As filed with the Securities and Exchange Commission
on September 6, 2023
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
GREEN BRICK PARTNERS, INC.
(Exact name of registrant as specified in its charter)
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| Delaware |
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20-5952523 |
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(State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification Number) |
5501 Headquarters Drive, Suite 300 W
Plano, Texas 75024
(469) 573-6755
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
James R. Brickman
Chief Executive Officer
5501 Headquarters Drive, Suite 300 W
Plano, Texas 75024
(469) 573-6755
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
Copy to:
Kara L. MacCullough, Esq.
Greenberg Traurig, P.A.
401 East Las Olas Boulevard, Suite 2000
Fort Lauderdale, Florida 33301
(954) 765-0500
Approximate date of commencement of proposed sale to the public: From
time to time after the effective date of this Registration Statement.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following box. ☐
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only
in connection with dividend or interest reinvestment plans, check the following box. ☒
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration
statement for the same offering. ☐
If this Form is a registration statement pursuant to General Instruction
I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e)
under the Securities Act, check the following box. ☒
If this Form is a post-effective amendment to a registration statement
filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to
Rule 413(b) under the Securities Act, check the following box. ☐
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions
of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging
growth company” in Rule 12b-2 of the Exchange Act.
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| Large accelerated filer |
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Accelerated filer |
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| Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 7(a)(2)(B) of the Securities Act. ☐
PROSPECTUS
GREEN BRICK PARTNERS, INC.
COMMON STOCK
PREFERRED STOCK
DEPOSITARY SHARES
DEBT SECURITIES
WARRANTS
and
SHARES OF COMMON STOCK
Offered by Selling Stockholders
This prospectus relates to common stock, preferred stock (including
convertible preferred stock), depositary shares (including convertible depositary shares), debt securities (including convertible debt
securities) and warrants for common stock, preferred stock or debt securities which we may offer and sell from time to time in one or
more offerings. The selling stockholders may also offer and sell shares of our common stock from time to time. We will not receive any
of the proceeds from the sale of our shares of common stock by the selling stockholders. We or the selling stockholders may sell these
securities to or through underwriters or dealers, directly to investors or through agents. We will specify the prices, amounts and terms
of the securities and the names of any underwriters, dealers or agents in supplements to this prospectus. You should read this prospectus
and each supplement carefully before you invest. This prospectus may not be used to offer and sell securities unless accompanied by a
prospectus supplement.
Our common stock is listed on the New
York Stock Exchange, or the NYSE, under the symbol “GRBK,” and our preferred stock is listed
on the NYSE, under the symbol “GRBK PRA.” If any other securities offered by this prospectus will be listed on a securities
exchange, such listing will be described in the applicable prospectus supplement.
Investment in our securities involves risks, including those described
under “Risk Factors” beginning on page 5 of this prospectus. You should carefully
read and consider these risk factors and the risk factors included in the reports that we file under the Securities Exchange Act of 1934,
as amended, in any prospectus supplement relating to specific offerings of securities and in other documents that we file with the Securities
and Exchange Commission.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation
to the contrary is a criminal offense.
The date of this prospectus is September 6,
2023
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
References in this prospectus to “we,”
“us,” “our,” “Green Brick,” or the “Company” mean Green Brick Partners, Inc., a Delaware
corporation, and its consolidated subsidiaries, unless the context otherwise requires.
This prospectus is part of a Registration Statement
on Form S-3, or the Registration Statement, that we filed with the U.S. Securities and Exchange Commission, or SEC, as a “well-known
seasoned issuer” as defined in Rule 405 under the Securities Act of 1933, as amended, using the “shelf” registration
process. Under this shelf registration process, we may sell common stock, preferred stock (including convertible preferred stock), depositary
shares (including convertible depositary shares), debt securities (including convertible debt securities) and warrants for common stock,
preferred stock or debt securities from time to time in one or more offerings. In addition, certain of our stockholders may sell shares
of common stock from time to time in one or more offerings.
This prospectus provides you with a general description
of the securities we and the selling stockholders may offer, which is not meant to be a complete description of each security. Each time
we or any selling stockholder offer, issue or sell securities under this prospectus, we will provide a prospectus supplement containing
specific information about the prices, amounts and terms of that offering. The prospectus supplement may also add to, update or change
information contained in this prospectus. You should read both this prospectus and any prospectus supplement, and any related free writing
prospectus that we prepare, together with additional information described below under the headings “Where You Can Find More Information”
and “Incorporation of Certain Information By Reference.” If there is any inconsistency between the information in this prospectus
and any applicable prospectus supplement or any such free writing prospectus, you should rely on the information in the applicable prospectus
supplement or such free writing prospectus.
You should rely only on the information contained
in or incorporated by reference into this prospectus or any applicable prospectus supplement. Neither we nor the selling stockholders
have authorized anyone to provide you with different information. If anyone provides you with different or inconsistent information, you
should not rely on it. Neither we nor the selling stockholders will make an offer of the securities in any jurisdiction where it is unlawful.
You should assume that the information in this prospectus and any applicable prospectus supplement, and any related free writing prospectus
that we prepare, as well as the information in any document incorporated or deemed to be incorporated into this prospectus and any applicable
prospectus supplement, is accurate only as of the date on the front cover of the documents containing the information.
WHERE YOU
CAN FIND MORE INFORMATION
We file annual, quarterly and current reports,
proxy statements and other information with the SEC, as required by the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). You can review our electronically filed reports, proxy and information statements, and other information regarding us on
the SEC’s Internet site at http://www.sec.gov. The information contained on the SEC’s website is expressly not incorporated
by reference into this prospectus.
Our SEC filings are also available on our website,
www.greenbrickpartners.com. The information on our website is expressly not incorporated by reference into, and does not constitute a
part of, this prospectus.
This prospectus contains summaries of provisions
contained in some of the documents discussed in this prospectus, but reference is made to the actual documents for complete information.
All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to in this prospectus
have been filed or will be filed or incorporated by reference as exhibits to the Registration Statement of which this prospectus is a
part. If any contract, agreement or other document is filed or incorporated by reference as an exhibit to the Registration Statement,
you should read the exhibit for a more complete understanding of the document or matter involved.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to “incorporate by reference”
into this prospectus information we file with the SEC in other documents. This means that we can disclose important information to you
by referring to another document we filed with the SEC. The information relating to us contained in this prospectus should be read together
with the information in the documents incorporated by reference.
We incorporate by reference the documents listed
below that we have previously filed with the SEC (other than any document or portion of any document furnished or deemed furnished and
not filed in accordance with SEC rules, including Items 2.02 and 7.01 of Form 8-K and Item 9.01 related thereto):
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| Commission Filing (File No. 001-33530) |
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Period Covered or Date of Filing |
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Annual Report on Form 10-K
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Year Ended December 31, 2022 (including the information in our Definitive Proxy Statement on Schedule 14A for our 2023 Annual Meeting of Stockholders, to the extent incorporated by reference therein) |
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Quarterly Reports on Form 10-Q
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Quarters ended March 31, 2023 and June 30, 2023 |
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Current Reports on Form 8-K
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February 16, 2023, May 3, 2023, June 14, 2023 and August 2, 2023 |
| Description of our common stock |
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Form 8-A filed on June 13, 2007 pursuant to Section 12(b) of the Exchange Act, as updated by the description of our common stock in Exhibit 4.2 to our Annual Report on Form 10-K filed March 1, 2022, and including any amendment or reports filed thereafter for the purpose of updating such description |
We are also incorporating by reference all additional
documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, including all such documents filed by us after
the date of this prospectus and prior to effectiveness of the Registration Statement and after the date of this prospectus and prior to
the termination of the offering (other than any document or portion of any document furnished or deemed furnished and not filed in accordance
with SEC rules, including Items 2.02 and 7.01 on Form 8-K and Item 9.01 related thereto).
The information incorporated by reference is considered
to be part of this prospectus, and information that we file later with the SEC and incorporate by reference in this prospectus will automatically
update and supersede this previously filed information, as applicable, including information in previously filed documents or reports
that have been incorporated by reference into this prospectus. Any statement so modified or superseded will not be deemed, except as so
modified or superseded, to constitute a part of this prospectus.
We will provide to each person, including any beneficial
owner, to whom a prospectus is delivered, a copy of any or all of the reports or documents that have been incorporated by reference into
this prospectus but not delivered herewith. We will provide such reports or documents upon written or oral request, at no cost to the
requestor. Requests for incorporated reports or documents must be made to:
Green Brick Partners, Inc.
5501 Headquarters Drive, Suite 300 W
Plano Texas, 75024
Telephone: (469) 573-6755
SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This prospectus contains “forward-looking
statements” within the meaning of the securities laws. These forward-looking statements are subject to a number of risks and uncertainties,
many of which are beyond our control. All statements other than statements of historical facts included or incorporated by reference in
this prospectus, including the statements under “The Company” and elsewhere in this prospectus regarding our strategy, future
operations, financial position, estimated revenues, projected costs, prospects, plans, and objectives, are forward-looking statements.
When used in this prospectus, the words “will,” “believe,” “anticipate,” “plan,” “intend,”
“estimate,” “expect,” “project,” and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain these identifying words. Although we believe that our plans, intentions,
and expectations reflected in or suggested by the forward-looking statements we make in this prospectus are reasonable, we cannot assure
you that these plans, intentions, or expectations will be achieved. Forward-looking statements in this prospectus and the documents incorporated
by reference into this prospectus include statements concerning (1) our balance sheet strategy and belief that we have ample liquidity;
(2) our goals and strategies and their anticipated benefits, including expansion into new markets; (3) our intentions and the
expected benefits and advantages of our product and land positioning strategies; (4) our expectations regarding future finished lots,
the quality of those lots and the timing of backlog fulfillment; (5) our beliefs regarding average industry cancellation rates; (6) expectations
regarding our industry and our business in the remainder of 2023 and beyond; (7) the contribution of certain market factors to our
growth; (8) our land and lot acquisition strategy; (9) the sufficiency of our capital resources to support our business strategy
and to service our debt; (10) the impact of new accounting standards and changes in accounting estimates; (11) trends and expectations
regarding sales prices, sales orders, cancellations, construction costs, gross margins, land costs and profitability and future home and
finished lot inventories; (12) our future cash needs; (13) our strategy to utilize leverage to invest in our business; (14) seasonal
factors and the impact of seasonality in future quarters; (15) our expectations regarding access to additional growth capital; (16)
our expectations regarding future land revenue recognition; (17) our ability to adapt to changing market conditions and (18) the disposition
of legal claims and related contingencies.
These forward-looking statements reflect our current
views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors
may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is
anticipated by our forward-looking statements. These risks include, but are not limited to: (1) general economic conditions in our markets,
seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including interest
and unemployment rates that could adversely impact demand for new homes or the ability of our buyers to qualify; (3) shortages, delays
or increased costs of raw materials, or increases in our other operating costs, including costs related to labor, real estate taxes and
insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage
of labor, (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements;
(7) our inability to successfully execute our strategies, including the successful development of our communities within expected
timeframes and the growth and expansion of our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent
employees; (9) government regulation risks; (10) the geographic concentration of our operations; (11) adverse changes in the
availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient
capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and
resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; (17) changes in accounting
standards that adversely affect our reported earnings or financial condition; and (18) those risks set forth under “Risk Factors”
in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
THE COMPANY
Our Business
We are a diversified homebuilding and land development
company. We acquire and develop land and lots and build homes through our eight brands of builders in five major markets. Our core markets
are in the high growth U.S. metropolitan areas of Dallas-Fort Worth (“DFW”) and Austin, Texas, Atlanta, Georgia, as well as
the Treasure Coast, Florida area and Colorado Springs, Colorado. We are engaged in all aspects of the homebuilding process, including
land acquisition and development, entitlements, design, construction, title and mortgage services, marketing and sales and the creation
of brand images at our residential neighborhoods and master planned communities.
We believe we offer higher quality homes with more
distinctive designs and floor plans than those built by our competitors at comparable prices. Many of our communities are located in premium
in-fill and in-fill-adjacent locations and we seek to enhance homebuyer satisfaction by utilizing high-quality materials and building
well-crafted homes. We seek to maximize value over the long term and operate our business to mitigate risks in the event of a downturn
by controlling costs and quickly reacting to regional and local market trends.
We are a leading lot developer in our markets
and believe that our strict operating discipline provides us with a competitive advantage in seeking to maximize returns while minimizing
risk. As of June 30, 2023, we owned or controlled approximately 26,500 home sites in high-growth submarkets throughout the DFW, Austin,
and Atlanta metropolitan areas and the Treasure Coast, Florida market. We provide finished lots to our subsidiary builders or option lots
from third-party developers for our builders’ homebuilding operations and provide them with construction funding and strategic planning.
Corporate Information
Our principal executive offices are located at
5501 Headquarters Drive, Suite 300 W, Plano Texas, 75024. Our telephone number is (469) 573-6755. Our website address is www.greenbrickpartners.com.
Except for any documents that are incorporated by reference into this prospectus that may be accessed from our website, the information
available on or through our website is not part of this prospectus. Green Brick Partners, Inc. was incorporated under the laws of the
State of Delaware on April 11, 2006.
RISK FACTORS
Investing in our securities involves a high degree
of risk that may result in a loss of all or part of your investment. Before making an investment decision, you should carefully review
the risk factors contained under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31,
2022, and any risk factors that we may describe in our other filings with the SEC, including our subsequent Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as other information we include or incorporate by reference in
this prospectus and any accompanying prospectus supplement. If any such risks occur, our business, financial condition or results of operations
could be materially harmed, the market price of our securities could decline and you could lose all or part of your investment.
USE OF PROCEEDS
Unless otherwise indicated in the applicable prospectus
supplement, we anticipate that the net proceeds from the sale of the securities that we may offer under this prospectus and any accompanying
prospectus supplement will be used for general corporate purposes. We will set forth in a prospectus supplement relating to a specific
offering any intended use for the net proceeds received from the sale of securities in that offering. We will have significant discretion
in the use of any net proceeds. Investors will be relying on the judgment of our management regarding the application of the proceeds
of any sale of securities. We may invest the net proceeds temporarily until we use them for their stated purpose. Unless otherwise set
forth in a prospectus supplement, we will not receive any proceeds in the event that the securities are sold by a selling stockholder.
DESCRIPTION
OF CAPITAL STOCK
The following discussion is a summary of the material
terms of our common stock, preferred stock, Charter and bylaws.
Authorized Capital
Our authorized capital stock currently consists
of 100 million shares of common stock, par value $0.01 per share and 5 million shares of preferred stock, par value $0.01 per
share, of which 50,000 shares are designated as 5.75% Series A Cumulative Preferred Stock.
Common Stock
Holders of our common stock are entitled to one
vote for each share held of record on all matters on which stockholders generally are entitled to vote. Holders of our common stock vote
together as a single class on all matters presented to our stockholders for their vote or approval, except as otherwise required by applicable
law.
Holders of our common stock are entitled to receive
dividends when and if declared by our Board of Directors (“Board”) out of funds legally available therefor, subject to any
statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms
of any outstanding preferred stock. We do not intend to pay cash dividends on our common stock for the foreseeable future.
In the event of our dissolution, liquidation or
winding up, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation
preferences, if any, the holders of our common stock will be entitled to receive pro rata our remaining assets available for distribution.
The holders of our common stock have no conversion,
preemptive or other subscription rights. There are no redemption or sinking fund provisions applicable to our common stock.
Common Stock Listing
Our common stock is listed on the NYSE under the
symbol “GRBK”.
Blank Check Preferred Stock
Our Board has the authority, subject to any limitations
imposed by law or the NYSE rules, without further action by the stockholders, to issue up to 5 million shares of preferred stock
in one or more series and to fix the rights, preferences, privileges and restrictions of each series of such preferred stock. As described
below, the Board has authorized 50,000 of these shares of preferred stock as Series A Preferred Stock. These rights, preferences and privileges
include, but are not limited to, dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking
fund terms and the number of shares constituting any series or the designation of that series, any or all of which may be greater than
the rights of common stock.
5.75% Series A Preferred Stock
General.
As of June 30, 2023, there were 2,000 shares of our 5.75%
Series A Cumulative Perpetual Preferred Stock, or our Series A Preferred Stock, issued and outstanding. We have issued and outstanding
2,000,000 depositary shares, each representing a 1/1000th fractional interest in a share of Series A Preferred Stock (our “Series
A Depositary Shares”).
Ranking.
The Series A Preferred Stock, represented by the Series
A Depositary Shares, ranks, with respect to dividend rights and rights upon our liquidation, dissolution or winding-up:
| · | Senior to all classes or series of our common stock and to each other class or series of capital stock
issued with terms specifically providing that such class or series of capital stock ranks senior to or on parity with the Series A Preferred
Stock; |
| · | On parity with each class or series of capital stock issued by us with terms specifically providing
that such class or series of capital stock ranks senior to the Series A Preferred Stock; |
| · | Junior to each class or series of capital stock issued by us with terms specifically providing that
such class or series of capital stock ranks senior to the Series A Preferred Stock; and |
| · | Effectively junior to all our existing and future indebtedness and liabilities of our existing or future
subsidiaries. |
Dividends
Holders of Series A Depositary Shares will be entitled
to receive cumulative cash dividends at the rate of 5.75% of the $25,000.00 liquidation preference per share of the Series A Preferred
Stock (equivalent to a $25.00 liquidation preference per depositary share) per year, i.e., $1,437.50 per year per share of the Series
A Preferred Stock (equivalent to $1.4375 per year per depositary share). Dividends will be payable quarterly in arrears, on or about the
15th day of March, June, September, and December of each year, beginning on or about March 15, 2022. Dividends on the Series A Preferred
Stock underlying the Series A Depositary Shares will continue to accumulate whether or not (i) the terms and provisions of any of
our agreements relating to our indebtedness prohibit the authorization, payment or setting aside for payment of the dividends, (ii) we
have earnings, (iii) we have funds legally available to pay the dividends, or (iii) our Board authorizes the dividends.
Liquidation Preference
In the event of our liquidation, dissolution or winding
up, the holders of Series A Preferred Stock will be entitled to receive the liquidation preference with respect to their shares of Series
A Preferred Stock, plus an amount equal to accrued but unpaid dividends with respect to such shares. The liquidation preference of each
share of Series A Preferred Stock is $25,000.00 per share (equivalent to $25.00 per depositary share).
Optional Redemption
We may not redeem the Series A Preferred Stock prior
to December 23, 2026, except under the circumstances described below. On and after December 23, 2026, we may, at our option, redeem the
Series A Preferred Stock, in whole or in part, at a redemption price equal to $25,000.00 per share of Series A Preferred Stock (equivalent
to $25.00 per depositary share), plus an amount per such share equal to any accrued and unpaid dividends on such share up to, but excluding,
the date fixed for redemption, without interest.
Special Optional Redemption
In the event of a Change of Control (which is defined
below and includes our delisting from either NYSE, NYSE AMER or Nasdaq), we may, at our option, redeem the Series A Preferred Stock, in
whole or in part and within 120 days after the first date on which such Change of Control occurred, by paying $25,000.00 per share of
Series A Preferred Stock (equivalent to $25.00 per depositary share), plus an amount per such share equal to any accrued and unpaid dividends,
but excluding, the date of redemption. To the extent that we exercise our redemption right relating to the Series A Preferred Stock, the
holders of the Series A Preferred Stock will not be permitted to exercise the conversion right described below in respect to their shares
called for redemption.
A “Change of Control” occurs when, after
the original issuance of the Series A Preferred Stock, both of the following have occurred and is continuing:
| · | the acquisition by any person, including any syndicate or group deemed to be a “person”
under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition
transaction or series of purchases, mergers or other acquisition transactions, of shares of our company entitling that person to exercise
more than 50% of the total voting power of all shares of any class or series of capital stock of our company entitled to vote generally
in elections of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has
the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and |
| · | following the closing of any transaction referred to in the bullet point above, neither we nor any acquiring
or surviving entity (or if, in connection with such transaction shares of our common stock are converted into or exchanged for (in whole
or in part) common equity securities of another entity, such other entity) has a class of common securities (or depositary receipts representing
such securities) listed on the NYSE, the NYSE AMER or Nasdaq, or listed or quoted on an exchange or quotation system that is a successor
to the NYSE, the NYSE AMER or Nasdaq. |
Conversion Rights
Within 15 days following the occurrence of a Change of
Control, we will provide notice to holders of the Series A Depositary Shares that (1) notifies holders of the occurrence of the Change
of Control, (2) describes the resulting Change of Control Conversion Right described below and (3) sets forth the Change of Control Conversion
Date (which is not fewer than 20 days nor more than 35 days after the date on which we provide the notice) at which time they can elect
to convert;
On the Change of Control Conversion Date (unless, on
or prior to such date we have provided notice of our election to redeem the Series A Preferred Stock as described above under “—Optional
Redemption” or “—Special Optional Redemption”) each holder of Series A Preferred Stock will have the right to
convert some or all of the Series A Preferred Stock held by such holder into a number of shares of our common stock per depositary share
(the “Common Stock Conversion Consideration”) equal to the lesser of:
| · | the quotient obtained by dividing (1) the sum of the $25.00 per depositary share liquidation preference
plus the amount per such share equal to any accrued and unpaid dividends on such share up to, but excluding, the Change of Control Conversion
Date (unless the Change of Control Conversion Date, is after a record date for a Series A Preferred Stock dividend payment and prior to
the corresponding Series A Preferred Stock dividend payment date, in which case no additional amount for such accrued and then remaining
unpaid dividend will be included in this sum), without interest, by (2) the Common Stock price (such quotient, the “Conversion Rate”);
and |
| · | 1.7059 (i.e., the Share Cap), subject to certain adjustments described below. |
If we have provided a redemption notice whether pursuant
to our special optional redemption right or our optional redemption right, holders of Series A Depositary Shares will not have any
right to convert the underlying Series A Preferred Stock, and any Series A Preferred Stock subsequently selected for redemption that has
been tendered for conversion will be redeemed on the related date of redemption instead of converted on the Change of Control Conversion
Date.
In the case of a Change of Control pursuant to, or in
connection with, which our common stock will be converted into cash, securities or other property or assets (including any combination
thereof) (the “Alternative Form Consideration”), a holder of depositary shares representing interests in Series A Preferred
Stock will receive upon conversion of such Series A Preferred Stock the kind and amount of Alternative Form Consideration which such holder
would have owned or been entitled to receive upon the Change of Control had such holder held a number of shares of our common stock equal
to the Common Stock Conversion Consideration immediately prior to the effective time of the Change of Control (the “Alternative
Conversion Consideration,” and the Common Stock Conversion Consideration or the Alternative Conversion Consideration, as may be
applicable to a Change of Control, is referred to as the “Conversion Consideration”).
Limited Voting Rights
Holders of Series A Preferred Stock generally will have
no voting rights. However, if we do not pay dividends on any outstanding shares of Series A Preferred Stock for six or more quarterly
dividend periods (whether or not declared or consecutive), holders of the Series A Preferred Stock (voting separately as a class together
with the holders of all other classes or series of parity preferred stock upon which like voting rights have been conferred and are exercisable)
will be entitled to vote, at a special meeting called by the holders of record of at least 10% of any series of preferred stock as to
which dividends are so in arrears or at the next annual meeting of stockholders, for the election of two additional directors to serve
on our Board until all dividend arrearages have been paid. In such a case, the number of directors serving on our Board will be increased
by two. In addition, certain material and adverse changes to the terms of the Series A Preferred Stock cannot be made without the affirmative
vote of holders of at least 66 2/3% of the outstanding shares of Series A Preferred Stock, voting as a separate class.
No Maturity, Sinking Fund or Mandatory Redemption
The Series A Preferred Stock has no maturity date and
we are not required to redeem the Series A Preferred Stock at any time. Accordingly, the Series A Preferred Stock will remain outstanding
indefinitely, unless we decide, at our option, to exercise our redemption right or, under circumstances where the holders of the Series
A Preferred Stock have a conversion right, such holders convert the Series A Preferred Stock into our common stock. The Series A Preferred
Stock is not subject to any sinking fund and we are not required to set aside funds to redeem the Series A Preferred Stock.
Depositary Share Listing
Our outstanding Series A Depositary Shares are listed
on the NYSE under the symbol “GRBK PRA”.
Transfer Agent
The transfer agent and registrar for the Series A Preferred
Stock is Continental Stock Transfer & Trust Company.
Anti-Takeover Effects of Our Charter and Bylaws
Our Charter and bylaws contain certain provisions
that are intended to enhance the likelihood of continuity and stability in the composition of our Board. These provisions may have the
effect of delaying, deferring or preventing a future takeover or change in control of our company, even in those cases where such a transaction
may be at a premium to the current market price of our common stock.
These provisions include:
Action by Written Consent; Special Meetings of Stockholders
Our Charter provides that stockholder action
(other than actions by holders of preferred stock, including the Series A Preferred Stock) can be taken only at an annual or special meeting
of stockholders and cannot be taken by written consent in lieu of a meeting. Our bylaws provide that, except as otherwise required by
law, special meetings of the stockholders can only be called by (i) the chairman of the Board, the chief executive officer, and the Board
and (ii) by the Board upon delivery to the secretary of our company of the written request of any stockholder or stockholders of record
holding not less than ten percent (10%) in voting power of the then outstanding shares of capital stock entitled to vote.
Advance Notice Procedure
Our bylaws establish an advance notice procedure
for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of candidates for
election to the Board. Stockholders at an annual meeting will be able to consider only proposals or nominations specified in the notice
of meeting or brought before the meeting by or at the direction of the Board or by a stockholder who was a stockholder of record on the
record date for the meeting, who is entitled to vote at the meeting and who has given our secretary timely written notice, in proper form,
of the stockholder’s intention to bring that business before the meeting. The bylaws may have the effect of precluding the conduct
of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting
a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the Company.
Authorized but Unissued Shares
Subject to NYSE listing requirements, our authorized
but unissued shares of common stock and preferred stock will be available for future issuance without stockholder approval. These additional
shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions
and employee benefit plans. The existence of authorized but unissued shares of common stock and preferred stock may also have the effect
of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our company. For example, we may issue
a class or series of preferred stock that could, depending on the terms of the class or series, impede or discourage an acquisition attempt
or other transaction that some, or a majority, of you might believe to be in your best interests or in which you might receive a premium
for your common stock over the then market price of the common stock.
Certain Other Provisions of Our Charter and Bylaws and Delaware
Law
Board of Directors
Our Charter provides that the number of directors
will be fixed in the manner provided in our bylaws. Our bylaws provide that the number of directors shall not be less than three nor more
than fifteen, the exact number within said limit to be fixed from time to time solely by resolution of the majority of the directors then
in office. Our Board has currently set the number of directors at seven.
Section 203 of the DGCL
Our Charter expressly states that we have elected
not to be subject to the provisions of Section 203 of the Delaware General Corporation Law (the “DGCL”). Subject to exceptions
specified therein, Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a “business combination”
with an “interested stockholder,” including general mergers or consolidations or acquisitions of additional shares of the
corporation, for a three-year period following the time that such stockholder became an interested stockholder.
Except as otherwise specified in Section 203,
an “interested stockholder” is defined to include:
| · | any person (other than the company and any direct or indirect majority-owned subsidiary of the company) that is the owner of 15% or
more of the outstanding voting stock of the corporation, or is an affiliate or associate of the corporation and was the owner of 15% or
more of the outstanding voting stock of the corporation at any time within the three year period immediately prior to the date of determination;
and |
| · | the affiliates and associates of any such person. |
The statute is intended to prohibit or delay mergers
or other takeover or change in control attempts. Although we have elected to opt out of the statute’s provisions, we could elect
to be subject to Section 203 in the future.
Registration Rights Agreement
On October 27, 2014, in connection with
the Company’s acquisition of JBGL Capital Companies and JBGL Builder Finance LLC and its consolidated subsidiaries and affiliated
companies for a combination of cash and shares of the Company’s common stock, the Company entered into a Registration Rights Agreement
(the “Registration Rights Agreement”), with certain affiliates of Greenlight Capital, Inc., James R. Brickman and certain
family members of and trusts affiliated with James R. Brickman (collectively, the “Investor Parties”).
