Document:

EX-4.1

Exhibit 4.1

Execution Version

 

 

INDENTURE

Dated as of September 11, 2009

Among

BEAZER HOMES USA, INC.,

THE SUBSIDIARY GUARANTORS NAMED ON SCHEDULE I HERETO,

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

and

WILMINGTON TRUST FSB,

as Notes Collateral Agent

12% SENIOR SECURED NOTES DUE 2017

 

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	310
	 	(a)(1)	 	6.10
	 
	 	(a)(2)	 	6.10
	 
	 	(a)(3)	 	N.A.
	 
	 	(a)(4)	 	N.A.
	 
	 	(a)(5)	 	6.10
	 
	 	(b)	 	6.10
	 
	 	(c)	 	N.A.
	311
	 	(a)	 	6.11
	 
	 	(b)	 	6.11
	 
	 	(c)	 	N.A.
	312
	 	(a)	 	2.05
	 
	 	(b)	 	13.03
	 
	 	(c)	 	13.03
	313
	 	(a)	 	6.06
	 
	 	(b)(1)	 	N.A.
	 
	 	(b)(2)	 	6.06; 6.07
	 
	 	(c)	 	6.06; 13.02
	 
	 	(d)	 	6.06
	314
	 	(a)	 	4.03
	 
	 	(b)	 	10.05
	 
	 	(c)(1)	 	13.04
	 
	 	(c)(2)	 	13.04
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	10.05
	 
	 	(e)	 	13.05
	 
	 	(f)	 	N.A.
	315
	 	(a)	 	6.01
	 
	 	(b)	 	6.05; 13.02
	 
	 	(c)	 	6.01
	 
	 	(d)	 	6.01
	 
	 	(e)	 	5.12
	316
	 	(a)(last sentence)	 	2.09
	 
	 	(a)(1)(A)	 	5.05
	 
	 	(a)(1)(B)	 	5.04
	 
	 	(a)(2)	 	N.A.
	 
	 	(b)	 	5.08
	 
	 	(c)	 	1.05(e); 8.04
	317
	 	(a)(1)	 	5.08
	 
	 	(a)(2)	 	5.10
	 
	 	(b)	 	2.04
	318
	 	(a)	 	13.01
	 
	 	(b)	 	N.A.
	 
	 	(c)	 	13.01

 

			
	N.A. means not applicable. 
	 
	*	 	This Cross-Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE I
	 	 	 	 
	 	 	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	Section 1.01	 	Definitions
	 	 	1	 
	Section 1.02	 	Other Definitions
	 	 	28	 
	Section 1.03	 	Incorporation by Reference of Trust
Indenture Act
	 	 	28	 
	Section 1.04	 	Rules of Construction
	 	 	29	 
	Section 1.05	 	Acts of Holders
	 	 	29	 
	 	 	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 	 	 
	 	 	 	 
	THE NOTES
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 2.01	 	Form and Dating; Terms
	 	 	31	 
	Section 2.02	 	Execution and Authentication
	 	 	32	 
	Section 2.03	 	Registrar and Paying Agent
	 	 	33	 
	Section 2.04	 	Paying Agent to Hold Money in Trust
	 	 	33	 
	Section 2.05	 	Holder Lists
	 	 	33	 
	Section 2.06	 	Transfer and Exchange
	 	 	33	 
	Section 2.07	 	Replacement Notes
	 	 	48	 
	Section 2.08	 	Outstanding Notes
	 	 	49	 
	Section 2.09	 	Treasury Notes
	 	 	49	 
	Section 2.10	 	Temporary Notes
	 	 	49	 
	Section 2.11	 	Cancellation
	 	 	50	 
	Section 2.12	 	Defaulted Cash Interest
	 	 	50	 
	Section 2.13	 	CUSIP and ISIN Numbers
	 	 	50	 
	 	 	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 	 	 
	 	 	 	 
	REDEMPTION
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 3.01	 	Notices to Trustee
	 	 	51	 
	Section 3.02	 	Selection of Notes to Be Redeemed or
Purchased
	 	 	51	 
	Section 3.03	 	Notice of Redemption
	 	 	51	 
	Section 3.04	 	Effect of Notice of Redemption
	 	 	52	 
	Section 3.05	 	Deposit of Redemption or Purchase Price
	 	 	53	 
	Section 3.06	 	Notes Redeemed or Purchased in Part
	 	 	53	 
	Section 3.07	 	Optional Redemption
	 	 	53	 
	Section 3.08	 	Mandatory Redemption
	 	 	54	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 	 	 
	 	 	 	 
	COVENANTS
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 4.01	 	Payment of Notes
	 	 	54	 
	Section 4.02	 	Maintenance of Office or Agency
	 	 	55	 
	Section 4.03	 	Reports and Other Information
	 	 	55	 
	Section 4.04	 	Compliance Certificate
	 	 	56	 
	Section 4.05	 	Taxes
	 	 	56	 
	Section 4.06	 	Stay, Extension and Usury Laws
	 	 	56	 
	Section 4.07	 	Limitations on Restricted Payments
	 	 	57	 
	Section 4.08	 	Change of Control
	 	 	59	 
	Section 4.09	 	Limitations on Restrictions on Distributions from Restricted Subsidiaries
	 	 	61	 
	Section 4.10	 	Subsidiary Guarantees by Restricted Subsidiaries
	 	 	63	 
	Section 4.11	 	Limitations and Restrictions on Issuance of Capital Stock of Restricted Subsidiaries
	 	 	64	 
	Section 4.12	 	Limitations on Additional Indebtedness
	 	 	64	 
	Section 4.13	 	Limitations on Asset Sales
	 	 	66	 
	Section 4.14	 	Limitations on Transactions with Affiliates
	 	 	69	 
	Section 4.15	 	Limitations on Liens
	 	 	70	 
	Section 4.16	 	Maintenance of Corporate Existence
	 	 	71	 
	Section 4.17	 	Limitations on Mergers and Consolidations
	 	 	71	 
	Section 4.18	 	After-Acquired Property
	 	 	72	 
	Section 4.19	 	Further Assurances
	 	 	72	 

	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 	 	 
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 5.01	 	Events of Default
	 	 	74	 
	Section 5.02	 	Acceleration
	 	 	76	 
	Section 5.03	 	Other Remedies
	 	 	76	 
	Section 5.04	 	Waiver of Existing Defaults
	 	 	77	 
	Section 5.05	 	Control by Majority
	 	 	77	 
	Section 5.06	 	Limitation on Suits
	 	 	77	 
	Section 5.07	 	Rights of Holders of Notes to Receive Payment
	 	 	78	 
	Section 5.08	 	Collection Suit by Trustee
	 	 	78	 
	Section 5.09	 	Restoration of Rights and Remedies
	 	 	78	 
	Section 5.10	 	Trustee May File Proofs of Claim
	 	 	78	 
	Section 5.11	 	Priorities
	 	 	79	 
	Section 5.12	 	Undertaking for Costs
	 	 	80	 
	 	 	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 	 	 
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 6.01	 	Duties of Trustee
	 	 	80	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	Section 6.02	 	Rights of Trustee
	 	 	81	 
	Section 6.03	 	Individual Rights of Trustee
	 	 	82	 
	Section 6.04	 	Trustee’s Disclaimer
	 	 	82	 
	Section 6.05	 	Notice of Defaults
	 	 	83	 
	Section 6.06	 	Reports by Trustee to Holders of the Notes
	 	 	83	 
	Section 6.07	 	Compensation and Indemnity
	 	 	83	 
	Section 6.08	 	Replacement of Trustee
	 	 	84	 
	Section 6.09	 	Successor
Trustee by Merger, etc.
	 	 	85	 
	Section 6.10	 	Eligibility; Disqualification
	 	 	85	 
	Section 6.11	 	Preferential Collection of Claims Against Company
	 	 	85	 

	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 	 	 
	 	 	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	 	 
	 	 	 
	 	 	 	 
	Section 7.01	 	Defeasance Upon Deposit of Moneys or U.S. Government Obligations
	 	 	86	 
	Section 7.02	 	Survival of the Company’s Obligations
	 	 	88	 
	Section 7.03	 	Application of Trust Money
	 	 	88	 
	Section 7.04	 	Repayment to the Company
	 	 	89	 
	Section 7.05	 	Reinstatement
	 	 	89	 
	 	 	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 	 	 
	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS	 	 	 	 
	 	 	 
	 	 	 	 
	Section 8.01	 	With Consent of Majority; Without Consent of Holders
	 	 	89	 
	Section 8.02	 	With Consent of all Affected Holders
	 	 	90	 
	Section 8.03	 	Compliance with Trust Indenture Act
	 	 	91	 
	Section 8.04	 	Revocation and Effect of Consents
	 	 	91	 
	Section 8.05	 	Notation on or Exchange of Notes
	 	 	92	 
	Section 8.06	 	Trustee to Sign Amendments
	 	 	92	 
	Section 8.07	 	Amendments to Intercreditor Agreement
	 	 	92	 
	 	 	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 	 	 
	 	 	 	 
	RANKING OF NOTE LIENS
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 9.01	 	Agreement for the Benefit of Holders of First-Priority Liens
	 	 	93	 
	Section 9.02	 	Notes, Guarantees and Other Second Priority Obligations not
Subordinated
	 	 	94	 
	Section 9.03	 	Relative Rights
	 	 	94	 
	 	 	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 	 	 
	 	 	 	 
	COLLATERAL AND SECURITY
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 10.01	 	Security Documents
	 	 	95	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	Section 10.02	 	Notes Collateral Agent
	 	 	96	 
	Section 10.03	 	Authorization of Actions to be Taken
	 	 	97	 
	Section 10.04	 	Release of Collateral
	 	 	98	 
	Section 10.05	 	Filing, Recording and Opinions
	 	 	99	 

	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	 	 	 
	 	 	 	 
	SUBSIDIARY GUARANTEES; RELEASE OF SUBSIDIARY GUARANTORS
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 11.01	 	Subsidiary Guarantee
	 	 	100	 
	Section 11.02	 	Execution and Delivery of Subsidiary Guarantee
	 	 	102	 
	Section 11.03	 	Additional Subsidiary Guarantors
	 	 	102	 
	Section 11.04	 	Release of a Subsidiary Guarantor
	 	 	102	 
	Section 11.05	 	Waiver of Subrogation; Right of Conribution
	 	 	103	 
	 	 	 
	 	 	 	 
	ARTICLE XII
	 	 	 	 
	 	 	 
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 12.01	 	Satisfaction and Discharge
	 	 	104	 
	Section 12.02	 	Application of Trust Money
	 	 	105	 
	 	 	 
	 	 	 	 
	ARTICLE XIII
	 	 	 	 
	 	 	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 13.01	 	Trust Indenture Act Controls
	 	 	105	 
	Section 13.02	 	Notices
	 	 	105	 
	Section 13.03	 	Communication by Holders of Notes with Other Holders of Notes
	 	 	107	 
	Section 13.04	 	Certificate and Opinion as to Conditions Precedent
	 	 	107	 
	Section 13.05	 	Statements Required in Certificate or Opinion
	 	 	107	 
	Section 13.06	 	Rules by Trustee and Agents
	 	 	108	 
	Section 13.07	 	No Personal Liability of Incorporators, Shareholders,
Officers, Directors or Employees
	 	 	108	 
	Section 13.08	 	Governing Law
	 	 	108	 
	Section 13.09	 	Waiver of Jury Trial
	 	 	108	 
	Section 13.10	 	Force Majeure
	 	 	108	 
	Section 13.11	 	No Adverse Interpretation of Other Agreements
	 	 	108	 
	Section 13.12	 	Successors
	 	 	109	 
	Section 13.13	 	Severability
	 	 	109	 
	Section 13.14	 	Counterpart Originals
	 	 	109	 
	Section 13.15	 	Table of Contents, Headings, etc.
	 	 	109	 
	Section 13.16	 	Qualification of Indenture
	 	 	109	 

iv

 

	 	 	 
	SCHEDULES
	 	 

	 	 	 

	Schedule I
	 	Subsidiary Guarantors

	 	 	 

	EXHIBITS
	 	 

	 	 	 

	Exhibit A
	 	Form of Note

	Exhibit B
	 	Form of Certificate of Transfer

	Exhibit C
	 	Form of Certificate of Exchange

	Exhibit D
	 	Form of Supplemental Indenture to Be Delivered by Subsequent Guarantors

ii

 

          INDENTURE, dated as of September 11, 2009, among Beazer Homes USA, Inc., a Delaware
corporation (the “Company”), the Subsidiary Guarantors (as defined herein) listed on the
signature pages hereto, U.S. Bank National Association, as Trustee, and Wilmington Trust FSB, as
Notes Collateral Agent.

WITNESSETH

          WHEREAS, the Company has duly authorized the creation of an issue of $250,000,000 aggregate
principal amount of 12% Senior Secured Notes due 2017; and

          WHEREAS, the Company and each of the Subsidiary Guarantors has duly authorized the execution
and delivery of this Indenture.

          NOW, THEREFORE, in consideration of the promises and the purchase and acceptance of the Notes
by the holders thereof, the Company, the Subsidiary Guarantors, the Trustee and the Notes
Collateral Agent agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders of the Notes.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

          Section 1.01 Definitions.

     “144A Global Note” means a Global Note substantially in the form of Exhibit A
attached hereto, as the case may be, bearing the Global Note Legend and the Private Placement
Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its
nominee that will be issued in a denomination equal to the outstanding principal amount of the
Notes sold in reliance on Rule 144A.

     “Acquired Indebtedness” means Indebtedness of any Person and its Subsidiaries existing
at the time such Person became a Subsidiary of the Company (or such Person is merged with or into
the Company or one of the Company’s Subsidiaries) or assumed in connection with the acquisition of
assets from any such Person, including, without limitation, Indebtedness Incurred in connection
with, or in contemplation of (a) such Person being merged with or into or becoming a Subsidiary of
the Company or one of its Subsidiaries (but excluding Indebtedness of such Person which is
extinguished, retired or repaid in connection with such Person being merged with or into or
becoming a Subsidiary of the Company or one of its Subsidiaries) or (b) such acquisition of assets
from any such Person.

     “Additional Interest” means the additional interest, if any, to be paid on the Notes
pursuant to the Registration Rights Agreement. All references in this Indenture to “interest”
shall include Additional Interest, if any, with respect to the Notes.

     “Additional Notes” means Notes (other than the Notes issued on the Issue Date) issued
pursuant to Article II hereof and otherwise in compliance with the provisions of this Indenture.

 

 

     “Affiliate” of any Person means any other Person directly or indirectly controlling or
controlled by, or under direct or indirect common control with, such Person. For purposes of this
Indenture, each executive officer and director of the Company and each Subsidiary of the Company
will be an Affiliate of the Company. In addition, for purposes of this Indenture, control of a
Person means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise.
Notwithstanding the foregoing, the term “Affiliate” will not include, with respect to the Company
or any Restricted Subsidiary which is a Wholly Owned Subsidiary of the Company, any Restricted
Subsidiary which is a Wholly Owned Subsidiary of the Company.

     “Agent” means any Registrar or Paying Agent.

     “Applicable Premium” means, with respect to a Note at any redemption date, the greater
of (i) 1.00% of the principal amount of such Note and (ii) the excess of (A) the present value at
such redemption date of (1) the redemption price of such Note on October 15, 2012 (such redemption
price being described under Section 3.07(a) hereof, exclusive of any accrued interest) plus (2) all
required remaining scheduled interest payments due on such Note through October 15, 2012 (but
excluding accrued and unpaid interest to the redemption date), computed using a discount rate equal
to the Treasury Rate plus 0.50% per annum, over (B) the principal amount of such Note on such
redemption date.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear
and/or Clearstream that apply to such transfer or exchange.

     “Asset Sale” for any Person means the sale, transfer, lease, conveyance or other
disposition (including, without limitation, by merger, consolidation or sale and leaseback
transaction, and whether by operation of law or otherwise) of any of that Person’s assets
(including, without limitation, the sale or other disposition of Capital Stock of any Subsidiary of
such Person, whether by such Person or such Subsidiary), whether owned on the date of this
Indenture or subsequently acquired in one transaction or a series of related transactions, in which
such Person and/or its Subsidiaries receive cash and/or other consideration (including, without
limitation, the unconditional assumption of Indebtedness of such Person and/or its Subsidiaries)
having an aggregate Fair Market Value of $5.0 million or more as to each such transaction or series
of related transactions; provided, however, that none of the following shall
constitute an Asset Sale:

     (i) a transaction or series of related transactions that results in a Change of Control;

     (ii) sales of homes or land in the ordinary course of business;

     (iii) sales, leases, conveyances or other dispositions, including, without limitation,
exchanges or swaps, of real estate or other assets, in each case in the ordinary course of
business, for development or disposition of the Company’s or any of its Subsidiaries’ projects;

2

 

     (iv) sales, leases, sale-leasebacks or other dispositions of amenities, model homes and other
improvements at the Company’s or its Subsidiaries’ projects in the ordinary course of business;

     (v) transactions between the Company and any of its Restricted Subsidiaries which are Wholly
Owned Subsidiaries, or among such Restricted Subsidiaries which are Wholly Owned Subsidiaries of
the Company;

     (vi) any disposition of Cash Equivalents or obsolete or worn out equipment, in each case, in
the ordinary course of business;

     (vii) the sale or other disposition of assets no longer used or useful in the conduct of
business of the Company or any of its Restricted Subsidiaries; and

     (viii) the making of any Restricted Payment or Permitted Investment that is permitted to be
made, and is made, under Section 4.07 hereof.

     “Authentication Order” means a written request or order signed on behalf of the
Company by an Officer of the Company and delivered to the Trustee.

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

     “Book Value” means, with respect to any asset of the Company or any of its
Subsidiaries, the book value thereof as reflected in the most recent consolidated financial
statements of the Company filed with SEC (or if such asset has been acquired after the date of such
financial statements, the then-current book value thereof as reasonably determined by the Company
consistent with recent practices).

     “Business Day” means any day other than a Legal Holiday.

     “Capital Stock” of any Person means any and all shares, rights to purchase, warrants
or options (whether or not currently exercisable), participations, or other equivalents of or
interests in (however designated and whether voting or non-voting) the equity (which includes, but
is not limited to, common stock, preferred stock and partnership and joint venture interests) of
such Person (excluding any debt securities that are convertible into, or exchangeable for, such
equity).

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

     “Cash Equivalents” means any of the following:

     (i) direct obligations of the United States or any agency thereof or obligations guaranteed by
the United States or any agency thereof, in each case maturing within one year of the date of
acquisition thereof;

3

 

     (ii) certificates of deposit, time deposits, bankers acceptances and other obligations placed
with commercial banks organized under the laws of the United States of America or any state
thereof, or branches or agencies of foreign banks licensed under the laws of the United States of
America or any state thereof, having a short-term rating of not less than A- by each of Moody’s and
S&P at the time of acquisition, and having a maturity of not more than one year;

     (iii) commercial paper rated at least P-1, A-1 or the equivalent thereof by Moody’s or S&P,
respectively, and in each case and maturing not more than one year from the date of the acquisition
thereof;

     (iv) repurchase agreements or money-market accounts which are fully secured by direct
obligations of the United States or any agency thereof; and

     (v) investments in money market funds (x) substantially all of the assets of which consist of
investments described in the foregoing clauses (i) through (iv) or (y) which (A) have total net
assets of at least $2 billion, (B) have investment objectives and policies that substantially
conform with the Company’s investment policy as in effect from time to time, (C) purchase only
first-tier or U.S. government obligations as defined by Rule 2a-7 of the SEC promulgated under the
Investment Company Act of 1940 and (D) otherwise comply with such Rule 2a-7.

     “Change of Control” means any of the following:

     (i) the sale, transfer, lease, conveyance or other disposition (in one transaction or a series
of transactions) of all or substantially all of the Company’s assets as an entirety or
substantially as an entirety to any Person or “group” (within the meaning of Section 13(d)(3) of
the Exchange Act); provided that a transaction where the holders of all classes of Common
Equity of the Company immediately prior to such transaction own, directly or indirectly, 50% or
more of the aggregate voting power of all classes of Common Equity of such Person or group
immediately after such transaction will not be a Change of Control;

     (ii) the acquisition by the Company and/or any of its Subsidiaries of 50% or more of the
aggregate voting power of all classes of Common Equity of the Company in one transaction or a
series of related transactions;

     (iii) the liquidation or dissolution of the Company; provided that a liquidation or
dissolution of the Company which is part of a transaction or series of related transactions that
does not constitute a Change of Control under the “provided” clause of clause (i) above will not
constitute a Change of Control under this clause (iii);

     (iv) any transaction or a series of related transactions (as a result of a tender offer,
merger, consolidation or otherwise) that results in, or that is in connection with, (a) any Person,
including a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) acquiring
“beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of 50% or more of the aggregate voting power of all classes of Common Equity of the Company or of
any Person that possesses “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of 50% or more of the aggregate voting power of all

4

 

classes of Common
Equity of the Company or (b) less than 50% (measured by the aggregate voting power of all classes)
of the Common Equity of the Company being registered under Section 12(b) or 12(g) of the Exchange
Act;

     (v) a majority of the Board of Directors of the Company not being comprised of Continuing
Directors; or

     (vi) a change of control shall occur as defined in the instrument governing any publicly
traded debt securities of the Company which requires the Company to repay or repurchase such debt
securities.

     “Clearstream” means Clearstream Banking, Société Anonyme.

     “Collateral” means all the assets and properties subject to the Liens created by the
Security Documents.

     “Collateral Agreement” means the Collateral Agreement, by and among, the Company, the
Subsidiary Guarantors and the Notes Collateral Agent.

     “Common Equity” of any Person means all Capital Stock of such Person that is generally
entitled to (i) vote in the election of directors of such Person, or (ii) if such Person is not a
corporation, vote or otherwise participate in the selection of the governing body, partners,
managers or others that will control the management and policies of such Person.

     “Consolidated Cash Flow Available for Fixed Charges” of the Company and its Restricted
Subsidiaries means for any period, the sum of the amounts for such period of:

     (i) Consolidated Net Income, plus

     (ii) Consolidated Income Tax Expense (without regard to income tax expense or credits
attributable to extraordinary and nonrecurring gains or losses on Asset Sales), plus

     (iii) Consolidated Interest Expense, plus

     (iv) all depreciation, and, without duplication, amortization (including, without limitation,
capitalized interest amortized to cost of sales), plus

     (v) all other non-cash items reducing Consolidated Net Income during such period,

minus all other non-cash items increasing Consolidated Net Income during such period; all as
determined on a consolidated basis for the Company and its Restricted Subsidiaries in accordance
with GAAP.

     “Consolidated Fixed Charge Coverage Ratio” of the Company means, with respect to any
determination date, the ratio of (i) Consolidated Cash Flow Available for Fixed Charges of the
Company for the prior four full fiscal quarters for which financial results have been reported
immediately preceding the determination date, to (ii) the aggregate Consolidated Interest

5

 

Incurred
of the Company for the prior four full fiscal quarters for which financial results have been
reported immediately preceding the determination date; provided that:

          (1) with respect to any Indebtedness Incurred during, and remaining outstanding at the end of,
such four full fiscal quarter period, such Indebtedness will be assumed to have been incurred as of
the first day of such four full fiscal quarter period;

          (2) with respect to Indebtedness repaid (other than a repayment of revolving credit
obligations repaid solely out of operating cash flows) during such four full fiscal quarter period,
such Indebtedness will be assumed to have been repaid on the first day of such four full fiscal
quarter period;

          (3) with respect to the Incurrence of any Acquired Indebtedness, such Indebtedness and any
proceeds therefrom will be assumed to have been Incurred and applied as of the first day of such
four full fiscal quarter period, and the results of operations of any Person and any Subsidiary of
such Person that, in connection with or in contemplation of such Incurrence, becomes a Subsidiary
of the Company or is merged with or into the Company or one of the Company’s Subsidiaries or whose
assets are acquired, will be included, on a pro forma basis, in the calculation of the Consolidated
Fixed Charge Coverage Ratio as if such transaction had occurred on the first day of such four full
fiscal quarter period; and

          (4) with respect to any other transaction pursuant to which any Person becomes a Subsidiary of
the Company or is merged with or into the Company or one of the Company’s Subsidiaries or pursuant
to which any Person’s assets are acquired, such Consolidated Fixed Charge Coverage Ratio shall be
calculated on a pro forma basis as if such transaction had occurred on the first day of such four
full fiscal quarter period, but only if such transaction would require a pro forma presentation in
financial statements prepared pursuant to Rule 11-02 of Regulation S-X under the Securities Act.

     “Consolidated Income Tax Expense” of the Company for any period means the income tax
expense of the Company and its Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.

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

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

     “Consolidated Net Income” of the Company for any period means the aggregate net income
(or loss) of the Company and its Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP; provided that there will be excluded from such
net income (to the extent otherwise included therein), without duplication:

6

 

     (i) the net income (or loss) of any Person (other than a Restricted Subsidiary) in which any
Person (including, without limitation, an Unrestricted Subsidiary) other than the Company or any
Restricted Subsidiary has an ownership interest, except to the extent that any such income has
actually been received by the Company or any Restricted Subsidiary in the form of cash dividends or
similar cash distributions during such period, or in any other form but converted to cash during
such period;

     (ii) except to the extent includable in Consolidated Net Income pursuant to the foregoing
clause (i), the net income (or loss) of any Person that accrued prior to the date that (a) such
Person becomes a Restricted Subsidiary or is merged with or into or consolidated with the Company
or any of its Restricted Subsidiaries or (b) the assets of such Person are acquired by the Company
or any of its Restricted Subsidiaries;

     (iii) the net income of any Restricted Subsidiary to the extent that (but only so long as) the
declaration or payment of dividends or similar distributions by such Restricted Subsidiary of that
income is not permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary during such period;

     (iv) in the case of a successor to the Company by consolidation, merger or transfer of its
assets, any earnings of the successor prior to such merger, consolidation or transfer of assets;
and

     (v) the gains (but not losses) realized during such period by the Company or any of its
Restricted Subsidiaries resulting from (a) the acquisition of securities issued by the Company or
extinguishment of Indebtedness of the Company or any of its Restricted Subsidiaries, (b) Asset
Sales by the Company or any of its Restricted Subsidiaries and (c) other extraordinary items
realized by the Company or any of its Restricted Subsidiaries.

     Notwithstanding the foregoing, in calculating Consolidated Net Income, the Company will be
entitled to take into consideration the tax benefits associated with any loss described in clause
(v) of the preceding sentence, but only to the extent such tax benefits are actually recognized by
the Company or any of its Restricted Subsidiaries during such period; provided,
further, that there will be included in such net income,
without duplication, the net income of any Unrestricted Subsidiary to the extent such net
income is actually received by the Company or any of its Restricted Subsidiaries in the form of
cash dividends or similar cash distributions during such period, or in any other form but converted
to cash during such period.

     “Consolidated Tangible Assets” of the Company as of any date means the total amount of
assets of the Company and its Restricted Subsidiaries (less applicable reserves) on a consolidated
basis at the end of the fiscal quarter immediately preceding such date, as determined in accordance
with GAAP, less: (i) Intangible Assets and (ii) appropriate adjustments on account of minority
interests of other Persons holding equity investments in Restricted Subsidiaries, in the case of
each of clauses (i) and (ii) above, as reflected on the consolidated balance sheet of the Company
and its Restricted Subsidiaries as of the end of the fiscal quarter immediately preceding such
date.

7

 

     “Consolidated Tangible Net Worth” of the Company as of any date means the
stockholders’ equity (including any Preferred Stock that is classified as equity under GAAP, other
than Disqualified Stock) of the Company and its Restricted Subsidiaries on a consolidated basis at
the end of the fiscal quarter immediately preceding such date, as determined in accordance with
GAAP, plus any amount of unvested deferred compensation included, in accordance with GAAP, as an
offset to stockholders’ equity, less the amount of Intangible Assets reflected on the consolidated
balance sheet of the Company and its Restricted Subsidiaries as of the end of the fiscal quarter
immediately preceding such date.

     “Continuing Director” means at any date a member of the Board of Directors of the
Company who:

     (i) was a member of the Board of Directors of the Company on the Issue Date; or

     (ii) was nominated for election or elected to the Board of Directors of the Company with the
affirmative vote of at least a majority of the directors who were Continuing Directors at the time
of such nomination or election.

     “Covenant Trigger Date” means the first date that the Company’s Consolidated Fixed
Charge Coverage Ratio is at least 2.0 to 1.0 for any four consecutive fiscal quarters ended on or
after the Issue Date.

     “Corporate Trust Office of the Trustee” shall be at the address of the Trustee
specified in Section 13.02 hereof or such other address as to which the Trustee may give notice to
the Holders and the Company or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the
Holders and the Company).

     “Credit Facilities” means, with respect to the Company or any of its Restricted
Subsidiaries, one or more debt facilities or other financing arrangements (including, without
limitation, commercial paper or letter of credit facilities or indentures) providing for revolving
credit loans, term loans, letters of credit or other Indebtedness (including
the Revolving Credit Facility), including any notes, mortgages, guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements or refundings thereof and any
indentures, credit facilities, letter of credit facilities or commercial paper facilities that
replace, refund or refinance any part of the loans, notes, other credit facilities or commitments
thereunder, including any such replacement, refunding or refinancing facility or indenture that
increases the amount permitted to be borrowed thereunder or alters the maturity thereof
(provided that such increase in borrowings is permitted under Section 4.12) or adds
Restricted Subsidiaries as additional borrowers or guarantors thereunder and whether by the same or
any other agent, lender or group of lenders.

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

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

8

 

     “Definitive Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.06(c) hereof, substantially in the form of
Exhibit A hereto, except that such Note shall not bear the Global Note Legend and shall not
have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part
in global form, the Person specified in Section 2.03 hereof as the Depositary with respect to the
Notes, and any and all successors thereto appointed as Depositary hereunder and having become such
pursuant to the applicable provision of this Indenture.

     “Discharge of First Priority Obligations” means, with respect to any First Priority
Collateral, the date on which the First Priority Obligations secured thereby have been paid in
full, in cash, all commitments to extend credit thereunder shall have been terminated and such
First Priority Obligations are no longer secured by such First Priority Collateral (except that,
with respect to any obligations under letters of credit, such obligations may be satisfied by cash
collateralization (in an amount not in excess of 105% of the face value thereof) of such letters of
credit or provision of back-stop letters of credit); provided that the Discharge of First
Priority Obligations shall not be deemed to have occurred in connection with a refinancing of such
First Priority Obligations with Indebtedness secured by such First Priority Collateral on a
first-priority basis under an agreement that has been designated in writing by the agent, trustee
or other representative under the agreement so refinancing such First Priority Obligations and the
Notes Collateral Agent in accordance with the terms of the Intercreditor Agreement.

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable), or upon the happening
of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior
to the final maturity date of the Notes; provided that any Capital Stock
which would not constitute Disqualified Stock but for provisions thereof giving holders
thereof the right to require the Company to repurchase or redeem such Capital Stock upon the
occurrence of a change of control occurring prior to the final maturity of the Notes will not
constitute Disqualified Stock if the change of control provisions applicable to such Capital Stock
are no more favorable to the holders of such Capital Stock than Section 4.08 hereof and such
Capital Stock specifically provides that the Company will not repurchase or redeem (or be required
to repurchase or redeem) any such Capital Stock pursuant to such provisions prior to the Company’s
repurchase of Notes pursuant to Section 4.08 hereof

     “Disqualified Stock Dividend” of any Person means, for any dividend payable with
regard to Disqualified Stock issued by such Person, the amount of such dividend multiplied by a
fraction, the numerator of which is one and the denominator of which is one minus the maximum
statutory combined federal, state and local income tax rate (expressed as a decimal number between
1 and 0) then applicable to such Person.

     “Equity Offering” means a public or private equity offering or sale after the Issue
Date by the Company for cash of Capital Stock, other than an offering or sale of Disqualified
Stock.

9

 

     “Escrow Agreement” means the Escrow Agreement, dated as of the Issue Date, by and
among, the Company, the Notes Collateral Agent and U.S. Bank National Association, as escrow agent.

     “Escrow Collateral” means all the assets and properties subject to the Liens created
by the Escrow Agreement.

     “Euroclear” means Euroclear S.A./N.V., as operator of the Euroclear system.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

     “Exchange Notes” means any notes issued in exchange for the Notes pursuant to the
Registration Rights Agreement or similar agreement.

     “Exchange Offer” has the meaning set forth in any Registration Rights Agreement.

     “Exchange Offer Registration Statement” has the meaning set forth in the Registration
Rights Agreement.

     “Excluded Property” means:

     (i) Capital Stock in any Subsidiary or Affiliate;

     (ii) up to $25.0 million of assets received in connection with sales of assets as permitted by
clause (ii) of the definition of Permitted Investments;

     (iii) real or personal property where the cost of obtaining a security interest or perfection
thereof exceeds its benefits, as determined by the Company in good faith in an officers’
certificate delivered to the Notes Collateral Agent;

     (iv) real property subject to a Lien (a) permitted by clause (xxvii) of the definition of
Permitted Liens or (b) securing Indebtedness incurred for the purpose of financing the acquisition
thereof;

     (v) real property located outside the United States;

     (vi) unentitled land;

     (vii) real property that is leased or held for the purpose of leasing to unaffiliated third
parties;

     (viii) any real property in a community under development with a dollar amount of investment
as of the most recent month-end (as determined in accordance with GAAP) of less than $2.0 million
or with less than 10 lots remaining); and

10

 

     (ix) assets, with respect to which any applicable law or contract prohibits the creation or
perfection of security interests therein (other than any contract entered into for the sole purpose
of causing any real property to constitute Excluded Property under this clause (ix)).

     “Existing Indebtedness” means all of the Indebtedness of the Company and its
Subsidiaries that is outstanding on the date of this Indenture.

     “Fair Market Value” means with respect to any asset or property means the sale value
that would be obtained in an arm’s length transaction between an informed and willing seller under
no compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair Market
Value shall be determined by the Board of Directors of the Company acting in good faith and shall
be evidenced by a board resolution (certified by the Secretary or Assistant Secretary of the
Company) delivered to the Trustee.

     “First Priority Collateral” means all of the Collateral subject to Liens securing any
or all of the First Priority Obligations.

     “First Priority Collateral Agent” means any Person acting as collateral agent or in
any similar representative capacity for the benefit of any of the holders of First Priority
Obligations.

     “First Priority Documents” means all operative agreements evidencing or governing the
First Priority Obligations and the Liens securing such First Priority Obligations.

     “First Priority Liens” means the Liens on any or all of the First Priority Collateral
that secure any or all of the First Priority Obligations.

     “First Priority Obligations” has the meaning set forth in clause (xi)(b) of the
definition of Permitted Liens.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
interpretations of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and interpretations of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States, as in effect from time to time. At any time after the
Issue Date, the Company may elect to apply IFRS accounting principles in lieu of GAAP and, upon any
such election, references herein to GAAP shall thereafter be construed to mean IFRS (except as
otherwise provided herein); provided that any such election, once made, shall be
irrevocable; provided, further, any calculation or determination herein that
requires the application of GAAP for periods that include fiscal quarters ended prior to the
Company’s election to apply IFRS shall remain as previously calculated or determined in accordance
with GAAP. The Company shall give notice of any such election made in accordance with this
definition to the Trustee and the Holders of Notes.

     “Global Note Legend” means the legend set forth in Section 2.06(g)(ii) hereof, which
is required to be placed on all Global Notes issued under this Indenture.

11

 

     “Global Notes” means, individually and collectively, each of the Restricted Global
Notes and the Unrestricted Global Notes, substantially in the form of Exhibit A hereto.

     “Hedging Obligations” of any Person means the obligations of such Person pursuant to
any interest rate swap agreement, foreign currency exchange agreement, interest rate collar
agreement, option or futures contract or other similar agreement or arrangement relating to
interest rates or foreign exchange rates.

     “Holder” means a Person in whose name a Note is registered in the Security Register.

     “IFRS” means International Financial Reporting Standards.

     “Incur” (and derivatives thereof) means to, directly or indirectly, create, incur,
assume, guarantee, extend the maturity of, or otherwise become liable with respect to any
Indebtedness; provided, however, that neither the accrual of interest (whether such
interest is payable in cash or kind) nor the accretion of original issue discount shall be
considered an Incurrence of Indebtedness.

     “Indebtedness” of any Person at any date means, without duplication,

     (i) all indebtedness of such Person for borrowed money (whether or not the recourse of the
lender is to the whole of the assets of such Person or only to a portion thereof);

     (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar
instruments (including a purchase money obligation) given in connection with the acquisition of any
businesses, properties or assets of any kind or with services incurred in connection with capital
expenditures (other than any obligation to pay a contingent purchase price which, as of the date of
incurrence thereof, is not required to be recorded as a liability in accordance with GAAP);

     (iii) all fixed obligations of such Person in respect of letters of credit or other similar
instruments or reimbursement obligations with respect thereto (other than standby letters of credit
or similar instruments issued for the benefit of, or surety, performance, completion or payment
bonds, earnest money notes or similar purpose undertakings or indemnifications issued by, such
Person in the ordinary course of business);

     (iv) all obligations of such Person with respect to Hedging Obligations (other than those that
fix or cap the interest rate on variable rate Indebtedness otherwise permitted by this Indenture or
that fix the exchange rate in connection with Indebtedness denominated in a foreign currency and
otherwise permitted by this Indenture);

     (v) all Capitalized Lease Obligations of such Person;

     (vi) all Indebtedness of others secured by a Lien on any asset of such Person, whether or not
such Indebtedness is assumed by such Person;

     (vii) all Indebtedness of others guaranteed by, or otherwise the liability of, such Person to
the extent of such guarantee or liability; and

12

 

     (viii) all Disqualified Stock issued by such Person (the amount of Indebtedness represented by
any Disqualified Stock will equal the greater of the voluntary or involuntary liquidation
preference plus accrued and unpaid dividends);

provided, that Indebtedness shall not include accrued expenses, trade payables, liabilities
related to inventory not owned, customer deposits or deferred income taxes arising in the ordinary
course of business. The amount of Indebtedness of any Person at any date will be:

     (a) the outstanding balance at such date of all unconditional obligations as described
above;

     (b) the maximum liability of such Person for any contingent obligations under clause
(vii) above; and

     (c) in the case of clause (vi) (if the Indebtedness referred to therein is not assumed
by such Person), the lesser of the (A) Fair Market Value of all assets subject to a Lien
securing the Indebtedness of others on the date that the Lien attaches and (B) amount of
the Indebtedness secured.

     “Indenture” means this Indenture, as amended or supplemented from time to time.

     “Independent Financial Advisor” means an accounting, appraisal or investment banking
firm of nationally recognized standing that is, in the reasonable judgment of the Company’s Board
of Directors, (i) qualified to perform the task for which it has been engaged, and (ii)
disinterested and independent, in a direct and indirect manner, of the parties to the Affiliate
Transaction with respect to which such firm has been engaged.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Note
through a Participant.

     “Intercreditor Agreement” means the Intercreditor Agreement, dated as of the Issue
Date, among Citibank, N.A., as a First Priority Collateral Agent, the Notes Collateral Agent, the
Company and each Subsidiary Guarantor, as such agreement may be amended, restated, supplemented or
otherwise modified from time to time.

     “Intangible Assets” of the Company means all unamortized debt discount and expense,
unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights
and all other items which would be treated as intangibles on the consolidated balance sheet of the
Company and its Restricted Subsidiaries prepared in accordance with GAAP.

