Document:

EX-10.2

 Exhibit 10.2 

CHANGE IN CONTROL AGREEMENT 

This Change in Control Agreement (“Agreement”), dated as of February 5, 2015, is between Monarch Bank, a Virginia state
chartered bank (“Company”), and William T. Morrison (“Officer”) and provides as follows. 
 1. Purpose. The
Company recognizes that the possibility of a “Change in Control” as defined in Section 13 exists, and the uncertainty and questions that it may raise among management may result in the departure or distraction of management personnel
to the detriment of Company and its shareholders. Accordingly, the purpose of this Agreement is to encourage Officer to continue employment after a Change in Control by providing reasonable employment security to Officer and to recognize the prior
service of Officer in the event of a termination of employment under certain circumstances after a Change in Control. 
 2. Term of the
Agreement. This Agreement is effective as of the original agreement date and will expire on December 31, 2016; provided that on December 31, 2015 and on each December 31st
thereafter (each such December 31st is referred to as the “Renewal Date”), this Agreement will be automatically extended for an additional calendar year so as to terminate two years
from such Renewal Date. This Agreement will not, however, be extended if Company gives written notice of such non-renewal to Officer no later than 90 days before the Renewal Date (the original and any extended term of this Agreement is referred to
as the “Change in Control Period”). 
 3. Employment after a Change in Control. If a Change in Control of Company occurs
during the Change in Control Period and Officer is employed by Company on the date the Change in Control occurs (the “Change in Control Date”), Company will continue to employ Officer in accordance with the terms and conditions of this
Agreement for the period beginning on the Change in Control Date and ending on the third anniversary of such date (the “Employment Period”). If a Change in Control occurs on account of a series of transactions, the Change in Control Date
is the date of the last of such transactions. 
 4. Terms of Employment. 

(a) Position and Duties. During the Employment Period, (i) Officer’s position, authority, duties and responsibilities will be
at least commensurate in all material respects with the most significant of those held, exercised and assigned at any time during the six month period immediately preceding the Change in Control Date and (ii) Officer’s services will be
performed at the location where Officer was employed immediately preceding the Change in Control Date or any office that is the headquarters of the Company and is less than 35 miles from such location. 

(b) Compensation. 
 (i)
Base Salary. During the Employment Period, Officer will receive an annual base salary (the “Annual Base Salary”) at least equal to the base salary paid or payable to Officer by Company and its affiliated companies for the
twelve-month period immediately preceding the Change of Control Date. During the Employment Period, the Annual Base Salary will be reviewed at least annually and will be increased at any time and from time to time as will be

 
substantially consistent with increases in base salary generally awarded in the ordinary course of business to other peer Officers of Company and its affiliated companies. Any increase in the
Annual Base Salary will not serve to limit or reduce any other obligation to Officer under this Agreement. The Annual Base Salary will not be reduced after any such increase, and the term Annual Base Salary as used in this Agreement will refer to
the Annual Base Salary as so increased. The term “affiliated companies” includes any company controlled by, controlling or under common control with Company. 

(ii) Incentive, Savings and Retirement Plans. During the Employment Period, Officer will be entitled to participate in all incentive
(including stock incentive), savings and retirement, insurance plans, policies and programs applicable generally to other peer Officers of Company and its affiliated companies, but in no event will such plans, policies and programs provide Officer
with incentive opportunities, savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than those provided by Company and its affiliated companies for Officer under such plans, policies and programs
as in effect at any time during the six months immediately preceding the Change in Control Date. 
 (iii) Welfare Benefit Plans.
During the Employment Period, Officer and/or Officer’s family, as the case may be, will be eligible for participation in and will receive all benefits under welfare benefit plans, policies and programs provided by Company and its affiliated
companies to the extent applicable generally to other peer Officers of Company and its affiliated companies, but in no event will such plans, policies and programs provide Officer with benefits that are less favorable, in the aggregate, than the
most favorable of such plans, policies and programs in effect at any time during the six months immediately preceding the Change in Control Date. 

(iv) Fringe Benefits. During the Employment Period, Officer will be entitled to fringe benefits in accordance with the plans, policies
and programs of Company and its affiliated companies in effect for Officer at any time during the six months immediately preceding the Change in Control Date or, if more favorable to Officer, as in effect generally from time to time after the Change
in Control Date with respect to other peer Officers of Company and its affiliated companies. 
 (v) Paid Time Off. During the
Employment Period, Officer will be entitled to paid time off in accordance with the plans, policies and programs of Company and its affiliated companies in effect for Officer at any time during the six months immediately preceding the Change in
Control Date or, if more favorable to Officer, as in effect generally from time to time after the Change in Control Date with respect to other peer Officers of Company and its affiliated companies. 

5. Termination of Employment Following Change in Control. 

(a) Death or Disability. If Officer dies or incurs a Disability (as determined by the Administrator) during the Employment Period, then
Officer or his designated beneficiary shall receive benefits detailed in Section 7. For purposes of this Agreement, Disability is defined as a condition where the Officer (i) is unable to engage in any substantial gainful activity by
reason 

  
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of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or
(ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than 3 months under an accident and health plan covering employees of the Company. The Board, in its sole discretion, shall determine whether a Participant has incurred a Disability and its determination shall be binding for
purposes of this Plan. 
 (b) Termination by the Company for Cause. The Officer’s employment may be terminated at any time
without further liability on the part of the Company effective immediately by a two-thirds vote of the Board of Directors of the Company for Cause by written notice to the Officer setting forth in reasonable detail the nature of such Cause: 

(i) Continued failure by the Officer for reasons other than Disability to follow reasonable instructions of the Chief Executive Officer of
the Company or policies of the Board of Directors of the Company after being advised in writing of such failure, including specific actions or inaction on the part of the Officer and the particular instruction or policy involved, and if both
reasonable and feasible, being given a reasonable opportunity and period (as determined by the Board of Directors of the Company) to remedy such failure; 

(ii) Conviction of a felony or any crime of moral turpitude; 

(iii) Commission of an act of embezzlement or fraud against the Company or any subsidiary or Affiliate thereof; 

(iv) Any act or omission constituting dishonesty of the Officer with respect to the Company or any subsidiary or Affiliate thereof; and/or

 (v) Any other willful or reckless conduct which substantially harms the reputation and/or interest of the Company, any subsidiary or
Affiliate, and/or its/or their directors, officers or employees. 
 (c) Termination by Company Without Cause. In the event that the
Company terminates Officer’s employment during the Employment Period for any reason that does not constitute Cause, as determined by the Administrator, Officer shall be entitled to receive the Accrued Obligations, Salary Continuance Benefit,
and Welfare Continuance Benefit under the terms defined in Section 6. For purposes of this subsection, the determination of whether a termination or resignation is Without Cause shall be made by the individual who served as Chief Executive
Officer of Monarch Financial Holdings, Inc. immediately prior to the Change in Control event, or such other individual or committee to whom this Chief Executive Officer delegates this responsibility (the party responsible for making this
determination referred to hereinafter as the “Administrator”). 

  
 3 

 (d) Resignation by Officer for Good Reason. In the event that Officer resigns for Good
Reason, as defined below, during the Employment Period, Officer shall be entitled to receive the Accrued Obligations, Salary Continuance Benefit, and Welfare Continuance Benefit under the terms defined in Section 6. For this purpose, “Good
Reason” shall mean Officer’s resignation of employment within six months of the initial existence of any of the following conditions: 

(i) A material diminution in the Officer’s Annual Base Salary and or contractual incentive plan; or 

(ii) A material diminution in the Officer’s authority, duties, or responsibilities; or 

(iii) A material diminution in the budget over which the Officer retains authority. 