Under the Registration Rights Agreement, the Company
agreed, subject to certain exceptions and limitations, to effect the registration of any shares of common stock beneficially owned by
each of the Investor Parties, their respective affiliates from time to time and certain of their permitted transferees; provided that
the Company will not be obligated to effect the registration of any shares of common stock held by an Investor Party, its respective affiliates
and certain of their permitted transferees that (1) have been sold pursuant to an effective registration statement; (2) have
been sold pursuant to Rule 144 of the Securities Act (or a successor rule); or (3) have become eligible for immediate sale under
Rule 144 of the Securities Act (or a successor rule) without any time or volume limitations thereunder. The Investor Parties, acting either
individually or together, may issue to the Company a written request that the Company effect the registration of all or any portion of
an Investor Party’s common stock (a “Demand Registration”). During every 12-month period, the Investor Parties will
be entitled to two Demand Registrations. In certain circumstances, the Company may postpone effecting a Demand Registration for up to
60 days. In addition, the Investor Parties will have unlimited “piggyback” registration rights, subject to customary cutbacks,
and the ability to require that, after the Company becomes eligible to file a shelf registration statement with the SEC on Form S-3, the
Company shall file such a shelf registration statement and keep it continuously effective until all of the Investor Parties’ common
stock is sold. The Company will pay all expenses of the registered offerings pursuant to the Investor Parties’ exercise of their
registration rights (other than underwriting discounts and commissions with respect to underwritten offerings). The Company’s obligations
to register the common stock held by each Investor Party will terminate when such Investor Party is able to sell all of its respective
common stock without limitation under Rule 144 of the Securities Act. The Registration Rights Agreement contains customary indemnification
provisions. This registration statement complies with our obligations under the Registration Rights Agreement.
Preferred Stock
As discussed above, our Charter authorizes our
Board, without the approval of our stockholders, to establish and issue one or more class or series of shares of preferred stock and to
fix for each such class or series the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends
or other distributions, qualifications, or terms or conditions of redemption of such preferred stock.
Whenever preferred stock is to be sold pursuant
to this prospectus, we will file a prospectus supplement relating to that sale that will specify:
| · | the number of shares in the class or series of preferred stock; |
| · | the designation for the class or series of preferred stock by number, letter or title that shall distinguish the class or series from
any other class or series of preferred stock; |
| · | the initial offering price of such preferred stock; |
| · | the dividend rate, if any, and whether dividends on that class or series of preferred stock will be cumulative, noncumulative or partially
cumulative; |
| · | the voting rights of that class or series of preferred stock, if any; |
| · | any conversion provisions applicable to that class or series of preferred stock; |
| · | any redemption or sinking fund provisions applicable to that class or series of preferred stock and any restrictions thereon; |
| · | the liquidation preference per share of that class or series of preferred stock, if any; and |
| · | the terms of any other preferences or rights, if any, applicable to that class or series of preferred stock. |
DESCRIPTION
OF DEPOSITARY SHARES
We may offer depositary receipts representing
fractional shares of our preferred stock, rather than full shares of preferred stock. The shares of preferred stock represented by depositary
shares will be deposited under a depositary agreement between us and a bank or trust company that meets certain requirements and is selected
by us. Each owner of a depositary share will be entitled to all the rights and preferences of the preferred stock represented by the depositary
share.
The description in an accompanying prospectus
supplement of any depositary shares we offer will not necessarily be complete and will be qualified in its entirety by reference to the
applicable depositary agreement, which will be filed with the SEC if we offer depositary shares. For more information on how you can obtain
copies of any depositary agreement if we offer depositary shares, see "Where You Can Find More Information." We urge you to
read the applicable depositary agreement and any accompanying prospectus supplement in their entirety.
Dividends and Other Distributions
If we pay a cash distribution or dividend on
a class or series of preferred stock represented by depositary shares, the depositary will distribute such dividends to the record holders
of such depositary shares. If the distributions are in property other than cash, the depositary will distribute the property to the record
holders of the depositary shares. However, if the depositary determines that it is not feasible to make the distribution of property,
the depositary may, with our approval, sell such property and distribute the net proceeds from such sale to the record holders of the
depositary shares.
Redemption of Depositary Shares
If we redeem a class or series of preferred
stock represented by depositary shares, the depositary will redeem the depositary shares from the proceeds received by the depositary
in connection with the redemption. The redemption price per depositary share will equal the applicable fraction of the redemption price
per share of the preferred stock. If fewer than all the depositary shares are redeemed, the depositary shares to be redeemed will be selected
by lot or pro rata as the depositary may determine.
Voting the Preferred Stock
Upon receipt of notice of any meeting at which
the holders of the preferred stock represented by depositary shares are entitled to vote, the depositary will mail the notice to the record
holders of the depositary shares relating to such preferred stock. Each record holder of these depositary shares on the record date, which
will be the same date as the record date for the preferred stock, may instruct the depositary as to how to vote the preferred stock represented
by such holder's depositary shares. The depositary will endeavor, insofar as practicable, to vote the amount of the preferred stock represented
by such depositary shares in accordance with such instructions, and we will take all action that the depositary deems necessary in order
to enable the depositary to do so. The depositary will abstain from voting shares of the preferred stock to the extent it does not receive
specific instructions from the holders of depositary shares representing such preferred stock.
Amendment and Termination of the Depositary Agreement
The form of depositary receipt evidencing the
depositary shares and any provision of the depositary agreement may be amended by agreement between the depositary and us. However, any
amendment that materially and adversely alters the rights of the holders of depositary shares will not be effective unless such amendment
has been approved by the holders of at least a majority of the depositary shares then outstanding. The depositary agreement may be terminated
by the depositary or us only if (1) all outstanding depositary shares have been redeemed or (2) there has been a final distribution in
respect of the preferred stock in connection with any liquidation, dissolution or winding up of our company and such distribution has
been distributed to the holders of depositary receipts.
Withdrawal of Preferred Stock
Except as may be provided otherwise in an
accompanying prospectus supplement, upon surrender of depositary receipts at the principal office of the depositary, subject to the terms
of the depositary agreement, the owner of the depositary shares may demand delivery of the number of whole shares of preferred stock and
all money and other property, if any, represented by those depositary shares. Partial shares of preferred stock will not be issued. If
the depositary receipts delivered by the holder evidence a number of depositary shares in excess of the number of depositary shares representing
the number of whole shares of preferred stock to be withdrawn, the depositary will deliver to such holder at the same time a new depositary
receipt evidencing the excess number of depositary shares. Holders of withdrawn preferred stock may not thereafter deposit those shares
under the depositary agreement or receive depositary receipts evidencing depositary shares therefor.
DESCRIPTION
OF DEBT SECURITIES
We have summarized below general terms and conditions
of the debt securities that we may offer and sell pursuant to this prospectus. When we offer to sell a particular series of debt securities,
we will describe the specific terms and conditions of the series in a prospectus supplement to this prospectus. We will also indicate
in the applicable prospectus supplement whether the general terms and conditions described in this prospectus apply to the series of debt
securities. The terms and conditions of the debt securities of a series may be different in one or more respects from the terms and conditions
described below. If so, those differences will be described in the applicable prospectus supplement.
We will issue the debt securities in one or
more series under an indenture to be entered into between us and the trustee named in the prospectus supplement, a form of which has been
filed with the SEC as an exhibit to the registration statement of which this prospectus forms a part. The following description of provisions
of the indenture does not purport to be complete and is subject to, and qualified in its entirety by reference to, the indenture. A form
of each debt security, any future supplemental indenture or officer's certificate establishing the terms of the debt securities or similar
document also will be so filed. You should read the indenture and any supplemental indenture or officer's certificate or similar document
because they, and not this description, define your rights as holder of our debt securities. All capitalized terms have the meanings specified
in the indenture.
For purposes of this section of this prospectus,
references to "we," "us" and "our" are to Green Brick Partners, Inc. and not to any of its subsidiaries.
We may issue, from time to time, debt securities,
in one or more series, that will consist of senior debt, or senior debt securities, senior subordinated debt, or senior subordinated debt
securities, subordinated debt, or subordinated debt securities or junior subordinated debt, or junior subordinated debt securities and,
together with the senior subordinated debt securities and the subordinated debt securities, “the subordinated securities”.
Debt securities, whether senior, senior subordinated, subordinated or junior subordinated, may be issued as convertible debt securities
or exchangeable debt securities.
The indenture does not limit the amount of debt
securities that we may issue. We may, without the consent of the holders of the debt securities of any series, issue additional debt securities
ranking equally with, and otherwise similar in all respects to, the debt securities of the series (except for any differences in the issue
price and, if applicable, the initial interest accrual date and interest payment date) so that those additional debt securities will be
consolidated and form a single series with the debt securities of the series previously offered and sold; provided that if the additional
debt securities are not fungible with the debt securities of the series previously offered or sold for U.S. federal income tax purposes,
the additional debt securities will have a separate CUSIP or other identifying number.
The indenture provides that we may issue debt
securities up to the principal amount that we may authorize and may be in any currency or currency unit designated by us. Except for the
limitations on consolidation, merger and sale of all or substantially all of our assets contained in the indenture, the terms of the indenture
do not contain any covenants or other provisions designed to afford holders of any debt securities protection with respect to our operations,
financial condition or transactions involving us.
We may issue the debt securities issued under
the indenture as "discount securities," which means they may be sold at a discount below their stated principal amount. These
debt securities, as well as other debt securities that are not issued at a discount, may, for U.S. federal income tax purposes, be treated
as if they were issued with "original issue discount," because of interest payment and other characteristics. Special U.S. federal
income tax considerations applicable to debt securities issued with original issue discount will be described in more detail in any applicable
prospectus supplement.
Provisions of the indenture
The applicable prospectus supplement for a series
of debt securities that we issue will describe, among other things, the following terms of the offered debt securities:
| · | any limit on the aggregate principal amount of debt securities of such series; |
| · | whether issued in the form of one or more global securities and whether all or a portion of the principal
amount of the debt securities is represented thereby; |
| · | the price or prices at which the debt securities will be issued; |
| · | the date or dates on which principal is payable; |
| · | the place or places where and the manner in which principal, premium or interest will be payable and
the place or places where the debt securities may be presented for transfer and, if applicable, conversion or exchange; |
| · | interest rates, and the dates from which interest, if any, will accrue, and the dates when interest
is payable; |
| · | the right, if any, to extend the interest payment periods and the duration of the extensions; |
| · | our rights or obligations to redeem or purchase the debt securities, including sinking fund or partial
redemption payments; |
| · | conversion or exchange provisions, if any, including conversion or exchange prices or rates and adjustments
thereto; |
| · | the currency or currencies of payment of principal or interest; |
| · | the terms applicable to any debt securities issued at a discount from their stated principal amount;
|
| · | the terms, if any, pursuant to which any debt securities will be subordinate to any of our other debt;
|
| · | if the amount of payments of principal or interest is to be determined by reference to an index or formula,
or based on a coin or currency other than that in which the debt securities are stated to be payable, the manner in which these amounts
are determined and the calculation agent, if any, with respect thereto; |
| · | if other than the entire principal amount of the debt securities when issued, the portion of the principal
amount payable upon acceleration of maturity as a result of an event of default; |
| · | any provisions for the remarketing of the debt securities; |
| · | if applicable, covenants affording holders of debt protection with respect to our operations, financial
condition or transactions involving us; and |
| · | any other specific terms of any debt securities. |
The applicable prospectus supplement will set
forth certain U.S. federal income tax considerations for holders of any debt securities and the securities exchange or quotation system
on which any debt securities are listed or quoted, if any.
Debt securities issued by us will be structurally
subordinated to all indebtedness and other liabilities of our subsidiaries, except to the extent any such subsidiary guarantees or is
otherwise obligated to make payment on such debt securities.
Senior debt securities
Payment of the principal of, and premium, if
any, and interest on, senior debt securities will rank on a parity with all of our other unsecured and unsubordinated debt.
Senior subordinated debt securities
Payment of the principal of, and premium, if
any, and interest on, senior subordinated debt securities will be junior in right of payment to the prior payment in full of all of our
unsubordinated debt. We will set forth in the applicable prospectus supplement relating to any senior subordinated debt securities the
subordination terms of such securities as well as the aggregate amount of outstanding debt, as of the most recent practicable date, that
by its terms would be senior to the senior subordinated debt securities. We will also set forth in such prospectus supplement limitations,
if any, on issuance of additional debt ranking senior to the senior subordinated debt securities.
Subordinated debt securities
Payment of the principal of, and premium, if
any, and interest on, subordinated debt securities will be subordinated and junior in right of payment to the prior payment in full of
all of our unsubordinated and senior subordinated debt. We will set forth in the applicable prospectus supplement relating to any subordinated
debt securities the subordination terms of such securities as well as the aggregate amount of outstanding indebtedness, as of the most
recent practicable date, that by its terms would be senior to the subordinated debt securities. We will also set forth in such prospectus
supplement limitations, if any, on issuance of additional debt ranking senior to the subordinated debt securities.
Junior subordinated debt securities
Payment of the principal of, and premium, if
any, and interest on, junior subordinated debt securities will be subordinated and junior in right of payment to the prior payment in
full of all of our unsubordinated, senior subordinated and subordinated debt. We will set forth in the applicable prospectus supplement
relating to any junior subordinated debt securities the subordination terms of such securities as well as the aggregate amount of outstanding
debt, as of the most recent practicable date, that by its terms would be senior to the junior subordinated debt securities. We will also
set forth in such prospectus supplement limitations, if any, on issuance of additional debt ranking senior to the junior subordinated
debt securities.
Conversion or exchange rights
Debt securities may be convertible into or
exchangeable for other securities or property of us. The terms and conditions of conversion or exchange will be set forth in the applicable
prospectus supplement. The terms will include, among others, the following:
| · | the conversion or exchange price; |
| · | the conversion or exchange period; |
| · | provisions regarding the ability of us or the holder to convert or exchange the debt securities; |
| · | events requiring adjustment to the conversion or exchange price; and |
| · | provisions affecting conversion or exchange in the event of our redemption of the debt securities. |
Consolidation, merger or sale
We cannot consolidate or merge with or into,
or transfer or lease all or substantially all of our assets to, any person, and we will not permit any other person to consolidate with
or merge into us, unless:
| · | (a) we will be the continuing corporation or (b) the successor person formed by such consolidation or
into which we are merged or to which all or substantially all of our assets are transferred or leased is a person organized or formed
under the laws of the United States, any state of the United States or the District of Columbia; and |
| · | immediately after giving effect to such transaction, no event of default or event, which after notice
or lapse of time or both would become an event of default, shall have occurred and be continuing. |
Subject to certain exceptions, when the person
to whom our assets are transferred or leased has assumed our obligations under the debt securities and the indenture, we shall be discharged
from all our obligations under the debt securities and the indenture.
This covenant would not apply to any recapitalization
transaction, a change of control of us or a highly leveraged transaction, unless the transaction or change of control were structured
to include a merger or consolidation or transfer or lease of all or substantially all of our assets.
Events of default
Unless otherwise indicated, the term "event
of default," when used in the indenture with respect to the debt securities of any series, means any of the following:
| · | failure to pay interest for 30 days after the date payment on any debt security of such series is due
and payable; provided that an extension of an interest payment period by us in accordance with the terms of the debt securities shall
not constitute a failure to pay interest; |
| · | failure to pay principal or premium, if any, on any debt security of such series when due, either at
maturity, upon any redemption, by declaration or otherwise; |
| · | failure to perform any other covenant in the indenture or the debt securities of such series for 90
days after written notice that performance was required, which notice must be sent by either the trustee or holders of not less than 25%
of the principal amount of the outstanding debt securities of such series; |
| · | certain events of bankruptcy, insolvency or reorganization of us; or |
| · | any other event of default provided in the applicable resolution of our board or the officers' certificate
or supplemental indenture under which we issue such series of debt securities. |
An event of default for a particular series
of debt securities does not necessarily constitute an event of default for any other series of debt securities issued under the indenture.
If an event of default (other than an event
of default relating to events of bankruptcy, insolvency or reorganization of us) involving any series of debt securities has occurred
and is continuing, the trustee or the holders of not less than 25% in aggregate principal amount of the debt securities of each affected
series may declare the entire principal amount of all the debt securities of such affected series, and the interest accrued thereon, if
any, to be due and payable immediately. The holders of not less than a majority in aggregate principal amount of the debt securities of
an affected series may, after satisfying conditions, rescind and annul any of the above-described declarations and consequences involving
such series.
If an event of default relating to events of
bankruptcy, insolvency or reorganization of us occurs and is continuing, then the entire principal amount of all of the debt securities
outstanding, and the interest accrued thereon, if any, will automatically become due and payable immediately, without any declaration
or other act by the trustee or any holder.
The indenture imposes limitations on suits
brought by holders of debt securities against us with respect to an event of default. Except as provided below, no holder of debt securities
of any series may institute any action against us under the indenture unless:
| · | an event of default has occurred and is continuing and such holder has previously given to the trustee
written notice of such continuing event of default; |
| · | the holders of at least 25% in principal amount of the outstanding debt securities of the affected series
have requested that the trustee institute the action in respect of such event of default; |
| · | the requesting holders have offered the trustee security or indemnity reasonably satisfactory to it
for expenses and liabilities that may be incurred by bringing the action; |
| · | the trustee has not instituted the action within 60 days of the request; and |
| · | the trustee has not received inconsistent direction by the holders of a majority in principal amount
of the outstanding debt securities of the affected series. |
Notwithstanding the foregoing, each holder of
debt securities of any series has the right, which is absolute and unconditional, to receive payment of the principal of, and premium
and interest, if any, on, such debt securities when due and to institute suit for the enforcement of any such payment, and such rights
may not be impaired without the consent of that holder of debt securities.
We will be required to file annually with the
trustee a certificate, signed by one of our officers, stating whether or not the officer knows of any default by us in the performance,
observance or fulfillment of any condition or covenant of the indenture.
Registered global securities
We may issue the debt securities of a series
in whole or in part in the form of one or more fully registered global securities that we will deposit with a depositary or with a nominee
for a depositary identified in the applicable prospectus supplement and registered in the name of such depositary or nominee. In such
case, we will issue one or more registered global securities denominated in an amount equal to the aggregate principal amount of all of
the debt securities of the series to be issued and represented by such registered global security or securities.
Unless and until it is exchanged in whole
or in part for debt securities in definitive registered form, a registered global security may not be transferred except as a whole:
| · | by the depositary for such registered global security to its nominee, |
| · | by a nominee of the depositary to the depositary or another nominee of the depositary, or |
| · | by the depositary or its nominee to a successor of the depositary or a nominee of the successor. |
The prospectus supplement relating to
a series of debt securities will describe the specific terms of the depositary arrangement with respect to any portion of such series
represented by a registered global security. We anticipate that the following provisions will apply to all depositary arrangements for
debt securities:
| · | ownership of beneficial interests in a registered global security will be limited to persons that have
accounts with the depositary for the registered global security, those persons being referred to as "participants," or persons
that may hold interests through participants; |
| · | upon the issuance of a registered global security, the depositary for the registered global security
will credit, on its book-entry registration and transfer system, the participants' accounts with the respective principal amounts of the
debt securities represented by the registered global security beneficially owned by the participants; |
| · | any dealers, underwriters, or agents participating in the distribution of the debt securities will designate
the accounts to be credited; and |
| · | ownership of any beneficial interest in the registered global security will be shown on, and the transfer
of any ownership interest will be effected only through, records maintained by the depositary for the registered global security (with
respect to interests of participants) and on the records of participants (with respect to interests of persons holding through participants).
|
The laws of some states may require that certain
purchasers of securities take physical delivery of the securities in definitive form. These laws may limit the ability of those persons
to own, transfer or pledge beneficial interests in registered global securities.
So long as the depositary for a registered
global security, or its nominee, is the registered owner of the registered global security, the depositary or the nominee, as the case
may be, will be considered the sole owner or holder of the debt securities represented by the registered global security for all purposes
under the indenture. Except as set forth below, owners of beneficial interests in a registered global security:
| · | will not be entitled to have the debt securities represented by a registered global security registered
in their names; |
| · | will not receive or be entitled to receive physical delivery of the debt securities in the definitive
form; and |
| · | will not be considered the owners or holders of the debt securities under the indenture. |
Accordingly, each person owning a beneficial
interest in a registered global security must rely on the procedures of the depositary for the registered global security and, if the
person is not a participant, on the procedures of a participant through which the person owns its interest, to exercise any rights of
a holder under the indenture.
We understand that under existing industry practices,
if we request any action of holders or if an owner of a beneficial interest in a registered global security desires to give or take any
action that a holder is entitled to give or take under the indenture, the depositary for the registered global security would authorize
the participants holding the relevant beneficial interests to give or take the action, and those participants would authorize beneficial
owners owning through those participants to give or take the action or would otherwise act upon the instructions of beneficial owners
holding through them.
We will make payments of principal and premium,
if any, and interest, if any, on debt securities represented by a registered global security registered in the name of a depositary or
its nominee, as the case may be, as the registered owners of the registered global security. None of us, the trustee or any other agent
of us or the trustee will be responsible or liable for any aspect of the records relating to, or payments made on account of, beneficial
ownership interests in the registered global security or for maintaining, supervising or reviewing any records relating to the beneficial
ownership interests.
We expect that the depositary for any debt securities
represented by a registered global security, upon receipt of any payments of principal and premium, if any, and interest, if any, in respect
of the registered global security, will immediately credit participants' accounts with payments in amounts proportionate to their respective
beneficial interests in the registered global security as shown on the records of the depositary. We also expect that standing customer
instructions and customary practices will govern payments by participants to owners of beneficial interests in the registered global security
held through the participants, as is now the case with the securities held for the accounts of customers in bearer form or registered
in "street name." We also expect that any of these payments will be the responsibility of the participants.
If the depositary for any debt securities represented
by a registered global security is at any time unwilling or unable to continue as depositary or ceases to be a clearing agency registered
under the Exchange Act, we will appoint an eligible successor depositary. If we fail to appoint an eligible successor depositary within
90 days, we will issue the debt securities in definitive form in exchange for the registered global security. In addition, we may at any
time and in our sole discretion decide not to have any of the debt securities of a series represented by one or more registered global
securities. In such event, we will issue debt securities of that series in a definitive form in exchange for all of the registered global
securities representing the debt securities. The trustee will register any debt securities issued in definitive form in exchange for a
registered global security in such name or names as the depositary, based upon instructions from its participants, shall instruct the
trustee.
Discharge, defeasance and covenant
defeasance
We can discharge or defease our obligations
under the indenture as set forth below. Unless otherwise set forth in the applicable prospectus supplement, the subordination provisions
applicable to any subordinated securities will be expressly made subject to the discharge and defeasance provisions of the indenture.
We may discharge our obligations to holders
of any series of debt securities that have not already been delivered to the trustee for cancellation and that have either become due
and payable or are by their terms to become due and payable within one year (or to be called for redemption within one year). We may effect
a discharge by irrevocably depositing with the trustee cash or U.S. government obligations, as trust funds, in an amount certified to
be sufficient to pay when due, whether at maturity, upon redemption or otherwise, the principal of, and premium, if any, and interest
on, the debt securities and any mandatory sinking fund payments.
Unless otherwise provided in the applicable
prospectus supplement, we may also discharge any and all of our obligations to holders of any series of debt securities at any time ("legal
defeasance"). We also may be released from the obligations imposed by any covenants of any outstanding series of debt securities
and provisions of the indenture, and we may omit to comply with those covenants without creating an event of default ("covenant defeasance").
We may effect legal defeasance and covenant defeasance only if, among other things:
| · | we irrevocably deposit with the trustee cash or U.S. government obligations, as trust funds, in an amount
certified to be sufficient to pay when due (whether at maturity, upon redemption, or otherwise) the principal of, and premium, if any,
and interest on all outstanding debt securities of the series; and |
| · | we deliver to the trustee an opinion of counsel from a nationally recognized law firm to the effect
that the beneficial owners of the series of debt securities will not recognize income, gain or loss for U.S. federal income tax purposes
as a result of the legal defeasance or covenant defeasance, as applicable, and that legal defeasance or covenant defeasance, as applicable,
will not otherwise alter the beneficial owners' U.S. federal income tax treatment of principal, premium, if any, and interest payments
on the series of debt securities, which opinion, in the case of legal defeasance, must be based on a ruling of the Internal Revenue Service,
or a change in U.S. federal income tax law. |
Although we may discharge or defease our obligations
under the indenture as described in the two preceding paragraphs, we may not avoid, among other things, our duty to register the transfer
or exchange of any series of debt securities, to replace any temporary, mutilated, destroyed, lost or stolen series of debt securities
or to maintain an office or agency in respect of any series of debt securities.
We may exercise our legal defeasance option
notwithstanding our prior exercise of our covenant defeasance option.
Modifications of the indenture
The indenture provides that we and the
trustee may enter into supplemental indentures without the consent of the holders of debt securities to:
| · | secure any debt securities; |
| · | evidence the assumption by another person of our obligations, as permitted by the indenture; |
| · | add covenants for the protection of the holders of debt securities of all or any series or to surrender
any right or power conferred upon us; |
| · | add any additional events of default for the benefit of holders of the debt securities of all or any
series; |
| · | add one or more guarantees for the benefit of holders of the debt securities; |
| · | provide for the issuance of additional debt securities of any series; |
| · | comply with the rules of any applicable securities depository; |
| · | provide for uncertificated debt securities in addition to or in place of certificated debt securities;
|
| · | add to, change or eliminate any of the provisions of the indenture in respect of one or more series
of debt securities; provided that any such addition, change or elimination (a) shall neither (1) apply to any debt security of any series
created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (2) modify the rights
of the holder of any such debt security with respect to such provision or (b) shall become effective only when there is no debt security
described in clause (a)(1) outstanding; |
| · | supplement any of the provisions of the indenture to such extent as shall be necessary to permit or
facilitate the defeasance and discharge of any series of debt securities pursuant to the indenture; provided that any such action shall
not adversely affect the interests of the holders of debt securities of such series or any other series of debt securities in any material
respect; |
| · | comply with the rules or regulations of any securities exchange or automated quotation system on which
any of the debt securities may be listed or traded; |
| · | add to, change or eliminate any of the provisions of the indenture as shall be necessary or desirable
in accordance with any amendments to the Trust Indenture Act of 1939, as amended, provided that such action does not adversely affect
the rights or interests of any holder of debt securities in any material respect; |
| · | cure or correct any ambiguity, defect, omission or inconsistency in the indenture; provided that such
action does not adversely affect the interests of the holders of debt securities of any series in any material respect; |
| · | establish the forms or terms of debt securities of any series; |
| · | evidence and provide for the acceptance of appointment by a successor trustee; and |
| · | add to, change or eliminate any other provision of the indenture; provided that such addition, change
or elimination does not adversely affect the interests of the holders of debt securities of any series in any material respect. |
The indenture also provides that we and
the trustee may, with the consent of the holders of not less than a majority in aggregate principal amount of the outstanding debt securities
of all series of senior debt securities or subordinated securities, as the case may be, then outstanding and affected thereby (voting
as one class), add any provisions to, or change in any manner, eliminate or modify in any way the provisions of, the indenture or modify
in any manner the rights of the holders of the debt securities. We and the trustee may not, however, without the consent of the holder
of each outstanding debt security affected thereby:
| · | extend the final maturity of any debt security; |
| · | reduce the principal amount of, or premium, if any, on any debt security; |
| · | reduce the rate or extend the time of payment of interest on any debt security; |
| · | reduce any amount payable on redemption of any debt security; |
| · | change the currency in which the principal (other than as may be provided otherwise with respect to
a series), premium, if any, or interest is payable on any debt security; |
| · | reduce the amount of the principal of any debt security issued with an original issue discount that
is payable upon acceleration or provable in bankruptcy; |
| · | modify any of the subordination provisions or the definition of senior indebtedness applicable to any
subordinated securities in a manner adverse to the holders of those securities; |
| · | alter provisions of the indenture relating to the debt securities not denominated in U.S. dollars; |
| · | impair the right to institute suit for the enforcement of any payment on any debt security when due;
or |
| · | reduce the percentage of holders of debt securities of any series whose consent is required for any
modification of the indenture. |
Concerning the trustee
The indenture provides that there may be more
than one trustee under the indenture, each with respect to one or more series of debt securities. If there are different trustees for
different series of debt securities, each trustee will be a trustee of a trust under the indenture separate and apart from the trust administered
by any other trustee under the indenture. Except as otherwise indicated in this prospectus or any accompanying prospectus supplement,
any action permitted to be taken by a trustee may be taken by such trustee only with respect to the one or more series of debt securities
for which it is the trustee under the indenture. Any trustee under the indenture may resign or be removed with respect to one or more
series of debt securities. All payments of principal of, and premium, if any, and interest on, and all registration, transfer, exchange,
authentication and delivery (including authentication and delivery on original issuance of the debt securities) of, the debt securities
of a series will be effected by the trustee with respect to such series at an office designated by the trustee.
The indenture contains limitations on the right
of the trustee, should it become a creditor of us, to obtain payment of claims in some cases or to realize on certain property received
in respect of any such claim as security or otherwise. The trustee may engage in other transactions. If it acquires any conflicting interest
relating to any duties with respect to the debt securities, however, it must eliminate the conflict or resign as trustee.
The holders of a majority in aggregate principal
amount of any series of debt securities then outstanding will have the right to direct the time, method and place of conducting any proceeding
for exercising any remedy available to the trustee with respect to such series of debt securities, provided that the direction would not
conflict with any rule of law or with the indenture, would not be unduly prejudicial to the rights of another holder of the debt securities,
and would not involve any trustee in personal liability. The indenture provides that in case an event of default shall occur and be known
to any trustee and not be cured, the trustee must use the same degree of care as a prudent person would use in the conduct of his or her
own affairs in the exercise of the trustee's power. Subject to these provisions, the trustee will be under no obligation to exercise any
of its rights or powers under the indenture at the request of any of the holders of the debt securities, unless they shall have offered
to the trustee security and indemnity satisfactory to the trustee.
