Document:

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                                                                     EXHIBIT 4.2

                               CENTEX CORPORATION

                                     Issuer

                                       and

                            THE CHASE MANHATTAN BANK

              (formerly Chase Bank of Texas, National Association)

                                     Trustee

                           INDENTURE SUPPLEMENT NO. 6

                          Dated as of February 6, 2001

                                       to

                                    INDENTURE

                           Dated as of October 1, 1998

                    7.875% Senior Notes due February 1, 2011

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                                TABLE OF CONTENTS

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ARTICLE ONE  DEFINITIONS..........................................................................................1

ARTICLE TWO  TERMS AND ISSUANCE OF THE NOTES......................................................................3
         Section 2.01.     Issuance and Designation...............................................................3
         Section 2.02.     Form and Other Terms of Notes; Incorporation of Terms..................................3
         Section 2.03.     Place and Method of Payment............................................................3

ARTICLE THREE  ADDITIONAL COVENANTS...............................................................................4
         Section 3.01.     Limitation on Liens....................................................................4
         Section 3.02.     Limitation on Sale and Lease-Back Transactions.........................................6

ARTICLE FOUR  DEFEASANCE..........................................................................................6
         Section 4.01.     Option to Effect Legal Defeasance or Covenant Defeasance...............................6
         Section 4.02.     Legal Defeasance.......................................................................6
         Section 4.03.     Covenant Defeasance....................................................................7
         Section 4.04.     Conditions to Covenant Defeasance......................................................7

ARTICLE FIVE  MISCELLANEOUS.......................................................................................8
         Section 5.01.     Ratification of Indenture..............................................................8
         Section 5.02.     Redemption.............................................................................8
         Section 5.03.     Conflict with Trust Indenture Act......................................................8
         Section 5.04.     Effect of Headings.....................................................................8
         Section 5.05.     Counterparts...........................................................................8
         Section 5.06.     Severability...........................................................................8
         Section 5.07.     Benefits of Indenture Supplement.......................................................8
         Section 5.08.     Acceptance of Trusts...................................................................9
         Section 5.09.     Governing Law..........................................................................9

EXHIBIT A      -           Form of Note
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                  INDENTURE SUPPLEMENT NO. 6 ("Indenture Supplement"), dated as
of February 6, 2001, between CENTEX CORPORATION, a Nevada corporation (together
with its successors and assigns as provided in the Indenture referred to below,
the "Company"), and THE CHASE MANHATTAN BANK , a New York banking corporation
(formerly, Chase Bank of Texas, National Association) (together with its
successors in trust thereunder as provided in the Indenture referred to below,
the "Trustee"), as trustee under an Indenture dated as of October 1, 1998 (the
"Indenture").

                              PRELIMINARY STATEMENT

                  Section 2.02 of the Indenture provides, among other things,
that the Company may, when authorized by its Board of Directors, and the Trustee
may at any time and from time to time, enter into a series supplement to the
Indenture for the purpose of authorizing one or more Series of Senior Debt
Securities and to specify certain terms of each such Series of Senior Debt
Securities. The Board of Directors of the Company has duly authorized the
creation of a Series of Senior Debt Securities to be known as the Company's
7.875% Senior Notes due 2011 (the "Notes"), and the Company and the Trustee are
executing and delivering this Indenture Supplement in order to provide for the
issuance of the Notes.

                                   ARTICLE ONE

                                   Definitions

                  Except to the extent such terms are otherwise defined in this
Indenture Supplement or the context clearly requires otherwise, all terms used
in this Indenture Supplement which are defined in the Indenture or the form of
Note attached hereto as Exhibit A, either directly or by reference therein,
shall have the meanings assigned to them therein.

                  As used in this Indenture Supplement, the following terms
shall have the following meanings:

CONSOLIDATED NET TANGIBLE ASSETS:

                  The term "Consolidated Net Tangible Assets" shall mean the
aggregate amount of assets included on the most recent consolidated balance
sheet of the Company and its subsidiaries, less applicable reserves and other
properly deductible items and after deducting therefrom (a) all current
liabilities and (b) all goodwill, trade names, trademarks, patents, unamortized
debt discount and expense, and other like intangibles, all in accordance with
generally accepted accounting principles consistently applied.

DEPOSITARY:

                  The term "Depositary" shall mean, unless otherwise specified
by the Company, The Depository Trust Company, New York, New York, or any
successor thereto registered as a Clearing Agency under the Securities Exchange
Act of 1934, as amended, or any successor statute or regulation.

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FUNDED INDEBTEDNESS:

                  The term "Funded Indebtedness" shall mean notes, bonds,
debentures or other similar evidences of indebtedness for money borrowed which
by their terms mature at or are extendible or renewable at the option of the
obligor to a date more than 12 months after the date of the creation of such
debt.

GLOBAL SECURITY:

                  The term "Global Security" shall mean a single Note that is
issued to evidence Notes having identical terms and provisions, which is
delivered to the Depositary or pursuant to instructions of the Depositary and
which shall be registered in the name of the Depositary or its nominee.

INTEREST PAYMENT DATE:

                  The term "Interest Payment Date" means the Stated Maturity of
an installment of interest on the Notes.

MATURITY DATE:

                  The term "Maturity Date," when used with respect to any Note,
shall mean the date on which the principal of such Note becomes due and payable
in accordance with its terms and the terms of this Indenture as therein or
herein provided, whether at Stated Maturity, upon declaration of acceleration,
call for redemption or otherwise.

NOTEHOLDER; HOLDER:

                  The terms "Noteholder" or "Holder" shall mean any Person in
whose name at the time a particular Note is registered in the Senior Debt
Security Register kept for that purpose in accordance with the terms hereof.

REGULAR RECORD DATE:

                  The term "Regular Record Date" for the interest payable on any
Interest Payment Date shall mean the day which is fifteen calendar days
immediately prior to such Interest Payment Date, whether or not such day is a
business day.

REDEMPTION DATE:

                  The term "Redemption Date" for a Note shall mean the date
fixed for the redemption of such Note in accordance with the provisions of this
Indenture Supplement.

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SPECIAL RECORD DATE:

                  The term "Special Record Date" for the payment of any
defaulted interest means a date which is not less than ten and not more than
fifteen calendar days immediately preceding the Interest Payment Date of
defaulted interest on such Note established by notice given by first class mail
by or on behalf of the Company to the Holder of such Note not less than fifteen
calendar days prior to such Special Record Date.

STATED MATURITY:

                  The term "Stated Maturity" means, when used with respect to
any Note or any installment of interest thereon (including defaulted interest),
the date specified in such Note as the fixed date upon which the principal of
such Note or such installment of interest is due and payable.

                                   ARTICLE TWO

                         Terms and Issuance of the Notes

                  Section 2.01. Issuance and Designation. A Series of Senior
Debt Securities which shall be designated as the Company's "7.875% Senior Notes
due 2011" shall be executed, authenticated and delivered in accordance with the
provisions of, and shall in all respects be subject to, the terms, conditions
and covenants of, the Indenture and this Indenture Supplement (including the
form of Note set forth in Exhibit A). The aggregate principal amount of the
Notes which may be authenticated and delivered under this Indenture Supplement
shall not, except as permitted by the provisions of the Indenture, exceed
$250,000,000, provided that the Company may, without the consent of the Holders
of the Notes, reopen this Series and issue additional Notes under the Indenture
and this Indenture Supplement in addition to the $250,000,000 of Notes
authorized as of the date hereof.

                  Section 2.02. Form and Other Terms of Notes; Incorporation of
Terms. The Notes shall be substantially in the form attached hereto as Exhibit
A. The terms of such Notes are herein incorporated by reference and are part of
this Indenture Supplement.

