HTML Validator problems

Hi Where you using this code?
You may put the template tag inside a code wrapper ?

Hello, this is the FEATURED CONTENT PHP… Do I using it right?

<?php
/**
 * @package Expound
 */
$featured_posts = expound_get_featured_posts();
?>

<?php if ( $featured_posts->have_posts() ) : $featured_posts->the_post(); ?>
<div class="featured-content">

	<article id="post-<?php the_ID(); ?>" <?php post_class(); ?>>

		<?php if ( has_post_thumbnail() ) : ?>
		<div class="entry-thumbnail">
			<a href="<?php the_permalink(); ?>"><?php the_post_thumbnail( 'expound-featured' ); ?></a>
		</div>
		<?php endif; ?>

		<header class="entry-header">

		<code><?php if (function_exists('the_subtitle')){ the_subtitle(); }?></code><h1 class="entry-title"><a href="<?php the_permalink(); ?>" title="<?php echo esc_attr( sprintf( __( 'Permalink to %s', 'expound' ), the_title_attribute( 'echo=0' ) ) ); ?>" rel="bookmark"><?php the_title(); ?></a></h1>
		</header><!-- .entry-header -->

		<div class="entry-summary">
			<?php the_excerpt(); ?>
			<p><a class="button-primary" href="<?php the_permalink(); ?>"><?php _e( 'Continue reading &rarr;', 'expound' ); ?></a></p>
		</div><!-- .entry-summary -->

		<div class="clear"></div>

	</article>

</div><!-- .featured-content -->

<?php if ( $featured_posts->have_posts() ) : // more than one? ?>
<div class="featured-content-secondary">
	<?php while ( $featured_posts->have_posts() ) : $featured_posts->the_post(); ?>

		<article id="post-<?php the_ID(); ?>" <?php post_class(); ?>>

			<?php if ( has_post_thumbnail() ) : ?>
			<div class="entry-thumbnail">
				<a href="<?php the_permalink(); ?>"><?php the_post_thumbnail(); ?></a>

				<?php if ( get_the_category() ) : ?>
				<span class="entry-thumbnail-category"><?php the_category( ' / ' ); ?></span>
				<?php endif; // get_the_category() ?>
			</div>
			<?php endif; ?>

			<header class="entry-header">
					<span class="sub"><?php if (function_exists('the_subtitle')){ the_subtitle(); }?></span>
				<h1 class="entry-title"><a href="<?php the_permalink(); ?>" title="<?php echo esc_attr( sprintf( __( 'Permalink to %s', 'expound' ), the_title_attribute( 'echo=0' ) ) ); ?>" rel="bookmark"><?php the_title(); ?></a></h1>
			</header><!-- .entry-header -->

			<div class="entry-summary">
				<?php the_excerpt(); ?>
			</div><!-- .entry-summary -->
		</article>

		<?php if ( $featured_posts->current_post % 4 == 0 ) : ?>
			<div class="clear"></div>
		<?php endif; // % 4 ?>

	<?php endwhile; ?>
</div><!-- .featured-content-secondary -->
<?php endif; // have_posts() inner ?>
<?php endif; // have_posts() ?>

Why you use code tag?

Well… honestly, not sure.
How do I supose to do it?

??