No individual liability of incorporators,
stockholders, officers or directors
The indenture provides that no incorporator
and no past, present or future stockholder, officer or director of us or any successor corporation in their capacity as such shall have
any individual liability for any of our obligations, covenants or agreements under the debt securities or the indenture.
Governing law
The indenture and the debt securities will be
governed by, and construed in accordance with, the laws of the State of New York.
DESCRIPTION OF
WARRANTS
We may issue warrants for the purchase of shares
of our common stock, shares of our preferred stock or our debt securities. We may issue warrants independently or together with other
securities, and they may be attached to or separate from the other securities. Each series of warrants will be issued under a separate
warrant agreement that we will enter into with a bank or trust company, as warrant agent, as detailed in an accompanying prospectus supplement.
The warrant agent will act solely as our agent in connection with the warrants and will not assume any obligation, or agency or trust
relationship, with you.
The following description, together with the
additional information we may include in any applicable prospectus supplement, summarizes the material terms and provisions of the warrants
that we may offer under this prospectus and the related warrant agreements. While the terms summarized below will apply generally to any
warrants that we may offer, we will describe the particular terms of any series of warrants in more detail in the applicable prospectus
supplement. If we indicate in the prospectus supplement, the terms of any warrants offered under that prospectus supplement may differ
from the terms described below. Specific warrant agreements will contain additional important terms and provisions and will be incorporated
by reference as an exhibit to the registration statement, of which this prospectus forms a part, or to an exhibit to a Current Report
on Form 8-K or other document to be filed under the Exchange Act.
If we decide to issue warrants pursuant
to this prospectus, we will specify in a prospectus supplement the terms of the series of warrants, including, if applicable, the following:
| · | the title of the warrants; |
| · | the aggregate number of warrants offered; |
| · | the price or prices at which the warrants will be issued; |
| · | the currencies in which the price or prices of the warrants may be payable; |
| · | the designation, amount and terms of the offered securities purchasable upon exercise of the warrants;
|
| · | the designation and terms of the other offered securities, if any, with which the warrants are issued
and the number of the warrants issued with each security; |
| · | if applicable, the date on and after which the warrants and the offered securities purchasable upon
exercise of the warrants will be separately transferable; |
| · | the price or prices at which and currency or currencies in which the offered securities purchasable
upon exercise of the warrants may be purchased; |
| · | the date on which the right to exercise the warrants shall commence and the date on which the right
shall expire; |
| · | the minimum or maximum amount of the warrants which may be exercised at any one time; |
| · | information with respect to book-entry procedures, if any; |
| · | a discussion of any material or special U.S. federal income tax considerations; and |
| · | any other material terms of the warrants, including terms, procedures and limitations relating to the
exchange and exercise of the warrants. |
Before exercising their warrants, holders of
warrants will not have voting rights or other rights as a stockholder of Green Brick Partners, Inc.
Exercise of warrants
Each warrant will entitle the holder to purchase
the securities that we specify in the applicable prospectus supplement at the exercise price that we describe in the applicable prospectus
supplement. Unless we otherwise specify in the applicable prospectus supplement, holders of the warrants may exercise the warrants up
to the close of business on the expiration date that we set forth in the applicable prospectus supplement. After the close of business
on the expiration date, unexercised warrants will become void.
Warrants may be exercised as described in
the applicable prospectus supplement. We will describe in the applicable prospectus supplement the information that the holder of the
warrant will be required to deliver to the warrant agent upon exercise. If we so indicate in the applicable prospectus supplement, holders
of the warrants may surrender securities as all or part of the exercise price for warrants.
SELLING
STOCKHOLDERS
If the registration statement
of which this prospectus forms a part is used by selling stockholders for the resale of any shares of common stock or other securities
registered thereunder, information about such selling stockholders, their beneficial ownership of our common stock or other securities
and their relationship with us will be set forth in a prospectus supplement or in filings we make with the SEC under the Exchange Act
that are incorporated by reference herein or therein.
The applicable prospectus
supplement will set forth the name of each selling stockholder and the number of and type of securities beneficially owned by such selling
stockholder prior to and after the completion of an offering that is covered by such prospectus supplement. The applicable prospectus
supplement also will disclose whether any of the selling stockholders have held any position or office with, have been employed by or
otherwise have had a material relationship with us or any of our affiliates during the three years prior to the date of the prospectus
supplement.
PLAN
OF DISTRIBUTION
We and any selling stockholder may offer and sell
the securities covered by this prospectus from time to time, in one or more transactions, at market prices prevailing at the time of sale,
at prices related to market prices, at fixed or negotiated prices or prices subject to change, at varying prices determined at the time
of sale or at negotiated prices, by a variety of methods, including the following:
| · | to or through underwriters; |
| · | in “at the market offerings,” within the meaning of Rule 415(a)(4) under the Securities Act, to or through a market maker
or into an existing trading market, on an exchange or otherwise; |
| · | to or through brokers or dealers; |
| · | directly by us or any selling stockholders to purchasers, including through a specific bidding, auction or other process; or |
| · | through a combination of any of these methods of sale. |
In addition to the above, subject to the limitations
set forth in any applicable registration rights agreement, any selling stockholder may use any one or more of the following methods when
selling the securities offered by this prospectus:
| · | purchases by underwriters, dealers and agents who may receive compensation in the form of underwriting
discounts, concessions or commissions from the selling stockholders and/or the purchasers of the shares of common stock for whom they
may act as agent; |
| · | ordinary brokerage transactions and transactions in which the broker solicits purchasers; |
| · | block trades in which the broker-dealer so engaged will attempt to sell the securities as agent but may position and resell a portion
of the block as principal to facilitate the transaction; |
| · | an exchange distribution in accordance with the rules of the applicable exchange on which the shares are traded or quoted; |
| · | through trading plans entered into by a selling stockholder pursuant to Rule 10b5-1 under the Exchange Act that are in place at the
time of an offering pursuant to this prospectus and any applicable prospectus supplement hereto that provide for periodic sales of their
securities on the basis of parameters described in such trading plans; |
| · | through the writing or settlement of options or other derivative or hedging transactions, whether through a derivatives exchange or
otherwise; |
| · | agreements with broker-dealers to sell a specified number of such shares at a stipulated price per share; |
| · | privately negotiated transactions; |
| · | through a combination of any of the above methods of sale; or |
| · | any other method permitted pursuant to applicable law. |
The term “selling
stockholder” includes donees, pledgees, transferees or other successors in interest selling securities received after the date of
this prospectus from a selling stockholder as a gift, pledge, partnership distribution or other transfer. A selling stockholder that
is an entity may elect to make an in-kind distribution of shares of common stock to its members, general or limited partners or shareholders
pursuant to the registration statement of which this prospectus is a part by delivering a prospectus. To the extent that such members,
general or limited partners or shareholders are not affiliates of ours, such members, partners or shareholders would thereby receive freely
tradable shares of common stock pursuant to the distribution through a registration statement. Additionally, to the extent that entities,
members, partners or shareholders are affiliates of ours received shares in any such distribution, such affiliates will also be selling
stockholders and will be entitled to sell or otherwise distribute shares of common stock pursuant to this prospectus.
Selling stockholders
may also enter into sale, forward sale and derivative transactions with third parties, or may sell securities not covered by this prospectus
to third parties in privately negotiated transactions. Selling stockholders may also sell shares under any available exemption to the
registration requirements of the Securities Act, including but not limited to Rule 144 under the Securities Act, rather than under this
prospectus.
To the extent required, this prospectus may be amended
and supplemented from time to time to describe a specific plan of distribution, the specific terms of an offering of the shares of common
stock, including the specific shares to be sold, the names of the selling stockholders, the respective purchase price(s) and/or public
offering prices, the names of any underwriter, broker-dealer or agent, if any, and any applicable compensation in the form of discounts,
concessions or commissions paid to underwriters or agents or paid or allowed to dealers will be set forth in a supplement to this prospectus
or a post-effective amendment to the registration statement of which this prospectus forms a part.
LEGAL MATTERS
Unless otherwise specified in connection with the
particular offering of any securities, Greenberg Traurig, P.A., Fort Lauderdale, Florida, will pass upon the validity of the offered securities
for us.
EXPERTS
The consolidated financial statements of Green
Brick Partners, Inc. and subsidiaries as of December 31, 2022 and 2021 and for each of the years in the three-year period ended December
31, 2022 and the effectiveness of internal control over financial reporting as of December 31, 2022 incorporated in this prospectus by
reference from the Green Brick Partners, Inc. and subsidiaries Annual Report on Form 10-K for the year ended December 31, 2022 have
been audited by RSM US LLP, an independent registered public accounting firm, as stated in their reports thereon, incorporated herein
by reference, and have been incorporated in this Prospectus and Registration Statement in reliance upon such reports and upon the authority
of such firm as experts in accounting and auditing.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth the costs and
expenses payable by the registrant in connection with the offerings described in this registration statement. In addition to the costs
and expenses set forth below, we will pay any selling commissions and brokerage fees and any applicable taxes and fees and disbursements
with respect to securities registered by this prospectus which we may sell, but these fees cannot be predicted with any certainty at this
time due to the uncertainty as to the number of such securities.
| SEC registration fee |
|
$ |
* |
|
| Trustee and transfer agent fees |
|
$ |
** |
|
| Printing and engraving expenses |
|
$ |
** |
|
| Legal fees and expenses |
|
$ |
** |
|
| Accounting fees and expenses |
|
$ |
** |
|
| Stock exchange fees |
|
$ |
** |
|
| Miscellaneous expenses |
|
$ |
** |
|
| Total |
|
$ |
** |
|
| * |
In accordance with Rule 456(b), we are deferring payment of the registration fee for the
securities offered by this prospectus and will pay the registration fee subsequently in advance or on a pay-as-you-go basis, except for $92,408.43 that
the Company is entitled to offset pursuant to Rule 457(p). |
| ** |
These fees cannot be estimated at this time as they are calculated based on the type and amount of securities offered and the number of issuances. An estimate of the aggregate expenses in connection with the sale and distribution of the securities being offered will be included in the applicable prospectus supplement. |
Item 15. Indemnification of Directors and Officers.
The charter of Green Brick Partners, Inc. authorizes
the corporation to indemnify to the maximum extent permitted under Delaware law, its present or former directors, officers, employees
or agents or any individual who, while a director, officer, employee or agent of Green Brick Partners, Inc. serves at our request as a
director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise, nonprofit entity or
employee benefit plan. The Charter also provides for the limitation of liability set forth in Section 102(b)(7) of the DGCL, which permits
a corporation to provide in its certificate of incorporation that a director of the corporation shall not be personally liable to the
corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i) for any breach
of the director’s duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which
involve intentional misconduct or a knowing violation of law, (iii) for unlawful payments of dividends or unlawful stock repurchases,
redemptions or other distributions or (iv) for any transaction from which the director derived an improper personal benefit.
The Company has obtained officers’ and directors’
liability insurance which insures against liabilities that officers and directors of the Company may, in such capacities, incur. Section
145(g) of the DGCL provides that a corporation shall have power to purchase and maintain insurance on behalf of any person who is or was
a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against
such person and incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not the
corporation would have the power to indemnify such person against such liability under that section.
The Company’s
employment agreements with its executive officers includes a provision indemnifying such officers to the fullest extent permitted by law
in connection with their service as an officer of the Company. Such indemnification is in addition to and not in lieu of other indemnification
rights.
Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors, officers or persons controlling Green Brick Partners, Inc. pursuant to
the foregoing provisions, Green Brick Partners, Inc. has been informed that, in the opinion of the Securities and Exchange Commission,
such indemnification is against public policy as expressed in the Securities Act of 1933 and is therefore unenforceable.
Item 16. Exhibits.
The following exhibits are filed or incorporated by reference as
part of this Registration Statement.
Exhibit
Number |
|
Description of Exhibit |
| 1.1* |
|
Form of Underwriting Agreement |
| 3.1 |
|
Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed October 31, 2014) |
| 3.2 |
|
Amended and Restated Bylaws of Green Brick Partners, Inc. effective as of January 27, 2022, (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed on January 27, 2022) |
| 3.3 |
|
Certificate of Designation of 5.75% Series A Cumulative Preferred Stock of Green Brick Partners, Inc. (incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K filed on December 23, 2021) |
| 4.1 |
|
Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed October 31, 2014) |
| 4.2 |
|
Description of Capital Stock (incorporated by reference to Exhibit 4.2 to the Company’s Annual Report on Form 10-K filed March 1, 2022) |
| 4.3*** |
|
Form of Indenture |
| 4.4* |
|
Form of Debt Security |
| 4.5* |
|
Form of Articles Supplementary for Preferred Stock |
| 4.6* |
|
Form of Preferred Share Certificate |
| 4.7* |
|
Form of Deposit Agreement (together with form of Depositary Receipt for Depositary Shares) |
| 4.8* |
|
Form of Warrant Agreement |
| 5.1*** |
|
Opinion of Greenberg Traurig, P.A. |
| 10.1 |
|
Registration Rights Agreement, dated as October 27, 2014, by and among the Company and JBGL Exchange (Offshore), LLC, JBGL Willow Crest (Offshore), LLC, JBGL Hawthorne (Offshore), LLC, JBGL Inwood (Offshore), LLC, JBGL Chateau (Offshore), LLC, JBGL Castle Pines (Offshore), LLC, JBGL Lakeside (Offshore), LLC, JBGL Mustang (Offshore), LLC, JBGL Kittyhawk (Offshore), LLC, JBGL Builder Finance (Offshore), LLC, Greenlight Capital Qualified, LP, Greenlight Capital, LP, Greenlight Capital Offshore Partners, Greenlight Reinsurance, Ltd., Greenlight Capital (Gold), LP, Greenlight Capital Offshore Master (Gold), Ltd., Scott L. Roberts, L. Loraine Brickman Revocable Trust, Roger E. Brickman GST Marital Trust, James R. Brickman, Blake Brickman, Jennifer Brickman Roberts, Trevor Brickman and Natalie Brickman, (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed October 31, 2014). |
| 23.1*** |
|
Consent of RSM US LLP, Independent Registered Public Accounting Firm to the Company |
| 23.2*** |
|
Consent of Greenberg Traurig, P.A. (included in Exhibit 5.1) |
| 24.1*** |
|
Power of Attorney |
| 25.1* |
|
Statement of Eligibility of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended |
| 107*** |
|
Filing Fee Table |
| * |
To be filed by amendment or incorporated herein by reference to an exhibit to a Current Report on Form 8-K or other document to be filed under the Securities Exchange Act of 1934, as amended, or, where applicable, incorporated herein by reference from a subsequent filing in accordance with Section 305(b)(2) of the Trust Indenture Act of 1939, as amended. |
| *** |
Filed herewith. |
Item 17. Undertakings
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers
or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by
Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or
events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change
in the maximum aggregate offering price set forth in the “Calculation of Registration Fee Table” in the effective registration
statement; and
(iii) To include any material information
with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information
in the registration statement;
provided, however, that paragraphs (i), (ii) and (iii) of
this section (1) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant
to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose of determining any
liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering
thereof.
(3) To remove from registration by means of a
post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability
under the Securities Act of 1933 to any purchaser:
(i) Each prospectus filed by the registrant
pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part
of and included in the registration statement; and
(ii) Each prospectus required to be filed
pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made
pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities
Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus
is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus.
As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be
deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that
prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the
registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement
that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately
prior to such effective date.
(5) That, for the purpose of determining liability
of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant
undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means
of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or
sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus
of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating
to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing
prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or
on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer
in the offering made by the undersigned registrant to the purchaser.
(b) The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a)
or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual
report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions,
or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against
public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
(d) For purposes of determining any liability under the Securities
Act of 1933:
(1) the information omitted from the form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant
pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of
the time it was declared effective; and
(2) each post-effective amendment that contains
a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering thereof.
(e) The undersigned registrant hereby undertakes to file an application
for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act, as
amended, or the Trust Indenture Act, in accordance with the rules and regulations prescribed by the Securities and Exchange Commission
under Section 305(b)(2) of the Trust Indenture Act.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Plano, State of Texas,
on September 6, 2023.
| |
|
|
|
| |
GREEN BRICK PARTNERS INC. |
| |
|
|
| |
By: |
|
/s/ James R. Brickman |
| |
|
|
James R. Brickman |
| |
|
|
Chief Executive Officer |
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature
appears below hereby constitutes and appoints James R. Brickman and Richard A. Costello, and each of them, his or her true and lawful
attorney in fact and agent, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead,
in any and all capacities, to sign any and all amendments, including post-effective amendments, to this registration statement and any
registration statement relating to the offering covered by this registration statement and filed pursuant to Rule 462(b) under the Securities
Act of 1933 and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite
and necessary to be done, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and conforming
all that said attorney in fact and agent or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the capacities and on the dates indicated.
| |
|
|
|
|
|
/s/ James R. Brickman
James R. Brickman |
|
Chief Executive Officer and Director (principal executive officer) |
|
September 6, 2023 |
| |
|
|
|
/s/ Richard A. Costello
Richard A. Costello |
|
Chief Financial Officer (principal financial officer and principal accounting officer) |
|
September 6, 2023 |
| |
|
|
|
/s/ David Einhorn
David Einhorn |
|
Chairman |
|
September 6, 2023 |
| |
|
|
|
/s/ Elizabeth K. Blake
Elizabeth K. Blake |
|
Director |
|
September 6, 2023 |
| |
|
|
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/s/ Harry Brandler
Harry Brandler |
|
Director |
|
September 6, 2023 |
| |
|
|
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/s/ Lila Manassa Murphy
Lila Manassa Murphy |
|
Director |
|
September 6, 2023 |
| |
|
|
|
/s/ Kathleen Olsen
Kathleen Olsen |
|
Director |
|
September 6, 2023 |
| |
|
|
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/s/ Richard S. Press
Richard S. Press |
|
Director |
|
September 6, 2023 |
EXHIBIT 4.3
GREEN BRICK PARTNERS, INC.
as Issuer,
and
[ ],
as Trustee
FORM OF INDENTURE
Dated as of
Debt Securities
CROSS REFERENCE SHEET*
Between
Provisions of Trust Indenture Act (as defined herein)
and Indenture, dated as of , between GREEN BRICK PARTNERS, INC. and [ ] , as Trustee:
| SECTION OF THE ACT |
|
SECTION OF INDENTURE |
| 310(a)(1), (2) and (5) |
|
6.10, 6.11(b) |
| 310(a)(3) and (4) |
|
Inapplicable |
| 310(b) |
|
6.9 and 6.11(a), (b) and (d) |
| 311(a) |
|
6.14 |
| 311(b) |
|
6.14 |
| 312(a) |
|
4.1 |
| 313(a) |
|
4.3 |
| 313(b)(1) |
|
4.3 |
| 313(b)(2) |
|
4.3 |
| 313(c) |
|
4.3 |
| 313(d) |
|
4.3 |
| 314(a) |
|
3.5 and 4.2 |
| 314(b) |
|
Inapplicable |
| 314(c)(1) and (2) |
|
11.5 |
| 314(c)(3) |
|
Inapplicable |
| 314(d) |
|
Inapplicable |
| 314(e) |
|
11.5 |
| 314(f) |
|
Inapplicable |
| 315(a), (c) and (d) |
|
6.1 |
| 315(b) |
|
5.11 |
| 315(e) |
|
5.12 |
| 316(a)(1) |
|
5.9 and 5.10 |
| 316(a)(2) |
|
Not required |
| 316(a) (last sentence) |
|
7.4 |
| 316(b) |
|
5.7 |
| 316(c) |
|
2.7 |
| 317(a) |
|
5.2 |
| 317(b) |
|
3.4(a) and (b) |
| 318(a) |
|
11.7 |
*This Cross Reference Sheet is not part of the Indenture.
i
TABLE OF CONTENTS
| |
|
PAGE |
| ARTICLE I |
DEFINITIONS |
|
| |
|
|
| Section 1.1 |
CERTAIN TERMS DEFINED |
1 |
| |
|
|
| ARTICLE II |
SECURITIES |
|
| Section 2.1 |
FORMS GENERALLY |
6 |
| Section 2.2 |
FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION |
6 |
| Section 2.3 |
AMOUNT UNLIMITED; ISSUABLE IN SERIES |
7 |
| Section 2.4 |
AUTHENTICATION AND DELIVERY OF SECURITIES |
10 |
| Section 2.5 |
EXECUTION OF SECURITIES |
11 |
| Section 2.6 |
CERTIFICATE OF AUTHENTICATION |
12 |
| Section 2.7 |
DENOMINATION AND DATE OF SECURITIES; PAYMENT OF INTEREST |
12 |
| Section 2.8 |
REGISTRATION, TRANSFER AND EXCHANGE |
12 |
| Section 2.9 |
MUTILATED, DEFACED, DESTROYED, LOST AND STOLEN SECURITIES |
15 |
| Section 2.10 |
CANCELLATION OF SECURITIES; DISPOSAL THEREOF |
16 |
| Section 2.11 |
TEMPORARY SECURITIES |
16 |
| Section 2.12 |
CUSIP NUMBERS |
16 |
| |
|
|
| ARTICLE III |
COVENANTS OF THE ISSUER |
|
| Section 3.1 |
PAYMENT OF PRINCIPAL AND INTEREST |
17 |
| Section 3.2 |
OFFICES FOR PAYMENTS, ETC. |
17 |
| Section 3.3 |
APPOINTMENT TO FILL A VACANCY IN OFFICE OF TRUSTEE |
17 |
| Section 3.4 |
PAYING AGENTS |
17 |
| Section 3.5 |
COMPLIANCE CERTIFICATES |
18 |
| Section 3.6 |
CORPORATE EXISTENCE |
18 |
| Section 3.7 |
CALCULATION OF ORIGINAL ISSUE DISCOUNT |
19 |
| |
|
|
| ARTICLE IV |
SECURITYHOLDER LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE |
|
| Section 4.1 |
ISSUER TO FURNISH TRUSTEE INFORMATION AS TO NAMES AND ADDRESSES OF SECURITYHOLDERS |
19 |
| Section 4.2 |
REPORTS BY THE ISSUER |
19 |
| Section 4.3 |
REPORTS BY THE TRUSTEE |
19 |
| |
|
|
| ARTICLE V |
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT |
|
| Section 5.1 |
EVENT OF DEFAULT DEFINED, ACCELERATION OF MATURITY; WAIVER OF DEFAULT |
20 |
| Section 5.2 |
COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE MAY PROVE DEBT |
22 |
| Section 5.3 |
APPLICATION OF PROCEEDS |
24 |
| Section 5.4 |
SUITS FOR ENFORCEMENT |
24 |
| Section 5.5 |
RESTORATION OF RIGHTS ON ABANDONMENT OF PROCEEDINGS |
25 |
| Section 5.6 |
LIMITATIONS ON SUITS BY SECURITYHOLDERS |
25 |
| Section 5.7 |
UNCONDITIONAL RIGHT OF SECURITYHOLDERS TO INSTITUTE CERTAIN SUITS |
25 |
| Section 5.8 |
POWERS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER OF DEFAULT |
25 |
| Section 5.9 |
CONTROL BY HOLDERS OF SECURITIES |
26 |
| Section 5.10 |
WAIVER OF PAST DEFAULTS |
26 |
| Section 5.11 |
TRUSTEE TO GIVE NOTICE OF DEFAULT, BUT MAY WITHHOLD IN CERTAIN CIRCUMSTANCES |
26 |
| Section 5.12 |
RIGHT OF COURT TO REQUIRE FILING OF UNDERTAKING TO PAY COSTS |
27 |
| |
|
|
| ARTICLE VI |
CONCERNING THE TRUSTEE |
|
| Section 6.1 |
DUTIES AND RESPONSIBILITIES OF THE TRUSTEE; DURING DEFAULT; PRIOR TO DEFAULT |
27 |
| Section 6.2 |
CERTAIN RIGHTS OF THE TRUSTEE |
28 |
| Section 6.3 |
TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITION OF SECURITIES OR APPLICATION OF PROCEEDS THEREOF |
30 |
| Section 6.4 |
TRUSTEE AND AGENTS MAY HOLD SECURITIES; COLLECTIONS, ETC. |
30 |
| Section 6.5 |
MONEYS HELD BY TRUSTEE |
30 |
| Section 6.6 |
COMPENSATION AND INDEMNIFICATION OF TRUSTEE AND ITS PRIOR CLAIM |
30 |
| Section 6.7 |
RIGHT OF TRUSTEE TO RELY ON OFFICER’S CERTIFICATE, ETC. |
31 |
| Section 6.8 |
[INTENTIONALLY OMITTED] |
31 |
| Section 6.9 |
QUALIFICATION OF TRUSTEE: CONFLICTING INTERESTS |
31 |
| Section 6.10 |
PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE |
31 |
| Section 6.11 |
RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR TRUSTEE |
32 |
| Section 6.12 |
ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE |
33 |
| Section 6.13 |
MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS OF TRUSTEE |
34 |
| Section 6.14 |
PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE ISSUER |
34 |
| Section 6.15 |
APPOINTMENT OF AUTHENTICATING AGENT |
34 |
| |
|
|
| ARTICLE VII |
CONCERNING THE SECURITYHOLDERS |
|
| Section 7.1 |
EVIDENCE OF ACTION TAKEN BY SECURITYHOLDERS |
35 |
| Section 7.2 |
PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF SECURITIES |
35 |
| Section 7.3 |
HOLDERS TO BE TREATED AS OWNERS |
35 |
| Section 7.4 |
SECURITIES OWNED BY ISSUER DEEMED NOT OUTSTANDING |
36 |
| Section 7.5 |
RIGHT OF REVOCATION OF ACTION TAKEN |
36 |
| |
|
|
| ARTICLE VIII |
SUPPLEMENTAL INDENTURES |
|
| Section 8.1 |
SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF SECURITYHOLDERS |
37 |
| Section 8.2 |
SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS |
38 |
| Section 8.3 |
EFFECT OF SUPPLEMENTAL INDENTURE |
40 |
| Section 8.4 |
DOCUMENTS TO BE GIVEN TO TRUSTEE |
40 |
| Section 8.5 |
NOTATION ON SECURITIES IN RESPECT OF SUPPLEMENTAL INDENTURES |
40 |
| |
|
|
| ARTICLE IX |
CONSOLIDATION, MERGER, SALE OR CONVEYANCE |
|
| Section 9.1 |
ISSUER MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS |
40 |
| Section 9.2 |
SUCCESSOR PERSON SUBSTITUTED |
41 |
| Section 9.3 |
OPINION OF COUNSEL TO BE GIVEN TO TRUSTEE |
41 |
| |
|
|
| ARTICLE X |
SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS |
|
| Section 10.1 |
SATISFACTION AND DISCHARGE OF INDENTURE |
41 |
| Section 10.2 |
APPLICATION BY TRUSTEE OF FUNDS DEPOSITED FOR PAYMENT OF SECURITIES |
45 |
| Section 10.3 |
REPAYMENT OF MONEYS HELD BY PAYING AGENT |
45 |
| Section 10.4 |
RETURN OF MONEYS HELD BY TRUSTEE AND PAYING AGENT UNCLAIMED FOR TWO YEARS |
45 |
| Section 10.5 |
INDEMNITY FOR U.S. GOVERNMENT OBLIGATIONS |
45 |
| Section 10.6 |
EFFECT ON SUBORDINATION PROVISIONS |
46 |
| |
|
|
| ARTICLE XI |
MISCELLANEOUS PROVISIONS |
|
| Section 11.1 |
INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS OF ISSUER EXEMPT FROM INDIVIDUAL LIABILITY |
46 |
| Section 11.2 |
PROVISIONS OF INDENTURE FOR THE SOLE BENEFIT OF PARTIES AND HOLDERS OF SECURITIES |
46 |
| Section 11.3 |
SUCCESSORS AND ASSIGNS OF ISSUER BOUND BY INDENTURE |
46 |
| Section 11.4 |
NOTICES AND DEMANDS ON ISSUER, TRUSTEE AND HOLDERS OF SECURITIES |
47 |
| Section 11.5 |
OFFICER’S CERTIFICATES AND OPINIONS OF COUNSEL; STATEMENTS TO BE CONTAINED THEREIN |
48 |
| Section 11.6 |
PAYMENTS DUE ON SATURDAYS, SUNDAYS AND HOLIDAYS |
49 |
| Section 11.7 |
CONFLICT OF ANY PROVISION OF INDENTURE WITH TRUST INDENTURE ACT |
49 |
| Section 11.8 |
NEW YORK LAW TO GOVERN; WAIVER OF JURY TRIAL |
49 |
| Section 11.9 |
COUNTERPARTS |
49 |
| Section 11.10 |
EFFECT OF HEADINGS |
49 |
| Section 11.11 |
SECURITIES IN A FOREIGN CURRENCY |
49 |
| Section 11.12 |
JUDGMENT CURRENCY |
50 |
| Section 11.13 |
AGREEMENT TO SUBORDINATE |
50 |
| Section 11.14 |
FORCE MAJEURE |
51 |
| Section 11.15 |
U.S.A. PATRIOT ACT |
51 |
| |
|
|
| ARTICLE XII |
REDEMPTION OF SECURITIES AND SINKING FUNDS |
|
| Section 12.1 |
APPLICABILITY OF ARTICLE |
51 |
| Section 12.2 |
NOTICE OF REDEMPTION; PARTIAL REDEMPTIONS |
51 |
| Section 12.3 |
PAYMENT OF SECURITIES CALLED FOR REDEMPTION |
52 |
| Section 12.4 |
EXCLUSION OF CERTAIN SECURITIES FROM ELIGIBILITY FOR SELECTION FOR REDEMPTION |
53 |
| Section 12.5 |
MANDATORY AND OPTIONAL SINKING FUNDS |
53 |
THIS INDENTURE, dated as of ,
by and between Green Brick Partners, Inc., a Delaware corporation (the “Issuer”), and [ ], a national banking association,
as trustee (the “Trustee”).
