Document:

PROMISSORY NOTE

$30,000                                                  As of November 28, 2005

Vector Intersect Security Acquisition Corp. (the "Maker") promises to pay to the
order of Isaac Applbaum (the "Payee") the principal sum of Thirty Thousand
Dollars ($30,000) in lawful money of the United States of America, together with
interest on the unpaid principal balance of this Note, on the terms and
conditions described below.

     1. Principal. The principal balance outstanding under this Note shall be
payable no later than the first anniversary of the initial public offering (the
"IPO") of the Maker, provided that if the IPO does not take place by November
30, 2007, such principal balance shall be payable no later than December 31,
2007.

     2. Interest. Interest shall accrue at the rate of 4% annually
(non-compounded) on the unpaid principal balance of this Note from the date
hereof until it is repaid in full. In the absence of an Event of Default
hereunder, all such interest shall be paid not later than the date on which the
principal balance hereunder is due in accordance with paragraph 1 above.

     3. Repayment/Application of Payments. This Note may be voluntarily repaid
at any time without premium or penalty. All payments under this Note shall be
applied first to payment in full of any costs incurred in the collection of any
sum due under this Note, including (without limitation) reasonable attorneys'
fees, then to the payment of any accrued but unpaid interest and finally to the
reduction of the unpaid principal balance of this Note.

     4. Events of Default. The following shall constitute Events of Default:

        (a) Failure to Make Required Payments. Failure by Maker to pay the
principal of or accrued interest on this Note within five (5) business days
following the date when due.

        (b) Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary
case under the Federal Bankruptcy Code, as now constituted or hereafter amended,
or any other applicable federal or state bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of
or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of Maker or for any substantial part of
its property, or the making by it of any assignment for the benefit of
creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of
the foregoing.

        (c) Involuntary Bankruptcy, Etc. The entry of a decree or order for
relief by a court having jurisdiction in the premises in respect of maker in an
involuntary case under the Federal Bankruptcy Code, as now or hereafter
constituted, or any other applicable federal or state

bankruptcy, insolvency or other similar law, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
Maker or for any substantial part of its property, or ordering the winding-up or
liquidation of the affairs of Maker, and the continuance of any such decree or
order unstayed and in effect for a period of 60 consecutive days.

     5. Remedies.

        (a) Upon the occurrence of an Event of Default specified in Section
4(a), Payee may, by written notice to Maker, declare this Note to be due and
payable, whereupon the principal amount of this Note, and all other amounts
payable thereunder, shall become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived, anything contained herein or in the documents
evidencing the same to the contrary notwithstanding.

        (b) Upon the occurrence of an Event of Default specified in Sections
4(b) and 4(c), the unpaid principal balance of, and all other sums payable with
regard to, this Note shall automatically and immediately become due and payable,
in all cases without any action on the part of Payee.

     6. Waivers. Maker and all endorsers and guarantors of, and sureties for,
this Note waive presentment for payment, demand, notice of dishonor, protest,
and notice of protest with regard to the Note, all errors, defects and
imperfections in any proceedings instituted by Payee under the terms of this
Note, and all benefits that might accrue to Maker by virtue of any present or
future laws exempting any property, real or personal, or any part of the
proceeds arising from any sale of any such property, from attachment, levy or
sale under execution, or providing for any stay of execution, exemption from
civil process, or extension of time for payment; and Maker agrees that any real
estate that may be levied upon pursuant to a judgment obtained by virtue hereof,
on any writ of execution issued hereon, may be sold upon any such writ in whole
or in part in any order desired by Payee.

     7. Unconditional Liability. Maker hereby waives all notices in connection
with the delivery, acceptance, performance, default, or enforcement of the
payment of this Note, and agrees that its liability shall be unconditional,
without regard to the liability of any other party, and shall not be affected in
any manner by any indulgence, extension of time, renewal, waiver or modification
granted or consented to by Payee, and consents to any and all extensions of
time, renewals, waivers, or modifications that may be granted by Payee with
respect to the payment or other provisions of this Note, and agrees that
additional makers, endorsers, guarantors, or sureties may become parties hereto
without notice to them or affecting their liability hereunder.