                  Section 2.03. Place and Method of Payment. The place of
payment in respect of the Notes will be at the principal office or agency of the
Company in Dallas, Texas or at the office or place of business of the Trustee or
its successor in trust under the Indenture, which, at the date hereof, is
located at Chase Global Trust, 450 W. 33rd Street, 15th Floor, New York, New
York 10001. Payments in respect of principal or premium, if any, on Notes will
be made only against surrender of such Notes at such office. Payments of
interest on each Interest Payment Date with respect to each Note will be made to
the Person in whose name such Note is registered at the close of business on the
Regular Record Date immediately preceding such Interest Payment Date by U.S.
dollar check drawn on a bank in the City of New York or, for Holders of at least
$1,000,000 of Notes, by wire transfer to a dollar account maintained by the
payee with a bank in the United States; provided that a written request from
such Holder to such effect

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designating such account is received by the Trustee or the Paying Agent no later
than 30 calendar days preceding such Interest Payment Date. Unless such
designation is revoked, any such designation made by such Holder with respect to
such Note payable to such Holder will remain in effect with respect to any
further interest payments with respect to such Note payable to such Holder. The
Company will pay any administrative costs imposed by banks in connection with
making interest payments by wire transfer.

                  So long as the Depositary continues to make its "Same-Day
Funds Settlement System" available to the Company, payments due on Notes
represented by a Global Security registered in the name of the Depositary or its
nominee will be made in immediately available funds to the Depositary or its
nominee, as the case may be, as the registered owner of the Global Security
representing such Notes. The Company expects that the Depositary or its nominee,
upon receipt of any payment, will credit immediately participants' accounts with
payments in same-day funds in amounts proportionate to their respective
beneficial interests in such payments, as shown on the records of the Depositary
or its nominee. The Company also expects that payments by participants and
indirect participants to owners of beneficial interests in such Global Security
held through such Persons will be governed by standing instructions and
customary practices, as is now the case with securities registered in the name
of nominees for such customers, and will be the responsibility of such
participants and indirect participants.

                                  ARTICLE THREE

                              Additional Covenants

                  Section 3.01. Limitation on Liens. The following provisions
shall apply to the Notes:

                  (a) The Company will not itself, and will not permit any of
         its subsidiaries (other than Centex Financial Services, Inc. and its
         subsidiaries) to, issue, assume or guarantee any indebtedness for
         borrowed money ("Indebtedness") if such borrowed money is secured by a
         mortgage, pledge, security interest, lien or other encumbrance (any
         such mortgage, pledge, security interest, lien or other encumbrance
         being hereinafter in this Section 3.01 referred to as a "Lien") on or
         with respect to any of the properties or assets of the Company or any
         such subsidiary or on any shares of capital stock or other equity
         interests of any subsidiary that owns properties or assets (other than
         Centex Financial Services, Inc. and its subsidiaries), whether, in each
         case, owned at the date of this Indenture Supplement or thereafter
         acquired, unless the Company makes effective provision whereby the
         Notes are secured by such Lien equally and ratably with any and all
         other borrowed money thereby secured; provided, however, that the
         foregoing restrictions shall not be applicable to:

                           (i) any Lien existing on any of the Company's
                  properties or assets or shares of capital stock or other
                  equity interests at the date of this Indenture Supplement;

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                           (ii) any Lien created by a subsidiary of the Company
                  in favor of the Company or any wholly-owned subsidiary;

                           (iii) any Lien on any property or asset of any
                  corporation or other entity (or on any accession or
                  improvement to such asset or any proceeds thereof) existing at
                  the time such corporation or other entity becomes a subsidiary
                  of the Company or is merged or consolidated with or into the
                  Company or any of its subsidiaries;

                           (iv) any Lien on any property or asset existing at
                  the time of acquisition thereof (or on any accession or
                  improvement to such property or asset or any proceeds thereof)
                  by the Company or any of its subsidiaries;

                           (v) any Lien on any property or asset (or on any
                  accession or improvement to such property or asset or any
                  proceeds thereof) securing Indebtedness incurred or assumed
                  for the purpose of financing all or any part of the cost of
                  acquiring such property or asset or the making of any
                  improvement thereof; provided that such Lien attaches to such
                  property or asset concurrently with or within 180 days after
                  the acquisition thereof or the making of such improvement;

                           (vi) any Lien incurred in connection with pollution
                  control, industrial revenue or any similar financing;

                           (vii) any Lien arising out of the refinancing,
                  extension, renewal or replacement of any of the Liens
                  permitted by any of clauses (i) through (vi) above; provided
                  that the principal amount of the Indebtedness secured by the
                  Lien being refinanced, extended, reviewed or replaced is not
                  increased and is not secured by any additional properties or
                  assets; and

                           (viii) any Lien imposed by law.

                  (b) Notwithstanding the provisions of subsection (a) of this
         Section 3.01, the Company or any of its subsidiaries may issue, assume
         or guarantee Indebtedness secured by a Lien which would otherwise be
         subject to the foregoing restrictions in an aggregate amount which,
         together with all other such secured borrowings of the Company and its
         subsidiaries and the Attributable Debt (as defined below) in respect of
         Sale and Lease-Back Transactions (as defined in Section 3.02) existing
         at such time (other than Sale and Lease-Back Transactions not subject
         to the limitation contained in Section 3.02), does not at the time
         exceed twenty percent (20%) of the Consolidated Net Tangible Assets of
         the Company and its subsidiaries, as shown on the audited consolidated
         balance sheet contained in the latest annual report to stockholders of
         the Company. The term "Attributable Debt" as used in this paragraph
         shall mean, as of any particular time, the present value of the
         obligation of a lessee for rental payments during the remaining term of
         any lease (including any period for which such lease has been extended
         or may, at the option of the lessor, be extended).

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                  Section 3.02. Limitation on Sale and Lease-Back Transactions.
The Company will not, nor will it permit any of its subsidiaries to, enter into
any arrangement with any Person (other than the Company) providing for the
leasing by the Company or a subsidiary of any of its properties or assets
(except for temporary leases for a term of not more than three (3) years and
except for sales and leases of model homes), which property or asset has been or
is to be sold or transferred by the Company or such subsidiary to such Person
(herein referred to as a "Sale and Lease-Back Transaction"), unless (a) the net
proceeds to the Company or such subsidiary from such sale or transfer equal or
exceed the fair value (as determined by the Board of Directors, the Chairman of
the Board, the Vice Chairman, the President or the principal financial officer
of the Company) of the property or asset so leased, (b) the Company or such
subsidiary would be entitled to incur Indebtedness secured by a Lien on the
property or asset to be leased pursuant to Section 3.01, (c) the Company shall,
and in any such case the Company covenants that it will, apply an amount equal
to the fair value (as determined by the Board of Directors, the Chairman of the
Board, the Vice Chairman, the President or the principal financial officer of
the Company) of the property or asset so leased to the retirement (other than
any mandatory retirement), within 180 days of the effective date of any such
Sale and Lease-Back Transaction, of Funded Indebtedness of the Company, (d) such
Sale and Lease-Back Transaction relates to a sale which occurred within 180 days
from the date of acquisition of such property or asset by the Company or a
subsidiary or the date of the completion of construction or commencement of full
operations on such property, whichever is later, or (e) such transaction was
consummated prior to the date of this Indenture Supplement.

                                  ARTICLE FOUR

                                   Defeasance

                  Section 4.01. Option to Effect Legal Defeasance or Covenant
Defeasance. The Company may, at any time, with respect to the Notes, elect to
have either Section 13.01 of the Indenture or Section 4.03 of this Indenture
Supplement be applied to all outstanding Notes upon compliance with the
conditions set forth in Article Thirteen of the Indenture and below in this
Article Four.