(iv) A material change in the geographic location at which the Officer must perform services, the Company requiring Officer to be based at any
office or location that is located more than thirty five miles from the office or location in which Officer was employed immediately prior to the Change in Control; or 

(v) Any other action or inaction that constitutes a material breach by the Company of this Agreement or the Officer’s employment
agreement, if any. 
 For purposes of this subsection, the determination of whether a termination or resignation is for Good Reason shall be
made by the individual who served as Chief Executive Officer of Monarch Financial Holdings, Inc. immediately prior to the Change in Control event, or such other individual or committee to whom this Chief Executive Officer delegates this
responsibility (the party responsible for making this determination referred to as the “Administrator”). Notwithstanding the foregoing sentence, Officer’s resignation may not be deemed to occur for Good Reason unless: the Officer
provides the Company notice within 90 days of the initial existence of a condition listed in paragraphs (i)-(vi) above; the Officer allows the Company 30 days from the date of such notice to rectify the condition; and the Company fails to
timely rectify the condition. 
 (e) Notice of Termination. Any termination during the Employment Period by Company or by Officer
shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement
relied upon. 
 (f) Date of Termination. “Date of Termination” means (i) if Officer’s employment is terminated by
Company for Cause, or by Officer for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if Officer’s employment is terminated by Company other than for Cause, the
date specified in the Notice of Termination (which shall not be less than 30 nor more than 60 days from the date such Notice of Termination is given). 

  
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 6. Compensation Upon Termination by Company Without Cause or by Officer for Good Reason.
Officer will be entitled to the following benefits if, during the Employment Period, Company terminates his employment without Cause or Officer terminates his employment with Company or any affiliated company for Good Reason: 

(a) Accrued Obligations. The sum of (1) Officer’s annual base salary as indicated in section 4 (b)(i), to the extent not yet
paid through the Date of Termination; (2) the amount, if any, of any incentive or bonus compensation theretofore earned which has not yet been paid, if applicable; and (3) any benefits or awards (including both cash and stock components)
which pursuant to the terms of any plans, policies or programs have been earned or become payable, but which have not yet been paid to Officer (but not including amounts that previously had been deferred at Officer’s request, which amounts will
be paid in accordance with Officer’s existing directions). The Accrued Obligations will be paid to Officer in a lump sum cash payment within ten days after the Date of Termination; 

(b) Salary Continuance Benefit. The Salary Continuance Benefit is an amount equal to two (2) times Officer’s Final
Compensation up to a maximum of $1,000,000. For purposes of this agreement, “Final Compensation” means the Annual Base Salary disclosed in section 4(b), plus the highest average annual bonus or other variable compensation paid or payable
for the two most recently completed years and any amount contributed by Officer during the most recently completed year pursuant to a salary reduction agreement or any other program that provides for pre-tax salary reductions or compensation
deferrals. The Salary Continuance Benefit will be paid to Officer in a lump sum cash payment not later than the 45th day following the Date of Termination; and 

(c) Welfare Continuance Benefit. For 12 months following the Date of Termination, Officer and his dependents will continue to be
covered under all health and dental plans, disability plans, life insurance plans and all other welfare benefit plans (as defined in Section 3(1) of ERISA) (“Welfare Plans”) in which Officer or his dependents were participating
immediately prior to the Date of Termination (the “Welfare Continuance Benefit”). The Company will pay all or a portion of the cost of the Welfare Continuance Benefit for Officer and his dependents under the Welfare Plans on the same basis
as applicable, from time to time, to active employees covered under the Welfare Plans and Officer will pay any additional costs. If participation in any one or more of the Welfare Plans included in the Welfare Continuance Benefit is not possible
under the terms of the Welfare Plan or any provision of law would create an adverse tax effect for Officer or the Company due to such participation, the Company will provide substantially identical benefits directly through COBRA or through an
insurance arrangement. If Officer or his dependents receive continuation coverage through COBRA or any other insurance plan, the Company must pay all reimbursements to the Officer pursuant to this paragraph on or before the last day of the month
following the month in which the expense is incurred. Officers may not exchange the right to reimbursement or to an in-kind benefit for another reimbursement or benefit and may not receive cash in lieu of an in-kind benefit or right to
reimbursement. The Welfare Continuance Benefit as to any Welfare Plan will cease if and when Officer has obtained coverage under one or more welfare benefit plans of a subsequent employer that provides for equal or greater benefits to Officer and
his dependents with respect to the specific type of benefit. 

  
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 7. Compensation Upon Death, Disability, Termination For Cause by Company, or Termination by
Officer without Good Reason. Officer will be entitled to the following benefits if one of the following events occurs during the Employment Period: 

(a) Death. If Officer dies during the Employment Period, this Agreement will terminate without any further obligation on the part of
Company under this Agreement, other than for (i) payment of the Accrued Obligations and six months of Officer’s Annual Base Salary (which shall be paid to Officer’s beneficiary designated in writing or his estate, as applicable, in a
lump sum cash payment within 30 days of the date of death); (ii) the timely payment or provision of the Welfare Continuance Benefit to Officer’s spouse and other dependents for 12 months following the date of death; and (iii) the
timely payment of all death and retirement benefits pursuant to the terms of any plan, policy or arrangement of Company and its affiliated companies. 

(b) Disability. If Officer incurs a Disability during the Employment Period, this Agreement will terminate without any further
obligation on the part of Company under this Agreement, other than for (1) payment of the Accrued Obligations in a lump sum cash payment within 30 days of the date of Disability; (2) a payment in an amount equivalent to six months of the
Annual Base Salary in a lump sum cash payment within 30 days of the date of Disability; and (3) the timely payment or provision of the Welfare Continuance Benefit to Officer and/or Officer’s spouse and other dependents for 12 months
following the date of Disability. 
 (c) Cause; Other than for Good Reason. If Officer’s employment is terminated by the Company
for Cause or by the Officer without Good Reason during the Employment Period, this Agreement will terminate without further obligation to Officer other than the payment to Officer of the Annual Base Salary through the Date of Termination, plus the
amount of any compensation previously deferred by Officer and any other benefits to which Officer may be entitled pursuant to the terms of any plan, program or arrangement of Company and its affiliated companies, all of which will be paid in a lump
sum in cash within 30 days of the Date of Termination. 
 8. Compliance with Section 409A of the Internal Revenue Code 

(a) Six Month Delay in Payments. If the Officer is a specified employee of a publicly traded corporation as defined in
Section 409A(a)(2)(B)(i) of the Code, and any payment or provision of any benefit in this Agreement is subject to Section 409A, then such payment or provision of benefits in connection with a separation from service payment event (as
determined by Section 409A of the Code), as opposed to another payment event permitted under Section 409A, or an amount payable that is not subject to 409A, shall not be made until the first day of the month following the six month
anniversary of the Officer’s separation from service. In the case or installment or periodic payments, the first payment shall include a “catch-up” amount equal to the sum of payments that would have been made to the Officer during
the period preceding the first payment date if no 6-month delay had applied. 

  
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 (b) Compliance with Section 409A of the Code. Any benefit, payment or other right
provided by the Agreement shall be provided or made in a manner, and at such time, in such form and subject to such election procedures (if any), as complies with the applicable requirements of Code section 409A to avoid a failure described in Code
section 409A(a)(1), including without limitation, deferring payment until the occurrence of a specified payment event described in Code section 409A(a)(2). Notwithstanding any other provision hereof or document pertaining hereto, the Agreement shall
be so construed and interpreted to meet the applicable requirements of Code section 409A to avoid a failure described in Code section 409A(a)(1). Each payment contemplated under this Agreement shall be deemed a separate payment for purposes of Code
section 409A. 
 9. Binding Agreement; Successors 

(a) This Agreement will be binding upon and inure to the benefit of Officer (and his personal representative), Company and any successor
organization or organizations which shall succeed to substantially all of the business and property of Company, whether by means of merger, consolidation, acquisition of all or substantially of all of the assets of Company or otherwise, including by
operation of law. 
 (b) Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken place.

