nothing in this Indenture
Supplement or in the Notes, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder and the Holders, any
benefit or any legal or equitable right, remedy or claim under this Indenture
Supplement.

8

 

          Section 5.08. Acceptance of Trusts. The Trustee hereby accepts the trusts
in this Indenture Supplement declared and provided, upon the terms and
conditions herein and in the Indenture set forth.

          Section 5.09. Governing Law. This Indenture Supplement and each Note
issued hereunder shall be deemed to be a contract made under the laws of the
State of Texas, and for all purposes shall be construed in accordance with the
laws of said State.

9

 

          IN WITNESS WHEREOF, the Company and the Trustee have caused this Indenture
Supplement to be duly executed by their respective officers thereunto duly
authorized and their respective seals duly attested to be hereunto affixed all
as of the day and year first above written.

	 	 	 	 	 
	 	 	CENTEX CORPORATION
	[SEAL]	 	 	 	 
	 	 	 	 	 
	 	 	
By: /s/ Lawrence Angelilli
	 	 	

	 	 	
Name:
	 	Lawrence Angelilli
	 	 	
Title:
	 	Senior Vice
President - Finance

	 	 	 
	Attest:	 	 
	 	 	 
	/s/ Paul Johnston
	

	Name:	 	
Paul Johnston
	Title:	 	
Associate General Counsel and
Assistant Secretary

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK
	 	 	(f/k/a The Chase Manhattan Bank), as Trustee
	[SEAL]	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Carol Logan
	 	 	 	 	

	 	 	 	 	Name:
	 	Carol Logan
	 	 	 	 	Title:
	 	Vice President

	 	 	 
	Attest:	 	 
	 	 	 
	/s/ Donna Edmundson
	

	Name:	 	
Donna Edmundson
	Title:	 	
Vice President and Trust Officer

10

 

	 	 	 	 	 
	STATE OF TEXAS	 	 	 	)
	 	 	 	 	)
	COUNTY OF DALLAS	 	 	 	)

          BEFORE ME, the undersigned authority, a Notary Public in and for said
state, on this day personally appeared Paul Johnston and Lawrence Angelilli,
known to me to be the persons and officers whose names are subscribed to the
foregoing instrument and acknowledged to me that the same was the act of the
said CENTEX CORPORATION, a Nevada corporation, and that they executed the same
as the act of said corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.

          GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 6th day of October, 2003.

	 	 	 
	 	 	
/s/ Candie C. Nelson
	 	 	

	 	 	
Notary Public in and for the State of Texas
	 	 	 
	 	 	
Candie C. Nelson
	 	 	

	 	 	
Printed Name of Notary Public

My commission expires:

1/18/05

	 	 	 	 	 
	STATE OF TEXAS	 	 	 	)
	 	 	 	 	)
	COUNTY OF HARRIS	 	 	 	)

          BEFORE ME, the undersigned authority, a Notary Public in and for said
state, on this day personally appeared Donna Edmundson and Carol Logan, known
to me to be the persons and officers whose names are subscribed to the
foregoing instrument and acknowledged to me that the same was the act of the
said JPMORGAN CHASE BANK, a New York banking corporation, and that they
executed the same as the act of said New York banking corporation for the
purposes and consideration therein expressed, and in the capacity therein
stated.

          GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 6th day of October, 2003.

	 	 	 
	 	 	
/s/ Treva Bushnell
	 	 	

	 	 	
Notary Public in and for the State of Texas
	 	 	 
	 	 	
Treva Bushnell
	 	 	

	 	 	
Printed Name of Notary Public

My commission expires:

5/18/06

11

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[The following legend shall appear on the face of each global Note:

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY 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 INDENTURE, 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 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK,
NEW YORK (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          UNLESS AND UNTIL THIS GLOBAL NOTE IS EXCHANGED IN WHOLE OR IN PART FOR THE
INDIVIDUAL NOTES REPRESENTED HEREBY, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]

 

 

CUSIP No.:_____________

	 	 	 
	REGISTERED NO. _____________	 	
PRINCIPAL AMOUNT:

$_________________

CENTEX CORPORATION

___% SENIOR NOTES DUE 20__

          Centex Corporation, a corporation duly organized and existing under the
laws of the State of Nevada (herein called the “Company,” which term includes
any successor Person under the Indenture hereinafter referred to) for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of _______ United States Dollars on _________, 20___ and to pay
interest thereon, in such coin or currency commencing ____________, 2004 and
continuing semi-annually thereafter on _________ and ________ of each year, from
__________, 2003 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, at the rate per annum provided in
the title hereof, until the principal hereof is paid or made available for
payment. The interest so payable and punctually paid or duly provided for on
any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Note (or one or more predecessor Notes) is registered
at the close of business on the Regular Record Date which shall be
____________or
____________(whether or not a business day), as the case may be, next preceding
such Interest Payment Date; provided, however, that interest payable on the
Maturity Date or, if applicable, upon redemption, shall be payable to the
Person to whom principal shall be payable. Except as otherwise provided in the
Indenture, any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and
shall be paid on the date fixed therefor by the Company to the Person in whose
name this Note is registered at the close of business on a Special Record Date
for the payment of such defaulted interest to be fixed by the Company, notice
whereof shall be given to Noteholders not less than fifteen calendar days prior
to such Special Record Date.