                  Section 4.02. Legal Defeasance. Upon the Company's exercise
under Section 4.01 of the option applicable to Section 13.01 of the Indenture,
the Company may terminate its obligations under the Notes, the Indenture and
this Indenture Supplement by complying with the terms and conditions of Section
13.01 of the Indenture; provided, however, that the Opinion of Counsel delivered
to the Trustee will also state that either (A) the Company has received from, or
there has been published by, the Internal Revenue Service, a ruling or (B) since
the date hereof, there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the outstanding Notes will not
recognize income, gain or loss for federal income tax purposes as a result of
such defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
defeasance had not occurred.

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                  Section 4.03. Covenant Defeasance. Upon the Company's exercise
under Section 4.01 of the option applicable to this Section 4.03, the Company
shall be released from its obligations under the covenants contained in Article
Three of this Indenture Supplement with respect to the outstanding Notes on and
after the date the conditions set forth below are satisfied ("Covenant
Defeasance"), and the Notes shall thereafter be deemed not "outstanding" for the
purposes of any direction, waiver, consent or declaration or act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, such Covenant Defeasance means that, with respect
to the outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default, but, except as
specified above, the remainder of the Indenture and such Notes shall be
unaffected thereby. In addition, the Company's exercise under Section 4.01 of
the option applicable to this Section 4.03 shall not constitute an Event of
Default.

                  Section 4.04. Conditions to Covenant Defeasance. The following
shall be the conditions to the application of Section 4.03 to the outstanding
Notes:

                  (1) the Company shall irrevocably have deposited or caused to
         be deposited with the Trustee under the terms of an irrevocable trust
         agreement in form and substance satisfactory to the Trustee, as trust
         funds in trust solely for the benefit of the Holders of such Notes for
         that purpose, money or direct non-callable obligations of, or
         non-callable obligations guaranteed by, the United States of America
         for the payment of which guarantee or obligation the full faith and
         credit of the United States is pledged ("U.S. Government Obligations")
         maturing as to principal and interest in such amounts and at such times
         as are sufficient, as verified in a Certificate of a Firm of
         Independent Public Accountants, without consideration of any
         reinvestment of such interest, to pay principal of and interest on the
         outstanding Notes to maturity or redemption as the case may be,
         provided that the Trustee or any paying agent shall have been
         irrevocably instructed to apply such money or the proceeds of such U.S.
         Government Obligations to the payment of said principal and interest
         with respect to the Notes. The Company may make an irrevocable deposit
         pursuant to this Section 4.04 only if at such time the Company shall
         have delivered to the Trustee and any such paying agent an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         herein precedent to the satisfaction and discharge of this Indenture
         have been complied with and the Opinion of Counsel further states that
         the making of such deposit (i) does not contravene or violate any
         provision of any indenture, mortgage, loan agreement or other similar
         agreement known to such counsel to which the Company is a party or by
         which it or any of its property is bound, (ii) does not require
         registration by the deposit referred to above under the Investment
         Company Act of 1940, as amended, and (iii) to the effect that the
         Holders of the outstanding Notes will not recognize income, gain or
         loss for federal income tax purposes as a result of such defeasance and
         will be subject to federal income tax in the

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         same amount, in the same manner and at the same times as would have
         been the case if such defeasance had not occurred.

                  (2) Notwithstanding the foregoing paragraph, the Company's
         obligations in Sections 2.06, 2.08, 5.01, 5.02, 5.05, 6.01, 8.06, 8.10,
         13.04 and 13.05 of the Indenture shall survive until the Notes are no
         longer outstanding. Thereafter, the Company's obligations in Sections
         8.06, 13.04 and 13.05 of the Indenture shall survive.

                                  ARTICLE FIVE

                                  Miscellaneous

                  Section 5.01. Ratification of Indenture. As supplemented by
this Indenture Supplement, the Indenture is in all respects ratified and
confirmed and the Indenture as so supplemented by this Indenture Supplement
shall be read, taken and construed as one and the same instrument.

                  Section 5.02. Redemption. Notwithstanding anything contained
in the Indenture, the Company may redeem any of the Notes upon the terms and
conditions contained in the Notes directly or indirectly from or in anticipation
of money borrowed having an interest cost to the Company of less than the
interest rate applicable to the Notes.

                  Section 5.03. Conflict with Trust Indenture Act. If any
provision hereof limits, qualifies or conflicts with another provision hereof
which is required to be included in this Indenture Supplement by any of the
provisions of the Trust Indenture Act, such required provisions shall control.

                  Section 5.04. Effect of Headings. The article and section
headings herein are included for convenience only and shall not affect the
construction hereof.

                  Section 5.05. Counterparts. This Indenture Supplement may be
executed in any number of counterparts, each of which shall be an original; but
such counterparts shall together constitute but one and the same instrument.

                  Section 5.06. Severability. In case any provision of this
Indenture Supplement or in the Notes shall be found invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

                  Section 5.07. Benefits of Indenture Supplement. Nothing in
this Indenture Supplement or in the Notes, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder and the
Holders, any benefit or any legal or equitable right, remedy or claim under this
Indenture Supplement.

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                  Section 5.08. Acceptance of Trusts. The Chase Manhattan Bank
hereby accepts the trusts in this Indenture Supplement declared and provided,
upon the terms and conditions herein and in the Indenture set forth.

                  Section 5.09. Governing Law. This Indenture Supplement and
each Note issued hereunder shall be deemed to be a contract made under the laws
of the State of Texas, and for all purposes shall be construed in accordance
with the laws of said State.

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<PAGE>   12

         IN WITNESS WHEREOF, the Company and the Trustee have caused this
Indenture Supplement to be duly executed by their respective officers thereunto
duly authorized and their respective seals duly attested to be hereunto affixed
all as of the day and year first above written.

                                         CENTEX CORPORATION
[SEAL]

                                         By:  /s/ LAWRENCE ANGELILLI
                                            ------------------------------------
                                            Name: Lawrence Angelilli
                                            Title: Senior Vice President-Finance
Attest:

/s/ PAUL JOHNSTON
------------------------------------
Name: Paul Johnston
Title: Associate General Counsel and
       Assistant Secretary

                                         THE CHASE MANHATTAN BANK , as Trustee
[SEAL]
                                         By:  /s/ JOHN G. JONES
                                            ------------------------------------
                                            Name: John G. Jones
                                            Title: Vice President
Attest:

/s/ DENNIS J. ROEMLEIN
------------------------------------
Name: Dennis J. Roemlein
Title: Vice President

                                       10

<PAGE>   13

STATE OF TEXAS      )
                    )
COUNTY OF DALLAS    )

                  BEFORE ME, the undersigned authority, a Notary Public in and
for said state, on this day personally appeared Paul Johnston and Lawrence
Angelilli, known to me to be the persons and officers whose names are subscribed
to the foregoing instrument and acknowledged to me that the same was the act of
the said CENTEX CORPORATION, a Nevada corporation, and that they executed the
same as the act of said corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.

                  GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 5th day of
February, 2001.

                                                   /s/ REBECCA L. ARREDONDO
[SEAL]                                             -----------------------------
                                                   Notary Public in and for the
                                                   State of Texas

                                                   REBECCA L. ARREDONDO
                                                   -----------------------------
                                                   Printed Name of Notary Public

My commission expires:

5/10/03
-----------------------

STATE OF TEXAS      )
                    )
COUNTY OF HARRIS    )

                  BEFORE ME, the undersigned authority, a Notary Public in and
for said state, on this day personally appeared John G. Jones and Dennis J.
Roemlien, known to me to be the persons and officers whose names are subscribed
to the foregoing instrument and acknowledged to me that the same was the act of
the said THE CHASE MANHATTAN BANK, a New York banking corporation, and that they
executed the same as the act of said New York banking corporation for the
purposes and consideration therein expressed, and in the capacity therein
stated.