 (c) For purposes of this Agreement, the term “Company” includes any subsidiaries of Company and any corporation or other entity
which is the surviving or continuing entity in respect of any merger, consolidation or form of business combination in which Company ceases to exist; provided, however, that for purposes of determining whether a Change in Control has occurred
herein, the term “Company” refers to Company or its successors. 
 (d) This Agreement supersedes and replaces any previous Change
of Control Agreements, or any similar agreements between Officer and Company. 
 10. Fees and Expenses; Mitigation 

(a) Should either party find it necessary to seek enforcement of any provision hereof, the prevailing party in such action shall be entitled
to his or its costs and expenses, including reasonable attorneys’ fees, up to a maximum of $30,000. 
 (b) Officer shall not be
required to mitigate the amount of any payment Company becomes obligated to make to Officer in connection with this Agreement, by seeking other employment or otherwise. Except as specifically provided above with respect to the Welfare Continuance
Benefit, the amount of any payment provided for in Section 6 shall not be reduced, offset or subject to recovery by Company by reason of any compensation earned by Officer as the result of employment by another employer after the Date of
Termination, or otherwise. 

  
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 11. No Employment Contract. Nothing in this Agreement will be construed as creating an
employment contract between Officer and Company prior to Change in Control. 
 12. Notice. Any notices and other communications
provided for by this Agreement will be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid (in which case notice will be deemed to have been given on the third day after mailing), or by overnight
delivery by a reliable overnight courier service (in which case notice will be deemed to have been given on the day after delivery to such courier service). Notices to Company shall be directed to the Chief Executive Officer of Monarch Financial
Holdings, Inc.. Notices to Officer shall be directed to his last known address. 
 13. Definition of a Change in Control. For
purposes of this Agreement, a “Change in Control” means: 
 (a) The acquisition by any Person of beneficial ownership of 50% or
more of the combined voting power of Monarch’s then outstanding shares of common stock; 
 (b) Individuals who constitute the Board of
Directors on the date of this Agreement (the “Incumbent Board”) cease to constitute a majority of the Board of Directors, provided that any director whose nomination was approved by a vote of at least two-thirds of the directors then
comprising the Incumbent Board will be considered a member of the Incumbent Board, but excluding any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the
directors of Monarch (as such terms are used in Rule 14a-11 promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”)); 

(c) Approval by the shareholders of the Company of a reorganization, merger, share exchange or consolidation (a “Reorganization”),
provided that shareholder approval of a Reorganization will not constitute a Change in Control if, upon consummation of the Reorganization, each of the following conditions is satisfied: 

(i) more than 49% of the then outstanding shares of common stock of the corporation resulting from the Reorganization is beneficially owned
by all or substantially all of the former shareholders of the Company in substantially the same proportions as their ownership existed in the Company immediately prior to the Reorganization; 

(ii) no Person beneficially owns 49% or more of either (1) the then outstanding shares of common stock of the corporation resulting from
the transaction, or (2) the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors; and 

(iii) at least fifty-one percent of the members of the board of directors of the corporation resulting from the Reorganization were members
of the Incumbent Board at the time of the execution of the initial agreement providing for the Reorganization. 

  
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 (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of the
Company, or of the sale or other disposition of all or substantially all of the assets of the Company. 
 (e) For purposes of this
Agreement, “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) of the Exchange Act, other than any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliated
company, and “beneficial ownership” has the meaning given the term in Rule 13d-3 under the Exchange Act. 
 14.
Confidentiality 
 (a) Officer agrees to hold and safeguard as confidential and proprietary information any information about Company
and its subsidiaries gained by Officer during the course of Officer’s employment. Officer shall not, without the prior written consent of Company, misappropriate, disclose or make available to anyone for use outside Company’s and its
subsidiaries’ organization at any time, either during his employment or subsequent to any termination of his employment, however such termination is effected, whether by Officer or Company, with or without cause, any information about Company
and its subsidiaries or its customers or suppliers, whether or not such information was developed by Officer, except as required in the performance of Officer’s duties for Company and its subsidiaries. 

(b) Officer understands and agrees that any information about Company and its subsidiaries or Company’s and its subsidiaries’
customers is the property of Company or its subsidiaries and is essential to the protection of Company’s and its subsidiaries’ goodwill and to the maintenance of Company’s and its subsidiaries’ competitive position and
accordingly should be kept secret. Such information shall include, but not be limited to, information containing Company’s and its subsidiaries’ promotional plans and strategies, pricing strategies, customers and prospective customers,
customer lists, identity of key personnel in the employ of customers and prospective customers, computer programs, system documentation, manuals, ideas, or any other records or information belonging to Company and its subsidiaries or relating to
Company’s and its subsidiaries’ business. 
 (c) Officer and Company agree that irreparable injury will result to Company in the
event Officer violates any restrictive covenant or affirmative obligation contained in this Agreement, and Officer acknowledges that the remedies at law for any breach by Officer of such provisions will be inadequate and that Company shall be
entitled to injunctive relief against Officer, in addition to any other remedy that is available, at law or in equity. 
 15.
Miscellaneous. No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in a writing signed by Officer and the President and Chief Executive Officer of
Monarch Financial Holdings, Inc.. No waiver by either party hereto at any time of any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same or at any prior 

  
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or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set
forth in this Agreement. 
 16. Governing Law. The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the Commonwealth of Virginia, specifically the City of Chesapeake. 
 17. Validity. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by Company by its duly authorized officer, and by Officer, as of
the date first above written. 
  

							
					MONARCH BANK
				
					By:		 /s/ Brad E. Schwartz

							Brad E. Schwartz
				
	 TITLE: Chief Executive Officer
						
			
					OFFICER:
				
					By:		 /s/ William T. Morrison

							William T. Morrison

  
 10EX-4.1

 Exhibit 4.1 
  

 
  

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

4.000% Senior Notes due 2020 
  

 
 Supplemental
Indenture 
 Dated as of February 9, 2015 
  

 
 AMERICAN
STOCK TRANSFER & TRUST COMPANY, LLC, 
 Trustee 
  

 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	
	ARTICLE ONE	  
	
	SCOPE OF SUPPLEMENTAL INDENTURE	 
			
	Section 1.01.	 	General.	  	 	1	 
	Section 1.02.	 	Specified Modifications in Respect of the Notes.	  	 	2	 
	
	ARTICLE TWO	  
	
	CERTAIN DEFINITIONS	 
	
	ARTICLE THREE	  
	
	COVENANTS	 
			
	Section 3.01.	 	Limitations on Secured Debt.	  	 	10	 
	Section 3.02.	 	Restrictions on Sale and Leaseback Transactions.	  	 	11	 
	Section 3.03.	 	Offer to Purchase upon Change of Control Triggering Event.	  	 	12	 
	
	ARTICLE FOUR	  
	
	MISCELLANEOUS	 
			
	Section 4.01.	 	Governing Law.	  	 	13	 
	Section 4.02.	 	No Adverse Interpretation of Other Agreements.	  	 	14	 
	Section 4.03.	 	No Recourse Against Others.	  	 	14	 
	Section 4.04.	 	Successors and Assigns.	  	 	14	 
	Section 4.05.	 	Duplicate Originals.	  	 	14	 
	Section 4.06.	 	Severability.	  	 	14	 
			