     8. Notices. Any notice called for hereunder shall be deemed properly given
if (i) sent by certified mail, return receipt requested, (ii) personally
delivered, (iii) dispatched by any form of private or governmental express mail
or delivery service providing receipted delivery, (iv) sent by telefacsimile or
(v) sent by e-mail, to the following addresses or to such other address as
either party may designate by notice in accordance with this Section:

If to Maker:

Vector Intersect Security Acquisition Corp.
65 Challenger Road
Ridgefield Park, NJ 07660
Attn.: Yaron Eitan

If to Payee:

Isaac Applbaum
P.O. Box P
San Rafael, California 94913

Notice shall be deemed given on the earlier of (i) actual receipt by the
receiving party, (ii) the date shown on a telefacsimile transmission
confirmation, (iii) the date on which an e-mail transmission was received by the
receiving party's on-line access provider (iv) the date reflected on a signed
delivery receipt, or (vi) two (2) Business Days following tender of delivery or
dispatch by express mail or delivery service.

     9. Construction. This Note shall be construed and enforced in accordance
with the domestic, internal law, but not the law of conflict of laws, of the
State of New York.

     10. Severability. Any provision contained in this Note which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused
this Note to be duly executed by its Executive Vice President and Secretary
effective as the day and year first above written.

                                          VECTOR INTERSECT SECURITY
                                          ACQUISITION CORP.

                                          By:  /s/ Amit Avnet
                                               --------------------------
                                               Name: Amit Avnet
                                               Title: Executive Vice President
                                               and Secretaryexv4w2

 

MGIC INVESTMENT CORPORATION

OFFICER’S CERTIFICATE

Dated as of September 13, 2006

 

Setting Forth Terms of a Series of Debt Securities

5.625% Senior Notes Due 2011

 

Pursuant to the Indenture

Dated as of October 15, 2000

 

 

OFFICER’S CERTIFICATE

          The undersigned, the Executive Vice President and Chief Financial Officer of MGIC Investment
Corporation, a Wisconsin corporation (the “Company”), hereby certifies as provided below pursuant
to Section 3.1 of the Indenture, dated as of October 15, 2000 (the “Indenture”), between the
Company and U.S. Bank National Association, as successor trustee (the “Trustee”). This Officer’s
Certificate is delivered, pursuant to authority granted to the undersigned by resolutions adopted
July 12, 2005 by the Board of Directors of the Company, for the purpose of creating and setting
forth the terms of a series of Securities to be issued pursuant to the Indenture. Capitalized
terms not otherwise defined herein are used as defined in the Indenture.

          1. The Board of Directors of the Company has authorized any one or more Appropriate Officers
to create and authorize one or more series of unsecured senior debt securities of the Company
under an indenture. Pursuant to such authorization, the undersigned Appropriate Officer is
determining that a series of such securities shall be issued under the Indenture and in accordance
with the Indenture this Officer’s Certificate is being delivered to the Trustee to establish the
terms of a series of Securities as set forth therein.

          2. The title of the Securities shall be “5.625% Senior Notes due 2011” (herein called the
“Notes”).

          3. The aggregate principal amount of Notes which may be authenticated and delivered under the
Indenture is limited to U.S. $200,000,000, except for Notes authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes as provided in Sections
3.4, 3.5, 3.6, 9.5, or 11.7 of the Indenture, upon repayment in part of any Registered Security of
such series pursuant to Article 13 of the Indenture, upon surrender in part of any Registered
Security for conversion into other securities of the Company or exchange for securities of another
issuer pursuant to its terms, or pursuant to or as contemplated by the terms of such Notes.
Notwithstanding the foregoing limitation on aggregate principal amount of the Notes, the Notes may
be reopened for issuances of additional Notes in accordance with Section 3.1 of the Indenture.

          4. The Notes shall be issuable as Registered Securities and shall not be exchangeable for
Bearer Securities.

          5. Subject to earlier redemption, the principal of the Notes shall be payable in U.S. dollars
on September 15, 2011.

          6. The Notes shall bear interest at the rate of 5.625% per annum; such interest shall accrue
from September 18, 2006 (or from the most recent interest payment date to which interest on the
Notes has been paid or provided for); the interest payment dates on which such interest shall be
payable shall be March 15 and September 15 in each year, commencing March 15, 2007; the Regular
Record Dates for the determination of Holders to whom interest is payable shall be the March 1 or
September 1 next preceding each Interest Payment Date. Interest on the Notes shall be payable in
U.S. dollars.

-2-

 

          7. Pursuant to the Indenture, the Trustee has been appointed as the Security Registrar for the
Notes. The Trustee is hereby further appointed as the initial Paying Agent and transfer agent of
the Notes. The principal of and interest on the Notes shall be payable at the office of the Paying
Agent, which shall initially be located in the Borough of Manhattan, The City of New York.