                  GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 5th day of
February, 2001.

                                     /s/ CASSANDRA M. EDMONDSON
                                     -------------------------------------------
                                     Notary Public in and for the State of Texas

                                     CASSANDRA M. EDMONDSON
                                     -------------------------------------------
                                     Printed Name of Notary Public

[SEAL]

My commission expires:
      3-17-03
----------------------

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                                                                       EXHIBIT A

                             [FORM OF FACE OF NOTE]

      [The following legend shall appear on the face of each global Note:

         THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO
A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES.

                  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, 55 WATER STREET, NEW
YORK, NEW YORK ("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  UNLESS AND UNTIL THIS GLOBAL NOTE IS EXCHANGED IN WHOLE OR IN
PART FOR THE INDIVIDUAL NOTES REPRESENTED HEREBY, THIS GLOBAL NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]

                                                        CUSIP No.:
                                                                  --------------

                                                        PRINCIPAL AMOUNT:
REGISTERED NO.                                             $
              ------------------                            --------------------

<PAGE>   15

CENTEX                                                               CORPORATION

___% SENIOR NOTES DUE 20__

                  Centex Corporation, a corporation duly organized and existing
under the laws of the State of Nevada (herein called the "Company," which term
includes any successor Person under the Indenture hereinafter referred to) for
value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of __________ United States Dollars on _________, 20__ and to pay
interest thereon, in such coin or currency commencing __________, 2001 and
continuing semi-annually thereafter on ______ and ______ of each year, from
__________, 2001 or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, at the rate per annum provided in the title
hereof, until the principal hereof is paid or made available for payment. The
interest so payable and punctually paid or duly provided for on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Note (or one or more predecessor Notes) is registered at the close of
business on the Regular Record Date which shall be ________ or ________ (whether
or not a business day), as the case may be, next preceding such Interest Payment
Date; provided, however, that interest payable on the Maturity Date or, if
applicable, upon redemption, shall be payable to the Person to whom principal
shall be payable. Except as otherwise provided in the Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and shall be paid on the date
fixed therefor by the Company to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest to be fixed by the Company, notice whereof shall be
given to Noteholders not less than fifteen calendar days prior to such Special
Record Date.

                  The Indenture and the Notes shall be governed by, and
construed in accordance with, the laws of the State of Texas.

                  REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
NOTE SET FORTH IN FULL ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN FULL AT THIS PLACE.

                  Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof, directly or through a
duly appointed and authorized authenticating agent, by manual or facsimile
signature of an authorized signatory, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

                                       2
<PAGE>   16

                  IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed.

                                                     CENTEX CORPORATION
[SEAL]

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

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

TRUSTEE'S CERTIFICATE
     OF AUTHENTICATION

This is one of the Senior Debt Securities referred to in the within-mentioned
Indenture.

THE CHASE MANHATTAN BANK, as Trustee

By:
   ---------------------------------
     Authorized Signatory

                                       3
<PAGE>   17

[FORM OF REVERSE OF NOTE]

                  This Note is one of a duly authorized issue of Senior Debt
Securities of the Company designated as its ___% Senior Notes due 20__ (herein
called the "Notes"), issued and to be issued in one or more Series under an
Indenture dated as of October 1, 1998 (herein called the "Indenture") between
the Company and The Chase Manhattan Bank, as Trustee (herein called the
"Trustee," which term includes any successor Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto (including the Indenture
Supplement dated as of _______ ___, 2001 which authorizes the Notes) reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Notes, and of the terms upon which the Notes are, and are to be,
authenticated and delivered.

                  All terms used in this Note which are defined in the Indenture
or in any indenture supplemental thereto but are not defined in this Note shall
have the meanings assigned to them in the Indenture or in any indenture
supplemental thereto.

                  The indebtedness evidenced by the Notes is, to the extent and
in the manner provided in the Indenture and the Indenture Supplement, senior in
right of payment to certain indebtedness of the Company.

                  Interest on this Note will be payable on the Interest Payment
Date or Interest Payment Dates as specified on the face hereof and, in either
case, on the Maturity Date. Unless otherwise specified on the face hereof,
payments on this Note with respect to any particular Interest Payment Date or
the Maturity Date will include interest accrued from and including
______________, 2001, or from and including the most recent Interest Payment
Date to which interest has been paid or duly provided for, to but excluding the
particular Interest Payment Date or the Maturity Date. Interest on this Note
will be computed and paid on the basis of a 360-day year of twelve 30-day
months.

                  If an Interest Payment Date or the Maturity Date for this Note
falls on a day that is not a business day, payment of principal, premium, if
any, and interest to be made on such day with respect to this Note will be made
on the next succeeding day that is a business day with the same force and effect
as if made on the due date, and no additional interest will be payable on the
date of payment for the period from and after the due date as a result of such
delayed payment.

                  The Notes will be redeemable, in whole or in part, from time
to time at the option of the Company, on any date (a "Redemption Date") at a
redemption price equal to the greater of (a) 100% of the principal amount of the
Notes to be redeemed and (b) the sum of the present values of the Remaining
Scheduled Payments (as hereinafter defined) of principal and interest thereon
(exclusive of interest accrued to such Redemption Date) discounted to such
Redemption Date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate (as hereinafter defined) plus ___
basis points, plus accrued and unpaid interest on the principal amount being
redeemed to such Redemption Date; provided, however, that installments of
interest on the Notes that are due and payable on an Interest Payment Date
falling on or prior to the relevant Redemption Date shall be payable to the
Holders of such Notes,

                                       4
<PAGE>   18

registered as such at the close of business on the relevant Regular Record Date
or Special Record Date, as the case may be, according to their terms and the
provisions of the Indenture.

                  "Comparable Treasury Issue" means the United States Treasury
security selected by the Independent Investment Banker (as hereinafter defined)
as having a maturity comparable to the remaining term of the Notes to be
redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of the Notes.

                  "Comparable Treasury Price" means, with respect to any
Redemption Date, (1) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third business day preceding such Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (2) if such release (or any successor release) is not
published or does not contain such prices on such business day, (A) the average
of the Reference Treasury Dealer Quotations (as hereinafter defined) for such
Redemption Date, after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (B) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Quotations.

                  "Independent Investment Banker" means Salomon Smith Barney
Inc.

                  "Reference Treasury Dealer" means Salomon Smith Barney Inc.,
Banc of America Securities LLC or UBS Warburg LLC and their respective
successors and, at the option of the Company, other primary U.S. government
securities dealers in New York City selected by the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
the Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding such Redemption Date.

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

                  "Treasury Rate" means, with respect to any Redemption Date for
the Notes, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Redemption Date.

                  Notice of any redemption by the Company will be mailed at
least 30 days but not more than 60 days before any Redemption Date to each
Holder of Notes to be redeemed. If less

                                       5
<PAGE>   19

than all the Notes are to be redeemed at the option of the Company, the Trustee
shall select the Notes to be redeemed in whole or in part by random lot.

                  This Note is not subject to a sinking fund. Holders of Notes
will not be permitted to require the Company to redeem or repurchase the Notes
at their option.

                  In case an Event of Default shall have occurred and be
continuing with respect to the Notes, the principal hereof may be declared, and
upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture. The Indenture
provides that in certain events such declaration and its consequences may be
waived by the Holders of a majority in aggregate principal amount of the Notes
then outstanding. An Event of Default with respect to the Senior Debt Security
of any other Series issued under the Indenture, including the failure to make
any payment of principal or interest with respect thereto when and as due, will
not necessarily be an Event of Default with respect to the Notes.