          The Indenture and the Notes shall be governed by, and construed in
accordance with, the laws of the State of Texas.

          REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
IN FULL ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH IN FULL AT THIS PLACE.

          Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof, directly or through a duly appointed
and authorized authenticating agent, by manual or facsimile signature of an
authorized signatory, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

2

 

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

	 	 	 	 
	 	 	
CENTEX CORPORATION
	 	 	 	
	[SEAL]	 	 	
	 	 	 	
	 	 	
By:	 
	 	 	 	

	 	 	 	
   Name:

   Title:
	 	 	 	
	ATTEST:	 	 	
	 	 	 	
	

Name:

Title:	 	 	

TRUSTEE’S CERTIFICATE

       OF AUTHENTICATION

This is one of the Senior Debt Securities referred to in the within-mentioned
Indenture.

JPMORGAN CHASE BANK

(f/k/a The Chase Manhattan Bank), as Trustee

	 	 
	By:	 
	 	
	
	 	Authorized Signatory	

3

 

[FORM OF REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Senior Debt Securities of
the Company designated as its _______% Senior Notes due 20_________(herein called the
“Notes”), issued and to be issued in one or more Series under an Indenture
dated as of October 1, 1998 (herein called the “Indenture”) between the Company
and JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank), as Trustee (herein
called the “Trustee,” which term includes any successor Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto
(including the Indenture Supplement dated as of ____  _____, 2003 which
authorizes the Notes) reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Notes, and of the terms upon
which the Notes are, and are to be, authenticated and delivered.

          All terms used in this Note which are defined in the Indenture or in any
indenture supplemental thereto but are not defined in this Note shall have the
meanings assigned to them in the Indenture or in any indenture supplemental
thereto.

          The indebtedness evidenced by the Notes is, to the extent and in the
manner provided in the Indenture and the Indenture Supplement, senior in right
of payment to certain indebtedness of the Company.

          Interest on this Note will be payable on the Interest Payment Date or
Interest Payment Dates as specified on the face hereof and, in either case, on
the Maturity Date. Unless otherwise specified on the face hereof, payments on
this Note with respect to any particular Interest Payment Date or the Maturity
Date will include interest accrued from and including ______________, 2003, or
from and including the most recent Interest Payment Date to which interest has
been paid or duly provided for, to but excluding the particular Interest
Payment Date or the Maturity Date. Interest on this Note will be computed and
paid on the basis of a 360-day year of twelve 30-day months.

          If an Interest Payment Date or the Maturity Date for this Note falls on a
day that is not a business day, payment of principal, premium, if any, and
interest to be made on such day with respect to this Note will be made on the
next succeeding day that is a business day with the same force and effect as if
made on the due date, and no additional interest will be payable on the date of
payment for the period from and after the due date as a result of such delayed
payment.

          The Notes will be redeemable, in whole or in part, from time to time at
the option of the Company, on any date (a “Redemption Date”) at a redemption
price equal to the greater of (a) 100% of the principal amount of the Notes to
be redeemed and (b) the sum of the present values of the Remaining Scheduled
Payments (as hereinafter defined) of principal and interest thereon (exclusive
of interest accrued to such Redemption Date) discounted to such Redemption Date
on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate (as hereinafter defined) plus
___________ basis points,
plus accrued and unpaid interest on the principal amount being redeemed to such
Redemption Date; provided, however, that installments of interest on the Notes
that are due and payable on an Interest Payment Date falling on or prior to the
relevant Redemption Date shall be payable to the Holders of such Notes,

4

 

registered as such at the close of business on the relevant Regular Record
Date or Special Record Date, as the case may be, according to their terms and
the provisions of the Indenture.

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

          “Comparable Treasury Price” means, with respect to any Redemption Date,
(1) the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
business day preceding such Redemption Date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S.
Government Securities” or (2) if such release (or any successor release) is not
published or does not contain such prices on such business day, (A) the average
of the Reference Treasury Dealer Quotations (as hereinafter defined) for such
Redemption Date, after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (B) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Quotations.

          “Independent Investment Banker” means Salomon Smith Barney Inc.

          “Reference Treasury Dealer” means Salomon Smith Barney Inc. and its
successors and, at the option of the Company, other primary U.S. government
securities dealers in New York City selected by the Company.

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

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

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

          Notice of any redemption by the Company will be mailed at least 30 days
but not more than 60 days before any Redemption Date to each Holder of Notes to
be redeemed. If less than all the Notes are to be redeemed at the option of
the Company, the Trustee shall select the Notes to be redeemed in whole or in
part by random lot.

5

 

          This Note is not subject to a sinking fund. Holders of Notes will not be
permitted to require the Company to redeem or repurchase the Notes at their
option.