     “Interest Expense” of any Person for any period means, without duplication, the
aggregate amount of (i) interest which, in conformity with GAAP, would be set opposite the caption
“interest expense” or any like caption on an income statement for such Person (including, without
limitation, imputed interest included on Capitalized Lease Obligations, all commissions, discounts
and other fees and charges owed with respect to letters of credit securing financial obligations
and bankers’ acceptance financing, the net costs associated with Hedging Obligations, amortization
of other financing fees and expenses, the interest portion of any deferred payment

13

 

obligation,
amortization of discount or premium, if any, and all other non-cash interest expense other than
interest and other charges amortized to cost of sales) and includes, with respect to the Company
and its Restricted Subsidiaries, without duplication (including duplication of the foregoing
items), all interest amortized to cost of sales for such period, and (ii) the amount of
Disqualified Stock Dividends recognized by the Company on any Disqualified Stock whether or not
paid during such period.

     “Interest Incurred” of any Person for any period means, without duplication, the
aggregate amount of (i) interest which, in conformity with GAAP, would be set opposite the caption
“interest expense” or any like caption on an income statement for such Person (including, without
limitation, imputed interest included on Capitalized Lease Obligations, all commissions, discounts
and other fees and charges owed with respect to letters of credit securing financial obligations
and bankers’ acceptance financing, the net costs associated with Hedging Obligations, amortization
of other financing fees and expenses, the interest portion of any deferred payment obligation,
amortization of discount or premium, if any, and all other noncash interest expense other than
interest and other charges amortized to cost of sales) and includes, with respect to the Company
and its Restricted Subsidiaries, without duplication (including duplication of the foregoing
items), all interest capitalized for such period, all interest attributable to discontinued
operations for such period to the extent not set forth on the income statement under the
caption “interest expense” or any like caption, and all interest actually paid by the Company or a
Restricted Subsidiary under any guarantee of Indebtedness (including, without limitation, a
guarantee of principal, interest or any combination thereof) of any other Person during such period
and (ii) the amount of Disqualified Stock Dividends recognized by the Company on any Disqualified
Stock whether or not declared during such period.

     “Interest Payment Date” means April 15 and October 15 of each year to stated maturity,
commencing April 15, 2010.

     “Investments” of any Person means all (i) investments by such Person in any other
Person in the form of loans, advances or capital contributions, (ii) guarantees of Indebtedness or
other obligations of any other Person by such Person, (iii) purchases (or other acquisitions for
consideration) by such Person of Indebtedness, Capital Stock or other securities of any other
Person and (iv) other items that would be classified as investments on a balance sheet of such
Person determined in accordance with GAAP. For all purposes of this Indenture, the amount of any
such Investment shall be the fair market value thereof (with the fair market value of each
Investment being measured at the time made and without giving effect to subsequent changes in
value). The making of any payment in accordance with the terms of a guarantee or other contingent
obligation permitted under this Indenture shall not be considered an Investment.

     “Issue Date” means the initial date of issuance of the Notes under this Indenture.

     “Legal Holiday” means Saturday, Sunday or a day on which banking institutions in New
York, New York, Atlanta, Georgia or at a place of payment are authorized or obligated by law,
regulation or executive order to remain closed. If a payment date is a Legal Holiday at a place of
payment, payment shall be made at that place on the next succeeding day that is not a Legal
Holiday.

14

 

     “Letter of Transmittal” means the letter of transmittal to be prepared by the Company
and sent to all Holders of the Notes for use by such Holders in connection with the Exchange Offer.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or other similar encumbrance of any kind upon or in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law (including, without limitation, any
conditional sale or other title retention agreement).

     “Marketable Securities” means (a) equity securities that are listed on the New York
Stock Exchange, the American Stock Exchange or The Nasdaq Stock Market and (b) debt securities that
are rated by a nationally recognized rating agency, listed on the New York Stock Exchange or the
American Stock Exchange or covered by at least two reputable market makers.

     “Material Subsidiary” means any Subsidiary of the Company which accounted for 5% or
more of the Consolidated Tangible Assets or Consolidated Cash Flow Available
for Fixed Charges of the Company on a consolidated basis for the fiscal year ending
immediately prior to any Default or Event of Default.

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

     “Net Proceeds” means:

     (i) cash (in U.S. dollars or freely convertible into U.S. dollars) received by the Company or
any Restricted Subsidiary from an Asset Sale net of:

     (a) all brokerage commissions, investment banking fees and all other fees and expenses
(including, without limitation, fees and expenses of counsel, financial advisors,
accountants and investment bankers) related to such Asset Sale;

     (b) provisions for all income and other taxes measured by or resulting from such Asset
Sale of the Company or any of its Restricted Subsidiaries;

     (c) payments made to retire Indebtedness that was incurred in accordance with this
Indenture and that either (1) is secured by a Lien incurred in accordance with this
Indenture on the property or assets sold (other than Indebtedness secured by Liens on the
Collateral) or (2) is required in connection with such Asset Sale to the extent actually
repaid in cash;

     (d) amounts required to be paid to any Person (other than the Company or a Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale; and

     (e) appropriate amounts to be provided by the Company or any Restricted Subsidiary
thereof, as the case may be, as a reserve, in accordance with GAAP, against any liabilities
associated with such Asset Sale and retained by the Company or any Restricted Subsidiary
thereof, as the case may be, after such Asset Sale, including, without limitation, pension
and other post-employment benefit liabilities, liabilities

15

 

related to environmental matters
and liabilities under any indemnification obligations or post-closing purchase price
adjustments associated with such Asset Sale, all as reflected in an Officers’ Certificate
delivered to the Trustee; and

     (ii) all non-cash consideration received by the Company or any of its Restricted Subsidiaries
from such Asset Sale upon the liquidation or conversion of such consideration into cash, without
duplication, net of all items enumerated in subclauses (a) through (e) of clause (i) hereof.

     “Non-Conforming Plan of Reorganization” means any plan of reorganization that grants
any Noteholder Secured Party any right or benefit, directly or indirectly, which right or benefit
is prohibited at such time by the provisions of the Intercreditor Agreement.

     “Non-Recourse Indebtedness” with respect to any Person means Indebtedness of such
Person for which (i) the sole legal recourse for collection of principal and interest on such
Indebtedness is against the specific property identified in the instruments evidencing or securing
such Indebtedness and such property was acquired (directly or indirectly, including through the
purchase of Capital Stock of the Person owning such property) with the proceeds of such
Indebtedness or such Indebtedness was Incurred within 90 days after the acquisition (directly or
indirectly, including through the purchase of Capital Stock of the Person owning such property) of
such property and (ii) no other assets of such Person may be realized upon in collection of
principal or interest on such Indebtedness. Indebtedness which is otherwise Non-Recourse
Indebtedness will not lose its character as Non-Recourse Indebtedness because there is recourse to
the borrower, any guarantor or any other Person for (a) environmental warranties and indemnities,
(b) indemnities for and liabilities arising from fraud, misrepresentation, misapplication or
non-payment of rents, profits, insurance and condemnation proceeds and other sums actually received
by the borrower from secured assets to be paid to the lender, waste and mechanics’ liens or (c) in
the case of the borrower thereof only, other obligations in respect of such Indebtedness that are
payable solely as a result of a voluntary bankruptcy filing (or similar filing or action) by such
borrower.

     “Non-U.S. Person” means a Person who is not a U.S. Person.

     “Notes” means the Notes as set forth in the recitals and more particularly means any
Notes authenticated and delivered under this Indenture, including the Exchange Notes and any
Additional Notes. Unless the context requires otherwise, references to “Notes” for all purposes of
this Indenture include any Additional Notes that are actually issued.

     “Notes Collateral” means all of the Collateral other than the First Priority
Collateral.

     “Notes Collateral Agent” means Wilmington Trust FSB until a successor replaces such
party in accordance with the applicable provisions of the Collateral Agreement and thereafter means
the successor notes collateral agent serving under the Collateral Agreement.

     “Obligations” means, with respect to any Indebtedness, all obligations (whether in
existence on the Issue Date or arising afterwards, absolute or contingent, direct or indirect) for
or in respect of principal (when due, upon acceleration, upon redemption, upon mandatory

16

 

repayment
or repurchase pursuant to a mandatory offer to purchase, or otherwise), premium, interest,
penalties, fees, indemnification, reimbursement and other amounts payable and liabilities with
respect to such Indebtedness, including all interest accrued or accruing after the commencement of
any bankruptcy, insolvency or reorganization or similar case or proceeding at the contract rate
(including, without limitation, any contract rate applicable upon default) specified in the
relevant documentation, whether or not the claim for such interest is allowed as a claim in such
case or proceeding.

     “Officer” means the chairman, the chief executive officer, the president, the chief
financial officer, the chief operating officer, the chief accounting officer, the treasurer, or any
assistant treasurer, the controller, the secretary, any assistant secretary or any vice president
of a Person.

     “Officers’ Certificate” means a certificate signed by two Officers, one of whom must
be the Person’s chief executive officer, chief operating officer, chief financial officer or chief
accounting officer.

     “OID Legend” means the legend set forth in Section 2.06(g)(iv) hereof to be placed on
each Note issued hereunder that has more than a de minimis amount of original issue discount for
U.S. federal income tax purposes.

     “Other Pari Passu Lien Obligations” has the meaning set forth in clause (xi)(c) of the
definition of Permitted Liens.

     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a
Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with
respect to DTC, shall include Euroclear and Clearstream).

     “Participating Broker-Dealer” has the meaning set forth in the Registration Rights
Agreement.

     “Paying Agent” means any office or agency where Notes and the Subsidiary Guarantees
may be presented for payment.

     “Permitted Investments” of any Person means Investments of such Person in:

     (i) Cash Equivalents;

     (ii) in the case of the Company and its Subsidiaries, any receivables, loans or other
consideration taken by the Company or a Subsidiary in connection with the sale of any asset
otherwise permitted by this Indenture; provided that non-cash consideration received in an
Asset Sale or an exchange or swap of assets shall be pledged as Collateral under the Security
Documents to the extent the assets subject to such Asset Sale or exchange or swap of assets
constituted Collateral, with the Lien on such Collateral being of the same priority with respect to
the Notes as the Lien on the assets disposed of; provided, further, that
notwithstanding the

17

 

foregoing clause, up to an aggregate of $25.0 million of (x) non-cash
consideration and consideration received as referred to in Section 4.13(b)(ii) (y) assets invested
in pursuant to Section 4.13(c) and (z) assets received pursuant to clause (iv) of the proviso set
forth in the definition of “Asset Sale” may be designated by the Company as Excluded Property not
required to be pledged as Collateral;

     (iii) Investments in joint ventures or Unrestricted Subsidiaries having an aggregate fair
market value (with the fair market value of each Investment being measured at the time made and
without giving effect to subsequent changes in value), taken together with all other Investments
made pursuant to this clause (iii) that are at the time outstanding, net of any amounts paid to the
Company or any Restricted Subsidiary as a return of, or on, such Investments not to exceed the
greater of (x) $50.0 million and (y) if the Covenant Trigger Date has occurred, 3.0% of
Consolidated Tangible Assets; and

     (iv) other Investments having an aggregate fair market value (with the fair market value of
each Investment being measured at the time made and without giving effect to subsequent changes in
value), taken together with all other Investments made pursuant to this clause (iv) that are at the
time outstanding, net of any amounts paid to the Company or any Restricted Subsidiary as a return
of, or on, such Investments not to exceed $10.0 million.

     “Permitted Liens” means

     (i) Liens for taxes, assessments or governmental charges or claims that either (a) are not yet
delinquent or (b) are being contested in good faith by appropriate proceedings and as to which
appropriate reserves have been established or other provisions have been made in accordance with
GAAP;

     (ii) statutory Liens of landlords and carriers’, warehousemen’s, mechanics’, suppliers’,
materialmen’s, repairmen’s or other Liens imposed by law and arising in the ordinary course of
business and with respect to amounts that, to the extent applicable, either (a) are not yet
delinquent or (b) are being contested in good faith by appropriate proceedings and as to which
appropriate reserves have been established or other provisions have been made in accordance with
GAAP;

     (iii) Liens (other than any Lien imposed by the Employee Retirement Income Security Act of
1974, as amended) incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security;

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

18

 

     (v) attachment or judgment Liens not giving rise to a Default or an Event of Default and which
are being contested in good faith by appropriate proceedings;

     (vi) easements, rights-of-way, restrictions and other similar charges or encumbrances not
materially interfering with the ordinary course of business of the Company and its Subsidiaries;

     (vii) zoning restrictions, licenses, restrictions on the use of real property or minor
irregularities in title thereto, which do not materially impair the use of such real property in
the ordinary course of business of the Company and its Subsidiaries or the value of such real
property for the purpose of such business;

     (viii) leases or subleases granted to others not materially interfering with the ordinary
course of business of the Company and its Subsidiaries;

     (ix) purchase money mortgages (including, without limitation, Capitalized Lease Obligations
and purchase money security interests);

     (x) Liens securing Refinancing Indebtedness; provided that such Liens only extend to
assets which are similar to the type of assets securing the Indebtedness being refinanced and such
refinanced Indebtedness was previously secured by such similar assets;

     (xi) Liens securing:

     (a) the Notes (including any Additional Notes), the Exchange Notes, the Subsidiary
Guarantees thereof and other Obligations under this Indenture and the Security Documents
and in respect thereof and any obligations owing to the Trustee or the Notes Collateral
Agent under this Indenture or the Security Documents;

     (b) (i) up to aggregate amount of Indebtedness or other obligations of the Company and
the Restricted Subsidiaries equal to the greatest of (i) $150.0 million, (ii) 7.5% of
Consolidated Tangible Assets (but not in excess of $200.0 million) and (iii) following the
Covenant Trigger Date, 15% of Consolidated Tangible Assets, in each case otherwise
permitted to be incurred under this Indenture (and all obligations, including letters of
credit and similar instruments, incurred, issued or arising thereunder) and Liens securing
Refinancing Indebtedness in respect thereof, which Liens incurred under this clause (b) may
be on a first-lien priority basis compared to the Notes on terms as set forth in the
Intercreditor Agreement (collectively, “First Priority Obligations”);
provided that the proceeds of any such Indebtedness constituting First Priority
Obligations shall not be used to repay or repurchase (and such Indebtedness shall not be
issued in exchange for) any other Indebtedness of the Company or any of its Subsidiaries
that is unsecured or secured by Liens on all or any portion of the Collateral that are pari
passu with or junior to the Liens securing the Notes; and

     (c) up to aggregate amount of Indebtedness or other obligations of the Company and the
Restricted Subsidiaries equal to the greater of (i) $700.0 million (but not to exceed,
prior to the date that mortgages with respect to real properties have been

19

 

granted to the
Notes Collateral Agent covering an aggregate Book
Value of real properties equal to at least $700.0 million, an amount equal to the
aggregate Book Value of real properties covered by mortgages granted to the Notes
Collateral Agent since the Issue Date) and (ii) following the Covenant Trigger Date, 40% of
Consolidated Tangible Assets, in each case less the amount of Indebtedness secured under
clauses (a) and (b) above and clause (xxvii) below, otherwise permitted to be incurred
under this Indenture (and all obligations, including letters of credit and similar
instruments, incurred, issued or arising thereunder) and Liens securing Refinancing
Indebtedness in respect thereof, which Liens incurred under this clause (c) shall, to the
extent on Collateral, either (x) be on a pari passu lien priority basis compared to the
Notes on terms as set forth in the Intercreditor Agreement (collectively, “Other Pari
Passu Lien Obligations”) or (y) be on a junior lien priority basis compared to the
Notes on a basis substantially the same as the basis on which the Liens securing the Notes
are treated under the Intercreditor Agreement with respect to the First Priority Liens,
pursuant to an intercreditor agreement, in form and substance similar to the Intercreditor
Agreement or as otherwise reasonably satisfactory to the First Priority Collateral Agents
and the Notes Collateral Agent (collectively, “Junior Lien Obligations”);

provided that in the case of (b) and (c) (other than in the case of Junior Lien
Obligations), the holders of such secured Obligations (or a representative thereof) become party to
the Intercreditor Agreement;

     (xii) any interest in or title of a lessor or sublessor to property subject to any (x)
Capitalized Lease Obligations incurred in compliance with the provisions of this Indenture or (y)
any lease or sublease;

     (xiii) Liens existing on the date of this Indenture, including, without limitation, Liens
securing Existing Indebtedness;

     (xiv) any option, contract or other agreement to sell an asset; provided such sale is
not otherwise prohibited under this Indenture;

     (xv) Liens securing Non-Recourse Indebtedness of the Company or a Restricted Subsidiary
thereof;

     (xvi) Liens on property or assets of any Restricted Subsidiary securing Indebtedness of such
Restricted Subsidiary owing to the Company or one or more Restricted Subsidiaries;

     (xvii) Liens securing Indebtedness of an Unrestricted Subsidiary;

     (xviii) any right of a lender or lenders to which the Company or a Restricted Subsidiary may
be indebted to offset against, or appropriate and apply to the payment of, such Indebtedness any
and all balances, credits, deposits, accounts or monies of the Company or a Restricted Subsidiary
with or held by such lender or lenders;

     (xix) any pledge or deposit of cash or property in conjunction with obtaining surety and
performance bonds and letters of credit required to engage in constructing on-site and off-site

20

 

improvements required by municipalities or other governmental authorities in the ordinary course of
business of the Company or any Restricted Subsidiary;

     (xx) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods;

     (xxi) Liens encumbering customary initial deposits and margin deposits, and other Liens that
are customary in the industry and incurred in the ordinary course of business securing Indebtedness
under Hedging Obligations and forward contracts, options, futures contracts, futures options or
similar agreements or arrangements designed to protect the Company or any of its Subsidiaries from
fluctuations in the price of commodities;

     (xxii) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by the Company or any of its Subsidiaries in the
ordinary course of business;

     (xxiii) Liens on property acquired by the Company or a Restricted Subsidiary and Liens on
property of a Person existing at the time such Person is merged with or into or consolidated with
the Company or any Restricted Subsidiary or becomes a Restricted Subsidiary; provided that
in each case such Liens (A) were in existence prior to the contemplation of such acquisition,
merger or consolidation and (B) do not extend to any asset other than those of the Person merged
with or into or consolidated with the Company or the Restricted Subsidiary or the property acquired
by the Company or the Restricted Subsidiary;

     (xxiv) Liens replacing any of the Liens described in clauses (xiii) and (xxiii) above;
provided that (A) the principal amount of the Indebtedness secured by such Liens shall not
be increased (except to the extent of reasonable premiums or other payments required to be paid in
connection with the repayment of the previously secured Indebtedness or Incurrence of related
Refinancing Indebtedness and expenses Incurred in connection therewith) and (B) the new Liens shall
be limited to the property or part thereof which secured the Lien so replaced or property
substituted therefor as a result of the destruction, condemnation or damage of such property;

     (xxv) Liens arising from UCC financing statement filings regarding operating leases entered
into by the Company and its Restricted Subsidiaries in the ordinary course of business;

     (xxvi) Liens securing Indebtedness incurred pursuant to Section 4.12(b)(ix) hereof; and

     (xxvii) Liens securing Indebtedness incurred pursuant to Section 4.12(b)(x) hereof;
provided that such Liens extend only to the land or lots to which such Indebtedness
relates.

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

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

21

 

     “Private Placement Legend” means the legend set forth in Section 2.06(g)(i) hereof to
be placed on all Notes issued under this Indenture, except where otherwise permitted by the
provisions of this Indenture.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Real Estate Business” means homebuilding, housing construction, real estate
development or construction and the sale of homes and related real estate activities, including the
provision of mortgage financing or title insurance.

     “Record Date” for the interest, if any, payable on any applicable Interest Payment
Date means April 1 or October 1 (whether or not a Business Day) next preceding such Interest
Payment Date.

     “Refinancing Indebtedness” means Indebtedness that refunds, refinances or extends any
Existing Indebtedness or other Indebtedness permitted to be incurred by the Company or its
Restricted Subsidiaries pursuant to the terms of this Indenture, but only to the extent that:

     (i) the Refinancing Indebtedness is subordinated in right of payment to the Notes or the
Subsidiary Guarantees, as the case may be, to the same extent as the Indebtedness being refunded,
refinanced or extended, if at all;

     (ii) the Refinancing Indebtedness is scheduled to mature either (a) no earlier than the
Indebtedness being refunded, refinanced or extended, or (b) after the maturity date of the Notes;

     (iii) the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on or
prior to the maturity date of the Notes has a Weighted Average Life to Maturity at the time such
Refinancing Indebtedness is Incurred that is equal to or greater than the Weighted Average Life to
Maturity of the portion of the Indebtedness being refunded, refinanced or extended that is
scheduled to mature on or prior to the maturity date of the Notes;

     (iv) such Refinancing Indebtedness is in an aggregate amount that is equal to or less than the
aggregate amount then outstanding (including accrued interest) under the Indebtedness being
refunded, refinanced or extended plus an amount necessary to pay any reasonable fees and expenses,
including premiums and defeasance costs, related to such refinancing;

     (v) such Refinancing Indebtedness is Incurred by the same Person that initially Incurred the
Indebtedness being refunded, refinanced or extended, except that the Company may Incur Refinancing
Indebtedness to refund, refinance or extend Indebtedness of any Restricted Subsidiary; and

     (vi) such Refinancing Indebtedness is Incurred within 180 days before or after the
Indebtedness being refunded, refinanced or extended is so refunded, refinanced or extended.

     “Registrar” means an office or agency where Notes may be presented for registration of
transfer or for exchange.

22

 

     “Registration Rights Agreement” means the Registration Rights Agreement related to the
Notes, dated the Issue Date, among the Company, the Subsidiary Guarantors and Citigroup Global
Markets Inc.

     “Regulation S” means Regulation S promulgated under the Securities Act.

     “Regulation S Global Note” means a Global Note in the form of Exhibit A
hereto, as the case may be, bearing the Global Note Legend, the Private Placement Legend, the
Regulation S Global Note Legend and, if applicable, the OID Legend and deposited with or on behalf
of and registered in the name of the Depositary or its nominee, issued in a denomination equal to
the outstanding principal amount of the Notes initially sold in reliance on Rule 903.

     “Regulation S Global Note Legend” means the legend set forth in Section 2.06(g)(iii)
hereof to be placed on the Regulation S Global Note.

     “Restricted Definitive Note” means a Definitive Note bearing the Private Placement
Legend.

     “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

     “Restricted Investment” with respect to any Person means any Investment (other than
any Permitted Investment) by such Person in any (i) of its Affiliates, (ii) executive officer or
director or any Affiliate of such Person, or (iii) any other Person other than a Restricted
Subsidiary. Notwithstanding the above, a Subsidiary Guarantee shall not be deemed a Restricted
Investment.

     “Restricted Payment” means any of the following:

     (i) the declaration of any dividend or the making of any other payment or distribution of
cash, securities or other property or assets in respect of the Capital Stock of the Company or any
Restricted Subsidiary (other than (a) dividends, payments or distributions payable solely in
Capital Stock (other than Disqualified Stock) of the Company or a Restricted Subsidiary and (b) in
the case of a Restricted Subsidiary, dividends, payments or distributions payable to the Company or
to another Restricted
Subsidiary and pro rata dividends, payments or distributions payable to minority stockholders
of such Restricted Subsidiary);

     (ii) the purchase, redemption, retirement or other acquisition for value of any Capital Stock
of the Company or any Restricted Subsidiary (other than Capital Stock held by the Company or a
Restricted Subsidiary);

     (iii) any Restricted Investment; and

     (iv) any principal payment, redemption, repurchase, defeasance or other acquisition or
retirement of any Subordinated Indebtedness (other than (a) Indebtedness permitted under Section
4.12(b)(vii) hereof or (b) the payment, redemption, repurchase, defeasance or other acquisition or
retirement of such Indebtedness in anticipation of satisfying a sinking fund obligation, principal
installment or final maturity, in each case due within one year of the date of such payment,
redemption, repurchase, defeasance or other acquisition or retirement);

23

 

provided, however, that Restricted Payments will not include any purchase,
redemption, retirement or other acquisition for value of Indebtedness or Capital Stock of the
Company or a Restricted Subsidiary if the consideration therefor consists solely of Capital Stock
(other than Disqualified Stock) of the Company or a Restricted Subsidiary.

     “Restricted Period” means the 40-day distribution compliance period as defined in
Regulation S.

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

     “Revolving Credit Facility” means the Amended and Restated Credit Agreement, dated as
of August 5, 2009, among the Company, the lenders and letter of credit issuers party thereto, and
Citibank, N.A., as agent and swingline lender, as such facility may be amended, restated,
supplemented or otherwise modified from time to time.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the Persons who at the
time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such Person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

     “Rule 144” means Rule 144 promulgated under the Securities Act.

     “Rule 144A” means Rule 144A promulgated under the Securities Act.

     “Rule 405” means Rule 405 promulgated under the Securities Act.

     “Rule 902” means Rule 902 promulgated under the Securities Act.

     “Rule 903” means Rule 903 promulgated under the Securities Act.

     “Rule 904” means Rule 904 promulgated under the Securities Act.

     “S&P” means Standard and Poor’s Ratings Service, a division of McGraw Hill, Inc., a
New York corporation, or any successor to its debt rating business.

     “SEC” means the Securities and Exchange Commission.

     “Second Priority Liens” means the Liens on any or all of the First Priority Collateral
that secure any or all of the Obligations with respect to the Notes.

     “Second Priority Obligations” means all Indebtedness and other Obligations under this
Indenture, the Notes, the Guarantees and the Security Documents.

24

 

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

     “Security Documents” means the Collateral Agreement, the Escrow Agreement and the
security agreements, pledge agreements, mortgages, collateral assignments, UCC financing statements
and related agreements, as amended, supplemented, restated, renewed, refunded, replaced,
restructured, repaid, refinanced or otherwise modified from time to time, creating the security
interests in the Collateral as contemplated by this Indenture.

     “Security Register” is a register of the Notes and of their transfer and exchange kept
by the Registrar.

     “Shelf Registration Statement” means the Shelf Registration Statement as defined in
the Registration Rights Agreement.

     “Subordinated Indebtedness” means any Indebtedness which is subordinated in right of
payment to the Notes or the Subsidiary Guarantees, as the case may be.

     “Subsidiary” of any Person means any (i) corporation of which at least a majority of
the aggregate voting power of all classes of the Common Equity is directly or indirectly
beneficially owned by such Person and (ii) any entity other than a corporation of which such
Person, directly or indirectly, beneficially owns at least a majority of the Common Equity;
provided that in each of case (i) and (ii), such Person is required to consolidate such
entity in accordance with GAAP.

     “Subsidiary Guarantee” means the guarantee of the Notes by each Subsidiary Guarantor
under this Indenture.

     “Subsidiary Guarantors” means (i) each of the Company’s Restricted Subsidiaries in
existence on the Issue Date, other than The Ridings Development LLC and (ii) each of the Company’s
Subsidiaries that becomes a guarantor of the Notes pursuant to the provisions of this Indenture.

     “Treasury Rate” means, as of any redemption date, the yield to maturity as of such
redemption date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Days prior to the redemption date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the redemption date to October 15, 2012; provided,
however, that if the period from the redemption date to October 15, 2012 is less than one
year, the weekly average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year will be used.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended.

     “Trustee” means the party named as such until a successor replaces such party in
accordance with the applicable provisions of this Indenture and thereafter means the successor
trustee serving under this Indenture.

25

 

     “Unrestricted Definitive Note” means one or more Definitive Notes that do not bear and
are not required to bear the Private Placement Legend.

     “Unrestricted Global Note” means a permanent Global Note, substantially in the form of
Exhibit A attached hereto, as the case may be, that bears the Global Note Legend and, if
applicable, the OID Legend and that has the “Schedule of Exchanges of Interests in the Global Note”
attached thereto, and that is deposited with or on behalf of and registered in the name of the
Depositary, representing Notes that do not bear the Private Placement Legend.

     “Unrestricted Subsidiary” means United Home Insurance Corporation, a Vermont
corporation, Security Title Insurance Company, Inc., a Vermont corporation, and, to the extent
considered a Subsidiary of the Company, Beazer Homes Capital Trust I, and each of the Subsidiaries
of the Company (including any newly formed or acquired Subsidiary) so designated by a resolution
adopted by the Board of Directors of the Company as provided below and provided that:

     (a) neither the Company nor any of its other Subsidiaries (other than Unrestricted
Subsidiaries)(1) provides any direct or indirect credit support for any Indebtedness of such
Subsidiary (including any undertaking, agreement or instrument evidencing such Indebtedness)
or (2) is directly or indirectly liable for any Indebtedness of such Subsidiary;

     (b) the creditors with respect to Indebtedness for borrowed money of such Subsidiary
have agreed in writing that they have no recourse, direct or indirect, to the Company or any
other Subsidiary of the Company (other than Unrestricted Subsidiaries), including, without
limitation, recourse with respect to the payment of principal or interest on any
Indebtedness of such Subsidiary; and

     (c) no default with respect to any Indebtedness of such Subsidiary (including any right
which the holders thereof may have to take enforcement action against such Subsidiary) would
permit (upon notice, lapse of time or both) any holder of any other Indebtedness of the
Company and of its other Subsidiaries (other than other Unrestricted Subsidiaries), to
declare a default on such other Indebtedness or cause the payment thereof to be accelerated
or payable prior to its stated maturity.

          The Board of Directors of the Company may designate an Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that:

     (i) any such redesignation will be deemed to be an Incurrence by the Company and its
Restricted Subsidiaries of the Indebtedness (if any) of such redesignated Subsidiary for purposes
of Section 4.12 hereof as of the date of such redesignation;

     (ii) immediately after giving effect to such redesignation and the Incurrence of any such
additional Indebtedness, the Company and its Restricted Subsidiaries could incur $1.00 of
additional Indebtedness under the Consolidated Fixed Charge Coverage Ratio contained in Section
4.12 hereof; and

26

 

     (iii) the Liens on the property and assets of such Unrestricted Subsidiary could then be
incurred in accordance with Section 4.15 hereof as of the date of such redesignation.

          Subject to the foregoing, the Board of Directors of the Company also may designate any
Restricted Subsidiary to be an Unrestricted Subsidiary; provided that:

     (i) all previous Investments by the Company and its Restricted Subsidiaries in such Restricted
Subsidiary (net of any returns previously paid on such Investments) will be deemed to be Restricted
Payments at the time of such designation and will reduce the amount available for Restricted
Payments under Section 4.07 hereof;

     (ii) immediately after giving effect to such designation and reduction of amounts available
for Restricted Payments under Section 4.07 hereof, either (x) the Company and its Restricted
Subsidiaries could incur $1.00 of additional Indebtedness under the Consolidated Fixed Charge
Coverage Ratio contained in Section 4.12 hereof or (y) the Consolidated Fixed Charge Coverage Ratio
for the Company and its Restricted Subsidiaries would be greater than such ratio immediately prior
to such designation, in each case on a pro forma basis taking into account such designation; and

     (iii) no Default or Event of Default shall have occurred or be continuing. Any such
designation or redesignation by the Board of Directors of the Company will be evidenced to the
Trustee by the filing with the Trustee of a certified copy of the resolution of the Board of
Directors of the Company giving effect to such designation or redesignation and an Officers’
Certificate certifying that such designation or redesignation complied with the foregoing
conditions and setting forth the underlying calculations.

     “U.S. Person” means a U.S. person as defined in Rule 902(k) under the Securities Act.

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

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness or portion
thereof, at any date, the number of years obtained by dividing (i) the sum of the products obtained
by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or
other required payment of principal, including, without limitation, payment at final maturity, in
respect thereof, by (b) the number of years (calculated to the nearest one-twelfth)

27

 

that will elapse between such date and the making of such payment by (ii) the sum of all such
payments described in clause (a) above.

     “Wholly Owned Subsidiary” of any Person means (i) a Subsidiary of which 100% of the
Common Equity (except for directors’ qualifying shares or certain minority interests owned by other
Persons solely due to local law requirements that there be more than one stockholder, but which
interest is not in excess of what is required for such purpose) is owned directly by such Person or
through one or more other Wholly Owned Subsidiaries of such Person, or (ii) any entity other than a
corporation in which such Person, directly or indirectly, owns all of the Common Equity of such
entity.

          Section 1.02 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Affiliate Transaction”
	 	 	4.14	 
	“Asset Sale Offer Date”
	 	 	4.13	 
	“Asset Sale Offer Price”
	 	 	4.13	 
	“Change of Control Offer”
	 	 	4.08	 
	“Change of Control Payment Date”
	 	 	4.08	 
	“Change of Control Price”
	 	 	4.08	 
	“Covenant Defeasance”
	 	 	7.02	 
	“DTC”
	 	 	2.03	 
	“Event of Default”
	 	 	5.01	 
	“Excess Proceeds”
	 	 	4.13	 
	“Excess Proceeds Offer”
	 	 	4.13	 
	“Legal Defeasance”
	 	 	7.01	 
	“Note Register”
	 	 	2.03	 
	“Successor”
	 	 	4.17	 

          Section 1.03 Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made a part of this Indenture.

          The following Trust Indenture Act terms used in this Indenture have the following meanings:

          “indenture securities” means the Notes;

          “indenture security Holder” means a Holder of a Note;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee; and

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          “obligor” on the Notes and the Subsidiary Guarantees means the Company and the Subsidiary
Guarantors, respectively, and any successor obligor upon the Notes and the Subsidiary Guarantees,
respectively.

          All other terms used in this Indenture that are defined by the Trust Indenture Act, defined by
Trust Indenture Act reference to another statute or defined by SEC rule under the Trust Indenture
Act have the meanings so assigned to them.

          Section 1.04 Rules of Construction.

          Unless the context otherwise requires:

               (a) a term has the meaning assigned to it;

               (b) an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

               (c) “or” is not exclusive;

               (d) words in the singular include the plural, and in the plural include the singular;

               (e) “will” shall be interpreted to express a command;

               (f) provisions apply to successive events and transactions;

               (g) references to sections of, or rules under, the Securities Act shall be deemed to include
substitute, replacement or successor sections or rules adopted by the SEC from time to time;

               (h) unless the context otherwise requires, any reference to an “Article,” “Section” or
“clause” refers to an Article, Section or clause, as the case may be, of this Indenture; and

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

          Section 1.05 Acts of Holders.

               (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing. Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to the Trustee and,
where it is hereby expressly required, to the Company. Proof of execution of any such instrument
or of a writing appointing any such agent, or the holding by any Person of a Note, shall be
sufficient for any purpose of this Indenture and

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(subject to Section 6.01) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section 1.05.

               (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of any notary public
or other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by or on behalf of any legal entity other than an individual, such certificate or affidavit
shall also constitute proof of the authority of the Person executing the same. The fact and date
of the execution of any such instrument or writing, or the authority of the Person executing the
same, may also be proved in any other manner that the Trustee deems sufficient.

               (c) The ownership of Notes shall be proved by the Note Register.

               (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Note shall bind every future Holder of the same Note and the Holder of every Note
issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of any action taken, suffered or omitted by the Trustee or the Company in reliance thereon,
whether or not notation of such action is made upon such Note.

               (e) The Company may, in the circumstances permitted by the Trust Indenture Act, set a record
date for purposes of determining the identity of Holders entitled to give any request, demand,
authorization, direction, notice, consent, waiver or take any other act, or to vote or consent to
any action by vote or consent authorized or permitted to be given or taken by Holders, but shall
have no obligation to do so.

               (f) Without limiting the foregoing, a Holder entitled to take any action hereunder with regard
to any particular Note may do so with regard to all or any part of the principal amount of such
Note or by one or more duly appointed agents, each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount. Any notice given or action taken by a
Holder or its agents with regard to different parts of such principal amount pursuant to this
paragraph shall have the same effect as if given or taken by separate Holders of each such
different part.

               (g) Without limiting the generality of the foregoing, a Holder, including DTC that is the
Holder of a Global Note, may make, give or take, by a proxy or proxies duly appointed in writing,
any request, demand, authorization, direction, notice, consent, waiver or other action provided in
this Indenture to be made, given or taken by Holders, and DTC that is
the Holder of a Global Note may provide its proxy or proxies to the beneficial owners of
interests in any such Global Note through such depositary’s standing instructions and customary
practices.

               (h) The Company may fix a record date for the purpose of determining the Persons who are
beneficial owners of interests in any Global Note held by DTC entitled under the procedures of such
depositary to make, give or take, by a proxy or proxies duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or

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other action provided in this
Indenture to be made, given or taken by Holders, but shall have no obligation to do so. If such a
record date is fixed, the Holders on such record date or their duly appointed proxy or proxies, and
only such Persons, shall be entitled to make, give or take such request, demand, authorization,
direction, notice, consent, waiver or other action, whether or not such Holders remain Holders
after such record date. No such request, demand, authorization, direction, notice, consent, waiver
or other action shall be valid or effective if made, given or taken more than 180 days after such
record date.

ARTICLE II

THE NOTES

          Section 2.01 Form and Dating; Terms.

               (a) General. The Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A hereto. The Notes may have notations, legends or
endorsements required by law, stock exchange rules or usage. Each Note shall be dated the date of
its authentication. The Notes shall be in minimum denominations of $2,000 and integral multiples
of $1,000 in excess thereof.

               (b) Global Notes. Notes issued in global form shall be substantially in the form of
Exhibit A hereto (including the Global Note Legend thereon and the “Schedule of Exchanges
of Interests in the Global Note” attached thereto). Notes issued in definitive form shall be
substantially in the form of Exhibit A attached hereto (but without the Global Note Legend
thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto).
Each Global Note shall represent such of the outstanding Notes as shall be specified in the
“Schedule of Exchanges of Interests in the Global Note” attached thereto and each shall provide
that it shall represent up to the aggregate principal amount of Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented thereby may from
time to time be reduced or increased, as applicable, to reflect exchanges and redemptions and
transfers of interests. Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of outstanding Notes represented thereby shall be made
by the Trustee or the Trustee, as custodian with respect to the Notes in global form or any
successor entity thereof, at the direction of the Trustee, in accordance with instructions given by
the Holder thereof as required by Section 2.06 hereof.

               (c) Terms. The aggregate principal amount of Notes that may be authenticated and
delivered under this Indenture is unlimited.

          The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Subsidiary Guarantors and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Note conflicts with the express
provisions of this Indenture, the provisions of this Indenture shall govern and be controlling.

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          The Notes shall be subject to repurchase by the Company pursuant to an Asset Sale Offer as
provided in Section 4.13 hereof or a Change of Control Offer as provided in Section 4.08 hereof.
The Notes shall not be redeemable, other than as provided in Article 3.

          Additional Notes ranking pari passu with the Notes may be created and issued from time to time
by the Issuer without notice to or consent of the Holders and shall be consolidated with and form a
single class with the Notes and shall have the same terms as to status, waivers, amendments, offers
to purchase, redemption or otherwise as the Notes; provided that the Issuer’s ability to
issue Additional Notes shall be subject to the Issuer’s compliance with Section 4.12 hereof. Any
additional Notes shall be issued with the benefit of an indenture supplemental to this Indenture.

               (d) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the
“General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream shall
be applicable to transfers of beneficial interests in the Regulation S Global Notes that are held
by Participants through Euroclear or Clearstream.

          Section 2.02 Execution and Authentication.

          At least one Officer shall execute the Notes on behalf of the Company by manual or facsimile
signature.

          If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid.

          A Note shall not be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose until authenticated substantially in the form provided for in Exhibit A
attached hereto, as the case may be, by the manual or facsimile signature of the Trustee. The
signature shall be conclusive evidence that the Note has been duly authenticated and delivered
under this Indenture.

          On the Issue Date, the Trustee shall, upon receipt of an Authentication Order, authenticate
and deliver the Notes. In addition, at any time, from time to time, the Trustee shall upon an
Authentication Order authenticate and deliver any (i) Additional Notes or (ii) Exchange

Notes or private exchange notes for issue only in an Exchange Offer or a private exchange,
respectively, pursuant to a Registration Rights Agreement, for a like principal amount of Notes.
Such Authentication Order shall specify the amount of the Notes to be authenticated and, in the
case of any issuance of Additional Notes pursuant to Section 2.01 hereof, shall certify that such
issuance is in compliance with Section 4.12 of this Indenture.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Company.

