Document:

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                                                                    EXHIBIT 4.26

                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                             Countrywide Capital [-]

                                 Dated as of [-]

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                                Table of Contents

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                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1   Definitions and Interpretation.........................................1

                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1   Trust Indenture Act; Application.......................................5
SECTION 2.2   Lists of Holders of Securities.........................................5
SECTION 2.3   Reports by the Preferred Guarantee Trustee.............................5
SECTION 2.4   Periodic Reports to Preferred Guarantee Trustee........................5
SECTION 2.5   Evidence of Compliance with Conditions Precedent.......................6
SECTION 2.6   Events of Default; Waiver..............................................6
SECTION 2.7   Event of Default; Notice...............................................6
SECTION 2.8   Conflicting Interests..................................................6

                                   ARTICLE III
            POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE

SECTION 3.1   Powers and Duties of the Preferred Guarantee Trustee...................7
SECTION 3.2   Certain Rights of Preferred Guarantee Trustee..........................8
SECTION 3.3   Not Responsible for Recitals or Issuance of Preferred
       Securities Guarantee.........................................................10

                                   ARTICLE IV
                           PREFERRED GUARANTEE TRUSTEE

SECTION 4.1   Preferred Guarantee Trustee; Eligibility..............................11
SECTION 4.2   Appointment, Removal and Resignation of Preferred Guarantee
       Trustee......................................................................11

                                    ARTICLE V
                                    GUARANTEE

SECTION 5.1   Guarantee.............................................................12
SECTION 5.2   Waiver of Notice and Demand...........................................12
SECTION 5.3   Obligations Not Affected..............................................12
SECTION 5.4   Enforcement of Guarantee; Rights of Holders...........................13
SECTION 5.5   Guarantee of Payment..................................................14
SECTION 5.6   Subrogation...........................................................14
SECTION 5.7   Independent Obligations...............................................14
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                                   ARTICLE VI
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1   Limitation of Transactions............................................14
SECTION 6.2   Ranking...............................................................15

                                   ARTICLE VII
                                   TERMINATION

SECTION 7.1   Termination...........................................................15

                                  ARTICLE VIII
                                 INDEMNIFICATION

SECTION 8.1   Exculpation...........................................................16
SECTION 8.2   Indemnification.......................................................16

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.1   Successors and Assigns................................................17
SECTION 9.2   Amendments............................................................17
SECTION 9.3   Notices...............................................................17
SECTION 9.4   Benefit...............................................................18
SECTION 9.5   Governing Law.........................................................18
SECTION 9.6   Genders...............................................................18
SECTION 9.7   Counterparts..........................................................18
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                    PREFERRED SECURITIES GUARANTEE AGREEMENT

        This PREFERRED SECURITIES GUARANTEE AGREEMENT (the "Preferred Securities
Guarantee"), dated as of [-], is executed and delivered by Countrywide Credit
Industries, Inc., a Delaware corporation (the "Guarantor"), and The Bank of New
York, a New York banking corporation, as trustee (the "Preferred Guarantee
Trustee"), for the benefit of the Holders (as defined herein) of Countrywide
Capital [-], a Delaware statutory business trust (the "Issuer").

        WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of [-], among the trustees of the Issuer named therein,
the Guarantor, as sponsor, the Debenture [Issuer OR Guarantor] and the holders
from time to time of undivided beneficial interests in the assets of the Issuer,
the Issuer is issuing on the Closing Date up to [-] preferred securities, having
an aggregate liquidation amount of up to $[-] designated as the [-]% Preferred
Securities (the "Preferred Securities"); and

        WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Preferred Securities Guarantee, to pay to the
Holders the Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein.

        WHEREAS, the Guarantor is also executing and delivering a guarantee
agreement (the "Common Securities Guarantee") in substantially identical terms
to this Preferred Securities Guarantee for the benefit of the holders of the
Common Securities (as defined herein), except that if an Event of Default (as
defined in the Indenture), has occurred and is continuing, the rights of holders
of the Common Securities to receive Guarantee Payments under the Common
Securities Guarantee are subordinated to the rights of Holders to receive
Guarantee Payments under this Preferred Securities Guarantee.

        NOW, THEREFORE, in consideration of the purchase by each Holder, which
purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor
executes and delivers this Preferred Securities Guarantee for the benefit of the
Holders.

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

        SECTION 1.1 Definitions and Interpretation

        In this Preferred Securities Guarantee, unless the context otherwise
requires:

        (a) capitalized terms used in this Preferred Securities Guarantee but
not defined in the preamble above have the respective meanings assigned to them
in this Section 1.1;

        (b) any capitalized term not defined in either the preamble above or
this Section 1.1 shall have the respective meaning assigned to it in the
Declaration in effect as of the date hereof;

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        (c) a term defined anywhere in this Preferred Securities Guarantee has
the same meaning throughout;

        (d) all references to "the Preferred Securities Guarantee" or "this
Preferred Securities Guarantee" are to this Preferred Securities Guarantee as
modified, supplemented or amended from time to time;

        (e) all references in this Preferred Securities Guarantee to Articles
and Sections are to Articles and Sections of this Preferred Securities
Guarantee, unless otherwise specified;

        (f) a term defined in the Trust Indenture Act of 1939, as amended has
the same meaning when used in this Preferred Securities Guarantee, unless
otherwise defined in this Preferred Securities Guarantee or unless the context
otherwise requires; and

        (g) a reference to the singular includes the plural and vice versa.