	 Exhibit A
	 	 Form of Security
	  			
	 Exhibit B
	 	 Form of Notification Security of Guarantee
	  			

  
 -i- 

 Eighth Supplemental Indenture dated as of February 9, 2015 (“Supplemental
Indenture”), to the Indenture dated as of May 1, 2012 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”), by and among D.R. Horton, Inc., a Delaware corporation (the
“Company”), each of the subsidiaries of the Company that are signatories hereto as the initial guarantors (the “Initial Guarantors”) and American Stock Transfer & Trust Company, LLC, as trustee (including
any successor replacing such person in accordance with the applicable provisions of the Indenture, the “Trustee”). 
 Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of Notes (each as defined herein): 

WHEREAS, the Company and the Trustee have duly authorized the execution and delivery of the Base Indenture to provide for the issuance from
time to time of senior debt securities (the “Securities”) to be issued in one or more Series as in the Base Indenture provided; 

WHEREAS, the Company and the Initial Guarantors desire and have requested the Trustee to join them in the execution and delivery of this
Supplemental Indenture in order to establish and provide for the issuance by the Company of a Series of Securities designated as its 4.000% Senior Notes due 2020, substantially in the form attached hereto as Exhibit A (including any
Additional Notes, as defined below, the “Notes”), initially guaranteed by the Initial Guarantors, on the terms set forth herein; 

WHEREAS, Section 2.01 of the Base Indenture provides that a supplemental indenture may be entered into by the Company, the Initial
Guarantors and the Trustee for such purpose provided certain conditions are met; 
 WHEREAS, the conditions set forth in the Base Indenture
for the execution and delivery of this Supplemental Indenture have been complied with; and 
 WHEREAS, all things necessary to make this
Supplemental Indenture a valid agreement of the Company, the Initial Guarantors and the Trustee, in accordance with its terms, and a valid amendment of, and supplement to, the Base Indenture have been done; 

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

Scope of Supplemental Indenture 
  

	Section 1.01.	General. 

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

 Pursuant to this Supplemental Indenture, there is hereby created and designated the Notes as a
Series of Securities under the Base Indenture entitled “4.000% Senior Notes due 2020.” The Notes shall be substantially in the form of Exhibit A hereto and will mature and bear interest as provided in such form and have the other
terms and conditions set forth therein, this Supplemental Indenture and the Base Indenture (to the extent not superseded hereby). The Company shall pay interest on overdue principal at 4.000%; it shall pay interest on overdue installments of
interest at 4.000%. The Notes shall be guaranteed by the Guarantors as provided in the form of Exhibit B hereto. The Trustee will initially be the Registrar and Paying Agent for the Notes, and DTC will initially be the Depositary for the
Notes. The covenants provided in Article Three of this Supplemental Indenture are applicable (unless waived or amended as provided in the Base Indenture) so long as the Notes are outstanding or until defeasance or other discharge pursuant to
the Base Indenture. An aggregate principal amount of $500.0 million of Notes will be issued on the Issue Date. Additional Notes (the “Additional Notes”) in an unlimited amount may be issued in one or more issuances from time to time
on the same terms and conditions, except for issue date, and if applicable, the issue price and the first interest payment, either of which may differ from the respective terms of the previously issued Notes of same Series, and with the same CUSIP
numbers as the Notes offered hereby (to the extent permissible under applicable law) without the consent of Holders of the Notes, except that if any Additional Notes are not fungible with the Notes issued on the Issue Date for U.S. federal income
tax purposes, such Additional Notes will have a separate CUSIP number. The Notes initially issued hereunder and any such Additional Notes shall vote on all matters, and otherwise be treated as, a single Series for all purposes under the Indenture.

  

	Section 1.02.	Specified Modifications in Respect of the Notes. 

 (1) Article Six of the Base Indenture
shall apply in respect of the Notes; provided that with respect to clause (3) under the first paragraph and the second paragraph of Section 6.01 of the Base Indenture, Section 3.03 hereof shall be deemed such specified
provision which breach thereof shall constitute, together with Article Five of the Base Indenture, an Event of Default with notice but without passage of time. 

(2) Section 7.05 of the Base Indenture shall apply in respect of the Notes; provided that the Trustee shall not have any
discretion to withhold any notice of the Default with respect to any breach of Section 3.03 hereof, irrespective of any determination that withholding of such notice is in the interest of the Holders of the Notes. 

(3) Article Ten of the Base Indenture shall apply in respect of the Notes; provided that, notwithstanding anything to the contrary in
the Base Indenture and this Supplemental Indenture, any amendment or waiver of Section 3.03 hereof (prior to the occurrence of a Change of Control Triggering Event) will require consent of Holders of a majority of the outstanding principal
amount of Notes. 
 ARTICLE TWO 

Certain Definitions 
 The
following terms have the meanings set forth below in this Supplemental Indenture. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the Base Indenture. To the extent terms defined herein differ from the Base
Indenture the terms defined herein will govern. 
 “Attributable Debt” means, in respect of a Sale and Leaseback
Transaction, the present value (discounted at the weighted average effective interest cost per annum of the outstanding debt of the Company, compounded semiannually) of the obligation of the lessee for rental payments during the

  
 -2- 

 
remaining term of the lease included in such transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended or, if earlier, until the
earliest date on which the lessee may terminate such lease upon payment of a penalty (in which case the obligation of the lessee for rental payments shall include such penalty), after excluding all amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water and utility rates and similar charges. 
 “Change of Control”
means: 
 (1) any sale, lease or other transfer (in one transaction or a series of transactions) of all or substantially all
of the consolidated assets of the Company and its Subsidiaries to any Person (other than a Subsidiary of the Company); provided, however, that a transaction where the holders of all classes of Voting Stock of the Company immediately
prior to such transaction own, directly or indirectly, Voting Stock representing more than 50% of the voting power of all Voting Stock of such Person immediately after such transaction shall not be a Change of Control; 

(2) a “person” or “group” (within the meaning of Section 13(d) of the Exchange Act (other than
(x) the Company or (y) Donald R. Horton, Terrill J. Horton, or their respective wives, children, grandchildren and other descendants, or any trust or other entity formed or controlled by any of such individuals (each an “Excluded
Person”))) publicly discloses, including, without limitation, by filing a Schedule 13D or Schedule TO, or the Company or any of its Subsidiaries publicly discloses, including without limitation, by filing any other schedule, form or report
under the Exchange Act (including, without limitation, a Current Report on Form 8-K), facts indicating that such person or group has become the ultimate “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of Voting Stock
of the Company representing more than 50% of the voting power of the Voting Stock of the Company; or 
 (3) the stockholders
of the Company approve any plan or proposal for the liquidation or dissolution of the Company; provided, however, that a liquidation or dissolution of the Company that is part of a transaction that does not constitute a Change of
Control under the proviso contained in clause (1) above shall not constitute a Change of Control. 
 Any person or group whose
acquisition of beneficial ownership constitutes a Change of Control under clause (2) of the foregoing definition in respect of which a Change of Control Offer is made in accordance with the requirements of the Indenture will thereafter,
together with its Affiliates, constitute an additional Excluded Person. 
 “Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Ratings Downgrade Event. 
 “Comparable Treasury Issue” means the United
States Treasury security selected by at least two Reference Treasury Dealers as having a maturity comparable to the remaining term of the Notes that would be utilized at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 
 “Comparable Treasury
Price” means, with respect to any redemption date, (a) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount, on the third business day preceding such
redemption date, as set forth in the daily statistical release (or any successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (b) if such
release (or any successor release) is not published or does not contain such price on such business day, (i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 

  
 -3- 

 “Consolidated Adjusted Tangible Assets” of the Company as of any date means the
Consolidated Tangible Assets of the Company and the Guarantors at the end of the fiscal quarter immediately preceding such date less (a) the book value of any assets securing any Non-Recourse Indebtedness, and (b) all short term
liabilities of the Company and the Guarantors, except for liabilities payable by their terms more than one year from the date of determination (or renewable or extendible at the option of the obligor to a maturity date more than one year after such
date) and liabilities in respect of retiree benefits other than persons for which the Company or the Guarantors are required to accrue pursuant to Accounting Standards Codification 715-60 (or any successor provision), in each case as determined in
accordance with GAAP. 
 “Consolidated Tangible Assets” of the Company as of any date means the book value of the total
assets of the Company and the Guarantors (less applicable reserves) on a consolidated basis at the end of the fiscal quarter immediately preceding such date, less: (1) Intangible Assets and (2) appropriate adjustments on account of
minority interests of other Persons holding equity investments in Guarantors, in each case as determined in accordance with GAAP. 

