Document:

exv10w25w04

 

Exhibit 10.25.4

BUSINESS OBJECTS S.A.

2001 STOCK INCENTIVE PLAN

Adopted on February 6, 2001 and amended on August 26, 2003, on December 11, 2003, on June 10,

2004, on August 20, 2004 and on August 12, 2005

UNOFFICIAL TRANSLATION INTO ENGLISH FOR CONVENIENCE PURPOSES

     In conformity with the provisions of Articles L 225-177 et. seq. of the Law as defined herein,
Business Objects S.A. adopted a plan for the grant to Beneficiaries (defined below) of options
giving right by exercise to subscribe newly-issued shares of the Company or purchase existing
shares of the Company. In furtherance of such decision the board of directors has adopted the
Business Objects S.A. 2001 Stock Option Plan which was approved by the shareholders of the Company
on February 6, 2001.

     Minor amendments to the Plan were made in connection with the adoption of the Subsidiary Stock
Incentive Sub-Plan which were approved by the shareholders of the Company on June 10, 2004,
including renaming the Plan as the “2001 Stock Incentive Plan.”

     The terms and conditions of the Plan are set out below.

1. PURPOSES OF THE PLAN

     The purposes of this Plan are to attract and retain the best available personnel for positions
of substantial responsibility, to provide additional incentive to Beneficiaries and to promote the
success of the Company’s business.

     Options granted under the Plan to U.S. Beneficiaries are intended to be Incentive Stock
Options or Non-Statutory Stock Options, as determined by the Administrator at the time of grant of
an Option, and shall comply in all respects with Applicable U.S. Laws in order that they may
benefit from available fiscal advantages.

2. DEFINITIONS

     As used herein, the following definitions shall apply:

     (a) “Share” means an ordinary share of the Company.

     (b) “Director” means a member of the Board.

     (c) “ADR” means an American Depositary Receipt evidencing an American Depositary Share
corresponding to one Share.

     (d) “Shareholder Authorization” means the authorization given by the shareholders of the
Company in an extraordinary general meeting held on February 6, 2001 permitting the Board to grant
Options.

     (e) “Optionee” means a Beneficiary who holds at least one outstanding Option.

     (f) “Change in Control” shall mean, and shall be deemed to have occurred if:

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          (i) any person or entity, other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company acting in such capacity or a corporation owned directly or
indirectly by the shareholders of the Company in substantially the same proportions as their
ownership of stock of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of
the total voting power represented by the Company’s then outstanding voting securities, or

          (ii) the shareholders of the Company approve a merger or consolidation of the Company with any
other corporation other than a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) more than 50% of
the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or

          (iii) the shareholders of the Company approve a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of (in one transaction or a series of
related transactions) all or substantially all of the Company’s assets to an entity other than an
Affiliated Company.

     (g) “Code” means the United States Internal Revenue Code of 1986, as amended.

     (h) “Board” means the board of directors of the Company.

     (i) “Option Agreement” means a written agreement between the Company and an Optionee
evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject
to the terms and conditions of the Plan.

     (j) “Notice of Grant” means a written notice evidencing certain terms and conditions of an
individual Option grant, subject to the terms and conditions of the Plan. The Notice of Grant is
part of the Option Agreement.

     (k) “Beneficiary” means the Chairman of the Board (Président du Conseil d’administration), the
Managing director (Directeur général), the Deputy managing directors (Directeurs Généraux
Délégués), and any Officers or other person employed by the Company or any Affiliated Company.
Neither service as a Director nor payment of a director’s fee by the Company or an Affiliated
Company shall be sufficient to constitute “employment” by the Company or an Affiliated Company.

     (l) “U.S. Beneficiary” means a Beneficiary of the Company or an Affiliated Company residing in
the United States or otherwise subject to United States’ laws and regulations.

     (m) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     (n) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as
defined in Section 424(f) of the Code.

     (o) “Administrator” means the Board, as shall administer the Plan in accordance with Section 4
of the Plan, it being specified that pursuant to Article 11.3 of the by-laws of the Company, any
board member who is eligible to receive Options is prohibited from voting on decisions to grant
Options if such board member is the Beneficiary of such Options;

     (p) “Disability” means total and permanent disability.

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     (q) “Incentive Stock Option” means any option granted only to U.S. Beneficiaries that intends
to qualify as an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

     (r) “Law” means the French Commercial Code.

     (s) “Applicable U.S. Laws” means the legal requirements relating to the administration of
stock option plans under state corporate and securities laws and the Code in force in the United
States of America.