          8. The Notes shall be redeemable at any time in whole or from time to time in part at a
Redemption Price equal to the sum of 100% of the principal amount of the Notes being redeemed,
accrued interest thereon to the Redemption Date, and the Make-Whole Amount, if any, with respect to
such Notes; provided, however, that installments of interest on Notes due on an Interest Payment
Date which occurs on or before any Redemption Date shall be payable to the Holders of such Notes
who were registered Holders as of the close of business on the Record Date immediately preceding
such Interest Payment Date.

          9. The terms defined below shall, for all purposes of the Notes under the Indenture and this
Officer’s Certificate, have the meanings specified, unless the context clearly otherwise requires
or unless otherwise indicated:

          “Make-Whole Amount” means, in connection with any optional redemption, the excess, if any, of
(i) the aggregate present value as of the date of such redemption of each dollar of principal being
redeemed and the amount of interest, exclusive of interest accrued to the Redemption Date, that
would have been payable in respect of each such dollar if such redemption had not been made,
determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment
Rate, as determined on the third Business Day preceding the date such notice of redemption is
given, from the respective dates on which such principal and interest would have been payable if
such redemption had not been made, to the date of redemption, over (ii) the aggregate principal
amount of the Notes being redeemed. The Make-Whole Amount shall be calculated by the Company and
set forth in a certificate of an Authorized Officer delivered to the Trustee, and the Trustee shall
be entitled to rely on said certificate.

          “Reinvestment Rate” means .15% (15 basis points) plus the arithmetic mean of the yields under
the heading “Week Ending” published in the most recent Statistical Release under the caption
“Treasury Constant Maturities” for the maturity, rounded to the nearest month, corresponding to the
remaining life to maturity, as of the payment date of the principal amount of the Notes being
redeemed. If no maturity exactly corresponds to such maturity, yields for the two published
maturities most closely corresponding to such maturity shall be calculated pursuant to the
immediately preceding sentence and the Reinvestment Rate shall be interpolated or extrapolated from
such yields on a straight-line basis, rounding in each of such relevant periods to the nearest
month. For the purposes of calculating the Reinvestment Rate, the most recent Statistical Release
published prior to the date of determination of the Make-Whole Amount shall be used. If the format
or content of the Statistical Release changes in a manner that precludes determination of the
Treasury yield in the above manner, then the Treasury yield shall be determined in the manner that
most closely approximates the above manner, as reasonably determined by the Company.

          “Statistical Release” means the statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Federal Reserve System and which

-3-

 

reports yields on actively traded United States government securities adjusted to constant maturities,
or, if such statistical release is not published at the time of any required determination under
the Indenture, then such other reasonably comparable index which shall be designated by the
Company.

          10. The Notes shall not be subject to any sinking fund and shall not be repurchasable at the
option of a Holder.

          11. The Notes shall not be convertible into other securities of the Company or exchangeable
for securities of another issuer.

          12. Defeasance and covenant defeasance under Section 4.2(2) and Section 4.2(3) of the
Indenture shall be applicable to the Notes.

          13. The Notes shall not be issuable upon the exercise of warrants.

          14. The Notes shall initially be issued in whole in the form of one or more permanent global
Securities. The Depository Trust Company, a clearing agency registered under the Securities
Exchange Act of 1934, as amended (“DTC”), shall initially serve as the depositary for such global
Security or Securities. For so long as DTC shall be the depositary, all Notes shall be registered
in its name or in the name of a nominee thereof. While the Notes are evidenced by one or more
global Securities, the depositary or its nominee, as the case may be, shall be the sole Holder
thereof for all purposes under the Indenture. Neither the Company nor the Trustee shall have any
responsibility or the obligation to the depositary’s participants or the beneficial owners for whom
they act with respect to their receipt from the depositary of payments on the Notes or notices
given under the Indenture. The global Security or Securities provided for hereunder shall bear
such legend or legends as may be required from time to time by the depositary.