        "Affiliate" has the same meaning as given to that term in Rule 405 of
the Securities Act of 1933, as amended, or any successor rule thereunder.

        "Authorized Officer" of a Person means any executive officer, president,
vice-president, assistant vice-president, treasurer, assistant treasurer,
secretary, assistant secretary or other officer of such Person generally
authorized to bind such Person.

        "Business Day" has the meaning set forth in the Indenture.

        "Closing Date" has the meaning set forth in the Underwriting Agreement.

        "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Issuer.

        "Corporate Trust Office" means the office of the Preferred Guarantee
Trustee at which the corporate trust business of the Preferred Guarantee Trustee
shall, at any particular time, be principally administered, which office at the
date of execution of this Agreement is located at 101 Barclay Street, New York,
New York 10286.

        "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

        "Debenture Guarantor" has the meaning set forth in the Declaration.

        "Debenture Issuer" has the meaning set forth in the Declaration.

        "Debentures" means the [-]% Junior Subordinated Deferrable Interest
Debentures due [-] issued by the Debenture Issuer to the Issuer.

        "Event of Default" means a default by the Guarantor on any of its
payment or other obligations under this Preferred Securities Guarantee.

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        "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent not
paid or made by the Issuer: (i) any accrued and unpaid Distributions (as defined
in the Declaration) that are required to be paid on such Preferred Securities,
to the extent the Issuer shall have funds available therefor, (ii) the
redemption price, including all accrued and unpaid Distributions to the date of
redemption (the "Redemption Price"), to the extent the Issuer has funds
available therefor, with respect to any Preferred Securities called for
redemption by the Issuer, and (iii) upon a voluntary or involuntary dissolution,
winding-up or termination of the Issuer (other than in connection with the
distribution of Debentures to the Holders or the redemption of all of the
Preferred Securities as provided in the Declaration), the lesser of (a) the
aggregate of the liquidation amount and all accrued and unpaid Distributions on
the Preferred Securities to the date of payment, to the extent the Issuer shall
have funds available therefor, and (b) the amount of assets of the Issuer
remaining available for distribution to Holders in liquidation of the Issuer (in
either case, the "Liquidation Distribution"). If an event of default under the
Indenture has occurred and is continuing, the rights of holders of the Common
Securities to receive payments under the Common Securities Guarantee Agreement
are subordinated to the rights of Holders to receive Guarantee Payments.

        "Holder" means any holder, as registered on the books and records of the
Issuer, of any Preferred Securities; provided, however, that, in determining
whether the holders of the requisite percentage of Preferred Securities have
given any request, notice, consent or waiver hereunder, "Holder" shall not
include the Guarantor or any Affiliate of the Guarantor, but only to the extent
that the Issuer has actual knowledge of such ownership.

        "Indemnified Person" means the Preferred Guarantee Trustee, any
Affiliate of the Preferred Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Preferred Guarantee Trustee.

        "Indenture" means the Indenture dated as of [-], among the Debenture
Issuer, the Debenture Guarantor and The Bank of New York, as trustee, and any
indenture supplemental thereto pursuant to which certain subordinated debt
securities of the Debenture Issuer are to be issued to the Institutional Trustee
of the Issuer.

        "Majority in liquidation amount of the Securities" means, except as
provided by the Trust Indenture Act, a vote by Holder(s), voting separately as a
class, of more than 50% of the liquidation amount (including the stated amount
that would be paid on redemption, liquidation or otherwise, plus accrued and
unpaid Distributions to the date upon which the voting percentages are
determined) of all outstanding Preferred Securities.

        "Officers' Certificate" means, with respect to any Person, a certificate
signed by two Authorized Officers of such Person. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Preferred Securities Guarantee shall include:

        (a)     a statement that each Authorized Officer signing the Officers'
                Certificate has read the covenant or condition and the
                definition relating thereto;

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        (b)     a brief statement of the nature and scope of the examination or
                investigation undertaken by each Authorized Officer in rendering
                the Officers' Certificate;

        (c)     a statement that each such Authorized Officer has made such
                examination or investigation as, in such Authorized Officer's
                opinion, is necessary to enable such Authorized Officer 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, in the opinion of each such
                Authorized Officer, such condition or covenant has been complied
                with.

        "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

        "Preferred Guarantee Trustee" means The Bank of New York, a New York
banking corporation, until a Successor Preferred Guarantee Trustee has been
appointed and has accepted such appointment pursuant to the terms of this
Preferred Securities Guarantee and thereafter means each such Successor
Preferred Guarantee Trustee.

        "Resignation Request" has the meaning set forth in Section 4.2(c).

        "Responsible Officer" means, with respect to the Preferred Guarantee
Trustee, any officer within the Corporate Trust Office of the Preferred
Guarantee Trustee with direct responsibility for the administration of this
Preferred Securities Guarantee and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of that officer's knowledge of and familiarity with the particular
subject.

        "Successor Preferred Guarantee Trustee" means a successor Preferred
Guarantee Trustee possessing the qualifications to act as Preferred Guarantee
Trustee under Section 4.1.

        "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended.

        "Underwriting Agreement" means the Underwriting Agreement for the offer
and sale of Preferred Securities substantially in the form of Exhibit C to the
Declaration.

                                   ARTICLE II

                               TRUST INDENTURE ACT

        SECTION 2.1   Trust Indenture Act; Application

        (a) This Preferred Securities Guarantee is subject to the provisions of
the Trust Indenture Act that are required to be part of this Preferred
Securities Guarantee and shall, to the extent applicable, be governed by such
provisions.