“Fitch” means Fitch Ratings. 

“GAAP” means generally accepted accounting principles set forth in the accounting standards codification of the Financial
Accounting Standards Board or in such other statements by such or any other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the Issue Date. 

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

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

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

CHI Construction Company, an Arizona corporation; 

CHTEX of Texas, Inc., a Delaware corporation; 

Continental Homes, Inc., a Delaware corporation; 

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

Continental Residential, Inc., a California corporation; 

D.R. Horton — Crown, LLC (f/k/a DRH Regrem XXVII, LLC), a Delaware limited liability company; 

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

D.R. Horton — Regent, LLC (f/k/a DRH Regrem XXVI, LLC), a Delaware limited liability company; 

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

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

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

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

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

D.R. Horton, Inc. — Fresno, a Delaware corporation; 

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

D.R. Horton, Inc. — Gulf Coast (f/k/a DRH Regrem V, Inc.), a Delaware corporation; 

D.R. Horton, Inc. — Huntsville (f/k/a DRH Regrem XIII, Inc.), a Delaware corporation; 

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

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

  
 -4- 

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

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

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

D.R. Horton, Inc. — Sacramento, a California corporation; 

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

D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.), a Delaware corporation; 

D.R. Horton BAY, Inc. (f/k/a D.R. Horton OCI, Inc., D.R. Horton Orange County Inc. and DRH Regrem IX, Inc.), a Delaware corporation; 

D.R. Horton Cruces Construction, Inc. (f/k/a DRH Regrem XI, Inc.), a Delaware corporation; 

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

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

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

D.R. Horton Serenity Construction, LLC (f/k/a DRH Regrem VIII, LLC), a Delaware limited liability company; 

D.R. Horton VEN Inc. (f/k/a D.R. LAV Inc. and D.R. Horton San Diego Holding Company, Inc.), a California corporation; 

DRH Cambridge Homes, Inc., a California corporation; 

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

DRH Construction, Inc., a Delaware corporation; 

DRH Regrem VII, LP, a Texas limited partnership; 

DRH Regrem XII, LP, a Texas limited partnership; 

DRH Regrem XIV, Inc., a Delaware corporation; 

DRH Regrem XV, Inc., a Delaware corporation; 

DRH Regrem XVI, Inc., a Delaware corporation; 

DRH Regrem XVII, Inc., a Delaware corporation; 

DRH Regrem XVIII, Inc., a Delaware corporation; 

DRH Regrem XIX, Inc., a Delaware corporation; 

DRH Regrem XX, Inc., a Delaware corporation; 

DRH Regrem XXI, Inc., a Delaware corporation; 

DRH Regrem XXII, Inc., a Delaware corporation; 

DRH Regrem XXIII, Inc., a Delaware corporation; 

DRH Regrem XXIV, Inc., a Delaware corporation; 

DRH Regrem XXV, Inc. (f/k/a D.R. Horton VEN, Inc. and D.R. Horton Inc. – Los Angeles), a Delaware corporation; 

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

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

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

DRH Southwest Construction, Inc., a California corporation; 

DRH Tucson Construction, Inc., a Delaware corporation; 

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

KDB Homes, Inc., a Delaware corporation; 

Meadows I, Ltd., a Delaware corporation; 

Meadows II, Ltd., a Delaware corporation; 

Meadows VIII, Ltd., a Delaware corporation; 

Meadows IX, Inc., a New Jersey corporation; 

Meadows X, Inc., a New Jersey corporation; 

Melmort Co., a Colorado corporation; 

Melody Homes, Inc., a Delaware corporation; 

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

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

  
 -5- 

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

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

Schuler Mortgage, Inc., a Delaware corporation; 

Schuler Realty Hawaii, Inc., a Hawaii corporation; 

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

SHA Construction LLC, a Delaware limited liability company; 

SHLR of California, Inc., a California corporation; 

SHLR of Colorado, Inc., a Colorado corporation; 

SHLR of Nevada, Inc., a Nevada corporation; 

SHLR of Utah, Inc., a Utah corporation; 

SHLR of Washington, Inc., a Washington corporation; 

SRHI LLC, a Delaware limited liability company; 

SSHI LLC, a Delaware limited liability company; 

Vertical Construction Corporation, a Delaware corporation; 

Western Pacific Funding, Inc., a California corporation; 

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

Western Pacific Housing — Aviara, L.P., a California limited partnership; 

Western Pacific Housing — Boardwalk, LLC, a Delaware limited liability company; 

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

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

Western Pacific Housing — Carmel, LLC, a Delaware limited liability company; 

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

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

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

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

Western Pacific Housing — Culver City, L.P., a California limited partnership; 

Western Pacific Housing — Del Valle, LLC, a Delaware limited liability company; 

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

Western Pacific Housing — Lost Hills Park, LLC, a Delaware limited liability company; 

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

Western Pacific Housing — Mountaingate, L.P., a California limited partnership; 

Western Pacific Housing — Norco Estates, LLC, a Delaware limited liability company; 

Western Pacific Housing — Oso, L.P., a California limited partnership; 

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

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

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

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

Western Pacific Housing — Poinsettia, L.P., a California limited partnership; 

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

Western Pacific Housing — Robinhood Ridge, LLC, a Delaware limited liability company; 

Western Pacific Housing — Santa Fe, LLC, a Delaware limited liability company; 

Western Pacific Housing — Scripps II, LLC, a Delaware limited liability company; 

Western Pacific Housing — Scripps, L.P., a California limited partnership; 

Western Pacific Housing — Seacove, L.P., a California limited partnership; 

Western Pacific Housing — Studio 528, LLC, a Delaware limited liability company; 

  
 -6- 

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

Western Pacific Housing — Torrance, LLC, a Delaware limited liability company; 

Western Pacific Housing — Torrey Commercial, LLC, a Delaware limited liability company; 

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

Western Pacific Housing — Torrey Multi-Family, LLC, a Delaware limited liability company; 

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

Western Pacific Housing — Vineyard Terrace, LLC, a Delaware limited liability company; 

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

Western Pacific Housing — Windflower, L.P., a California limited partnership; 

Western Pacific Housing, Inc., a Delaware corporation; 

Western Pacific Housing, L.P. (f/k/a Western Pacific Housing Co.), a California limited partnership; 

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

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

and (ii) each of the Company’s Subsidiaries that becomes a guarantor of the Notes pursuant to the provisions of the Indenture, in each case until
subsequently released from its Guarantee pursuant to the provisions of the Indenture. 
 “Intangible Assets” means with
respect to the Notes, all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, write-ups of assets over their prior carrying value (other than write-ups which
occurred prior to the Issue Date and other than, in connection with the acquisition of an asset, the write-up of the value of such asset (within one year of its acquisition) to its fair market value in accordance with GAAP) and all other items which
would be treated as intangibles on the consolidated balance sheet of the Company and the Guarantors prepared in accordance with GAAP. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories
of Moody’s); a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company. 
 “Issue
Date” means February 9, 2015, the date on which the Notes are originally issued under this Supplemental Indenture. 

“Moody’s” means Moody’s Investors Service, Inc. 