W I T N E S S E T H:
WHEREAS, the Issuer has duly authorized the issue
from time to time of its unsecured debentures, notes or other evidences of indebtedness to be issued in one or more series (the “Securities”)
up to such principal amount or amounts as may from time to time be authorized in accordance with the terms of this Indenture;
WHEREAS, the Issuer has duly authorized the execution
and delivery of this Indenture to provide, among other things, for the authentication, delivery and administration of the Securities;
and
WHEREAS, all things necessary to make this Indenture
a valid and legally binding indenture and agreement according to its terms have been done;
NOW, THEREFORE:
In consideration of the premises and the purchases
of the Securities by the holders thereof, the Issuer and the Trustee mutually covenant and agree for the equal and proportionate benefit
of the holders from time to time of the Securities as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 CERTAIN TERMS DEFINED. The following
terms (except as otherwise expressly provided or unless the context otherwise clearly requires) for all purposes of this Indenture and
of any indenture supplemental hereto, or any Board Resolution or Officer’s Certificate pursuant to Section 2.1 establishing a series
of Securities, shall have the respective meanings specified in this Section. All other terms used in this Indenture that are defined in
the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), or the definitions of which in the Securities
Act of 1933, as amended (the “Securities Act”), are referred to in the Trust Indenture Act, including terms defined
therein by reference to the Securities Act (except as herein otherwise expressly provided or unless the context otherwise requires), shall
have the meaning assigned to such terms in the Trust Indenture Act and in the Securities Act as in effect from time to time. All accounting
terms used herein and not expressly defined shall have the meanings assigned to such terms in accordance with generally accepted accounting
principles, and the term “generally accepted accounting principles” means such accounting principles as are generally accepted
at the time of any computation unless a different time shall be specified with respect to such series of Securities as provided for in
Section 2.3. The words “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article have the
meanings assigned to them in this Article and include the plural as well as the singular.
“Affiliate” has the same meaning
as given to that term in Rule 405 of the Securities Act or any successor provision.
“Applicable Procedures” means,
with respect to any matter at any time, the policies and procedures of a Depositary, if any, that are applicable to such matter at such
time.
“Authenticating Agent” shall
have the meaning set forth in Section 6.15.
“Board of Directors” means either
the Board of Directors of the Issuer or any committee of such Board duly authorized to act on its behalf.
“Board Resolution” means a copy
of one or more resolutions, certified by the secretary or an assistant secretary of the Issuer to have been duly adopted or consented
to by the Board of Directors and to be in full force and effect, and delivered to the Trustee.
“Business Day” means, with respect
to any Security, a day that is not a day on which banking institutions in the city (or in any of the cities, if more than one) in which
amounts are payable, as specified in the form of such Security, are authorized or required by any applicable law or regulation to be closed.
“Capital Stock” means, with respect
to any corporation, any and all shares, interests, rights to purchase (other than convertible or exchangeable indebtedness that is not
itself otherwise capital stock), warrants, options, participations or other equivalents of or interests (however designated) in stock
issued by that corporation.
“Commission” means the Securities
and Exchange Commission, as from time to time constituted, created under the Exchange Act, or if at any time after the execution and delivery
of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties on such date.
“Corporate Trust Office” means
the office of the Trustee at which the corporate trust business of the Trustee shall, at any particular time, be principally administered,
which office is, as of the date of this Indenture, located at , Attn: .
“covenant defeasance” shall have
the meaning set forth in Section 10.1(b)(iii).
“Depositary” means, with respect
to the Securities of any series issuable or issued in the form of one or more Registered Global Securities, the Person designated as Depositary
by the Issuer pursuant to Section 2.3 until a successor Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any
time there is more than one such Person, “Depositary” as used with respect to the Securities of any such series shall mean
the Depositary with respect to the Registered Global Securities of that series.
“Dollar” or “$”
means the coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private
debts.
“Equity Interests” means Capital
Stock or partnership, participation or membership interests and all warrants, options or other rights to acquire Capital Stock or partnership,
participation or membership interests (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock or
partnership, participation or membership interests).
“Event of Default” means any
event or condition specified as such in Section 5.1.
“Exchange Act” means the Securities
Exchange Act of 1934, as amended.
“Fair Value” when used with respect
to any Voting Equity Interests of the Issuer means the fair value as determined in good faith by the Board of Directors of the Issuer.
“Foreign
Currency” means any coin, currency, currency unit or composite currency, including, without limitation, the euro, issued by
the government of one or more countries, other than the United States of America or by any internationally recognized union, confederation
or association of such governments.
“Holder,” “Holder of
Securities,” “Securityholder” or any other similar terms mean the person in whose name a Security is registered
in the security register kept by the Issuer for that purpose in accordance with the terms hereof.
“Indenture” means this instrument
as originally executed and delivered or, if amended or supplemented as herein provided, as so amended or supplemented or both, and shall
include the forms and terms of particular series of Securities established as contemplated hereunder, provided, that, if at any time more
than one Person is acting as Trustee under this instrument, “Indenture” shall mean, with respect to one or more series of
Securities for which such person is trustee, this instrument as originally executed and delivered or, if amended or supplemented as herein
provided, as so amended or supplemented or both, and shall include the forms and terms of those particular series of Securities for which
such Person is Trustee established as contemplated hereunder, exclusive, however, of any provisions or terms which relate solely to other
series of Securities for which such person is not Trustee, regardless of when such terms or provisions were adopted.
“IRS” means the Internal Revenue
Service of the United States Department of the Treasury, or any successor entity.
“Issuer” means (except as otherwise
provided in Article IX) Green Brick Partners, Inc., a Delaware corporation, and, subject to Article IX, its successors and assigns.
“Issuer Order” means a written
statement, request or order of the Issuer signed in its name by the president, any vice president or the treasurer of the Issuer.
“Judgment Currency” has the meaning
set forth in Section 11.12.
“Non-U.S. Person” means any person
that is not a “U.S. person” as such term is defined in Rule 902 of the Securities Act.
“Officer’s Certificate”
means a certificate signed by any of the following: the chief executive officer, president, chief financial officer, treasurer, general
counsel or secretary of the Issuer and delivered to the Trustee.
“Opinion of Counsel” means an
opinion in writing signed by legal counsel who is reasonably acceptable to the Trustee and who may be an employee of or counsel to the
Issuer.
“Original Issue Date” of any
Security (or portion thereof) means the earlier of (a) the date of such Security or (b) the date of any Security (or portion thereof)
for which such Security was issued (directly or indirectly) on registration of transfer, exchange or substitution.
“Original Issue Discount Security”
means any Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration
of the maturity thereof pursuant to Section 5.1.
“Outstanding” (except as otherwise
provided in Section 7.4), when used with reference to Securities, means, subject to the provisions of Section 7.4, as of any particular
time, all Securities authenticated and delivered by the Trustee under this Indenture, except:
(a)
Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;
(b) Securities, or portions thereof, for the
payment or redemption of which moneys or U.S. Government Obligations (as provided for in Section 10.1) in the necessary amount shall have
been deposited in trust with the Trustee or with any paying agent (other than the Issuer) or shall have been set aside, segregated and
held in trust by the Issuer for the Holders of such Securities (if the Issuer shall act as its own paying agent), provided, that if such
Securities, or portions thereof, are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as
herein provided, or provisions reasonably satisfactory to the Trustee shall have been made for giving such notice; and
(c) Securities which shall have been paid or
in substitution for which other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.9 (except with
respect to any such Security as to which proof reasonably satisfactory to the Trustee is presented that such Security is held by a person
in whose hands such Security is a legal, valid and binding obligation of the Issuer).
In determining whether the Holders of the requisite
principal amount of Outstanding Securities of any or all series have given any request, demand, authorization, direction, notice, consent
or waiver hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of
acceleration of the maturity thereof pursuant to Section 5.1.
“Periodic Offering” means an
offering of Securities of a series from time to time, the specific terms of which Securities, including, without limitation, the rate
or rates of interest, if any, thereon, the stated maturity or maturities thereof and the redemption provisions, if any, with respect thereto,
are to be determined by the Issuer or its agents upon the issuance of such Securities.
“Person” means any individual,
corporation, business trust, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
“principal” whenever used with
reference to the Securities or any Security or any portion thereof, shall be deemed to include “and premium, if any,” provided,
however, that such inclusion of premium, if any, shall under no circumstances result in the double counting of such premium for the purpose
of any calculation required hereunder.
“record date” shall have the
meaning set forth in Section 2.7.
“Registered Global Security”
means a Security evidencing all or a part of a series of Registered Securities, issued to the Depositary or a nominee thereof for such
series in accordance with Section 2.4, and bearing the legend prescribed in Section 2.4 and any other legend required by the Depositary
for such series.
“Registered Security” means any
Security registered on the books of the Registrar.
“Registrar” means the Person
designated by the Issuer as “Registrar” for the purpose of registering Securities and transfers of Securities as herein provided,
who shall initially be the Trustee. “Registrar” shall also mean or include each Person who is then a registrar hereunder,
and, if at any time there is more than one such Person, “Registrar” as used with
respect to the Securities of any series shall mean the registrar with respect to the Securities of such series.
“Required Currency” shall have
the meaning set forth in Section 11.12.
“Responsible Officer” when used
with respect to the Trustee means any vice president (whether or not designated by numbers or words added before or after the title “Vice
President”), any assistant vice president, any trust officer, or assistant trust officer, or any other officer of the Trustee customarily
performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with the particular subject and, in each case, who shall have
direct responsibility for the administration of this Indenture.
“Security” or “Securities”
(except as otherwise provided in Section 7.4) has the meaning stated in the first recital of this Indenture, or, as the case may be, Securities
that have been authenticated and delivered under this Indenture.
“Securities Act” means the Securities
Act of 1933, as amended.
“Senior Indebtedness”, when used
with respect to the Subordinated Securities of any series, shall have the meaning established pursuant to Subsection 2.3(9) with respect
to the Subordinated Securities of such series.
“Senior Securities” means Securities
other than Subordinated Securities.
“Subordinated Securities” means
Securities that by the terms established pursuant to Subsection 2.3(9) are subordinated in right of payment to Senior Indebtedness of
the Issuer.
“Subordination Provisions”, when
used with respect to the Subordinated Securities of any series, shall have the meaning established pursuant to Subsection 2.3(9) with
respect to the Subordinated Securities of such series.
“Subsidiary,” with respect to
any Person, means (i) a corporation a majority of whose Voting Equity Interests is at the time, directly or indirectly, owned by such
Person, by such Person and one or more Subsidiaries of such Person or by one or more Subsidiaries of such Person, (ii) any other Person
(other than a corporation) in which such Person, one or more Subsidiaries of such Person, or such Person and one or more Subsidiaries
of such Person, directly or indirectly, at the date of determination thereof has at least majority ownership interest, or (iii) a partnership
in which such Person or a Subsidiary of such Person is, at the time, a general partner.
“Trustee” means the Person identified
as “Trustee” in the first paragraph hereof and, subject to the provisions of Article VI, shall also include any successor
trustee. “Trustee” shall also mean or include each Person who is then a trustee hereunder, and, if at any time there is more
than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the trustee with respect to
the Securities of such series.
“U.S. Government Obligations”
shall have the meaning set forth in Section 10.1(a).
“Voting Equity Interests” means
Equity Interests which at the time are entitled to vote in the election of, as applicable, directors, members or partners generally; provided,
that, for the purposes hereof, Equity Interests that carry only the right to vote conditionally on the happening of an event shall not
be considered Voting Equity Interests whether or not such event shall have happened.
“Yield to Maturity” means the
yield to maturity on a series of securities, calculated at the time of issuance of such series, or, if applicable, at the most recent
redetermination of interest on such series, and calculated in accordance with accepted financial practice.
ARTICLE II
SECURITIES
SECTION 2.1 FORMS GENERALLY. The Securities
of each series shall be substantially in such form (not inconsistent with this Indenture) as shall be established by or pursuant to one
or more Board Resolutions (as set forth in a Board Resolution or, to the extent established pursuant to but not set forth in a Board Resolution,
an Officer’s Certificate detailing such establishment) or in one or more indentures supplemental hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have imprinted
or otherwise reproduced thereon such legend or legends or endorsements, not inconsistent with the provisions of this Indenture, as may
be required to comply with any law or with any rules or regulations pursuant thereto, or with any rules of any securities exchange or
to conform to general usage, all as may be determined by the officer or officers executing such Securities, as evidenced by their execution
of such Securities.
The definitive Securities shall be printed or produced
in any other manner, all as determined by the officer or officers executing such Securities, as evidenced by their execution of such Securities.
SECTION 2.2 FORM OF TRUSTEE’S CERTIFICATE
OF AUTHENTICATION. The Trustee’s certificate of authentication on all Securities shall be in substantially the following form:
“This is one of the Securities referred to
in the within-mentioned Indenture.
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, as Trustee |
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By |
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Authorized Signatory |
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Dated: |
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If at any time there shall be an Authenticating
Agent appointed with respect to any series of Securities, then the Trustee’s Certificate of Authentication to be borne by the Securities
of each such series shall be substantially as follows:
“This is one of the Securities referred to
in the within-mentioned Indenture.
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as Authenticating Agent |
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By: |
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Authorized Signatory |
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Dated: |
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SECTION 2.3 AMOUNT UNLIMITED; ISSUABLE IN SERIES.
The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series.
There shall be established in or pursuant to one or more Board Resolutions (and to the extent established pursuant to but not set forth
in a Board Resolution, in an Officer’s Certificate detailing such establishment) or established in one or more indentures supplemental
hereto, prior to the initial issuance of Securities of any series,
(1) the designation of the Securities of the
series, including CUSIP numbers, which shall distinguish the Securities of the series from the Securities of all other series, and which
may be part of a series of Securities previously issued;
(2) any limit upon the aggregate principal amount
of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and
delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 2.8,
2.9, 2.11, 8.5 or 12.3);
(3) if other than Dollars, the Foreign Currency
or Foreign Currencies in which the Securities of the series are denominated;
(4) the date or dates on which the principal
of the Securities of the series is payable or the method of determination thereof;
(5) the rate or rates at which the Securities
of the series shall bear interest, if any, the date or dates from which such interest shall accrue, on which such interest shall be payable,
the terms and conditions of any deferral of interest and the additional interest, if any, thereon, the right, if any, of the Issuer to
extend the interest payment periods and the duration of the extensions and the date or dates on which a record shall be taken for the
determination of Holders to whom interest is payable and/or the method by which such rate or rates or date or dates shall be determined;
(6) the place or places where and the manner
in which, the principal of and any interest on Securities of the series shall be payable, if other than as provided in Section 3.2;
(7) the right, if any, of the Issuer to redeem
Securities, in whole or in part, at its option and the period or periods within which, or the date or dates on which, the price or prices
at which and any terms and conditions upon which Securities of the series may be so redeemed, pursuant to any sinking fund or otherwise
and any related modifications to Article XII;
(8) the obligation, if any, of the Issuer to
redeem, purchase or repay Securities of the series pursuant to any mandatory redemption, sinking fund or analogous provisions or at the
option of a Holder thereof and the price or prices at which and the period or periods within which or the date or dates on which, and
any terms and conditions upon which Securities of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to
such obligation;
(9) if the Securities of such series are Subordinated
Securities, the terms pursuant to which the Securities of such series will be made subordinate in right of payment to Senior Indebtedness
and the definition of such Senior Indebtedness with respect to such series (in the absence of an express statement to the effect that
the Securities of such series are subordinate in right of payment to all such Senior Indebtedness, the Securities of such series shall
not be subordinate to Senior Indebtedness and shall not constitute Subordinated Securities); and, in the event that the Securities of
such series are Subordinated Securities, such Board Resolution, Officer’s Certificate
or supplemental indenture, as the case may be, establishing the terms of such series shall expressly state which articles, sections or
other provisions thereof constitute the “Subordination Provisions” with respect to the Securities of such series;
(10) if other than denominations of $2,000 and
any integral multiple of $1,000 in excess thereof, the denominations in which Securities of the series shall be issuable;
(11) the percentage of the principal amount
at which the Securities will be issued, and, if other than the principal amount thereof, the portion of the principal amount of Securities
of the series which shall be payable upon declaration of acceleration of the maturity thereof and the terms and conditions of any acceleration;
(12) if other than the coin, currency or currencies
in which the Securities of the series are denominated, the coin, currency or currencies in which payment of the principal of or interest
on the Securities of such series shall be payable, including composite currencies or currency units;
(13) if the principal of or interest on the
Securities of the series are to be payable, at the election of the Issuer or a Holder thereof, in a coin or currency other than that in
which the Securities are denominated, the period or periods within which, and the terms and conditions upon which, such election may be
made;
(14) if the amount of payments of principal
of and interest on the Securities of the series may be determined with reference to an index or formula based on a coin, currency, composite
currency or currency unit other than that in which the Securities of the series are denominated, the manner in which such amounts shall
be determined;
(15) whether and under what circumstances the
Issuer will pay additional amounts on the Securities of the series held by a person who is not a U.S. person in respect of any tax, assessment
or governmental charge withheld or deducted and, if so, whether the Issuer will have the option to redeem the Securities of the series
rather than pay such additional amounts;
(16) if the Securities of the series are to
be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security of such series) only upon receipt
of certain certificates or other documents or satisfaction of other conditions, the form and terms of such certificates, documents or
conditions;
(17) any trustees, depositaries, authenticating
or paying agents, transfer agents or registrars of any other agents with respect to the Securities of such series;
(18) any deletion from, modification of or addition
to the Events of Default or covenants with respect to the Securities of such series;
(19) any deletion from, modification of or addition
to the amendment and waiver provisions in Article VIII with respect to the Securities of such series;
(20) if the Securities of the series are to
be convertible into or exchangeable for any other security or property of the Issuer, including, without limitation, securities of another
Person held by the Issuer or its Affiliates and, if so, the terms thereof; and
(21) any other terms of the series.
All
Securities of any one series shall be substantially identical, except as to denomination and except as may otherwise be provided by or
pursuant to the Board Resolution or Officer’s Certificate referred to above or as set forth in any indenture supplemental hereto.
The Issuer may, without the consent of the Holders, issue additional Securities of the same series in the future ranking equally with,
and otherwise similar in all respects to, the Securities of such series, except for any differences in the issue price and, if applicable,
the initial interest accrual date and interest payment date; provided that if the additional debt Securities are not fungible with the
debt securities of the series previously offered or sold for U.S. federal income tax purposes, the additional debt securities will have
a separate CUSIP or other identifying number as the Securities of the applicable series.
All Securities of any one series need not be issued
at the same time and may be issued from time to time without consent of any Holder, consistent with the terms of this Indenture, if so
provided by or pursuant to such Board Resolution, such Officer’s Certificate or in any indenture supplemental hereto.
The Securities of any series and any additional
Securities of such series the Issuer may issue in the future will be treated as a single series for all purposes under the Indenture,
including for purposes of determining whether the required percentage of the Holders of record of the Securities of such series has given
approval or consent to an amendment or waiver or joined in directing the Trustee to take certain actions on behalf of all Holders of the
Securities of such series.
SECTION 2.4 AUTHENTICATION AND DELIVERY OF SECURITIES.
The Issuer may deliver Securities of any series executed by the Issuer to the Trustee for authentication together with the applicable
documents referred to below in this Section 2.4, and the Trustee shall thereupon authenticate and deliver such Securities to or upon the
written order of the Issuer (contained in the Issuer Order referred to below in this Section) or deliver pursuant to such procedures acceptable
to the Trustee and to such recipients as may be specified from time to time by an Issuer Order. The maturity date, original issue date,
interest rate and any other terms of the Securities of such series shall be determined by or pursuant to such Issuer Order and Sections
2.1, 2.3 and this Section 2.4. In authenticating such Securities and accepting the additional responsibilities under this Indenture in
relation to such Securities, the Trustee shall be provided with (in the case of subparagraphs (2), (3) and (4) below only at or before
the time of the first request of the Issuer to the Trustee to authenticate Securities of such series) and (subject to Section 6.1) shall
be fully protected in conclusively relying upon, the following enumerated documents unless and until such documents have been superseded
or revoked:
(1) an Issuer Order requesting such authentication
and setting forth delivery instructions if the Securities are not to be delivered to the Issuer, provided that, with respect to Securities
of a series subject to a Periodic Offering, (a) such Issuer Order may be delivered by the Issuer to the Trustee prior to the delivery
to the Trustee of such Securities for authentication and delivery, (b) the Trustee shall authenticate and deliver Securities of such series
for original issue from time to time, in an aggregate principal amount not exceeding the aggregate principal amount established for such
series, pursuant to an Issuer Order or pursuant to procedures acceptable to the Trustee as may be specified from time to time by an Issuer
Order and (c) the maturity date or dates, original issue date or dates, interest rate or rates and any other terms of the Securities of
such series shall be determined by an Issuer Order or pursuant to such procedures;
(2) any Board Resolution, Officer’s Certificate
and/or executed supplemental indenture referred to in Sections 2.1 and 2.3 by or pursuant to which the forms and terms of the Securities
were established;
(3) an Officer’s Certificate setting forth
the form or forms and terms of the Securities, stating that the form or forms and terms of the Securities have been established pursuant
to Sections 2.1 and 2.3 and comply with this Indenture, and covering such other matters as the Trustee may reasonably request; and
(4) Either one or more Opinions of Counsel,
or, at the option of the Issuer, a letter addressed to the Trustee permitting it to rely on one or more Opinions of Counsel, substantially
to the effect that the form or forms of the Securities have been duly authorized and established in conformity with the provisions of
this Indenture and all conditions precedent to the authentication of the Securities by the Trustee have been complied with.
Any counsel may state that such opinions are limited
to matters arising under the laws of the State of New York and/or the Delaware General Corporation Law. Such counsel may rely upon opinions
of other counsel (copies of which shall be delivered to the Trustee) reasonably satisfactory to the Trustee, in which case the opinion
shall state that such counsel believes it and the Trustee are entitled so to rely. Such counsel may also state that, insofar as such opinion
involves factual matters, it has relied, to the extent such counsel deems proper, upon certificates of officers of the Issuer and its
subsidiaries and certificates of public officials.
The Trustee shall have the right to decline to authenticate
and deliver any Securities under this section if the Trustee, being advised by counsel, determines that such action may not lawfully be
taken by the Issuer or if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to
existing Holders or would affect the Trustee’s own rights, duties or immunities under the Securities, this Indenture or otherwise.
If the Issuer shall establish pursuant to Section
2.3 that the Securities of a series are to be issued in the form of one or more Registered Global Securities, then the Issuer shall execute
and the Trustee shall, in accordance with this Section and the Issuer Order with respect to such series, authenticate and deliver one
or more Registered Global Securities that (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount
of all of the Securities of such series issued and not yet cancelled, (ii) shall be registered in the name of the Depositary for such
Registered Global Security or Securities or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary
or delivered or held pursuant to such Depositary’s instructions and (iv) shall bear a legend substantially to the following effect:
“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE ISSUER OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS
OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED
TO ON THE REVERSE HEREOF.”
Each Depositary designated pursuant to Section 2.3
must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the Exchange
Act and any other applicable statute or regulation.
SECTION 2.5 EXECUTION OF SECURITIES. The
Securities shall be signed on behalf of the Issuer by the chief executive officer, president, chief financial officer, treasurer, general
counsel or secretary of the Issuer, which may, but need not, be attested. Such signatures may be the manual or facsimile signatures of
the present or any future such officers. Typographical and other minor errors or defects in any such signature shall not affect the validity
or enforceability of any Security that has been duly authenticated and delivered by the Trustee.
In case any officer of the Issuer who shall have
signed any of the Securities shall cease to be such officer before the Security so signed shall be authenticated and delivered by the
Trustee or disposed of by the Issuer, such Security nevertheless may be authenticated and delivered or disposed of as though the person
who signed such Security had not ceased to be such officer of the Issuer; and any Security may be signed on behalf of the Issuer by such
person or persons as, at the actual date of the execution of such Security, shall be the proper officer or officers of the Issuer, although
at the date of the execution and delivery of this Indenture any such person was not such an officer.
SECTION 2.6 CERTIFICATE OF AUTHENTICATION.
Only such Securities as shall bear thereon a certificate of authentication substantially in the form hereinbefore recited, executed by
the Trustee by the manual signature of one of its authorized signatories, shall be entitled to the benefits of this Indenture or be valid
or obligatory for any purpose. The execution of such certificate by the Trustee upon any Security executed by the Issuer shall be conclusive
evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled to the
benefits of this Indenture.
SECTION 2.7 DENOMINATION AND DATE OF SECURITIES;
PAYMENT OF INTEREST. The Securities of each series shall be issuable as Registered Securities in denominations established as contemplated
by Section 2.3 or, with respect to the Registered Securities of any series, if not so established, in denominations of $2,000 and any
integral multiple of $1,000 in excess thereof. The Securities of each series shall be numbered, lettered or otherwise distinguished in
such manner or in accordance with such plan as the officer or officers of the Issuer executing the same may determine with the approval
of the Trustee, as evidenced by the execution and authentication thereof.
Each Security shall be dated the date of its authentication.
The Securities of each series shall bear interest, if any, from the date, and such interest shall be payable on the dates, established
as contemplated by Section 2.3.
The person in whose name any Registered Security
of any series is registered at the close of business on any record date applicable to a particular series with respect to any interest
payment date for such series shall be entitled to receive the interest, if any, payable on such interest payment date notwithstanding
any transfer or exchange of such Registered Security subsequent to the record date and prior to such interest payment date, except if
and to the extent the Issuer shall default in the payment of the interest due on such interest payment date for such series, in which
case such defaulted interest shall be paid to the persons in whose names Outstanding Registered Securities for such series are registered
at the close of business on a subsequent record date (which shall be not less than five Business Days prior to the date of payment of
such defaulted interest) established by notice sent by or on behalf of the Issuer to the Holders of Registered Securities not less than
15 days preceding such subsequent record date. The term “record date” as used with respect to any interest payment
date (except a date for payment of defaulted interest) for the Securities of any series shall mean the date specified as such in the terms
of the Registered Securities of such series established as contemplated by Section 2.3,
or, if no such date is so established, if such interest payment date is the first day of a calendar month, the fifteenth day of the preceding
calendar month or, if such interest payment date is the fifteenth day of a calendar month, the first day of such calendar month, whether
or not such record date is a Business Day.
SECTION 2.8 REGISTRATION, TRANSFER AND EXCHANGE.
The Issuer will keep at each office or agency to be maintained for the purpose as provided in Section 3.2 for each series of Securities
a register or registers in which, subject to such reasonable regulations as the Issuer may prescribe, it will provide for the registration
of Registered Securities of such series and the registration of transfer of Registered Securities of such series. Such register shall
be in written form in the English language or in any other form capable of being converted into such form within a reasonable time. At
all reasonable times such register or registers shall be open for inspection by the Trustee.
Upon due presentation for registration of transfer
of any Registered Security of any series at any such office or agency to be maintained for the purpose as provided in Section 3.2, the
Issuer shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Registered Security
or Registered Securities of the same series, maturity date, interest rate and original issue date in authorized denominations for a like
aggregate principal amount.
At the option of the Holder thereof, Registered
Securities of any series (other than a Registered Global Security, except as set forth below) may be exchanged for a Registered Security
or Registered Securities of such series having authorized denominations and an equal aggregate principal amount, upon surrender of such
Registered Securities to be exchanged at the agency of the Issuer that shall be maintained for such purpose in accordance with Section
3.2 and upon payment, if the Issuer shall so require, of the charges hereinafter provided. Whenever any Securities are so surrendered
for exchange, the Issuer shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive. All Securities surrendered upon any exchange or transfer provided for in this Indenture shall be promptly cancelled
and disposed of by the Trustee in accordance with its regular procedures, and, upon the written request of any officer of the Issuer,
the Trustee shall deliver a certificate of cancellation and disposition thereof to the Issuer.