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        (b) If and to the extent that any provision of this Preferred Securities
Guarantee limits, qualifies or conflicts with the duties imposed by Sections 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

        (c) The application of the Trust Indenture Act to this Preferred
Securities Guarantee shall not affect the nature of the Preferred Securities as
equity securities representing undivided beneficial interests in the assets of
the Issuer.

        SECTION 2.2 Lists of Holders of Securities

        (a) The Guarantor shall provide the Preferred Guarantee Trustee with a
list, in such form as the Preferred Guarantee Trustee may reasonably require, of
the names and addresses of the Holders ("List of Holders") as of such date, (i)
within one Business Day after [-] and [-] of each year, and (ii) at any other
time within 30 days of receipt by the Guarantor of a written request for a List
of Holders. Such list shall be as of a date no more than 14 days before such
List of Holders is given to the Preferred Guarantee Trustee. The Guarantor shall
not be obligated to provide such List of Holders if at any time the List of
Holders does not differ from the most recent List of Holders given to the
Preferred Guarantee Trustee by the Guarantor. The Preferred Guarantee Trustee
may destroy any List of Holders previously given to it on receipt of a new List
of Holders.

        (b) The Preferred Guarantee Trustee shall comply with its obligations
under Sections 311(a), 311(b) and Section 312(b) of the Trust Indenture Act.

        SECTION 2.3 Reports by the Preferred Guarantee Trustee

        (a) Within 60 days after May 15 of each year, the Preferred Guarantee
Trustee shall provide to the Holders such reports as are required by Section 313
of the Trust Indenture Act, if any, in the form and in the manner provided by
Section 313 of the Trust Indenture Act. The Preferred Guarantee Trustee shall
also comply with the requirements of Section 313(d) of the Trust Indenture Act.

        SECTION 2.4 Periodic Reports to Preferred Guarantee Trustee

        (a) The Guarantor shall provide to the Preferred Guarantee Trustee such
documents, reports and information as required by Section 314 (if any) and the
compliance certificate required by Section 314 of the Trust Indenture Act in the
form, in the manner and at the times required by Section 314 of the Trust
Indenture Act.

        SECTION 2.5 Evidence of Compliance with Conditions Precedent

        The Guarantor shall provide to the Preferred Guarantee Trustee such
evidence of compliance with any conditions precedent, if any, provided for in
this Preferred Securities Guarantee that relate to any of the matters set forth
in Section 314(c) of the Trust Indenture Act. Any certificate or opinion
required to be given by an officer pursuant to Section 314(c)(1) may be given in
the form of an Officers' Certificate.

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        SECTION 2.6 Events of Default; Waiver

        (a) The Holders of a Majority in liquidation amount of Preferred
Securities may, by vote, on behalf of all of the Holders waive any past Event of
Default and its consequences. Upon such waiver, any such Event of Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured, for every purpose of this Preferred Securities Guarantee, but
no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

        (b) Notwithstanding the provisions of subsection (a) of this Section
2.6, the right of any Holder of Preferred Securities to receive payment of the
Guarantee Payments in accordance with this Preferred Securities Guarantee, or to
institute suit for the enforcement of any such payment, shall not be impaired
without the consent of each such Holder.

        SECTION 2.7 Event of Default; Notice

        (a) The Preferred Guarantee Trustee shall, within 90 days after the
occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders, notices of all Events of Default actually known to a
Responsible Officer of the Preferred Guarantee Trustee, unless such defaults
have been cured before the giving of such notice, provided, that, the Preferred
Guarantee Trustee shall be protected in withholding such notice if and so long
as a Responsible Officer in good faith determines that the withholding of such
notice is in the interests of the Holders of the Preferred Securities.

        (b) The Preferred Guarantee Trustee shall not be deemed to have actual
knowledge of any Event of Default unless the Preferred Guarantee Trustee shall
have received written notice, or of which a Responsible Officer charged with the
administration of this Preferred Securities Guarantee shall have obtained actual
knowledge.

        SECTION 2.8 Conflicting Interests

        The Declaration shall be deemed to be specifically described in this
Preferred Securities Guarantee for the purposes of clause (i) of the first
proviso contained in Section 310(b) of the Trust Indenture Act.

                                  ARTICLE III

                     POWERS, DUTIES AND RIGHTS OF PREFERRED
                                GUARANTEE TRUSTEE

        SECTION 3.1 Powers and Duties of the Preferred Guarantee Trustee

        (a) This Preferred Securities Guarantee shall be held by the Preferred
Guarantee Trustee in trust for the benefit of the Holders, and the Preferred
Guarantee Trustee shall not transfer its right, title and interest in this
Preferred Securities Guarantee to any Person except a Holder exercising his or
her rights pursuant to Section 5.4(d) or to a Successor Preferred Guarantee
Trustee on acceptance by such Successor Preferred Guarantee Trustee of its
appointment to act as Successor Preferred Guarantee Trustee. The right, title
and interest of the

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Preferred Guarantee Trustee shall automatically vest in any Successor Preferred
Guarantee Trustee, and such vesting and cessation of title shall be effective
whether or not conveyancing documents have been executed and delivered pursuant
to the appointment of such Successor Preferred Guarantee Trustee.

        (b) If an Event of Default actually known to a Responsible Officer has
occurred and is continuing, the Preferred Guarantee Trustee shall enforce this
Preferred Securities Guarantee for the benefit of the Holders.