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          Section 2.03 Registrar and Paying Agent.

          The Company shall maintain a Registrar and a Paying Agent. The Registrar shall keep a
register of the Notes (“Note Register”) and of their transfer and exchange. The Company
may appoint one or more co-registrars and one or more additional paying agents. The term
“Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying
agent. The Company may change any Paying Agent or Registrar without prior notice to any Holder.
The Company shall notify the Trustee in writing of the name and address of any Agent not a party to
this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying
Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as Paying
Agent or Registrar.

          The Company initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes.

          The Company initially appoints the Trustee to act as the Paying Agent and Registrar for the
Notes and to act as custodian with respect to the Global Notes.

          Section 2.04 Paying Agent to Hold Money in Trust.

          The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by
the Paying Agent for the payment of principal, premium, if any, or interest on the Notes, and will
notify the Trustee of any default by the Company in making any such payment. While any such
default continues, the Trustee may require a Paying Agent to pay all money held by it to the
Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as
Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders
all money held by it as Paying Agent. Upon any bankruptcy or
reorganization proceedings relating to the Company, the Trustee shall serve as Paying Agent
for the Notes.

          Section 2.05 Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with
Trust Indenture Act Section 312(a). If the Trustee is not the Registrar, the Company shall furnish
to the Trustee at least two Business Days before each Interest Payment Date and at such other times
as the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders of Notes and the Company shall
otherwise comply with Trust Indenture Act Section 312(a).

          Section 2.06 Transfer and Exchange.

               (a) Transfer and Exchange of Global Notes. Except as otherwise set forth in this
Section 2.06, a Global Note may be transferred, in whole and not in part, only to

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another nominee
of the Depositary or to a successor Depositary or a nominee of such successor Depositary. A
beneficial interest in a Global Note may not be exchanged for a Definitive Note unless (i) the
Depositary (x) notifies the Company that it is unwilling or unable to continue as Depositary for
such Global Note or (y) has ceased to be a clearing agency registered under the Exchange Act and,
in either case, a successor Depositary is not appointed by the Company within 120 days, (ii) the
Company, at its option, notifies the Trustee in writing that the Company elects to cause the
issuance of the Notes in certificated form (provided that under current industry practices,
the Depositary would notify Participants of the Company’s determination, but would only withdraw
beneficial interests from a Global Note at the request of Participants), or (iii) there shall have
occurred and be continuing a Default with respect to the Notes. Upon the occurrence of any of the
preceding events in (i), (ii) or (iii) above, Definitive Notes delivered in exchange for any Global
Note or beneficial interests therein will be registered in the names, and issued in any approved
denominations, requested by or on behalf of the Depositary (in accordance with its customary
procedures). Global Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu
of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10
hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note, except
for Definitive Notes issued subsequent to any of the preceding events in (i), (ii) or (iii) above
and pursuant to Section 2.06(c) hereof. A Global Note may not be exchanged for another Note other
than as provided in this Section 2.06(a); provided, however, beneficial interests
in a Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f)
hereof.

               (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer
and exchange of beneficial interests in the Global Notes shall be effected through the Depositary,
in accordance with the provisions of this Indenture and the Applicable
Procedures. Beneficial interests in the Restricted Global Notes shall be subject to
restrictions on transfer comparable to those set forth herein to the extent required by the
Securities Act. Transfers of beneficial interests in the Global Notes also shall require
compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the
other following subparagraphs, as applicable:

               (i) Transfer of Beneficial Interests in the Same Global Note.
Beneficial interests in any Restricted Global Note may be transferred to Persons who
take delivery thereof in the form of a beneficial interest in the same Restricted
Global Note in accordance with the transfer restrictions set forth in the Private
Placement Legend; provided, however, that prior to the expiration of
the Restricted Period, transfers of beneficial interests in the Regulation S Global
Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person
(other than an Initial Purchaser). Beneficial interests in any Unrestricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note. No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(b)(i).

               (ii) All Other Transfers and Exchanges of Beneficial Interests in Global
Notes. In connection with all transfers and exchanges of

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beneficial interests
that are not subject to Section 2.06(b)(i) hereof, the transferor of such beneficial
interest must deliver to the Registrar either (A) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance with
the Applicable Procedures directing the Depositary to credit or cause to be credited
a beneficial interest in another Global Note in an amount equal to the beneficial
interest to be transferred or exchanged and (2) instructions given in accordance
with the Applicable Procedures containing information regarding the Participant
account to be credited with such increase or (B) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance with
the Applicable Procedures directing the Depositary to cause to be issued a
Definitive Note in an amount equal to the beneficial interest to be transferred or
exchanged and (2) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in (1) above;
provided that in no event shall Definitive Notes be issued upon the transfer
or exchange of beneficial interests in the Regulation S Global Note prior to the
expiration of the Restricted Period. Upon consummation of an Exchange Offer by the
Company in accordance with Section 2.06(f) hereof, the requirements of this Section
2.06(b)(ii) shall be deemed to have been satisfied upon receipt by the Registrar of
the instructions contained in the Letter of Transmittal delivered by the Holder of
such beneficial interests in the Restricted Global Notes. Upon satisfaction of all
of the requirements for transfer or exchange of beneficial interests in Global Notes
contained in this Indenture and the Notes or otherwise applicable under the
Securities Act, the Trustee shall
adjust the principal amount of the relevant Global Note(s) pursuant to Section
2.06(h) hereof.

               (iii) Transfer of Beneficial Interests to Another Restricted Global
Note. A beneficial interest in any Restricted Global Note may be transferred to
a Person who takes delivery thereof in the form of a beneficial interest in another
Restricted Global Note if the transfer complies with the requirements of Section
2.06(b)(ii) hereof and the Registrar receives the following:

                    (A) if the transferee will take delivery in the form of a beneficial interest
in the 144A Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1) thereof; or

                    (B) if the transferee will take delivery in the form of a beneficial interest
in the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in item (2)
thereof.

               (iv) Transfer and Exchange of Beneficial Interests in a Restricted Global
Note for Beneficial Interests in an Unrestricted Global Note. A beneficial
interest in any Restricted Global Note may be exchanged by any holder thereof for a
beneficial interest in an Unrestricted Global Note or transferred to a

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Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note if the exchange or transfer complies with the requirements of Section
2.06(b)(ii) hereof and:

                    (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal that (w) at
the time the Exchange Offer begins, such Person has no arrangement or understanding
with any person to participate in the distribution of the Exchange Notes in
violation of the provisions of the Securities Act, (x) if such Person is not a
broker-dealer, such Person is not engaged in, and does not intend to engage in, a
distribution of the Exchange Notes, (y)(1) such Person is not an affiliate (as
defined in Rule 405) of the Company or (2) if such Person is an affiliate (as
defined in Rule 405) of the Company, such Person will comply with the registration
and prospectus delivery requirements of the Securities Act to the extent applicable,
and (z) any Exchange Notes to be received by such Person will be acquired in the
ordinary course of such Persons’ business;

                    (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

                    (C) such transfer is effected by a Participating Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the Registration Rights
Agreement; or

                    (D) the Registrar receives the following:

                    (1) if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a
beneficial interest in an Unrestricted Global Note, a certificate
from such Holder substantially in the form of Exhibit C
hereto, including the certifications in item (1)(a) thereof; or

                    (2) if the holder of such beneficial interest in a Restricted
Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the

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Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

     If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time
when an Unrestricted Global Note has not yet been issued, the Company shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee shall
authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to
the aggregate principal amount of beneficial interests transferred pursuant to subparagraph
(B) or (D) above.

     Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial interest in a
Restricted Global Note.

               (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

               (i) Beneficial Interests in Restricted Global Notes to Restricted
Definitive Notes. If any holder of a beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a Restricted Definitive Note
or to transfer such beneficial interest to a Person who takes delivery thereof in
the form of a Restricted Definitive Note, then, upon the occurrence of any of the
events in paragraph (i), (ii) or (iii) of Section 2.06(a) hereof and receipt by the
Registrar of the following documentation:

                    (A) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note, a
certificate from such holder substantially in the form of Exhibit C hereto,
including the certifications in item (2)(a) thereof;

                    (B) if such beneficial interest is being transferred to a QIB in accordance
with Rule 144A, a certificate substantially in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

                    (C) if such beneficial interest is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a certificate
substantially in the form of Exhibit B hereto, including the certifications
in item (2) thereof;

                    (D) if such beneficial interest is being transferred pursuant to an exemption
from the registration requirements of the Securities Act in accordance with Rule
144, a certificate substantially in the form of Exhibit B hereto, including
the certifications in item (3)(a) thereof;

                    (E) if such beneficial interest is being transferred to the Company or any of
its Restricted Subsidiaries, a certificate substantially in the form of Exhibit
B hereto, including the certifications in item (3)(b) thereof; or

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                    (F) if such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate substantially in the
form of Exhibit B hereto, including the certifications in item (3)(c)
thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall execute and the Trustee shall
authenticate and mail to the Person designated in the instructions a Definitive Note in the
applicable principal amount. Any Definitive Note issued in exchange for a beneficial interest in a
Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names
and in such authorized denomination or denominations as the holder of such beneficial interest
shall instruct the Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall mail such Definitive Notes to the Persons in whose names
such Notes are so registered. Any Definitive Note issued in exchange for a beneficial interest in
a Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.

               (ii) Beneficial Interests in Restricted Global Notes to Unrestricted
Definitive Notes. A holder of a beneficial interest in a Restricted Global Note
may exchange such beneficial interest for an Unrestricted Definitive Note or may
transfer such beneficial interest to a Person who takes delivery thereof in the form
of an Unrestricted Definitive Note only upon the occurrence of any of the events in
subsection (i), (ii) or (iii) of Section 2.06(a) hereof and if:

                    (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of such beneficial
interest, in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that (w) at the time the Exchange
Offer begins, such Person has no arrangement or understanding with any person to
participate in the distribution of the Exchange Notes in violation of the provisions
of the Securities Act, (x) if such Person is not a broker-dealer, such Person is not
engaged in, and does not intend to engage in, a distribution of the Exchange Notes,
(y)(1) such Person is not an affiliate (as defined in Rule 405) of the Company or
(2) if such Person is an affiliate (as defined in Rule 405) of the Company, such
Person will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, and (z) any Exchange Notes to be received
by such Person will be acquired in the ordinary course of such Persons’ business;

                    (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

                    (C) such transfer is effected by a Participating Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the Registration Rights
Agreement; or

                    (D) the Registrar receives the following:

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                    (1) if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for an
Unrestricted Definitive Note, a certificate from such holder
substantially in the form of Exhibit C hereto, including the
certifications in item (1)(b) thereof; or

                    (2) if the holder of such beneficial interest in a Restricted
Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery thereof in the form of an
Unrestricted Definitive Note, a certificate from such holder
substantially in the form of Exhibit B hereto, including the
certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

               (iii) Beneficial Interests in Unrestricted Global Notes to Unrestricted
Definitive Notes. If any holder of a beneficial interest in an Unrestricted
Global Note proposes to exchange such beneficial interest for a
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon the occurrence of any
of the events in subsection (i), (ii) or (iii) of Section 2.06(a) hereof and
satisfaction of the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee
shall cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(h) hereof, and the Company shall
execute and the Trustee shall authenticate and mail to the Person designated in the
instructions a Definitive Note in the applicable principal amount. Any Definitive
Note issued in exchange for a beneficial interest pursuant to this Section
2.06(c)(iii) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest shall
instruct the Registrar through instructions from or through the Depositary and the
Participant or Indirect Participant. The Trustee shall mail such Definitive Notes
to the Persons in whose names such Notes are so registered. Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(iii)
shall not bear the Private Placement Legend.

          (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

               (i) Restricted Definitive Notes to Beneficial Interests in Restricted
Global Notes. If any Holder of a Restricted Definitive Note proposes to
exchange such Note for a beneficial interest in a Restricted Global Note or to
transfer such Restricted Definitive Note to a Person who takes delivery thereof in

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the form of a beneficial interest in a Restricted Global Note, then, upon receipt by
the Registrar of the following documentation:

                    (A) if the Holder of such Restricted Definitive Note proposes to exchange such
Note for a beneficial interest in a Restricted Global Note, a certificate from such
Holder substantially in the form of Exhibit C hereto, including the
certifications in item (2)(b) thereof;

                    (B) if such Restricted Definitive Note is being transferred to a QIB in
accordance with Rule 144A, a certificate substantially in the form of Exhibit
B hereto, including the certifications in item (1) thereof;

                    (C) if such Restricted Definitive Note is being transferred to a Non-U.S.
Person in an offshore transaction in accordance with Rule 903 or Rule 904, a
certificate substantially in the form of Exhibit B hereto, including the
certifications in item (2) thereof;

                    (D) if such Restricted Definitive Note is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144, a certificate substantially in the form of Exhibit B hereto,
including the certifications in item (3)(a) thereof;

                    (E) if such Restricted Definitive Note is being transferred to the Company or
any of its Restricted Subsidiaries, a certificate
substantially in the form of Exhibit B hereto, including the
certifications in item (3)(b) thereof; or

                    (F) if such Restricted Definitive Note is being transferred pursuant to an
effective registration statement under the Securities Act, a certificate
substantially in the form of Exhibit B hereto, including the certifications
in item (3)(c) thereof,

the Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased the
aggregate principal amount of, in the case of clause (A) above, the applicable Restricted Global
Note, in the case of clause (B) above, the applicable 144A Global Note, and in the case of clause
(C) above, the applicable Regulation S Global Note.

               (ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes. A Holder of a Restricted Definitive Note may exchange such Note
for a beneficial interest in an Unrestricted Global Note or transfer such Restricted
Definitive Note to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note only if:

                    (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that (w) at the time the Exchange

40

 

Offer begins, such Person
has no arrangement or understanding with any person to participate in the
distribution of the Exchange Notes in violation of the provisions of the Securities
Act, (x) if such Person is not a broker-dealer, such Person is not engaged in, and
does not intend to engage in, a distribution of the Exchange Notes, (y)(1) such
Person is not an affiliate (as defined in Rule 405) of the Company or (2) if such
Person is an affiliate (as defined in Rule 405) of the Company, such Person will
comply with the registration and prospectus delivery requirements of the Securities
Act to the extent applicable, and (z) any Exchange Notes to be received by such
Person will be acquired in the ordinary course of such Persons’ business;

                    (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

                    (C) such transfer is effected by a Participating Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the Registration Rights
Agreement; or

                    (D) the Registrar receives the following:

                    (1) if the Holder of such Definitive Notes proposes to exchange
such Notes for a beneficial interest in the Unrestricted Global
Note, a certificate from such Holder
substantially in the form of Exhibit C hereto,
including the certifications in item (1)(c) thereof; or

                    (2) if the Holder of such Definitive Notes proposes to transfer
such Notes to a Person who shall take delivery thereof in the form
of a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder substantially in the form of
Exhibit B hereto, including the certifications in item (4)
thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

          Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(ii),
the Trustee shall cancel the Definitive Notes and increase or cause to be increased the aggregate
principal amount of the Unrestricted Global Note.

               (iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes. A Holder of an Unrestricted Definitive Note may exchange such
Note for a beneficial interest in an Unrestricted Global Note or

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transfer such
Definitive Notes to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note at any time. Upon receipt of a request for
such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted
Definitive Note and increase or cause to be increased the aggregate principal amount
of one of the Unrestricted Global Notes.

          If any such exchange or transfer from a Definitive Note to a beneficial interest is effected
pursuant to subparagraph (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global Note
has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so
transferred.

               (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section
2.06(e), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized
in writing. In addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this
Section 2.06(e):

               (i) Restricted Definitive Notes to Restricted Definitive Notes. Any
Restricted Definitive Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted Definitive Note if the
Registrar receives the following:

                    (A) if the transfer will be made pursuant to a QIB in accordance with Rule
144A, then the transferor must deliver a certificate substantially in the form of
Exhibit B hereto, including the certifications in item (1) thereof;

                    (B) if the transfer will be made pursuant to Rule 903 or Rule 904 then the
transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; or

                    (C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications
required by item (3) thereof, if applicable.

               (ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any
Restricted Definitive Note may be exchanged by the Holder thereof for an
Unrestricted Definitive Note or transferred to a Person or Persons who take delivery
thereof in the form of an Unrestricted Definitive Note if:

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                    (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that (w) at the time the Exchange Offer begins, such Person
has no arrangement or understanding with any person to participate in the
distribution of the Exchange Notes in violation of the provisions of the Securities
Act, (x) if such Person is not a broker-dealer, such Person is not engaged in, and
does not intend to engage in, a distribution of the Exchange Notes, (y)(1) such
Person is not an affiliate (as defined in Rule 405) of the Company or (2) if such
Person is an affiliate (as defined in Rule 405) of the Company, such Person will
comply with the registration and prospectus delivery requirements of the Securities
Act to the extent applicable, and (z) any Exchange Notes to be received by such
Person will be acquired in the ordinary course of such Persons’ business;

                    (B) any such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

                    (C) any such transfer is effected by a Participating Broker-Dealer pursuant to
the Exchange Offer Registration Statement in accordance with the Registration Rights
Agreement; or

                    (D) the Registrar receives the following:

                    (1) if the Holder of such Restricted Definitive Notes proposes
to exchange such Notes for an Unrestricted Definitive Note, a
certificate from such Holder substantially in the form of
Exhibit C hereto, including the certifications in item
(1)(d) thereof; or

                    (2) if the Holder of such Restricted Definitive Notes proposes
to transfer such Notes to a Person who shall take delivery thereof
in the form of an Unrestricted Definitive Note, a certificate from
such Holder substantially in the form of Exhibit B hereto,
including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests, an
Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such
exchange or transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

               (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes.
A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person who
takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt
of a request to register such a transfer, the

43

 

Registrar shall register the
Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof.

               (f) Exchange Offer. Upon the occurrence of an Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, upon receipt of an Authentication Order
in accordance with Section 2.02 hereof, the Trustee shall authenticate (i) one or more Unrestricted
Global Notes in an aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that certify in the
applicable Letters of Transmittal that (w) at the time the Exchange Offer begins, such Person has
no arrangement or understanding with any person to participate in the distribution of the Exchange
Notes in violation of the provisions of the Securities Act, (x) if such Person is not a
broker-dealer, such Person is not engaged in, and does not intend to engage in, a distribution of
the Exchange Notes, (y)(1) such Person is not an affiliate (as defined in Rule 405) of the Company
or (2) if such Person is an affiliate (as defined in Rule 405) of the Company, such Person will
comply with the registration and prospectus delivery requirements of the Securities Act to the
extent applicable, and (z) any Exchange Notes to be received by such Person will be acquired in the
ordinary course of such Persons’ business, and accepted for exchange in the Exchange Offer, and
(ii) Unrestricted Definitive Notes in an aggregate principal amount equal to the principal amount
of the Restricted Definitive Notes tendered for acceptance by Persons that certify in the
applicable Letters of Transmittal that (w) at the time the Exchange Offer begins, such Person has
no arrangement or understanding with any person to participate in the distribution of the Exchange
Notes in violation of the provisions of the Securities Act, (x) if such Person is not a
broker-dealer, such Person is not engaged in, and does not intend to engage
in, a distribution of the Exchange Notes, (y)(1) such Person is not an affiliate (as defined
in Rule 405) of the Company or (2) if such Person is an affiliate (as defined in Rule 405) of the
Company, such Person will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, and (z) any Exchange Notes to be received by such Person
will be acquired in the ordinary course of such Persons’ business, and accepted for exchange in the
Exchange Offer. Concurrently with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and mail to the Persons designated by
the Holders of Definitive Notes so accepted Unrestricted Definitive Notes in the applicable
principal amount. Any Notes that remain outstanding after the consummation of an Exchange Offer,
and Exchange Notes issued in connection with an Exchange Offer, shall be treated as a single class
of securities under this Indenture.

               (g) Legends. The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable
provisions of this Indenture:

                    (i) Private Placement Legend.

                    (A) Except as permitted by subparagraph (B) below, each Global Note and each
Definitive Note (and all Notes issued in exchange therefor or substitution therefor)
shall bear the legend in substantially the following form:

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“THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR SOLD WITHIN THE UNITED STATES
OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY
ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (2)
AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL
INTEREST HEREIN EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE
UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904
UNDER THE SECURITIES ACT (IF AVAILABLE), (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL IF THE ISSUER SO REQUESTS), OR (F) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT
WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,”
“UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S
UNDER THE SECURITIES ACT.”

                    (B) Notwithstanding the foregoing, any Global Note or Definitive Note issued
pursuant to subparagraph (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii),
(e)(iii) or (f) of this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

               (ii) Global Note Legend. Each Global Note shall bear a legend in
substantially the following form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT
(I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
REQUIRED PURSUANT TO
SECTION 2.06(h) OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE

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EXCHANGED IN WHOLE
BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE
MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK)
(“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.”

               (iii) Regulation S Global Note Legend. The Regulation S Global Note
shall bear a legend in substantially the following form:

“BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S.
PERSON, NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON, AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT. THE FOREGOING SHALL NOT APPLY FOLLOWING THE EXPIRATION OF FORTY
DAYS FROM THE LATER OF (i) THE DATE ON WHICH THESE NOTES WERE FIRST OFFERED AND (ii)
THE DATE OF ISSUANCE OF THESE NOTES.”

               (iv) OID Legend. Each Note issued hereunder that has more than a de
minimis amount of original issue discount for U.S. federal income tax purposes shall
bear a legend in substantially the following form:

“THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET
SEQ. OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. A HOLDER MAY OBTAIN THE
ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR
SUCH NOTE BY SUBMITTING A REQUEST

46

 

FOR SUCH INFORMATION TO BEAZER HOMES USA, INC.,
1000 ABERNATHY ROAD, ATLANTA, GEORGIA 30328, ATTENTION: GENERAL COUNSEL.”

               (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global
Note shall be returned to or retained and canceled by the Trustee in accordance with Section 2.11
hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Note or for Definitive Notes, the principal amount of Notes represented
by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global
Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note, such other Global
Note shall be increased accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

               (i) General Provisions Relating to Transfers and Exchanges.

               (i) To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Global Notes and
Definitive Notes upon receipt of an Authentication Order in accordance with
Section 2.02 hereof or at the Registrar’s request.

               (ii) No service charge shall be made to a holder of a beneficial interest in a
Global Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other
than any such transfer taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.07, 2.10, 3.06, 4.08, 4.13 and 8.05 hereof).

               (iii) Neither the Registrar nor the Company shall be required to register the
transfer of or exchange any Note selected for redemption in whole or in part, except
the unredeemed portion of any Note being redeemed in part.

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

               (v) The Company shall not be required (A) to issue, to register the transfer of
or to exchange any Notes during a period beginning at the

47

 

opening of business 15
days before the day of any selection of Notes for redemption under Section 3.02
hereof and ending at the close of business on the day of selection, (B) to register
the transfer of or to exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part or (C) to
register the transfer of or to exchange a Note between a Record Date and the next
succeeding Interest Payment Date.

               (vi) Prior to due presentment for the registration of a transfer of any Note,
the Trustee, any Agent and the Company may deem and treat the Person in whose name
any Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of (and premium, if any) and interest on such Notes
and for all other purposes, and none of the Trustee, any Agent or the Company shall
be affected by notice to the contrary.

               (vii) Upon surrender for registration of transfer of any Note at the office or
agency of the Company designated pursuant to Section 4.02 hereof, the Company shall
execute, and the Trustee shall authenticate and mail, in the name of the designated
transferee or transferees, one or more replacement Notes of any authorized
denomination or denominations of a like aggregate principal amount.

               (viii) At the option of the Holder, Notes may be exchanged for other Notes of
any authorized denomination or denominations of a
like aggregate principal amount upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Global Notes or Definitive Notes are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and mail, the replacement Global Notes and Definitive Notes which the
Holder making the exchange is entitled to in accordance with the provisions of
Section 2.02 hereof.

               (ix) All certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.06 to effect a registration of
transfer or exchange may be submitted by facsimile.

          Section 2.07 Replacement Notes.

          If any mutilated Note is surrendered to the Trustee, the Registrar or the Company and the Trustee
receives evidence to its satisfaction of the ownership and destruction, loss or theft of any Note,
the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall
authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee
or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment
of the Trustee and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company
may charge for its expenses in replacing a Note.

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          Every replacement Note is a contractual obligation of the Company and shall be entitled to all
of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

          Section 2.08 Outstanding Notes.

          The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a Note does
not cease to be outstanding because the Company or an Affiliate of the Company holds the Note.

          If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

          If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to
be outstanding and interest on it ceases to accrue.

          If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date,
then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease
to accrue interest.

          Section 2.09 Treasury Notes.

          In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company, or by any Affiliate of the Company,
shall be considered as though not outstanding, except that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that
a Responsible Officer of the Trustee knows are so owned shall be so disregarded. Notes so owned
which have been pledged in good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right to deliver any such direction, waiver or consent
with respect to the Notes and that the pledgee is not the Company or any obligor upon the Notes or
any Affiliate of the Company or of such other obligor.

          Section 2.10 Temporary Notes.

          Until certificates representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes. Temporary
Notes shall be substantially in the form of certificated Notes but may have variations that the
Company considers appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate
definitive Notes in exchange for temporary Notes.

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          Holders and beneficial holders, as the case may be, of temporary Notes shall be entitled to
all of the benefits accorded to Holders, or beneficial holders, respectively, of Notes under this
Indenture.

          Section 2.11 Cancellation.

          The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee or, at the direction of the Trustee, the Registrar or
the Paying Agent and no one else shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall destroy cancelled Notes (subject to the
record retention requirement of the Exchange Act). Certification of the destruction of all
cancelled Notes shall be delivered to the Company. The Company may not issue new Notes to replace
Notes that it has paid or that have been delivered to the Trustee for cancellation.

          Section 2.12 Defaulted Cash Interest.

          If the Company defaults in a payment of cash interest on the Notes, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01 hereof. The Company shall notify the Trustee in
writing of the amount of defaulted cash interest proposed to be paid on each Note and the date of
the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such defaulted interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such defaulted interest as provided in this Section 2.12. The Trustee shall fix or
cause to be fixed each such special record date and payment date; provided that no such
special record date shall be less than 10 days prior to the related payment date for such defaulted
interest. The Trustee shall promptly notify the Company of such special record date. At least 15
days before the special record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be mailed,
first-class postage prepaid, to each Holder a notice at his or her address as it appears in the
Note Register that states the special record date, the related payment date and the amount of such
interest to be paid.

          Subject to the foregoing provisions of this Section 2.12 and for greater certainty, each Note
delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of
any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Note.

          Section 2.13 CUSIP and ISIN Numbers.

          The Company in issuing the Notes may use CUSIP and/or ISIN numbers (if then generally in use)
and, if so, the Trustee shall use CUSIP and/or ISIN numbers in notices of redemption as a
convenience to Holders; provided, that any such notice may state that no

50

 

representation is made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not be affected by any
defect in or omission of such numbers. The Company will as promptly as practicable notify the
Trustee of any change in the CUSIP or ISIN numbers.

ARTICLE III

REDEMPTION

          Section 3.01 Notices to Trustee.

          If the Company elects to redeem Notes pursuant to Section 3.07 hereof, it shall furnish to the
Trustee, at least 2 Business Days before notice of redemption is required to be mailed or caused to
be mailed to Holders pursuant to Section 3.03 hereof but not more than 60 days before a Redemption
Date, an Officers’ Certificate setting forth (i) the paragraph or subparagraph of such Note and/or
Section of this Indenture pursuant to which the redemption shall occur, (ii) the redemption date,
(iii) the principal amount of the Notes, as the case may be, to be redeemed and (iv) the redemption
price.

          Section 3.02 Selection of Notes to Be Redeemed or Purchased.

          In the event less than all of the Notes, are to be redeemed or purchased in an offer to
purchase at any time, the Trustee shall select the Notes to be redeemed or purchased (a) if the
Notes are listed on any national securities exchange, in compliance with the requirements of the
principal national securities exchange on which the Notes are listed, (b) on a pro rata basis or
(c) by lot or by any other method the Trustee considers fair and appropriate. In the event of
partial redemption or purchase by lot, the particular Notes to be redeemed or purchased shall be
selected, unless otherwise provided herein, not less than 15 nor more than 60 days prior to the
redemption date by the Trustee from the outstanding Notes not previously called for redemption or
purchase.

          The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes and portions of Notes selected shall be in
amounts of $2,000 or whole multiples of $1,000 in excess thereof; no Notes of $2,000 or less can be
redeemed in part, except that if all of the Notes of a Holder are to be redeemed or purchased, the
entire outstanding amount of Notes held by such Holder, even if not $2,000 or a multiple of $1,000
in excess thereof, shall be redeemed or purchased. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or purchase also apply to
portions of Notes called for redemption or purchase.

          Section 3.03 Notice of Redemption.

          The Company shall mail or cause to be mailed by first-class mail notices of redemption at
least 30 days (unless pursuant to Section 3.02 hereof, then at least 15 days) but not more than 60
days before the redemption date to each Holder of Notes to be redeemed at such

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Holder’s registered
address or otherwise in accordance with the procedures of DTC, except that
redemption notices may be mailed more than 60 days prior to a Redemption Date if the notice is
issued in connection with Article 7 or Article 12 hereof.

          The notice shall identify the Notes to be redeemed and shall state:

               (a) the redemption date;

               (b) the redemption price;

               (c) if any Note is to be redeemed in part only, the portion of the principal amount of that
Note that is to be redeemed and that, after the Redemption Date upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion of the original Note representing
the same indebtedness to the extent not redeemed will be issued in the name of the Holder of the
Notes upon cancellation of the original Note;

               (d) the name and address of the Paying Agent;

               (e) that Notes called for redemption must be surrendered to the Paying Agent to collect the
redemption price;

               (f) that, unless the Company defaults in making such redemption payment, interest on Notes
called for redemption ceases to accrue on and after the redemption date;

               (g) the paragraph or subparagraph of the Notes and/or Section of this Indenture pursuant to
which the Notes called for redemption are being redeemed;

               (h) that no representation is made as to the correctness or accuracy of the CUSIP and/or ISIN
number, if any, listed in such notice or printed on the Notes; and

               (i) if in connection with a redemption pursuant to Section 3.07(b) hereof, any condition to
such redemption.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided that the Company shall have delivered to the Trustee, at
least 2 Business Days before notice of redemption is required to be mailed or caused to be mailed
to Holders pursuant to this Section 3.03 (unless a shorter notice shall be agreed to by the
Trustee), an Officers’ Certificate requesting that the Trustee give such notice and setting forth
the information to be stated in such notice as provided in the preceding paragraph.

          Section 3.04 Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for
redemption become irrevocably due and payable on the Redemption Date at the redemption price
(except in connection with a redemption pursuant to Section 3.07(b) hereof). The notice, if mailed
in a manner herein provided, shall be conclusively presumed to have been given, whether or not the
Holder receives such notice. In any case, failure to give such notice by

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mail or any defect in the
notice to the Holder of any Note designated for redemption in whole or
in part shall not affect the validity of the proceedings for the redemption of any other Note.
Subject to Section 3.05 hereof, on and after the redemption date, interest ceases to accrue on
Notes or portions thereof called for redemption.

          Section 3.05 Deposit of Redemption or Purchase Price.

          Prior to 10:00 a.m. (New York City time) on the redemption or purchase date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or
purchase price of and accrued and unpaid interest on all Notes to be redeemed or purchased on that
date. The Trustee or the Paying Agent shall promptly return to the Company any money deposited
with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption price of, and accrued and unpaid interest on, all Notes to be redeemed or purchased.

          If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest shall cease to accrue on the Notes or the portions of Notes
called for redemption or purchase. If a Note is redeemed or purchased on or after a Record Date
but on or prior to the related Interest Payment Date, then any accrued and unpaid interest to the
redemption or purchase date shall be paid to the Person in whose name such Note was registered at
the close of business on such Record Date. If any Note called for redemption or purchase shall not
be so paid upon surrender for redemption or purchase because of the failure of the Company to
comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the
redemption or purchase date until such principal is paid, and to the extent lawful on any interest
accrued to the redemption or purchase date not paid on such unpaid principal, in each case at the
rate provided in the Notes and in Section 4.01 hereof.

          Section 3.06 Notes Redeemed or Purchased in Part.

          Upon surrender of a Note that is redeemed or purchased in part, the Company shall issue and
the Trustee shall authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed or unpurchased portion of the Note surrendered representing the
same indebtedness to the extent not redeemed or purchased; provided that each new Note will
be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. It is
understood that, notwithstanding anything in this Indenture to the contrary, only an Authentication
Order and not an Opinion of Counsel or Officers’ Certificate is required for the Trustee to
authenticate such new Note.

          Section 3.07 Optional Redemption.

               (a) The Company may redeem all or any portion of the Notes at any time and from time to time
on or after October 15, 2012 and prior to maturity at the following redemption prices (expressed in
percentages of the principal amount thereof) together, in each case, with accrued and unpaid
interest to the date fixed for redemption, if redeemed during the 12-month period beginning on
October 15 of each year indicated below:

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	Year	 	Percentage
	2012 
	 	 	106.000	%
	2013 
	 	 	104.000	%
	2014 
	 	 	102.000	%
	2015 and thereafter 
	 	 	100.000	%

               (b) In addition, on or prior to October 15, 2012, the Company may, at its option, redeem up to
35% of the aggregate principal amount of Notes issued under this Indenture with the net proceeds of
an Equity Offering at 112% of the principal amount thereof plus accrued and unpaid interest, if
any, to the date fixed for redemption; provided, that at least 65% of the aggregate
principal amount of the Notes originally issued under this Indenture remain outstanding after such
redemption. Notice of any such redemption must be given within 60 days after the date of the
closing of the relevant Equity Offering.

               (c) Prior to October 15, 2012, the Company may, at its, option redeem the Notes, in whole or
in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed
plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption date (subject
to the right of Holders on the relevant record date to receive interest due on the relevant
interest payment date). Notice of such redemption must be mailed by first-class mail to each
Holder’s registered address, not less than 30 nor more than 60 days prior to the redemption date.

          Section 3.08 Mandatory Redemption.

          The Company will be required:

               (a) to offer to purchase all of the outstanding Notes as set forth in Section 4.08 hereof; or

               (b) to offer to purchase a portion of the outstanding Notes using Net Proceeds neither used to
repay certain Indebtedness nor used or invested as provided under Section 4.13 hereof.

          Any redemption pursuant to this Section 3.08 shall be made pursuant to the provisions of
Section 3.01 through 3.06 hereof.

ARTICLE IV

COVENANTS

          Section 4.01 Payment of Notes.

          The Company shall pay or cause to be paid the principal of, premium, if any, and interest on
the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and
cash interest shall be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary, holds as of noon Eastern Time on the due date money

54

 

deposited by the Company in immediately available funds and designated for and sufficient to
pay all principal, premium, if any, and interest then due.

          The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the
Notes to the extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest at the same rate to the
extent lawful.

          Section 4.02 Maintenance of Office or Agency.

          The Company shall maintain in the Borough of Manhattan in the City of New York an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company shall give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee.

          The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan in the City of New York for such purposes. The Company shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

          The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03 hereof.

          Section 4.03 Reports and Other Information.

               (a) As long as any of the Notes are outstanding, the Company shall deliver to the Trustee and
mail to each Holder within 15 days after the filing of the same with the SEC copies of the
quarterly and annual reports and of the information, documents and other reports with respect to
the Company and the Subsidiary Guarantors, if any, which the Company and the Subsidiary Guarantors
may be required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.
Notwithstanding that neither the Company nor any of the Subsidiary Guarantors may be required to
remain subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the
Company shall continue to file with the SEC and provide the Trustee and Holders with such annual
and quarterly reports and such information, documents and other reports with respect to the Company
and the Subsidiary Guarantors as are required under Sections 13 and 15(d) of the Exchange Act. If
filing of documents by the Company with the SEC as aforementioned in this paragraph is not
permitted under the Exchange Act, the Company shall promptly upon written notice supply copies of
such documents to any prospective holder.

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The Company and each Subsidiary Guarantor shall also comply with the other provisions of
Section 314(a) of the Trust Indenture Act. For the avoidance of doubt, this Section 4.03 shall
not require the Company to file any such reports, information or documents with the SEC within any
specified time period and the obligation to deliver such reports, information or documents to the
Trustee and Holders shall only arise after (and only to the extent) such reports, information or
documents are filed with the SEC.

               (b) The Company shall furnish to the Trustee and the Notes Collateral Agent, with respect to
the Company or any Subsidiary Guarantor, written notice of any change (within 10 days following
such change) in such Person’s (i) legal name, (ii) jurisdiction of organization or formation, (iii)
identity or corporate structure, or (iv) organizational identification number.

               (c) On or prior to December 31 of each year (beginning with December 31, 2010), the Company
shall deliver to the Trustee and the Collateral Agent a certificate executed by an authorized
officer of the Company setting forth the information on Schedules 1, 2 and 3 of the Collateral
Agreement or confirming that there has been no change in such information since the date of the
prior certificate (or the Issue Date, in the case of the first such certificate).

          Section 4.04 Compliance Certificate.

          The Company shall deliver to the Trustee a quarterly statement regarding compliance with the
provisions under this Indenture, and include in such statement, if any Officer of the Company is
aware of any Default or Event of Default, a statement specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto. In addition, the
Company shall deliver to the Trustee prompt written notice of the occurrence of any Default or
Event of Default and any other development, financial or otherwise, which might materially affect
its business, properties or affairs or the ability of the Company to perform its obligations under
this Indenture.

          Section 4.05 Taxes.

          The Company shall pay or discharge, and shall cause each of its Restricted Subsidiaries to pay
or discharge, prior to delinquency, all taxes, assessments, and governmental charges levied or
imposed upon it or any Restricted Subsidiary or upon the income, profits or property of the
Company or any Restricted Subsidiary; provided however, that the Company or any Restricted
Subsidiary shall not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is being contested in good
faith by appropriate proceedings.

          Section 4.06 Stay, Extension and Usury Laws.

          The Company and each of the Subsidiary Guarantors covenant (to the extent that they may
lawfully do so) that they shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law that would
prohibit or forgive the Company or any Subsidiary Guarantor from paying all or

56

 

any portion of the principal of or interest on the Securities as contemplated herein, wherever
enacted, now or at any time hereafter in force, that may affect the covenants or the performance of
this Indenture; and the Company and each of the Subsidiary Guarantors (to the extent that they may
lawfully do so) hereby expressly waive all benefit or advantage of any such law, and covenant that
they shall not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.

          Section 4.07 Limitations on Restricted Payments.