          15. Except as hereinafter described, Notes in definitive form will not be issued.
Notwithstanding the foregoing, in the event the Company decides to discontinue the use of global
Securities, any Event of Default has occurred and is continuing or if DTC is at any time unwilling,
unable or ineligible to continue as depositary and a successor depositary is not appointed by the
Company within 90 days, the Company will issue individual Notes in certificated form to owners of
“book-entry” ownership interests in exchange for the Notes held by DTC or its nominee, as the case
may be. In such instance, an owner of a “book-entry” ownership interest will be entitled to
physical delivery of certificates equal in principal amount to such “book-entry” ownership interest
and to have such certificates registered in its name. Individual certificates so issued will be
issued in denominations of $1,000 or any multiple thereof.

          16. Additional terms regarding the Notes are as set forth in the form of the Notes set forth
below.

          17. The form of the Notes shall be substantially as follows:

-4-

 

[Form of 5.625% Note due 2011]

	 	 	 
	No. R-                    

	 	$                    

MGIC INVESTMENT CORPORATION

5.625% Note due 2011

CUSIP No.: 552845 AG 4

MGIC INVESTMENT CORPORATION

promises to pay to                                                                                                                                                                                    

or registered assigns

the principal sum of                                                                       
                              Dollars on September 15, 2011

	 	 	 
	Interest Payment Dates:

	 	March 15 and September 15
	Regular Record Dates:

	 	March 1 and September 1

Dated:

	 	 	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF	 	MGIC INVESTMENT CORPORATION
	AUTHENTICATION
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	This is one of the Securities of the series

	 	By:	 	 	 	 
	designated therein referred to in the

	 	 	 	Authorized Officer	 	 
	within-mentioned Indenture
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION, as Trustee	 	 	 	(CORPORATE SEAL)

	 
	 	 	 	 	 	 
	By:                                                                 

	 	 	 	 

	 	 
	          Authorized Officer

	 	 	 	Authorized Officer	 	 

-5-

 

MGIC INVESTMENT CORPORATION

5.625% Note due 2011

          Interest. MGIC Investment Corporation, a Wisconsin corporation (the “Company”), promises to
pay interest on the principal amount of this Security (as defined herein) at the rate per annum
shown above. The Company shall pay interest semiannually on March 15 and September 15 of each year
commencing March 15, 2007. Interest on the Securities shall accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from September 18, 2006. Interest
shall be computed on the basis of a 360-day year of twelve 30-day months.

          Method of Payment. The Company shall pay interest on the Securities to the persons who are
registered holders of Securities at the close of business on the Record Date for the next Interest
Payment Date, except as otherwise provided in the Indenture. Holders must surrender Securities to
a Paying Agent to collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for payment of public and
private debts. The Company may pay principal and interest by check payable in such money. The
Company may mail an interest check to a Holder’s registered address.

          Securities Agents. Initially, U.S. Bank National Association, shall act as Paying Agent,
transfer agent and Security Registrar. The Company may change any Paying Agent, transfer agent or
Security Registrar without notice. The Company or any Affiliate of the Company may act in any such
capacity. Subject to certain conditions, the Company may change the Trustee.

          Indenture. The Company issued the securities of this series (individually a “Security” and
collectively the “Securities”) under an Indenture, dated as of October 15, 2000 (the “Indenture”),
between the Company and U.S. Bank National Association (the “Trustee”), as supplemented by the
Officer’s Certificate, dated as of September 13, 2006 (the “Officer’s Certificate”). The terms of
the Securities include those stated in the Indenture and in the Officer’s Certificate establishing
the Securities and those made part of the Indenture by the Trust Indenture Act of 1939 (15 U.S.
Code Sections 77aaa-77bbbb). Holders are referred to the Indenture, the above-referenced Officer’s
Certificate and such act for a statement of such terms. All capitalized terms used but not defined
herein have the respective meanings ascribed thereto in the Indenture.

          Maturity. The principal on the Securities shall be payable on September 15, 2011.

          Redemption Prior to Maturity. The Securities shall be redeemable at any time in whole or from
time to time in part at a Redemption Price equal to the sum of 100% of the principal amount of the
Securities being redeemed, accrued interest thereon to the Redemption Date, and the Make-Whole
Amount, if any, with respect to such Securities; provided, however, that installments of interest
on Securities due on an Interest Payment Date which occurs on or before any Redemption Date shall
be payable to the Holders of such Securities who were registered Holders as of the close of
business on the Record Date immediately preceding such

-6-

 

Interest Payment Date. The Company shall
give notice of any redemption of any Securities to Holders of the Securities to be redeemed at the addresses of such Holders, as shown in the
Security Register, not more than 60 nor less than 30 days prior to the Redemption Date. The notice
of redemption will specify, among other items, the Redemption Price and the aggregate principal
amount of the Securities to be redeemed. If less than all of the Outstanding Securities are to be
redeemed, then the Trustee shall select the Securities to be redeemed in principal amounts of
$1,000 or integral multiples of $1,000 by lot, pro rata or by another method the Trustee considers
fair and appropriate. The Indenture contains additional provisions with respect to any redemption
of the Securities.