        (c) This Preferred Securities Guarantee and all moneys received by the
Preferred Guarantee Trustee hereunder in respect of the Guarantee Payments will
not be subject to any right, charge, security interest, lien or claim of any
kind in favor of, or for the benefit of, the Preferred Guarantee Trustee or its
agents or their creditors.

        (d) The Preferred Guarantee Trustee, before the occurrence of any Event
of Default and after the curing of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Preferred Securities Guarantee, and no implied covenants or obligations
shall be read into this Preferred Securities Guarantee against the Preferred
Guarantee Trustee. In case an Event of Default has occurred (that has not been
cured or waived pursuant to Section 2.6) and is actually known to a Responsible
Officer of the Preferred Guarantee Trustee, the Preferred Guarantee Trustee
shall exercise such of the rights and powers vested in it by this Preferred
Securities Guarantee, and use the same degree of care and skill in its exercise
thereof, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

        (e) No provision of this Preferred Securities Guarantee shall be
construed to relieve the Preferred Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                (i) prior to the occurrence of any Event of Default and after
        the curing or waiving of all such Events of Default that may have
        occurred:

                        (A) the duties and obligations of the Preferred
                Guarantee Trustee shall be determined solely by the express
                provisions of this Preferred Securities Guarantee, and the
                Preferred Guarantee Trustee shall not be liable except for the
                performance of such duties and obligations as are specifically
                set forth in this Preferred Securities Guarantee, and no implied
                covenants or obligations shall be read into this Preferred
                Securities Guarantee against the Preferred Guarantee Trustee;
                and

                        (B) in the absence of bad faith on the part of the
                Preferred Guarantee Trustee, the Preferred Guarantee Trustee may
                conclusively rely, as to the truth of the statements and the
                correctness of the opinions expressed therein, upon any
                certificates or opinions furnished to the Preferred Guarantee
                Trustee and conforming to the requirements of this Preferred
                Securities Guarantee; but in the case of any such certificates
                or opinions that by any provision hereof are specifically
                required to be furnished to the Preferred Guarantee Trustee, the

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                Preferred Guarantee Trustee shall be under a duty to examine the
                same to determine whether or not they conform to the
                requirements of this Preferred Securities Guarantee;

                (ii) the Preferred Guarantee Trustee shall not be liable for any
        error of judgment made in good faith by a Responsible Officer, unless it
        shall be proved that the Preferred Guarantee Trustee was negligent in
        ascertaining the pertinent facts upon which such judgment was made;

                (iii) the Preferred Guarantee 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 of not less than a
        Majority in liquidation amount of the Preferred Securities relating to
        the time, method and place of conducting any proceeding for any remedy
        available to the Preferred Guarantee Trustee, or exercising any trust or
        power conferred upon the Preferred Guarantee Trustee under this
        Preferred Securities Guarantee; and

                (iv) no provision of this Preferred Securities Guarantee shall
        require the Preferred Guarantee 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
        the Preferred Guarantee Trustee shall have reasonable grounds for
        believing that the repayment of such funds or liability is not
        reasonably assured to it under the terms of this Preferred Securities
        Guarantee or indemnity, reasonably satisfactory to the Preferred
        Guarantee Trustee, against such risk or liability is not reasonably
        assured to it.

        SECTION 3.2 Certain Rights of Preferred Guarantee Trustee

        (a) Subject to the provisions of Section 3.1:

                (i) The Preferred Guarantee Trustee may conclusively rely, and
        shall be fully protected in acting or refraining from acting upon, any
        resolution, certificate, statement, instrument, opinion, report, notice,
        request, direction, consent, order, bond, debenture, note, other
        evidence of indebtedness or other paper or document believed by it in
        good faith to be genuine and to have been signed, sent or presented by
        the proper party or parties.

                (ii) Any direction or act of the Guarantor contemplated by this
        Preferred Securities Guarantee shall be sufficiently evidenced by an
        Officers' Certificate.

                (iii) Whenever, in the administration of this Preferred
        Securities Guarantee, the Preferred Guarantee Trustee shall deem it
        desirable that a matter be proved or established before taking,
        suffering or omitting any action hereunder, the Preferred Guarantee
        Trustee (unless other evidence is herein specifically prescribed) may,
        in the absence of bad faith on its part, request and conclusively rely
        upon an Officers' Certificate which, upon receipt of such request, shall
        be promptly delivered by the Guarantor.

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                (iv) The Preferred Guarantee Trustee shall have no duty to see
        to any recording, filing or registration of any instrument (or any
        rerecording, refiling or registration thereof).

                (v) The Preferred Guarantee Trustee may consult with counsel of
        its selection, and the written advice or opinion of such counsel with
        respect to legal matters shall be full and complete authorization and
        protection in respect of any action taken, suffered or omitted by it
        hereunder in good faith and in accordance with such advice or opinion.
        Such counsel may be counsel to the Guarantor or any of its Affiliates
        and may include any of its employees. The Preferred Guarantee Trustee
        shall have the right at any time to seek instructions concerning the
        administration of this Preferred Securities Guarantee from any court of
        competent jurisdiction.