               (a) The Company shall not, and shall not cause or permit any of its Restricted Subsidiaries
to, make any Restricted Payment, directly or indirectly, after the date of this Indenture if at the
time of such Restricted Payment:

               (i) the amount of such proposed Restricted Payment (the amount of such
Restricted Payment, if other than in cash, shall be determined in good faith by a
majority of the disinterested members of the Board of Directors of the Company),
when added to the aggregate amount of all Restricted Payments (excluding Restricted
Payments permitted by Section 4.07(b)(ii), Section 4.07(b)(iii), Section
4.07(b)(iv), Section 4.07(b)(vi) and Section 4.07(b)(vii)) declared or made after
the Covenant Trigger Date exceeds the sum of:

                    (A) $40.0 million, plus

                    (B) 50% of the Company’s Consolidated Net Income accrued during the period
(taken as a single period) commencing on the first day of the fiscal quarter in
which the Covenant Trigger Date occurs and ending on the last day of the fiscal
quarter immediately preceding the fiscal quarter in which the Restricted Payment is
to occur (or, if such aggregate Consolidated Net Income is a deficit, minus 100% of
such aggregate deficit), plus

                    (C) the net cash proceeds derived from the issuance and sale of Capital Stock
of the Company and its Restricted Subsidiaries (or any capital contribution to the
Company or a Restricted Subsidiary) that is not Disqualified Stock (other than a
sale to, or a contribution by, a Subsidiary of the Company) after the Covenant
Trigger Date, plus

                    (D) 100% of the principal amount of, or, if issued at a discount, the accreted
value of, any Indebtedness of the Company or a Restricted Subsidiary which is issued
(other than to a Subsidiary of the Company) after the Covenant Trigger Date that is
converted into or exchanged for Capital Stock of the Company that is not
Disqualified Stock, plus

                    (E) 100% of the aggregate amounts received by the Company or any Restricted
Subsidiary from the sale, disposition or liquidation (including by way of dividends)
of any Investment (other than to any Subsidiary of the Company and other than to the
extent sold, disposed of or liquidated with

57

 

recourse to the Company or any of its Subsidiaries or to any of their
respective properties or assets) but only to the extent (x) not included in clause
(B) above and (y) that the making of such Investment constituted a permitted
Restricted Investment, plus

                    (F) 100% of the principal amount of, or if issued at a discount, the accreted
value of, any Indebtedness or other obligation that is the subject of a guarantee by
the Company which is released (other than due to a payment on such guarantee) after
the Covenant Trigger Date, but only to the extent that such guarantee constituted a
permitted Restricted Payment, plus

                    (G) with respect to any Unrestricted Subsidiary that is redesignated as a
Restricted Subsidiary in accordance with the definition of “Unrestricted Subsidiary”
(so long as the designation of such Subsidiary as an Unrestricted Subsidiary was
treated as a Restricted Payment made after the Issue Date, and only to the extent
not included in clause (B) above), an amount equal to the lesser of (x) the
proportionate interest of the Company or a Restricted Subsidiary in an amount equal
to the excess of (I) the total assets of such Subsidiary, valued on an aggregate
basis at the lesser of Book Value and Fair Market Value thereof, over (II) the total
liabilities of such Subsidiary, determined in accordance with GAAP, and (y) the
amount of the Restricted Payment deemed to be made upon such Subsidiary’s
designation as an Unrestricted Subsidiary; or

               (ii) the Company would be unable to incur $1.00 of additional Indebtedness
under the Consolidated Fixed Charge Coverage Ratio contained in the Section 4.12
hereof;

               (iii) a Default or Event of Default has occurred and is continuing or occurs as
a consequence thereof; or

               (iv) the Covenant Trigger Date has not occurred.

               (b) Notwithstanding the foregoing, the provisions of this Section 4.07 shall not prevent:

               (i) the payment of any dividend within 60 days after the date of declaration
thereof if the payment thereof would have complied with the limitations of this
Indenture on the date of declaration;

               (ii) the purchase, repayment, redemption, repurchase, defeasance or other
acquisition or retirement of shares of the Company’s Capital Stock or the Company’s
or a Restricted Subsidiary’s Indebtedness for, or out of the net proceeds of a
substantially concurrent sale (other than a sale to a Subsidiary of the Company) of,
other shares of its Capital Stock (other than Disqualified Stock), provided
that the proceeds of any such sale shall be excluded in any computation made under
Section 4.07(a)(i)(C) above;

58

 

               (iii) the purchase, repayment, redemption, repurchase, defeasance or other
acquisition or retirement for value of Indebtedness, including premium, if any, with
the proceeds of Refinancing Indebtedness;

               (iv) payments or distributions pursuant to or in connection with a merger,
consolidation or transfer of assets that complies with Section 4.13 and 4.17 hereof;

               (v) any purchase, redemption, retirement or other acquisition for value of
Capital Stock of the Company or any Subsidiary held by officers or employees or
former officers or employees of the Company or any Subsidiary (or their estates or
beneficiaries under their estates) not to exceed $500,000 in any calendar year and
$5.0 million in the aggregate since the Issue Date;

               (vi) repurchases of Capital Stock deemed to occur upon the exercise of stock
options, warrants or similar instruments if such Capital Stock represents a portion
of the exercise price of such options, warrants or similar instruments;

               (vii) the payment by the Company of cash in lieu of the issuance of fractional
 shares upon the exercise of options, warrants or similar instruments or upon the
conversion or exchange of Capital Stock of the Company;

               (viii) the payment of dividends on Preferred Stock and Disqualified Stock up to
an aggregate amount of $10.0 million in any fiscal year; provided that
immediately after giving effect to any declaration of such dividend, the Company
could incur at least $1.00 of Indebtedness under the Consolidated Fixed Charge
Coverage Ratio contained under Section 4.12 hereof;

               (ix) payments not to exceed $40.0 million in the aggregate for the purchase,
repayment, redemption, repurchase, defeasance or other acquisition or retirement for
value of the Company’s junior subordinated notes due July 30, 2036 (or the related
trust preferred securities issued by Beazer Homes Capital Trust I), as such
securities may be amended or modified from time to time; or

               (x) other Restricted Payments made after the Issue Date in an amount not to
exceed $20.0 million in the aggregate.

          Section 4.08 Change of Control.

               (a) Following the occurrence of any Change of Control, the Company shall so notify the Trustee
in writing by delivery of an Officers’ Certificate and shall offer to purchase (a “Change of
Control Offer”) from all Holders, and shall purchase from Holders accepting such Change of
Control Offer on the date fixed for the closing of such Change of
Control Offer (the “Change of Control Payment Date”), the outstanding principal amount
of

59

 

Notes at an offer price (the “Change of Control Price”) in cash in an amount equal to
101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any, to the
Change of Control Payment Date in accordance with the procedures set forth under this Section 4.08.

               (b) Within 30 days after the date on which a Change of Control occurs, the Company (with
Notice to the Trustee) or the Trustee at the Company’s request (and at the expense of the Company)
shall send or cause to be sent by first-class mail, postage pre-paid, to all Persons who were
Holders on the date of the Change of Control at their respective addresses appearing in the
Security Register, a notice of such occurrence and of such Holder’s rights arising as a result
thereof. Such notice, which will govern the terms of the Change of Control Offer, will state:

               (i) that the Change of Control Offer is being made pursuant to Section 4.08(a)
hereof and the length of time the Change of Control Offer will remain open;

               (ii) that the Holder has the right to require the Company to repurchase such
Holder’s Notes at the Change of Control Price;

               (iii) that any Note not tendered will continue to accrue interest;

               (iv) that any Note accepted for payment pursuant to the Change of Control Offer
will cease to accrue interest on the Change of Control Payment Date;

               (v) that the Change of Control Payment Date will be no earlier than 45 days nor
later than 60 days from the date such notice is mailed;

               (vi) that Holders electing to have a Note purchased pursuant to any Change of
Control Offer will be, required to surrender the Note to the Company, a depositary,
if appointed by the Company, or a Paying Agent at the address specified in the
notice prior to termination of the Change of Control Offer;

               (vii) that Holders will be entitled to withdraw their election if the Company,
depositary or Paying Agent, as the case may be, receives, not later than the
expiration of the Change of Control Offer, or such longer period as may be required
by law, a telegram, telex, facsimile transmission or letter setting forth the name
of the Holder, the principal amount of the Note the Holder delivered for purchase
and a statement that such Holder is withdrawing its election to have the Note
purchased;

               (viii) that Holders which elect to have their Notes purchased only in part will
be issued new Notes in a principal amount equal to the unpurchased portion of the
Notes surrendered;

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               (ix) information concerning the date and details of the Change of Control and
the business of the Company which the Company in good faith believes will enable
such Holders to make an informed decision (which at a minimum will include (A) the
most recently filed Annual Report on Form 10-K (including audited consolidated
financial statements) of the Company, the most recent subsequently filed Quarterly
Report on Form 10-Q and any Current Report on Form 8-K of the Company filed
subsequent to such Quarterly Report, other than Current Reports describing Asset
Sales otherwise described in the offering materials relating to the Change of
Control Offer (or corresponding successor reports); provided that the Company may at
its option incorporate by reference any such filed reports in the notice, (B) a
description of material developments in the Company’s business subsequent to the
date of the latest of such reports, and (C) if material, appropriate pro forma
financial information).

               (c) In the event of a Change of Control Offer, the Company shall only be required to accept
Notes in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

               (d) Not later than one Business Day after the Change of Control Payment Date in connection
with which the Change of Control Offer is being made, the Company shall (i) accept for payment
Notes or portions thereof tendered pursuant to the Change of Control Offer, (ii) deposit with the
Paying Agent money sufficient, in immediately available funds, to pay the purchase price of all
Notes or portions thereof so accepted and (iii) deliver to the Paying Agent an Officers’
Certificate identifying the Notes or portions thereof accepted for payment by the Company. The
Paying Agent shall promptly mail or deliver to Holders of Notes so accepted payment in an amount
equal to the Change of Control Price of the Notes purchased from each such Holder, and the Company
shall execute and, upon receipt of an Officers’ Certificate of the Company, the Trustee shall
promptly authenticate and mail or deliver to such Holder a new Note equal in principal amount to
any unpurchased portion of the Note surrendered. Any Notes not so accepted shall be promptly
mailed or delivered by the Paying Agent at the Company’s expense to the Holder thereof. The
Company shall publicly announce the results of the Change of Control Offer promptly after the
Change of Control Payment Date.

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

          Section 4.09 Limitations on Restrictions on Distributions from Restricted
Subsidiaries.

               (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to, create,
assume or otherwise cause or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to:

               (i) pay dividends or make any other distributions on its Capital Stock or any
other interest or participation in, or measured by, its profits, owned by the
Company or any of its other Restricted Subsidiaries, or pay interest

61

 

on or principal of any Indebtedness owed to the Company or any of its other
Restricted Subsidiaries;

               (ii) make loans or advances to the Company or any of its other Restricted
Subsidiaries; or

               (iii) transfer any of its properties or assets to the Company or any of its
other Restricted Subsidiaries,

except for encumbrances or restrictions existing under or by reason of:

                    (A) applicable law;

                    (B) covenants or restrictions contained in the agreements evidencing Existing
Indebtedness as in effect on the date of this Indenture;

                    (C) any restrictions or encumbrances arising under Acquired Indebtedness;
provided that such encumbrance or restriction applies only to the obligor on
such Indebtedness and its Subsidiaries and that such Acquired Indebtedness was not
incurred by the Company or any of its Subsidiaries or by the Person being acquired
in connection with or in anticipation of such acquisition;

                    (D) any restrictions or encumbrances arising in connection with Refinancing
Indebtedness; provided that any restrictions and encumbrances of the type
described in this clause (D) that arise under such Refinancing Indebtedness are not
materially more restrictive than those under the agreement creating or evidencing
the Indebtedness being refunded, refinanced, replaced or extended;

                    (E) any Permitted Lien, or any other agreement restricting the sale or other
disposition of property, securing Indebtedness permitted by this Indenture if such
agreement does not expressly restrict the ability of a Subsidiary of the Company to
pay dividends or make loans or advances prior to default thereunder;

                    (F) reasonable and customary borrowing base covenants set forth in agreements
evidencing Indebtedness otherwise permitted by this Indenture;

                    (G) customary non-assignment provisions in leases, licenses, encumbrances,
contracts or similar assets entered into or acquired in the ordinary course of
business;

                    (H) any restriction with respect to a Restricted Subsidiary imposed pursuant to
an agreement entered into for the sale or

62

 

disposition of all or substantially all of the Capital Stock or assets of such
Restricted Subsidiary pending the closing of such sale or disposition;

                    (I) encumbrances or restrictions existing under or by reason of this Indenture,
the Notes, the Subsidiary Guarantees or the Security Documents;

                    (J) purchase money obligations that impose restrictions on the property so
acquired of the nature described in clause (iii) of this Section 4.09;

                    (K) Liens permitted under this Indenture securing Indebtedness that limit the
right of the debtor to dispose of the assets subject to such Lien;

                    (L) provisions with respect to the disposition or distribution of assets or
property in joint venture agreements, assets sale agreements, stock sale agreements
and other similar agreements;

                    (M) customary provisions of any franchise, distribution or similar agreements;

                    (N) restrictions on cash or other deposits or net worth imposed by contracts
entered into in the ordinary course of business; and

                    (O) any encumbrance or restrictions of the type referred to in clauses (i),
(ii) or (iii) of this Section 4.09 imposed by any amendments, modifications,
restatements, renewals, supplements, refinancings, replacements or refinancings of
the contracts, instruments or obligations referred to in clauses (A) through (N) of
this paragraph, provided, that such amendments, modifications, restatements,
renewals, supplements, refundings, replacements or refinancings are, in the good
faith judgment of the Company’s Board of Directors, no more restrictive with respect
to such dividend and other payment restrictions than those contained in the dividend
or other payment restrictions prior to such amendment, modification, restatement,
renewal, supplement, refunding, replacement or refinancing.

          Section 4.10 Subsidiary Guarantees by Restricted Subsidiaries.

          Each existing and future Restricted Subsidiary (other than, in the Company’s
discretion, any Restricted Subsidiary the assets of which have a Book Value of not
more than $5.0 million) shall be a Subsidiary Guarantor. The Company is permitted
to cause any Unrestricted Subsidiary to be a Subsidiary Guarantor. If the Company
or any of its Restricted Subsidiaries acquires or creates a Restricted Subsidiary
(other than, in the Company’s discretion, any Restricted Subsidiary the assets of
which have a Book Value of not more than $5.0 million) after the Issue Date, such
Restricted Subsidiary shall
execute a guarantee substantially in the form included in Exhibit A,
execute a supplemental indenture in the form of Exhibit D, and

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deliver an
Opinion of Counsel to the Trustee to the effect that the supplemental indenture has
been duly authorized, executed and delivered by the new Restricted Subsidiary and
constitutes a valid and binding obligation of the new Restricted Subsidiary,
enforceable against the new Restricted Subsidiary in accordance with its terms
(subject to customary exceptions).

          Section 4.11 Limitations and Restrictions on Issuance of Capital Stock of Restricted
Subsidiaries. The Company will not permit any Restricted Subsidiary to issue, or permit to be
outstanding at any time, Preferred Stock or any other Capital Stock constituting Disqualified Stock
other than any such Capital Stock issued to or held by the Company or any Restricted Subsidiary of
the Company which is a Wholly Owned Subsidiary.

          Section 4.12 Limitations on Additional Indebtedness.

               (a) The Company shall not, and shall not cause or permit any of its Restricted Subsidiaries,
directly or indirectly, to, Incur any Indebtedness including Acquired Indebtedness;
provided that the Company and the Subsidiary Guarantors may Incur Indebtedness, including
Acquired Indebtedness, if, after giving effect thereto and the application of the proceeds
therefrom, either (i) the Company’s Consolidated Fixed Charge Coverage Ratio on the date thereof
would be at least 2.0 to 1.0 or (ii) the ratio of Indebtedness of the Company and the Restricted
Subsidiaries to Consolidated Tangible Net Worth is less than 2.25 to 1.

               (b) Notwithstanding the foregoing, the provisions of Section 4.12(a) shall not prevent:

               (i) the Company or any Restricted Subsidiary from Incurring (A) Refinancing
Indebtedness or (B) Non-Recourse Indebtedness;

               (ii) the Company from Incurring Indebtedness evidenced by the Notes issued on
the Issue Date or any Exchange Notes issued in exchange therefor;

               (iii) the Company or any Subsidiary Guarantor from Incurring Indebtedness under
Credit Facilities not to exceed the greater of $150.0 million and 7.5% of
Consolidated Tangible Assets;

               (iv) any Subsidiary Guarantee of Indebtedness of the Company under the Notes;

               (v) the Company and its Restricted Subsidiaries from Incurring Indebtedness
under any deposits made to secure performance of tenders, bids, leases, statutory
obligations, surety and appeal bonds, progress statements, government contracts and
other obligations of like nature (exclusive of the obligation for the payment of
borrowed money);

               (vi) any Subsidiary Guarantor from guaranteeing Indebtedness of the Company or
any other Subsidiary Guarantor, or the Company from guaranteeing Indebtedness of any
Subsidiary Guarantor, in each case

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permitted to be Incurred under this Indenture
(other than Non-Recourse Indebtedness);

               (vii) (a) any Restricted Subsidiary from Incurring Indebtedness owing to the
Company or any Subsidiary Guarantor that is both a Wholly Owned Subsidiary and a
Restricted Subsidiary; provided that (I) such Indebtedness is subordinated
to any Subsidiary Guarantee of such Restricted Subsidiary, if any, and (II) such
Indebtedness shall only be permitted pursuant to this clause (vii)(a) for so long as
the Person to whom such Indebtedness is owing is the Company or a Subsidiary
Guarantor that is both a Wholly Owned Subsidiary and a Restricted Subsidiary, and
(b) the Company from Incurring Indebtedness owing to any Subsidiary Guarantor that
is both a Wholly Owned Subsidiary and a Restricted Subsidiary; provided that
(I) such Indebtedness is subordinated to the Company’s obligations under the Notes
and this Indenture, and (II) such Indebtedness shall only be permitted pursuant to
this clause (vii)(b) for so long as the Person to whom such Indebtedness is owing is
a Subsidiary Guarantor that is both a Wholly Owned Subsidiary and a Restricted
Subsidiary;

               (viii) the Company and any Restricted Subsidiary from Incurring Indebtedness
under Capitalized Lease Obligations or purchase money obligations, in each case
Incurred for the purpose of acquiring or financing all or any part of the purchase
price or cost of construction or improvement of property or equipment used in the
business of the Company or such Restricted Subsidiary, as the case may be, in an
aggregate amount not to exceed $20.0 million;

               (ix) the Company or any Restricted Subsidiary from Incurring obligations for,
pledge of assets in respect of, and guaranties of, bond financings of political
subdivisions or enterprises thereof in the ordinary course of business;

               (x) the Company or any Restricted Subsidiary from incurring Indebtedness owed
to a seller of entitled land, lots under development or finished lots under the
terms of which the Company or such Restricted Subsidiary, as obligor, is required to
make a payment upon the future sale of such land or lots; and

               (xi) the Company or any Restricted Subsidiary from Incurring Indebtedness in an
aggregate principal amount at any time outstanding not to exceed $20.0 million.

               (c) The Company shall not, and shall not cause or permit any Subsidiary Guarantor that is a
Restricted Subsidiary to, directly or indirectly, in any event Incur any Indebtedness that purports
to be by its terms (or by the terms of any agreement governing
such Indebtedness) subordinated to any other Indebtedness of the Company or of such Subsidiary
Guarantor, as the case may be, unless such Indebtedness is also by its terms (or by the terms of
any agreement governing such Indebtedness) made expressly subordinated to the Notes or the
Subsidiary Guarantee of such Subsidiary Guarantor, as the case may be, to the same extent

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and in
the same manner as such Indebtedness is subordinated to such other Indebtedness of the Company or
such Subsidiary Guarantor, as the case may be.

               (d) For purposes of determining compliance with this Section 4.12 hereof, in the event an item
of Indebtedness meets the criteria of more than one of the types of Indebtedness described in the
above clauses of this Section 4.12, the Company, in its sole discretion, shall classify such item
of Indebtedness in any manner that complies with this Section 4.12 and may from time to time
reclassify such item of Indebtedness in any manner in which such item could be Incurred at the time
of such reclassification.

          Section 4.13 Limitations on Asset Sales.

               (a) The Company shall not, and shall not cause or permit any Restricted Subsidiary to, make
any Asset Sale unless:

               (i) the Company (or such Restricted Subsidiary, as the case may be) receives
consideration at the time of such Asset Sale at least equal to the Fair Market Value
thereof; and

               (ii) not less than 70% of the consideration received by the Company (or such
Restricted Subsidiary, as the case may be) is in the form of cash, Cash Equivalents
and Marketable Securities (excluding Marketable Securities of the Company).

               (b) The amount of (i) any Indebtedness (other than any Subordinated Indebtedness) of the
Company or any Restricted Subsidiary that is actually assumed by the transferee in such Asset Sale
and (ii) the Fair Market Value of any property or assets (including Capital Stock of any Person
that shall be a Restricted Subsidiary following receipt thereof) received that are used or useful
in a Real Estate Business (provided that (except as permitted by clause (ii) under the
definition of “Permitted Investment”) to the extent that the assets disposed of in such Asset Sale
were Collateral, such property or assets are pledged as Collateral under the Security Documents
substantially simultaneously with such sale, with the Lien on such Collateral securing the Notes
being of the same priority with respect to the Notes as the Lien on the assets disposed of), shall
be deemed to be consideration required by clause (ii) of Section 4.13(a) above for purposes of
determining the percentage of such consideration received by the Company or the Restricted
Subsidiaries. Any Marketable Securities received as consideration in connection with an Asset Sale
shall be converted into cash or Cash Equivalents within 180 days of receipt of such Marketable
Securities.

               (c) The Net Proceeds of an Asset Sale shall, within one year, at the Company’s election:

               (i) be used by the Company or a Restricted Subsidiary to invest in assets
(including Capital Stock of any Person that is or shall be a Restricted Subsidiary
following investment therein) used or useful in the business of the Company and the
Restricted Subsidiaries; provided that (except as permitted by clause (ii)
under the definition of “Permitted Investment”) to the

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extent that the
assets
disposed of in such Asset Sale were Collateral, such assets are pledged as
Collateral under the Security Documents with the Lien on such Collateral securing
the Notes being of the same priority with respect to the Notes as the Lien on the
assets disposed of;

               (ii) be used to permanently prepay or permanently repay any (1) Indebtedness
(or cash collateralize letters of credit) constituting First Priority Obligations
(and, in the case of revolving obligations, to permanently reduce commitments with
respect thereto) to the extent the assets sold were First Priority Collateral or (2)
Indebtedness which had been secured by the assets sold in the relevant Asset Sale or
other Indebtedness that is not subordinated in right of payment to the Notes or
Subsidiary Guarantees, to the extent the assets sold were not Collateral (and, in
the case of revolving obligations, to permanently reduce commitments with respect
thereto); or

               (iii) be applied to make an offer to purchase (in accordance with the terms set
forth in this Section 4.13) Notes and, if the Company or a Restricted Subsidiary
elects or is required to do so, offer to purchase, repay or redeem Other Pari Passu
Lien Obligations (to the extent the assets sold were Collateral) on a pro rata basis
if the amount available for such purchase, repayment or redemption is less than the
aggregate amount of (i) the principal amount of the Notes tendered in such offer to
purchase and (ii) the lesser of the principal amount, or accreted value, of such
other Other Pari Passu Lien Obligations or other Indebtedness, as applicable, plus,
in each case accrued interest to the date of repayment, purchase or redemption at
100% of the principal amount or accreted value thereof, as the case may be, plus
accrued and unpaid interest, if any, to the date of repurchase or repayment.

     The amount of such Net Proceeds neither used to repay the Indebtedness described above nor
used or invested as set forth in the preceding paragraph constitutes “Excess Proceeds.”
Notwithstanding the above, any Asset Sale that is subject to Section 4.17 hereof shall not be
subject to this Section 4.13.

               (d) Notwithstanding this Section 4.13, to the extent the Company or any of its Restricted
Subsidiaries receives securities or other non-cash property or assets as proceeds of an Asset Sale,
the Company shall not be required to make any application of such non-cash proceeds required by
this Section 4.13 until it receives cash or cash equivalent proceeds from a sale, repayment,
exchange, redemption or retirement of or extraordinary dividend or return of capital on such
non-cash property. Any amounts deferred pursuant to the preceding sentence shall be applied in
accordance with this Section 4.13 (within the time periods set forth in this Section 4.13 as if the
date of such receipt was the date of an Asset Sale) when cash or cash
equivalent proceeds are thereafter received from a sale, repayment, exchange, redemption or
retirement of or extraordinary dividend or return of capital on such non-cash property.

               (e) If the aggregate amount of Excess Proceeds equals $25,000,000 or more, the Company shall so
notify the Trustee in writing by delivery of an Officers’ Certificate and shall offer to purchase
from all Holders (and, if the Company or a Restricted Subsidiary is

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required to do so, offer to purchase, repay or redeem Other Pari Passu Lien Obligations (to
the extent the assets sold were Collateral) (an “Excess Proceeds Offer”), and shall
purchase from Holders and holders of any such Other Pari Passu Lien Obligations on a pro rata
basis, accepting such Excess Proceeds Offer on the date fixed for the closing of such Excess
Proceeds Offer (the “Asset Sale Offer Date”), the maximum principal amount (in $2,000
minimum denominations or in integral multiples of $1,000 in excess thereof) of Notes (and such
Other Pari Passu Lien Obligations) plus accrued and unpaid interest thereon, if any, to the Asset
Sale Offer Date that may be purchased and paid, as the case may be, out of the Excess Proceeds, at
an offer price (the “Asset Sale Offer Price”) in cash in an amount equal to 100% of the
principal amount thereof (or, if less, the accreted value) plus accrued and unpaid interest, if
any, to the Asset Sale Offer Date, in accordance with the procedures set forth in this Section
4.13. To the extent that the aggregate amount of Notes (and such Other Pari Passu Lien
Obligations) tendered pursuant to an Excess Proceeds Offer is less than the Excess Proceeds
relating thereto, then the Company may use such Excess Proceeds, or a portion thereof, for general
corporate purposes in the business of the Company and its Restricted Subsidiaries existing on the
date hereof. Upon completion of an Excess Proceeds Offer, the amount of Excess Proceeds shall be
reset at zero.

               (f) Within 30 days after the date on which the amount of Excess Proceeds equals $25,000,000 or
more, the Company (with notice to the Trustee) or the Trustee at the Company’s request (and at the
expense of the Company) will send or cause to be sent by first-class mail to all Persons who were
Holders on the date such Excess Proceeds equaled $25,000,000, at their respective addresses
appearing in the Security Register, a notice of such occurrence and of such Holders’ rights arising
as a result thereof. Such notice will contain all instructions and materials necessary to enable
Holders to tender their Notes to the Company. Such notice, which will govern the terms of the
Excess Proceeds Offer, will state:

               (i) that the Excess Proceeds Offer is being made pursuant to this Section 4.13
and the length of time such Excess Proceeds Offer will remain open;

               (ii) that the Holder has the right to require the Company to repurchase such
Holder’s Notes at the Asset Sale Offer Price;

               (iii) that any Note not tendered will continue to accrue interest;

               (iv) that any Note accepted for payment pursuant to the Excess Proceeds Offer
will cease to accrue interest on the Asset Sale Offer Date;

               (v) that the Asset Sale Offer Date will be no earlier than 45 days nor later
than 60 days from the date such notice is mailed;

               (vi) that Holders electing to have a Note purchased pursuant to any Excess Proceeds Offer will be
required to surrender the Note to the Company, a depositary, if appointed by the Company, or a
Paying Agent at the address specified in the notice prior to termination of the Excess Proceeds
Offer;

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               (vii) that Holders will be entitled to withdraw their election if the
Company, depositary or Paying Agent, as the case may be, receives, not later than
the expiration of the Excess Proceeds Offer, or such longer period as may be
required by law, a telegram, telex, facsimile transmission or letter setting forth
the name of the Holder, the principal amount of the Note the Holder delivered for
purchase and a statement that such Holder is withdrawing its election to have the
Note purchased; and

               (viii) that Holders whose Notes are purchased only in part will be issued
Notes equal in principal amount to the unpurchased portion of the Notes
surrendered.

               (g) In the event the aggregate principal amount of Notes surrendered by Holders together with
accrued interest thereon exceeds the amount of Excess Proceeds, the Company will select the Notes
to be purchased on a pro rata basis from all Notes so surrendered, with such adjustments as may be
deemed appropriate by the Company so that only Notes in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof, will be purchased. To the extent that the Excess
Proceeds remaining are less than $1,000, the Company may use such Excess Proceeds for general
corporate purposes. Holders whose Notes are purchased only in part will be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered. Pending any such
application under this Section 4.13, Net Proceeds may be used to temporarily reduce Indebtedness or
otherwise be invested in any manner not prohibited by this Indenture.

               (h) Not later than one Business Day after the Asset Sale Offer Date in connection with which
the Excess Proceeds Offer is being made, the Company will (i) accept for payment Notes or portions
thereof tendered pursuant to the Excess Proceeds Offer (on a pro rata basis if required), (ii)
deposit with the Paying Agent money sufficient, in immediately available funds, to pay the purchase
price of all Notes or portions thereof so accepted and (iii) deliver to the Paying Agent an
Officers’ Certificate identifying the Notes or portions thereof accepted for payment by the
Company. The Paying Agent will promptly mail or deliver to Holders so accepted payment in an
amount equal to the Asset Sale Offer Price of the Notes purchased from each such Holder, and the
Company will execute and upon receipt of an Officers’ Certificate of the Company the Trustee will
promptly authenticate and mail or deliver to such Holder a new Note equal in principal amount to
any unpurchased portion of the Note surrendered. Any Notes not so accepted will be promptly mailed
or delivered by the Paying Agent at the Company’s expense to the Holder thereof. The Company will
publicly announce the results of the Excess Proceeds Offer promptly after the Asset Sale Offer
Date. For purposes of this Section 4.13(h), the Company will choose a Paying Agent which will not
be the Company or a Subsidiary thereof.

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

          Section 4.14 Limitations on Transactions with Affiliates.

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               (a) The Company shall not, and shall not permit any of its Subsidiaries to, make any
Investment, loan, advance, guarantee or capital contribution to or for the benefit of, or sell,
lease, transfer or otherwise dispose of any of its properties or assets to, or for the benefit of,
or purchase or lease any property or assets from, or enter into or amend any contract, agreement or
understanding with, or for the benefit of, (i) any Affiliate of the Company or any Affiliate of the
Company’s Subsidiaries or (ii) any Person (or any Affiliate of such Person) holding 10% or more of
the Common Equity of the Company or any of its Subsidiaries (each an “Affiliate
Transaction”), except on terms that are no less favorable to the Company or the relevant
Subsidiary, as the case may be, than those that could have been obtained in a comparable
transaction on an arm’s length basis from a Person that is not an Affiliate.

               (b) The Company shall not, and shall not permit any of its Subsidiaries to, enter into any
Affiliate Transaction involving or having a value of more than $5.0 million, unless, in each case,
such Affiliate Transaction has been approved by a majority of the disinterested members of the
Company’s Board of Directors.

               (c) The Company shall not, and shall not permit any of its Subsidiaries to, enter into an
Affiliate Transaction involving or having a value of more than $20.0 million unless the Company has
delivered to the Trustee an opinion of an Independent Financial Advisor to the effect that the
transaction is fair to the Company or the relevant Subsidiary, as the case may be, from a financial
point of view.

               (d) Notwithstanding Section 4.14(a), (b) and (c), an Affiliate Transaction shall not include:

               (i) any contract, agreement or understanding with, or for the benefit of, or
plan for the benefit of, employees of the Company or its Subsidiaries (in their
capacity as such) that has been approved by the Company’s Board of Directors;

               (ii) Capital Stock issuances to members of the Board of Directors, officers
and employees of the Company or its Subsidiaries pursuant to plans approved by the
stockholders of the Company;

               (iii) any Restricted Payment otherwise permitted under Section 4.07 hereof;
or

               (iv) any transaction between the Company and a Restricted Subsidiary or a
Restricted Subsidiary and another Restricted Subsidiary.

          Section 4.15 Limitations on Liens.

          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, create,
incur, assume or suffer to exist any Liens, other than Permitted Liens, on any of its or their
assets, property, income or profits therefrom, except, in the case of any asset or property not
part of the Collateral, any Lien if the Notes are equally and ratably secured with (or on a senior
basis to, if such Lien secures subordinated Indebtedness) the obligations secured by such Lien.

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          Any Lien created for the benefit of the Holders of the Notes pursuant to the preceding
paragraph shall provide by its terms that such Lien shall be automatically and unconditionally
released and discharged upon the release and discharge of the Lien securing such other obligations,
which release and discharge in the case of any sale of any such asset or property shall not affect
any Lien that the Notes Collateral Agent may have on the proceeds of such sale.

          Section 4.16 Maintenance of Corporate Existence; Maintenance of Properties.

               (a) Subject to Section 4.17 hereof, the Company shall do or cause to be done all things
necessary to preserve and keep in full force and effect (i) its corporate existence, and the
corporate, partnership or other existence of each of its Restricted Subsidiaries, in accordance
with the respective organizational documents (as the same may be amended from time to time) of the
Company or any such Restricted Subsidiary and (ii) the rights (charter and statutory), licenses and
franchises of the Company and its Restricted Subsidiaries; provided that the Company shall
not be required to preserve any such right, license or franchise, or the corporate, partnership or
other existence of any of its Restricted Subsidiaries, if the Company in good faith shall determine
that the preservation thereof is no longer desirable in the conduct of the business of the Company
and its Restricted Subsidiaries, taken as a whole.

               (b) The Company will cause all of its material properties used or useful in the conduct of its
business or the business of any Subsidiary to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and will cause to be made all necessary
repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that the Company and
its Subsidiaries shall not be prevented from selling or otherwise disposing of their properties for
value in the ordinary course of business

          Section 4.17 Limitations on Mergers and Consolidations.

               (a) Neither the Company nor any Subsidiary Guarantor shall consolidate or merge with or into,
or sell, lease, convey or otherwise dispose of all or substantially all of its assets (including,
without limitation, by way of liquidation or dissolution), or assign any of its obligations under
the Notes, the Guarantees or this Indenture (as an entirety or substantially in one transaction or
series of related transactions), to any Person (in each case other than with the Company or another
Wholly Owned Restricted Subsidiary) unless:

               (i) the Person formed by or surviving such consolidation or merger (if other
than the Company or such Subsidiary Guarantor, as the case may be), or to which
such sale, lease, conveyance or other disposition or assignment shall be made
(collectively, the “Successor”), is a solvent corporation or other legal
entity organized and existing under the laws of the United States or any state
thereof or the District of Columbia, and the Successor assumes by supplemental
indenture in a form reasonably satisfactory to the Trustee all of the obligations
of the Company or such Subsidiary Guarantor, as the case may be, under the Notes
or such Subsidiary Guarantor’s Subsidiary Guarantee, as the case

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may be, and this
Indenture, the Intercreditor Agreement and the Security Documents;

               (ii) immediately after giving effect to such transaction, no Default or Event
of Default has occurred and is continuing; and

               (iii) immediately after giving effect to such transaction and the use of any
net proceeds therefrom, on a pro forma basis, the Consolidated Fixed Charge
Coverage Ratio of the Company or the Successor (in the case of a transaction
involving the Company), as the case may be, would be either (x) such that the
Company or the Successor (in the case of a transaction involving the Company), as
the case may be, would be entitled to Incur at least $1.00 of additional
Indebtedness under such Consolidated Fixed Charge Coverage Ratio test in Section
4.12 hereof or (y) greater than the Consolidated Fixed Charge Coverage Ratio of
the Company immediately prior to such transaction.

          The foregoing provisions shall not apply to a transaction involving the consolidation or
merger of a Subsidiary Guarantor with or into another Person, or the sale, lease, conveyance or
other disposition of all or substantially all of the assets of such Subsidiary Guarantor, that
results in such Subsidiary Guarantor being released from its Subsidiary Guarantee as provided in
Section 11.04 hereof.

          Section 4.18 After-Acquired Property.

          If property (other than Excluded Property) is acquired by the Company or a Subsidiary
Guarantor that is not automatically subject to a perfected security interest under the Security
Documents or a Restricted Subsidiary becomes a Subsidiary Guarantor, or property that was Excluded
Property ceases to be Excluded Property, then the Company or such Subsidiary Guarantor will, as
soon as practical (but in any event within 60 days) after such property’s acquisition or it no
longer being Excluded Property, provide a mortgage (which has been delivered for recording), if
applicable, and related Security Documents over such property (or, in the case of a new Subsidiary
Guarantor, all of its assets except Excluded Property) in favor of the Notes Collateral Agent and
deliver certain certificates and opinions in respect thereof as required by this Indenture or the
Security Documents; provided that the failure to deliver mortgages (and related documents)
with respect to any real property within any such 60-day period shall not constitute a default
under this Indenture until such time as the aggregate Book Value of real properties for which
mortgages (and related documents) have not been delivered within such 60-day periods (and remain
undelivered at the time of determination) exceeds $25.0 million.

          Section 4.19 Further Assurances.

               (a) The Company and the Subsidiary Guarantors shall execute any and all further documents,
financing statements, agreements and instruments, and take all further action that may be required
under applicable law, or that the Notes Collateral Agent may reasonably request, in order to grant,
preserve, protect and perfect the validity and priority of the security interests and Liens created
or intended to be created by the Security Documents in the Collateral unless such actions are not
required by the Security Documents. Such security

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interests and Liens will be created under the
Security Documents and other security agreements, mortgages, deeds of trust and other instruments
and documents in form and substance reasonably satisfactory to the Trustee, and the Company shall
deliver or cause to be delivered to Trustee all such instruments and documents (including
certificates, legal opinions and lien searches) as the Trustee shall reasonably request to evidence
compliance with this covenant; provided that with respect to any real property Collateral
that secures First Priority Obligations, (x) the Company and the Subsidiary Guarantors shall not be
required to deliver or cause to be delivered any such instruments and documents to the extent not
required to be delivered to the applicable First Priority Collateral Agent for the benefit of the
First Priority Secured Parties, (y) to the extent any title insurance policies are delivered to the
applicable First Priority Collateral Agent with respect to any real property Collateral, the
Company and the Subsidiary Guarantors may deliver title insurance policies to the Notes Collateral
Agent in respect of such real property Collateral in an aggregate amount of coverage limited to the
aggregate principal amount of the Notes, which amount of coverage may be allocated proportionately
among the properties comprising such real property Collateral according to the respective
individual values of such real properties (or the Company and the Subsidiary Guarantors may deliver
other title insurance
coverage pursuant to other arrangements that would be commercially reasonable under the
circumstances taking into account the costs associated therewith and the benefits afforded thereby,
including pursuant to all pro tanto endorsements and similar arrangements), and (z) to the extent a
survey is delivered to the applicable First Priority Collateral Agent with respect to any real
property Collateral, the Company and the Subsidiary Guarantors may deliver a copy of such survey to
the Notes Collateral Agent and will otherwise use commercially reasonable efforts to ensure that
the title insurance policy issued to the Notes Collateral Agent with respect to such real property
contains substantially the same survey coverage as that provided to such First Priority Collateral
Agent under its title insurance policy relating to such real property; and provided,
further, that with respect to any real property Collateral that does not secure any First
Priority Obligations, the Company and the Subsidiary Guarantors shall be required to deliver or
cause to be delivered to the Notes Collateral Agent a mortgage, deed of trust or similar instrument
with respect to such property but shall not be required to deliver or cause to be delivered any
title insurance policies, surveys, appraisals or environmental reports relating thereto.

               (b) Notwithstanding anything to the contrary set forth in Section 4.19 (a) above or elsewhere
in this Indenture or any Security Document, at the sole cost of the Company (including recording
and title company charges and fees):

               (i) mortgages (and any related Security Documents) required to be granted
pursuant to Section 4.19(a) on the Issue Date (x) with respect to real property
that is securing First Priority Obligations under the Revolving Credit Facility on
the Issue Date, shall be granted and properly submitted to the appropriate filing
office for recordation (with a copy delivered to the Notes Collateral Agent) as
soon as commercially reasonable following the Issue Date, but in no event (with
respect to real property constituting at least 80% of all such real property,
based on the Book Value thereof) later than 60 days following the Issue Date and
(y) with respect to any real property that is not securing First Priority
Obligations under the Revolving Credit Facility on the Issue Date, shall be
granted and properly submitted to the appropriate filing office

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for recordation
(with a copy delivered to the Notes Collateral Agent) as soon as commercially
reasonable following the Issue Date, but in no event (with respect to real
property constituting at least 80% of all such real property, based on the Book
Value thereof) later than 90 days following the Issue Date, in each such case, as
such date may be extended by up to 60 days by the First Priority Collateral Agent
with respect to the Revolving Credit Facility in its sole reasonable discretion;
and

               (ii) the Company and the Subsidiary Guarantors shall not be required to
execute or deliver any control agreements with respect to any deposit account or
securities account (other than, prior to termination of the Escrow Agreement,
deposit accounts and securities accounts included in the Escrow Account pursuant
to the terms of the Escrow Agreement).