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

“Permitted Liens” means any Lien: 

(1) incurred or deposits made to secure the performance of tenders, bids, leases, statutory obligations, surety and appeal
bonds, development obligations, progress payments, government contracts, utility services, developer’s or other obligations to make on-site or off-site 

  
 -7- 

 
improvements and other obligations of like nature (exclusive of obligations for the payment of borrowed money but including the items referred to in the parenthetical in clause (i)(a) of the
definition of “Indebtedness”), in each case incurred in the ordinary course of business of the Company and the Guarantors, 

(2) constituting attachment or judgment liens, 

(3) securing Non-Recourse Indebtedness of the Company or any Guarantor; provided that it applies only to the Property
financed out of the net proceeds of such Non-Recourse Indebtedness (and any accessions thereto and proceeds thereof), 
 (4)
securing Purchase Money Indebtedness; provided that it applies only to the Property acquired, constructed or improved with the proceeds of such Purchase Money Indebtedness (and any accessions thereto and proceeds thereof), 

(5) constituting purchase money Liens (including Capitalized Lease Obligations); provided that it applies only to the Property
acquired (and any accessions thereto and proceeds thereof) and the related Indebtedness is incurred within 180 days after the acquisition of such Property, 

(6) constituting the right of a lender or lenders to which the Company or a Guarantor may be indebted to offset against, or
appropriate and apply to the payment of such, Indebtedness any and all balances, credits, deposits, accounts or money of the Company or a Guarantor with or held by such lender or lenders or its affiliates, 

(7) constituting the pledge or deposit of cash or other Property in conjunction with obtaining surety, performance, completion
or payment bonds and letters of credit or other similar instruments or providing earnest money obligations, escrows or similar purpose undertakings or indemnifications in the ordinary course of business of the Company and the Guarantors, 

(8) incurred in connection with pollution control, industrial revenue, water, sewage or other public improvement bonds or any
similar bonds, 
 (9) statutory Liens of landlords and carriers’, warehousemen’s, mechanics’, suppliers’,
materialmen’s, repairmen’s or other Liens imposed by law and arising in the ordinary course of business, 
 (10)
leases or subleases granted to others not materially interfering with the ordinary course of business of the Company and the Guarantors taken as a whole, 

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

  
 -8- 

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

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

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

  
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 “S&P” means Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc. 
 “Sale and Leaseback Transaction” means a sale or transfer made by the Company or a
Guarantor of any Property which is either (a) a manufacturing facility, project club house, amenity center and common area, office building, warehouse or distribution facility whose book value equals or exceeds 1% of Consolidated Adjusted
Tangible Assets as of the date of determination or (b) another Property which exceeds 5% of Consolidated Adjusted Tangible Assets as of the date of determination, if such sale or transfer is made with the agreement, commitment or intention of
leasing such Property to the Company or a Guarantor, provided that “Sale and Leaseback Transaction” shall not include (1) a sale-leaseback transaction relating to a Property entered into within 180 days after the later of
(i) the date of acquisition of such Property by the Company or a Guarantor and (ii) the date of the completion of construction or commencement of full operations on such Property, whichever is later, (2) a sale-leaseback transaction
which has a lease of no more than three years in length or (3) a sale or transfer made to the Company or another Guarantor. 

“Secured Debt” means any Indebtedness of the Company or any Guarantor which is secured by (a) a Lien in any Property of
the Company or a Guarantor (other than property excluded in clause (b)) or (b) a Lien on Capital Stock owned directly or indirectly by the Company or a Guarantor in a corporation or other entity (other than a Non-Guarantor Subsidiary) or
in the rights of the Company or a Guarantor in respect of Indebtedness of a corporation or other entity (other than a Non-Guarantor Subsidiary) in which the Company or a Guarantor owns Capital Stock. The securing in the foregoing manner of any such
Indebtedness which immediately prior thereto was not Secured Debt shall be deemed to be the creation of Secured Debt at the time security is given. For the avoidance of doubt, cash collateralized letters of credit issued under the Revolving Credit
Facility shall not constitute Secured Debt. 
 “Treasury Rate” means, with respect to any redemption date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
redemption date. 
 “Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of
the Exchange Act) as of any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

ARTICLE THREE 

Covenants 
  

	Section 	3.01. Limitations on Secured Debt. 

 The Company will not, and will not cause or permit
any Guarantor to, create, incur, assume or guarantee any Secured Debt unless the Notes are secured equally and ratably with (or prior to) such Secured Debt, provided that the foregoing does not prohibit the creation, incurrence, assumption or
guarantee of: 
 (1) Secured Debt which is secured by Liens on model homes, homes held for sale, homes that are under
construction or under contract for sale, contracts for the sale of homes, land 

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

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

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

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

	Section 3.02.	Restrictions on Sale and Leaseback Transactions. 

 The Company will not, and will not
cause or permit any Guarantor to, enter into any Sale and Leaseback Transaction, unless: 
 (1) notice is promptly given to
the Trustee of the Sale and Leaseback Transaction; 

  
 -11- 

 (2) fair value is received by the Company or a Guarantor for the Property sold
(as determined in good faith pursuant to a resolution of the Board of Directors delivered to the Trustee); and 
 (3) the
Company or a Guarantor, within 365 days after the completion of the Sale and Leaseback Transaction, applies an amount equal to the net proceeds therefrom either: 

(A) to the redemption, repayment or retirement of (a) the Notes or the Securities of any other Series under the Base
Indenture (other than a Series that, pursuant to the applicable supplemental indenture or Authorizing Resolution, does not have the benefit of this Section or its equivalent), including the cancellation by the Trustee of any Securities of any such
Series delivered by the Company to the Trustee, or (b) any other Indebtedness of the Company or any Guarantor (other than Indebtedness which by its terms or the terms of the instrument by which it was issued is subordinate in right of payment
to the Notes or any such other Series), or 
 (B) to the purchase by the Company or a Guarantor of Property substantially
similar to the Property sold or transferred. 
 Without regard to the foregoing, the Company and the Guarantors may enter into a Sale and
Leaseback Transaction if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses (1) through (6) of the first paragraph of Section 3.01
above or Secured Debt in relation to which the Notes have been secured equally and ratably (or on a senior basis)) and (2) all Attributable Debt in respect of Sale and Leaseback Transactions (excluding Attributable Debt in respect of Sale and
Leaseback Transactions satisfying the conditions set forth in clauses (1) and (2) and if the 365 day period referenced therein shall have expired, also clause (3) above) as of the date of determination would not exceed 20% of
Consolidated Adjusted Tangible Assets. 
  

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

 (1) In the event that there
shall occur a Change of Control Triggering Event, except as otherwise provided in Section 3.03(6) hereof, the Company shall make an offer to each Holder of the Notes (the “Change of Control Offer”) to purchase all or any part
of such Holder’s Notes at 101% of the principal amount thereof plus accrued and unpaid interest to the date of purchase (the “Change of Control Purchase Price”) in accordance with the procedures set forth in this
Section 3.03. 
 (2) On or before the thirtieth day after any Change of Control Triggering Event, or, at the Company’s option,
prior to any Change of Control, but after the public announcement of the Change of Control, the Company shall be obligated to make the Change of Control Offer by mailing, or causing to be mailed, to all Holders of Notes, with a copy to the Trustee,
a notice regarding the Change of Control Triggering Event and the Change of Control Offer. The notice shall state the payment date for the repurchase of the Notes, which date shall be no earlier than 30 days and no later than 60 days from the date
such notice is mailed. The notice may, if mailed prior to the date of consummation of the Change of Control, also state that the offer to purchase is conditioned on a Change of Control or Change of Control Triggering Event occurring on or prior to
the payment date specified in the notice. 
 (3) On the payment date of the Change of Control Purchase Price as specified in the notice, the
Company shall, to the extent lawful: 
 (A) accept for payment all Notes or portions of Notes properly tendered and not
withdrawn pursuant to the Change of Control Offer; 

  
 -12- 

 (B) deposit with the Paying Agent an amount equal to the Change of Control
Purchase Price in respect of all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer; and 

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

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

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

Miscellaneous 
  

	Section 4.01.	Governing Law. 