                (vi) The Preferred Guarantee Trustee shall be under no
        obligation to exercise any of the rights or powers vested in it by this
        Preferred Securities Guarantee at the request or direction of any
        Holder, unless such Holder shall have provided to the Preferred
        Guarantee Trustee such security and indemnity, reasonably satisfactory
        to the Preferred Guarantee Trustee, against the costs, expenses
        (including attorneys' fees and expenses and the expenses of the
        Preferred Guarantee Trustee's agents, nominees or custodians) and
        liabilities that might be incurred by it in complying with such request
        or direction, including such reasonable advances as may be requested by
        the Preferred Guarantee Trustee; provided that, nothing contained in
        this Section 3.2(a)(vi) shall relieve the Preferred Guarantee Trustee,
        upon the occurrence of an Event of Default which has not been cured or
        waived, of its obligation to exercise the rights and powers vested in it
        by this Preferred Securities Guarantee and to use the same degree of
        care and skill in this exercise, as a prudent person would exercise or
        use under the circumstances in the conduct of his or her own affairs.

                (vii) The Preferred Guarantee 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,
        direction, consent, order, bond, debenture, note, other evidence of
        indebtedness or other paper or document, but the Preferred Guarantee
        Trustee, in its discretion, may make such further inquiry or
        investigation into such facts or matters as it may see fit at the sole
        cost of the Guarantor and shall incur no liability or additional
        liability of any kind by reason of such inquiry or investigation.

                (viii) The Preferred Guarantee Trustee may execute any of the
        trusts or powers hereunder or perform any duties hereunder either
        directly or through agents, nominees, custodians or attorneys, and the
        Preferred Guarantee Trustee shall not be responsible for any misconduct
        or negligence on the part of any agent or attorney appointed with due
        care by it hereunder.

                (ix) Any action taken by the Preferred Guarantee Trustee or its
        agents hereunder shall bind the Holders, and the signature of the
        Preferred Guarantee Trustee or its agents alone shall be sufficient and
        effective to perform any such action. No third party shall be required
        to inquire as to the authority of the Preferred Guarantee Trustee to so
        act or as to its compliance with any of the terms and provisions of this
        Preferred

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        Securities Guarantee, both of which shall be conclusively evidenced by
        the Preferred Guarantee Trustee's or its agent's taking such action.

                (x) Whenever in the administration of this Preferred Securities
        Guarantee the Preferred Guarantee Trustee shall deem it desirable to
        receive instructions with respect to enforcing any remedy or right or
        taking any other action hereunder, the Preferred Guarantee Trustee (i)
        may request instructions from the Holders of a Majority in liquidation
        amount of the Preferred Securities, (ii) may refrain from enforcing such
        remedy or right or taking such other action until such instructions are
        received, and (iii) shall be protected in conclusively relying on or
        acting in accordance with such instructions.

                (xi) Except as otherwise expressly provided by this Preferred
        Securities Guarantee, the Preferred Guarantee Trustee shall not be under
        any obligation to take any action that is discretionary under the
        provisions of this Preferred Securities Guarantee.

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

        (b) No provision of this Preferred Securities Guarantee shall be deemed
to impose any duty or obligation on the Preferred Guarantee Trustee to perform
any act or acts or exercise any right, power, duty or obligation conferred or
imposed on it in any jurisdiction in which it shall be illegal, or in which the
Preferred Guarantee Trustee shall be unqualified or incompetent in accordance
with applicable law, to perform any such act or acts or to exercise any such
right, power, duty or obligation. No permissive power or authority available to
the Preferred Guarantee Trustee shall be construed to be a duty.

        SECTION 3.3 Not Responsible for Recitals or Issuance of Preferred
Securities Guarantee

        The recitals contained in this Preferred Securities Guarantee shall be
taken as the statements of the Guarantor, and the Preferred Guarantee Trustee
does not assume any responsibility for their correctness. The Preferred
Guarantee Trustee makes no representation as to the validity or sufficiency of
this Preferred Securities Guarantee.

                                   ARTICLE IV

                           PREFERRED GUARANTEE TRUSTEE

        SECTION 4.1 Preferred Guarantee Trustee; Eligibility

        (a) There shall at all times be a Preferred Guarantee Trustee which
shall:

                (i) not be an Affiliate of the Guarantor; and

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                (ii) be a corporation organized and doing business under the
        laws of the United States of America or any State or territory thereof
        or of the District of Columbia, or a corporation or Person permitted by
        the Securities and Exchange Commission to act as an institutional
        trustee under the Trust Indenture Act, authorized under such laws to
        exercise corporate trust powers, having a combined capital and surplus
        of at least 50 million U.S. dollars ($50,000,000), and subject to
        supervision or examination by federal, state, territorial or District of
        Columbia authority. If such corporation publishes reports of condition
        at least annually, pursuant to law or to the requirements of the
        supervising or examining authority referred to above, then, for the
        purposes of this Section 4.1(a)(ii), 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.

        (b) If at any time the Preferred Guarantee Trustee shall cease to be
eligible to so act under Section 4.1(a), the Preferred Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 4.2(c).

        (c) If the Preferred Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Preferred Guarantee Trustee and Guarantor shall in all
respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

        SECTION 4.2 Appointment, Removal and Resignation of Preferred Guarantee
Trustee

        (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee may be
appointed or removed without cause at any time by the Guarantor.

        (b) The Preferred Guarantee Trustee shall not be removed in accordance
with Section 4.2(a) until a Successor Preferred Guarantee Trustee has been
appointed and has accepted such appointment by written instrument executed by
such Successor Preferred Guarantee Trustee and delivered to the Guarantor and to
the Preferred Guarantee Trustee being removed.