ARTICLE V

DEFAULTS AND REMEDIES

          Section 5.01 Events of Default.

               (a) An “Event of Default” wherever used herein, means any one of the following events:

               (i) the failure by the Company to pay interest on any Note when the same
becomes due and payable and the continuance of any such failure for a period of 30
days;

               (ii) the failure by the Company to pay the principal or premium of any Note
when the same becomes due and payable at maturity, upon acceleration or otherwise
(including the failure to make payment pursuant to a Change of Control Offer or an
Excess Proceeds Offer);

               (iii) the failure by the Company or any of its Subsidiaries to comply with
any of its agreements or covenants in, or provisions of, the Notes, the Subsidiary
Guarantees, this Indenture or any of the Security Documents and such failure
continues for the period and after the notice specified below;

               (iv) the acceleration of any Indebtedness (other than Non-Recourse
Indebtedness) of the Company or any of its Subsidiaries that has an outstanding
principal amount of $25.0 million or more in the aggregate;

               (v) the failure by the Company or any of its Subsidiaries to make any
principal or interest payment in respect of Indebtedness (other than Non-Recourse
Indebtedness) of the Company or any of its Subsidiaries with an outstanding
aggregate amount of $25.0 million or more within five days of such principal or
interest payment becoming due and payable (after giving effect to any applicable
grace period set forth in the documents governing such Indebtedness);

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provided, that if such failure to pay shall be remedied, waived or
extended, then the Event of Default hereunder shall be deemed likewise to be
remedied, waived or extended without further action by the Company;

               (vi) a final judgment or judgments that exceed $25.0 million or more in the
aggregate, for the payment of money, having been entered by a court or courts of
competent jurisdiction against the Company or any of its Subsidiaries and such
judgment or judgments is not satisfied, stayed, annulled or rescinded within 60
days of being entered;

               (vii) the Company or any Material Subsidiary pursuant to or within the
meaning of any Bankruptcy Law:

               (A) commences a voluntary case;

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

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

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

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

               (A) is for relief against the Company or any Material Subsidiary as debtor in
an involuntary case;

               (B) appoints a Custodian of the Company or any Material Subsidiary or a
Custodian for all or substantially all of the property of the Company or any
Material Subsidiary; or

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

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

               (x) the Liens created by the Security Documents shall at any time not
constitute a valid and perfected Lien on any material portion of the

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Collateral
intended to be covered thereby (to the extent perfection by filing, registration,
recordation or possession is required by this Indenture or the Security Documents)
other than in accordance with the terms of the relevant Security Document and this
Indenture and other than the satisfaction in full of all Obligations under this
Indenture or the release or amendment of any such Lien in accordance with the
terms of this Indenture or the Security Documents, or, except for expiration in
accordance with its terms or amendment, modification, waiver, termination or
release in accordance with the terms of this Indenture and the relevant Security
Document, any of the Security Documents shall for
whatever reason be terminated or cease to be in full force and effect, if in
either case, such default continues for 30 days after notice, or the
enforceability thereof shall be contested by the Company or any Subsidiary
Guarantor.

               (b) A Default under Section 5.01(a)(iii) hereof will not be deemed an Event of Default until
the Trustee notifies the Company, or the Holders of at least 25% in principal amount of the then
outstanding Notes notify the Company and the Trustee, of the Default and the Company does not cure
the Default within 60 days after receipt of the notice. The notice must specify the Default,
demand that it be remedied and state that the notice is a “Notice of Default.” If such a Default
is cured within such time period, it ceases.

               (c) The Trustee may withhold from the Holders notice of any continuing Default or Event of
Default (except any Default or Event of Default in payment of principal or interest on the Notes or
that resulted from the failure to comply with Section 4.08 hereof) if the Trustee determines that
withholding such notice is in the Holders’ interest.

          Section 5.02 Acceleration.

               (a) If an Event of Default (other than an Event of Default specified in sub-clauses (vii) and
(viii) of Section 5.01(a) above) shall have occurred and be continuing under this Indenture, the
Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the Notes
then outstanding by notice to the Company and the Trustee, may declare all Notes to be due and
payable immediately. Upon such declaration of acceleration, the amounts due and payable on the
Notes, as determined pursuant to this Section 5.02, will be due and payable immediately. If an
Event of Default with respect to the Company specified in sub-clauses (vii) and (viii) of Section
5.01(a) above occurs, such an amount will ipso facto become and be immediately due and payable
without any declaration, notice or other act on the part of the Trustee and the Company or any
Holder.

               (b) In the event that the maturity of the Notes is accelerated pursuant to Section 5.02(a)
hereof, 100% of the principal amount of the Notes (or, in the case of a default under Section
5.01(a)(ii) or (iii) hereof resulting from a breach of the covenant set forth in Section 4.08
hereof, 101% of the principal amount of the Notes) will become due and payable plus accrued
interest, if any, to the date of payment.

          Section 5.03 Other Remedies.

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          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of
principal, premium, if any, and interest on the Notes or to enforce the performance of any
provision of the Notes, this Indenture or any Security Document.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All remedies are cumulative to the extent permitted by law.

          Section 5.04 Waiver of Existing Defaults.

          Subject to Section 8.02, the Holders of a majority in principal amount of then outstanding
Notes on behalf of all the Holders of the Notes by written notice to the Trustee may waive any
Default or Event of Default (other than any Default or Event of Default in payment of principal or
interest) on the Notes under this Indenture. Holders of a majority in principal amount of the then
outstanding Notes may rescind an acceleration and its consequence (except an acceleration due to
nonpayment of principal or interest on the Notes) if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or waived. Upon any such
waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereon.

          Section 5.05 Control by Majority.

          The Holders of a majority in principal amount of the Notes then outstanding may direct the
time, method and place of conducting any proceeding for exercising any remedy available to the
Trustee or in its exercise of any trust or power conferred on the Trustee; provided,
however, that such direction does not conflict with the terms of this Indenture. The
Holders may not enforce the provisions of this Indenture, the Notes or the Subsidiary Guarantees
except as provided in this Indenture. The Trustee, however, may refuse to follow any direction (i)
that conflicts with law or this Indenture; (ii) that, subject to Section 6.01, the Trustee
determines is unduly prejudicial to the rights of any other Holder of a Note or (iii) that would
involve the Trustee in personal liability.

          Section 5.06 Limitation on Suits.

          Subject to Section 5.07 hereof, no Holder of a Note may pursue any remedy with respect to this
Indenture, the Notes or any Security Document unless:

               (a) such Holder has previously given the Trustee written notice that an Event of Default is
continuing;

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               (b) Holders of at least a majority in principal amount of the total outstanding Notes make a
written request to the Trustee to pursue the remedy;

               (c) Holders of the Notes have offered the Trustee reasonable security or indemnity against any
loss, liability or expense;

               (d) the Trustee has not complied with such request within 60 days after the receipt thereof
and the offer of security or indemnity; and

               (e) Holders of a majority in principal amount of the total outstanding Notes have not given
the Trustee a direction inconsistent with such request within such 60-day period.

          A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

          Section 5.07 Rights of Holders of Notes to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium, if any, and interest on the Note, on or after the respective
due dates expressed in the Note (including in connection with an Asset Sale Offer or a Change of
Control Offer), or to bring suit for the enforcement of any such payment on or after such
respective dates, is absolute and unconditional and shall not be impaired or affected without the
consent of such Holder.

          Section 5.08 Collection Suit by Trustee.

          If an Event of Default specified in Section 5.01(a)(i) or (ii) hereof occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal of, premium, if any, and
interest remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful,
interest and such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

          Section 5.09 Restoration of Rights and Remedies.

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

          Section 5.10 Trustee May File Proofs of Claim.

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          The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes including the Subsidiary Guarantors), its creditors or its
property and shall be entitled and empowered to participate as a member in any official committee
of creditors appointed in such matter and to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.07 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

          Section 5.11 Priorities.

          Subject to the Security Documents, if the Trustee collects any money pursuant to this Article
5, it shall pay out the money in the following order:

               (a) to the Notes Collateral Agent, its agents and attorneys for amounts under this Indenture,
the Intercreditor Agreement and the Security Documents,
including payment of all compensation, expenses and liability incurred and all advances made,
by the Notes Collateral Agent and the costs and expenses of collection;

               (b) to the Trustee, its agents and attorneys for amounts due under Section 6.07 hereof,
including payment of all compensation, expenses and liabilities incurred, and all advances made, by
the Trustee and the costs and expenses of collection;

               (c) to Holders of Notes for amounts due and unpaid on the Notes for principal, premium, if
any, and interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes for principal, premium, if any, and interest, respectively; and

               (d) to the Company or to such party as a court of competent jurisdiction shall direct
including a Subsidiary Guarantor, if applicable.

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          The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 5.11.

          Section 5.12 Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 5.12 does not apply to a suit by the
Trustee, a suit by a Holder of a Note pursuant to Section 5.07 hereof, or a suit by Holders of more
than 10% in principal amount of the then outstanding Notes.

ARTICLE VI

TRUSTEE

          Section 6.01 Duties of Trustee.

               (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
its exercise, as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

               (b) Except during the continuance of an Event of Default:

               (i) the duties of the Trustee shall be determined solely by the express
provisions of this Indenture and the Trustee need perform only those duties that
are specifically set forth in this Indenture and no others, and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

               (ii) in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture. However, in the case of any
such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

               (c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

               (i) this paragraph does not limit the effect of paragraph (b) of this Section
6.01;

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               (ii) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer, unless it is proved in a court of competent
jurisdiction that the Trustee was negligent in ascertaining the pertinent facts;
and

               (iii) the Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant
to Section 5.05 hereof.

               (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 6.01.

               (e) The Trustee shall be under no obligation to exercise any of its rights or powers under
this Indenture at the request of any Holder, unless such Holder shall have offered to the Trustee
security and indemnity satisfactory to the Trustee.

               (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

          Section 6.02 Rights of Trustee.

               (a) The Trustee may conclusively rely upon any document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney at the sole cost of the Company and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation.

               (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel of its selection and the written advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

               (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent or attorney appointed with due care.

               (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

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               (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

               (f) None of the provisions of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise to incur any liability, financial or otherwise, in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers if it shall have reasonable
grounds for believing that repayment of such funds or indemnity satisfactory to it against such
risk or liability is not assured to it.

               (g) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture.

               (h) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

               (i) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

               (j) In the event the Company is required to pay Additional Interest, the Company will provide
written notice to the Trustee of the Company’s obligation to pay Additional Interest no later than
15 days prior to the next Interest Payment Date, which notice shall set forth the amount of the
Additional Interest to be paid by the Company. The Trustee shall not at any time be under any duty
or responsibility to any Holders to determine whether any Additional Interest is payable and the
amount thereof.

          Section 6.03 Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company with the same rights it
would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for permission to
continue as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee
is also subject to Sections 6.10 and 6.11 hereof.

          Section 6.04 Trustee’s Disclaimer.

          The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the
proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it shall not be responsible for the use or

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application of any money
received by any Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes, the Security Documents or any other
document in connection with the sale of the Notes or pursuant to this Indenture other than its
certificate of authentication.

          Section 6.05 Notice of Defaults.

          If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to Holders of Notes a notice of the Default within 90 days after it occurs. Except in the
case of a Default relating to the payment of principal, premium, if any, or interest on any Note,
the Trustee may withhold from the Holders notice of any continuing Default if and so long as a
committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of the Holders of the Notes. The
Trustee shall not be deemed to know of any Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is such a Default is received
by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee and such
notice refers to the Notes and this Indenture.

          Section 6.06 Reports by Trustee to Holders of the Notes.

          Within 60 days after each May 15, beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of
the Notes a brief report dated as of such reporting date that complies with Trust Indenture Act
Section 313(a) (but if no event described in Trust Indenture Act Section 313(a) has occurred within
the twelve months preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with Trust Indenture Act Section 313(b)(2). The Trustee shall also transmit by mail
all reports as required by Trust Indenture Act Section 313(c).

          A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to
the Company and filed with the SEC and each stock exchange on which the Notes are listed in
accordance with Trust Indenture Act Section 313(d). The Company shall promptly notify the Trustee
when the Notes are listed on any stock exchange.

          Section 6.07 Compensation and Indemnity.

          The Company and the Subsidiary Guarantors, jointly and severally, shall pay to the Trustee
from time to time such compensation for its acceptance of this Indenture and services hereunder as
the parties shall agree in writing from time to time. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company and the
Subsidiary Guarantors, jointly and severally, shall reimburse the Trustee promptly upon request for
all reasonable disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

          The Company and the Subsidiary Guarantors, jointly and severally, shall indemnify the Trustee
for, and hold the Trustee harmless against, any and all loss, damage, claims, liability or expense
(including attorneys’ fees) incurred by it in connection with the

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acceptance or administration of
this trust and the performance of its duties hereunder (including the costs and expenses of
enforcing this Indenture against the Company or any of the Subsidiary Guarantors (including this
Section 6.07) or defending itself against any claim whether asserted by any Holder, the Company or
any Subsidiary Guarantor, or liability in connection with the acceptance, exercise or performance
of any of its powers or duties hereunder). The Trustee shall notify the Company promptly of
any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company
shall not relieve the Company of its obligations hereunder. The Company shall defend the claim and
the Trustee may have separate counsel and the Company shall pay the fees and expenses of such
counsel. The Company need not reimburse any expense or indemnify against any loss, liability or
expense incurred by the Trustee through the Trustee’s own willful misconduct, negligence or bad
faith.

          The obligations of the Company under this Section 6.07 shall survive the satisfaction and
discharge of this Indenture or the earlier resignation or removal of the Trustee.

          Notwithstanding anything contrary in Section 4.15 hereto, to secure the payment obligations of
the Company and the Subsidiary Guarantors in this Section 6.07, the Trustee shall have a Lien prior
to the Notes on all money or property held or collected by the Trustee, except that held in trust
to pay principal and interest on particular Notes. Such Lien shall survive the satisfaction and
discharge of this Indenture.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.01(a)(vii) hereof occurs, the expenses and the compensation for the services (including
the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

          The Trustee shall comply with the provisions of Trust Indenture Act Section 313(b)(2) to the
extent applicable.

          Section 6.08 Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
6.08. The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if:

               (a) the Trustee fails to comply with Section 6.10 hereof;

               (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;

               (c) a custodian or public officer takes charge of the Trustee or its property; or

               (d) the Trustee becomes incapable of acting.

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          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee (at the Company’s expense), the Company or the Holders of at
least 10% in principal amount of the then outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

          If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 6.10 hereof, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and
subject to the Lien provided for in Section 6.07 hereof. Notwithstanding replacement of the
Trustee pursuant to this Section 6.08, the Company’s obligations under Section 6.07 hereof shall
continue for the benefit of the retiring Trustee.

          Section 6.09 Successor Trustee by Merger, etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act shall be the successor Trustee.

          Section 6.10 Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or
of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $50,000,000
as set forth in its most recent published annual report of condition.

          This Indenture shall always have a Trustee who satisfies the requirements of Trust Indenture
Act Sections 310(a)(1), (2) and (5). The Trustee is subject to Trust Indenture Act Section 310(b).

          Section 6.11 Preferential Collection of Claims Against Company.

          The Trustee is subject to Trust Indenture Act Section 311(a), excluding any creditor
relationship listed in Trust Indenture Act Section 311(b). A Trustee who has resigned or

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been
removed shall be subject to Trust Indenture Act Section 311(a) to the extent indicated therein.

ARTICLE VII

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

          Section 7.01 Defeasance Upon Deposit of Moneys or U.S. Government Obligations.

               (a) The Company may, at its option and at any time, elect to have either paragraph (b) or
paragraph (c) below be applied to the outstanding Notes upon compliance with the applicable
conditions set forth in paragraph (d).

               (b) Upon the Company’s exercise under Section 7.01(a) of the option applicable to this clause
(b), the Company and the Subsidiary Guarantors shall be deemed to have been released and discharged
from their respective obligations with respect to the outstanding Notes and Subsidiary Guarantees
on the date the applicable conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Company shall be deemed to
have paid and discharged the entire Indebtedness represented by the outstanding Notes, which shall
thereafter be deemed to be “outstanding” only for the purposes of the Sections and matters under
this Indenture referred to in (i) and (ii) below, and to have satisfied all its other obligations
under the Notes and this Indenture, except for the following provisions which shall survive until
otherwise terminated or discharged hereunder: (i) the rights of Holders of outstanding Notes to
receive solely from the trust fund described in paragraph (d) below and as more fully set forth in
such paragraph, payments in respect of the principal of and interest on such Notes when such
payments are due and (ii) obligations listed in Section 7.02, subject to compliance with this
Section 7.01. The Company may exercise its option under this paragraph (b) notwithstanding the
prior exercise of its option under paragraph (c) below with respect to such Notes.

               (c) Upon the Company’s exercise under Section 7.01(a) of the option applicable to this clause
(c), the Company and the Subsidiary Guarantors shall be released and discharged from the
obligations under any covenant contained in Section 4.03, Section 4.04, Section 4.05, Section 4.07,
Section 4.08, Section 4.09, Section 4.10,
Section 4.11, Section 4.12, Section 4.13, Section 4.14, Section 4.15, Section 4.16, Section
4.17, Section 4.18 and Section 4.19 on and after the date the conditions set forth below are
satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed to
be not “outstanding” for the purpose 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. 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
under Section 5.01(a)(iii), but, except as specified above, the remainder of this Indenture and
such Notes shall

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be unaffected thereby. In addition, upon the Company’s exercise of under Section
7.01(a) of the option applicable to this Section 7.01(c), subject to the satisfaction of the
conditions set forth in Section 7.01(d), Sections 5.01(a)(iii), (iv), (v), (vi) and (x) hereof
shall not constitute Events of Default.

               (d) The following shall be the conditions to application of either paragraph (b) or paragraph
(c) above to the outstanding Notes:

               (i) The Company shall irrevocably have deposited or caused to be deposited
with the Trustee (or another trustee satisfying the requirements of Section 6.10
who shall agree to comply with the provisions of this Article 7 applicable to it)
as trust funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the benefit of the
Holders of Notes, (1) cash in U.S. dollars, or (2) U.S. Government Obligations
which through the scheduled payment of principal and interest in respect thereof
in accordance with their terms will provide, not later than the due date of any
payment of principal of (and premium, if any) and interest, if any, on such Notes,
money in an amount, or (3) a combination thereof, in any case, in an amount,
sufficient, without consideration of any reinvestment of such principal and
interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee,
to pay and discharge, and which shall be applied by the Trustee (or other
qualifying trustee) to pay and discharge, (i) the principal of (and premium, if
any) and interest, if any, on such Notes on the maturity date of such principal or
installment of principal or interest and (ii) any mandatory sinking fund payments
or analogous payments applicable to such Notes on the day on which such payments
are due and payable in accordance with the terms of this Indenture and of such
Notes.

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

               (iii) No Event of Default or event which with notice or lapse of time or both
would become an Event of Default with respect to such Securities shall have
occurred and be continuing on the date of such deposit or, insofar as Section
5.01(a)(vi) and Section 5.01(a)(vii) are concerned, at any time during the period
ending on the 91st day after the date of such deposit (it being understood that
this condition shall not be deemed satisfied until the expiration of such period).

               (iv) In the case of an election under Section 7.01(b), the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling, or (ii) since the date of execution of this Indenture, there has been a
change in the applicable Federal income tax law, in either case to

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the effect
that, and based thereon such opinion shall confirm that, the Holders of 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.

               (v) In the case of an election under Section 7.01(c), the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Notes will not recognize income, gain or loss for Federal income tax purposes
as a result of such covenant defeasance and will be subject to Federal income tax
on the same amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred.

               (vi) The Company shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent to the
defeasance under Section 7.01(b) or the covenant defeasance under Section 7.01(c)
(as the case may be) have been complied with and an Opinion of Counsel to the
effect that either (i) as a result of a deposit pursuant to subsection (a) above
and the related exercise of the Company’s opinion under Section 7.01(b) or Section
7.01(c) (as the case may be), registration is not required under the Investment
Company Act of 1940, as amended, by the Company, with respect to the trust funds
representing such deposit or by the Trustee for such trust funds or (ii) all
necessary registrations under said Act have been effected.

               (vii) Notwithstanding any other provisions of this Section, such Legal
Defeasance or Covenant Defeasance shall be effected in compliance with any
additional or substitute terms,
conditions or limitations with may be imposed on the Company in connection
therewith pursuant to Section 2.01.

          In the event all or any portion of the Notes are to be redeemed through such irrevocable
trust, the Company must make arrangements satisfactory to the Trustee, at the time of such deposit,
for the giving of the notice of such redemption or redemptions by the Trustee in the name and at
the expense of the Company.

          Section 7.02 Survival of the Company’s Obligations.

          Notwithstanding the satisfaction and discharge of this Indenture under Section 12.01, the
Company’s obligations under Sections 2.03 through 2.07, 4.01, 6.07, 6.08, 7.04 and 7.05, however,
shall survive until the Securities of an applicable Series are no longer outstanding. Thereafter,
the Company’s obligations under Sections 6.07, 7.04 and 7.05 shall survive.

          Section 7.03 Application of Trust Money.

          The Trustee shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 7.01. It shall apply the deposited money and the money from U.S.

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Government
Obligations in accordance with this Indenture to the payment of principal of and interest on the
Notes.

          Section 7.04 Repayment to the Company.

          The Trustee and the Paying Agent shall promptly pay to the Company upon request any excess
money or securities held by them at any time. The Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal or interest that remains
unclaimed for two years, provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Company cause to be
published once in a newspaper of general circulation in the City of New York or mail to each such
Holder notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication or mailing, any unclaimed balance
of such money then remaining will be repaid to the Company. After payment to the Company, Holders
of Notes entitled to the money must look to the Company or any Subsidiary Guarantor for payment as
general creditors unless applicable abandoned property law designates another person and all
liability of the Trustee or such Paying Agent with respect to such money shall cease

          Section 7.05 Reinstatement.

          If the Trustee is unable to apply any money or U.S. Government Obligations in accordance with
Section 7.01 by reason of any legal proceeding or by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s and each Subsidiary Guarantor’s obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 7.01 until such time
as the Trustee is permitted to apply all such money or U.S. Government Obligations in accordance
with Section 7.01; provided, however, that (a) if the Company has made any payment
of interest on or principal of any Notes because of the reinstatement of their obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from
the money or U.S. Government Obligations held by the Trustee and (b) unless otherwise required by
any legal proceeding or any order or judgment of any court or governmental authority, the Trustee
shall return all such money or U.S. Government Obligations to the Company promptly after receiving
a written request therefor at any time, if such reinstatement of the Company’s obligations has
occurred and continues to be in effect.

ARTICLE VIII

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          Section 8.01 With Consent of Majority; Without Consent of Holders.

          Subject to Section 8.02, this Indenture, the Notes or the Security Documents may be amended or
supplemented with the consent (which may include consents obtained in connection with a tender
offer or exchange offer for Notes) of the Holders of at least a majority in principal amount of the
Notes then outstanding, and any existing Default or Event of Default

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(other than any continuing
Default or Event of Default in the payment of interest on or the principal of the Notes) under, or
compliance with any provision of, this Indenture or any Security Document may be waived with the
consent (which may include consents obtained in connection with a tender offer or exchange offer
for Notes) of the Holders of a majority in principal amount of the Notes then outstanding. The
Company, the Subsidiary Guarantors and the Trustee may amend or supplement this Indenture, the
Notes or the Security Documents or waive any provisions hereof or thereof without notice to or
consent of any Holder of Notes:

               (a) to cure any ambiguity, defect or inconsistency in this Indenture, the Notes, the
Guarantees or the Security Documents;

               (b) to comply with the provisions of Section 4.17;

               (c) to provide for uncertificated Notes in addition to, or in place of, certificated Notes;

               (d) to provide for any Subsidiary Guarantee of the Notes, to add security to or for the
benefit of the Notes and, in the case of the Security Documents, to or for the benefit of the other
secured parties named therein or holders of Other Pari Passu Lien Obligations, or to confirm and
evidence the release, termination or discharge of any Subsidiary Guarantee of or Lien securing the
Notes when such release, termination or discharge is permitted by this Indenture and the Security
Documents;

               (e) to add covenants or new events of default for the protection of the Holders of the Notes;

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

               (g) to comply with or qualify this Indenture under the Trust Indenture Act.

After an amendment under this Section 8.01 becomes effective, the Company shall mail notice of such
amendment to the affected Holders of Notes.

          Section 8.02 With Consent of all Affected Holders.

          Without the consent of each Holder of Notes, an amendment, supplement or waiver, including a
waiver pursuant to Section 5.04, may not:

               (a) reduce the amount of Notes whose Holders must consent to an amendment, supplement or
waiver;

               (b) reduce the rate of, or change the time for payment of, interest, including default
interest, on any Note;

               (c) reduce the principal of, or change the fixed maturity of, any Note or alter the provisions
with respect to redemption under Section 3.07 hereof;

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               (d) make any Note payable in money other than that stated in the Note;

               (e) make any change in the Sections 5.04, 4.01 or, in part, this Section 8.02;

               (f) modify the ranking or priority of the Notes or any Subsidiary Guarantee;

               (g) modify any of the provisions with respect to mandatory offers to repurchase Notes pursuant
to Section 4.08 or Section 4.13 hereof after the obligation to make such mandatory offer to
repurchase has arisen;

               (h) release any Subsidiary Guarantor from any of its obligations under its Subsidiary
Guarantee or this Indenture otherwise than in accordance with the terms contained herein,

               (i) waive a continuing Default or Event of Default in the payment of principal of or interest
on the Notes, or

               (j) effect a release of all or substantially all of the Collateral other than pursuant to the
terms of the Security Documents or as otherwise permitted under this Indenture.

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

          The right of any Holder to participate in any consent required or sought pursuant to any
provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise
required from such Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of Notes with respect to which such consent is required or sought as of a date
identified by the Trustee in a notice furnished to Holders in accordance with the terms of this
Indenture.

          Section 8.03 Compliance with Trust Indenture Act.

          Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as then in effect.

          Section 8.04 Revocation and Effect of Consents.

          A consent to an amendment, supplement or waiver by a Holder shall bind the Holder and every
subsequent Holder of Notes or portion of Notes that evidences the same debt as the consenting
Holders’ Notes, even if notation of the consent is not made on any Note. Subject to the following
paragraph, any such Holder or subsequent Holder, however, may revoke the consent as to his Notes or
portion of Notes. Such revocation shall be effective only if the Trustee receives the notice of
revocation before the date the amendment, supplement or waiver becomes effective.

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          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders of Notes entitled to consent to any amendment, supplement or waiver. If a
record date is fixed, then notwithstanding the last sentence of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly designated proxies),
and only those Persons, shall be entitled to revoke any consent previously given, whether or not
such Persons continue to be Holders after
such record date. No such consent shall be valid or effective for more than 120 days after
such record date unless the consent of the requisite number of Holders has been obtained.

          After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it makes a change described in any of clauses of Section 8.02, in which case, the amendment,
supplement or waiver shall bind only each Holder of Notes who has consented to it and every
subsequent Holder of Notes or portion of Notes that evidences the same debt as the consenting
Holder’s Notes; provided that any such waiver shall not impair or affect the right of any
Holder to receive payment of principal of and interest on the Notes, on or after the respective due
dates expressed in such Notes, or to bring suit for the enforcement of any such payment on or after
such respective dates without the consent of such Holder.

          Section 8.05 Notation on or Exchange of Notes.

          If an amendment, supplement or waiver changes the terms of the Notes, the Company may require
the Holder of the Notes to deliver it to the Trustee, at which time the Trustee shall place an
appropriate notation on the Notes about the changed terms and return it to the Holder.
Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Notes
shall issue and the Trustee shall authenticate a new Note that reflects the changed terms.

          Section 8.06 Trustee to Sign Amendments.

          Subject to Section 6.02(b), the Trustee shall sign any amendment, supplement or waiver
authorized pursuant to this Article if the amendment, supplement or waiver does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may
but need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that such amendment or supplemental
indenture is authorized or permitted by this Indenture, that it is not inconsistent herewith, and
that it will be valid and binding upon the Company in accordance with its terms.

          Section 8.07 Amendments to Intercreditor Agreement.

          The Intercreditor Agreement and Security Documents may be amended from time to time at the
sole request and expense of the Company, and without the consent of any First Priority Collateral
Agent or the Notes Collateral Agent (A) to add other parties (or any authorized agent thereof or
trustee therefor) holding First Priority Obligations or Other Pari Passu Lien Obligations that are
incurred in compliance with the First Priority Documents, this Indenture and the Security
Documents, (B) to establish that
the Liens on any First Priority Collateral securing any such First Priority Obligations shall
be senior under the Intercreditor

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Agreement to the Liens on such First Priority Collateral securing
the Obligations under this Indenture, the Notes and the Subsidiary Guarantees on the terms provided
for in the Intercreditor Agreement in effect immediately prior to such amendment and (C) to
establish that the Liens on any Notes Collateral securing any such Other Pari Passu Lien
Obligations shall be pari passu under the Intercreditor Agreement with the Liens on such Notes
Collateral securing the Obligations under this Indenture, the Notes and the Subsidiary Guarantees
on the terms provided for in the Intercreditor Agreement in effect immediately prior to such
amendment.

ARTICLE IX

RANKING OF NOTE LIENS

          Section 9.01 Agreement for the Benefit of Holders of First-Priority Liens.

          The Trustee and the Notes Collateral Agent agree, and each Holder of Notes by accepting a Note
agrees, that:

               (a) the Liens securing the Second Priority Obligations upon any and all First Priority
Collateral are, to the extent and in the manner provided in the Intercreditor Agreement,
subordinate in ranking to all present and future First Priority Liens;

               (b) the agreements as to the ranking of the Second Priority Liens set forth in the
Intercreditor Agreement:

               (i) are enforceable by First Priority Collateral Agents, for the benefit of
the holders of First Priority Obligations; and

               (ii) will remain enforceable by the First Priority Collateral Agents until
the Discharge of First Priority Obligations (as defined in the Intercreditor
Agreement);

               (c) as among the Notes Collateral Agent, the Trustee and the holders of Second Priority
Obligations and the holders of the First Priority Obligations, the holders of the First Priority
Obligations, the First Priority Collateral Agents, on behalf of the holders of the First Priority
Obligations, will have the ability to control and obtain remedies with respect to all First
Priority Collateral without the necessity of any consent of or notice to the Notes Collateral
Agent, the Trustee or any such holder, as set forth in more detail in the Intercreditor Agreement;

               (d) the Intercreditor Agreement may be amended from time to time without the consent of the
Holders or the holders of First Priority Obligations to add other parties holding Other Pari Passu
Lien Obligations or other First Priority
Obligations, in each case to the extent permitted to be incurred hereunder and other
applicable agreements;

               (e) nothing herein shall be deemed to preclude any of the Trustee, the Notes Collateral Agent,
or the Holders from offering competing DIP Financing (as defined in the Intercreditor Agreement)
secured by Liens subordinate to the First Priority Liens; and

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               (f) this Indenture, Notes, Guarantees and Security Documents (other than the Escrow Agreement)
are subject to the Intercreditor Agreement.

          Section 9.02 Notes, Guarantees and Other Second Priority Obligations not Subordinated.

          The provisions of this Article 9 are intended solely to set forth the relative ranking, as
Liens, of the Second Priority Liens as against the First-Priority Liens. The Notes and Guarantees
are senior non-subordinated obligations of the Company and Guarantors. Neither the Notes, the
Guarantees and other Second Priority Obligations nor the exercise or enforcement of any right or
remedy for the payment or collection thereof (other than the exercise of rights and remedies of a
secured creditor, which are subject to the Intercreditor Agreement) are intended to be, or will
ever be by reason of the provisions of this Article 9, in any respect subordinated, deferred,
postponed, restricted or prejudiced.

          Section 9.03 Relative Rights.

          The Intercreditor Agreement defines the relative rights, as lienholders, of holders of Second
Priority Liens and holders of First Priority Liens. Nothing in this Indenture or the Intercreditor
Agreement will:

               (a) impair, as between the Company and Holders of Notes, the obligation of the Company, which
is absolute and unconditional, to pay principal of, premium and interest on the Notes in accordance
with their terms or to perform any other obligation of the Company or any other obligor under this
Indenture, Notes, Subsidiary Guarantees and Security Documents;

               (b) restrict the right of any Holder of Notes to sue for payments that are then due and owing,
in a manner not inconsistent with the provisions of the Intercreditor Agreement;

               (c) prevent the Trustee, the Notes Collateral Agent or any Holder of Notes from exercising
against the Company or any other obligor any of its other available remedies upon a Default or
Event of Default (other than its rights as a secured creditor, which are subject to the
Intercreditor Agreement); or

               (d) restrict the right of the Trustee, the Notes Collateral Agent or any Holder of Notes:

               (i) to file and prosecute a petition seeking an order for relief in an
involuntary bankruptcy case as to any obligor or otherwise to commence, or seek
relief commencing, any insolvency or liquidation proceeding involuntarily against
any obligor;

               (ii) to make, support or oppose any request for an order for dismissal,
abstention or conversion in any insolvency or liquidation proceeding;

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               (iii) to make, support or oppose, in any insolvency or liquidation
proceeding, any request for an order extending or terminating any period during
which the debtor (or any other Person) has the exclusive right to propose a plan
of reorganization or other dispositive restructuring or liquidation plan therein;

               (iv) to seek the creation of, or appointment to, any official committee
representing creditors (or certain of the creditors) in any insolvency or
liquidation proceedings and, if appointed, to serve and act as a member of such
committee without being in any respect restricted or bound by, or liable for, any
of the obligations under this Article 9;

               (v) to seek or object to the appointment of any professional person to serve
in any capacity in any insolvency or liquidation proceeding or to support or
object to any request for compensation made by any professional person or others
therein;

               (vi) to make, support or oppose any request for order appointing a trustee or
examiner in any insolvency or liquidation proceedings; or

               (vii) otherwise to make, support or oppose any request for relief in any
insolvency or liquidation proceeding that it is permitted by law to make, support
or oppose:

               (A) if it were a holder of unsecured claims; or

                    (B) as to any matter relating to any plan of reorganization or other
restructuring or liquidation plan or as to any matter relating to the
administration of the estate or the disposition of the case or proceeding;

in each case, except as set forth in the Intercreditor Agreement.

ARTICLE X

COLLATERAL AND SECURITY

          Section 10.01 Security Documents.

          The payment of the principal of and interest and premium, if any, on the Notes when due,
whether on an interest payment date, at maturity, by acceleration, repurchase, redemption or
otherwise and whether by the Company pursuant to the Notes or by any Subsidiary Guarantor pursuant
to its Subsidiary Guarantees, the payment of all other Second Priority Obligations and the
performance of all other obligations of the Company and the Subsidiary Guarantors under this
Indenture, the Notes, the Subsidiary Guarantees and the Security Documents are secured by Liens on
the Collateral prior to all other Liens except for Permitted Liens, as provided in the Security
Documents which the Company and the Subsidiary

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Guarantors have entered into simultaneously with the
execution of this Indenture, or in certain circumstances, subsequent to the Issue Date, and will be
secured as provided in the Security Documents hereafter delivered as required or permitted by this
Indenture. The Company shall, and shall cause each Subsidiary Guarantor to, and each Subsidiary
Guarantor shall, make all filings (including filings of continuation statements and amendments to
Uniform Commercial Code financing statements) and take all other actions as are required by the
Security Documents to maintain (at the sole cost and expense of the Company and Subsidiary
Guarantors) the security interest created by the Security Documents in the Collateral as a
perfected security interest, subject only to Permitted Liens (provided that the Company and the
Subsidiary Guarantors shall not be required to execute or deliver any control agreements in favor
of the Notes Collateral Agent with respect to any deposit account or securities account (other
than, prior to termination of the Escrow Agreement, deposit accounts or securities accounts
included in the Escrow Account pursuant to the terms of the Escrow Agreement)).

          Section 10.02 Notes Collateral Agent.

               (a) The Holders hereby appoint Wilmington Trust FSB to act as Notes Collateral Agent, and the
Notes Collateral Agent shall have the privileges, powers and immunities as set forth herein and in
the Security Documents to which it is party. The Holders hereby agree that the Notes Collateral
Agent shall hold the Collateral in trust for the benefit of all of the Holders and the Trustee, in
each case, pursuant to the terms of the Security Documents, and the Notes Collateral Agent is
hereby authorized to execute and deliver the Security Documents. Subject to the Intercreditor
Agreement, the Notes Collateral Agent is authorized and empowered to appoint one or more co-Notes
Collateral Agents as it deems necessary or appropriate.

               (b) Subject to Section 6.01, neither the Trustee nor the Notes Collateral Agent nor any of
their respective officers, directors, employees, attorneys or agents will be responsible or liable
for the existence, genuineness, value or protection of any Collateral, for the legality,
enforceability, effectiveness or sufficiency of the Security Documents, for the creation,
perfection, priority, sufficiency or protection of any Lien on the Collateral, or for any defect or
deficiency as to any such matters, or for any failure to demand, collect, foreclose or realize upon
or otherwise enforce any of such Liens or any of the Security Documents or any delay in doing so.

               (c) The Notes Collateral Agent will be subject to such directions as may be given it in
writing by the Trustee from time to time (as required or permitted by this Indenture). Except as
directed by the Trustee as required or permitted by this Indenture or as required or permitted by
the Security Documents, the Notes Collateral Agent will not be obligated:

               (i) to act upon directions purported to be delivered to it by any other
Person;

               (ii) to foreclose upon or otherwise enforce any Second Priority Lien; or

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               (iii) to take any other action whatsoever with regard to any or all of the
Liens on the Collateral, the Security Documents or the Collateral.

               (d) The Notes Collateral Agent will be accountable only for amounts that it actually receives
as a result of the enforcement of the Liens on the Collateral or the Security Documents.

               (e) In acting as Notes Collateral Agent or co-Notes Collateral Agent, the Notes Collateral
Agent and each co-Notes Collateral Agent may rely upon and enforce for its own benefit each and all
of the rights, powers, immunities, indemnities and benefits of the Trustee under Article 6 hereof,
each of which shall also be deemed to be for the benefit of the Notes Collateral Agent.

               (f) At all times when the Trustee is not itself the Notes Collateral Agent, the Company will
deliver to the Trustee copies of all Security Documents delivered to the Notes Collateral Agent and
copies of all documents delivered to the Notes Collateral Agent pursuant to the Security Documents.

               (g) The Company shall promptly notify the Notes Collateral Agent if any material portion of
the Collateral is damaged, destroyed or condemned.

          Section 10.03 Authorization of Actions to be Taken.

               (a) Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of each
Security Document and the Intercreditor Agreement, as originally in effect on the Issue Date and as
amended, supplemented or replaced from time to time in accordance with its terms or the terms of
this Indenture, authorizes and directs the Trustee and the Notes Collateral Agent to execute and
deliver the Security Documents and the Intercreditor Agreement to which it is a party and
authorizes and empowers the Trustee and the Notes Collateral Agent to bind the Holders of Notes and
other holders of Second Priority Obligations as set forth in the Security Documents to which it is
a party and to perform its obligations and exercise its rights and powers thereunder.