All Registered Securities presented for registration
of transfer, exchange, redemption or payment shall (if so required by the Issuer or the Trustee) be duly endorsed, or be accompanied by
a written instrument or instruments of transfer in form reasonably satisfactory to the Issuer and the Trustee duly executed, by the Holder
or its attorney duly authorized in writing.
The Issuer or the Registrar may require payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any exchange or registration
of transfer of Securities. No service charge shall be made for any such transaction.
Neither the Issuer nor the Registrar shall be required
to exchange or register a transfer of (a) any Securities of any series for a period of 15 days preceding the first sending of notice of
redemption of Securities of such series to be redeemed and ending at the close of business on the day such notice of redemption is sent
or (b) any Securities selected, called or being called for redemption, in whole or in part, except, in the case of any Security to be
redeemed in part, the portion thereof not so to be redeemed.
Notwithstanding any other provision of this Section
2.8, except for exchanges in whole or in part for Securities in definitive registered form, a Registered Global Security representing
all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee
of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or
any such nominee to a successor Depositary for such series or a nominee of such successor Depositary.
If at any time the Depositary for any Registered
Securities of a series represented by one or more Registered Global Securities notifies the Issuer that it is unwilling or unable to continue
as Depositary for such Registered Securities or if at any time the Depositary for such Registered Securities shall no longer be eligible
under Section 2.4, the Issuer shall appoint a successor Depositary eligible under Section 2.4 with respect to such Registered Securities.
If a successor Depositary eligible under Section 2.4 for such Registered Securities is not appointed by the Issuer within 90 days after
the Issuer receives such notice or becomes aware of such ineligibility, the Issuer’s election pursuant to Section 2.3 that such
Registered Securities be represented by one or more Registered Global Securities shall no longer be effective and the Issuer will execute,
and the Trustee, upon receipt of an Officer’s Certificate for the authentication and delivery of definitive Securities of such series,
will authenticate and deliver, Securities of such series in definitive registered form without coupons, in any authorized denominations,
in an aggregate principal amount equal to the principal amount of the Registered Global Security or Securities representing such Registered
Securities in exchange for such Registered Global Security or Securities.
The Issuer may at any time and in its sole discretion
determine that the Registered Securities of any series issued in the form of one or more Registered Global Securities shall no longer
be represented by a Registered Global Security or Securities. In such event the Issuer will execute, and the Trustee, upon receipt of
any Officer’s Certificate for the authentication and delivery of definitive Securities of such series, will authenticate and deliver,
Securities of such series in definitive registered form without coupons, in any authorized denominations, in an aggregate principal amount
equal to the principal amount of the Registered Global Security or Securities representing such Registered Securities, in exchange for
such Registered Global Security or Securities.
If specified by the Issuer pursuant to Section 2.3
with respect to Securities represented by a Registered Global Security, the Depositary for such Registered Global Security may surrender
such Registered Global Security in exchange in whole or in part for Securities of the same series in definitive registered form on such
terms as are acceptable to the Issuer and such Depositary. Thereupon, the Issuer shall execute, and the Trustee shall authenticate and
deliver, without service charge,
(a) to the Person specified by such Depositary
a new Registered Security or Securities of the same series, of any authorized denominations as requested by such Person, in an aggregate
principal amount equal to and in exchange for such Person’s beneficial interest in the Registered Global Security; and
(b) to such Depositary a new Registered Global
Security in a denomination equal to the difference, if any, between the principal amount of the surrendered Registered Global Security
and the aggregate principal amount of Registered Securities authenticated and delivered pursuant to clause (a) above.
Upon the exchange of a Registered Global Security
for Securities in definitive registered form without coupons, in authorized denominations, such Registered Global Security shall be cancelled
by the Trustee or an agent of the Issuer or the Trustee. Securities in definitive registered form without coupons issued in exchange for
a Registered Global Security pursuant to this Section 2.8 shall be registered in such names and in such authorized denominations as the
Depositary for such Registered Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee or an agent of the Issuer or the Trustee. The Trustee or such agent shall deliver such Securities to or as directed
by the Persons in whose names such Securities are so registered.
All Securities issued upon any transfer or exchange
of Securities shall be valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture,
as the Securities surrendered upon such transfer or exchange.
Neither the Issuer nor the Trustee shall have any
responsibility for any actions taken or not taken by the Depositary. All Securities issued in definitive registered form, as described
herein, shall be in “registered form” for purposes of Section 163(f) of the Internal Revenue Code of 1986, as amended.
The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Security (including any transfers between or among Depositary participants or beneficial
owners of interests in any Registered Global Security) other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express requirements hereof.
Neither the Trustee nor any Agent shall have any
responsibility for any actions taken or not taken by the Depository.
SECTION 2.9 MUTILATED, DEFACED, DESTROYED, LOST
AND STOLEN SECURITIES. In case any temporary or definitive Security shall be mutilated, defaced, destroyed, lost or stolen, the Issuer
in its discretion may execute and, upon the written request of any officer of the Issuer, the Trustee shall authenticate and deliver,
a new Security of the same series, maturity date, interest rate and original issue date, bearing a number or other distinguishing symbol
not contemporaneously outstanding, in exchange and substitution for the mutilated or defaced Security, or in lieu of and in substitution
for the Security so destroyed, lost or stolen. In every case, the applicant for a substitute Security shall furnish to the Issuer and
to the Trustee and any agent of the Issuer or the Trustee such security or indemnity as required by them to indemnify and defend and to
save each of them harmless and, in every case of destruction, loss or theft, evidence to their reasonable satisfaction of the destruction,
loss or theft of such Security and of the ownership thereof, and in the case of mutilation or defacement shall surrender the Security
to the Trustee or such agent.
Upon the issuance of any substitute Security, the
Issuer or the Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of the Trustee) or its agent connected therewith. In case
any Security which has matured or is about to mature or has been called for redemption in full shall become mutilated or defaced or be
destroyed, lost or stolen, the Issuer may, instead of issuing a substitute Security, pay or authorize the payment of the same (without
surrender thereof except in the case of a mutilated or defaced Security ), if the applicant for such payment shall furnish to the Issuer
and to the Trustee and any agent of the Issuer or the Trustee such security or indemnity as any of them may require to save each of them
harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Issuer and the Trustee and any agent
of the Issuer or the Trustee evidence to their reasonable satisfaction of the destruction, loss or theft of such Security and of the ownership
thereof.
Every substitute Security of any series issued pursuant
to the provisions of this Section by virtue of the fact that any such Security is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Issuer, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone
and shall be entitled to all the benefits of (but shall be subject to all the limitations of rights set forth in) this Indenture equally
and proportionately with any and all other Securities of such series duly authenticated and delivered hereunder. All Securities shall
be held and owned upon the express condition that, to the extent permitted by law, the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, defaced or destroyed, lost or stolen Securities and shall preclude any and all other rights
or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment
of negotiable instruments or other securities without their surrender.
SECTION 2.10 CANCELLATION OF SECURITIES; DISPOSAL
THEREOF. All Securities surrendered for payment, redemption, registration of transfer or exchange, or for credit against any payment
in respect of a sinking or analogous fund, if any, if surrendered to the Issuer or any agent of the Issuer or the Trustee or any agent
of the Trustee, shall be delivered to the Trustee or its agent for cancellation or, if surrendered to the Trustee, shall be cancelled
by it; and no Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The
Trustee or its agent shall dispose of cancelled Securities held by it in accordance with its regular procedures and deliver a certificate
of disposition to the Issuer upon the Issuer’s request in writing. If the Issuer or its agent shall acquire any of the Securities,
such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until
the same are delivered to the Trustee or its agent for cancellation.
SECTION 2.11 TEMPORARY SECURITIES. Pending
the preparation of definitive Securities for any series, the Issuer may execute and the Trustee shall authenticate and deliver temporary
Securities for such series (printed, lithographed, typewritten or otherwise reproduced, in each case in form reasonably satisfactory to
the Trustee). Temporary Securities of any series shall be issuable as Registered Securities without coupons of any authorized denomination,
and substantially in the form of the definitive Securities of such series but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Issuer with the concurrence of the Trustee as evidenced by the execution
and authentication thereof. Temporary Securities may contain such references to any provisions of this Indenture as may be appropriate.
Every temporary Security shall be executed by the Issuer and be authenticated by the Trustee upon the same conditions and in substantially
the same manner, and with like effect, as the definitive Securities. Without unreasonable delay the Issuer shall execute and shall furnish
definitive Securities of such series and thereupon temporary Registered Securities of such series may be surrendered in exchange therefor
without charge at each office or agency to be maintained by the Issuer for that purpose pursuant to Section 3.2 and the Trustee shall
authenticate and deliver in exchange for such temporary Securities of such series an equal aggregate principal amount of definitive Securities
of the same series having authorized denominations. Until so exchanged, the temporary Securities of any series shall be entitled to the
same benefits under this Indenture as definitive Securities of such series, unless otherwise established pursuant to Section 2.3.
SECTION 2.12 CUSIP NUMBERS. The Issuer in
issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as
to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance
may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any
defect in or omission of such numbers. The Issuer will promptly notify the Trustee in writing of any change in the “CUSIP”
numbers.
ARTICLE III
COVENANTS OF THE ISSUER
SECTION 3.1 PAYMENT OF PRINCIPAL AND INTEREST.
The Issuer covenants and agrees for the benefit of each series of Securities that it will duly and punctually pay or cause to be paid
the principal of, and interest on, if any, each of the Securities of such series (together with any additional amounts payable pursuant
to the terms of such Securities) at the place or places, at the respective time or times and in the manner provided in such Securities
and in this Indenture. The interest, if any, on Registered Securities (together with any additional amounts payable pursuant to the terms
of such Securities) shall be payable only to or upon the written order of the Holders thereof and, at the option of the Issuer, may be
paid by wire transfer or by mailing checks for such interest payable to or upon the written order of such Holders at their last addresses
as they appear on the Securities register of the Issuer.
SECTION 3.2 OFFICES FOR PAYMENTS, ETC. So
long as any Registered Securities are authorized for issuance pursuant to this Indenture or are outstanding hereunder, the Issuer will
maintain in an office or agency where the Registered Securities of each series may be presented for payment, where the Securities of each
series may be presented for exchange as is provided in this Indenture and, if applicable, pursuant to Section 2.3 and where the Registered
Securities of each series may be presented for registration of transfer as provided in this Indenture.
The Issuer will give to the Trustee written notice
of the location of each such office or agency and of any change of location thereof. In case the Issuer shall fail to maintain any agency
required by this Section to be located in, or shall fail to give such notice of the location or for any change in the location of any
of the above agencies, presentations and demands may be made and notices may be served at the designated office of the Trustee.
The Issuer may from time to time designate one or
more additional offices or agencies in the continental United States where the Securities of a series may be presented for payment, where
the Securities of that series may be presented for exchange as provided in this Indenture and pursuant to Section 2.3 and where the Registered
Securities of that series may be presented for registration of transfer as in this Indenture provided, and the Issuer may from time to
time rescind any such designation, as the Issuer may deem desirable or expedient; provided, that no such designation or rescission shall
in any manner relieve the Issuer of its obligations to maintain the agencies provided for in this Section. The Issuer shall give to the
Trustee prompt written notice of any such designation or rescission thereof.
SECTION 3.3 APPOINTMENT TO FILL A VACANCY IN
OFFICE OF TRUSTEE. The Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner
provided in Section 6.11, a Trustee, so that there shall at all times be a Trustee with respect to each series of Securities hereunder.
SECTION 3.4 PAYING AGENTS. Whenever the Issuer
shall appoint a paying agent other than the Trustee with respect to the Securities of any series, it will cause such paying agent to execute
and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section,
(a) that it will hold all sums received by it
as such agent for the payment of the principal of or interest on the Securities of such series (whether such sums have been paid to it
by the Issuer or by any other obligor on the Securities of such series) in trust for the benefit of the Holders of the Securities of such
series or of the Trustee;
(b) that it will give the Trustee written notice
of any failure by the Issuer (or by any other obligor on the Securities of such series) to make any payment of the principal of or interest
on the Securities of such series when the same shall be due and payable; and
(c) that it will pay any such sums so held in
trust by it to the Trustee upon the Trustee’s written request at any time during the continuance of the failure referred to in the
foregoing clause (b).
The Issuer will, on or prior to each due date of
the principal of or interest on the Securities of such series, deposit with the paying agent a sum sufficient to pay such principal or
interest so becoming due, and (unless such paying agent is the Trustee) the Issuer will promptly notify the Trustee of any failure to
take such action.
If
the Issuer shall act as its own paying agent with respect to the Securities of any series, it will, on or before each due date of the
principal of or interest on the Securities of such series, set aside, segregate and hold in trust for the benefit of the Holders of the
Securities of such series a sum sufficient to pay such principal or interest so becoming due. The Issuer will promptly notify the Trustee
in writing of any failure to take such action.
Anything in this Section to the contrary notwithstanding,
but subject to Section 10.1, the Issuer may at any time, for the purpose of obtaining a satisfaction and discharge with respect to one
or more or all series of Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust
for any such series by the Issuer or any paying agent hereunder, as required by this Section, such sums to be held by the Trustee upon
the trusts herein contained.
Anything in this Section to the contrary notwithstanding,
the agreement to hold sums in trust as provided in this Section is subject to the provisions of Sections 10.3 and 10.4.
SECTION 3.5 COMPLIANCE CERTIFICATES. The
Issuer will furnish to the Trustee on or before the date that is 120 days following the end of each fiscal year (beginning with the fiscal
year ended January 29, 2017) an officer’s certificate (which need not comply with Section 11.5) from the principal executive, financial
or accounting officer of the Issuer stating that in the course of the performance by the signer of his or her duties as an officer of
the Issuer he or she would normally have knowledge of any default or non-compliance by the Issuer in the performance of any covenants
or conditions contained in this Indenture, stating whether or not he or she has knowledge of any such default or non-compliance (without
regard to notice requirements or grace periods) and, if so, describing each such default or non-compliance of which the signer has knowledge
and the nature thereof.
The Issuer shall deliver to the Trustee, as soon
as possible and in any event within five days after the Issuer becomes aware of the occurrence of any Event of Default or an event which,
with notice or the lapse of time or both, would constitute an Event of Default, an officer’s certificate (which need not comply
with Section 11.5) setting forth the details of such Event of Default or default and the action which the Issuer proposes to take with
respect thereto.
SECTION 3.6 CORPORATE EXISTENCE. Subject
to Article IX, the Issuer will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate
existence and the rights (charter and statutory), licenses and franchises of the Issuer; provided, that the Issuer shall not be required
to preserve any such right, license or franchise, if, in the judgment of the Issuer, the preservation thereof is no longer desirable in
the conduct of the business of the Issuer and its Subsidiaries taken as a whole and the loss thereof is not disadvantageous in any material
respect to the Securityholders.
SECTION 3.7 CALCULATION OF ORIGINAL ISSUE DISCOUNT.
In the event Securities of a series are issued as Original Issue Discount Securities, the Issuer shall file with the Trustee promptly
at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities of such series as of the end of such year and (ii) such other specific information relating
to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.
ARTICLE IV
SECURITYHOLDER LISTS AND REPORTS BY THE ISSUER AND
THE TRUSTEE
SECTION 4.1 ISSUER TO FURNISH TRUSTEE INFORMATION
AS TO NAMES AND ADDRESSES OF SECURITYHOLDERS. If and so long as the Trustee shall not be the Registrar for the Securities of any series,
the Issuer and any other obligor on the Securities will furnish or cause to be furnished to the Trustee a list in such form as the Trustee
may reasonably require of the names and addresses of the Holders of the Registered Securities of such series pursuant to Section 312 of
the Trust Indenture Act:
(a) semi-annually not more than five days after
each record date for the payment of interest on such Registered Securities, as hereinabove specified, as of such record date and on dates
to be determined pursuant to Section 2.3 for non-interest bearing Registered Securities in each year; and
(b) at such other times as the Trustee may reasonably
request in writing, within 30 days after receipt by the Issuer of any such request as of a date not more than 15 days prior to the time
such information is furnished.
SECTION 4.2 REPORTS BY THE ISSUER. The Issuer
covenants to file with the Trustee, within 15 days after the Issuer is required by the Exchange Act to file the same with the Commission,
for so long as the Issuer is required by the Exchange Act to file the same, copies of the annual reports and of the information, documents,
and other reports that the Issuer may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange
Act.
Delivery of such reports, information and documents
to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of
any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any
covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).
SECTION 4.3 REPORTS BY THE TRUSTEE.
(a) The Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within sixty
days after each May 15 following the date of the initial issuance of Securities under this Indenture deliver to Holders a brief report,
dated as of such May 15, which complies with the provisions of such Section 313(a). The Trustee shall comply with Section 313(b) of the
Trust Indenture Act.
(b) A copy of each such report shall, at the
time of such transmission to Holders, be filed by the Trustee with each stock exchange, if any, upon which the Securities are listed,
with the Commission and with the Issuer. The Issuer will promptly notify the Trustee in writing when the Securities are listed on any
stock exchange and of any delisting thereof.
ARTICLE V
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT
OF DEFAULT
SECTION 5.1 EVENT OF DEFAULT DEFINED, ACCELERATION
OF MATURITY; WAIVER OF DEFAULT. “Event of Default” with respect to Securities of any series, wherever used herein,
means any one of the following events which shall have occurred and be continuing (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):
(a) default in the payment of any installment
of interest upon any of the Securities of such series as and when the same shall become due and payable, and continuance of such default
for a period of 30 days; provided that, a valid extension of an interest payment period by the Issuer in accordance with the terms of
such Securities shall not constitute a failure to pay interest; or
(b) default in the payment of all or any part
of the principal on any of the Securities of such series as and when the same shall become due and payable either at maturity, upon any
redemption, by declaration or otherwise; or
(c) failure on the part of the Issuer duly to
observe or perform any other of the covenants or agreements on the part of the Issuer in the Securities of such series or contained in
this Indenture (other than a covenant or agreement included in this Indenture solely for the benefit of a series of Securities other than
such series) for a period of 90 days after the date on which written notice specifying such failure, stating that such notice is a “Notice
of Default” hereunder and demanding that the Issuer remedy the same, shall have been given by registered or certified mail, return
receipt requested, to the Issuer by the Trustee, or to the Issuer and the Trustee by the holders of at least 25% in aggregate principal
amount of the Outstanding Securities of the series to which such covenant or agreement relates; or
(d) a court having jurisdiction in the premises
shall enter a decree or order for relief in respect of the Issuer in an involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Issuer for any substantial part of its property or ordering the winding up or liquidation of its affairs, and such decree
or order shall remain unstayed and in effect for a period of 60 consecutive days; or
(e) the Issuer shall commence a voluntary case
under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief
in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Issuer or for any substantial part of its or their property, or make any general assignment
for the benefit of creditors; or
(f) any other Event of Default provided in the
supplemental indenture, Board Resolution or Officer’s Certificate under which such series of Securities is established.
If an Event of Default described in clause (a),
(b), (c) or (f) occurs with respect to a series of Securities and is continuing, then, and in each and every such case, except for any
series of Securities the principal of which shall have already become due and payable, either the Trustee or the Holders of not less than
25% in aggregate principal amount of the Securities of each such affected series then Outstanding hereunder (each such series voting as
a separate class) by notice in writing to the Issuer (and to the Trustee if given by Securityholders), may declare the entire principal
(or, if the Securities of such series are Original Issue Discount Securities, such portion of the principal amount as may be specified
in the terms of such series) of all Securities of such series, and the interest accrued thereon, if any, to be due and payable immediately,
and upon any such declaration, the same shall become immediately due and payable.
If an Event of Default described in clause (d) or
(e) above occurs and is continuing, then the principal amount of all the Securities then Outstanding, and the interest accrued thereon,
if any, shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.
The foregoing provisions are subject to the condition
that if, at any time after the principal (or, if the Securities are Original Issue Discount Securities, such portion of the principal
as may be specified in the terms thereof) of the Securities of any series (or of all the Securities, as the case may be) shall have been
so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided,
(a) the Issuer shall pay or shall deposit with
the Trustee a sum sufficient to pay
(i) all matured installments of interest upon
all the Securities of such series (or all the Securities, as the case may be); and
(ii) the principal of any and all Securities
of such series (or of all the Securities, as the case may be) which shall have become due otherwise than by acceleration; and
(iii) interest upon such principal and, to the
extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at the same rate as the
rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified in the Securities of such series (or
at the respective rates of interest or Yields to Maturity of all the Securities, as the case may be) to the date of such payment or deposit;
and
(iv) all amounts payable to the Trustee pursuant
to Section 6.6; and
(b) all Events of Default under the Indenture,
other than the non-payment of the principal of Securities which shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein,
then and in every such case the Holders of a majority in aggregate
principal amount of all the Securities of such series voting as a separate class (or of all the Securities, as the case may be, voting
as a single class), then Outstanding, by written notice to the Issuer and to the Trustee, may waive all defaults with respect to such
series (or with respect to all the Securities, as the case may be) and rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impair any right consequent thereon.
For all purposes under this Indenture, if a portion
of the principal of any Original Issue Discount Securities shall have been accelerated and declared due and payable pursuant to the provisions
hereof, then, from and after such declaration, unless such declaration has been rescinded and annulled, the principal amount of such Original
Issue Discount Securities shall be deemed, for all purposes hereunder, to be such portion of the principal thereof as shall be due and
payable as a result of such acceleration, and payment of such portion of the principal thereof as shall be due and payable as a result
of such acceleration, together with interest, if any, thereon and all other amounts owing thereunder, shall constitute payment in full
of such Original Issue Discount Securities.
SECTION 5.2 COLLECTION OF INDEBTEDNESS BY TRUSTEE;
TRUSTEE MAY PROVE DEBT. The Issuer covenants that (a) in case default shall be made in the payment of any installment of interest
on any of the Securities of any series when such interest shall have become due and payable, and such default shall have continued for
a period of 30 days, or (b) in case default shall be made in the payment of all or any part of the principal of any of the Securities
of any series when the same shall have become due and payable, whether upon maturity of the Securities of such series or upon any redemption
or by declaration or otherwise, then upon demand of the Trustee, the Issuer will pay to the Trustee for the benefit of the Holders of
the Securities of such series the whole amount that then shall have become due and payable on all Securities of such series, for principal
and interest, as the case may be (with interest to the date of such payment upon the overdue principal and, to the extent that payment
of such interest is enforceable under applicable law, on overdue installments of interest at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified in the Securities of such series); and in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of collection, and such other amount due the Trustee under
Section 6.6 in respect of Securities of such series.
Until such demand is made by the Trustee, the Issuer
may pay the principal of and interest on the Securities of any series to the registered Holders, whether or not the Securities of such
series be overdue.
In case the Issuer shall fail forthwith to pay such
amounts upon such demand, the Trustee, in its own name as trustee of an express trust, shall be entitled and empowered to institute any
action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceedings
to judgment or final decree, and may enforce any such judgment or final decree against the Issuer or other obligor upon the Securities
and collect in the manner provided by law out of the property of the Issuer or other obligor upon the Securities, wherever situated.
In case there shall be pending proceedings relative
to the Issuer or any other obligor upon the Securities under Title 11 of the United States Code or any other applicable Federal or state
bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator
or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor, or in case
of any other comparable judicial proceedings relative to the Issuer or other obligor upon the Securities, or to the creditors or property
of the Issuer or such other obligor, the Trustee, irrespective of whether the principal of the Securities shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section, shall be entitled and empowered, by intervention in such proceedings or otherwise:
(a) to file and prove a claim or claims for
the whole amount of principal and interest (or, if the Securities of any series are Original Issue Discount Securities, such portion of
the principal amount as may be specified in the terms of such series) owing and unpaid in respect of the Securities of any series, and
to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim
for amounts payable to the Trustee under Section 6.6) and of the Securityholders allowed in any judicial proceedings relative to the Issuer
or other obligor upon the Securities, or to the creditors or property of the Issuer or such other obligor; and
(b) to collect and receive any moneys or other
property payable or deliverable on any such claims, and to distribute all amounts received with respect to the claims of the Securityholders
and of the Trustee on their behalf; and any trustee, receiver, or liquidator, custodian or other similar official performing similar functions
in respect of any such proceedings is hereby authorized by each of the Securityholders to make payments to the Trustee, and, in the event
that the Trustee shall consent to the making of payments directly to the Securityholders, to pay to the Trustee its costs and expenses
of collection and all other amounts due to it pursuant to Section 6.6.
Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities of any series or the rights of any Holder thereof, or to authorize the Trustee to vote
in respect of the claim of any Securityholder in any such proceeding, except as aforesaid in clause (b).
All rights of action and of asserting claims under
this Indenture, or under any of the Securities of any series, may be enforced by the Trustee without the possession of any of the Securities
of such series or the production thereof in any trial or other proceedings relative thereto, and any such action or proceedings instituted
by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall be awarded to the Trustee
for ratable distribution to the Holders of the Securities in respect of which such action was taken, after payment of all sums due to
the Trustee under Section 6.6 in respect of such Securities.
In any proceedings brought by the Trustee (and also
any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall
be held to represent all the Holders of the Securities in respect to which such action was taken, and it shall not be necessary to make
any Holders of such Securities parties to any such proceedings.
SECTION 5.3 APPLICATION OF PROCEEDS. Any
moneys collected by the Trustee pursuant to this Article in respect of any series shall be applied in the following order at the date
or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal or interest, upon presentation of
the several Securities in respect of which monies have been collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the presented Securities of like series if only partially paid,
or upon surrender thereof if fully paid:
FIRST: To the payment of costs and expenses
applicable to such series of Securities in respect of which monies have been collected, including all amounts due to the Trustee and each
predecessor Trustee pursuant to this Indenture in respect to such series of Securities;
SECOND: If the Securities of such series are
Subordinated Securities, to the payment of amounts then due and unpaid to the holders of Senior Indebtedness with respect to such series,
to the extent required pursuant to the Subordination Provisions established with respect to the Securities of such series pursuant to
Section 2.3(9).
THIRD: In case the principal of the Securities
of such series in respect of which moneys have been collected shall not have become and be then due and payable, to the payment of interest
on the Securities of such series in default in the order of the maturity of the installments on such interest, with interest (to the extent
that such interest has been collected by the Trustee and is permitted by applicable law) upon the overdue installments of interest at
the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified in such Securities,
such payments to be made ratably to the persons entitled thereto, without discrimination or preference;
FOURTH: In case the principal of the Securities
of such series in respect of which moneys have been collected shall have become and shall be then due and payable, to the payment of the
whole amount then owing and unpaid upon all the Securities of such series for principal and interest, with interest upon the overdue principal,
and (to the extent that such interest has been collected by the Trustee and is permitted by applicable law) upon the overdue installations
of interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Securities of such series; and in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon
the Securities of such series, then to the payment of such principal and interest or Yield to Maturity, without preference or priority
of principal over interest or Yield to Maturity, or of interest or Yield to Maturity over principal, or of any installment of interest
over any other installment of interest or of any Security of such series over any other Security of such series, ratably to the aggregate
of such principal and accrued and unpaid interest or Yield to Maturity; and
FIFTH: To the payment of the remainder, if any,
to the Issuer or to such party as a court of competent jurisdiction shall direct.
SECTION 5.4 SUITS FOR ENFORCEMENT. In case
an Event of Default has occurred, has not been waived and is continuing, the Trustee may in its discretion proceed to protect and enforce
the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect
and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any
covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.
SECTION 5.5 RESTORATION OF RIGHTS ON ABANDONMENT
OF PROCEEDINGS. In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have
been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case the
Issuer and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers
of the Issuer, the Trustee and the Securityholders shall continue as though no such proceedings had been taken.
SECTION 5.6 LIMITATIONS ON SUITS BY SECURITYHOLDERS.
No Holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute
any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to this Indenture or such Security,
or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy hereunder or thereunder,
unless (a) an Event of Default has occurred and is continuing and such Holder previously shall have given to a Responsible Officer of
the Trustee written notice of an Event of Default with respect to Securities of such series and of the continuance thereof, as hereinbefore
provided, and (b) the Holders of not less than 25% in aggregate principal amount of the Securities of such affected series then Outstanding
(treated as a single class) shall have made written request upon the Trustee to institute such action or proceedings in its own name as
Trustee hereunder and shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses
and liabilities to be incurred therein or thereby, and (c) the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity shall have failed to institute any such action or proceeding, and (d) no direction inconsistent with such written request
shall have been given to the Trustee pursuant to Section 5.9; it being understood and intended, and being expressly covenanted by the
taker and Holder of every Security with every other taker and Holder and the Trustee, that no one or more Holders of Securities of any
series shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture or any Security to affect,
disturb or prejudice the rights of any other such taker or Holder of Securities, or to obtain or seek to obtain priority over or preference
to any other such taker or Holder or to enforce any right under this Indenture or any Security, except in the manner herein provided and
for the equal, ratable and common benefit of all Holders of Securities of the applicable series. For the protection and enforcement of
the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either
at law or in equity.