     (t) “Non-statutory Stock Option” means an Option which does not qualify as an Incentive Stock
Option.

     (u) “Officer” means a Beneficiary who is an officer of an Affiliated Company, which is not
incorporated under laws of France, within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder.

     (v) “Option” means a stock option granted pursuant to the Plan as adjusted from time to time
in accordance with Section 11 of the Plan.

     (w) “Plan” means this 2001 Stock Incentive Plan, as amended from time to time.

     (x) “Option Exchange Program” means a program whereby outstanding Options are surrendered in
exchange for options with a lower exercise price.

     (y) “Continuous Status as a Beneficiary” means that the employment relationship with the
Company or any Affiliated Company is not interrupted or terminated. Continuous Status as a
Beneficiary shall not be considered interrupted in the case of (i) any leave of absence approved by
the Company or (ii) transfers between locations of the Company or between the Company or any
Affiliated Company, or any successor. A leave of absence approved by the Company shall include
sick leave, military leave, or any other personal leave. For purposes of U.S. Beneficiaries and
Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract, including Company policies. If
reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on
the 91st day of such leave any Incentive Stock Option held by a U.S. Beneficiary shall
cease to be treated as an Incentive Stock Option and shall be treated for U.S. tax purposes as a
Non-statutory Stock Option.

     (z) “Company” means Business Objects S.A., a corporation organized under the laws of the
Republic of France.

     (aa) “Affiliated Company” means a company related to the Company in accordance with the
provisions set forth in L 225-180 of the Law. As a reminder, as of the day of the adoption of the
Plan:

	 	-	 	companies of which at least one tenth (1/10) of the share capital or voting
rights is held directly or indirectly by the Company;
	 
	 	-	 	companies which own directly or indirectly at least one tenth (1/10) of the
share capital or voting rights of the Company; and
	 
	 	-	 	companies of which at least fifty percent (50%) of the share capital or
voting rights is held directly or indirectly by a company which owns directly or
indirectly at least fifty percent (50%) of the share capital or voting rights of the
Company.

     (bb) “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in
Section 424(e) of the Code.

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     (cc) “Fair Market Value” The Fair Market Value shall be the closing sale price in euros for
such Share (or the closing bid, if no sales were reported) as quoted on the Eurolist by Euronext
TM or on such other Regulated Market on which the Shares are traded, on the last market
trading day prior to the day of grant, as reported by Euronext Paris S.A., or such other source as
the Administrator deems reliable. For the purpose of calculation under Section 5.1 of the Plan,
Fair Market Value shall be also the closing price (as determined here above) for a share subject to
an Incentive Stock Option;

     (dd) “Regulated Market” shall mean, as of any date, a stock exchange or system on which the
Shares are traded which is a regulated market (“marché règlementé”) under Article L. 421-1 of the
French Monetary and Financial Code.

     (ee) “Election” shall mean agreement regarding the United Kingdom National Insurance
Liability.

     (ff) “Notification Date” shall mean the date at which the Company notifies to the Optionees
through its local representative the Option Agreement and, as the case may be, its exhibits,
Election, acceptance form, information form and any other exhibit or form attached to the Option
Agreement.

3. STOCK SUBJECT TO THE PLAN AND THE SUBSIDIARY STOCK INCENTIVE SUB-PLAN

     3.1. Stocks subject to the Plan. Subject to the provisions of Section 11 of the Plan, the
maximum aggregate number of Shares which may be optioned and issued under the Plan is 6,662,729
Shares of € 0.10 nominal value each. Moreover the Board of Directors of the Company is authorized
to increase annually, on one or more occasions, the number of Shares which may be subscribed for or
purchased upon the exercise of Options, within the limit of the lowest of the following amounts:
(i) 6,500,000 Shares with a nominal value of €0.10 each, (ii) the number of Shares corresponding to
5% of the total number Shares outstanding as of June 30, (iii) any lesser amount as determined by
the Board of Directors.

     Notwithstanding the above, and pursuant to the Law, options issued and outstanding under all
option plans of the Company may not give the right to subscribe to a total number of Company’
shares in excess of one-third of the Company’s share capital.

     If an Option should expire or become unexercisable for any reason, the unsubscribed or
unpurchased Share which was subject thereto shall, unless the Plan shall have been terminated,
become available for future grant under the Plan.

     The pool of share mentioned above shall not be used for the purposed and under the Subsidiary
Stock Incentive Sub-Plan.

     3.2. Stocks subject to the Subsidiary Stock Incentive Sub-Plan. The maximum aggregate number
of Shares reserved under the Plan is 2,500,000 Shares of € 0.10 nominal value each. These Shares
in form or American Depositary Shares are held by the Business Objects Employee Benefits Sub-Plan
Trust.