                  The Indenture, as supplemented by the Indenture Supplement
relating to the Notes, contains provisions permitting the Company and the
Trustee, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Notes at the time outstanding, evidenced as in
the Indenture provided, to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or modifying in any manner the rights
of the Holders of the Notes; provided, however, that no such supplemental
indenture shall (i) extend the fixed maturity of any Notes, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of
interest thereon, or reduce any premium payable on the redemption thereof,
without the consent of the Holder of each Note so affected, or (ii) reduce the
aforesaid percentage of Notes, the consent of the Holders of which is required
for any such supplemental indenture, without the consent of the Holders of all
Notes then outstanding. The Indenture also provides that the Holders of a
majority in aggregate principal amount of the Notes at the time outstanding may
on behalf of the Holders of all the Notes waive any past default under the
Indenture and its consequences, except a default in the payment of the principal
of or premium, if any, or interest on any of the Notes. Any such consent or
waiver by the Holder of this Note (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and
owners of this Note and of any Note issued in exchange or substitution herefor,
whether or not any notation of such consent or waiver is made upon this Note.

                  As set forth in, and subject to, the provisions of the
Indenture, no Holder of any Note will have any right to institute any proceeding
with respect to the Indenture or for any remedy thereunder, unless such Holder
shall have previously given to the Trustee written notice of default in respect
of the Notes and of the continuance thereof, and unless the Holders of not less
than 25 percent in aggregate principal amount of the Notes then outstanding
shall have made written request upon the Trustee to institute such action or
proceedings in its own name as Trustee hereunder and shall have furnished to the
Trustee such reasonable indemnity as it may require, and the Trustee shall have
failed to institute such proceeding within 60 calendar days; provided, however,
that such limitations do not apply to a suit instituted by the Holder hereof for

                                       6
<PAGE>   20

the enforcement of payment of the principal of and any premium or interest on
this Note on or after the respective due dates expressed herein.

                  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable in the
Senior Debt Security Register upon surrender of this Note for registration of
transfer at the office or agency maintained by the Company for such purpose,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Senior Debt Security Registrar duly executed
by the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

                  The Notes are issued only in registered form without coupons
in denominations of $1,000 and any integral multiple thereof. A Holder may
transfer or exchange Notes in accordance with the Indenture.

                  No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

                  No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, premium, if any,
and interest on this Note at the times, places and rates, and in the coin or
currency, herein prescribed.

                  The Indenture, as supplemented by the Indenture Supplement
relating to the Notes, contains provisions for legal defeasance at any time of
the entire indebtedness of this Note or defeasance of certain restrictive
covenants with respect to this Note, in each case upon compliance by the Company
with certain conditions set forth therein.

                  The Company, the Trustee, any paying agent and any Senior Debt
Security Registrar for the Notes may deem and treat the Holder hereof as the
absolute owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon made by anyone
other than the Company or any such Senior Debt Security Registrar), for the
purpose of receiving payment hereof or on account hereof and for all other
purposes, and neither the Company nor the Trustee nor any paying agent nor any
such Senior Debt Security Registrar shall be affected by any notice to the
contrary.

                  No recourse shall be had for the payment of the principal of,
or premium, if any, or interest on, this Note, or for any claim based hereon or
otherwise in respect hereof, or based on or in respect of the Indenture or any
indenture supplemental thereto, against any incorporator, stockholder, officer
or director, as such, past, present or future, of the Company or of any
successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

                                       7
<PAGE>   21

 ABBREVIATIONS

                  The following abbreviations, when used in the inscription of
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<S>                           <C>    <C>
        TEN COM               =      as tenants in common
        TEN ENT               =      as tenants by the entireties
        JT TEN                =      as joint tenants with right of
                                     survivorship and not as tenants in common
        UNIF GIFT MIN ACT     =      under Uniform Gifts to Minors Act
                                     (Cust)         (Minor)
                                     State
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ----------

                  FOR VALUE RECEIVED the undersigned hereby sell(s) assign(s)
and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

------------------------------------------

------------------------------------------

Please print or typewrite name and address including postal zip code of assignee

------------------------------------------

------------------------------------------

------------------------------------------
the within Note and all rights thereunder, hereby irrevocably constituting and
appointing ________________________________________ attorney to transfer said
note on the books of the Company, with full power of substitution in the
premises.

Dated:
      ------------------------                       ---------------------------
                                                     NOTICE: The signature(s) to
                                                     this assignment must
                                                     correspond with the name(s)
                                                     as written upon the face of
                                                     the within instrument in
                                                     every particular, without
                                                     alteration or enlargement
                                                     or any change whatever. The
                                                     signature(s) must be
                                                     guaranteed by an "eligible
                                                     guarantor institution" that
                                                     is a member or participant
                                                     in the Securities Transfer
                                                     Agents Medallion Program,
                                                     the Stock Exchange
                                                     Medallion Program or the
                                                     New York Stock Exchange,
                                                     Inc. Medallion Program.

                                       8EMPLOYMENT AGREEMENT

         This  Employment  Agreement  is  entered  into as of April 1, 2000 (the
"Effective  Date"),  by and between  Travelzoo.com  Sales,  Inc.,  a  California
corporation  (the  "Company"),  with  principal  corporate  offices at 800 W. El
Camino Real, Suite 180, Mountain View, CA 94040, and Ralph Bartel,  Ph.D., whose
address is currently  800 High School Way,  Apt.  307,  Mountain  View, CA 94041
("Employee").  The Company and Employee are  collectively  referred to herein as
"the Parties."

         WHEREAS,  the Company  desires to retain  Employee  as Chief  Executive
Officer,  and Employee  desires to perform such service for the Company,  on the
terms and conditions as set forth herein;

         NOW,  THEREFORE,  in consideration of the promises and mutual covenants
herein  contained,  and other good and valuable  consideration,  the receipt and
sufficiency  of which is  hereby  acknowledged,  it is  mutually  agreed  by the
parties as follows:

         1.  Duties and Scope of Employment.

                  (a) Position.  Employee  shall be employed as Chief  Executive
         Officer.

                  (b) Duties.  During the term of Employee's employment with the
         Company,  Employee  shall devote her full time,  skill and attention to
         her  duties  and   responsibilities,   which   Employee  shall  perform
         faithfully, diligently and competently, and Employee shall use her best
         efforts to further the business of the Company.  During the term of the
         Agreement,  Employee  agrees  not  to  actively  engage  in  any  other
         employment,  occupation  or  consulting  activity  for  any  direct  or
         indirect  remuneration  without the prior approval of the Board, except
         that this provision shall not be interpreted to prohibit  Employee from
         involvement in any charitable or community  activity/organization  that
         he is currently involved in and that does not materially interfere with
         her ability to perform her duties under this Agreement.  Employee shall
         be  permitted,  to the extent such  activities  do not  materially  and
         adversely  affect the ability of  Employee to fully  perform her duties
         and  responsibilities  hereunder,  to (i) manage  Employee's  personal,
         financial and legal affairs,  (ii) serve on civic or charitable  boards
         or  committees,  and (iii) with the  consent of the Board of  Directors
         (which consent shall not be unreasonably  withheld),  serve as a member
         of the board of directors of any noncompeting business.

         2.  Nature of Employment.  Employee  agrees not to leave or discontinue
her  employment  with the  Company  during  the first  three  (3)  months of her
employment.  Similarly,  the Company agrees not to terminate Employee during the
first  three (3)  months of  employment  with the  Company,  except for cause as
defined in paragraph 2(b). After the three month period has ended, Employee will
become an "at-will" employee which means that the employment relationship may be
terminated  at any time,  with or  without  cause,  at the  option of either the
Company or Employee, upon two weeks written notice to the other party.