               (b) The Notes Collateral Agent and the Trustee are authorized and empowered to receive for the
benefit of the Holders of Notes any funds collected or distributed under the Security Documents to
which the Notes Collateral Agent or Trustee is a party and to make further distributions of such
funds to the Holders of Notes according to the provisions of this Indenture.

               (c) Subject to the provisions of Section 6.01, Section 6.02 and Article 9 hereof and the
Intercreditor Agreement, the Trustee may direct, on behalf of and at the direction of the Holders
of Notes, the Notes Collateral Agent to take all actions it deems necessary or appropriate in order
to:

               (i) foreclose upon or otherwise enforce any or all of the Liens on the
Collateral;

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               (ii) enforce any of the terms of the Security Documents to which the Notes
Collateral Agent or Trustee is a party; or

               (iii) collect and receive payment of any and all Second Priority Obligations.

          Subject to the Intercreditor Agreement (in the case of Collateral other than the Escrow
Collateral), Section 6.01, Section 6.02 and Article 9, the Trustee is authorized and empowered (but
is under no duty) to institute and maintain, or direct the Notes Collateral Agent to institute and
maintain, such suits and proceedings as it may deem expedient to protect or enforce the Second
Priority Liens or the Security Documents to which the Notes Collateral Agent or Trustee is a party
or to prevent any impairment of Collateral by any acts that may be unlawful or in violation of the
Security Documents to which the Notes Collateral Agent or Trustee is a party or this Indenture, and
such suits and proceedings as the Trustee or the Notes Collateral Agent may deem in their sole
discretion expedient to preserve or protect its interests and the interests of the Holders of Notes
in the Collateral, including power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such
enactment, rule or order would impair the security interest hereunder or be prejudicial to the
interests of Holders of Notes, the Trustee or the Notes Collateral Agent; provided, however, that
neither the Trustee nor the
Notes Collateral Agent have any duty or obligation to exercise the rights and discretion
afforded by this paragraph..

          Section 10.04 Release of Collateral.

               (a) The Company and the Subsidiary Guarantors will be entitled to the releases of property and
other assets included in the Collateral from the Liens securing the Notes under any one or more of
the following circumstances:

               (i) to enable the disposition of such property or assets to the extent not
prohibited under Section 4.13;

               (ii) in the case of a Subsidiary Guarantor that is released from its
Subsidiary Guarantee, the release of the property and assets of such Subsidiary
Guarantor; or

               (iii) as set forth in Article 8.

               (b) With respect to any First Priority Collateral, and notwithstanding the existence of any
Event of Default but subject to the Intercreditor Agreement, the Second Priority Lien on such First
Priority Collateral shall also be automatically, unconditionally and simultaneously released to the
extent the First Priority Liens on such First Priority Collateral are released by the applicable
First Priority Collateral Agent in connection with the sale or other disposition in connection with
the foreclosure or other exercise of remedies with respect to, such First Priority Collateral by
such First Priority Collateral Agent (except with respect to any proceeds of such sale or other
disposition that are not applied to reduce the First Priority Obligations).

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               (c) The security interests in all Collateral securing the Notes and Subsidiary Guarantees also
will be released upon:

               (i) payment in full of the principal of, together with accrued and unpaid
interest on, the Notes and all other Obligations under this Indenture, the
Subsidiary Guarantees and the Security Documents that are due and payable at or
prior to the time such principal, together with accrued and unpaid interest, are
paid or

               (ii) a legal defeasance or covenant defeasance under this Indenture or a
discharge of this Indenture, in each case as described under Article 7 hereof.

               (d) The security interests in any Collateral securing the Notes and Subsidiary Guarantees will
be released, automatically and without the need for further action by any Person, if the
disposition of such Collateral is otherwise permitted under the terms of this Indenture and all
requirements of the TIA have been complied with.

               (e) Any release of Collateral in accordance with this Section 10.04 and the Security Documents
will not be deemed to impair the security under this Indenture and any engineer, appraiser or other
expert may rely on such provision in delivering a certificate requesting release so long as all
other provisions of this Indenture with respect to such release have been complied with.

          Section 10.05 Filing, Recording and Opinions.

               (a) The Company will comply with the provisions of TIA § 314 to the extent applicable. To the
extent applicable, the Company will cause TIA § 313(b), relating to reports, TIA § 314(b), relating
to opinions, and TIA § 314(d), relating to the release of property or securities subject to the
Lien of the Security Documents, to be complied with. Any certificate or opinion required by TIA §
314(d) shall be made by an officer or legal counsel, as applicable, of the Company except in cases
where TIA § 314(d) requires that such certificate or opinion be made by an independent Person,
which Person will be an independent engineer, appraiser or other expert selected by or reasonably
satisfactory to the Trustee. Notwithstanding anything to the contrary in this paragraph, the
Company will not be required to comply with all or any portion of TIA § 314(d) if it reasonably
determines that under the terms of TIA § 314(d) or any interpretation or guidance as to the meaning
thereof of the SEC and its staff, including “no action” letters or exemptive orders, all or any
portion of TIA § 314(d) is inapplicable to any release or series of releases of Collateral.

          Any release of Collateral permitted by Section 10.04 hereof or the Security Documents will be
deemed not to impair the Liens under this Indenture and the Security Documents in contravention
thereof and any person that is required to deliver a certificate or opinion pursuant to Section
314(d) of the TIA or otherwise under this Indenture or the Security Documents, shall be entitled to
rely upon the foregoing as a basis for delivery of such certificate or opinion. The Trustee may,
to the extent permitted by Section 6.01 and 6.02 hereof, accept as

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conclusive evidence of
compliance with the foregoing provisions the appropriate statements contained in such documents and
opinion.

               (b) If any Collateral is released in accordance with this Indenture or any Security Document
at a time when the Trustee is not itself also the Notes Collateral Agent and if the Company has
delivered the certificates and documents required by the Security Documents and permitted to be
delivered by Section 11.04 (if any) and all documentation required by TIA §314(d) in connection
with such release the Trustee will, upon the Company’s written request, acknowledge to the Notes
Collateral Agent receipt of the Officers’ Certificates and Opinion of Counsel required by the
Indenture.

ARTICLE XI

SUBSIDIARY GUARANTEES; RELEASE OF SUBSIDIARY GUARANTORS

          Section 11.01 Subsidiary Guarantee.

               (a) Subject to the provisions of this Article 11, each Subsidiary Guarantor hereby jointly and
severally unconditionally guarantees to each Holder and to the Trustee and its successors and
assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the
obligations of the Company or any other Subsidiary Guarantor to the Holders or the Trustee
hereunder or thereunder, that: (i) the principal of, premium, if any, and interest on the Notes
will be duly and punctually paid in full when due, whether at maturity, by acceleration or
otherwise, and interest on the overdue principal and (to the extent permitted by law) interest, if
any, on the Notes and all other obligations of the Company or the Subsidiary Guarantors to the
Holders or the Trustee hereunder or thereunder (including fees, expenses or other) and all other
obligations with respect to the Notes and this Indenture will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (ii) in case of any extension
of time of payment or renewal of any Notes, the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed, or failing
performance of any other obligation of the Company to the Holders, for whatever reason, each
Subsidiary Guarantor will be obligated, jointly and severally with each other Subsidiary Guarantor,
to pay, or to perform or cause the performance of, the same immediately. An Event of Default under
this Indenture or the Notes shall constitute an event of default under this Article 11, and shall
entitle the Holders of Notes to accelerate the obligations of the Subsidiary Guarantors hereunder
in the same manner and to the same extent as the obligations of the Company.

               (b) Each of the Subsidiary Guarantors hereby agrees that its obligations hereunder shall be
continuing, absolute and unconditional, irrespective of, and shall be unaffected by, the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce
the same, any waiver or consent by any Holder or the Trustee with respect to any provisions hereof
or thereof, any release of any other Subsidiary Guarantor, the recovery of any judgment against the
Company, any action to enforce the same, whether or not a Subsidiary Guarantee is affixed to any
particular Note, or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Subsidiary Guarantor. Each of

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the Subsidiary Guarantors hereby waives
the benefit of diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a proceeding first against
the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee
will not be discharged except by complete performance of the obligations contained in the Notes,
this Indenture and this Article 11. If any Holder or the Trustee is required by any court or
otherwise to return to the Company or to any Subsidiary Guarantor, or any custodian, trustee,
liquidator or other similar official acting in relation to the Company or such Subsidiary
Guarantor, any amount paid by the Company or such Subsidiary Guarantor to the Trustee or such
Holder, this Article 11, to the extent theretofore discharged, shall be reinstated in full force
and effect. Each Subsidiary Guarantor further agrees that, as between it, on the one hand, and the
Holders of Notes and the Trustee, on the other hand, (i) subject to this Article 11, the maturity
of the obligations guaranteed hereby may be accelerated as provided in Article 5 hereof for the
purposes of this Article 11, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (ii) in the event of any
acceleration of such obligations as provided in Article 5 hereof, such obligations (whether or not
due and payable) shall forthwith become due and payable by the Subsidiary Guarantors for the
purpose of this Article 11.

               (c) This Article 11 shall remain in full force and effect and continue to be effective should
any petition be filed by or against the Company for liquidation or reorganization, should the
Company become insolvent or make an assignment for the benefit of creditors or should a receiver or
trustee be appointed for all or any significant part of the Company’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if
at any time payment and performance of the Notes are, pursuant to applicable law, rescinded or
reduced in amount, or must otherwise be restored or returned by any obligee on the Notes, whether
as a “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part thereof, is rescinded,
reduced, restored or returned, the Subsidiary Guarantees shall, to the fullest extent permitted by
law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced,
restored or returned.

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

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          Section 11.02 Execution and Delivery of Subsidiary Guarantee.

               (a) To further evidence the Subsidiary Guarantee set forth in Section 11.01, each of the
Subsidiary Guarantors hereby agrees that a notation of such Subsidiary Guarantee, substantially in
the form included in Exhibit A hereto, shall be endorsed on each Note authenticated and
delivered by the Trustee after such Subsidiary Guarantee is executed and executed by either manual
or facsimile signature of an Officer of each Subsidiary Guarantor. The validity and enforceability
of any Subsidiary Guarantee shall not be affected by the fact that it is not affixed to any
particular Note.

               (b) Each of the Subsidiary Guarantors hereby agrees that its Subsidiary Guarantee set forth in
Section 11.01 shall remain in full force and effect notwithstanding any failure to endorse on each
Note a notation of such Subsidiary Guarantee.

               (c) If an Officer of a Subsidiary Guarantor whose signature is on this Indenture or a Note no
longer holds that office at the time the Trustee authenticates such Note or at any time thereafter,
such Subsidiary Guarantor’s Subsidiary Guarantee of such Note shall be valid nevertheless.

               (d) The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of any Subsidiary Guarantee set forth in this Indenture on behalf of the
Subsidiary Guarantor.

          Section 11.03 Additional Subsidiary Guarantors.

          Any Person may become a Subsidiary Guarantor by executing and delivering to the Trustee (a) a
supplemental indenture in form and substance satisfactory to the Trustee which subjects such Person
to the provisions of this Indenture as a Subsidiary Guarantor, and (b) an Opinion of Counsel to the
effect that such supplemental indenture has been duly authorized and executed by such Person and
constitutes the legal, valid, binding and enforceable obligation of such Person (subject to such
customary exceptions concerning fraudulent conveyance laws, creditors’ rights and equitable
principles as may be acceptable to the Trustee in its discretion).

          Section 11.04 Release of a Subsidiary Guarantor.

               (a) If all or substantially all of the assets of any Subsidiary Guarantor or all (or a portion
sufficient to cause such Subsidiary Guarantor to no longer be a Subsidiary of the Company) of the
Capital Stock of any Subsidiary Guarantor is sold (including by consolidation, merger, issuance or
otherwise) or disposed of (including by liquidation, dissolution or otherwise) by the Company or
any of its Subsidiaries, or, unless the Company elects otherwise, if any Subsidiary Guarantor is
designated an Unrestricted Subsidiary in accordance with the terms of this Indenture, then such
Subsidiary Guarantor (in the event of a sale or other disposition of all of
the Capital Stock of such Subsidiary Guarantor or a designation as an Unrestricted Subsidiary)
or the Person acquiring such assets (in the event of a sale or other disposition of all or
substantially all of the assets of such Subsidiary Guarantor) shall be deemed automatically and
unconditionally released and discharged from any of its obligations under this Indenture without

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any further action on the part of the Trustee or any Holder of the Notes, subject in each case to
compliance with the Sections 4.13 and 4.17 hereof.

               (b) The Trustee shall deliver an appropriate instrument evidencing the release of a Subsidiary
Guarantor upon receipt of a request of the Company accompanied by an Officers’ Certificate
certifying as to the compliance with this Section 11.04. Any Subsidiary Guarantor not so released
or the entity surviving such Subsidiary Guarantor, as applicable, will remain or be liable under
its Subsidiary Guarantee as provided in this Article 11.

               (c) The Trustee shall execute any documents reasonably requested by the Company or a
Subsidiary Guarantor in order to evidence the release of such Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee endorsed on the Notes and under this Article 11.

               (d) Except as set forth in Article 4 hereof and this Section 11.04, nothing contained in this
Indenture or in any of the Notes shall prevent any consolidation or merger of a Subsidiary
Guarantor with or into the Company or another Subsidiary Guarantor or shall prevent any sale or
conveyance of the property of a Subsidiary Guarantor as an entirety or substantially as an entirety
to the Company or another Subsidiary Guarantor.

          Section 11.05 Waiver of Subrogation; Right of Conribution.

               (a) Except as set forth in Section 11.05(b) below, each Subsidiary Guarantor hereby
irrevocably waives any claim or other rights which it may now or hereafter acquire against the
Company or any of its Subsidiaries that arise from the existence, payment, performance or
enforcement of such Subsidiary Guarantor’s obligations under this Article 11 and this Indenture,
including, without limitation, any right of subrogation, reimbursement, exoneration,
indemnification, and any right to participate in any claim or remedy of any Holder of Notes against
the Company or any of its Subsidiaries, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including, without limitation, the right to take
or receive from the Company or any of its Subsidiaries, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account of such claim or
other rights. If any amount shall be paid to any Subsidiary Guarantor in violation of the
preceding sentence and the Notes shall not have been paid in full, such amount shall have been
deemed to have been paid to such Subsidiary Guarantor for the benefit of, and held in trust for the
benefit of, the Holders of the Notes, and shall forthwith be paid to the Trustee for the benefit of
such Holders to be credited and applied upon the Notes, whether matured or unmatured, in accordance
with the terms of this Indenture. Each Subsidiary Guarantor acknowledges that it will receive
direct and indirect benefits from the financing arrangements contemplated by this Indenture and
that the waiver set forth in this Section 11.05 is knowingly made in contemplation of such
benefits.

               (b) Notwithstanding Section 11.05(a), each Subsidiary Guarantor that makes a payment or
distribution under a Subsidiary Guarantee shall be entitled to a contribution from each other
Subsidiary Guarantor in an amount pro rata, based on the net assets of each Subsidiary Guarantor,
determined in accordance with GAAP.

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ARTICLE XII

SATISFACTION AND DISCHARGE

          Section 12.01 Satisfaction and Discharge.

          This Indenture shall be discharged and shall cease to be of further effect as to all Notes,
when either:

               (a) all Notes theretofore authenticated and delivered, except lost, stolen or destroyed Notes
which have been replaced or paid and Notes for whose payment money has theretofore been deposited
in trust, have been delivered to the Trustee for cancellation; or

               (b) (i) all Notes not theretofore delivered to the Trustee for cancellation have become due
and payable by reason of the making of a notice of redemption or otherwise, shall become due and
payable within one year or may be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company, and the Company or any Subsidiary Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit
of the Holders of the Notes, cash in U.S. dollars, U.S. Government Obligations, or a combination
thereof, in such amounts as will be sufficient without consideration of any reinvestment of
interest to pay and discharge the entire indebtedness on the Notes not theretofore delivered to the
Trustee for cancellation for principal, premium, if any, and accrued interest to the date of
maturity or redemption;

               (ii) no Default (other than that resulting from borrowing funds to be applied
to make such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith) with
respect to this Indenture or the Notes shall have occurred and be continuing on the
date of such deposit or shall occur as a result of such deposit and such deposit
will not result in a breach or violation of, or constitute a default under, the
Credit Facilities or any other material agreement or instrument (other than this
Indenture) to which the Company or any Subsidiary Guarantor is a party or by which
the Company or any Subsidiary Guarantor is bound (other than that resulting from
borrowing funds to be applied to make such deposit and any similar and simultaneous
deposit relating to other Indebtedness and in each case, the granting of Liens in
connection therewith);

               (c) the Company has paid or caused to be paid all sums payable by it under this Indenture; and

               (d) if applicable, the Company has delivered irrevocable instructions to the Trustee to apply
the deposited money toward the payment of the Notes at maturity or the redemption date, as the case
may be.

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          In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

          Notwithstanding the satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to subclause (i) of clause (b) of this Section 12.01, the
provisions of Sections 4.01, 4.02 and 12.02 hereof shall survive.

          Section 12.02 Application of Trust Money.

          Subject to the provisions of Section 7.05 hereof, all money deposited with the Trustee
pursuant to Section 12.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment
such money has been deposited with the Trustee; but such money need not be segregated from other
funds except to the extent required by law.

          If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Subsidiary Guarantor’s obligations under this Indenture and
the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section
12.01 hereof; provided that if the Company has made any payment of principal of, premium,
if any, or interest on any Notes because of the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Notes to receive such payment from the money or
U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE XIII

MISCELLANEOUS

          Section 13.01 Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
Trust Indenture Act, the imposed duties shall control.

          Section 13.02 Notices.

          Any notice or communication by the Company, any Subsidiary Guarantor or the Trustee to the
others is duly given if in writing and delivered in person or mailed by first-class mail
(registered or certified, return receipt requested), fax or overnight air courier guaranteeing next
day delivery, to the others’ address:

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If to the Company and/or any Subsidiary Guarantor:

c/o Beazer Homes USA, Inc.

1000 Abernathy Road

Atlanta, Georgia 30328

Fax: (770) 481-2808

Attention: Kenneth F. Khoury

If to the Trustee:

U.S. Bank National Association

Corporate Trust Services

1349 West Peachtree Street NW

Suite 1050

Atlanta, Georgia 30309

Fax No.: (404) 898-8844

Attention: Beazer 12% Notes (2009 Indenture)

If to the Notes Collateral Agent:

Wilmington Trust FSB

c/o Wilmington Trust Co.

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-1605

Fax No.: (302) 636-4145

Attention: Corporate Capital Markets

          The Company, any Subsidiary Guarantor or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications.

          All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five calendar days after being
deposited in the mail, postage prepaid, if mailed by first-class mail; when receipt acknowledged,
if faxed; and the next Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery; provided that any notice or communication delivered
to the Trustee shall be deemed effective upon actual receipt thereof.

          Any notice or communication to a Holder shall be mailed by first-class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day
delivery to its address shown on the register kept by the Registrar. Any notice or
communication shall also be so mailed to any Person described in Trust Indenture Act Section
313(c), to the extent required by the Trust Indenture Act. Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

          If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

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          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

          Section 13.03 Communication by Holders of Notes with Other Holders of Notes.

          Holders may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Company, the Trustee, the Registrar
and anyone else shall have the protection of Trust Indenture Act Section 312(c).

          Section 13.04 Certificate and Opinion as to Conditions Precedent.

               (a) Upon any request or application by the Company or any of the Subsidiary Guarantors to the
Trustee to take any action under this Indenture, the Company or such Subsidiary Guarantor, as the
case may be, shall furnish to the Trustee:

               (i) an Officers’ Certificate in form and substance reasonably satisfactory to
the Trustee (which shall include the statements set forth in Section 13.05 hereof)
stating that, in the opinion of the signers, all conditions precedent and covenants,
if any, provided for in this Indenture relating to the proposed action have been
satisfied; and

               (ii) an Opinion of Counsel in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 13.05 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

          Section 13.05 Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to Section 4.04 hereof or Trust
Indenture Act Section 314(a)(4)) shall comply with the provisions of Trust Indenture Act Section
314(e) and shall include:

               (a) a statement that the Person making such certificate or opinion has read such covenant or
condition;

               (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

               (c) a statement that, in the opinion of such Person, he or she has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with (and, in the case of an Opinion of Counsel, may
be limited to reliance on an Officers’ Certificate as to matters of fact); and

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               (d) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

          Section 13.06 Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

          Section 13.07 No Personal Liability of Incorporators, Shareholders, Officers, Directors or
Employees.

          No recourse for the payment of the principal of, premium, if any, or interest on any of the
Notes, or for any claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company or any Subsidiary Guarantor in this
Indenture or in any of the Notes or because of the creation of any Indebtedness represented
thereby, shall be had against any incorporator, shareholder, officer, director, employee or
controlling person of the Company, any Subsidiary Guarantor or any successor Person thereof. Each
Holder, by accepting such Notes waives and releases all such liability.

          Section 13.08 Governing Law.

          THIS INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES WILL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

          Section 13.09 Waiver of Jury Trial.

          EACH OF THE COMPANY, THE SUBSIDIARY GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

          Section 13.10 Force Majeure.

          In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations under this Indenture arising out of or caused by, directly or
indirectly, forces beyond its reasonable control, including without limitation strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software or hardware) services.

          Section 13.11 No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Restricted Subsidiaries or of any other Person. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

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          Section 13.12 Successors.

          All agreements of the Company in this Indenture and the Notes shall bind its successors. All
agreements of the Trustee in this Indenture shall bind its successors. All agreements of each
Subsidiary Guarantor in this Indenture shall bind its successors, except as otherwise provided in
Section 11.04 hereof.

          Section 13.13 Severability.

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

          Section 13.14 Counterpart Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

          Section 13.15 Table of Contents, Headings, etc.

          The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

          Section 13.16 Qualification of Indenture.

          The Company and the Subsidiary Guarantors shall qualify this Indenture under the Trust
Indenture Act in accordance with the terms and conditions of the Registration Rights Agreement and
shall pay all reasonable costs and expenses (including attorneys’ fees and expenses for the
Company, the Subsidiary Guarantors and the Trustee) incurred in connection therewith, including,
but not limited to, costs and expenses of qualification of this Indenture and the Notes and
printing this Indenture and the Notes. The Trustee shall be entitled to receive from the Company
and the Subsidiary Guarantors any such Officers’ Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such qualification of this
Indenture under the Trust Indenture Act.

[Signature pages follow]

109

 

          IN WITNESS WHEREOF, the parties have executed this Indenture as of the date first written
above.

	 	 	 	 	 
	 	BEAZER HOMES USA, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	APRIL CORPORATION

BEAZER ALLIED COMPANIES
HOLDINGS, INC.

BEAZER GENERAL SERVICES, INC.

BEAZER HOMES CORP.

BEAZER HOMES HOLDINGS CORP.

BEAZER HOMES INDIANA HOLDINGS
CORP.

BEAZER HOMES SALES, INC.

BEAZER HOMES TEXAS HOLDINGS,
INC.

BEAZER REALTY CORP.

BEAZER REALTY, INC.

BEAZER REALTY LOS ANGELES, INC.

BEAZER REALTY SACRAMENTO, INC.

BEAZER/SQUIRES REALTY, INC.

HOMEBUILDERS TITLE SERVICES OF
VIRGINIA, INC.

HOMEBUILDERS TITLE SERVICES,
INC.
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	BEAZER MORTGAGE CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER HOMES INDIANA LLP

 	 
	 	By:  	BEAZER HOMES INVESTMENTS, LLC,
 	 
	 	 	its Managing Partner 	 
	 	 	 
	 	By:  	                                                       BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ARDEN PARK VENTURES, LLC

BEAZER CLARKSBURG, LLC

BEAZER COMMERCIAL HOLDINGS, LLC

DOVE BARRINGTON DEVELOPMENT LLC

BEAZER HOMES INVESTMENTS, LLC

BEAZER HOMES MICHIGAN, LLC

ELYSIAN HEIGHTS POTOMIA, LLC
 	 
	 	 	 
	 	By:  	                                            BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	BEAZER HOMES TEXAS, L.P.

 	 
	 	By:  	BEAZER HOMES TEXAS HOLDINGS, INC.,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER REALTY SERVICES, LLC 

 	 
	 	By:  	BEAZER HOMES INVESTMENTS, LLC,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By:  	
BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER SPE, LLC

 	 
	 	By:  	BEAZER HOMES HOLDINGS CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	BH BUILDING PRODUCTS, LP

 	 
	 	By:  	BH PROCUREMENT SERVICES, LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	
BEAZER HOMES TEXAS, L.P.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By:  	                       BEAZER HOMES TEXAS HOLDINGS, INC.,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BH PROCUREMENT SERVICES, LLC

 	 
	 	By:  	BEAZER HOMES TEXAS, L.P.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By:  	                                                     BEAZER HOMES TEXAS HOLDINGS, INC.,
 	 
	 	 	its General Partner 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	PARAGON TITLE, LLC

 	 
	 	By:  	BEAZER HOMES INVESTMENTS, LLC,
 	 
	 	 	its Sole Member and Manager 	 
	 	 	 
	 	By:  	
BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TEXAS LONE STAR TITLE, L.P.

 	 
	 	By:  	BEAZER HOMES TEXAS HOLDINGS, INC.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TRINITY HOMES, LLC

 	 
	 	By:  	BEAZER HOMES INVESTMENTS, LLC,
 	 
	 	 	its Member 	 
	 	 	 
	 	By:  	
BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	CLARKSBURG ARORA LLC

 	 
	 	By:  	BEAZER CLARKSBURG, LLC,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	                    BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CLARKSBURG SKYLARK, LLC

 	 
	 	By:  	CLARKSBURG ARORA LLC,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	                   BEAZER CLARKSBURG, LLC,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	                   BEAZER HOMES CORP.,
 	 
	 	 	its Sole Member 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

as Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

	 	 	 	 	 
	 	WILMINGTON TRUST FSB,

as Notes Collateral Agent

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Indenture

 

 

SCHEDULE I

Subsidiary Guarantors

Beazer General Services, Inc.

Beazer Homes Corp.

Beazer/Squires Realty, Inc.

Beazer Homes Sales, Inc.

Beazer Homes Investments, LLC

Beazer Realty Corp.

Beazer Homes Holdings Corp.

Beazer Homes Indiana Holdings Corp.

Beazer Homes Texas Holdings, Inc.

Beazer Homes Texas, L.P.

Beazer Homes Indiana LLP

April Corporation

Beazer SPE, LLC

Beazer Realty, Inc.

Beazer Realty Services, LLC

Beazer Realty Los Angeles, Inc.

Beazer Realty Sacramento, Inc.

BH Building Products, LP

BH Procurement Services, LLC

Homebuilders Title Services of Virginia, Inc.

Homebuilders Title Services, Inc.

Texas Lone Star Title, L.P.

Beazer Allied Companies Holdings, Inc.

Paragon Title, LLC

Trinity Homes, LLC

Beazer Commercial Holdings, LLC

Beazer Clarksburg, LLC

Arden Park Ventures, LLC

Beazer Mortgage Corporation

Beazer Homes Michigan, LLC

Dove Barrington Development LLC

Clarksburg Arora LLC

Clarksburg Skylark, LLC

Elysian Heights Potomia, LLC

 

 

EXHIBIT A

[Face of Note]

          [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

          [Insert the Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

          [Insert the Regulation S Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

          [Insert the OID Legend, if applicable pursuant to the provisions of the Indenture]

A-1-1

 

CUSIP [                  ]

ISIN [                  ]1

[RULE 144A][REGULATION S] GLOBAL NOTE

representing up to

$[                    ]

12% Senior Secured Notes due 2017

			
	 	 	 
	No. ___
	 	[$                    ]

BEAZER HOMES USA, INC.

          promises to pay to CEDE & CO. or registered assigns, the principal sum [set forth on the
Schedule of Exchanges of Interests in the Global Note attached hereto] [of                                         
United States Dollars] on October 15, 2017.

Interest Payment Dates: April 15 and October 15

Record Dates: April 1 and October 1

 

			
	1	 	Rule 144A Note CUSIP: 07556Q AR6
	 
	 	 	Rule 144A Note ISIN: US07556QAR65
	 
	 	 	Regulation S Note CUSIP: U0758T AF4
	 
	 	 	Regulation S Note ISIN: USU0758TAF40

A-1-2

 

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

Dated:

	 	 	 	 	 
	 	BEAZER HOMES USA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-3

 

	 	 	 	 	 

This is one of the Notes referred to in the within-mentioned Indenture:

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-1-4

 

	 	 	 	 	 

[Back of the Note]

12% Senior Secured Notes due 2017

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

	 	1.	 	INTEREST. Beazer Homes USA, Inc., a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this
Note at 12% per annum from September 11, 2009 until maturity. The Company will
pay interest, semi-annually in arrears on April 15 and October 15 of each year,
or if any such day is not a Business Day, on the next succeeding Business Day
(each, an “Interest Payment Date”). Interest on the Notes will accrue
from the most recent date to which interest has been paid or, if no interest
has been paid, from the date of issuance; provided that the first
Interest Payment Date shall be April 15, 2010. Interest will be computed on
the basis of a 360-day year of twelve 30-day months. The Company will pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at the interest rate on the Notes to the extent lawful; it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest from time to time on demand
at the interest rate on the Notes to the extent lawful.
	 
	 	2.	 	METHOD OF PAYMENT. The Company will pay interest on the Notes
to the Persons who are registered Holders of Notes at the close of business on
the April 1 or October 1 (whether or not a Business Day), as the case may be,
next preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted interest.
At the option of the Company, payment of interest may be made by check mailed
to the Holders at their addresses set forth in the register of Holders,
provided that payments of principal, premium, if any, and interest with
respect to Notes represented by one or more permanent global notes registered
in the name of or held by DTC or its nominee will be made by wire transfer of
immediately available funds to the accounts specified by the Holder or Holders
thereof. Such payment shall be in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and
private debts.
	 
	 	3.	 	PAYING AGENT AND REGISTRAR. Initially, U.S. Bank National
Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice
to the Holders. The Company or any of its Subsidiaries may act in any such
capacity.

A-1-5

 

	 	4.	 	INDENTURE. The Company issued the Notes under an Indenture,
dated as of September 11, 2009 (the “Indenture”), among Beazer Homes
USA, Inc., the Subsidiary Guarantors named therein, the Trustee and Wilmington
Trust FSB, as Notes Collateral Agent. The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939, as amended (the “Trust Indenture
Act”). The Notes are subject to all such terms, and Holders are referred
to the Indenture and such Act for a statement of such terms. To the extent any
provision of this Note conflicts with the express provisions of the Indenture,
the provisions of the Indenture shall govern and be controlling.
	 
	 	5.	 	OPTIONAL REDEMPTION.

	 	(a)	 	Prior to October 15, 2012, the Company may, at
its option, redeem the Notes, in whole or in part, at a redemption
price equal to 100% of the principal amount of the Notes to be redeemed
plus the Applicable Premium as of, and accrued and unpaid interest to,
the redemption date (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment
date). Notice of such redemption must be mailed by first class mail to
each Holder’s registered address, not less than 30 nor more than 60
days prior to the redemption date.
	 
	 	(b)	 	The Company may redeem all or any portion of
the Notes at any time and from time to time on or after October 15,
2012 and prior to maturity at the following redemption prices
(expressed in percentages of the principal amount thereof) together, in
each case, with accrued and unpaid interest to the date fixed for
redemption, if redeemed during the 12-month period beginning on October
15 of each year indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2012
	 	 	106.000	%
	2013
	 	 	104.000	%
	2014
	 	 	102.000	%
	2015 and thereafter
	 	 	100.000	%

	 	(c)	 	In addition, on or prior to October 15, 2012,
the Company may, at its option, redeem up to 35% of the aggregate
principal amount of Notes issued under the Indenture with the net
proceeds of an Equity Offering at 112% of the principal amount thereof
plus accrued and unpaid interest, if any, to the date fixed for
redemption; provided, that at least 65% of the aggregate
principal amount of the Notes originally issued under the Indenture
remain outstanding after such redemption. Notice of any such
redemption

A-1-6

 

	 	 	 	must be given within 60 days after the date of the closing
of the relevant Equity Offering.
	 
	 	(d)	 	If the Company redeems less than all of the
outstanding Notes, the Trustee shall select the Notes to be redeemed in
the manner described under Section 3.02 of the Indenture.
	 
	 	(e)	 	Any redemption pursuant to this paragraph 5
shall be made pursuant to the provisions of Sections 3.01 through 3.06
of the Indenture.

	 	6.	 	MANDATORY REDEMPTION. The Company shall be required to make
mandatory redemption as set forth under Sections 4.08 and 4.13 of the
Indenture, but shall not otherwise be required to make mandatory redemption or
sinking fund payments with respect to the Notes.
	 
	 	7.	 	NOTICE OF REDEMPTION. Subject to Section 3.03 of the
Indenture, notice of redemption will be mailed by first-class mail at least 30
days (unless pursuant to Section 3.02 hereof, then at least 15 days) but not
more than 60 days before the redemption date (except that redemption notices
may be mailed more than 60 days prior to a redemption date if the notice is
issued in connection with Article 7 or Article 10 of the Indenture) to each
Holder whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $2,000 may be redeemed in part but only in whole
multiples of $1,000 in excess thereof, unless all of the Notes held by a Holder
are to be redeemed. On and after the redemption date interest ceases to accrue
on Notes or portions thereof called for redemption.
	 
	 	8.	 	OFFERS TO REPURCHASE. The Company shall be required to make
offers to repurchase as set forth under Sections 4.08 and 4.13 of the
Indenture.
	 
	 	9.	 	DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered
form without coupons in denominations of $2,000 and integral multiples of
$1,000 in excess thereof. The transfer of Notes may be registered and may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Notes or portion of the Notes selected
for redemption, except for the unredeemed portion of any Notes being redeemed
in part. Also, the Company need not exchange or register the transfer of any
Notes for a period of 15 days before a selection of Notes to be redeemed.

A-1-7

 

	 	10.	 	PERSONS DEEMED OWNERS. The registered Holder of a Notes may be
treated as its owner for all purposes.
	 
	 	11.	 	AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the
Subsidiary Guarantees or the Notes may be amended or supplemented as provided
in the Indenture.
	 
	 	12.	 	DEFAULTS AND REMEDIES. The Events of Default relating to the
Notes are defined in Section 5.01 of the Indenture. If an Event of Default
(other than an Event of Default specified in Sections 5.01(a)(vii) and (viii)
of the Indenture) shall have occurred and be continuing under the Indenture,
the Trustee by notice to the Company, or the Holders of at least 25% in
principal amount of the Notes then outstanding by notice to the Company and the
Trustee, may declare all Notes to be due and payable immediately. Upon such
declaration of acceleration, the amounts due and payable on the Notes, as
determined pursuant to the provisions of the Section 5.02 of the Indenture,
will be due and payable immediately. If an Event of Default with respect to the
Company specified in Section 5.01(a)(vii) and (viii) occurs, such an amount
will ipso facto become and be immediately due and payable without any
declaration, notice or other act on the part of the Trustee and the Company or
any Holder. The Holders of a majority in principal amount of the Notes then
outstanding by written notice to the Trustee may waive such Default or Event of
Default (other than any Default or Event of Default in payment of principal or
interest) on the Notes under the Indenture. Holders of a majority in principal
amount of the then outstanding Notes may rescind an acceleration and its
consequence (except an acceleration due to nonpayment of principal or interest
on the Notes) if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived. Upon such
waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of the
Indenture, but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon. The Company shall deliver to the
Trustee a quarterly statement regarding compliance with the Indenture, and
include in such statement, if any Officer of the Company is aware of any
Default or Event of Default, a statement specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.
	 
	 	13.	 	AUTHENTICATION. This Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose until
authenticated by the manual or facsimile signature of the Trustee.
	 
	 	14.	 	ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of

A-1-8

 

	 	 	 	Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the Registration Rights
Agreement, dated as of September 11, 2009 among Beazer Homes USA, Inc., the
Subsidiary Guarantors named therein and the other parties named on the
signature pages thereof (the “Registration Rights Agreement”).
	 
	 	15.	 	GOVERNING LAW. THE INDENTURE, THE NOTES AND ANY SUBSIDIARY
GUARANTEE WILL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
	 
	 	16.	 	CUSIP/ISIN NUMBERS. Pursuant to a recommendation promulgated
by the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP/ISIN numbers to be printed on the Notes and the Trustee may use
CUSIP/ISIN numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to the Company at the
following address:

c/o Beazer Homes USA, Inc.

1000 Abernathy Road, Suite 1200

Atlanta, Georgia 30328

Fax No.: (770) 481-2808

Attention: Kenneth F. Khoury

A-1-9

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 

	 

	 	(Insert assignee’s legal name)

 
(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

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

and irrevocably appoint 

to transfer this Note on the books of the Company. The agent may substitute another to act for him.

Date:                     

	 	 	 
	Your Signature:
	 	 
	 

	 	 

	 

	 	(Sign exactly as your name appears on
	 

	 	the face of this Note)

Signature Guarantee*: 
                                                            

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-1-10

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by the Company pursuant to Section 4.08 or
4.13 of the Indenture, check the appropriate box below:

o Section 4.08     o Section 4.13

          If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.08 or Section 4.13 of the Indenture, state the amount you elect to have purchased:

$                    

Date:                     

	 	 	 
	Your Signature:
	 	 
	 

	 	 

	 

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

	 	 	 
	Tax Identification No.:
	 	 
	 

	 	 

Signature Guarantee*: 
                    
                                        

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-1-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

          The initial outstanding principal amount of this Global Note is $                    . The following
exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive
Note, or exchanges of a part of another Global or Definitive Note for an interest in this Global
Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of increase	 	Principal Amount of	 	Signature of
	 	 	Amount of decrease	 	in Principal	 	this Global Note	 	authorized officer
	 	 	in Principal Amount	 	Amount of this	 	following such	 	of Trustee or
	Date of Exchange	 	of this Global Note	 	Global Note	 	decrease or increase	 	Custodian
	 	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-1-12

 

[FORM OF NOTATION ON NOTE RELATING TO GUARANTEE]

GUARANTEE

          April Corporation, Arden Park Ventures, LLC, Beazer Allied Companies Holdings, Inc., Beazer
Clarksburg, LLC, Beazer Commercial Holdings, LLC, Beazer General Services, Inc., Beazer Homes
Corp., Beazer Homes Holdings Corp., Beazer Homes Indiana Holdings Corp., Beazer Homes Indiana LLP,
Beazer Homes Investments, LLC, Beazer Homes Michigan, LLC, Beazer Homes Sales, Inc., Beazer Homes
Texas Holdings, Inc., Beazer Homes Texas, L.P., Beazer Mortgage Corporation, Beazer Realty Corp.,
Beazer Realty, Inc., Beazer Realty Los Angeles, Inc., Beazer Realty Sacramento, Inc., Beazer Realty
Services, LLC, Beazer SPE, LLC, Beazer/Squires Realty, Inc., BH Building Products, LP, BH
Procurement Services, LLC, Clarksburg Arora LLC, Clarksburg Skylark, LLC, Dove Barrington
Development LLC, Elysian Heights Potomia, LLC, Homebuilders Title Services of Virginia, Inc.,
Homebuilders Title Services, Inc., Paragon Title, LLC, Texas Lone Star Title, L.P. and Trinity
Homes, LLC (the “Subsidiary Guarantors”) have unconditionally guaranteed, jointly and severally
(such guarantee by each Subsidiary Guarantor being referred to herein as the “Subsidiary
Guarantee”), that (i) the principal of, premium, if any, and interest on the Notes will be duly and
punctually paid in full when due, whether at maturity, by acceleration or otherwise, and interest
on the overdue principal and (to the extent permitted by law) interest, if any, on the Notes and
all other obligations of the Company to the Holders or the Trustee all in accordance with the terms
set forth under Article 11 of the Indenture, and (ii) in case of any extension of time of payment
or renewal of any Notes, that the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at maturity, by acceleration or
otherwise.