        (c) The Preferred Guarantee Trustee appointed to office shall hold
office until a Successor Preferred Guarantee Trustee shall have been appointed
or until its removal or resignation. The Preferred Guarantee Trustee may resign
from office (without need for prior or subsequent accounting) by an instrument
(a "Resignation Request") in writing executed by the Preferred Guarantee Trustee
and delivered to the Guarantor which resignation shall take effect upon such
delivery or upon such later date as is specified therein; provided, however,
that no such resignation of the Preferred Guarantee Trustee shall be effective
until a Successor Preferred Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor
Preferred Guarantee Trustee and delivered to the Guarantor and the resigning
Preferred Guarantee Trustee.

        (d) If no Successor Preferred Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery to the Guarantor of a Resignation Request, the resigning
Preferred Guarantee Trustee may petition at the expense of the Company any court
of competent jurisdiction for appointment of a Successor

                                       11
<PAGE>

Preferred Guarantee Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper, appoint a Successor Preferred Guarantee
Trustee.

        (e) No Preferred Guarantee Trustee shall be liable for the acts or
omissions to act of any Successor Preferred Guarantee Trustee.

        (f) Upon termination of this Preferred Securities Guarantee or removal
or resignation of the Preferred Guarantee Trustee pursuant to this Section 4.2,
the Guarantor shall pay to the Preferred Guarantee Trustee all amounts accrued
to the date of such termination, removal or resignation.

                                    ARTICLE V

                                    GUARANTEE

        SECTION 5.1 Guarantee

        The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense, right of
set-off or counterclaim that the Issuer may have or assert, other than the
defense of payment. The Guarantor's obligation to make a Guarantee Payment may
be satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Issuer to pay such amounts to the Holders.

        SECTION 5.2 Waiver of Notice and Demand

        The Guarantor hereby waives notice of acceptance of this Preferred
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against
the Issuer or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

        SECTION 5.3 Obligations Not Affected

        The obligations, covenants, agreements and duties of the Guarantor under
this Preferred Securities Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:

        (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Issuer;

        (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or

                                       12
<PAGE>

other sum payable that results from the extension of any interest payment period
on the Debentures or any extension of the maturity date of the Debentures
permitted by the Indenture);

        (c) any failure, omission, delay or lack of diligence on the part of the
Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Preferred Securities, or
any action on the part of the Issuer granting indulgence or extension of any
kind;

        (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

        (e) any invalidity of, or defect or deficiency in, the Preferred
Securities;

        (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

        (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.

        There shall be no obligation of the Holders to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.

        SECTION 5.4 Enforcement of Guarantee; Rights of Holders

        The Guarantor and the Preferred Guarantee Trustee expressly acknowledge
that:

        (a) this Preferred Securities Guarantee will be deposited with the
Preferred Guarantee Trustee to be held for the benefit of the Holders;

        (b) the Preferred Guarantee Trustee has the right to enforce this
Preferred Securities Guarantee on behalf of the Holders;

        (c) the Holders of a Majority in liquidation amount of the Preferred
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Preferred Guarantee Trustee in
respect of this Preferred Securities Guarantee or exercising any trust or power
conferred upon the Preferred Guarantee Trustee under this Preferred Securities
Guarantee; and

        (d) any Holder may institute a legal proceeding directly against the
Guarantor to enforce the Preferred Guarantee Trustee's rights and the
obligations of the Guarantor under this Preferred Securities Guarantee, without
first instituting a legal proceeding against the Issuer, the Preferred Guarantee
Trustee or any other person or entity, and the Guarantor waives any right or
remedy to require that any action be brought first against the Issuer or any
other person or entity before proceeding directly against the Guarantor.

                                       13
<PAGE>

        SECTION 5.5 Guarantee of Payment

        This Preferred Securities Guarantee creates a guarantee of payment and
not of collection. This Preferred Securities Guarantee will not be discharged
except by payment of the Guarantee Payments in full (without duplication of
amounts therefor paid by the Issuer).

        SECTION 5.6 Subrogation

        The Guarantor shall be subrogated to all (if any) rights of the Holders
against the Issuer in respect of any amounts paid to such Holders by the
Guarantor under this Preferred Securities Guarantee; provided, however, that the
Guarantor shall not (except to the extent required by mandatory provisions of
law) be entitled to enforce or exercise any right that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Preferred Securities Guarantee, if, at the time
of any such payment, any amounts are due and unpaid under this Preferred
Securities Guarantee. If any amount shall be paid to the Guarantor in violation
of the preceding sentence, the Guarantor agrees to hold such amount in trust for
the Holders and to pay over such amount to the Holders.

        SECTION 5.7 Independent Obligations

        The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Preferred
Securities, and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Preferred
Securities Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

        SECTION 6.1 Limitation of Transactions

        So long as any Preferred Securities remain outstanding, if (a) there
shall have occurred an Event of Default, (b) there shall have occurred an Event
of Default (as defined under the Indenture) or (c) the Debenture Issuer has
exercised its option to defer interest payments on the Debentures by extending
the interest payment period as provided in Article IV of the First Supplemental
Indenture to the Indenture, and such period or extension thereof shall be
continuing, then (i) the Guarantor shall not, and shall not permit the Debenture
[Issuer OR Guarantor] to declare or pay any dividend on, make any distribution
relating to, or redeem, purchase, acquire, or make a liquidation payment
relating to, any of its capital stock or make any guarantee payments with
respect thereto (other than (A) repurchases, redemptions or other acquisitions
of shares of capital stock of the Guarantor in connection with the satisfaction
by the Guarantor of its obligations under any employee benefit plans or any
other contractual obligation of the Guarantor (other than a contractual
obligation ranking pari passu with or junior to the Debentures), (B) as a result
of a reclassification of the capital stock of the Guarantor or the Debenture
[Issuer OR Guarantor] or the exchange or conversion of one class or series of
the capital stock of the Guarantor or the Debenture [Issuer OR Guarantor] for
another class or series of the capital stock of the Guarantor or the Debenture
[Issuer OR Guarantor], (C) the purchase of