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

  
 -13- 

	Section 4.02.	No Adverse Interpretation of Other Agreements. 

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

 

	Section 4.03.	No Recourse Against Others. 

 All liability (i) described in Paragraph 11 of the
Notes, of any director, officer, employee or stockholder, as such, of the Company and (ii) described in the second paragraph of the guarantees of each Guarantor, of any stockholder, officer, director, employee, incorporator, partner, member or
manager, as such, of any Guarantor, is waived and released. 
  

	Section 4.04.	Successors and Assigns. 

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

 

	Section 4.05.	Duplicate Originals. 

 The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
  

	Section 4.06.	Severability. 

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

  
 -14- 

 SIGNATURES 

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

 

			
	D.R. HORTON, INC.
		
	By:		      

			Bill W. Wheat
			Executive Vice President
			and Chief Financial Officer

 
			
	GUARANTORS:
		
		 	C. RICHARD DOBSON BUILDERS, INC.
		 	CH INVESTMENTS OF TEXAS, INC.
		 	CHI CONSTRUCTION COMPANY
		 	CHTEX OF TEXAS, INC.
		 	CONTINENTAL HOMES, INC.
		 	CONTINENTAL RESIDENTIAL, INC.
		 	D.R. HORTON BAY, INC.
		 	D.R. HORTON CRUCES CONSTRUCTION, INC.
		 	D.R. HORTON, INC. – BIRMINGHAM
		 	D.R. HORTON, INC. – CHICAGO
		 	D.R. HORTON, INC. - DIETZ-CRANE
		 	D.R. HORTON, INC. – FRESNO
		 	D.R. HORTON, INC. – GREENSBORO
		 	D.R. HORTON, INC. – GULF COAST
		 	D.R. HORTON, INC. – HUNTSVILLE
		 	D.R. HORTON, INC. - JACKSONVILLE
		 	D.R. HORTON, INC. – LOUISVILLE
		 	D.R. HORTON, INC. – MINNESOTA
		 	D.R. HORTON, INC. - NEW JERSEY
		 	D.R. HORTON, INC. – PORTLAND
		 	D.R. HORTON, INC. - SACRAMENTO
		 	D.R. HORTON, INC. – TORREY
		 	D.R. HORTON LA NORTH, INC.
		 	D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.
		 	D.R. HORTON MATERIALS, INC.
		 	D.R. HORTON VEN, INC.
		 	DRH CAMBRIDGE HOMES, INC.
		 	DRH CONSTRUCTION, INC.
		 	DRH REGREM XIV, INC.
		 	DRH REGREM XV, INC.
		 	DRH REGREM XVI, INC.
		 	DRH REGREM XVII, INC.
		 	DRH REGREM XVIII, INC.
		 	DRH REGREM XIX, INC.
		 	DRH REGREM XX, INC.
		 	DRH REGREM XXI, INC.
		 	DRH REGREM XXII, INC.
		 	DRH REGREM XXIII, INC.
		 	DRH REGREM XXIV, INC.
		 	DRH REGREM XXV, INC.
		 	DRH SOUTHWEST CONSTRUCTION, INC.
		 	DRH TUCSON CONSTRUCTION, INC.
		 	KDB HOMES, INC.
		 	MEADOWS I, LTD.
		 	MEADOWS II, LTD.
		 	MEADOWS VIII, LTD.
		 	MEADOWS IX, INC.
		 	MEADOWS X, INC.
		 	MELMORT CO.
		 	MELODY HOMES, INC.
		 	SCHULER HOMES OF CALIFORNIA, INC.
		 	SCHULER HOMES OF OREGON, INC.
		 	SCHULER HOMES OF WASHINGTON, INC.
		 	SCHULER MORTGAGE, INC.
		 	SCHULER REALTY HAWAII, INC.
		 	SHLR OF CALIFORNIA, INC.
		 	SHLR OF COLORADO, INC.
		 	SHLR OF NEVADA, INC.

							
			SHLR OF UTAH, INC.
			SHLR OF WASHINGTON, INC.
			VERTICAL CONSTRUCTION CORPORATION
			WESTERN PACIFIC FUNDING, INC.
			WESTERN PACIFIC HOUSING, INC.
			WESTERN PACIFIC HOUSING MANAGEMENT, INC.
				
					By:		      

							Bill W. Wheat
							Executive Vice President and Chief Financial Officer

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

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

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

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

									Bill W. Wheat
									Executive Vice President and Chief Financial Officer
								
	
	DRH CAMBRIDGE HOMES, LLC
	D.R. HORTON SERENITY CONSTRUCTION, LLC
			
			By:		D.R. Horton, Inc. - Chicago, its Member
					
							By:		      

									Bill W. Wheat
									Executive Vice President and Chief Financial Officer
								

 
									
	HPH HOMEBUILDERS 2000 L.P.
	WESTERN PACIFIC HOUSING, L.P.
	WESTERN PACIFIC HOUSING-ANTIGUA, LLC
	WESTERN PACIFIC HOUSING-AVIARA, L.P.
	WESTERN PACIFIC HOUSING-BOARDWALK, LLC
	WESTERN PACIFIC HOUSING-BROADWAY, LLC
	WESTERN PACIFIC HOUSING-CANYON PARK, LLC
	WESTERN PACIFIC HOUSING-CARMEL, LLC
	WESTERN PACIFIC HOUSING-CARRILLO, LLC
	WESTERN PACIFIC HOUSING-COMMUNICATIONS HILL, LLC
	WESTERN PACIFIC HOUSING-COPPER CANYON, LLC
	WESTERN PACIFIC HOUSING-CREEKSIDE, LLC
	WESTERN PACIFIC HOUSING-CULVER CITY, L.P.
	WESTERN PACIFIC HOUSING-DEL VALLE, LLC
	WESTERN PACIFIC HOUSING-LOMAS VERDES, LLC
	WESTERN PACIFIC HOUSING-LOST HILLS PARK, LLC
	WESTERN PACIFIC HOUSING-MCGONIGLE CANYON, LLC
	WESTERN PACIFIC HOUSING-MOUNTAINGATE, L.P.
	WESTERN PACIFIC HOUSING-NORCO ESTATES, LLC
	WESTERN PACIFIC HOUSING-OSO, L.P.
	WESTERN PACIFIC HOUSING-PACIFIC PARK II, LLC
	WESTERN PACIFIC HOUSING-PARK AVENUE EAST, LLC
	WESTERN PACIFIC HOUSING-PARK AVENUE WEST, LLC
	WESTERN PACIFIC HOUSING-PLAYA VISTA, LLC
	WESTERN PACIFIC HOUSING-POINSETTIA, L.P.
	WESTERN PACIFIC HOUSING-RIVER RIDGE, LLC
	WESTERN PACIFIC HOUSING-ROBINHOOD RIDGE, LLC
	WESTERN PACIFIC HOUSING-SANTA FE, LLC
	WESTERN PACIFIC HOUSING-SCRIPPS, L.P.
	WESTERN PACIFIC HOUSING-SCRIPPS II, LLC
	WESTERN PACIFIC HOUSING-SEACOVE, L.P.
	WESTERN PACIFIC HOUSING-STUDIO 528, LLC
	WESTERN PACIFIC HOUSING-TERRA BAY DUETS, LLC
	WESTERN PACIFIC HOUSING-TORRANCE, LLC
	WESTERN PACIFIC HOUSING-TORREY COMMERCIAL, LLC
	WESTERN PACIFIC HOUSING-TORREY MEADOWS, LLC
	WESTERN PACIFIC HOUSING-TORREY MULTI-FAMILY, LLC
	WESTERN PACIFIC HOUSING-TORREY VILLAGE CENTER, LLC
	WESTERN PACIFIC HOUSING-VINEYARD TERRACE, LLC
	WESTERN PACIFIC HOUSING-WINDEMERE, LLC
	WESTERN PACIFIC HOUSING-WINDFLOWER, L.P.
	WPH-CAMINO RUIZ, LLC
			