4. ADMINISTRATION OF THE PLAN

4.1 Procedure. The Plan shall be administered by the Administrator.

4.2 Powers of the Administrator. Subject to the provisions of the Law, the Shareholder
Authorization, the Plan and U.S. Applicable Laws, the Administrator shall have the authority, in
its discretion:

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	 	-	 	to determine the Fair Market Value of the Shares, in accordance with Section 2(cc)
of the Plan;
	 
	 	-	 	to select the Beneficiaries to whom Options may be granted hereunder;
	 
	 	-	 	to determine whether and to what extent Options are granted hereunder;
	 
	 	-	 	to determine the number of Shares to be covered by each Option granted hereunder;
	 
	 	-	 	to approve forms of agreement for use under the Plan, if any;
	 
	 	-	 	to determine the terms and conditions, not inconsistent with the terms and
conditions of the Plan, of any Options granted hereunder. Such terms and conditions
include, but are not limited to, the exercise price, the time or times when Options
may be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or limitation
regarding any Option or the Shares relating thereto, based in each case on such
factors as the Administrator, in its sole discretion, shall determine;
	 
	 	-	 	to construe and interpret the terms of the Plan and Options granted pursuant to
the Plan;
	 
	 	-	 	to prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to stock options sub-plans established for
the purpose of qualifying for preferred tax treatment under foreign tax laws;
	 
	 	-	 	to modify or amend the conditions and terms of each Option (subject to Section
13.3 of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise provided
for in the Plan;
	 
	 	-	 	to authorize any person to execute on behalf of the Company any instrument
required to effect the grant of an Option previously granted by the Administrator;
	 
	 	-	 	to decide and institute an Option Exchange Program;
	 
	 	-	 	to determine the terms and restrictions applicable to Options, including without
limitation to limit or prohibit the exercise of an Option as well as the sale or
conversion into bearer form of Shares acquired pursuant to the exercise of an Option,
during certain periods or upon certain events which the Administrator shall determine
in its sole discretion; and
	 
	 	-	 	to make all other determinations deemed necessary or advisable for administering
the Plan.

4.3 Effect of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations shall be final and binding on all Optionees, subject to the provisions of
Article 13.3 of the Plan.

5. LIMITATIONS

5.1 In the case of U.S. Beneficiaries, each Option shall be designated in the Notice of
Grant either as an Incentive Stock Option or as a Non-Statutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market Value:

                              (i) of shares subject to an Optionee’s Incentive Stock Options granted by the Company or any
Affiliated Company, which

                              (ii) become exercisable for the first time during any calendar year (under all plans of the
Company or any Affiliated Company)

exceeds $100,000, such excess options shall be treated as Non-statutory Stock Options. For
purposes of this Section 5.1, Incentive Stock Options shall be taken into account in the order in
which they were granted, and the Fair Market Value shall be determined as of the time of the grant.

5.2 Neither the Plan nor any Option shall confer upon an Optionee any right with respect
to continuing the Optionee’s employment with the Company or any Affiliated Company, nor shall they
interfere in any way with the Optionee’s right or the Company’s or Affiliated Company’s right, as
the case may be, to terminate such employment at any time, with or without cause.

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5.3 The following limitations shall apply to grants of Options to Beneficiaries:

               (i) No Beneficiary shall be granted, in any fiscal year of the Company, Options to subscribe
or purchase more than 225,000 Shares.

               (ii) Notwithstanding the foregoing, the Company may also make additional grants of up to
450,000 Shares to newly-hired Beneficiaries.

               (iii) The foregoing limitations shall be adjusted proportionately in connection with any
change in the Company’s capitalization as described in Section 11.

               (iv) No Options may be granted to a shareholder who holds more than 10% of the Company’s share
capital at the time of grant.

5.4 Each Option granted under the Plan in respect of UK Beneficiaries, who are subject to
UK Income Tax and Social Security withholding, shall only be granted provided that the Beneficiary
enters into an Election with the Company or any Affiliated Company. The Election shall be in such
form and contain such provision as the Board shall from time to time approved and as shall have
been agreed with the Board of the Inland Revenue.

5.5 Other than as expressly provided hereunder, including Section 2(k) above, no member
of the Board of Directors shall be eligible, in this sole position, to receive an Option under the
Plan.

6. TERM OF PLAN

     The Plan is effective and Options may be granted as of February 6, 2001 the date of the Plan’s
adoption by the shareholders for the purpose of certain local laws. It shall continue in effect
until February 11, 2007 unless terminated earlier under Section 13 of the Plan.