                                       14
<PAGE>

fractional interests in shares of the capital stock of the Guarantor or the
Debenture [Issuer OR Guarantor] pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
or (D) dividends and distributions made upon the capital stock of the Guarantor
or the Debenture [Issuer OR Guarantor] or rights to acquire that capital stock
with the Guarantor's or the Debenture [Issuer OR Guarantor]'s capital stock or
rights to acquire that capital stock), (ii) the Guarantor shall not and shall
not permit the Debenture [Issuer OR Guarantor] to make any payment of interest,
principal or premium, if any, on, or repay, repurchase or redeem any debt
securities issued by the Guarantor or the Debenture [Issuer OR Guarantor] that
rank pari passu with or junior to the Debentures and (iii) the Guarantor shall
not make, and shall not permit the Debenture [Issuer OR Guarantor] to make any
guarantee payments with respect to the foregoing (other than pursuant to this
Preferred Securities Guarantee or the guarantee under the Indenture).

        In addition, so long as any Preferred Securities remain outstanding, the
Guarantor (i) will remain the sole direct or indirect owner of all of the
outstanding Common Securities; provided that any permitted successor of the
Guarantor under the Indenture may succeed to the Guarantor's ownership of the
Common Securities and (ii) will not take any action which would cause the Issuer
to cease to be treated as a grantor trust for United States federal income tax
purposes except in connection with a distribution of Debentures as provided in
the Declaration.

        SECTION 6.2 Ranking

        This Preferred Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank (i) subordinate and junior in right of
payment to all other liabilities of the Guarantor, except those made pari passu
or subordinate by their terms, (ii) pari passu with the most senior preferred or
preference stock now or hereafter issued by the Guarantor and with any guarantee
now or hereafter entered into by the Guarantor in respect of any preferred or
preference stock of any Affiliate of the Guarantor, and (iii) senior to the
Guarantor's common stock.

                                   ARTICLE VII

                                   TERMINATION

        SECTION 7.1 Termination

        This Preferred Securities Guarantee shall terminate and be of no further
force and effect upon (i) full payment of the Redemption Price of all Preferred
Securities, (ii) upon the distribution of the Debentures to all of the Holders
or (iii) upon full payment of the amounts payable in accordance with the
Declaration upon liquidation of the Issuer. Notwithstanding the foregoing, this
Preferred Securities Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder must restore payment
of any sums paid under the Preferred Securities or under this Preferred
Securities Guarantee.

                                       15
<PAGE>

                                  ARTICLE VIII

                                 INDEMNIFICATION

        SECTION 8.1 Exculpation

        (a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Guarantor or any Covered Person for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Preferred Securities
Guarantee and in a manner that such Indemnified Person reasonably believed to be
within the scope of the authority conferred on such Indemnified Person by this
Preferred Securities Guarantee or by law, except that an Indemnified Person
shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's negligence or willful misconduct with respect to such acts
or omissions.

        (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders might properly be paid.

        SECTION 8.2 Indemnification

        To the fullest extent permitted by applicable law, the Guarantor agrees
to indemnify each Indemnified Person for, and to hold each Indemnified Person
harmless against, any loss, liability or expense incurred by such Indemnified
Person by reason of any act or omission performed or omitted by such Indemnified
Person without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees and
expenses) of defending itself against, or investigating, any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder. The obligation to indemnify as set forth in this Section 8.2 shall
survive the resignation or removal of the Preferred Guarantee Trustee and the
termination of this Preferred Securities Guarantee.

                                   ARTICLE IX

                                  MISCELLANEOUS

        SECTION 9.1 Successors and Assigns

        All guarantees and agreements contained in this Preferred Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Preferred Securities then outstanding. Except in connection with any
merger or consolidation of the Guarantor with or into another entity or any
sale, transfer or lease of the Guarantor's assets to another entity, each as
permitted by the Indenture, the

                                       16
<PAGE>

Guarantor may not assign its rights or delegate its obligations under this
Preferred Securities Guarantee without the prior approval of the Holders of at
least a Majority in liquidation amount of the Preferred Securities then
outstanding.

        SECTION 9.2 Amendments

        Except with respect to any changes that do not adversely affect the
rights of Holders (in which case no consent of Holders will be required), this
Preferred Securities Guarantee may only be amended with the prior approval of
the Holders of at least a Majority in liquidation amount of all the outstanding
Preferred Securities. The provisions of Section 12.2 of the Declaration with
respect to meetings of Holders apply to the giving of such approval.

        SECTION 9.3 Notices

        All notices provided for in this Preferred Securities Guarantee shall be
in writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

        (a) If given to the Preferred Guarantee Trustee, at the Preferred
Guarantee Trustee's mailing address set forth below (or such other address as
the Preferred Guarantee Trustee may give notice of to the Holders):

                      The Bank of New York
                      101 Barclay Street
                      New York, New York  10286
                      Attention:  Corporate Trust Administration
                      Telecopy:  (212) 896-7298

        (b) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Holders):

                      Countrywide Credit Industries, Inc.
                      4500 Park Granada
                      Calabasas, California  91302
                      Attention:  General Counsel

        (c) If given to any Holder, at the address set forth on the books and
records of the Issuer.