          No recourse for the payment of the principal of, premium, if any, or interest on any of the
Notes, or for any claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company or any Subsidiary Guarantor in this
Subsidiary Guarantee, the Indenture or any of the Notes or because of the creation of any
Indebtedness represented thereby, shall be had against any incorporator, shareholder, officer,
director, employee or controlling person of any Subsidiary Guarantor or any successor Person
thereof. Each Holder, by accepting such Notes waives and releases all such liability.

          Each holder of a Note by accepting a Note agrees that any Subsidiary Guarantor named below
shall have no further liability with respect to its Subsidiary Guarantee if such Subsidiary
Guarantor otherwise ceases to be liable in respect of its Subsidiary Guarantee in accordance with
the terms of the Indenture. The Obligations of each Guarantor under its Note Guarantee shall be
limited to the extent necessary to insure that it does not constitute a fraudulent conveyance under
applicable law.

A-1-13

 

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

	 	 	 	 	 
	 	APRIL CORPORATION

BEAZER ALLIED COMPANIES HOLDINGS, INC.

BEAZER GENERAL SERVICES, INC.

BEAZER HOMES CORP.

BEAZER HOMES HOLDINGS CORP.

BEAZER HOMES INDIANA HOLDINGS CORP.

BEAZER HOMES SALES, INC.

BEAZER HOMES TEXAS HOLDINGS, INC.

BEAZER REALTY CORP.

BEAZER REALTY, INC.

BEAZER REALTY LOS ANGELES, INC.

BEAZER REALTY SACRAMENTO, INC.

BEAZER/SQUIRES REALTY, INC.

HOMEBUILDERS TITLE SERVICES OF VIRGINIA, INC.

HOMEBUILDERS TITLE SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-14

 

	 	 	 	 	 

	 	 	 	 	 
	 	BEAZER MORTGAGE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER HOMES INDIANA LLP

By: BEAZER HOMES INVESTMENTS, LLC,

       its Managing Partner

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ARDEN PARK VENTURES, LLC

BEAZER CLARKSBURG, LLC

BEAZER COMMERCIAL HOLDINGS, LLC

DOVE BARRINGTON DEVELOPMENT LLC

BEAZER HOMES INVESTMENTS, LLC

BEAZER HOMES MICHIGAN, LLC

ELYSIAN HEIGHTS POTOMIA, LLC

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-15

 

	 	 	 	 	 
	 	BEAZER HOMES TEXAS, L.P.

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER REALTY SERVICES, LLC

By: BEAZER HOMES INVESTMENTS, LLC,

       its Sole Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER SPE, LLC

By: BEAZER HOMES HOLDINGS CORP., 

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-16

 

	 	 	 	 	 

	 	 	 	 	 
	 	BH BUILDING PRODUCTS, LP

By: BH PROCUREMENT SERVICES, LLC,

       its General Partner

By: BEAZER HOMES TEXAS, L.P.,

       its Sole Member

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BH PROCUREMENT SERVICES, LLC

By: BEAZER HOMES TEXAS, L.P.,

       its Sole Member

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-17

 

	 	 	 	 	 
	 	PARAGON TITLE, LLC

By: BEAZER HOMES INVESTMENTS, LLC,

       its Sole Member and Manager

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TEXAS LONE STAR TITLE, L.P.

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TRINITY HOMES, LLC

By: BEAZER HOMES INVESTMENTS, LLC,

       its Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-18

 

	 	 	 	 	 
	 	CLARKSBURG ARORA LLC

By: BEAZER CLARKSBURG, LLC,

       its Sole Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CLARKSBURG SKYLARK, LLC

By: CLARKSBURG ARORA LLC,

       its Sole Member

By: BEAZER CLARKSBURG, LLC,

       its Sole Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-1-19

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Beazer Homes USA, Inc.

1000 Abernathy Road, Suite 1200

Atlanta, Georgia 30328

Fax No.: (770) 481-2808

Attention: Kenneth F. Koury

U.S. Bank National Association

Corporate Trust Services

1349 West Peachtree Street NW

Suite 1050

Atlanta, Georgia 30309

Fax No.: (404) 898-8844

Attention: Beazer 12% Notes (2009 Indenture)

          Re: 12% Senior Secured Notes due 2017

          Reference is hereby made to the Indenture, dated as of September 11, 2009 (the
“Indenture”), among Beazer Homes USA, Inc., the Subsidiary Guarantors named therein, the
Trustee and the Notes Collateral Agent. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

                               (the “Transferor”) owns and proposes to transfer the Note[s] or
interest in such Note[s] specified in Annex A hereto, in the principal amount of $                     in
such Note[s] or interests (the “Transfer”), to                      (the “Transferee”),
as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

          1. o CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE 144A GLOBAL
NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The Transfer is being effected pursuant to and in
accordance with Rule 144A under the United States Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and such Transfer is in compliance
with any applicable blue sky securities laws of any state of the United States.

B-1

 

          2. o CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE REGULATION S
GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S. The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the
Transferor hereby further certifies that (i) the Transfer is not being made to a person in the
United States and (x) at the time the buy order was originated, the Transferee was outside the
United States or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and neither such Transferor
nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in contravention of the requirements
of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is
not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv)
if the proposed transfer is being made prior to the expiration of the Restricted Period, the
transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other
than an Initial Purchaser). Upon consummation of the proposed transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to
the restrictions on Transfer enumerated in the Indenture and the Securities Act.

          3. o CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION
S. The Transfer is being effected in compliance with the transfer restrictions applicable to
beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and
in accordance with the Securities Act and any applicable blue sky securities laws of any state of
the United States, and accordingly the Transferor hereby further certifies that (check one):

	 	(a)	 	o such Transfer is being effected pursuant
to and in accordance with Rule 144 under the Securities Act;

          or

	 	(b)	 	o such Transfer is being effected to the
Company or a subsidiary thereof;

          or

	 	(c)	 	o such Transfer is being effected pursuant
to an effective registration statement under the Securities Act and in
compliance with the prospectus delivery requirements of the Securities
Act.

          4. o CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN UNRESTRICTED
GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

B-2

 

	 	(a)	 	o CHECK IF TRANSFER IS PURSUANT TO RULE 144.
(i) The Transfer is being effected pursuant to and in accordance with
Rule 144 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Global Notes, on Restricted Definitive Notes
and in the Indenture.
	 
	 	(b)	 	o CHECK IF TRANSFER IS PURSUANT TO
REGULATION S. (i) The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Global Notes, on Restricted Definitive Notes
and in the Indenture.
	 
	 	(c)	 	o CHECK IF TRANSFER IS PURSUANT TO OTHER
EXEMPTION. (i) The Transfer is being effected pursuant to and in
compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in
compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any State of the United
States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the
restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Global Notes or Restricted Definitive Notes
and in the Indenture.

B-3

 

          This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 
	 	[Insert Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:                                         

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

     1. The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 	(a)	 	o a beneficial interest in the:

	 	(i)	 	o 144A Global Note (CUSIP 07556Q AR6), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP U0758T AF4), or

	 	(b)	 	o a Restricted Definitive Note.
	 
	 	2.	 	After the Transfer the Transferee will hold:

[CHECK ONE]

	 	(a)	 	o a beneficial interest in the:

	 	(i)	 	o 144A Global Note (CUSIP 07556Q AR6), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP U0758T AF4), or
	 
	 	(iii)	 	o Unrestricted Global Note (CUSIP 07556Q AS4); or

	 	(b)	 	o a Restricted Definitive Note; or
	 
	 	(c)	 	o an Unrestricted
Definitive Note,

in accordance with the terms of the Indenture.

B-5

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Beazer Homes USA, Inc.

1000 Abernathy Road, Suite 1200

Atlanta, Georgia 30328

Fax No.: (770) 481-2808

Attention: Kenneth F. Khoury

U.S. Bank National Association

Corporate Trust Services

1349 West Peachtree Street NW

Suite 1050

Atlanta, Georgia 30309

Fax No.: (404) 898-8844

Attention: Beazer 12% Notes (2009 Indenture)

          Re: 12% Senior Secured Notes due 2017

          Reference is hereby made to the Indenture, dated as of September 11, 2009 (the
“Indenture”), among Beazer Homes USA, Inc., the Subsidiary Guarantors named therein, the
Trustee and the Notes Collateral Agent. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

                               (the “Owner”) owns and proposes to exchange the Note[s] or interest in
such Note[s] specified herein, in the principal amount of $                     in such Note[s] or interests
(the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

          1) EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE
FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL NOTE

     a) o CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL
NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
Exchange of the Owner’s beneficial interest in a Restricted Global Note for a
beneficial interest in an Unrestricted Global Note in an equal principal amount, the
Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Global Notes and pursuant to and in
accordance with the United States Securities Act of 1933, as amended (the
“Securities Act”), (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest in an
Unrestricted Global

C-1

 

Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

     b) o CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL
NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the Exchange of the
Owner’s beneficial interest in a Restricted Global Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Definitive Note is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted
Global Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act and (iv)
the Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     c) o CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the Owner’s Exchange of
a Restricted Definitive Note for a beneficial interest in an Unrestricted Global
Note, the Owner hereby certifies (i) the beneficial interest is being acquired for
the Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Definitive Notes
and pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     d) o CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO UNRESTRICTED
DEFINITIVE NOTE. In connection with the Owner’s Exchange of a Restricted Definitive
Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Unrestricted Definitive Note is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Unrestricted Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

          2) EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES
FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES

C-2

 

     a) o CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL
NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Definitive Note
with an equal principal amount, the Owner hereby certifies that the Restricted
Definitive Note is being acquired for the Owner’s own account without transfer.
Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Definitive Note and in the Indenture and the Securities Act.

     b) o CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange of the
Owner’s Restricted Definitive Note for a beneficial interest in
the [CHECK ONE] o
 144A Global Note o Regulation S Global Note, with an equal principal amount,
the Owner hereby certifies (i) the beneficial interest is being acquired for the
Owner’s own account without transfer and (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Restricted Global Notes
and pursuant to and in accordance with the Securities Act, and in compliance with
any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the Indenture,
the beneficial interest issued will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the relevant Restricted Global
Note and in the Indenture and the Securities Act.

          This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and are dated                                         .

	 	 	 	 	 
	 	[Insert Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:                                         

C-3

 

EXHIBIT D

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

          Supplemental Indenture (this “Supplemental Indenture”), dated as of                     , among
                                         (the “Guaranteeing Subsidiary”), a subsidiary of Beazer Homes USA, Inc.,
a Delaware Corporation (the “Company”), and U.S. Bank National Association, as trustee (the
“Trustee”).

WITNESSETH

          WHEREAS, each of Beazer Homes USA, Inc. and the Subsidiary Guarantors (as defined in the
Indenture referred to below) has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of September 11, 2009, providing for the issuance of an unlimited
aggregate principal amount of 12% Senior Secured Notes due 2017 (the “Notes”);

          WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (the
“Guarantee”); and

          WHEREAS, pursuant to Section 8.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree
for the equal and ratable benefit of the Holders of the Notes as follows:

          (1) Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

          (2) Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Guarantees and
in the Indenture including but not limited to Article XII thereof, and subject to the limitation
therein.

          (3) Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

          (4) Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

          (5) Effect of Headings. The headings of the Sections of this Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered a part of

D-1

 

this Supplemental Indenture and shall in no way modify or restrict any of the terms or
provisions hereof.

          (6) The Trustee. The Trustee shall not be responsible for and makes no representation
as to the validity or adequacy of this Supplemental Indenture.

          (7) Benefits Acknowledged. The Guaranteeing Subsidiary’s Guarantee is subject to the
terms and conditions set forth in the Indenture. The Guaranteeing Subsidiary acknowledges that it
will receive direct and indirect benefits from the financing arrangements contemplated by the
Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to
this Guarantee are knowingly made in contemplation of such benefits.

          (8) Successors. All agreements of the Guaranteeing Subsidiary in this Supplemental
Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.
All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

D-2

 

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

	 	 	 	 	 
	 	[GUARANTEEING SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

D-3EX-4.3

Exhibit 4.3

     Execution Version

 

 

REGISTRATION RIGHTS AGREEMENT

Dated as of September 11, 2009

By and Among

BEAZER HOMES USA, INC.,

as Issuer,

the GUARANTORS named herein

and

CITIGROUP GLOBAL MARKETS INC.,

as Representative of the Initial Purchasers

12% Senior Secured Notes due 2017

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 
	 	 	 	 	Page
	Section 1.
	 	Definitions	 	 	1
	Section 2.
	 	Exchange Offer	 	 	5
	Section 3.
	 	Shelf Registration	 	 	9
	Section 4.
	 	Liquidated Damages	 	 	10
	Section 5.
	 	Registration Procedures	 	 	11
	Section 6.
	 	Registration Expenses	 	 	21
	Section 7.
	 	Indemnification	 	 	22
	Section 8.
	 	Rules 144 and 144A	 	 	25
	Section 9.
	 	Underwritten Registrations	 	 	25
	Section 10.
	 	Miscellaneous	 	 	26

i

 

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (this “Agreement”) is dated as of September 11,
2009, by and among Beazer Homes USA, Inc., a Delaware corporation (the “Company”), and each
of the Guarantors (as defined herein) (the Company and the Guarantors are referred to collectively
herein as the “Issuers”), on the one hand, and Citigroup Global Markets Inc., for itself
and as representative (the “Representative”) of the Initial Purchasers (as defined herein),
on the other hand.

          This Agreement is entered into in connection with the Purchase Agreement, dated as of
September 3, 2009, by and among the Issuers and the Representative (the “Purchase
Agreement”), relating to the offering and sale of $250,000,000 aggregate principal amount of
the Company’s 12% Senior Secured Notes due 2017 (including the guarantees thereof by the
Guarantors, the “Notes”) to the Initial Purchasers. The execution and delivery of this
Agreement is a condition to the Initial Purchasers’ obligations to purchase the Notes under the
Purchase Agreement.

          The parties hereby agree as follows:

          Section 1. Definitions

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

          “action” shall have the meaning set forth in Section 7(c) hereof.

          “Additional Interest” shall have the meaning set forth in Section 4(a) hereof.

          “Advice” shall have the meaning set forth in Section 5 hereof.

          “Agreement” shall have the meaning set forth in the first introductory paragraph
hereto.

          “Applicable Period” shall have the meaning set forth in Section 2(b) hereof.

          “Board of Directors” shall have the meaning set forth in Section 5 hereof.

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

 

 

          “Commission” shall mean the Securities and Exchange Commission.

          “Company” shall have the meaning set forth in the introductory paragraph hereto and
shall also include the Company’s permitted successors and assigns.

          “day” shall mean a calendar day.

          “Delay Period” shall have the meaning set forth in Section 5 hereof.

          “Effectiveness Period” shall have the meaning set forth in the second paragraph of
Section 3(a) hereof.

          “Event Date” shall have the meaning set forth in Section 4(b) hereof.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.

          “Exchange Notes” shall have the meaning set forth in Section 2(a) hereof.

          “Exchange Offer” shall have the meaning set forth in Section 2(a) hereof.

          “Exchange Offer Registration Statement” shall have the meaning set forth in Section
2(a) hereof.

          “FINRA” shall have the meaning set forth in Section 5(u) hereof.

          “Guarantors” means each of the Persons executing this Agreement on the date hereof
listed on Schedule I and each Person who executes and delivers a counterpart of this Agreement
hereafter pursuant to Section 10(e) hereof.

          “Holder” shall mean any holder of a Registrable Note or Registrable Notes.

          “Indenture” shall mean the Indenture, dated as of September 11, 2009, as amended or
supplemented from time to time in accordance with the terms thereof, by and among the Company, the
Guarantors, U.S. Bank National Association, as trustee, and Wilmington Trust FSB, as collateral
agent.

2

 

          “Initial Purchasers” shall mean Citigroup Global Markets Inc. and Moelis & Company
LLC.

          “Initial Shelf Registration Statement” shall have the meaning set forth in Section
3(a) hereof.

          “Inspectors” shall have the meaning set forth in Section 5(p) hereof.

          “Issue Date” shall mean September 11, 2009, the date of original issuance of the
Notes.

          “Issuers” shall have the meaning set forth in the introductory paragraph hereto.

          “Legal Holiday” shall mean a Saturday, a Sunday or a day on which banking institutions
in New York, New York are authorized or required by law, regulation or executive order to remain
closed.

          “Liquidated Damages” shall have the meaning set forth in Section 4(a) hereof.

          “Losses” shall have the meaning set forth in Section 7(a) hereof.

          “Notes” shall have the meaning set forth in the second introductory paragraph hereto.

          “Participant” shall have the meaning set forth in Section 7(a) hereof.

          “Participating Broker-Dealer” shall have the meaning set forth in Section 2(b) hereof.

          “Person” shall mean an individual, corporation, partnership, joint venture
association, joint stock company, trust, unincorporated limited liability company, government or
any agency or political subdivision thereof or any other entity.

          “Private Exchange” shall have the meaning set forth in Section 2(b) hereof.

          “Private Exchange Notes” shall have the meaning set forth in Section 2(b) hereof.

3

 

          “Prospectus” shall mean the prospectus included in any Registration Statement
(including, without limitation, any prospectus subject to completion and a prospectus that includes
any information previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all exhibits thereto and material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

          “Purchase Agreement” shall have the meaning set forth in the second introductory
paragraph hereof.

          “Records” shall have the meaning set forth in Section 5(r) hereof.

          “Registrable Notes” shall mean each Note upon its original issuance and at all times
subsequent thereto, each Exchange Note as to which Section 2(c)(iv) hereof is applicable upon
original issuance and at all times subsequent thereto and each Private Exchange Note upon original
issuance thereof and at all times subsequent thereto, in each case until (i) a Registration
Statement (other than, with respect to any Exchange Note as to which Section 2(c)(iv) hereof is
applicable, the Exchange Offer Registration Statement) covering such Note, Exchange Note or Private
Exchange Note has been declared effective by the Commission and such Note, Exchange Note or such
Private Exchange Note, as the case may be, has been disposed of in accordance with such effective
Registration Statement, (ii) such Note has been exchanged pursuant to the Exchange Offer for an
Exchange Note or Exchange Notes that may be resold without restriction under state and federal
securities laws, (iii) such Note, Exchange Note or Private Exchange Note, as the case may be,
ceases to be outstanding for purposes of the Indenture or (iv) such Note, Exchange Note or Private
Exchange Note has been sold in compliance with Rule 144.

          “Registration Default” shall have the meaning set forth in Section 4(a) hereof.

          “Registration Statement” shall mean any appropriate registration statement of the
Issuers covering any of the Registrable Notes filed with the Commission under the Securities Act,
and all amendments and supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “Requesting Participating Broker-Dealer” shall have the meaning set forth in Section
2(b) hereof.

          “Rule 144” shall mean Rule 144 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule (other than Rule 144A) or regulation hereafter
adopted by the Commission providing for offers and sales of securities made in

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compliance therewith resulting in offers and sales by subsequent holders that are not
affiliates of an issuer of such securities being free of the registration and prospectus delivery
requirements of the Securities Act.

          “Rule 144A” shall mean Rule 144A promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144) or regulation hereafter
adopted by the Commission.

          “Rule 415” shall mean Rule 415 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter adopted by the
Commission.

          “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

          “Shelf Filing Event” shall have the meaning set forth in Section 2(c) hereof.

          “Shelf Registration Statement” shall have the meaning set forth in Section 3(b)
hereof.

          “Subsequent Shelf Registration Statement” shall have the meaning set forth in Section
3(b) hereof.

          “TIA” shall mean the Trust Indenture Act of 1939, as amended, and the rules and
regulations of the Commission promulgated thereunder.

          “Trustee” shall mean the trustee under the Indenture and the trustee (if any) under
any indenture governing the Exchange Notes and Private Exchange Notes.

          “underwritten registration or underwritten offering” shall mean a registration in
which securities of the Company are sold to an underwriter for reoffering to the public.

          Section 2. Exchange Offer

          (a) Unless the Exchange Offer would violate applicable law or any applicable interpretation of
the staff of the Commission, the Issuers shall (i) file a Registration Statement (the “Exchange
Offer Registration Statement”) with the Commission on an appropriate registration form with
respect to a registered offer (the “Exchange Offer”) to exchange any and

5

 

all of the Registrable Notes for a like aggregate principal amount of notes (including the
guarantees with respect thereto, the “Exchange Notes”) that are identical in all material
respects to the Notes (except that the Exchange Notes shall not contain terms with respect to
transfer restrictions or Liquidated Damages upon a Registration Default), (ii) use their
commercially reasonable efforts to cause the Exchange Offer Registration Statement to be declared
effective under the Securities Act and (iii) use their commercially reasonable efforts to
consummate the Exchange Offer within 180 days after the Issue Date. Upon the Exchange Offer
Registration Statement being declared effective by the Commission, the Company will offer the
Exchange Notes in exchange for surrender of the Notes. The Company shall keep the Exchange Offer
open for not less than 20 Business Days (or longer if required by applicable law) after the date
notice of the Exchange Offer is mailed to Holders.

          Each Holder that participates in the Exchange Offer will be required to represent to the
Company in writing that (i) any Exchange Notes to be received by it will be acquired in the
ordinary course of its business, (ii) it has no arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of the Exchange Notes in
violation of the provisions of the Securities Act, (iii) it is not an affiliate (as defined in Rule
405 under the Securities Act) of any Issuer or, if it is an affiliate, it will comply with the
registration and prospectus delivery requirements of the Securities Act to the extent applicable,
(iv) if such Holder is not a broker-dealer, it is not engaged in, and does not intend to engage in,
a distribution of Exchange Notes and (v) if such Holder is a broker-dealer that will receive
Exchange Notes for its own account in exchange for Notes that were acquired as a result of
market-making or other trading activities, it will deliver a prospectus in connection with any
re-sale of such Exchange Notes.

          (b) The Company and the Initial Purchasers acknowledge that the staff of the Commission has
taken the position that any broker-dealer that elects to exchange Notes that were acquired by such
broker-dealer for its own account as a result of market-making or other trading activities for
Exchange Notes in the Exchange Offer (a “Participating Broker-Dealer”) may be deemed to be
an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Notes (other than
a resale of an unsold allotment resulting from the original offering of the Notes).

          The Company and the Initial Purchasers also acknowledge that the staff of the Commission has
taken the position that if the Prospectus contained in the Exchange Offer Registration Statement
includes a plan of distribution containing a statement to the above effect and the means by which
Participating Broker-Dealers may resell the Exchange Notes, without naming the Participating
Broker-Dealers or specifying the amount of Exchange Notes owned by them, such Prospectus may be
delivered by Participating Broker-Dealers to satisfy their prospectus delivery obligations under
the Securities Act in connection with resales of Exchange Notes for their own accounts, so long as
the Prospectus otherwise meets the requirements of the Securities Act.

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          In light of the foregoing, if requested by a Participating Broker-Dealer (a “Requesting
Participating Broker-Dealer”), the Issuers agree to use their reasonable best efforts to keep
the Exchange Offer Registration Statement continuously effective for a period of up to 210 days
after the date on which the Exchange Registration Statement is declared effective, or such longer
period if extended pursuant to the penultimate paragraph of Section 5 hereof (such period, the
“Applicable Period”), or such earlier date as all Requesting Participating Broker-Dealers
shall have notified the Company in writing that such Requesting Participating Broker-Dealers have
resold all Exchange Notes acquired in the Exchange Offer. The Company shall include a plan of
distribution in such Exchange Offer Registration Statement that meets the requirements set forth in
the preceding paragraph.

          If, prior to consummation of the Exchange Offer, any Holder holds any Notes acquired by it
that have, or that are reasonably likely to be determined to have, the status of an unsold
allotment in an initial distribution, or if any Holder is not entitled to participate in the
Exchange Offer, the Company upon the request of any such Holder shall simultaneously with the
delivery of the Exchange Notes in the Exchange Offer, issue and deliver to any such Holder, in
exchange (the “Private Exchange”) for such Notes held by any such Holder, a like principal
amount of notes (the “Private Exchange Notes”) of the Company that are identical in all
material respects to the Exchange Notes. The Private Exchange Notes shall be issued pursuant to
the same indenture as the Exchange Notes and bear the same CUSIP number as the Exchange Notes.

          In connection with the Exchange Offer, the Company shall:

     (1) mail or cause to be mailed to each Holder entitled to participate in the Exchange
Offer a copy of the Prospectus forming part of the Exchange Offer Registration Statement,
together with an appropriate letter of transmittal and related documents;

     (2) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York;

     (3) permit Holders to withdraw tendered Notes at any time prior to 5:00 p.m., New York
time, on the last Business Day on which the Exchange Offer shall remain open; and

     (4) otherwise comply in all material respects with all applicable laws, rules and
regulations.

          As soon as practicable after the close of the Exchange Offer and the Private Exchange, if any,
the Company shall:

7

 

     (1) accept for exchange all Notes validly tendered and not validly withdrawn pursuant
to the Exchange Offer and the Private Exchange;

     (2) deliver or cause to be delivered to the Trustee for cancellation in accordance with
Section 5(t) all Notes so accepted for exchange; and

     (3) cause the Trustee to authenticate and deliver promptly to each Holder of Notes,
Exchange Notes or Private Exchange Notes, as the case may be, equal in principal amount to
the Notes of such Holder so accepted for exchange.

          The Exchange Offer and the Private Exchange shall not be subject to any conditions, other than
that (i) the Exchange Offer or Private Exchange, as the case may be, does not violate applicable
law or any applicable interpretation of the staff of the Commission, (ii) no action or proceeding
shall have been instituted or threatened in any court or by any governmental agency which might
materially impair the ability of the Issuers to proceed with the Exchange Offer or the Private
Exchange, and no material adverse development shall have occurred in any existing action or
proceeding with respect to the Issuers and (iii) all governmental approvals shall have been
obtained, which approvals the Issuers (based upon advice of counsel) deem necessary for the
consummation of the Exchange Offer or Private Exchange.

          The Exchange Notes and the Private Exchange Notes shall be issued under (i) the Indenture or
(ii) an indenture identical in all material respects to the Indenture (in either case, with such
changes as are necessary to comply with any requirements of the Commission to effect or maintain
the qualification thereof under the TIA) and which, in either case, has been qualified under the
TIA and shall provide that the Exchange Notes shall not be subject to the transfer restrictions set
forth in the Indenture. The Indenture or such indenture shall provide that the Exchange Notes, the
Private Exchange Notes and the Notes shall vote and consent together on all matters as one class
and that none of the Exchange Notes, the Private Exchange Notes or the Notes will have the right to
vote or consent as a separate class on any matter.

          (c) In the event that (i) any changes in law or the applicable interpretations of the staff of
the Commission do not permit the Issuers to effect the Exchange Offer, (ii) for any reason the
Exchange Offer is not consummated within 180 days of the Issue Date, (iii) any Holder (other than
the Initial Purchasers) is prohibited by law or the applicable interpretations of the staff of the
Commission or is otherwise ineligible from participating in the Exchange Offer, (iv) in the case of
any Holder that participates in the Exchange Offer, such Holder does not receive Exchange Notes on
the date of the exchange that may be sold without restriction under state and federal securities
laws (other than due solely to the status of such holder as an affiliate of any Issuer), (v) the
Initial Purchasers so request with respect to Notes that have, or that are reasonably likely to be
determined to have, the status of unsold allotments in an initial distribution or (vi) any Holder
of Private Exchange Notes so requests (each such event referred to in clauses (i) through (vi) of
this sentence, a “Shelf Filing Event”), then the Issuers shall file a Shelf Registration
Statement pursuant to Section 3 hereof.

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          Section 3. Shelf Registration

          If at any time a Shelf Filing Event shall occur, then:

          (a) Shelf Registration. The Issuers shall file with the Commission a Registration
Statement for an offering to be made on a continuous basis pursuant to Rule 415 (the “Initial
Shelf Registration Statement”) covering all of the Registrable Notes. The Issuers shall file
with the Commission the Initial Shelf Registration Statement as promptly as practicable and in any
event on or prior to the 45th day after such Shelf Filing Event occurs. The Initial Shelf
Registration Statement shall be on Form S-3 or another appropriate form permitting registration of
such Registrable Notes for resale by Holders in the manner or manners designated by them
(including, without limitation, in one or more underwritten offerings). The Company shall not
permit any securities other than the Registrable Notes to be included in the Initial Shelf
Registration Statement or in any Subsequent Shelf Registration Statement (as defined below).

          The Issuers shall (x) use their commercially reasonable efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act on or prior to the 90th
day after such Shelf Filing Event occurs (but in no event shall such effectiveness be required
prior to 180 days following the Issue Date) and (y) use their commercially reasonable efforts to
keep the Initial Shelf Registration Statement continuously effective under the Securities Act for
the period ending on the date which is two years from the date it becomes effective (or one year if
the Initial Shelf Registration Statement is filed at the request of the Initial Purchasers),
subject to extension pursuant to the penultimate paragraph of Section 5 hereof (the
“Effectiveness Period”), or such shorter period ending when (i) all Registrable Notes
covered by the Initial Shelf Registration Statement have been sold in the manner set forth and as
contemplated in the Initial Shelf Registration Statement or (ii) a Subsequent Shelf Registration
Statement covering all of the Registrable Notes covered by and not sold under the Initial Shelf
Registration Statement or an earlier Subsequent Shelf Registration Statement has been declared
effective under the Securities Act; provided, however, that (i) the Effectiveness
Period in respect of the Initial Shelf Registration Statement shall be extended to the extent
required to permit dealers to comply with the applicable prospectus delivery requirements of Rule
174 under the Securities Act and as otherwise provided herein and (ii) the Company may suspend the
effectiveness of the Initial Shelf Registration Statement by written notice to the Holders solely
as a result of the filing of a post-effective amendment to the Initial Shelf Registration Statement
to incorporate annual audited financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared effective to permit holders
to use the related Prospectus.

          (b) Subsequent Shelf Registration Statements. If the Initial Shelf Registration
Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at
any time during the Effectiveness Period (other than because of the sale of all of the securities
registered thereunder), the Issuers shall use their respective reasonable best efforts to obtain
the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall as
soon as practicable after such cessation amend the Initial Shelf Registration Statement or such

9

 

Subsequent Shelf Registration Statement, as the case may be, in a manner to obtain the
withdrawal of the order suspending the effectiveness thereof, or file an additional Registration
Statement for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the
Registrable Notes covered by and not sold under the Initial Shelf Registration Statement or such
earlier Subsequent Shelf Registration Statement (each, a “Subsequent Shelf Registration
Statement”). If a Subsequent Shelf Registration Statement is filed, the Issuers shall use
their commercially reasonable efforts to cause the Subsequent Shelf Registration Statement to be
declared effective under the Securities Act as soon as practicable after such filing and to keep
such Subsequent Shelf Registration Statement continuously effective for a period equal to the
number of days in the Effectiveness Period less the aggregate number of days during which the
Initial Shelf Registration Statement and any Subsequent Shelf Registration Statement were
previously continuously effective. As used herein, the term “Shelf Registration Statement”
includes the Initial Shelf Registration Statement and any Subsequent Shelf Registration Statement.

          (c) Supplements and Amendments. The Issuers agree to supplement or make amendments to
the Shelf Registration Statement as and when required by the rules, regulations or instructions
applicable to the registration form used for such Shelf Registration Statement or by the Securities
Act for a shelf registration, or if reasonably requested by the Holders of a majority in aggregate
principal amount of the Registrable Notes covered by such Registration Statement or by any
underwriter of such Registrable Notes.

          Section 4. Liquidated Damages

          (a) The Issuers and the Initial Purchasers agree that the Holders will suffer damages if the
Issuers fail to fulfill their obligations under Section 2 or Section 3 hereof and that it would not
be feasible to ascertain the extent of such damages with precision. Accordingly, the Issuers agree
that if:

     (i) the Exchange Offer is not consummated on or prior to the 180th day following the
Issue Date, or, if that day is not a Business Day, then the next succeeding day that is a
Business Day, or

     (ii) the Shelf Registration Statement is required to be filed but is not filed or
declared effective within the time periods set forth herein or is declared effective but
thereafter ceases to be effective or usable prior to the expiration of the Effectiveness
Period, except if the Shelf Registration Statement ceases to be effective or usable as
specifically permitted by the penultimate paragraph of Section 5 hereof,

(each such event referred to in clauses (i) and (ii), a “Registration Default”), liquidated
damages in the form of additional cash interest (“Liquidated Damages”) will accrue on the
affected Notes and the affected Exchange Notes, as applicable. The rate of Liquidated Damages will
be 0.25%

10

 

per annum for the first 90-day period immediately following the occurrence of a Registration
Default, increasing by an additional 0.25% per annum with respect to each subsequent 90-day period
up to a maximum amount of additional interest of 1.0% per annum (“Additional Interest”),
from and including the date on which any such Registration Default shall occur to, but excluding,
the earlier of (1) the date on which all Registration Defaults have been cured or (2) the date on
which all the Notes and Exchange Notes otherwise become freely transferable by Holders other than
affiliates of the Issuer without further registration under the Securities Act.

          Notwithstanding the foregoing, (1) the amount of Liquidated Damages payable shall not increase
because more than one Registration Default has occurred and is pending and (2) a Holder of Notes or
Exchange Notes who is not entitled to the benefits of the Shelf Registration Statement (i.e., such
Holder has not elected to include information) shall not be entitled to Liquidated Damages with
respect to a Registration Default that pertains to the Shelf Registration Statement.

          (b) The Company shall notify the Trustee within one Business Day after each and every date on
which an event occurs in respect of which Liquidated Damages are required to be paid (an “Event
Date”). Any amounts of Liquidated Damages due pursuant to this Section 4 will be payable in
addition to any other interest payable from time to time with respect to the Registrable Notes in
cash semi-annually on the Interest Payment Dates specified in the Indenture (to the holders of
record as specified in the Indenture), commencing with the first such interest payment date
occurring after any such Liquidated Damages commence to accrue. The amount of Liquidated Damages
will be determined in a manner consistent with the calculation of interest under the Indenture.

          Section 5. Registration Procedures

          In connection with the filing of any Registration Statement pursuant to Section 2 or 3 hereof,
the Issuers shall effect such registrations to permit the sale of the securities covered thereby in
accordance with the intended method or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Issuers hereunder, the Issuers shall:

          (a) Prepare and file with the Commission the Registration Statement or Registration Statements
prescribed by Section 2 or 3 hereof, and use their commercially reasonable efforts to cause each
such Registration Statement to become effective and remain effective as provided herein; provided
that if (1) such filing is pursuant to Section 3 hereof, or (2) a Prospectus contained in the
Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period relating thereto, before filing any Registration Statement or
Prospectus or any amendments or supplements thereto, the Company shall furnish to and afford the
Holders of the Registrable Notes covered by such Registration Statement or each such Participating
Broker-Dealer, as the case may be, their counsel and the

11

 

managing underwriters, if any, a reasonable opportunity to review copies of all such documents
(including copies of any documents to be incorporated by reference therein and all exhibits
thereto) proposed to be filed (in each case at least five Business Days prior to such filing) and
use its commercially reasonable efforts to reflect in each such document, when so filed with the
Commission, such comments as any such Person determines are reasonably necessary to be included
therein. The Company shall not file any Registration Statement or Prospectus or any amendments or
supplements thereto if the Holders of a majority in aggregate principal amount of the Registrable
Notes covered by such Registration Statement, or any such Participating Broker-Dealer, as the case
may be, their counsel, or the managing underwriters, if any, shall reasonably object.

          (b) Prepare and file with the Commission such amendments and post-effective amendments to each
Shelf Registration Statement or Exchange Offer Registration Statement, as the case may be, as may
be necessary to keep such Registration Statement continuously effective for the Effectiveness
Period or the Applicable Period, as the case may be; cause the related Prospectus to be
supplemented by any Prospectus supplement required by applicable law, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; and comply with the provisions of the Securities Act and the Exchange Act
applicable to each of them with respect to the disposition of all securities covered by such
Registration Statement as so amended or in such Prospectus as so supplemented and with respect to
the subsequent resale of any securities being sold by a Participating Broker-Dealer covered by any
such Prospectus, in each case, in accordance with the intended methods of distribution set forth in
such Registration Statement or Prospectus, as so amended or supplemented, as the case may be.

          (c) Ensure that any Registration Statement and any amendment thereto and any Prospectus
forming a part thereof and any amendment or supplement thereto: (i) complies in all material
respects with the Securities Act and (ii) does not, when the Registration Statement or such
amendment or supplement becomes effective, contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein
(in the case of a Prospectus, in the light of the circumstances under which they were made) not
misleading.

          (d) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating thereto (from whom the Issuers
have received written notice that it will be a Participating Broker-Dealer in the Exchange Offer),
notify the selling Holders of Registrable Notes, or each such Participating Broker-Dealer, as the
case may be, their counsel and the managing underwriters, if any, as promptly as possible, and, if
requested by any such Person, confirm such notice in writing (which notice pursuant to clauses (ii)
through (vii) hereof shall be accompanied by an instruction to suspend the use of the Prospectus
until the Issuers shall have remedied the basis for such suspension), (i) when a Registration
Statement, Prospectus or any Prospectus supplement or

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post-effective amendment has been filed, and, with respect to a Registration Statement or any
post-effective amendment, when the same has become effective under the Securities Act (including
in such notice a written statement that any Holder may, upon request, obtain, at the sole expense
of the Company, one conformed copy of such Registration Statement or post-effective amendment
including financial statements and schedules, documents incorporated or deemed to be incorporated
by reference and exhibits), (ii) of any request by the Commission for any amendment or supplement
to the Registration Statement or the Prospectus or for additional information, (iii) of the
issuance by the Commission of any stop order suspending the effectiveness of a Registration
Statement or of any order preventing or suspending the use of any preliminary prospectus or the
initiation of any proceedings for that purpose, (iv) if at any time when a Prospectus is required
by the Securities Act to be delivered in connection with sales of the Registrable Notes or resales
of Exchange Notes by Participating Broker-Dealers the representations and warranties of the Issuers
contained in any agreement (including any underwriting agreement) contemplated by Section 5(n) or
Section 5(o) hereof cease to be true and correct in all material respects, (v) of the receipt by
any of the Issuers of any notification with respect to the suspension of the qualification or
exemption from qualification of a Registration Statement or any of the Registrable Notes or the
Exchange Notes for offer or sale in any jurisdiction, or the initiation or threatening of any
proceeding for such purpose, (vi) subject to the penultimate paragraph of Section 5, of the
happening of any event, the existence of any condition or any information becoming known to any
Issuer that makes any statement made in such Registration Statement or related Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue in any material
respect or that requires the making of any changes in or amendments or supplements to such
Registration Statement, Prospectus or documents so that, in the case of the Registration Statement,
it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and that
in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, and (vii)
subject to the penultimate paragraph of Section 5, of the Company’s determination that a
post-effective amendment to a Registration Statement would be appropriate.

          (e) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, use their reasonable best efforts to
prevent the issuance of any order suspending the effectiveness of a Registration Statement or of
any order preventing or suspending the use of a Prospectus or suspending the qualification (or
exemption from qualification) of any of the Registrable Notes or the Exchange Notes, as the case
may be, for sale in any jurisdiction, and, if any such order is issued, to use their reasonable
best efforts to obtain the withdrawal of any such order at the earliest practicable moment.