7. TERM OF OPTION

     The term of each Option shall be stated in the Notice of Grant, as ten (10) years from the
date of grant in accordance with the Shareholder Authorization. Notwithstanding the foregoing,
Options granted to Beneficiaries of the United Kingdom Affiliated Company or Beneficiaries who are
otherwise residents of the United Kingdom or who are subject to the laws of the United Kingdom and
Options granted to Beneficiaries of the Ireland Affiliated Company or Beneficiaries who are
otherwise residents of Ireland or who are subject to the laws of Ireland shall have a term of seven
(7) years less one (1) day from the day of grant.

8. OPTION EXERCISE PRICE AND CONSIDERATION

8.1 Exercise Price

8.1.1 In the case of an Option to subscribe to new shares, the per Share exercise price
shall be determined in accordance with the following:

               (i) In the case of an Incentive Stock Option granted to a U.S. Beneficiary who, at the time
the Incentive Stock Option is granted, owns stock representing more than 10% of the voting rights
of all classes of stock of the Company or any Parent or Subsidiary, to the extent such U.S.
Beneficiary is permitted by the Law to receive Incentive Stock Option grants, the per Share
exercise price shall be no less than the higher of (a) 110% of the Fair Market Value per Share or
(b) 80% of the average Fair Market Values on the twenty trading days preceding the grant date.

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               (ii) In the case of an Option granted to any Beneficiary other than a U.S. Beneficiary
described in paragraph (i) immediately above, the per Share exercise price shall be no less than
the higher of (a) 100% of the Fair Market Value per Share, or (b) 80% of the average Fair Market
Values on the twenty trading days preceding the grant date.

The exercise price shall be not be less than 80% of the average of the first quoted prices of the
Share on Eurolist by Euronext TM over 20 trading days immediately preceding the date of
grant.

8.1.2 When an Option entitles the holder to purchase shares previously repurchased by the
Company, the exercise price may neither be less than 80% of the average purchase price paid for all
Shares or ADRs previously repurchased by the Company, nor than 80% of the average of the first
quoted prices of the Share on Eurolist by Euronext TM over 20 trading days immediately
preceding the date of grant.

8.2 Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall determine any
conditions which must be satisfied before the Option may be exercised. In so doing, the
Administrator may specify that an Option may not be exercised until the completion of a service
period.

8.3 Form of Consideration. The consideration to be paid for the Shares upon
exercise of Options, including the method of payment, shall be determined by the Administrator
(and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and shall
consist entirely of an amount in Euros corresponding to the exercise price which may be paid namely
by:

	 	-	 	wire transfer;
	 
	 	-	 	check;
	 
	 	-	 	delivery of a properly executed notice together with such other documentation as
the Administrator and the broker, if applicable, shall require to effect exercise of
the Option and delivery to the Company of the sale or loan proceeds required to pay
the exercise price;
	 
	 	-	 	proceeds from the resale of shares in case of cash-less exercise; or
	 
	 	-	 	any combination of the foregoing methods of payment.

9. EXERCISE OF OPTION

9.1 Procedure for Exercise; Rights as a Shareholder

     Any Option granted hereunder shall be exercisable,

               (i) subject to the signature by the Optionee of his/her Option Agreement and, as the case may
be, its exhibits, Election, acceptance form, information form and any other exhibit or form
attached to the Option Agreement on or before the 90th day from the Notification Date.

	 	(ii)	 	according to the terms of the Plan and at such times and
under such conditions as determined by the Administrator and set forth in
the Option Agreement.

     An Option may not be exercised for a fraction of a Share.

     An Option shall be deemed exercised when the Company receives: (i) written notice of exercise
(in accordance with the Option Agreement) together with a share subscription or purchase form
(bulletin d’achat ou de souscription) from the person entitled to exercise the Option, and (ii)
full payment for the Shares with respect to which the Option is exercised. Full payment may
consist of any consideration and method of payment authorized by the Administrator and permitted by
the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the
name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her
spouse.

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     Upon exercise of any Option in accordance herewith, the Shares issued to the Optionee shall be
assimilated with all other Shares of the Company and shall be entitled to dividends for the fiscal
year in course during which the Option is exercised.

     Granting of an Option in any manner shall result in a decrease in the number of Shares which
thereafter may be available for purposes of the Plan, by the number of Shares as to which the
Option is outstanding.