          In case an Event of Default shall have occurred and be continuing with
respect to the Notes, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture. The Indenture provides
that in certain events such declaration and its consequences may be waived by
the Holders of a majority in aggregate principal amount of the Notes then
outstanding. An Event of Default with respect to the Senior Debt Security of
any other Series issued under the Indenture, including the failure to make any
payment of principal or interest with respect thereto when and as due, will not
necessarily be an Event of Default with respect to the Notes.

          The Indenture, as supplemented by the Indenture Supplement relating to the
Notes, contains provisions permitting the Company and the Trustee, with the
consent of the Holders of not less than a majority in aggregate principal
amount of the Notes at the time outstanding, evidenced as in the Indenture
provided, to execute supplemental indentures adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or
of any supplemental indenture or modifying in any manner the rights of the
Holders of the Notes; provided, however, that no such supplemental indenture
shall (i) extend the fixed maturity of any Notes, or reduce the principal
amount thereof, or reduce the rate or extend the time of payment of interest
thereon, or reduce any premium payable on the redemption thereof, without the
consent of the Holder of each Note so affected, or (ii) reduce the aforesaid
percentage of Notes, the consent of the Holders of which is required for any
such supplemental indenture, without the consent of the Holders of all Notes
then outstanding. The Indenture also provides that the Holders of a majority
in aggregate principal amount of the Notes at the time outstanding may on
behalf of the Holders of all the Notes waive any past default under the
Indenture and its consequences, except a default in the payment of the
principal of or premium, if any, or interest on any of the Notes. Any such
consent or waiver by the Holder of this Note (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all future
Holders and owners of this Note and of any Note issued in exchange or
substitution herefor, whether or not any notation of such consent or waiver is
made upon this Note.

          As set forth in, and subject to, the provisions of the Indenture, no
Holder of any Note will have any right to institute any proceeding with respect
to the Indenture or for any remedy thereunder, unless such Holder shall have
previously given to the Trustee written notice of default in respect of the
Notes and of the continuance thereof, and unless the Holders of not less than
25 percent in aggregate principal amount of the Notes then outstanding shall
have made written request upon the Trustee to institute such action or
proceedings in its own name as Trustee hereunder and shall have furnished to
the Trustee such reasonable indemnity as it may require, and the Trustee shall
have failed to institute such proceeding within 60 calendar days; provided,
however, that such limitations do not apply to a suit instituted by the Holder
hereof for the enforcement of payment of the principal of and any premium or
interest on this Note on or after the respective due dates expressed herein.

6

 

          As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the Senior Debt Security
Register upon surrender of this Note for registration of transfer at the office
or agency maintained by the Company for such purpose, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Senior Debt Security Registrar duly executed by the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

          The Notes are issued only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. A Holder may
transfer or exchange Notes in accordance with the Indenture.

          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.

          No reference herein to the Indenture and 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 the principal of, premium, if any, and
interest on this Note at the times, places and rates, and in the coin or
currency, herein prescribed.

          The Indenture, as supplemented by the Indenture Supplement relating to the
Notes, contains provisions for legal defeasance at any time of the entire
indebtedness of this Note or defeasance of certain restrictive covenants with
respect to this Note, in each case upon compliance by the Company with certain
conditions set forth therein.

          The Company, the Trustee, any paying agent and any Senior Debt Security
Registrar for the Notes may deem and treat the Holder hereof as the absolute
owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon made by
anyone other than the Company or any such Senior Debt Security Registrar), for
the purpose of receiving payment hereof or on account hereof and for all other
purposes, and neither the Company nor the Trustee nor any paying agent nor any
such Senior Debt Security Registrar shall be affected by any notice to the
contrary.

          No recourse shall be had for the payment of the principal of, or premium,
if any, or interest on, this Note, or for any claim based hereon or otherwise
in respect hereof, or based on or in respect of the Indenture or any indenture
supplemental thereto, against any incorporator, stockholder, officer or
director, as such, past, present or future, of 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 or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

7

 

ABBREVIATIONS

          The following abbreviations, when used in the inscription of 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
	TEN ENT	 	
=
	 	as tenants by the entireties
	JT TEN	 	
=
	 	as joint tenants with right of survivorship and
not as tenants in common
	UNIF GIFT MIN ACT	 	
=
	 	under Uniform Gifts to Minors Act
	 	 	 	 	(Cust)         (Minor)
	 	 	 	 	State

          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 OTHER

IDENTIFYING NUMBER OF ASSIGNEE
	________________________________________________
	________________________________________________

	 
	Please print or typewrite name and address including postal zip code of
assignee

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing _________________________ attorney to transfer said
note on the books of the Company, with full power of substitution in the
premises

	 	 	 
	Dated: _____________________________	 	
____________________________________________________
	 	 	 
	 	 	
NOTICE: The signature(s) to this assignment
must correspond with the name(s) as written
upon the face of the within instrument in
every particular, without alteration or
enlargement or any change whatever. The
signature(s) must be guaranteed by

8

 

	 	 	 
	 	 	
an “eligible guarantor institution” that is
a member or participant in the Securities
Transfer Agents Medallion Program, the
Stock Exchange Medallion Program or the New
York Stock Exchange, Inc. Medallion
Program.

9

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