          (f) If (1) a Shelf Registration Statement is filed pursuant to Section 3 or (2) a Prospectus
contained in the Exchange Offer Registration Statement filed pursuant to Section 2

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hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer
who seeks to sell Exchange Notes during the Applicable Period and if requested by the managing
underwriter or underwriters (if any), the Holders of a majority in aggregate principal amount of
the Registrable Notes covered by such Registration Statement or any Participating Broker-Dealer, as
the case may be, (i) promptly incorporate in such Registration Statement or Prospectus a prospectus
supplement or post-effective amendment containing such information as the managing underwriter or
underwriters (if any), such Holders or any Participating Broker-Dealer, as the case may be (based
upon advice of counsel), determine is reasonably necessary to be included therein and (ii) make all
required filings of such prospectus supplement or such post-effective amendment as soon as
practicable after the Company has received notification of the matters to be incorporated in such
prospectus supplement or post-effective amendment; provided, however, that the
Issuers shall not be required to take any action hereunder that would, in the opinion of counsel to
the Company, violate applicable laws.

          (g) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, furnish to each selling Holder of
Registrable Notes or each such Participating Broker-Dealer, as the case may be, who so requests,
their counsel and each managing underwriter, if any, at the sole expense of the Company, one
conformed copy of the Registration Statement or Registration Statements and each post-effective
amendment thereto, including financial statements and schedules, and, if requested, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits.

          (h) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, deliver to each selling Holder of
Registrable Notes or each such Participating Broker-Dealer, as the case may be, their respective
counsel, and the underwriters, if any, at the sole expense of the Company, as many copies of the
Prospectus or Prospectuses (including each form of preliminary prospectus) and each amendment or
supplement thereto and any documents incorporated by reference therein as such Persons may
reasonably request; and, subject to the last paragraph of this Section 5, the Issuers hereby
consent to the use of such Prospectus and each amendment or supplement thereto by each of the
selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may be,
and the underwriters or agents, if any, and dealers (if any), in connection with the offering and
sale of the Registrable Notes or the sale by Participating Broker-Dealers of the Exchange Notes.

          (i) Prior to the Exchange Offer or any other public offering of Registrable Notes or Exchange
Notes or any delivery of a Prospectus contained in the Exchange Offer Registration Statement by any
Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use
their reasonable best efforts to register or qualify, and to

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cooperate with the selling Holders of Registrable Notes or each such Participating
Broker-Dealer, as the case may be, the managing underwriter or underwriters, if any, and their
respective counsel in connection with the registration or qualification (or exemption from such
registration or qualification) of such Registrable Notes or Exchange Notes, as the case may be, for
offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States
as any selling Holder, Participating Broker-Dealer, or the managing underwriter or underwriters
reasonably request (provided that where Exchange Notes or Registrable Notes are offered other than
through an underwritten offering, the Company agrees to cause the Company’s counsel to perform Blue
Sky investigations and file registrations and qualifications required to be filed pursuant to this
Section 5(i)) and keep each such registration or qualification (or exemption therefrom) effective
during the period such Registration Statement is required to be kept effective and do any and all
other acts or things reasonably necessary or advisable to enable the disposition in such
jurisdictions of such Exchange Notes or Registrable Notes covered by the applicable Registration
Statement); provided, however, that no Issuer shall be required to (A) qualify
generally to do business in any jurisdiction where it is not then so qualified, (B) take any action
that would subject it to general service of process in any such jurisdiction where it is not then
so subject or (C) subject itself to taxation in excess of a nominal dollar amount in any such
jurisdiction where it is not then so subject.

          (j) If a Shelf Registration Statement is filed pursuant to Section 3 hereof, cooperate with
the selling Holders of Registrable Notes and the managing underwriter or underwriters, if any, to
facilitate the timely preparation and delivery of certificates representing Registrable Notes to be
sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depository Trust Company; and enable such Registrable Notes to be in such
denominations and registered in such names as the managing underwriter or underwriters, if any, or
selling Holders may request at least two Business Days prior to any sale of such Registrable Notes
or Exchange Notes.

          (k) Use their reasonable best efforts to cause the Registrable Notes or Exchange Notes covered
by any Registration Statement to be registered with or approved by such other governmental agencies
or authorities as may be reasonably necessary to enable the seller or sellers thereof or the
underwriter or underwriters, if any, to consummate the disposition of such Registrable Notes or
Exchange Notes, except as may be required solely as a consequence of the nature of such selling
Holder’s business, in which case the Company will cooperate in all reasonable respects with the
filing of such Registration Statement and the granting of such approvals.

          (l) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, upon the occurrence of any event
contemplated by Section 5(d)(vi) or 5(d)(vii) hereof, as promptly as practicable prepare and
(subject to Section 5(a) and the penultimate paragraph of this Section 5) file with the Commission,
at the sole expense of the Company, a supplement or post-effective amendment to

15

 

the Registration Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, or file any other required document
so that, as thereafter delivered to the purchasers of the Registrable Notes being sold thereunder
or to the purchasers of the Exchange Notes to whom such Prospectus will be delivered by a
Participating Broker-Dealer, any such Prospectus will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading.

          (m) Prior to the effective date of the first Registration Statement relating to the
Registrable Notes, (i) provide the Trustee with certificates for the Registrable Notes in a form
eligible for deposit with The Depository Trust Company and (ii) provide a CUSIP number for the
Registrable Notes.

          (n) In connection with any underwritten offering of Registrable Notes pursuant to a Shelf
Registration Statement, enter into an underwriting agreement as is customary in underwritten
offerings of debt securities similar to the Notes and take all such other actions as are reasonably
requested by the managing underwriter or underwriters in order to expedite or facilitate the
registration or the disposition of such Registrable Notes and, in such connection, (i) make such
representations and warranties to, and covenants with, the underwriters with respect to the
business of the Company and its subsidiaries (including any acquired business, properties or
entity, if applicable) and the Registration Statement, Prospectus and documents, if any,
incorporated or deemed to be incorporated by reference therein, in each case, as are customarily
made by issuers to underwriters in primary underwritten offerings of debt securities similar to the
Notes and covering matters including, but not limited to, similar to those set forth in the
Purchase Agreement, and confirm the same in writing if and when requested; (ii) use their
reasonable best efforts to obtain written opinions of counsel to the Company and written updates
thereof in form, scope and substance reasonably satisfactory to the managing underwriter or
underwriters, addressed to the underwriters covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably requested by the
managing underwriter or underwriters; (iii) use their reasonable best efforts to obtain “cold
comfort” letters and updates thereof in form, scope and substance reasonably satisfactory to the
managing underwriter or underwriters from the independent certified public accountants of the
Company (and, if necessary, any other independent certified public accountants of any subsidiary of
the Company or of any business acquired by the Company for which financial statements and financial
data are, or are required to be, included or incorporated by reference in the Registration
Statement), addressed to the underwriters, such letters to be in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection with primary
underwritten offerings; and (iv) deliver such documents and certificates as may be reasonably
requested by the managing underwriter or underwriters, including those to evidence compliance with
Section 5(l) and with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Issuers. If an underwriting agreement is entered into, the same
shall contain indemnification provisions and procedures no less favorable than those set forth in
Section 7 hereof (or such other provisions and procedures acceptable to the Holders of a majority
in aggregate principal amount of Registrable Notes covered by such Registration

16

 

Statement and the managing underwriter or underwriters or agents) with respect to all parties
to be indemnified pursuant to said Section. The above shall be done at each closing under any such
underwriting agreement, or as and to the extent required thereunder.

          (o) In connection with any Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof that is required to be delivered under the Securities Act by any
Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, take all
such actions as are reasonably requested by each such Participating Broker-Dealer in order to
expedite or facilitate the disposition of such Exchange Notes, including (i) make such
representations and warranties to, and covenants with, each such Participating Broker-Dealer with
respect to the business of the Company and its subsidiaries (including any acquired business,
properties or entity, if applicable) and the Registration Statement, Prospectus and documents, if
any, incorporated or deemed to be incorporated by reference therein, in each case, as are
customarily made by issuers to underwriters in primary underwritten offerings of debt securities
similar to the Exchange Notes, and confirm the same in writing if and when requested; (ii) use
their reasonable best efforts to obtain written opinions of counsel to the Company and written
updates thereof (which opinions, in form, scope and substance, shall be reasonably satisfactory to
each such Participating Broker-Dealer), addressed to each such Participating Broker-Dealer covering
the matters customarily covered in opinions requested in underwritten offerings and such other
matters as may be reasonably requested by each such Participating Broker-Dealer or its counsel;
(iii) use their reasonable best efforts to obtain “cold comfort” letters and updates thereof in
form, scope and substance reasonably satisfactory to each such Participating Broker-Dealer from the
independent certified public accountants of the Company (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements and financial data are, or are required to be, included or
incorporated by reference in the Registration Statement), addressed to each such Participating
Broker-Dealer, such letters to be in customary form and covering matters of the type customarily
covered in “cold comfort” letters in connection with primary underwritten offerings, or if
requested by any such Participating Broker-Dealer or its counsel in lieu of a “cold comfort”
letter, an agreed-upon procedures letter under Statement on Auditing Standards No. 35, covering
matters requested by such Participating Broker-Dealer or its counsel; and (iv) deliver such
documents and certificates as may be reasonably requested by Participating Broker-Dealers holding a
majority in aggregate principal amount of Notes held by Participating Broker-Dealers, including
those to evidence compliance with Section 5(l) and with any customary conditions contained in
underwriting agreements. The above shall be done at the close of the Registered Exchange Offer.

          (p) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, make available for inspection by any
selling Holder of such Registrable Notes being sold or each such Participating Broker-Dealer, as
the case may be, any underwriter participating in any such disposition of Registrable Notes, if
any, and any attorney, accountant or other agent retained by any such selling Holder or each such
Participating Broker-Dealer, as the case may be, or underwriter

17

 

(collectively, the “Inspectors”), at the offices where normally kept, during
reasonable business hours, all financial and other records, pertinent corporate documents and
instruments of the Company and its subsidiaries (collectively, the “Records”) as shall be
reasonably necessary to enable them to exercise any applicable due diligence responsibilities, and
cause the officers, directors and employees, and use commercially reasonable efforts to cause the
accountants and auditors, of the Company and its subsidiaries to supply all information reasonably
requested by any such Inspector in connection with such Registration Statement and Prospectus.
Each Inspector shall agree in writing that it will not disclose any records that the Company
determines, in good faith, to be confidential and that it notifies the Inspectors in writing are
confidential unless (i) the disclosure of such Records is necessary to avoid or correct a
misstatement or omission in such Registration Statement or Prospectus, (ii) the release of such
Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction,
(iii) disclosure of such information is necessary or advisable in connection with any action,
claim, suit or proceeding, directly or indirectly, involving or potentially involving such
Inspector and arising out of, based upon, relating to, or involving this Agreement or the Purchase
Agreement, or any transactions contemplated hereby or thereby or arising hereunder or thereunder,
or (iv) the information in such Records has been made generally available to the public;
provided, however, that such Inspectors shall take such actions as are reasonably
necessary to protect the confidentiality of such information (if practicable) to the extent such
action is otherwise not inconsistent with an impairment of or in derogation of the rights and
interests of the Holder or any Inspector; provided, however, further, that
to the extent the foregoing inspections shall be made contemporaneously by more than one Holder,
there shall be one law firm (plus local counsel) and one accounting firm retained by all such
Holders to make such investigation.

          (q) Provide an indenture trustee for the Registrable Notes or the Exchange Notes, as the case
may be, and cause the Indenture or the trust indenture provided for in Section 2(b) hereof to be
qualified under the TIA not later than the effective date of the Exchange Offer or the first
Registration Statement relating to the Registrable Notes; and in connection therewith, cooperate
with the trustee under any such indenture and the Holders of the Registrable Notes or Exchange
Notes, as applicable, to effect such changes to such indenture as may be required for such
indenture to be so qualified in accordance with the terms of the TIA; and execute, and use their
reasonable best efforts to cause such trustee to execute, all documents as may be required to
effect such changes, and all other forms and documents required to be filed with the Commission to
enable such indenture to be so qualified in a timely manner. In the event that such qualification
would require the appointment of a new trustee under the Indenture or the trust indenture provided
for in Section 2(b) hereof, the Company shall appoint a new trustee thereunder pursuant to the
applicable provisions thereof.

          (r) Comply with all applicable rules and regulations of the Commission and make generally
available to the Company’s security holders earnings statements satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under
the Securities Act) as soon as practicable after the effective date of the applicable Registration
Statement and in no event later than 45 days after the end of any 12-month period (or 90 days after
the end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any
fiscal quarter in which Registrable Notes or Exchange Notes are

18

 

sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if
not sold to underwriters in such an offering, commencing on the first day of the first fiscal
quarter of the Company after the effective date of a Registration Statement, which statements shall
cover said 12-month periods.

          (s) Upon the request of a Holder, upon consummation of the Exchange Offer or a Private
Exchange, use their reasonable best efforts to obtain an opinion of counsel to the Company, in a
form customary for underwritten transactions, addressed to the Trustee for the benefit of all
Holders of Registrable Notes participating in the Exchange Offer or the Private Exchange, as the
case may be, that the Exchange Notes or Private Exchange Notes, as the case may be, and the related
indenture constitute legal, valid and binding obligations of the Company, enforceable against the
Company in accordance with its respective terms, subject to customary exceptions and
qualifications.

          (t) If the Exchange Offer or a Private Exchange is to be consummated, upon delivery of the
Registrable Notes by Holders to the Company (or to such other Person as directed by the Company) in
exchange for the Exchange Notes or the Private Exchange Notes, as the case may be, mark, or cause
to be marked, on such Registrable Notes that such Registrable Notes are being canceled in exchange
for the Exchange Notes or the Private Exchange Notes, as the case may be; in no event shall such
Registrable Notes be marked as paid or otherwise satisfied.

          (u) Cooperate with each seller of Registrable Notes covered by any Registration Statement and
each broker-dealer registered under the Exchange Act that shall underwrite any Registrable Notes or
participate as a member of an underwriting syndicate or selling group or “assist in the
distribution” (within the meaning of the Conduct Rules of FINRA) thereof, whether as a Holder of
such Registrable Notes or as an underwriter, a placement or sales agent or a broker or dealer in
respect thereof, or otherwise, and their respective counsel in connection with any filings required
to be made with the Financial Industry Regulatory Authority, Inc. (the “FINRA”).

          (v) Use their reasonable best efforts to take all other steps necessary or advisable to effect
the registration or disposition of the Exchange Notes and/or Registrable Notes covered by a
Registration Statement contemplated hereby.

          The Company may require each seller of Registrable Notes or Exchange Notes as to which any
registration is being effected to furnish to the Company such information regarding such seller and
the distribution of such Registrable Notes or Exchange Notes as the Company may, from time to time,
reasonably request. The Company may exclude from such registration the Registrable Notes or
Exchange Notes of any seller so long as such seller fails to furnish such information within a
reasonable time after receiving such request and the failure to include any such seller shall not
be deemed to be a Registration Default. Each seller covered by any Shelf Registration Statement
agrees to furnish promptly to the Company all information required to be

19

 

disclosed in order to make any information previously furnished to the Company by such seller
not materially misleading.

          If any such Registration Statement refers to any Holder by name or otherwise as the holder of
any securities of the Company, then such Holder shall have the right to require (i) the insertion
therein of language, in form and substance reasonably satisfactory to such Holder, to the effect
that the holding by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the securities covered thereby and that such holding does
not imply that such Holder will assist in meeting any future financial requirements of the Company,
or (ii) in the event that such reference to such Holder by name or otherwise is not required by the
Securities Act or any similar federal statute then in force, the deletion of the reference to such
Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to
the time that such reference ceases to be required.

          Each Holder of Registrable Notes and each Participating Broker-Dealer agrees by acquisition of
such Registrable Notes or Exchange Notes that, upon actual receipt of any notice from the Company
(x) of the happening of any event of the kind described in Section 5(d)(ii) through 5(d)(vii)
hereof, or (y) that the Board of Directors of the Company (the “Board of Directors”) has
resolved that the Company has a bona fide business purpose for doing so, then the Company may delay
the filing or the effectiveness of the Exchange Offer Registration Statement or the Shelf
Registration Statement (if not then filed or effective, as applicable) and shall not be required to
maintain the effectiveness thereof or amend or supplement the Exchange Offer Registration Statement
or the Shelf Registration Statement, in all cases, for a period (a “Delay Period”) expiring
upon the earlier to occur of (i) in the case of the immediately preceding clause (x), such Holder’s
or Participating Broker-Dealer’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(l) hereof or until it is advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus may be resumed, and has received copies of any
amendments or supplements thereto or (ii) in the case of the immediately preceding clause (y), the
date which is the earlier of (A) the date on which such business purpose ceases to interfere with
the Company’s obligations to file or maintain the effectiveness of any such Registration Statement
pursuant to this Agreement or (B) 60 days after the Company notifies the Holders of such good faith
determination (and it is further agreed that during the Delay Period, the Issuers shall not be
required to provide any information pursuant to Section 5(d)(v) or 5(d)(vii) to the extent the
provision thereof would violate Regulation FD under the Exchange Act). There shall not be more
than 60 days of Delay Periods during any 12-month period. Each of the Effectiveness Period and the
Applicable Period, if applicable, shall be extended by the number of days during any Delay Period.
Any Delay Period will not alter the obligations of the Company to pay Liquidated Damages under the
circumstances set forth in Section 4 hereof.

          In the event of any Delay Period pursuant to clause (y) of the preceding paragraph, notice
shall be given as soon as practicable after the Board of Directors makes such a determination of
the need for a Delay Period and shall state, to the extent practicable, an estimate of the duration
of such Delay Period and shall advise the recipient thereof of the agreement of

20

 

such Holder provided in the next succeeding sentence. Each Holder, by his acceptance of any
Registrable Note, agrees that during any Delay Period, each Holder will discontinue disposition of
such Notes or Exchange Notes covered by such Registration Statement or Prospectus or Exchange Notes
to be sold by such Holder or Participating Broker-Dealer, as the case may be.

          Section 6. Registration Expenses

          All fees and expenses incident to the performance of or compliance with this Agreement by the
Issuers shall be borne by the Issuers, whether or not the Exchange Offer Registration Statement or
the Shelf Registration Statement is filed or becomes effective or the Exchange Offer is
consummated, including, without limitation, (i) all registration and filing fees (including,
without limitation, (A) fees with respect to filings required to be made with the FINRA in
connection with an underwritten offering and (B) fees and expenses of compliance with state
securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of
counsel in connection with Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for investment under
the laws of such jurisdictions (x) where the holders of Registrable Notes are located, in the case
of an Exchange Offer, or (y) as provided in Section 5(i) hereof, in the case of a Shelf
Registration Statement or in the case of Exchange Notes to be sold by a Participating Broker-Dealer
during the Applicable Period)), (ii) printing expenses, including, without limitation, expenses of
printing certificates for Registrable Notes or Exchange Notes in a form eligible for deposit with
The Depository Trust Company and of printing prospectuses if the printing of prospectuses is
requested by the managing underwriter or underwriters, if any, or by the Holders of a majority in
aggregate principal amount of the Registrable Notes included in any Registration Statement or in
respect of Exchange Notes to be sold by any Participating Broker-Dealer during the Applicable
Period, as the case may be, (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company and reasonable fees and disbursements of one special
counsel for all of the sellers of Registrable Notes pursuant to a Shelf Registration Statement
(exclusive of any counsel retained pursuant to Section 7 hereof), (v) fees and disbursements of all
independent certified public accountants referred to in Section 5(n)(iii) and Section 5(o)(iii)
hereof (including, without limitation, the expenses of any special audit and “cold comfort” letters
required by or incident to such performance), (vi) Securities Act liability insurance, if the
Company desires such insurance, (vii) fees and expenses of all other Persons retained by any of the
Issuers, (viii) internal expenses of the Issuers (including, without limitation, all salaries and
expenses of officers and employees of the Company performing legal or accounting duties), (ix) the
expense of any audit, (x) the fees and expenses incurred in connection with the listing of the
securities to be registered on any securities exchange, and the obtaining of a rating of the
securities, in each case, if applicable, and (xi) the expenses relating to printing, word
processing and distributing all Registration Statements, underwriting agreements, indentures and
any other documents necessary in order to comply with this Agreement. Notwithstanding the
foregoing or anything to the contrary, (i) each Holder shall pay all underwriting discounts and
commissions of any underwriters with respect to any Registrable Notes sold by or on behalf of it
and (ii) all Holders shall pay all fees and expenses of counsel to the underwriters in any
underwritten offering made pursuant to a Shelf Registration Statement.

21

 

          Section 7. Indemnification

          (a) Each Issuer, jointly and severally, agrees to indemnify and hold harmless each Holder of
Registrable Notes and each Participating Broker-Dealer selling Exchange Notes during the Applicable
Period, each Person, if any, who controls any such Person within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Exchange Act, the agents, employees, officers and directors
of each Holder and each such Participating Broker-Dealer and the agents, employees, officers and
directors of any such controlling Person (each, a “Participant”) from and against any and
all losses, liabilities, claims, damages and expenses whatsoever (including, but not limited to,
reasonable attorneys’ fees and any and all reasonable expenses whatsoever incurred in
investigating, preparing or defending against any litigation, commenced or threatened, or any claim
whatsoever, and any and all reasonable amounts paid in settlement of any claim or litigation)
(collectively, “Losses”) to which they or any of them may become subject under the
Securities Act, the Exchange Act or otherwise insofar as such Losses (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment thereto) or Prospectus (as
amended or supplemented if the Company shall have furnished any amendments or supplements thereto)
or any preliminary prospectus, or caused by, arising out of or based upon any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein, in the case of the Prospectus, in the light of the circumstances under which
they were made, not misleading, provided that (i) the foregoing indemnity shall not be available to
any Participant insofar as such Losses are caused by any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with information relating to
such Participant furnished to the Company in writing by or on behalf of such Participant expressly
for use therein, and (ii) that the foregoing indemnity with respect to any preliminary prospectus
shall not inure to the benefit of any Participant from whom the Person asserting such Losses
purchased Registrable Notes if (x) it is established in the related proceeding that such
Participant failed to send or give a copy of the Prospectus (as amended or supplemented if such
amendment or supplement was furnished to such Participant prior to the written confirmation of such
sale) to such Person with or prior to the written confirmation of such sale, if required by
applicable law, and (y) the untrue statement or omission or alleged untrue statement or omission
was completely corrected in the Prospectus (as amended or supplemented if amended or supplemented
as aforesaid) and such Prospectus does not contain any other untrue statement or omission or
alleged untrue statement or omission that was the subject matter of the related proceeding. This
indemnity agreement will be in addition to any liability that the Issuers may otherwise have,
including, but not limited to, liability under this Agreement.

          (b) Each Participant agrees, severally and not jointly, to indemnify and hold harmless each
Issuer, each Person, if any, who controls any Issuer within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Exchange Act, and each of their respective agents,
employees, officers and directors and the agents, employees, officers and directors of any such
controlling Person from and against any Losses to which they or any of them may become subject
under the Securities Act, the Exchange Act or otherwise insofar as such Losses (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue

22

 

statement of a material fact contained in any Registration Statement (or any amendment
thereto) or Prospectus (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) or any preliminary prospectus, or caused by, arising out of or
based upon any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the case of the Prospectus, in light of the
circumstances under which they were made, not misleading, in each case to the extent, but only to
the extent, that any such Loss arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in conformity with
information relating to such Participant furnished in writing to the Company by or on behalf of
such Participant expressly for use therein.

          (c) Promptly after receipt by an indemnified party under subsection 7(a) or 7(b) above of
notice of the commencement of any action, suit or proceeding (collectively, an “action”),
such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying
party under such subsection, notify each party against whom indemnification is to be sought in
writing of the commencement of such action (but the failure so to notify an indemnifying party
shall not relieve such indemnifying party from any liability that it may have under this Section 7
except to the extent that it has been prejudiced in any material respect by such failure). In case
any such action is brought against any indemnified party, and it notifies an indemnifying party of
the commencement of such action, the indemnifying party will be entitled to participate in such
action, and to the extent it may elect by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to assume the defense of
such action with counsel reasonably satisfactory to such indemnified party. Notwithstanding the
foregoing, the indemnified party or parties shall have the right to employ its or their own counsel
in any such action, but the reasonable fees and expenses of such counsel shall be at the expense of
such indemnified party or parties unless (i) the employment of such counsel shall have been
authorized in writing by the indemnifying parties in connection with the defense of such action,
(ii) the indemnifying parties shall not have employed counsel to take charge of the defense of such
action within a reasonable time after notice of commencement of the action, (iii) the named parties
to such action (including any impleaded parties) include such indemnified party and the
indemnifying party or parties (or such indemnifying parties have assumed the defense of such
action), and such indemnified party or parties shall have reasonably concluded that there may be
defenses available to it or them that are different from or additional to those available to one or
all of the indemnifying parties (in which case the indemnifying parties shall not have the right to
direct the defense of such action on behalf of the indemnified party or parties), or (iv) the use
of counsel chosen by the indemnifying party to represent the indemnified party would present such
counsel with a conflict of interest, in any of which events such reasonable fees and expenses of
counsel shall be borne by the indemnifying parties. In no event shall the indemnifying party be
liable for the fees and expenses of more than one counsel (together with appropriate local counsel)
at any time for all indemnified parties in connection with any one action or separate but
substantially similar or related actions arising in the same jurisdiction out of the same general
allegations or circumstances. An indemnifying party shall not be liable for any settlement of any
claim or action effected without its written consent, which consent may not be unreasonably
withheld. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have
requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel
as contemplated by paragraph (a) or (b) of

23

 

this Section 7, then the indemnifying party agrees that it shall be liable for any settlement
of any proceeding effected without its written consent if (i) such settlement is entered into more
than 60 Business Days after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such request
prior to the date of such settlement and (iii) such indemnified party shall have given the
indemnifying party at least 45 days’ prior notice of its intention to settle. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement of
any pending or threatened proceeding in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

          (d) In order to provide for contribution in circumstances in which the indemnification
provided for in this Section 7 is for any reason held to be unavailable from the indemnifying
party, or is insufficient to hold harmless a party indemnified under this Section 7, each
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of such aggregate Losses (i) in such proportion as is appropriate to reflect the relative
benefits received by each indemnifying party, on the one hand, and each indemnified party, on the
other hand, from the sale of the Notes to the Initial Purchasers or the resale of the Registrable
Notes by such Holder, as applicable, or (ii) if such allocation is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to above
but also the relative fault of each indemnified party, on the one hand, and each indemnifying
party, on the other hand, in connection with the statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations. The relative benefits received by
the Issuers, on the one hand, and each Participant, on the other hand, shall be deemed to be in the
same proportion as (x) the total proceeds from the sale of the Notes to the Initial Purchasers (net
of discounts and commissions but before deducting expenses) received by the Issuers are to (y) the
total net profit received by such Participant in connection with the sale of the Registrable Notes.
The relative fault of the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Issuers or such Participant and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission or alleged statement or omission.

          (e) The parties agree that it would not be just and equitable if contribution pursuant to this
Section 7 were determined by pro rata allocation or by any other method of allocation that does not
take into account the equitable considerations referred to above. Notwithstanding the provisions
of this Section 7, (i) in no case shall any Participant be required to contribute any amount in
excess of the amount by which the total net profit received by such Participant in connection with
the sale of the Registrable Notes exceeds the amount of any damages that such Participant has
otherwise been required to pay by reason of any untrue or alleged untrue statement or omission or
alleged omission and (ii) no Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. For purposes of this Section 7, each Person, if any, who
controls any party within the meaning of

24

 

Section 15 of the Act or Section 20(a) of the Exchange Act and each director, officer,
employee and agent of such party shall have the same rights to contribution as such party. Any
party entitled to contribution will, promptly after receipt of notice of commencement of any action
against such party in respect of which a claim for contribution may be made against another party
or parties under this Section 7, notify such party or parties from whom contribution may be sought,
but the omission to so notify such party or parties shall not relieve the party or parties from
whom contribution may be sought from any obligation it or they may have under this Section 7 or
otherwise, except to the extent that it has been prejudiced in any material respect by such
failure; provided, however, that no additional notice shall be required with
respect to any action for which notice has been given under this Section 7 for purposes of
indemnification. Anything in this section to the contrary notwithstanding, no party shall be
liable for contribution with respect to any action or claim settled without its written consent,
provided, however, that such written consent was not unreasonably withheld.

          (f) The provisions of this Section 7 will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Issuers or any of the indemnified persons
referred to in this Section 7, and will survive the sale by a Holder of securities covered by a
Registration Statement.

          Section 8. Rules 144 and 144A

          The Company covenants that it will file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the Commission
thereunder in a timely manner in accordance with the requirements of the Securities Act and the
Exchange Act and, if at any time the Company is not required to file such reports, it will, upon
the request of any Holder or beneficial owner of Registrable Notes, make publicly available such
information for so long as necessary to permit sales pursuant to Rules 144 and 144A under the
Securities Act. The Issuers further covenant that they will take such further action as any Holder
of Registrable Notes may reasonably request from time to time to enable such Holder to sell
Registrable Notes without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 and Rule 144A (including the requirements of Rule 144A(d)(4))
under the Securities Act, as such Rules may be amended from time to time and (b) any similar rule
or regulation hereafter adopted by the Commission. The Issuers will provide a copy of this
Agreement to prospective purchasers of Registrable Notes identified to the Issuers by the Initial
Purchasers upon request. Notwithstanding the foregoing, nothing in this Section 8 shall be deemed
to require any Issuer to register any of its securities pursuant to the Exchange Act.

          Section 9. Underwritten Registrations

          If any of the Registrable Notes covered by any Shelf Registration Statement are to be sold in
an underwritten offering, the investment banker or investment bankers and manager or managers that
will manage the offering will be selected by the Holders of a majority in aggregate

25

 

principal amount of such Registrable Notes included in such offering and shall be reasonably
acceptable to the Company.

          No Holder of Registrable Notes may participate in any underwritten registration hereunder if
such Holder does not (a) agree to sell such Holder’s Registrable Notes on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) complete and execute all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting arrangements.

          Section 10. Miscellaneous

          (a) No Inconsistent Agreements. The Issuers have not, as of the date hereof, and
shall not, after the date of this Agreement, enter into any agreement with respect to any of their
securities that is inconsistent with the rights granted to the Holders of Registrable Notes in this
Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not conflict with and are not inconsistent with, in any material respect, the rights
granted to the holders of any of the Issuers’ other issued and outstanding securities under any
such agreements. The Issuers have not entered and will not enter into any agreement with respect
to any of their securities which will grant to any Person piggyback registration rights with
respect to any Registration Statement.

          (b) Adjustments Affecting Registrable Notes. The Company shall not, directly or
indirectly, take any action with respect to the Registrable Notes as a class that would adversely
affect the ability of the Holders of Registrable Notes to include such Registrable Notes in a
registration undertaken pursuant to this Agreement.

          (c) Amendments and Waivers. The provisions of this Agreement may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given except pursuant to a written agreement duly signed and delivered by (I) the
Company (on behalf of all Issuers) and (II)(A) the Holders of not less than a majority in aggregate
principal amount of the then outstanding Registrable Notes and (B) in circumstances that would
adversely affect the Participating Broker-Dealers, the Participating Broker-Dealers holding not
less than a majority in aggregate principal amount of the Exchange Notes held by all Participating
Broker-Dealers; provided, however, that Section 4, Section 7, and this Section
10(c) may not be amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions thereof or hereof may not be given, except pursuant to a written
agreement duly signed and delivered by each Holder and each Participating Broker-Dealer (including
any Person who was a Holder or Participating Broker-Dealer of Registrable Notes or Exchange Notes,
as the case may be, disposed of pursuant to any Registration Statement) affected by any such
amendment, modification, qualification, supplement, waiver, or consent. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable

26

 

Notes whose securities are being sold pursuant to a Registration Statement and that does not
directly or indirectly affect, impair, limit or compromise the rights of other Holders of
Registrable Notes may be given by Holders of at least a majority in aggregate principal amount of
the Registrable Notes being sold pursuant to such Registration Statement.

          (d) Notices. All notices and other communications (including, without limitation, any
notices or other communications to the Trustee) provided for or permitted hereunder shall be made
in writing by hand-delivery, registered first-class mail, next-day air courier or telecopier:

     (i) if to a Holder of the Registrable Notes or any Participating Broker-Dealer, at the
most current address of such Holder or Participating Broker-Dealer, as the case may be, set
forth on the records of the registrar under the Indenture.

     (ii) if to the Issuers, at the address as follows:

Beazer Homes USA, Inc.

1000 Abernathy Road

Atlanta, Georgia 30328

Fax: 770-481-7364

Attention: Kenneth F. Khoury

With a copy to:

Cahill Gordon & Reindel LLP

80 Pine Street

New York, NY 10005

Fax: 212-269-5420

Attention: Michael A. Sherman, Esq.

     (iii) if to the Initial Purchasers, at the address as follows:

Citigroup Global Markets Inc.

88 Greenwich Street

New York, NY 10013

Fax: 212-816-7912

Attention: General Counsel

27

 

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, CA 90071-3144

Fax: 213-687-5600

Attention: Casey T. Fleck, Esq.

          All such notices and communications shall be deemed to have been duly given: when delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by the recipient’s telecopier machine, if
telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

          Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address and in the manner specified in such
Indenture.

          The Initial Purchasers or the Issuers by notice to the other parties may designate additional
or different addresses for subsequent notices or communications

          (e) Guarantors. So long as any Registrable Notes remain outstanding, the Issuers
shall cause each Person that becomes a guarantor of the Notes under the Indenture to execute and
deliver a counterpart to this Agreement which subjects such Person to the provisions of this
Agreement as a Guarantor. Each of the Guarantors agrees to join the Company in all of its
undertakings hereunder to effect the Exchange Offer for the Exchange Notes and the filing of any
Shelf Registration Statement required hereunder.

          (f) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto, the Holders, the
Participating Broker-Dealers and the indemnified parties referred to in Section 7 hereof;
provided, however, that this Agreement shall only inure to the benefit of and be
binding upon a successor or assign of a Holder if and to the extent such successor or assign holds
Registrable Notes.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

          (h) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

28

 

          (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WHOLLY WITHIN
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

          (j) Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or unenforceable.

          (k) Securities Held by the Company or Its Affiliates. Whenever the consent or
approval of Holders of a specified percentage of Registrable Notes is required hereunder,
Registrable Notes held by the Company or any of its affiliates (as such term is defined in Rule 405
under the Securities Act), other than Holders deemed to be affiliates solely by reason of their
holdings of such Registrable Notes, shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

          (l) Third-Party Beneficiaries. Holders and beneficial owners of Registrable Notes,
Participating Broker-Dealers and the indemnified parties referred to in Section 7 hereof are
intended third-party beneficiaries of this Agreement, and this Agreement may be enforced by such
Persons. No other Person is intended to be, or shall be construed as, a third-party beneficiary of
this Agreement.

          (m) Attorneys’ Fees. As between the parties to this Agreement, in any action or
proceeding brought to enforce any provision of this Agreement, or where any provision hereof is
validly asserted as a defense, the successful party shall be entitled to recover reasonable
attorneys’ fees actually incurred in addition to its costs and expenses and any other available
remedy.

          (n) Entire Agreement. This Agreement, together with the Purchase Agreement and the
Indenture, is intended by the parties as a final and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and therein
and any and all prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between the Holders on the one hand and
the Company on the other, or between or among any agents, representatives, parents, subsidiaries,
affiliates, predecessors in interest or successors in interest with respect to the subject matter
hereof and thereof are merged herein and replaced hereby.

29

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	BEAZER HOMES USA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	APRIL CORPORATION

BEAZER ALLIED COMPANIES HOLDINGS, INC.

BEAZER GENERAL SERVICES, INC.

BEAZER HOMES CORP.

BEAZER HOMES HOLDINGS CORP.

BEAZER HOMES INDIANA HOLDINGS CORP.

BEAZER HOMES SALES, INC.

BEAZER HOMES TEXAS HOLDINGS, INC.

BEAZER REALTY CORP.

BEAZER REALTY, INC.

BEAZER REALTY LOS ANGELES, INC.

BEAZER REALTY SACRAMENTO, INC.

BEAZER/SQUIRES REALTY, INC.

HOMEBUILDERS TITLE SERVICES OF VIRGINIA, INC.

HOMEBUILDERS TITLE SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BEAZER MORTGAGE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER HOMES INDIANA LLP

By: BEAZER HOMES INVESTMENTS, LLC, 

       its Managing Partner

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ARDEN PARK VENTURES, LLC

BEAZER CLARKSBURG, LLC

BEAZER COMMERCIAL HOLDINGS, LLC

DOVE BARRINGTON DEVELOPMENT LLC

BEAZER HOMES INVESTMENTS, LLC

BEAZER HOMES MICHIGAN, LLC

ELYSIAN HEIGHTS POTOMIA, LLC
 	 
	 
	 	By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BEAZER HOMES TEXAS, L.P.

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER REALTY SERVICES, LLC

By: BEAZER HOMES INVESTMENTS, LLC,

       its Sole Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BEAZER SPE, LLC

By: BEAZER HOMES HOLDINGS CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BH BUILDING PRODUCTS, LP

By: BH PROCUREMENT SERVICES, LLC,

       its General Partner

By: BEAZER HOMES TEXAS, L.P.,

       its Sole Member

By: BEAZER HOMES TEXAS
 HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BH PROCUREMENT SERVICES, LLC

By: BEAZER HOMES TEXAS, L.P.,

       its Sole Member

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PARAGON TITLE, LLC

By: BEAZER HOMES INVESTMENTS, LLC,

       its Sole Member and Manager

By: BEAZER HOMES CORP., 

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TEXAS LONE STAR TITLE, L.P.

By: BEAZER HOMES TEXAS HOLDINGS, INC.,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TRINITY HOMES, LLC

By: BEAZER HOMES INVESTMENTS, LLC,

       its Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CLARKSBURG ARORA LLC

By: BEAZER CLARKSBURG, LLC,

       its Sole Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CLARKSBURG SKYLARK, LLC

By: CLARKSBURG ARORA LLC,

       its Sole Member

By: BEAZER CLARKSBURG, LLC,

       its Sole Member

By: BEAZER HOMES CORP.,

       its Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

	 	 	 	 	 
	Accepted and agreed to as of the date

first above written, on behalf of itself

and the other several Initial Purchasers:

CITIGROUP GLOBAL MARKETS INC.

 	 	 
	 	By:  	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Schedule I

Schedule of Guarantors

Beazer General Services, Inc.

Beazer Homes Corp.

Beazer/Squires Realty, Inc.

Beazer Homes Sales, Inc.

Beazer Homes Investments, LLC

Beazer Realty Corp.

Beazer Homes Holdings Corp.

Beazer Homes Indiana Holdings Corp.

Beazer Homes Texas Holdings, Inc.

Beazer Homes Texas, L.P.

Beazer Homes Indiana LLP

April Corporation

Beazer SPE, LLC

Beazer Realty, Inc.

Beazer Realty Services, LLC

Beazer Realty Los Angeles, Inc.

Beazer Realty Sacramento, Inc.

BH Building Products, LP

BH Procurement Services, LLC

Homebuilders Title Services of Virginia, Inc.

Homebuilders Title Services, Inc.

Texas Lone Star Title, L.P.

Beazer Allied Companies Holdings, Inc.

Paragon Title, LLC

Trinity Homes, LLC

Beazer Commercial Holdings, LLC

Beazer Clarksburg, LLC

Arden Park Ventures, LLC

Beazer Mortgage Corporation

Beazer Homes Michigan, LLC

Dove Barrington Development LLC

Clarksburg Arora LLC

Clarksburg Skylark, LLC

Elysian Heights Potomia, LLC

Sch I-1

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