SECTION 5.7 UNCONDITIONAL RIGHT OF SECURITYHOLDERS
TO INSTITUTE CERTAIN SUITS. Notwithstanding any other provision in this Indenture and any provision of any Security, the right of
any Holder of any Security to receive payment of the principal of and interest on such Security on or after the respective due dates expressed
in such Security or the applicable redemption dates provided for in such Security, or to institute suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder.
SECTION 5.8 POWERS AND REMEDIES CUMULATIVE; DELAY
OR OMISSION NOT WAIVER OF DEFAULT. Except as provided in Section 5.6, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing
at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
No delay or omission of the Trustee or of any Holder
of Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any
such right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein. Every power and remedy
given by this Indenture, any Security or law to the Trustee or to the Holders of Securities may be exercised from time to time, and as
often as shall be deemed expedient, by the Trustee or, subject to Section 5.6, by the Holders of Securities.
SECTION 5.9 CONTROL BY HOLDERS OF SECURITIES.
The Holders of a majority in aggregate principal amount of the Securities of each series affected (with each such series voting as a separate
class) at the time Outstanding shall have the right to direct the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred on the Trustee with respect to the Securities of such series by this Indenture;
provided, that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture; and provided, further,
that (subject to the provisions of Section 6.1) the Trustee shall have the right to decline to follow any such direction if (a) the Trustee,
being advised by counsel, shall determine that the action or proceeding so directed may not lawfully be taken; or (b) if the Trustee shall
determine in good faith that the action or proceedings so directed would involve the Trustee in personal liability; or (c) if the Trustee
in good faith shall so determine that the actions or forbearances specified in or pursuant to such direction would be unduly prejudicial
to the interests of Holders of the Securities of all affected series not joining in the giving of said direction, it being understood
that (subject to Section 6.1) the Trustee shall have no duty to ascertain whether or not such actions or forbearances are unduly prejudicial
to such Holders.
Nothing in this Indenture shall impair the right
of the Trustee in its discretion to take any action deemed proper by the Trustee and which is not inconsistent with such direction or
directions by Securityholders.
SECTION 5.10 WAIVER OF PAST DEFAULTS. Prior
to the declaration of acceleration of the maturity of the Securities of any series as provided in Section 5.1, the Holders of a majority
in aggregate principal amount of the Securities of such series at the time Outstanding (voting as a single class) may on behalf of the
Holders of all such Securities waive any past default or Event of Default described in Section 5.1 and its consequences, except a default
in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Security affected.
In the case of any such waiver, the Issuer, the Trustee and the Holders of all such Securities shall be restored to their former positions
and rights hereunder, respectively, and such default shall cease to exist, and any Event of Default arising therefrom shall be deemed
to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.
SECTION 5.11 TRUSTEE TO GIVE NOTICE OF DEFAULT,
BUT MAY WITHHOLD IN CERTAIN CIRCUMSTANCES. The Trustee shall, within ninety (90) days after the occurrence of a default with respect
to the Securities of any series, give written notice of all defaults with respect to that series known to a Responsible Officer to all
Holders of Securities of such series in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act, unless such
defaults shall have been cured before the sending of such notice (the term “default” for the purpose of this Section
being hereby defined to mean any event or condition which is, or with notice or lapse of time or both would become, an Event of Default);
provided, that, except in the case of default in the payment of the principal of or interest on any of the Securities of such series the
Trustee shall be protected in withholding such notice if and so long as it in good faith determines that the withholding of such notice
is in the interests of the Securityholders of such series.
SECTION 5.12 RIGHT OF COURT TO REQUIRE FILING
OF UNDERTAKING TO PAY COSTS. All parties to this Indenture agree, and each Holder of any Security by its acceptance thereof shall
be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by the Issuer, to any suit instituted by any Securityholder or group of Securityholders of any series
holding in the aggregate more than 10% in aggregate principal amount of the Securities then Outstanding of such series, or to any suit
instituted by any Securityholder for the enforcement of the payment of the principal of or interest on any Security on or after the due
date expressed in such Security or any redemption date.
ARTICLE VI
CONCERNING THE TRUSTEE
SECTION 6.1 DUTIES AND RESPONSIBILITIES OF THE
TRUSTEE; DURING DEFAULT; PRIOR TO DEFAULT. Prior to the occurrence of an Event of Default with respect to the Securities of a particular
series and after the curing or waiving of all Events of Default which may have occurred with respect to such series, the Trustee undertakes
to perform such duties and only such duties as are specifically set forth in this Indenture with respect to such series of Securities.
In case an Event of Default with respect to the Securities of a series has occurred and has not been cured or waived and is known to a
Responsible Officer, the Trustee shall exercise with respect to such series of Securities such of the rights and powers vested in it by
this Indenture with respect to such series of Securities, and use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own affairs.
No provision of this Indenture shall be construed
to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except
that
(a) prior to the occurrence of an Event of Default
known to a Responsible Officer with respect to the Securities of any series and after the curing or waiving of all such Events of Default
with respect to such series which may have occurred:
(i) the duties and obligations of the Trustee
with respect to the Securities of any series shall be determined solely by the express provisions of this Indenture, and the Trustee shall
not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee; and
(ii) in the absence of negligence and willful
misconduct on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such statements, certificates or opinions which by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein);
(b) the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts; and
(c) the Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders pursuant to Section 5.9
relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture.
None of the provisions contained in this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of
its duties or in the exercise of any of its rights or powers, if there shall be reasonable ground for believing that the repayment of
such funds or adequate indemnity against such liability is not reasonably assured to it.
The provisions of this Section 6.1 are in furtherance
of and subject to Section 315 of the Trust Indenture Act.
SECTION 6.2 CERTAIN RIGHTS OF THE TRUSTEE.
In furtherance of and subject to the Trust Indenture Act, and subject to Section 6.1:
(a) the Trustee may conclusively rely and shall
be fully protected in acting or refraining from acting upon any resolution, Officer’s Certificate or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon, security or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or parties;
(b) any request, direction, order or demand
of the Issuer mentioned herein shall be sufficiently evidenced by an Officer’s Certificate or Issuer Order (unless other evidence
in respect thereof is specifically prescribed herein or in the terms established in respect of any series); and any resolution of the
Board of Directors may be evidenced to the Trustee by a copy thereof certified by the secretary or an assistant secretary of the Issuer;
(c) the Trustee may consult with counsel of
its selection, and any advice or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted to be taken by it hereunder in good faith and in reliance thereon in accordance with such advice or Opinion
of Counsel;
(d) the Trustee shall be under no obligation
to exercise any of the trusts or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders
pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be incurred therein or thereby;
(e) the Trustee shall not be liable for any
action taken or omitted by it in good faith and believed by it to be authorized or within the discretion, rights or powers conferred upon
it by this Indenture;
(f) prior to the occurrence of an Event of Default
hereunder and after the curing or waiving of all Events of Default, the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval,
appraisal, bond, debenture, note, coupon, security, or other paper or document unless (i) requested in writing so to do by the Holders
of not less than a majority in aggregate principal amount of the Securities of all series affected then Outstanding (treated as one class)
or (ii) otherwise provided in the terms of any series of Securities pursuant to Section 2.3; provided, that, if the payment within a reasonable
time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion
of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require
security or indemnity reasonably satisfactory to it against such expenses or liabilities as a condition to proceeding; the reasonable
expenses of every such investigation shall be paid by the Issuer or, if paid by the Trustee or any predecessor trustee, shall be repaid
by the Issuer upon demand;
(g) the Trustee may execute any of the trusts
or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys not regularly in its employ and
the Trustee shall not be responsible for any negligence or willful misconduct on the part of any such agent or attorney appointed with
due care by it hereunder;
(h) the Trustee shall not be deemed to have
notice of any Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact an Event of Default is received by the Trustee at the Corporate Trust Office and such notice references the Securities,
the Issuer or this Indenture;
(i) the rights, privileges, protections, immunities
and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable
by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder;
(j) the Trustee may request that the Issuer
deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which certificate may be signed by any person authorized to sign an Officer’s Certificate, including
any person specified as so authorized in any such certificate previously delivered and not superseded;
(k) in no event shall the Trustee be responsible
or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss
of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of
action;
(l) the Trustee shall not be required to give
any bond or surety in respect of the performance of its powers and duties hereunder;
(m) the Trustee shall not have any duty to calculate
or verify any calculations; and
(n) the permissive rights or powers of the Trustee
to take or refrain from taking any actions enumerated in this Indenture shall not be construed as a duty of the Trustee.
SECTION 6.3 TRUSTEE NOT RESPONSIBLE FOR RECITALS,
DISPOSITION OF SECURITIES OR APPLICATION OF PROCEEDS THEREOF. The recitals contained herein and in the Securities, except the Trustee’s
certificates of authentication, shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for the correctness
of the same. The Trustee makes no representation as to the validity or sufficiency of this Indenture or of the Securities. The Trustee
shall not be accountable for the use or application by the Issuer of any of the Securities or of the proceeds thereof.
SECTION 6.4 TRUSTEE AND AGENTS MAY HOLD SECURITIES;
COLLECTIONS, ETC. The Trustee or any agent of the Issuer or of the Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities with the same rights it would have if it were not the Trustee or such agent and may otherwise deal with
the Issuer and receive, collect, hold and retain collections from the Issuer with the same rights it would have if it were not the Trustee
or such agent.
SECTION 6.5 MONEYS HELD BY TRUSTEE. Subject
to the provisions of Section 10.4 hereof, all moneys received by the Trustee shall, until used or applied as herein provided, be held
in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by mandatory
provisions of law. Neither the Trustee nor any agent of the Issuer or the Trustee shall be under any liability for interest on any moneys
received by it hereunder.
SECTION 6.6 COMPENSATION AND INDEMNIFICATION
OF TRUSTEE AND ITS PRIOR CLAIM. The Issuer covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be
entitled to, such compensation as the Issuer and the Trustee shall agree in writing (which shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust), and the Issuer covenants and agrees to pay or reimburse the Trustee and
each predecessor trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by or on behalf of
it in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements
of its counsel and of all agents and other persons not regularly in its employ) except any such expense, disbursement or advance as may
arise from its own negligence or willful misconduct. The Issuer also covenants to indemnify each of the Trustee or any predecessor Trustee
and their agents for, and to hold them harmless against, any and all loss, damage, claims, liability or expense, including taxes (other
than taxes based upon, measured by or determined by the income of the Trustee), arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and expenses
of defending itself against any claim (whether asserted by the Issuer,
or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder,
or in connection with enforcing the provisions of this Section, except to the extent that such loss, damage, claim, liability or expense
is determined to have been caused by its own negligence or willful misconduct. When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.1(d) or Section 5.1(e), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any applicable
bankruptcy, insolvency or other similar law. The obligations of the Issuer under this Section to compensate and indemnify the Trustee
and each predecessor trustee and to pay or reimburse the Trustee and each predecessor trustee for expenses, disbursements and advances
shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture and the resignation
or removal of the Trustee. Such additional indebtedness shall be a senior claim to that of the Securities upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Securities, and the
Securities are hereby subordinated to such senior claim.
SECTION 6.7 RIGHT OF TRUSTEE TO RELY ON OFFICER’S
CERTIFICATE, ETC. Subject to Sections 6.1 and 6.2, whenever in the administration of the trusts of this Indenture the Trustee shall
deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct
on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee,
and such certificate, in the absence of negligence or willful misconduct on the part of the Trustee, shall be full warrant to the Trustee
for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.
SECTION 6.8 [INTENTIONALLY OMITTED]
SECTION 6.9 QUALIFICATION OF TRUSTEE: CONFLICTING
INTERESTS. The Trustee shall comply with Section 310(b) of the Trust Indenture Act.
SECTION 6.10 PERSONS ELIGIBLE FOR APPOINTMENT
AS TRUSTEE. The Trustee for each series of Securities hereunder shall at all times be a corporation or banking association organized
and doing business under the laws of the United States of America, any State thereof or the District of Columbia, having a combined capital
and surplus of at least $150,000,000, and which is authorized under such laws to exercise corporate trust powers and is subject to supervision
or examination by Federal, state or District of Columbia authority. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 6.11.
The provisions of this Section 6.10 are in furtherance
of and subject to Section 310(a) of the Trust Indenture Act.
SECTION 6.11 RESIGNATION AND REMOVAL; APPOINTMENT
OF SUCCESSOR TRUSTEE. (a) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign with respect to one
or more or all series of Securities by giving written notice of resignation to the Issuer and by sending notice of such resignation to
the Holders of then Outstanding Registered Securities of each series affected in accordance with Applicable Procedures. Upon receiving
such notice of resignation, the Issuer shall promptly appoint a successor trustee or trustees with respect to the applicable series by
written instrument in duplicate, executed by authority of the Board of Directors, one copy of which instrument shall be delivered to the
resigning Trustee and one copy to the successor trustee or trustees. If no successor trustee shall have been so appointed with respect
to any series and have accepted appointment within 30 days after the sending of such notice of resignation, the resigning trustee may
petition any court of competent jurisdiction at the expense of the Issuer for the appointment of a successor trustee, or any Securityholder
who has been a bona fide Holder of a Security or Securities of the applicable series for at least six months may, subject to the provisions
of Section 5.12, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.
(b) In case at any time any of the following
shall occur:
(i) the Trustee shall fail to comply with the
provisions of Section 310(b) of the Trust Indenture Act with respect to any series of Securities after written request therefor by the
Issuer or by any Securityholder; or
(ii) the Trustee shall cease to be eligible
in accordance with the provisions of Section 6.10 and Section 310(a) of the Trust Indenture Act and shall fail to resign after written
request therefor by the Issuer or by any Securityholder who has been a bona fide Holder of a Security or Securities of such series for
at least six months; or
(iii) the Trustee shall become incapable of
acting with respect to any series of Securities, or shall be adjudged bankrupt or insolvent, or a receiver or liquidator of the Trustee
or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs
for the purpose of rehabilitation, conservation or liquidation;
(iv) then, in any such case, the Issuer may
remove the Trustee with respect to the applicable series of Securities and appoint a successor trustee for such series by written instrument,
in duplicate, executed by order of the Board of Directors of the Issuer, one copy of which instrument shall be delivered to the Trustee
so removed and one copy to the successor trustee, or, subject to the provisions of Section 315(e) of the Trust Indenture Act, any Securityholder
who has been a bona fide Holder of a Security or Securities of such series for at least six months may on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee
with respect to such series. Such court may thereupon, after such notice, if any, as it may deem proper and so prescribe, remove the Trustee
and appoint a successor trustee.
(c) The Holders of a majority in aggregate principal
amount of the Securities of each series at the time outstanding may at any time remove the Trustee with respect to Securities of such
series and appoint a successor trustee with respect to the Securities of such series by delivering to the Trustee so removed, to the successor
trustee so appointed and to the Issuer the evidence provided for in Section 7.1 of the action in that regard taken by the Securityholders
by notice in writing not less than 30 days prior to the effective date of such removal.
(d) Any resignation or removal of the Trustee
with respect to any series and any appointment of a successor trustee with respect to such series pursuant to any of the provisions of
this Section 6.11 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 6.12.
SECTION 6.12 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR
TRUSTEE. Any successor trustee appointed as provided in Section 6.11 shall execute and deliver to the Issuer and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee with respect
to all or any applicable series shall become effective and such successor trustee, without any further act, deed or conveyance, shall
become vested with all rights, powers, duties and obligations with respect to such series of its predecessor hereunder, with like effect
as if originally named as trustee for such series hereunder; but, nevertheless, on the written request of the Issuer or of the successor
trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall, subject to Section 10.4, pay over to the successor
trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument transferring to such successor trustee
all such rights, powers, duties and obligations. Upon request of any such successor trustee, the Issuer shall execute any and all instruments
in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing
to act shall, nevertheless, retain a prior claim upon all property or funds held or collected by such trustee to secure any amounts then
due it pursuant to the provisions of Section 6.6.
If a successor trustee is appointed with respect
to the Securities of one or more (but not all) series, the Issuer, the predecessor trustee and each successor trustee with respect to
the Securities of any applicable series shall execute and deliver an indenture supplemental hereto which shall contain such provisions
as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the predecessor trustee with respect
to the Securities of any series as to which the predecessor trustee is not retiring shall continue to be vested in the predecessor trustee,
and shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one trustee, it being understood that nothing herein or in such supplemental indenture shall constitute
such trustees co-trustees of the same trust and that each such trustee shall be trustee of a trust or trusts under separate indentures.
No successor trustee with respect to any series
of Securities shall accept appointment as provided in this Section 6.12 unless at the time of such acceptance such successor trustee shall
be qualified under Section 310(b) of the Trust Indenture Act and eligible under the provisions of Section 6.10.
Upon acceptance of appointment by any successor
trustee as provided in this Section 6.12, the Issuer shall give notice thereof to the Holders by sending such notice to such Holders in
accordance with Applicable Procedures. If the acceptance of appointment is substantially contemporaneous with the resignation, then the
notice called for by the preceding sentence may be combined with the notice called for by Section 6.11. If the Issuer fails to give such
notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be given
at the expense of the Issuer. The resigning Trustee shall have no responsibility or liability for any action or inaction of a successor
Trustee.
SECTION 6.13 MERGER, CONVERSION, CONSOLIDATION
OR SUCCESSION TO BUSINESS OF TRUSTEE. Any corporation or banking association into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation or banking association resulting from any merger, conversion or consolidation to
which the Trustee shall be a party, or any corporation or banking association succeeding to all or substantially all of the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder, provided, that such corporation or banking association
shall be qualified under Section 310(b) of the Trust Indenture Act and eligible under the provisions of Section 6.10, without the execution
or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.
In case at the time such successor to the Trustee
shall succeed to the trusts created by this Indenture any of the Securities of any series shall have been authenticated but not delivered,
any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Securities so
authenticated; and, in case at that time any of the Securities of any series shall not have been authenticated, any such successor to
the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor Trustee;
and in all such cases such certificate of authentication shall have the full force which under this Indenture or the Securities of such
series it is provided that the certificate of authentication of the Trustee shall have; provided, that the right to adopt the certificate
of authentication of any predecessor trustee or to authenticate Securities of any series in the name of any predecessor trustee shall
apply only to its successor or successors by merger, conversion or consolidation.
SECTION 6.14 PREFERENTIAL COLLECTION OF CLAIMS
AGAINST THE ISSUER. The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed
in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust
Indenture Act to the extent indicated.
SECTION 6.15 APPOINTMENT OF AUTHENTICATING AGENT.
As long as any Securities of a series remain Outstanding, the Trustee may, by an instrument in writing, appoint with the approval of the
Issuer an authenticating agent (the “Authenticating Agent”) which shall be authorized to act on behalf of the Trustee
to authenticate Securities, including Securities issued upon exchange, registration of transfer, partial redemption or pursuant to Section
2.9. Securities of each such series authenticated by such Authenticating Agent shall be entitled to the benefits of this Indenture and
shall be valid and obligatory for all purposes as if authenticated by the Trustee. Whenever reference is made in this Indenture to the
authentication and delivery of Securities of any series by the Trustee or to the Trustee’s Certificate of Authentication, such reference
shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent for such series and a Certificate
of Authentication executed on behalf of the Trustee by such Authenticating Agent. Such Authenticating Agent shall at all times be a corporation
organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $45,000,000 (determined as provided in Section 6.10 with respect to the
Trustee) and subject to supervision or examination by Federal or state authority.
Any corporation into which any Authenticating Agent
may be merged or converted, or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency business of any Authenticating
Agent, shall continue to be the Authenticating Agent with respect to all series of Securities for which it served as Authenticating Agent
without the execution or filing of any paper or any further act on the part of the Trustee or such Authenticating Agent. Any Authenticating
Agent may at any time, and if it shall cease to be eligible shall, resign by giving written notice of resignation to the Trustee and to
the Issuer.
Upon receiving such a notice of resignation or upon
such a termination, or in case at any time any Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section 6.15 with respect to one or more series of Securities, the Trustee shall upon receipt of an Issuer Order appoint a successor Authenticating
Agent, and the Issuer shall provide notice of such appointment to all Holders of Securities of such series in the manner and to the extent
provided in Section 11.4. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all
rights, powers, duties and responsibilities of its predecessor hereunder, with like effect as if originally named as Authenticating Agent.
The Issuer agrees to pay to the Authenticating Agent for such series from time to time reasonable compensation. The Authenticating Agent
for the Securities of any series shall have no responsibility or liability for any action taken by it as such at the direction of the
Trustee.
Sections 6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable
to any Authenticating Agent.
ARTICLE VII
CONCERNING THE SECURITYHOLDERS
SECTION 7.1 EVIDENCE OF ACTION TAKEN BY SECURITYHOLDERS.
Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by a specified percentage in principal amount of the Securityholders of any or all series may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such specified percentage of Securityholders in person or by agent duly appointed
in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee. Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Sections 6.1 and 6.2) conclusive in favor of the Trustee and the Issuer, if made in the manner
provided in this Article.
SECTION 7.2 PROOF OF EXECUTION OF INSTRUMENTS
AND OF HOLDING OF SECURITIES. Subject to Sections 6.1 and 6.2, the execution of any instrument by a Securityholder or its agent or
proxy may be proved in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as
shall be reasonably satisfactory to the Trustee. The holding of Registered Securities shall be proved by the Security register or by a
certificate of the Registrar thereof.
SECTION 7.3 HOLDERS TO BE TREATED AS OWNERS.
The Issuer, the Trustee and any agent of the Issuer or the Trustee shall deem and treat the person in whose name any Security shall be
registered upon the Security register and books of the Registrar for such series as the absolute owner of such Security (whether or not
such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment
of or on account of the principal of and, subject to the provisions of this Indenture, interest on such Security and for all other purposes;
and neither the Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall be affected by any notice to the contrary.
SECTION 7.4 SECURITIES OWNED BY ISSUER DEEMED
NOT OUTSTANDING. In determining whether the Holders of the requisite aggregate principal amount of Outstanding Securities of any or
all series have concurred in any request, demand, authorization, direction, notice, consent, waiver or other action by Securityholders
under this Indenture, Securities which are owned by the Issuer or any other obligor on the Securities with respect to which such determination
is being made or by any person directly or indirectly controlling or controlled by or under direct or indirect common control with the
Issuer or any other obligor on the Securities with respect to which such determination is being made shall be disregarded and deemed not
to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected
in relying on any such action only Securities which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the reasonable
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Issuer
or any other obligor upon the Securities or any person directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer or any other obligor on the Securities. In case of a dispute as to such right, the advice of counsel shall
be full protection in respect of any decision made by the Trustee in accordance with such advice. Upon request of the Trustee, the Issuer
shall furnish to the Trustee promptly an Officer’s Certificate listing and identifying all Securities, if any, known by the Issuer
to be owned or held by or for the account of any of the above-described persons; and, subject to Sections 6.1 and 6.2, the Trustee shall
be entitled to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purpose of any such determination.
SECTION 7.5 RIGHT OF REVOCATION OF ACTION TAKEN.
At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 7.1, of the taking of any action by the Holders
of the percentage in aggregate principal amount of the Securities of any or all series, as the case may be, specified in this Indenture
in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the
serial numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate Trust
Office and upon proof of holding as provided in this Article, revoke such action so far as concerns such Security. Except as aforesaid,
any such action taken by the Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners
of such Security and of any Securities issued in exchange or substitution therefor or on registration of transfer thereof, irrespective
of whether or not any notation in regard thereto is made upon any such Security. Any action taken by the Holders of the percentage in
aggregate principal amount of the Securities of any or all series, as the case may be, specified in this Indenture in connection with
such action shall be conclusively binding upon the Issuer, the Trustee and the Holders of all the Securities affected by such action.
ARTICLE VIII
SUPPLEMENTAL INDENTURES
SECTION 8.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT
OF SECURITYHOLDERS. The Issuer and the Trustee may from time to time and at any time amend, supplement or otherwise modify this Indenture
without the consent of any Securityholder, for any of the following purposes:
(a) to convey, transfer, assign, mortgage or
pledge to the Trustee as security for the Securities of one or more series any property or assets;
(b) to evidence the succession of another corporation
to the Issuer, or successive successions, and the assumption by the successor corporation of the covenants, agreements and obligations
of the Issuer pursuant to Article IX;
(c) to add covenants for the benefit of the
Holders or to surrender any right or power conferred upon the Issuers by this Indenture;
(d) to add any additional Events of Default
for the benefit of the Holders of all or any series of Securities (and if such additional Events of Default are to be for the benefit
of less than all series of Securities, stating that such additional Events of Default are expressly being included solely for the benefit
of such series);
(e) to add one or more guarantees for the benefit
of Holders of the Securities;
(f) subject to any limitations established pursuant
to Section 2.3, to provide for the issuance of additional Securities of any series;
(g) to comply with the rules of any applicable
Depositary;
(h) to add to or change any of the provisions
of this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Securities in uncertificated form;
(i) to add to, change or eliminate any of the
provisions of this Indenture in respect of one or more series of Securities; provided that any such addition, change or elimination (1)
shall neither (A) apply to any Security of any series created prior to the execution of such supplemental indenture and entitled to the
benefit of such provision nor (B) modify the rights of the Holder of any such Security with respect to such provision or (2) shall become
effective only when there is no Security described in clause (1)(A) Outstanding;
(j) to supplement any of the provisions of this
Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant
to Section 10.1; provided that any such action shall not adversely affect the interests of the Holders of Securities of such series or
any other series of Securities in any material respect;
(k) to comply with the rules or regulations
of any securities exchange or automated quotation system on which any of the Securities may be listed or traded;
(l) to add to, change or eliminate any of the
provisions of this Indenture as shall be necessary or desirable in accordance with any amendments to the Trust Indenture Act;
(m) to cure any ambiguity, defect, omission,
mistake, misstatement or inconsistency;
(n) to establish the forms or terms of Securities
of any series as permitted by Sections 2.1 and 2.3;
(o) to evidence and provide for the acceptance
of appointment hereunder by a successor trustee with respect to the Securities of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than
one trustee, pursuant to the requirements of Section 6.12; and
(p) to add to, change or eliminate any other
provision under this Indenture; provided that such addition, change or elimination pursuant to this clause (p) shall not adversely affect
the interests of the Holders of Securities of any series in any material respect.
The Trustee is hereby authorized to join with the
Issuer in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations which may be therein
contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee shall not
be obligated to enter into any such supplemental indenture which adversely affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions
of this Section may be executed without the consent of the Holders of any of the Securities at the time Outstanding, notwithstanding any
of the provisions of Section 8.2.
SECTION 8.2 SUPPLEMENTAL INDENTURES WITH CONSENT
OF SECURITYHOLDERS.
(a) Except as set forth in paragraph (C) below,
with the consent (evidenced as provided in Article VII) of the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding of all series of Senior Securities affected by such supplemental indenture (voting as one class) (including
consents obtained in connection with a purchase of or tender offer or exchange offer for such Senior Securities), the Issuer and the Trustee
may, from time to time and at any time, enter into an indenture or indentures supplemental hereto (which shall conform to the provisions
of the Trust Indenture Act as in force and effect at the date of execution thereof) for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the
rights of the Holders of the Securities of each such series.
(b) Except as set forth in paragraph (C) below,
with the consent (evidenced as provided in Article VII) of the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding of all series of Subordinated Securities affected by such supplemental indenture (voting as one class)
(including consents obtained in connection with a purchase of or tender offer or exchange offer for such Subordinated Securities), the
Issuer, when authorized by a Board Resolution (which resolution may provide general terms or parameters for such action and may provide
that the specific terms of such action may be determined in accordance with or pursuant to an Issuer Order), and the Trustee may, from
time to time and at any time, enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force and effect at the date of execution thereof) for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights
of the Holders of the Securities of each such series.
(c) No such supplemental indenture shall (i)
extend the final maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of
interest thereon, or reduce any amount payable on redemption thereof, or make the principal thereof (including any amount in respect of
original issue discount), or premium thereon, if any, or interest thereon payable in any coin or currency other than that provided in
the Securities or in accordance with the terms thereof, or reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon an acceleration of the maturity thereof pursuant to Section 5.1 or the amount thereof provable in bankruptcy
pursuant to Section 5.2, or in the case of Subordinated Securities of any series, contractually modify any of the Subordination Provisions
or the definition of “Senior Indebtedness” relating to such series in a manner adverse to the holders of such Subordinated
Securities, or alter the provisions of Section 11.11 or 11.12 or amend the contractual right expressly set forth in this Indenture of
any Securityholder to institute suit for the payment thereof when due or modify any provision of this Section 8.2(c), except to provide
that certain provisions of this Indenture cannot be modified or waived, in each case without the consent of the Holder of each Security
so affected, or (ii) reduce the aforesaid percentage of Securities of any series, the consent of the Holders of which is required for
any such supplemental indenture, without the consent of the Holders of each Security so affected.