          Denominations, Transfer, Exchange. The Securities are in registered form without coupons in
denominations of $1,000 and whole multiples of $1,000. The transfer of Securities may be
registered and Securities may be exchanged as provided in the Indenture. The transfer agent may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or the Indenture.

          Persons Deemed Owners. The registered holder of a Security may be treated as its owner for
all purposes.

          Amendments and Waivers. Subject to certain exceptions, the Indenture or the Securities may be
amended with the consent of the Holders of not less than a majority in aggregate principal amount
of the Securities of all series affected by the amendment. Subject to certain exceptions, a
default on a series may be waived with the consent of the Holders of not less than a majority in
principal amount of the series.

          Without the consent of any Holder, the Indenture or the Securities may be amended to, among
other things, cure any ambiguity or correct any omission, defect or inconsistency; to provide for
assumption of Company obligations to Holders; or to make any change that does not materially
adversely affect the interests of any Holders of Securities then Outstanding.

          Limitations on Debt. The Securities are unsecured general obligations of the Company limited
to $200,000,000 principal amount; provided, however, that the Securities may be reopened for
issuances of additional Securities in accordance with the Indenture. The Indenture does not limit
other unsecured debt.

          Successors. When a successor assumes all the obligations of the Company under the Securities
and the Indenture, the Company shall be released from those obligations.

          Defeasance Prior to Maturity. Subject to certain conditions, the Company at any time may
terminate some or all of its obligations under the Securities and the Indenture if the Company
deposits with the Trustee U.S. dollars or U.S. Government Obligations for the payment of principal
of and interest on the Securities to maturity.

          Defaults and Remedies. An Event of Default includes: default for 30 days in payment of
interest on the Securities; default in payment of principal on the Securities; default by the
Company in the performance of any of its other agreements applicable to the Securities that
continues for 60 days after the Company has been given notice of such default; a failure to pay

-7-

 

when due at maturity or a default that results in the acceleration of maturity of any other debt of
the Company or certain subsidiaries in an aggregate amount of $40 million or more; and certain
events of bankruptcy or insolvency. If an Event of Default occurs and is continuing, the Trustee
or the Holders of not less than 25% in principal amount of the Outstanding Securities may declare
the principal of all the Securities to be due and payable immediately.

          Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the
Securities. Subject to certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing default (except a default in payment of principal or
interest) if it in good faith determines that withholding such notice is in their best interest.

          Trustee Dealings with Company. The Trustee, in its individual or any other capacity, may make
loans to, accept deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with those persons, as if it were not Trustee.

          No Recourse Against Others. Any incorporator, director or officer, as such, of the Company
shall not have any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Security waives and releases all such liability. The waiver
and release are part of the consideration for the issue of the Securities.

          Authentication. This Security shall not be valid until authenticated by a manual signature of
the Trustee.

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

          The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture and the Officer’s Certificate, which contains the text of this Security. Requests may be
made to: Corporate Secretary, MGIC Investment Corporation, MGIC Plaza, 250 East Kilbourn Avenue,
Milwaukee, Wisconsin 53202.

          All terms used in this Security, which are defined in the Indenture, shall have the meanings
assigned to them in the Indenture.

-8-

 

[Form of Assignment Form]

ASSIGNMENT FORM

					
	 
	 

	 	To assign this Security, fill in the form below:	 	 
	 
	 	 	 	 
	 

	 	I or we assign and transfer this Security to	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	(Print or type assignee’s name, address and zip code)

(Insert assignee’s soc. sec. or tax I.D. no.)

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

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	,	 	 	Your signature:	 	 
	 

	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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

Signature Guaranteed:

	 	 	 
	 

	 	 

* * *

-9-

 

     IN WITNESS WHEREOF, I have set my hand as of the day and year first above written.

					
	 
	 	MGIC INVESTMENT CORPORATION	 
	 
	 	By:  	/s/ J. Michael Lauer
 	 
	 	 	J. Michael Lauer 	 
	 	 	Executive Vice President,

and Chief Financial Officer 	 
	 

-10-

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