			By:		 Western Pacific Housing Management, Inc.,

its Manager, Member or General Partner

					
							By:		      

									Bill W. Wheat
									Executive Vice President and Chief Financial Officer
								

 
													
	SCHULER HOMES OF ARIZONA LLC
	SHA CONSTRUCTION LLC
			
			By:		 SRHI LLC,
 its Member

					
							By:		 SHLR of Nevada, Inc.
 its
Member

							
											By:		      

													Bill W. Wheat
													Executive Vice President and Chief Financial Officer
												
	
	D.R. HORTON-SCHULER HOMES, LLC
			
			By:		 Vertical Construction Corporation,

its Manager

							
											By:		      

													Bill W. Wheat
													Executive Vice President and Chief Financial Officer
												
	
	SRHI LLC
			
			By:		 SHLR of Nevada, Inc.,
 its
Member

							
											By:		      

													Bill W. Wheat
													Executive Vice President and Chief Financial Officer
												
	
	SSHI LLC
			
			By:		 SHLR of Washington, Inc.,
 its
Member

							
											By:		      

													Bill W. Wheat
													Executive Vice President and Chief Financial Officer
												

 
									
	D.R. HORTON – REGENT, LLC
	D.R. HORTON – CROWN, LLC
	DRH REGREM XXVIII, LLC
	DRH REGREM XXIX, LLC
	DRH REGREM XXX, LLC
			
			By:		D.R. Horton, Inc., its Member
					
							By:		      

									Bill W. Wheat
									Executive Vice President and Chief Financial Officer
								

					
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as Trustee

		
	By:		      

			Name:		Paul H. Kim
			Title:		Assistant General Counsel

 EXHIBIT A 

[FORM OF FACE OF SECURITY] 

[Global Security Legend] 

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

  
 A-1 

			
	No.	  	CUSIP No.:
		  	ISIN No.:

 4.000% SENIOR NOTES DUE 2020 

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

the principal sum of $[        ]
(                    ) Dollars on February 15, 2020. 

Interest Payment Dates: February 15 and August 15 

Record Dates: February 1 and August 1 

Dated: 
  

			
	D.R. HORTON, INC.
		
	By:	 	  

		 	Title:
		
	By:	 	  

		 	Title:

  

			
	Authenticated:
	
	American Stock Transfer & Trust Company, LLC, as Trustee, certifies that this is one of the Securities referred to in the within mentioned Indenture.
		
	By:	 	  

		 	Authorized Signatory

  
 A-2 

 [FORM OF REVERSE SIDE OF SECURITY] 

D.R. HORTON, INC. 

4.000% SENIOR NOTES DUE 2020 

D.R. HORTON, INC., a Delaware corporation (together with its successors and assigns, the “Company”), issued this Security
under an Indenture dated as of May 1, 2012 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”), as supplemented by the Supplemental Indenture dated as of February 9, 2015
(the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), by and among the Company, the Guarantors party thereto and American Stock Transfer & Trust Company, LLC, as trustee (in
such capacity, the “Trustee”), to which reference is hereby made for a statement of the respective rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders and of the terms upon which the
Securities are, and are to be, authorized and delivered. All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them therein. 
  

	1.	Interest. 

 The Company promises to pay interest on the principal amount of this Security
at the rate per annum shown above. The Company will pay interest semiannually on February 15 and August 15 of each year (each, an “Interest Payment Date”), commencing August 15, 2015, until the principal is paid or
made available for payment. Interest on the Securities will accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from February 9, 2015, provided that, if there is no
existing default in the payment of interest, and if this Security is authenticated between a record date referred to on the face hereof and the next succeeding interest payment date, interest shall accrue from such interest payment date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. 
  

	2.	Method of Payment. 

 The Company will pay interest on the Securities (except defaulted
interest, if any, which will be paid on such special payment date to Holders of record on such special record date as may be fixed by the Company) to the persons who are registered Holders of Securities at the close of business on February 1 or
August 1, as the case may be, immediately preceding the applicable interest payment date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and private debts. 
  

	3.	Paying Agent and Registrar. 

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

 

	4.	Optional Redemption. 

 The Company may redeem the Securities at any time or from time to
time, in whole or in part. The redemption price will be equal to the greater of the following amounts: (i) 100% of their principal amount of the Securities being redeemed; and (ii) the present value of the Remaining Scheduled

  
 A-3 

 
Payments on the Securities being redeemed on the redemption date, discounted to the redemption date, on a semiannual basis, at the Treasury Rate plus 50 basis points (0.50%), plus, in each case,
accrued and unpaid interest on such Securities to the redemption date. In determining the redemption price and accrued interest, interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. 

Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be
redeemed at its registered address. Securities in denominations larger than $2,000 may be redeemed in part. On and after the redemption date interest ceases to accrue on Securities or portions of them called for redemption, provided that if the
Company shall default in the payment of such Securities at the redemption price together with accrued interest, interest shall continue to accrue at the rate borne by the Securities. 

 

	5.	Denominations, Transfer, Exchange. 

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

	6.	Persons Deemed Owners. 

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

	7.	Unclaimed Money. 

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

	8.	Amendment, Supplement, Waiver. 

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

	9.	Successor. 

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

  
 A-4 

	10.	Trustee Dealings With Company. 

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

	11.	No Recourse Against Others. 

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

 

	12.	Discharge of Indenture. 

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

	13.	Authentication. 

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

	14.	Abbreviations. 

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

 

	15.	GOVERNING LAW. 

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

	16.	CUSIP and ISIN Numbers. 

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

 

	17.	Copies. 

 The Company will furnish to any Holder upon written request and without charge
a copy of the Indenture and the applicable Authorizing Resolution or supplemental indenture. Requests may be made to: D.R. Horton, Inc., 301 Commerce St., Suite 500, Fort Worth, Texas 76102, Attention: Chief Financial Officer. 

  
 A-5 

	18.	Change of Control Triggering Event. 

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

	19.	Defaults and Remedies. 

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

  
 A-6 

 ASSIGNMENT FORM 

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

					
		 	I or we assign and transfer this Security to	 	
			
		 	  
	 	
		 	(Insert assignee’s social security or tax ID number)	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	  
	 	
		 	(Print or type assignee’s name, address, and zip code)	 	

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

			
	Date:	 	  

			
		
	Your signature:	 	  

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

			
		
	Signature Guarantee:	 	  

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

  
 A-7 

 EXHIBIT B 

[FORM OF NOTATION ON SECURITY OF GUARANTEE] 

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

No past, present or future stockholder, officer, director, employee, incorporator, partner, member or manager, as such, of any of the
Guarantors shall have any liability under the Guarantee by reason of such person’s status as stockholder, officer, director, employee, incorporator, partner, member or manager. Each Holder of a Security by accepting a Security waives and
releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees. 
 Each Holder of
this Security by accepting this Security agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of
the Indenture. 
 THE GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

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

			
	[Signature of Guarantor(s)]
		
	By:	 	  

		 	Name:
		 	Title
		
	By:	 	  

		 	Name:
		 	Title

  
 B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]