(d) A supplemental indenture which changes or
eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular
series of Securities, or which modifies the rights of Holders of Securities of such series with respect to such covenant or provision,
shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series.
Upon the request of the Issuer, and upon the filing
with the Trustee of evidence of the consent of the Holders of the Securities as aforesaid and other documents, if any, required by Section
8.4, the Trustee shall join with the Issuer in the execution of such supplemental indenture unless such supplemental indenture affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.
It shall not be necessary for the consent of the
Securityholders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.
Promptly after the execution by the Issuer and the
Trustee of any supplemental indenture pursuant to the provisions of this Section, the Issuer or, at the Issuer’s written request
and expense, the Trustee shall send the Issuer’s notice thereof to the Holders of then Outstanding Registered Securities in accordance
with Applicable Procedures. Any failure of the Issuer to give such notice or cause such notice to be given, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.
SECTION 8.3 EFFECT OF SUPPLEMENTAL INDENTURE.
Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture
of the Trustee, the Issuer and the Holders of Securities of each series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.
SECTION 8.4 DOCUMENTS TO BE GIVEN TO TRUSTEE.
The Trustee, subject to the provisions of Sections 6.1 and 6.2, shall be provided with an Officer’s Certificate and an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article VIII complies with the applicable provisions
of this Indenture and is the valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms,
subject to customary exceptions.
SECTION 8.5 NOTATION ON SECURITIES IN RESPECT
OF SUPPLEMENTAL INDENTURES. Securities of any series authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article may bear a notation in form approved by the Trustee for such series as to any matter provided
for by such supplemental indenture or as to any action taken by Securityholders. If the Issuer shall so determine, subject to compliance
with Section 2.4, new Securities of any series so modified as to conform to any modification of this Indenture contained in any such supplemental
indenture may be prepared by the Issuer, authenticated by the Trustee and delivered in exchange for the Securities of such series then
Outstanding. Failure to make the appropriate notation or issue such new Securities shall not affect the validity and effect of such supplemental
indenture.
ARTICLE IX
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
SECTION 9.1 ISSUER MAY CONSOLIDATE, ETC., ONLY
ON CERTAIN TERMS. The Issuer shall not consolidate with or merge into any other Person or transfer or lease all or substantially all
of its assets to any Person, and the Issuer shall not permit any other Person to consolidate with or merge into the Issuer, unless:
(a) either the Issuer shall be the continuing
corporation, or the successor corporation or Person (if other than the Issuer) formed by such consolidation or into which the Issuer is
merged or to which all or substantially all of the assets of the Issuer are transferred or leased is a Person organized or formed under
the laws of the United States, any state of the United States or the District of Columbia; and
(b) immediately after giving effect to such
transaction and treating any indebtedness which becomes an obligation of the Issuer or a Subsidiary as a result of such transaction as
having been incurred by the Issuer or such Subsidiary at the time of such transaction, no Event of Default, and no event which, after
notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing.
SECTION 9.2 SUCCESSOR PERSON SUBSTITUTED.
The successor Person formed by such consolidation or into which the Issuer is merged or to which such transfer or lease is made shall
succeed to and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as
if such successor Person had been named as the Issuer herein, and thereafter (except in the case of a lease or transfer to another Person)
the predecessor shall be relieved of all obligations and covenants under the Indenture and the Securities and, in the event of such lease
or transfer, any such predecessor may be dissolved and liquidated.
SECTION 9.3 OPINION OF COUNSEL TO BE GIVEN TO
TRUSTEE. The Trustee, subject to the provisions of Sections 6.1 and 6.2, shall be provided with an Opinion of Counsel as conclusive
evidence that any such consolidation, merger, lease or transfer, and any such assumption, complies with the provisions of this Article
IX.
ARTICLE X
SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED
MONEYS
SECTION 10.1 SATISFACTION AND DISCHARGE OF INDENTURE.
(a) If at any time (i) the Issuer shall have
paid or caused to be paid the principal of and interest on all the Securities of any series Outstanding hereunder (other than Securities
of such series which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.9) as and when
the same shall have become due and payable, or (ii) the Issuer shall have delivered to the Trustee for cancellation all Securities of
any series theretofore authenticated (other than any Securities of such series which shall have been destroyed, lost or stolen and which
shall have been replaced or paid as provided in Section 2.9), or (iii) in the case of any series of Securities where the exact amount
(including the currency of payment) of principal of and interest due on which can be determined at the time of making the deposit referred
to in clause (B) below, all the Securities of such series not theretofore delivered to the Trustee for cancellation shall have become
due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under
arrangements reasonably satisfactory to the Trustee for the giving of notice of redemption, and (b) the Issuer shall have irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust the entire amount in (A) cash (other than moneys repaid by
the Trustee or any paying agent to the Issuer in accordance with Section 10.4), (B) in the case of any series of Securities the payments
on which may only be made in Dollars, direct obligations of the United States of America, backed by its full faith and credit (“U.S.
Government Obligations”), maturing as to principal and interest at such times and in such amounts as will insure the availability
of cash sufficient to pay at such maturity or upon such redemption, as the case may be, or (C) a combination thereof, sufficient to pay
(x) the principal and interest on all Securities of such series on each date that such principal or interest is due and payable and (y)
any mandatory sinking fund payments on the dates on which such payments are due and
payable in accordance with the terms of the Indenture and the
Securities of such series; provided, that in the case of any redemption at a price or premium to be calculated based off the Treasury
rate or similar rate, the amount deposited with the Trustee shall be sufficient for purposes of this Indenture to the extent that such
amount is equal to the price or premium calculated as of the date of the notice of redemption; and if, in any such case, the Issuer shall
also pay or cause to be paid all other sums payable hereunder by the Issuer with respect to the Securities of such series, then this Indenture
shall cease to be of further effect (except as to (i) rights of registration of transfer and exchange of Securities of such Series pursuant
to Section 2.8, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (iii) rights of holders of Securities to
receive payments of principal thereof and interest thereon, upon the original stated due dates therefor (but not upon acceleration), and
remaining rights of the Holders to receive mandatory sinking fund payments, if any, (iv) any optional redemption rights of such series
of Securities to the extent to be exercised to make such call for redemption within one year, (v) the rights, obligations, duties and
immunities of the Trustee hereunder, including those under Section 6.6, (vi) the rights of the Holders of Securities of such series as
beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them, and (vii) the obligations
of the Issuer under Section 3.2) and the Trustee, on demand of the Issuer accompanied by an Officer’s Certificate and an Opinion
of Counsel and at the cost and expense of the Issuer, shall execute proper instruments acknowledging such satisfaction of and discharging
this Indenture; provided, that the rights of Holders of the Securities to receive amounts in respect of principal of and interest on the
Securities held by them shall not be delayed longer than required by then-applicable mandatory rules or policies of any securities exchange
upon which the Securities are listed. The Issuer agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly
incurred and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee in connection with
this Indenture or the Securities of such series.
(b) The following provisions (hereinafter, “legal
defeasance”) shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution, Officer’s
Certificate or indenture supplemental hereto provided pursuant to Section 2.3. In addition to discharge of the Indenture pursuant to the
next preceding paragraph, in the case of any series of Securities the exact amounts (including the currency of payment) of principal of
and interest due on which can be determined at the time of making the deposit referred to in clause (i) below, the Issuer shall be deemed
to have paid and discharged the entire indebtedness on all the Securities of such a series on the date of the deposit referred to in subparagraph
(i) below, and the provisions of this Indenture with respect to the Securities of such series shall no longer be in effect (except as
to (1) rights of registration of transfer and exchange of Securities of such series pursuant to Section 2.8 (2) substitution of mutilated,
defaced, destroyed, lost or stolen Securities, (3) rights of Holders of Securities to receive payments of principal thereof and interest
thereon, upon the original stated due dates therefor (but not upon acceleration), and remaining rights of the Holders to receive mandatory
sinking fund payments, if any, (4) any optional redemption rights of such series of Securities, (5) the rights, obligations, duties and
immunities of the Trustee hereunder, (6) the rights of the Holders of Securities of such series as beneficiaries hereof with respect to
the property so deposited with the Trustee payable to all or any of them and (7) the obligations of the Issuer under Section 3.2) and
the Trustee, at the expense of the Issuer, shall at the Issuer’s request, execute proper instruments acknowledging the same, if
(i) with reference to this provision the Issuer
has irrevocably deposited or caused to be irrevocably deposited with the Trustee as trust funds in trust, specifically pledged as security
for, and dedicated solely to, the benefit of the Holders of the Securities of such series (1) cash in an amount, or (2) in the case of
any series of Securities the payments on which may only be made in Dollars, U.S. Government Obligations (without reinvestment), maturing
as to principal and interest at such times and in such amounts as will insure the availability of cash or (3) a combination thereof, sufficient
to pay (A) the principal and interest on all Securities of such series on each date that such principal or interest is due and payable
and (B) any mandatory sinking fund payments on the dates on which such payments are due and payable in accordance with the terms of the
Indenture and the Securities of such series; provided, that before such a deposit the Issuer may make arrangements reasonably satisfactory
to the Trustee for the redemption of Securities at a future date or dates in accordance with Article XII, which shall be given effect
in applying the foregoing; and provided, further, that in the case of any redemption at a price or premium to be calculated based off
the Treasury rate or similar rate, the amount deposited with the Trustee shall be sufficient for purposes of this Indenture to the extent
that such amount is equal to the price or premium calculated as of the date of the notice of redemption;
(ii) no Event of Default or event which with
notice or lapse of time or both would become an Event of Default with respect to the Securities (other than that resulting from borrowing
funds to make such deposit or any substantially concurrent deposit with respect to any other debt, in each case, and the granting of any
liens or security interests with respect thereto) shall have occurred and be continuing on the date of such deposit;
(iii) such deposit will not result in a breach
or violation of, or constitute a default under, any material agreement or material instrument (other than this Indenture) to which the
Issuer is a party or by which it is bound (other than that resulting from borrowing funds to make such deposit or any substantially concurrent
deposit with respect to any other debt, in each case, and the granting of any liens or security interests with respect thereto);
(iv) the Issuer has delivered to the Trustee
an Opinion of Counsel based on the fact that (x) the Issuer has received from, or there has been published by, the IRS a ruling or (y)
since the date hereof, there has been a change in the applicable United States Federal income tax law, in either case to the effect that,
and such opinion shall confirm that, the beneficial owners of the Securities of such series will not recognize income, gain or loss for
United States Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to United States Federal
income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit, defeasance and
discharge had not occurred; and
(v) the Issuer has delivered to the Trustee
an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the legal
defeasance contemplated by this provision have been complied with.
(c) The Issuer shall be released from its obligations
under Sections 3.6 and 9.1 and unless otherwise provided for in the Board Resolution, Officer’s Certificate or Indenture supplemental
hereto establishing such series of Securities, from all covenants and other obligations referred to in Section 2.3(18) or 2.3(21) with
respect to such series of Securities outstanding on and after the date the conditions set forth below are satisfied (hereinafter, “covenant
defeasance”). For this purpose, such covenant defeasance means that, with respect to the Outstanding Securities of any series,
the Issuer may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in such Section,
whether directly or indirectly by reason of any reference elsewhere herein to such Section or by reason of any reference in such Section
to any other provision herein or in any other document and such omission to comply shall not constitute an Event of Default under Section
5.1, but the remainder of this Indenture and such Securities shall be unaffected thereby. The following shall be the conditions to application
of this subsection (c) of this Section 10.1:
(i) The Issuer has irrevocably deposited or
caused to be deposited with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged
as security for, and dedicated solely to, the benefit of the holders of the Securities of such series, (1) cash in an amount, or (2) in
the case of any series of Securities the payments on which may only be made in Dollars, U.S. Government Obligations maturing as to principal
and interest at such times and in such amounts as will insure the availability of cash or (3) a combination thereof, sufficient to pay
(A) the principal and interest on all Securities of such series and (B) any mandatory sinking fund payments on the day on which such payments
are due and payable in accordance with the terms of the Indenture and the Securities of such series; provided, that before such a deposit
the Issuer may make arrangements reasonably satisfactory to the Trustee for the redemption of Securities at a future date or dates in
accordance with Article XII, which shall be given effect in applying the foregoing; and provided, further, that in the case of any redemption
at a price or premium to be calculated based off the Treasury rate or similar rate, the amount deposited with the Trustee shall be sufficient
for purposes of this Indenture to the extent that such amount is equal to the price or premium calculated as of the date of the notice
of redemption;
(ii) No Event of Default or event which with
notice or lapse of time or both would become an Event of Default with respect to the Securities (other than that resulting from borrowing
funds to make such deposit or any substantially concurrent deposit with respect to any other debt, in each case, and the granting of any
liens or security interests with respect thereto) shall have occurred and be continuing on the date of such deposit;
(iii) Such covenant defeasance shall not result
in a breach or violation of, or constitute a default under any material agreement or material instrument (other than this Indenture) to
which the Issuer is a party or by which it is bound (other than that resulting from borrowing funds to make such deposit or any substantially
concurrent deposit with respect to any other debt, in each case, and the granting of any liens or security interests with respect thereto);
(iv) The Issuer shall have delivered to the
Trustee an Officer’s Certificate and Opinion of Counsel to the effect that the beneficial owners of the Securities of such series
will not recognize income, gain or loss for United States Federal income tax purposes as a result of such covenant defeasance and will
be subject to United States Federal income tax on the same amounts, in the same manner and at the same times as would have been the case
if such covenant defeasance had not occurred; and
(v) The Issuer shall have delivered to the Trustee
an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the covenant
defeasance contemplated by this provision have been complied with.
SECTION 10.2 APPLICATION BY TRUSTEE OF FUNDS
DEPOSITED FOR PAYMENT OF SECURITIES. Subject to Section 10.4, all moneys deposited with the Trustee (or other trustee) pursuant to
Section 10.1 shall be held in trust and applied by it to the payment, either directly or through any paying agent (including the Issuer
acting as its own paying agent), to the Holders of the particular Securities of such series for the payment or redemption of which such
moneys have been deposited with the Trustee, of all sums due and to become due thereon for principal and interest; but such money need
not be segregated from other funds except to the extent required by law.
SECTION 10.3 REPAYMENT OF MONEYS HELD BY PAYING
AGENT. In connection with the satisfaction and discharge of this Indenture with respect to Securities of any series, all moneys then
held by any paying agent under the provisions of this Indenture with respect to such series of Securities shall, upon demand of the Issuer,
be repaid to it or paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such
moneys.
SECTION 10.4 RETURN OF MONEYS HELD BY TRUSTEE
AND PAYING AGENT UNCLAIMED FOR TWO YEARS. Any moneys deposited with or paid to the Trustee or any paying agent for the payment of
the principal of or interest on any Security of any series and not applied but remaining unclaimed for two years after the date upon which
such principal or interest shall have become due and payable, shall, upon the written request of the Issuer and unless otherwise required
by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer by the Trustee for such
series or such paying agent, and the Holder of the Securities of such series shall, unless otherwise required by mandatory provisions
of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which such Holder may
be entitled to collect, and all liability of the Trustee or any paying agent with respect to such moneys shall thereupon cease; provided,
that the Trustee or such paying agent, before being required to make any such repayment with respect to moneys deposited with it for any
payment in respect of Registered Securities of any series, shall at the cost and expense of the Issuer, send to Holders of such Securities
in accordance with Applicable Procedures notice, that such moneys remain and that, after a date specified therein, which shall not be
less than 30 days from the date of such mailing, any unclaimed balance of such money then remaining will be repaid to the Issuer.
SECTION 10.5 INDEMNITY FOR U.S. GOVERNMENT OBLIGATIONS.
The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 10.1 or the principal or interest received in respect of such obligations.
SECTION 10.6 EFFECT ON SUBORDINATION PROVISIONS.
Unless otherwise expressly established pursuant to Section 2.3 with respect to the Subordinated Securities of any series, the provisions
of Section 11.13 hereof, insofar as they pertain to the Subordinated Securities of such series, and the Subordination Provisions established
pursuant to Section 2.3(9) with respect to such series, are hereby expressly made subject to the provisions for satisfaction and discharge
and legal defeasance and covenant defeasance set forth in Section 10.1 hereof and, anything herein to the contrary notwithstanding, upon
the effectiveness of such satisfaction and discharge and legal defeasance and covenant defeasance pursuant to Section 10.1 with respect
to the Securities of such series, such Securities shall thereupon cease to be so subordinated and shall no longer be subject to the provisions
of Section 11.13 or the Subordination Provisions established pursuant to Section 2.3(9) with respect to such series and, without limitation
to the foregoing, all moneys, U.S. Government Obligations and other securities or property deposited with the Trustee (or other qualifying
trustee) in trust in connection with such satisfaction and discharge, legal defeasance or covenant defeasance, as the case may be, and
all proceeds therefrom may be applied to pay the principal of, premium, if any, and interest, if any, on, and mandatory sinking fund payments,
if any, with respect to the Securities of such series as and when the same shall become due and payable notwithstanding the provisions
of Section 11.13 or such Subordination Provisions.
ARTICLE XI
MISCELLANEOUS PROVISIONS
SECTION 11.1 INCORPORATORS, STOCKHOLDERS, OFFICERS
AND DIRECTORS OF ISSUER EXEMPT FROM INDIVIDUAL LIABILITY. No recourse under or upon any obligation, covenant or agreement contained
in this Indenture, or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such,
or against any past, present or future stockholder, officer or director, as such, of the Issuer or of any successor, either directly or
through the Issuer or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment
or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the
Securities by the Holders thereof and as part of the consideration for the issue of the Securities.
SECTION 11.2 PROVISIONS OF INDENTURE FOR THE
SOLE BENEFIT OF PARTIES AND HOLDERS OF SECURITIES. Nothing in this Indenture or in the Securities, expressed or implied, shall give
or be construed to give to any person, firm or corporation, other than the parties thereto and their successors and the Holders of the
Securities and, in the case of the Subordinated Securities of any series, the holders of Senior Indebtedness with respect to such series,
any legal or equitable right, remedy or claim under this Indenture or under any covenant or provision herein contained, all such covenants
and provisions being for the sole benefit of the parties hereto and their successors and of the Holders of the Securities and, in the
case of the Subordinated Securities of any series, the holders of Senior Indebtedness with respect to such series.
SECTION 11.3 SUCCESSORS AND ASSIGNS OF ISSUER
BOUND BY INDENTURE. All the covenants, stipulations, promises and agreements in this Indenture contained by or in behalf of the Issuer
shall bind its successors and assigns, whether so expressed or not.
SECTION 11.4 NOTICES AND DEMANDS ON ISSUER, TRUSTEE
AND HOLDERS OF SECURITIES. Any notice, request, direction, consent or communication made pursuant to the provisions of this Indenture
or the Notes shall be in writing and delivered in person, sent by facsimile, sent by electronic mail in pdf format, delivered by commercial
courier service or mailed by first-class mail, postage prepaid, addressed (until another address of the Issuer is filed by the Issuer
with the Trustee) to: Green Brick Partners, Inc., 5501 Headquarters Drive, Suite 300 W, Plano, TX 75024 Attention: James Brickman, or
by being e-mailed or faxed to [ ]: [ ], e-mail: [ ], Fax No.: [ ], with a copy to [ ], e-mail: [ ], Fax No.:
[ ], and to the Trustee at [ ] or by being e-mailed to [ ], or faxed to: [ ], Attention: [ ].
Where this Indenture provides for notice to Holders
of Registered Securities, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class mail, postage prepaid, to each Holder entitled thereto, at its last address as it appears in the Security register.
The Trustee agrees to accept and act upon instructions
or directions pursuant to this Indenture sent by e-mail, pdf, facsimile transmission or other similar electronic methods; provided, however,
that the Trustee shall have received an Officer’s Certificate (which need not comply with Section 314 of the Trust Indenture Act
or Section 11.5 hereof) listing the names and titles of the persons designated to give such instructions or directions and containing
specimen signatures of such designated persons, which certificate shall be amended and replaced whenever a person is to be added or deleted
from the listing. If the Issuer elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method)
and the Trustee acts upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling. The Trustee
shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance
with such instructions that the Trustee believes, in the absence of negligence and willful misconduct, to be genuine and to have been
sent by one of the persons named on the then most recent certificate referred to above notwithstanding that such instructions conflict
or are inconsistent with a subsequent written instruction. The Issuer agrees to assume all risks arising out of the use of such electronic
methods to submit the instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized
instructions, and the risk of interception and misuse of electronic communications by third parties.
Notwithstanding any other provision of this Indenture
or any Security of any series other than a provision that expressly states that this paragraph is not applicable to the Securities of
such series, when this Indenture or any Security provides for notice of any event (including any notice of redemption) to a Holder of
Securities in global form (whether by mail or otherwise), such notice shall be sufficiently given if given to the Depositary for such
Security (or its designee) pursuant to the customary procedures of such Depositary.
In any case where notice to such Holders is given
by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency
of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
In case, by reason of the suspension of or irregularities
in regular mail service, it shall be impracticable to mail notice to the Issuer when such notice is required to the given pursuant to
any provision of this Indenture, then any manner of giving such notice as shall be reasonably satisfactory to the Trustee shall be deemed
to be a sufficient giving of such notice.
SECTION 11.5 OFFICER’S CERTIFICATES AND
OPINIONS OF COUNSEL; STATEMENTS TO BE CONTAINED THEREIN. Upon any application or demand by the Issuer to the Trustee to take any action
under any of the provisions of this Indenture, the Issuer shall furnish to the Trustee an Officer’s Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such
application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion need be furnished.
Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall include
(a) a statement that the person making such certificate or opinion has read such covenant or condition, (b) a brief statement as to the
nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based, (c) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him
to express an informed opinion as to whether or not such covenant or condition has been complied with and (d) a statement as to whether
or not, in the opinion of such person, such condition or covenant has been complied with.
In any case where several matters are required to
be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered
by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate, statement or opinion of an officer
of the Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless
such officer knows that the certificate or opinion or representations with respect to the matters upon which his or her certificate, statement
or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any
certificate, statement or opinion of counsel may be based, insofar as it relates to factual matters or information with respect to which
is in the possession of the Issuer, upon the certificate, statement or opinion of or representations by an officer or officers of the
Issuer, unless such counsel knows that the certificate, statement or opinion or representations with respect to the matters upon which
his or her certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know
that the same are erroneous.
Any certificate, statement or opinion of an officer
of the Issuer or of counsel may be based upon a certificate, report or opinion of or representations by an accountant, firm of accountants,
investment bank or appraisal firm, unless such officer or counsel, as the case may be, knows that the certificate, report or opinion of
or representations with respect to the matters upon which his or her certificate, statement or opinion may be based as aforesaid are erroneous,
or in the exercise of reasonable care should know that the same are erroneous.
Where any Person is required to make, give or execute
two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.
Any certificate, report or opinion of any independent
firm of public accountants filed with and directed to the Trustee shall contain a statement that such firm is independent.
SECTION 11.6 PAYMENTS DUE ON SATURDAYS, SUNDAYS
AND HOLIDAYS. If the date of maturity of interest on or principal of the Securities of any series or the redemption date or repayment
of any such Security shall not be a Business Day, then payment of interest or principal need not be made on such date, but may be made
on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the redemption date, and no additional
interest shall accrue for the period after such date.
SECTION 11.7 CONFLICT OF ANY PROVISION OF INDENTURE
WITH TRUST INDENTURE ACT. If and to the extent that any provision of this Indenture limits, qualifies or conflicts with duties imposed
by, or with another provision (an “incorporated provision”) included in this Indenture by operation of Sections 310
to 318, inclusive, of the Trust Indenture Act, such imposed duties or incorporated provision shall control.
SECTION 11.8 NEW YORK LAW TO GOVERN; WAIVER OF
JURY TRIAL. THIS INDENTURE AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR
ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE.
EACH OF THE ISSUER AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 11.9 COUNTERPARTS. This Indenture
may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but
one and the same instrument. The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute
effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all
purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
SECTION 11.10 EFFECT OF HEADINGS. The Article
and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.
SECTION 11.11 SECURITIES IN A FOREIGN CURRENCY.
Unless otherwise specified in an Officer’s Certificate delivered pursuant to Section 2.3 of this Indenture with respect to a particular
series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate
principal amount of Securities of all series or all series affected by a particular action at the time Outstanding and, at such time,
there are Outstanding Securities of any series which are denominated in a Foreign Currency, then the principal amount of Securities of
such series which shall be deemed to be Outstanding for the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the “Market Exchange Rate”. For purposes of this Section 11.11, Market Exchange Rate shall
mean the noon Dollar buying rate in The City of New York for cable transfers of such
currency or currencies as published by the Federal Reserve Bank of
New York as of the most recent available date. If such Market Exchange Rate is not available for any reason with respect to such currency,
the paying agent shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New
York or quotations from one or more major banks in The City of New York or in the country of issue of the currency in question, which
for purposes of the euro shall be any member state of the European Union that has adopted the euro, as the paying agent shall deem appropriate.
The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a series denominated
in a currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.
All decisions and determinations of the paying agent
regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all purposes and irrevocably binding upon
the Issuer and all Holders.
SECTION 11.12 JUDGMENT CURRENCY. The Issuer
agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of the principal of or interest on the Securities of any series (the “Required
Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange
used shall be the rate at which in accordance with normal banking procedures the paying agent could purchase in The City of New York the
Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New
York Banking Day, then, to the extent permitted by applicable law, the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the paying agent could purchase in The City of New York the Required Currency with the Judgment Currency
on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture
to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or any recovery pursuant to any judgment
(whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that
such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be
payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering
in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture. For
purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The
City of New York or a day on which banking institutions in The City of New York are authorized or required by law or executive order to
close.
SECTION 11.13 AGREEMENT TO SUBORDINATE. The
Issuer, for itself, its successors and assigns, covenants and agrees, and each Holder of Subordinated Securities of any series by its
acceptance thereof, likewise covenants and agrees, that the payment of the principal of (and premium, if any) and interest, if any, on,
and mandatory sinking fund payments, if any, in respect of each and all of the Subordinated Securities of such series shall be expressly
subordinated, to the extent and in the manner provided in the Subordination Provisions established with respect to the Subordinated Securities
of such series pursuant to Section 2.3(9) hereof, in right of payment to the prior payment in full of all Senior Indebtedness with respect
to such series.
SECTION 11.14 FORCE MAJEURE. In no event
shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions
of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.
SECTION 11.15 U.S.A. PATRIOT ACT. The parties
hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies
each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree
that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the
U.S.A. Patriot Act.
ARTICLE XII
REDEMPTION OF SECURITIES AND SINKING FUNDS
SECTION 12.1 APPLICABILITY OF ARTICLE. The
provisions of this Article shall be applicable to the Securities of any series which are redeemable before their maturity or to any sinking
fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 2.3 for Securities of such
series.
SECTION 12.2 NOTICE OF REDEMPTION; PARTIAL REDEMPTIONS.
Notice of redemption to the Holders of Registered Securities of any series to be redeemed as a whole or in part at the option of the Issuer
shall be given by sending notice of such redemption, at least 15 days and not more than 60 days prior to the redemption date, to such
Holders of Securities of such series in accordance with Applicable Procedures, except that redemption notices may be delivered more than
60 days prior to a redemption if the notice is issued in connection with legal defeasance, covenant defeasance or discharge of any series
of Securities pursuant to Section 10.1. Any notice which is sent in accordance with Applicable Procedures shall be conclusively presumed
to have been duly given, whether or not the Holder receives the notice. Any defect in the notice to the Holder of any Security of a series
designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of such Security of
such series. A notice of redemption may be conditional.
The notice of redemption to each such Holder shall
identify the Securities to be redeemed (including CUSIP number(s)) and specify the aggregate principal amount of Securities of such series
to be redeemed, the redemption date, any conditions to such redemption, the redemption price, the place or places of payment, that payment
will be made upon presentation and surrender of such Securities, that such redemption is pursuant to a mandatory or optional sinking fund,
or both, if such be the case, that interest accrued to, but not including, the redemption date will be paid as specified in such notice
and that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue. In case any Security
of a series is to be redeemed in part only, the notice of redemption to Holders of Securities of the series shall state the portion of
the principal amount thereof to be redeemed and shall state that on and after the redemption date, upon surrender of such Security, a
new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.
The notice of redemption of Securities of any series
to be redeemed at the option of the Issuer shall be given by the Issuer or, at the Issuer’s request at least two (2) Business Days
prior to the date the notice must be mailed to Holders (and five (5) Business Days in the case of a partial redemption of a series of
Securities) (in each case, unless the Trustee otherwise agrees to a shorter period), by the Trustee in the name and at the expense of
the Issuer.