                  (a)  Termination  by Company  without  Cause.  If  Employee is
terminated by the Company without Cause (as defined in paragraph 2(b)) after the
initial  three  months of  employment,  Employee  shall  receive  her salary and
benefits earned through the date of termination.

                  (b)  Termination  for Cause.  If  Employee is  terminated  for
"Cause" as defined herein at any time, Employee will receive only payment of her
salary and  benefits  through  the date of  termination.  For  purposes  of this
Agreement,  "Cause" is  defined  as (i) gross  misconduct  by  Employee  that is
materially injurious to the Company's business;  (ii) the commission by Employee
of a felony;  or (3) the willful  failure or refusal of the Employee,  following
receipt of an explicit  directive from the Company,  to comply with the material
terms of this Agreement.

         3.   Compensation and Fringe Benefits

                  (a) Base  Salary.  Employee  will receive a base salary at the
annualized  rate  of  $192,000.00  (the  "Base  Salary"),  which  shall  be paid
periodically in accordance with normal Company payroll  practices and subject to
the usual and applicable required  withholding.  Employee understands and agrees
that neither her job performance nor promotions,  commendations,  bonuses or the
like  from  the  Company  give  rise to or in any way  serve  as the  basis  for
modification,  amendment,  or extension,  by implication  or otherwise,  of this
Agreement.

                  (b) Productivity  Bonus Plan. In  addition to the Base Salary,
Employee shall participate in the company's  Productivity  Bonus Plan. A copy of
the bonus plan is attached.

<PAGE>

                  (c) Vacation and Holiday Pay. Employee shall receive two weeks
of paid  vacation  per year,  which  accrues  over the  course  of the year.  In
addition, the Company provides eight (8) paid holidays each year, along with two
(2) "floating holidays" which can be used by Employee at any time.

                  (d) Health  Insurance.  The Company  shall pay  Employee up to
$600.00  per month  (upon  submission  of receipts or other proof of payment) as
reimbursement for the costs of Employee's health insurance.

                  (e) Other  Benefits.  Employee will be entitled to participate
in or receive such  benefits  under the  Company's  employee  benefit  plans and
policies and such other  benefits  which may be made available as in effect from
time to time and as are provided to similarly situated employees of the Company,
subject in each case to the  generally  applicable  terms and  conditions of the
plans and policies in question.

         4. Expenses.  The Company will pay or reimburse Employee for reasonable
travel,  entertainment or other expenses incurred by Employee in the furtherance
of or in  connection  with the  performance  of Employee's  duties  hereunder in
accordance with the Company's established policies.

         5. Certain Covenants.

                  (a) Intellectual Property Rights.

                      (i)  Employee  agrees  that the  Company  will be the sole
                  owner of any and all of  Employee's  "Discoveries"  and  "Work
                  Product,"  hereinafter  defined,  made  during the term of her
                  employment  with  the  Company,   whether   pursuant  to  this
                  Agreement  or  otherwise.  For  purposes  of  this  Agreement,
                  "Discoveries" means all inventions, discoveries, improvements,
                  and copyrightable works (including,  without  limitation,  any
                  information  relating  to  the  Company's  software  products,
                  source  code,  know-how,   processes,   designs,   algorithms,
                  computer   programs  and   routines,   formulae,   techniques,
                  developments  or  experimental  work,   work-in-progress,   or
                  business  trade  secrets)  made or  conceived  or  reduced  to
                  practice by Employee  during the term of her employment by the
                  Company,    whether   or   not   potentially   patentable   or
                  copyrightable in the United States or elsewhere.  For purposes
                  of this  Agreement,  "Work  Product"  means  any and all  work
                  product relating to Discoveries.

                      (ii) Employee shall  promptly  disclose to the Company all
                  Discoveries  and  Work  Product.  All  such  disclosures  must
                  include  complete  and  accurate  copies of all  source  code,
                  object code or machine-readable  copies,  documentation,  work
                  notes, flow-charts, diagrams, test data, reports, samples, and
                  other tangible  evidence or results  (collectively,  "Tangible
                  Embodiments")  of  such  Discoveries  or  Work  Product.   All
                  Tangible  Embodiments of any  Discoveries or Work Project will
                  be deemed to have been  assigned to the Company as a result of
                  the act of expressing any Discovery or Work Product therein.

                      (iii) Employee  hereby assigns and agrees to assign to the
                  Company  all of her  interest  in any  country  in any and all
                  Discoveries  and Work Product,  whether such  interest  arises
                  under   patent   law,   copyright   law,   trade-secret   law,
                  semiconductor  chip  protection  law,  or  otherwise.  Without
                  limiting the  generality of the preceding  sentence,  Employee
                  hereby  authorizes the Company to make any desired  changes to
                  any part of any Discovery or Work Product,  to combine it with
                  other  materials  in  any  manner  desired,  and  to  withhold
                  Employee's identity in connection with any distribution or use
                  thereof alone or in  combination  with other  materials.  This
                  assignment   and   assignment   obligation   applies   to  all
                  Discoveries  and  Work  Product   arising  during   Employee's
                  employment  with the  Company (or its  predecessors),  whether
                  pursuant to this Agreement or otherwise.  Employee's agreement
                  to assign  to the  Company  any of her  rights as set forth in
                  this Section  5(a)(iii)  shall not apply to any invention that
                  qualifies fully under the provisions of California  Labor Code
                  Section 2870, where no equipment,  supplies, facility or trade
                  secret  information  of the  Company  was  used  and  that was
                  developed entirely upon Employee's own time, and (i) that does
                  not relate to Company  business or to the Company's  actual or
                  anticipated  research  or  development,  or (ii) that does not
                  result from any work performed by Employee for the Company.

                                        2
<PAGE>

                      (iv)  At  the  request  of  the  Company,  Employee  shall
                  promptly and without additional  compensation  execute any and
                  all patent applications,  copyright registration applications,
                  waivers of moral  rights,  assignments,  or other  instruments
                  that the Company deems  necessary or  appropriate to apply for
                  or  obtain  Letters Patent of the United States or any foreign
                  country,  copyright  registrations or otherwise to protect the
                  Company's  interest in such  Discovery and Work  Product,  the
                  expenses  for  which  will be borne by the  Company.  Employee
                  hereby irrevocably designates and appoints the Company and its
                  duly  authorized   officers  and  agents  as  her  agents  and
                  attorneys-in-fact  to, if the Company is unable for any reason
                  to secure  Employee's  signature  to any lawful and  necessary
                  document  required or  appropriate to apply for or execute any
                  patent application, copyright registration application, waiver
                  of moral rights, or other similar document with respect to any
                  Discovery  and Work Product  (including,  without  limitation,
                  renewals,    extensions,    continuations,    divisions,    or
                  continuations  in part),  (i) act for and in her behalf,  (ii)
                  execute  and file any such  document,  and  (iii) do all other
                  lawfully permitted acts to further the prosecution of the same
                  legal force and effect as if executed by him; this designation
                  and appointment  constitutes an irrevocable  power of attorney
                  coupled with an interest.

                      (v) To the  extent  that  any  Discovery  or Work  Product
                  constitutes  copyrightable  or similar  subject matter that is
                  eligible  to be treated as a "work made for hire" or as having
                  similar  status in the United States or elsewhere,  it will be
                  so deemed.  This provision does not alter or limit  Employee's
                  other obligations to assign intellectual property rights under
                  this Agreement.

                      (vi) The obligations of Employee set forth in this Section
                  5 (including,  without limitation, the assignment obligations)
                  will continue beyond the termination of Employee's  employment
                  with respect to Discoveries and Work Product conceived or made
                  by Employee alone or in concert with others during  Employee's
                  employment  with  the  Company,   whether   pursuant  to  this
                  Agreement or otherwise. Those obligations will be binding upon
                  Employee,   her  assignees  permitted  under  this  Agreement,
                  executors, administrators, and other representatives.