        All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

                                       17
<PAGE>

        SECTION 9.4 Benefit

        This Preferred Securities Guarantee is solely for the benefit of the
Holders and, subject to Section 3.1(a), is not separately transferable from the
Preferred Securities.

        SECTION 9.5 Governing Law

        THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND ALL
RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO PRINCIPLES
OF CONFLICT OF LAWS.

        SECTION 9.6 Genders

        The masculine, feminine and neuter genders used herein shall include the
masculine, feminine and neuter genders.

        SECTION 9.7 Counterparts

        This Preferred Securities Guarantee may be executed in counterparts,
each of which shall be an original, but such counterparts shall together
constitute one and the same instrument.

                                       18
<PAGE>

THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year first
above written.

COUNTRYWIDE CREDIT INDUSTRIES, INC.,
as Guarantor

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

THE BANK OF NEW YORK,
as Preferred Guarantee Trustee

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

                                       19<PAGE>

                                                                  Exhibit 10.10b

                       AMENDMENT TO SHAREHOLDER AGREEMENT

         This Amendment to Shareholder Agreement is made as of May 25, 2001 by
and among John G. Sperling, Peter V. Sperling, and Todd S. Nelson (each a
"Shareholder" and collectively the "Shareholders") and Apollo Group, Inc. (the
"Company").

         Whereas, the Shareholders and the Company are parties to a Shareholders
Agreement dated as of September 7, 1994 (the "Agreement"); the other parties to
the Agreement (William H. Gibbs, John D. Murphy, James W. Hoggatt, and Jerry F.
Noble) no longer own any of the Class B Common Stock of the Company; and the
Shareholders wish to amend the Agreement;

         Now, therefore, it is agreed:

         1. Section 2 of the Agreement is amended in its entirety to read:

                  "2. Transfer to Other Shareholder(s). Notwithstanding the
         provisions of Section 1 or Section 7 hereof, a Shareholder may transfer
         Shares to any other Shareholder. The Shares so transferred shall not be
         converted into shares of the Company's Class A Common Stock as a result
         of such transfer."

         2. Section 5 of the Agreement is amended in its entirety to read:

                  "5. Transfer to a Trust. Notwithstanding the provisions of
         Section 1 or Section 7 hereof, a Shareholder may transfer Shares to a
         trust created by the Shareholder ("Shareholder Trust"), provided that
         any and all trustee(s) of such a Shareholder Trust are Shareholders and
         enter into an agreement with the Company acknowledging the existence of
         this Agreement and agreeing that any disposition of the Shares by the
         trustees (including any transfers to beneficiaries) will be made in
         compliance with the terms and conditions of this Agreement. The Shares
         so transferred shall not be converted into shares of the Company's
         Class A Common Stock as a result of such transfer. In addition, John G.
         Sperling may transfer shares to a Shareholder Trust in which the
         trustees are Peter V. Sperling, Todd S. Nelson, and Jon S. Cohen, with
         the following provision to fill any vacancy as trustee: if any named
         trustee resigns or is unavailable to serve, the remaining trustee(s)
         shall appoint the successor trustee(s) and in the case of any
         disagreement, the Board of Directors of the Company shall appoint the
         successor trustee. The Shares so transferred shall not be converted
         into shares of the Company's Class A Common Stock as a result of such
         transfer."

         3. The first paragraph of Section 7 of the Agreement is amended in its
entirety to read:
                  "7. Purchase of Stock Upon Death, Incompetency, or Bankruptcy
         of Shareholder. Upon the death or incompetency of any Shareholder or
         the filing of a voluntary or involuntary bankruptcy petition by or
         against any Shareholder (a "Noncontinuing Shareholder"), the Company
         and the other Shareholders (the
<PAGE>
         "Continuing Shareholders") shall have the right to purchase the Shares
         owned by the Noncontinuing Shareholder (including any Shares or
         interest therein owned by his or her spouse, if any) in the manner set
         forth in this Section 7, unless the Noncontinuing Shareholder made a
         transfer pursuant to Section 2 or Section 5 hereof that is effective
         upon death, incompetency, or bankruptcy. For purposes of this Section
         7, a Shareholder shall be deemed incompetent if the Shareholder is
         adjudicated incompetent in an appropriate judicial proceeding."

         4. Section 16 of the Agreement is amended in its entirety to read:

                  "16. Shareholder Defined. In addition to John G. Sperling,
         Peter V. Sperling, and Todd S. Nelson, the term Shareholder as used
         herein shall also include (i) any person, his successors and assigns,
         and any corporation, partnership, joint venture, association, or other
         entity, whether or not such individual or entity is a Shareholder as of
         the date hereof, who acquires any Shares from any Shareholder, directly
         or indirectly, by any means whatsoever in a transaction permitted by
         this Agreement, or (ii) any person or entity who acquires Shares from
         the Company and who agrees (and whose spouse consents, if necessary) to
         become a party to and be bound by the terms of this Agreement, but any
         Shareholder who no longer owns any Shares shall not be entitled to any
         of the benefits of this Agreement."

         5. Peter V. Sperling represents and warrants that his shares of Class B
Common Stock are his sole and separate property. The spouse of Todd S. Nelson
has signed the consent attached.

         6. The Agreement, as hereby amended, is confirmed.

           In witness whereof, the parties have executed this document as of the
date stated above.

Shareholders:                              The Company:

                                           APOLLO GROUP, INC.

                                           By:
-------------------------------------        -----------------------------------
John G. Sperling

-------------------------------------
Peter V. Sperling

-------------------------------------
Todd S. Nelson

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