On or before 11:00 a.m., New York City time, on
the redemption date, the Issuer will deposit with the Trustee or with one or more paying agents (or, if the Issuer is acting as its own
paying agent, set aside, segregate and hold in trust as provided in Section 3.4) an amount of money sufficient to redeem on the redemption
date all the Securities of such series so called for redemption at the appropriate redemption price, together with accrued interest to
the redemption date. The Issuer will deliver to the Trustee at least 70 days prior to the redemption date, or such shorter period as shall
be acceptable to the Trustee, an Officer’s Certificate stating the aggregate principal amount of Securities to be redeemed. In case
of a redemption at the election of the Issuer prior to the expiration of any restriction on such redemption, the Issuer shall deliver
to the Trustee, prior to the giving of any notice of redemption to Holders pursuant to this Section, an Officer’s Certificate stating
that such restriction has been complied with.
If less than all the Securities of a series are
to be redeemed, the Trustee shall select, in such manner as it shall deemed appropriate and fair in accordance with the procedures of
the Depositary, in its sole discretion, Securities of such series to be redeemed in whole or in part. Securities may be redeemed in part
in multiples equal to the minimum authorized denomination for Securities of such series or any multiple thereof. The Trustee shall promptly
notify the Issuer in writing of the Securities of such series selected for redemption and, in the case of any Securities of such series
selected for partial redemption, the principal amount thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities of any series shall relate, in the case of any Security redeemed or
to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.
For all purposes of this indenture, “redemption
date” means the date the securities are actually redeemed, which date shall be subject, if applicable, to such redemption date
occurring if such redemption is subject to one or more conditions precedent.
SECTION 12.3 PAYMENT OF SECURITIES CALLED FOR
REDEMPTION. If notice of redemption has been given as above provided (subject, if applicable, to such redemption date occurring if
such redemption is subject to one or more conditions precedent), the Securities or portions of Securities specified in such notice shall
become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued
to, but not including, the redemption date, and on and after said date (unless the Issuer shall default in the payment of such Securities
at the redemption price, together with interest accrued to said date) interest on the Securities or portions of Securities so called for
redemption shall cease to accrue, and, except as provided in Sections 6.5 and 10.4, such Securities shall cease from and after the redemption
date to be entitled to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities
except the right to receive the redemption price thereof and unpaid interest to the redemption date. On presentation and surrender of
such Securities at a place of payment specified in said notice, said Securities or the specified portions thereof shall be paid and redeemed
by the Issuer at the applicable redemption price, together with interest accrued thereon to the redemption date (subject, if applicable,
to such redemption date occurring if such redemption is subject to one or more conditions precedent); provided, that payment of interest
becoming due on or prior to, but not including, the redemption date shall be payable to the Holder of such Registered Securities registered
as such on the relevant record date, subject to the terms and provisions of Section 2.3 and 2.7 hereof.
If any Security called for redemption shall not
be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the redemption
date at the rate of interest or Yield to Maturity (in the case of an Original Issue Discount Security) borne by such Security.
Upon presentation of any Security redeemed in part
only, the Issuer shall execute and the Trustee shall authenticate and deliver to or on the order of the Holder thereof, at the expense
of the Issuer, a new Security or Securities of such series, of authorized denominations, in principal amount equal to the unredeemed portion
of the Security so presented.
Notice of any optional redemption of the Securities
(including in connection with another transaction (or series of related transactions)) may, at the Issuer’s discretion, be given
prior to the completion or the occurrence thereof and any such redemption or notice may, at the Issuer’s discretion, be subject
to one or more conditions precedent, including, but not limited to, completion or occurrence of a transaction or event, as the case may
be. In addition, if such redemption is subject to satisfaction of one or more conditions precedent, such notice shall describe each such
condition, and if applicable, shall state that, in the Issuer’s discretion, the redemption date may be delayed until such time (including
more than 60 days after the date the notice of redemption was mailed or delivered, including by electronic transmission or otherwise in
accordance with procedures of the Depositary) as any or all such conditions shall be satisfied (or waived by the Issuer in the Issuer’s
discretion), or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not
have been satisfied (or waived by the Issuer in the Issuer’s discretion) by the redemption date, or by the redemption date as so
delayed, or such notice may be rescinded at any time in the Issuer’s discretion if in the good faith judgment of the Issuer any
or all of such conditions will not be satisfied. In addition, the Issuer may provide in such notice that payment of the redemption price
and performance of the Issuer’s obligations with respect to such redemption may be performed by another Person. In no event shall
the Trustee be responsible for monitoring, or charged with knowledge of, the maximum aggregate amount of the Securities eligible under
this Indenture to be redeemed.
SECTION 12.4 EXCLUSION OF CERTAIN SECURITIES
FROM ELIGIBILITY FOR SELECTION FOR REDEMPTION. Securities shall be excluded from eligibility for selection for redemption if they
are identified by registration and certificate number in an Officer’s Certificate delivered to the Trustee at least 40 days prior
to the last date on which notice of redemption may be given as being owned of record and beneficially by, and not pledged or hypothecated
by, either (a) the Issuer or (b) an entity specifically identified in such written statement as directly or indirectly controlling or
controlled by or under direct or indirect common control with the Issuer.
SECTION 12.5 MANDATORY AND OPTIONAL SINKING FUNDS.
The minimum amount of any sinking fund payment provided for by the terms of the Securities of any series is herein referred to as a “mandatory
sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of the Securities of any series
is herein referred to as an “optional sinking fund payment.” The date on which a sinking fund payment is to be made
is herein referred to as the “sinking fund payment date.”
In lieu of making all or any part of any mandatory
sinking fund payment with respect to any series of Securities in cash, the Issuer may at its option (a) deliver to the Trustee Securities
of such series theretofore purchased or otherwise acquired (except upon redemption pursuant to the mandatory sinking fund) by the Issuer
or receive credit for Securities of such series (not previously so credited) theretofore purchased or otherwise acquired (except as aforesaid)
by the Issuer and delivered to the Trustee for cancellation pursuant to Section 2.10, (b) receive credit for optional sinking fund payments
(not previously so credited) made pursuant to this Section, or (c) receive credit for Securities of such series (not previously so credited)
redeemed by the Issuer through any optional redemption provision contained in the terms of such series. Securities so delivered or credited
shall be received or credited by the Trustee at the sinking fund redemption price specified in such Securities.
On or before the 60th day next preceding each sinking
fund payment date for any series, the Issuer will deliver to the Trustee an Officer’s Certificate (which need not contain the statements
required by Section 11.5) (i) specifying the portion of the mandatory sinking fund payment to be satisfied by payment of cash and the
portion to be satisfied by credit of Securities of such series and the basis for such credit, (ii) stating that none of the Securities
of such series has theretofore been so credited, (iii) stating that no defaults in the payment of interest or Events of Default with respect
to such series have occurred (which have not been waived or cured) and are continuing and (iv) stating whether or not the Issuer intends
to exercise its right to make an optional sinking fund payment with respect to such series and, if so, specifying the amount of such optional
sinking fund payment which the Issuer intends to pay on or before the next succeeding sinking fund payment date. Any Securities of such
series to be credited and required to be delivered to the Trustee in order for the Issuer to be entitled to credit therefor as aforesaid
which have not theretofore been delivered to the Trustee shall be delivered for cancellation pursuant to Section 2.10 to the Trustee with
such Officer’s Certificate (or reasonably promptly thereafter if acceptable to the Trustee). Such Officer’s Certificate shall
be irrevocable and upon its receipt by the Trustee, the Issuer shall become unconditionally obligated to make all the cash payments or
payments therein referred to, if any, on or before the next succeeding sinking fund payment date. Failure of the Issuer, on or before
any such 60th day, to deliver such Officer’s Certificate and Securities specified in this paragraph, if any, shall not constitute
a default but shall constitute, on and as of such date, the irrevocable election of the Issuer (x) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be paid entirely in cash without the option to deliver or credit
Securities of such series in respect thereof and (y) that the Issuer will make no optional sinking fund payment with respect to such series
as provided in this Section.
If the sinking fund payment or payments (mandatory
or optional or both) to be made in cash on the next succeeding sinking fund payment date plus any unused balance of any preceding sinking
fund payments made in cash shall exceed $50,000 (or the equivalent thereof in any Foreign Currency) or a lesser sum in Dollars (or the
equivalent thereof in any Foreign Currency) if the Issuer shall so request with respect to the Securities of any particular series, such
cash shall be applied on the next succeeding sinking fund payment date to the redemption of Securities of such series at the sinking fund
redemption price together with accrued interest to the redemption date. If such amount shall be $50,000 (or the equivalent thereof in
any Foreign Currency) or less and the Issuer makes no such request then it shall be carried over until a sum in excess of $50,000 (or
the equivalent thereof in any Foreign Currency) is available. The Trustee shall select, in the manner provided in Section 12.2, for redemption
on such sinking fund payment date a sufficient principal amount of Securities of such series to absorb said cash, as nearly as may be,
and shall (if requested in writing by the Issuer) inform the Issuer of the serial numbers of the Securities of such series (or portions
thereof) so selected. Securities shall
be excluded from eligibility for redemption under this Section if
they are identified by registration and certificate number in an Officer’s Certificate delivered to the Trustee at least 60 days
prior to the sinking fund payment date as being owned of record and beneficially by, and not pledged or hypothecated by, either (a) the
Issuer or (b) an entity specifically identified in such Officer’s Certificate as directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer. The Trustee, in the name and at the expense of the Issuer (or the Issuer,
if it shall so request the Trustee in writing) shall cause notice of redemption of the Securities of such series to be given in substantially
the manner provided in Section 12.2 (and with the effect provided in Section 12.3) for the redemption of Securities of such series in
part at the option of the Issuer. The amount of any sinking fund payments not so applied or allocated to the redemption of Securities
of such series shall be added to the next cash sinking fund payment for such series and, together with such payment, shall be applied
in accordance with the provisions of this Section. Any and all sinking fund moneys held on the stated maturity date of the Securities
of any particular series (or earlier, if such maturity is accelerated), which are not held for the payment or redemption of particular
Securities of such series shall be applied, together with other moneys, if necessary, sufficient for the purpose, to the payment of the
principal of, and interest on, the Securities of such series at maturity.
On or before each sinking fund payment date, the
Issuer shall pay to the Trustee in cash or shall otherwise provide for the payment of all interest accrued to the redemption date on Securities
to be redeemed on the next following sinking fund payment date.
The Trustee shall not redeem or cause to be redeemed
any Securities of a series with sinking fund moneys or give any notice of redemption of Securities for such series by operation of the
sinking fund during the continuance of a default in payment of interest on such Securities or of any Event of Default except that, where
the giving of notice of redemption of any Securities shall theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Issuer a sum sufficient for such redemption. Except as aforesaid, any moneys
in the sinking fund for such series at the time when any such default or Event of Default shall occur, and any moneys thereafter paid
into the sinking fund, shall, during the continuance of such default or Event of Default be deemed to have been collected under Article
V and held for the payment of all such Securities. In case such Event of Default shall have been waived as provided in Section 5.10 or
the default cured on or before the sixtieth day preceding the sinking fund payment date in any year, such moneys shall thereafter be applied
on the next succeeding sinking fund payment date in accordance with this Section to the redemption of such Securities.
IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed as of the date first written above.
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GREEN BRICK PARTNERS, INC. |
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By: |
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Name: |
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Title: |
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[ ], as Trustee |
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By: |
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Name: |
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Title: |
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[Signature Page to Indenture]
56
EXHIBIT
5.1
September 6, 2023
Green Brick Partners Inc.
5501 Headquarters Drive, Suite 300 W
Plano, Texas 75024
Ladies and Gentlemen:
We have acted as counsel to Green Brick Partners, Inc.,
a Delaware corporation (the “Company”), in connection with the automatic shelf registration statement on Form S-3 (such registration
statement, including the documents incorporated by reference therein, the “Registration Statement”) filed with the Securities
and Exchange Commission (the “Commission”) on September 6, 2023 relating to the offering by the Company of: (a) an indeterminate
amount of (i) shares of common stock, $0.01 par value per share (“Common Stock”); (ii) shares of preferred stock, $0.01 par
value per share (“Preferred Stock”); (iii) depositary shares representing whole or fractional interests in Preferred Stock
(“Depositary Shares”); (iv) debt securities (the “Debt Securities”); (v) warrants to purchase Common Stock, Preferred
Stock or Debt Securities (“Warrants”); and (b) an indeterminate amount of shares of Common Stock issued and outstanding as
of the date hereof that may be sold by selling stockholders (the “Selling Stockholder Shares”), in each case, as described
in the base prospectus forming a part of the Registration Statement (the “Base Prospectus”) as may be supplemented in the
future by one or more supplements to the Base Prospectus (each a “Prospectus Supplement” and together with the Base Prospectus,
a “Prospectus”). The Common Stock, the Preferred Stock, the Depositary Shares, the Debt Securities, the Warrants and the Selling
Stockholder Shares are hereinafter referred to, collectively, as the “Securities.”
This opinion letter is being furnished in accordance
with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act.
We have made such legal and factual examinations and
inquiries, including an examination of originals or copies certified or otherwise identified to our satisfaction of such documents, corporate
records and instruments, as we have deemed necessary or appropriate for purposes of this opinion. In our examination, we have assumed
the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity to authentic original
documents of all documents submitted to us as copies. As to facts material to the opinions, statements and assumptions expressed herein,
we have, with your consent, relied upon oral or written statements and representations of officers and other representatives of the Company
and others. We have not independently verified such factual matters.
In expressing our opinions below, we have assumed, with
your consent, that:
1.
the Registration Statement (including any and all required post-effective amendments thereto) will
have become effective under the Securities Act and will comply with all applicable laws;
2.
the Registration Statement (including any and all required post-effective amendments thereto) will
be effective under the Securities Act and will comply with all applicable laws at the time the Securities are offered or issued as contemplated
by the Registration Statement (including any and all required post-effective amendments thereto), the Base Prospectus, and the applicable
Prospectus Supplement(s);
September 6, 2023
Page 2
3.
no stop order suspending the effectiveness of the Registration Statement (including any and all required
post-effective amendments thereto) will have been issued and remain in effect;
4.
a Prospectus Supplement describing the Securities offered thereby and the offering thereof and complying
with all applicable laws will have been prepared and filed with the Commission;
5.
the Securities will be offered and sold in the form and with the terms set forth in the Registration
Statement (including any and all required post-effective amendments thereto), the Base Prospectus, and the applicable Prospectus Supplement(s)
and the organizational documents of the Company, as applicable;
6.
the Securities will be issued and sold in compliance with all applicable federal and state securities
laws and in the manner stated in the Registration Statement (including any and all required post-effective amendments thereto), the Base
Prospectus, and the applicable Prospectus Supplement(s);
7.
the Company will have obtained any and all legally required consents, approvals, authorizations and
other orders of the Commission and any and all other regulatory authorities and other third parties necessary to offer and sell the Securities
being offered;
8.
a definitive purchase, underwriting, sales or similar agreement (each a “Purchase Agreement”)
with respect to any Securities offered or issued will have been duly authorized and validly executed and delivered by the Company and
the other parties thereto;
9.
the Indentures will have been duly authorized and validly executed and delivered by the Company and
the other parties thereto; and
10.
any Securities or other securities issuable upon conversion, exchange or exercise of any Security
being offered or issued will be duly authorized, created and, if appropriate, reserved for issuance upon such conversion, exchange or
exercise.
Our opinions expressed in paragraphs 3, 4 and 5 below
are subject to the qualifications that we express no opinion as to the applicability of, compliance with or effect of: (i) any bankruptcy,
insolvency, reorganization, preference, fraudulent conveyance, fraudulent transfer, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors generally (including, without limitation, Sections 547 and 548 of the United States Bankruptcy Code
and Article 10 of the New York Debtor and Creditor Law); (ii) general principles of equity, whether considered in a proceeding in equity
or at law (including the possible unavailability of specific performance or injunctive relief), concepts of materiality, reasonableness,
good faith and fair dealing, and the discretion of the court before which a proceeding is brought; or (iii) public policy considerations
that may limit the rights of parties to obtain certain remedies.
We express no opinion as to (i) any provision providing
for the indemnification of or contribution to a party with respect to a liability where such indemnification or contribution is contrary
to public policy, (ii) consents to, or restrictions upon, governing law, jurisdiction, venue, arbitration, remedies or judicial relief,
(iii) the securities or “Blue Sky” laws of any state to the offer or sale of the Securities and (iv) the antifraud provisions
of the securities or other laws of any jurisdiction.
September 6, 2023
Page 3
Subject to the foregoing and the other matters set forth
herein, it is our opinion that, as of the date hereof:
1.
With respect to the offer and sale of Common Stock, other than the Selling Stockholder Shares, when
an issuance of Common Stock has been duly authorized by all necessary corporate action of the Company, upon issuance, delivery and payment
therefor in an amount not less than the par value thereof in the manner contemplated by the applicable Prospectus and by such corporate
action, and in total amounts and numbers of shares that do not exceed the respective total amounts and numbers of shares (a) available
under the Company’s certificate of incorporation (as amended, the “Certificate of Incorporation”) and (b) authorized
by the board of directors of the Company in connection with the offering contemplated by the applicable Prospectus, such shares of Common
Stock will be validly issued, fully paid and nonassessable.
2.
With respect to shares of any series of Preferred Stock, when a series of Preferred Stock has been
duly established in accordance with the terms of the certificate of incorporation and authorized by all necessary corporate action of
the Company, upon issuance, delivery and payment therefor in an amount not less than the par value thereof in the manner contemplated
by the applicable Prospectus and by such corporate action, and in total amounts and numbers of shares that do not exceed the respective
total amounts and numbers of shares (a) available under the Certificate of Incorporation and (b) authorized by the board of directors
of the Company in connection with the offering contemplated by the applicable Prospectus, such shares of such series of Preferred Stock
will be validly issued, fully paid and nonassessable.
3.
With respect to Debt Securities, when (a) the trustee has duly executed and delivered the applicable
Indenture, (b) the applicable Indenture has been duly authorized by all necessary corporate action of the Company (including, without
limitation, the adoption by the board of directors of the Company of a resolution in form and content as required by applicable law duly
authorizing the execution and delivery of such Indenture) and duly executed and delivered by the Company, (c) the applicable Indenture
has been duly qualified under the Trust Indenture Act of 1939, as amended, (d) the specific terms of a particular issuance of Debt Securities
have been duly established in accordance with such Indenture, if any, and all applicable law and authorized by all necessary corporate
action of the Company (including, without limitation, the adoption by the board of directors of the Company of a resolution in form and
content as required by applicable law duly authorizing the issuance and delivery of the Debt Securities), and (e) the Debt Securities
have been duly executed, issued and delivered against payment therefor in accordance with the provisions of the applicable Indenture and
the applicable definitive purchase, underwriting, or similar agreement upon payment of the consideration therefor provided for therein,
such Debt Securities will be legally valid and binding obligations of the Company, enforceable against the Company in accordance with
their terms.
September 6, 2023
Page 4
4.
With respect to the Warrants, when (a) a warrant agreement, if any, has been duly authorized by all
necessary corporate action of the Company (including, without limitation, the adoption by the board of directors of the Company of a resolution
in form and content as required by applicable law duly authorizing the execution and delivery of such warrant agreement) and duly executed
and delivered by the Company, (b) the specific terms of a particular issuance of Warrants have been duly established in accordance with
such warrant agreement, if any, and all applicable law and authorized by all necessary corporate action of the Company (including, without
limitation, the adoption by the board of directors of the Company of a resolution in form and content as required by applicable law duly
authorizing the issuance and delivery of the Warrants), and (c) the Warrants have been duly executed, issued and delivered against payment
therefor in accordance with such warrant agreement, if any, the applicable Purchase Agreement and all applicable law (and assuming the
satisfaction of the conditions described in the applicable numbered paragraphs of this opinion letter with respect to our opinion regarding
any Securities issuable upon exercise of the Warrants), such Warrants will be legally valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms.
5.
When (a) a depositary agreement has been duly authorized by all necessary corporate action of the
Company (including, without limitation, the adoption by the board of directors of the Company of a resolution duly authorizing the execution
and delivery of such depositary agreement and the authorization of the Preferred Stock underlying the Depositary Shares) and duly executed
and delivered by the Company, (b) the specific terms of a particular issuance of the related Depositary Shares have been duly established
in accordance with such depositary agreement and all applicable law and authorized by all necessary corporate action of the Company (including,
without limitation, the adoption by the board of directors of the Company of a resolution in form and content as required by applicable
law duly authorizing the issuance and delivery of the Depositary Shares and the Preferred Stock underlying the Depositary Shares), (c)
the Preferred Stock underlying such Depositary Shares will have been duly issued and deposited with the depositary; and (d) such Depositary
Shares have been duly executed, issued and delivered against payment therefor in accordance with such depositary agreement, the applicable
Purchase Agreement and all applicable law (and assuming the satisfaction of the conditions described in the applicable numbered paragraphs
of this opinion letter with respect to our opinion regarding the Securities underlying the Depositary Shares), such Depositary Shares
will be validly issued and entitle their holders to the rights specified in the deposit agreement and the Depositary Shares.
6.
The Selling Stockholder Shares have been duly authorized and validly issued and are fully paid and
nonassessable.
This opinion is opining upon and is limited
to the current federal laws of the United States, the state laws of the State of New York, and the Delaware General Corporation Law as
such laws presently exist and to facts as they presently exist. We express no opinion with respect to the effect or applicability of the
laws of any other jurisdiction.
This opinion is being delivered solely for
the benefit of the Company and such other persons as are entitled to rely upon it pursuant to applicable provisions of the Act. This opinion
may not be used, quoted, relied upon or referred to for any other purpose nor may this opinion be used, quoted, relied upon or referred
to by any other person, for any purpose, without our prior written consent.
September 6, 2023
Page 5
We hereby consent to the filing of this opinion
as an exhibit to the Registration Statement and to the use of our name under the caption “Legal Matters” in the Registration
Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section
7 of the Act or the rules and regulations of the Commission thereunder.
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Yours very truly, |
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/s/ Greenberg Traurig, P.A. |
EXHIBIT 23.1
Consent of Independent
Registered Public Accounting Firm
We consent to the incorporation
by reference in this Registration Statement on Form S-3 and related Prospectus of Green Brick Partners, Inc. of our reports dated February
27, 2023 relating to the consolidated financial statements and the effectiveness of internal control over financial reporting of Green
Brick Partners, Inc. appearing in the Annual Report on Form 10-K of Green Brick Partners, Inc. as of and for the year ended December 31,
2022. We also consent to the reference to our firm under the heading “Experts” in such Prospectus.
/s/ RSM US LLP
Dallas, Texas
September 6, 2023
Calculation of Filing Fee Tables
Form S-3
(Form Type)
Green Brick Partners, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered and Carry Forward
Securities
| |
Security
Type |
Security Class Title |
Fee Calculation
Or Carry
Forward Rule |
Amount
Registered |
Proposed
Maximum
Offering
Price Per
Unit |
Maximum
Aggregate
Offering
Price |
Fee Rate |
Amount of
Registration
Fee |
| Newly Registered Securities |
| Fees to Be Paid |
Equity |
Common Stock, par value $0.01 per share |
Rule 456(b) and Rule 457(r) |
(1) |
(1) |
(1) |
(2) |
(2) |
| |
Equity |
Preferred Stock, par value $0.01 per share |
Rule 456(b) and Rule 457(r) |
(1) |
(1) |
(1) |
(2) |
(2) |
| |
Equity |
Depositary Shares |
Rule 456(b) and Rule 457(r) |
(1) |
(1) |
(1) |
(2) |
(2) |
| |
Debt |
Debt Securities |
Rule 456(b) and Rule 457(r) |
(1) |
(1) |
(1) |
(2) |
(2) |
| |
Other |
Warrants |
Rule 456(b) and Rule 457(r) |
(1) |
(1) |
(1) |
(2) |
(2) |
| Fees Previously Paid |
— |
— |
— |
— |
— |
— |
— |
— |
| Carry Forward Securities |
| Carry Forward Securities |
— |
— |
— |
— |
— |
— |
— |
— |
| Total Offering Amounts |
— |
|
— |
— |
| Total Fees Previously Paid |
|
|
— |
— |
| Total Fee Offsets |
|
|
— |
$92,408.43(4) |
| Net Fee Due |
|
|
— |
— |
Table 2: Fee Offset Claims and Sources
| |
Registrant
or Filer
Name |
Form
or
Filing
Type |
File
Number |
Initial
Filing
Date |
Filing
Date |
Fee Offset
Claimed |
Security
Type
Associated
with Fee
Offset
Claimed |
Security Title
Associated
with Fee
Offset
Claimed |
Unsold
Securities
Associated
with Fee
Offset
Claimed |
Unsold
Aggregate
Offering
Amount
Associated with
Fee Offset
Claimed |
Fee Paid
with Fee
Offset
Source |
| Rule 457(p) |
| Fee Offset Claims |
Green Brick Partners, Inc. |
S-3 |
333-250977 |
November 25, 2020 |
|
$49,095.00(3) |
Unallocated (Universal) Shelf |
(3) |
(3) |
$450,000,000.00 |
|
| Fee Offset Claims |
Green Brick Partners, Inc. |
S-3 |
333-250977 |
November 25, 2020 |
|
$43,313.43 (3) |
Equity |
Common Stock, par value $0.01 per share |
17,268,668 |
$397,006,677.32 |
|
| Fee Offset Sources |
Green Brick Partners, Inc. |
S-3 |
333-250977 |
|
November 25, 2020 |
|
|
|
|
|
$76,075.93(3) |
| Fee Offset Sources |
Green Brick Partners, Inc. |
S-3 |
333-223610 |
|
March 13, 2018 |
|
|
|
|
|
$16,332.50(3) |
| (1) | An indeterminate amount of securities of each identified class is being registered as may from time to
time be offered hereunder at indeterminate prices, along with an indeterminate number of securities that may be issues upon exercise,
settlement, exchange or conversion of the securities offered or sold hereunder. Pursuant to Rule 416 under the Securities Act of 1933,
as amended (the “Securities Act”), this registration statement also covers any additional securities that may be offered or
issued in connection with any stock split, stock dividend, or pursuant to anti-dilution provisions of any of the securities. Separate
consideration may or may not be received for securities that are issuable upon conversion, exercise, or exchange of other securities. |
| (2) | In accordance with Rule 456(b) and 457(r) under the Securities Act, Green Brick Partners, Inc. (the “Registrant”)
is deferring payment of all registration fees and will pay the registration fees subsequently in advance or on a “pay-as-you-go”
basis, except for $92,408.43 that the Registrant is entitled to offset pursuant to Rule 457(p) for fees paid with respect to unsold securities
as described below. |
| (3) | The Registrant previously registered common stock issuable by the Registrant with an aggregate maximum offering price of $175,000,000
pursuant to a shelf registration statement on Form S-3, as amended (File No. 333-223610) filed with the Securities and Exchange Commission
on March 13, 2018 (the “2018 Registration Statement”). In connection with the 2018 Registration Statement, the Registrant
paid a registration fee in the amount of $21,787.50 and no securities were sold by the Registrant thereunder. Pursuant to Rule 457(p)
under the Securities Act, the registration fee was consequently transferred in full to the Registration Statement on Form S-3, as amended
(File No. 333-250977), which was filed on November 25, 2020 (the “2020 Registration Statement”) which registered (i) an indeterminate
amount of securities issuable by the Registrant having an aggregate offering price of up to $500,000,000 (the “Primary Securities”)
and (ii) 24,118,668 shares of common stock of the Registrant (the “Secondary Shares”) for the resale by certain selling stockholders. |
| | In connection with the 2020 Registration Statement, the Registrant (i) offset the registration fee of $54,550.00 due in connection
with the Primary Securities by $21,787.50 and paid the remaining balance of $32,762.50 and (ii) paid a registration fee of $60,494.66
due in connection with the Secondary Shares. |
| | Under the 2020 Registration Statement, the Registrant only sold $50,000,000 of the Primary Securities and the filing fee attributable
to such sale was $5,445.00 (calculated at the fee rate in effect on the filing date of the 2020 Registration Statement, or 0.00010910),
leaving $49,095.00 in previously paid and unused fees available as an offset against the registration fee due from time to time under
this registration statement in connection with any future issuance by the Registrant of any of the securities of each identified class
registered hereunder. |
| | Under the 2020 Registration Statement, there were 6,850,000 of the Secondary Shares sold by certain of the selling stockholders named
therein. The filing fee attributable to such sales of Secondary Shares was $17,181.23 (calculated at the fee rate in effect on the filing
date of the 2020 Registration Statement, or 0.00010910), leaving $43,313.43 in previously paid and unused fees available as an offset
against the registration fee due from time to time under this registration statement for the resale of the Registrant’s common stock
by certain selling stockholders. |
| (4) | Pursuant to Rule 457(p) under the Securities Act, the Registrant is offsetting the registration fees due from time to time under this
registration statement by $92,408.43, which represents a portion of the registration fees previously paid and unused with respect to the
2018 Registration Statement and the 2020 Registration Statement, as described above. Concurrently with the filing of this registration
statement, any offering of unsold Primary Securities and Secondary Shares pursuant to the 2020 Registration Statement is hereby terminated
and the full unused amount of the registration fees transferred to and concurrently paid on the 2020 Registration Statement shall be applied
to offset any registration fees due from time to time for this registration statement. |
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