                  (b) Exposure to Proprietary Information.

                      (i) As used in this Agreement,  "Proprietary  Information"
                  means all  information of a business or technical  nature that
                  relates to the  Company  including,  without  limitation,  all
                  information about software products whether currently released
                  or in development, all inventions, discoveries,  improvements,
                  copyrightable work, source code, know-how, processes, designs,
                  algorithms,  computer  programs  and  routines,  formulae  and
                  techniques,  and any information regarding the business of any
                  customer or  supplier of the Company or any other  information
                  that  the   Company   is   required   to  keep   confidential.
                  Notwithstanding the preceding sentence,  the term "Proprietary
                  Information"  does not include  information that is or becomes
                  publicly   available   through  no  fault  of   Employee,   or
                  information that Employee learned prior to the Effective Date.

                      (ii)  In   recognition   of  the  special  nature  of  her
                  employment under this Agreement, including  her special access
                  to the Proprietary  Information,  and in  consideration of her
                  employment pursuant to this Agreement,  Employee agrees to the
                  covenants  and  restrictions  set  forth in  Section 5 of this
                  Agreement.

                  (c) Use of Proprietary Information; Restrictive Covenants.

                      (i) Employee acknowledges that the Proprietary Information
                  constitutes  a protectible  business  interest of the Company,
                  and   covenants  and  agrees  that  during  the  term  of  her
                  employment,  whether under this  Agreement or  otherwise,  and
                  after  the  termination  of  such  employment,  he  will  not,
                  directly or indirectly,  disclose,  furnish, make available or
                  utilize any of the Proprietary Information,  other than in the
                  proper performance of her duties for the Company.

                                       3
<PAGE>

                      (ii) Employee will not,  during the term of this Agreement
                  or,   solely  with   respect  to  clauses  2  and  3  of  this
                  subparagraph  (ii), for a period of one year  thereafter  (the
                  "Restricted  Period"),  anywhere within the United States (the
                  "Restricted Territory"), directly or indirectly (whether as an
                  owner,  partner,   shareholder,   agent,  officer,   director,
                  employee, independent contractor, consultant, or otherwise):

                           1. perform  services  for, or engage in, any business
                      that  develops or sells  products  or  services  which are
                      competitive   with  any  products  or  services   sold  or
                      developed  by the Company for which  Employee has provided
                      any  assistance  in  planning,   development,   marketing,
                      training,  support,  or  maintenance  during the period of
                      Employee's employment with the Company (the "Products");

                           2.  except  on  behalf of the  Company,  solicit  any
                      person or entity  who is,  or was at any time  during  the
                      twelve-month  period  immediately prior to the termination
                      of Employee's  employment with the Company,  a customer of
                      the Company for the sale of the Products or any product or
                      service  of a type  then  sold by the  Company  for  which
                      Employee provided any assistance in planning, development,
                      marketing, training, support, or maintenance; or

                           3. solicit for  employment  any person who is, or was
                      at any time  during the  twelve-month  period  immediately
                      prior to the termination of Employee's employment with the
                      Company, an employee of the Company.

                  (d) Scope/Severability.  The  Parties  acknowledge   that  the
business of the Company is and will be national and  international  in scope and
thus the covenants in this Section 5 would be  particularly  ineffective  if the
covenants  were to be  limited  to a  particular  geographic  area of the United
States. If any court of competent  jurisdiction at any time deems the Restricted
Period unreasonably lengthy, or the Restricted Territory unreasonably extensive,
or any of the covenants set forth in this Section 5 not fully  enforceable,  the
other  provisions  of this  Section  5,  and this  Agreement  in  general,  will
nevertheless  stand and to the full extent  consistent with law continue in full
force and effect,  and it is the  intention  and desire of the parties  that the
court treat any provisions of this Agreement which are not fully  enforceable as
having been modified to the extent deemed  necessary by the court to render them
reasonable and  enforceable  and that the court enforce them to such extent (for
example,  that  the  Restricted  Period  be  deemed  to be  the  longest  period
permissible  by law,  but not in excess of the  length  provided  for in Section
5(c), and the Restricted  Territory be deemed to comprise the largest  territory
permissible by law under the circumstances).

                  (e) Return of Company  Materials  upon  Termination.  Employee
acknowledges that all records, documents, and Tangible Embodiments containing or
of Proprietary Information prepared by Employee or coming into her possession by
virtue of her  employment by the Company are and will remain the property of the
Company.  Upon  termination of her employment  with the Company,  Employee shall
immediately  return to the  Company  all such  items in her  possession  and all
copies of such items.

         6. Equitable Remedies.

            (a)  Employee  acknowledges  and  agrees  that  the  agreements  and
covenants set forth in Sections  5(a),  (b), (c), (d) and (e) are reasonable and
necessary  for  the  protection  of  the  Company's  business  interests,   that
irreparable  injury will result to the Company if Employee  breaches  any of the
terms  of said  covenants,  and  that  in the  event  of  Employee's  actual  or
threatened  breach of any such  covenants,  the  Company  will have no  adequate
remedy at law. Employee  accordingly  agrees that, in the event of any actual or
threatened breach by him of any of said covenants,  the Company will be entitled
to immediate injunctive and other equitable relief, without bond and without the
necessity of showing actual monetary damages.  Nothing in this Section 6 will be
construed as prohibiting the Company from pursuing any other remedies  available
to it for such  breach or  threatened  breach,  including  the  recovery  of any
damages that it is able to prove.

                                       4
<PAGE>

            (b) Each of the  covenants in Sections  5(a),  (b), (c), (d) and (e)
will be construed as independent of any other  covenants or other  provisions of
this Agreement.

            (c) In the  event  of any  judicial  determination  that  any of the
covenants in Sections 5(a), (b), (c), (d), and (e) are not fully enforceable, it
is the intention  and desire of the parties that the court treat said  covenants
as having been  modified to the extent  deemed  necessary by the court to render
them reasonable and enforceable, and that the court enforce them to such extent.

         7. Assignment.  This  Agreement  shall be binding upon and inure to the
benefit of (a) the heirs,  executors and legal  representatives of Employee upon
Employee's death and (b) any successor of the Company. Any such successor of the
Company  shall be deemed  substituted  for the  Company  under the terms of this
Agreement  for all  purposes.  As used  herein,  "successor"  shall  include any
person, firm, corporation or other business entity which at any time, whether by
purchase,  merger  or  otherwise,  directly  or  indirectly,   acquires  all  or
substantially  all of the assets or business of the Company.  None of the rights
of  Employee  to  receive  any form of  compensation  payable  pursuant  to this
Agreement  shall be assignable or  transferable  except  through a  testamentary
disposition  or by the laws of  descent.  Any  attempted  assignment,  transfer,
conveyance or other disposition (other than as aforesaid) of any interest in the
rights of Employee to receive any form of  compensation  hereunder shall be null
and void.

            8. Notices. All notices,  requests, demands and other communications
called for hereunder  shall be in writing and shall be deemed given if delivered
personally, one (1) day after mailing via Federal Express overnight or a similar
overnight  delivery service,  or three (3) days after being mailed by registered
or  certified  mail,  return  receipt  requested,  prepaid and  addressed to the
parties or their  successors  in interest at the addresses  listed above,  or at
such other  addresses  as the parties  may  designate  by written  notice in the
manner aforesaid.

            9.  Severability.  In the event that any provision hereof becomes or
is declared by a court of competent jurisdiction to be illegal, unenforceable or
void,  this  Agreement  shall  continue  in full force and effect  without  said
provision.

            10.  Entire  Agreement.   This  Agreement,   and  the  Stock  Option
Agreement,  represent the entire agreement and understanding between the Company
and Employee concerning Employee's employment relationship with the Company, and
supersede in their  entirety  any and all prior  agreements  and  understandings
concerning Employee's employment relationship with the Company.

            11. Resolution of Disputes Regarding Employment.

                (a) The  Parties  agree  to  submit any  dispute or  controversy
arising  out of,  relating  to, or in  connection  with this  Agreement,  or the
interpretation,  validity,  construction,  performance,  breach,  or termination
thereof, to mediation.  The Parties shall mutually select the mediator and shall
equally pay for the costs of the mediator.

                (a) If  and  only  if  a  mediation  is  unsuccessful,  and  the
dispute or controversy is not resolved within 30 days after a mediation,  either
party may submit the matter to binding  arbitration,  to the extent permitted by
law, to be held in or near San Jose,  California in accordance with the National
Rules for the  Resolution of Employment  Disputes then in effect of the American
Arbitration  Association (the "Rules").  The arbitrator may grant injunctions or
other relief in such  dispute or  controversy.  The  decision of the  arbitrator
shall be final,  conclusive  and  binding  on the  parties  to the  arbitration.
Judgment  may be  entered  on the  arbitrator's  decision  in any  court  having
jurisdiction.  The  arbitrator  may  award  the  prevailing  party  in any  such
attorneys' fees and costs incurred in connection therewith.

                  (b) The arbitrator shall apply California law to the merits of
any dispute or claim,  without  reference to rules of conflict of law.  Employee
hereby expressly consents to the personal  jurisdiction of the state and federal
courts  located in Santa Clara County,  California  or the Northern  District of
California  for any  action  or  proceeding  arising  from or  relating  to this
Agreement   and/or  relating  to  any  arbitration  in  which  the  Parties  are
participants.

                  (c) Employee understands that nothing in this Section modifies
Employee's  at-will  status.  Either the Company or Employee can  terminate  the
employment  relationship at any time, with or without cause, subject only to the
restrictions set forth in Section 2 above.

                  (d) Employee  has  read  and  understands  Section  11,  which
discusses  arbitration.  employee  understands  that by signing this  agreement,
employee  agrees to submit any future claims arising out of,  relating to, or in

                                       5
<PAGE>

connection with this agreement, or the interpretation,  validity,  construction,
performance, breach, or termination thereof to binding arbitration to the extent
permitted  by law,  and that this  arbitration  clause  constitutes  a waiver of
employee's  right to a jury trial and relates to the  resolution of all disputes
relating to all aspects of the employer/employee relationship, including but not
limited to, the following claims:

                           (i) Any and all  claims  for  wrongful  discharge  of
employment; breach of contract, both express and implied; breach of the covenant
of good  faith  and  fair  dealing,  both  express  and  implied;  negligent  or
intentional   infliction  of  emotional   distress;   negligent  or  intentional
misrepresentation;  negligent  or  intentional  interference  with  contract  or
prospective economic advantage; and defamation;

                           (ii) Any and all claims for  violation of any federal
state or municipal  statute,  including,  but not limited to the California Fair
Employment and Housing Act, the Civil Rights Act of 1991, the Age Discrimination
in Employment Act of 1967, the Americans with  Disabilities Act of 1990, and the
Fair Labor Standards Act;

                           (iii)  Any and all  claims  arising  out of any other
laws and regulations relating to employment or employment discrimination.

                  (e)  The  Parties   may  apply  to  any  court  of   competent
jurisdiction for a temporary restraining order, preliminary injunction, or other
interim or conservatory relief, as necessary, without breach of this arbitration
agreement and without abridgment of the powers of the arbitrator.

         12. No Oral Modification, Cancellation or Discharge. This Agreement may
only be amended,  canceled or discharged  in writing  signed by Employee and the
Company.

         13.  Governing  Law. This  Agreement  shall be governed by the internal
substantive laws, but not the choice of law rules, of the State of California.

         14.   Acknowledgment.   Employee  acknowledges  that  he  has  had  the
opportunity  to discuss  this  matter  with and obtain  advice  from her private
attorney,  has  had  sufficient  time  to,  and has  carefully  read  and  fully
understands  all  the  provisions  of  this  Agreement,  and  is  knowingly  and
voluntarily entering into this Agreement,

         IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
respective dates set forth below.

                                       COMPANY:

                                       TRAVELZOO.COM SALES, INC.

                                       By:  /s/ R. Bartel
                                          --------------------------------------

                                       Title:  President

                                       Date:   March 31, 2000

                                       EMPLOYEE:

                                        /s/ R. Bartel
                                       -----------------------------------------
                                       Ralph Bartel

                                       Date:   3/31/2000
                                             -----------------------------------

                                        6

<PAGE>

                               TRAVELZOO.COM SALES

                             PRODUCTIVITY BONUS PLAN

                                 MARCH 31, 2000

HOW THE PLAN WORKS

We are pleased to present you with this information  covering the details of how
Travelzoo.com  Sales, Inc. (including its successors,  the "Company") will share
increased productivity with its employees through a Productivity Bonus Plan (the
"Plan") that will become effective as of March 31, 2000. Accordingly,  the first
Productivity  Bonuses will be paid with respect to the period commencing January
1, 2000 and ending March 31, 2000.

The Productivity Bonus will consist of a quarterly bonus, which will be based on
the "net profit"  before  taxes of the  Company.  The bonus amount will be 5% of
such net profit  before taxes and will be  distributed  equally to all full-time
employees  at the end of the  second  month  following  a fiscal  quarter of the
Company.

For  purposes  of this Plan,  "net  profit" is defined as  revenues  from banner
advertising,  display advertising,  classifieds advertising and commissions from
advertisers  for the  quarter  less (i) sales and  marketing  expenses  for such
period, (ii) research and development expenses for such period and (iii) general
and  administrative  expenses for such period,  all as  determined in conformity
with generally accepted accounting principles consistently applied.

Because the Productivity Bonus will be paid in cash, it is taxable. Accordingly,
appropriate  withholdings  will be made from each  payment  of the  Productivity
Bonus to Company employees. All bonus payments supplement and are in addition to
an  employee's  salary  and  any  contributions  under  a  tax  deferred  401(k)
retirement or other similar plan.

WHO IS ELIGIBLE

All full time  employees of the Company are eligible to  participate in the Plan
and to receive a Productivity Bonus. Because the bonus is based on the Company's
productivity  through  the end of each  quarter,  an  employee  must be actively
employed on each day of the quarter  comprising the bonus computation  period in
order to be eligible to participate in the bonus.  There will be no proration of
the  bonus  distribution  for  employees  who  terminate  before  the end of the
applicable bonus period.

ADMINISTRATION AND DEFINITIONS

The Company will  administer the Plan.  The  calculation of the bonus amount and
all other calculations  relating to the Plan shall be performed by the Company's
accounting  department.   All  matters  pertaining  to  the  administration  and

<PAGE>

interpretation  of the  Plan  shall be  determined  by the  Company  in its sole
discretion,  and the Company's determinations shall be final and binding for all
purposes.

CHANGES OR TERMINATION OF THE PLAN

The Company reserves the right to modify, add to or discontinue the Productivity
Bonus or the Plan, or its interpretation of any provision of the Plan, from time
to time and at any time in its sole discretion;  provided,  however, that in the
event the Plan is  terminated,  employees  shall be  promptly  advised and shall
receive all bonus  amounts  earned  prior to said  termination  in due course in
accordance with the terms of the Plan previously in effect.

NO GUARANTEE OF EMPLOYMENT

The Plan is not a contract of employment and does not guarantee  continuation of
employment for any specified  period of time.  Employment with the Company is at
the mutual consent of the employee and the Company and is subject to termination
without cause or notice at the option of either party.

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