9.2 Termination of Employment. Upon termination of an Optionee’s Continuous Status as a
Beneficiary during the term of the Option, other than upon the Optionee’s death or Disability, the
Optionee may exercise his or her Option, but only within such period of time as is specified in the
Notice of Grant, and only to the extent that the Optionee was entitled to exercise it at the date
of termination (but in no event later than the expiration of the term of such Option as set forth
in the Notice of Grant). In the absence of a specified time in the Notice of Grant, the Option
shall remain exercisable for ninety (90) days following the Optionee’s termination of Continuous
Status as a Beneficiary. In the case of an Incentive Stock Option, such period of time shall not
exceed ninety (90) days from the date of termination. If, at the date of termination, the Optionee
is not entitled to exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan. If, after termination, the Optionee does not
exercise his or her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

9.3 Disability of Optionee. In the event that an Optionee’s Continuous Status as a
Beneficiary terminates, during the term of the Option, as a result of the Optionee’s Disability,
the Optionee may exercise his or her Option at any time within six (6) months from the date of such
termination, and only to the extent that the Optionee was entitled to exercise it at the date of
such termination (but in no event later than the expiration of the term of such Option as set forth
in the Notice of Grant). If, at the date of termination, the Optionee is not entitled to exercise
his or her entire Option, the Shares covered by the unexercised portion of the Option shall revert
to the Plan. If, after termination, the Optionee does not exercise his or her Option within the
time specified herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

9.4 Death of Optionee. In the event of the death of an Optionee during the term of the
Option, the Option may be exercised at any time within six (6) months following the date of death,
by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent that the Optionee was entitled to exercise the Option at the
date of death (and in no event later than the expiration of the term of such Option as set forth in
the Notice of Grant). If, at the time of death, the Optionee was not entitled to exercise his or
her entire Option, the Shares covered by the unexercised portion of the Option shall immediately
revert to the Plan. If, after death, the Optionee’s estate or a person who acquired the right to
exercise the Option by bequest or inheritance does not exercise the Option within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

10. NON-TRANSFERABILITY OF OPTIONS AND SHARES

     An Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any
manner other than by will or by laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

     The Administrator may restrict the right of an Optionee to sell, convert into bearer form, or
otherwise dispose of the Shares acquired upon exercise of the Option. In accordance with the Law,
such restriction may not exceed three (3) years from the exercise date.

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11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR ASSET SALE

11.1 Changes in capitalization. In the event of the carrying out by the Company of any
of the financial operations pursuant to Article L 

225-181 of the Law such as:

	 	-	 	issuance of shares to be subscribed for in cash offered exclusively to the
shareholders,
	 
	 	-	 	capitalization of reserves, profits, issuance premiums and distribution of
free shares,
	 
	 	-	 	issuance of bonds convertible or exchangeable into shares offered
exclusively to shareholders,
	 
	 	-	 	distribution of reserves in cash or portfolio securities,
	 
	 	-	 	capital reduction motivated by losses, and
	 
	 	-	 	repurchase of its own Shares at a price higher than market value, pursuant
to Article 174-9A of the decree no. 67-236 of March 23, 1967,

the Administrator shall, in accordance with the conditions provided for in Articles 174-8 et seq.
of the decree no. 67-236 of March 23, 1967 concerning commercial companies, effect an adjustment of
the number and the price of the Shares subject to Option grants.

     The number of Shares which have been authorized for issuance under the Plan as to which no
Options have yet been granted or which have been returned to the Plan upon cancellation or
expiration of an Option shall be proportionately adjusted in the event the Company effects a share
capital increase by way of incorporation of reserves, premiums or profits, resulting either in an
increase of the nominal value of the shares or in a free allocation of shares, or effects a reverse
or forward stock split or a combination of shares.

11.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation
of the Company, to the extent that an Option has not been previously exercised, it will terminate
immediately prior to the consummation of such proposed action. The Administrator may, in the
exercise of its sole discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Administrator and give each Optionee the right to exercise his or her Option as
to which the Option would not otherwise be exercisable. The possibility to exercise Options will
be notified by the Administrator to the Beneficiary. Such notification shall provide the
Beneficiary with information regarding the dissolution or liquidation process.

11.3 Change in Control. In the event of a Change in Control of the Company, each
outstanding Option shall be assumed or an equivalent option or right shall be granted by the
successor corporation or an affiliated company of the successor corporation. The Administrator
may, in lieu of such assumption or new grant, provide for the Optionee the right to exercise the
Option as to the corresponding Shares as to which it would not otherwise be exercisable. If the
Administrator makes an Option exercisable in lieu of assumption or new grant in the event of a
Change in Control, the Administrator shall notify the Optionee that the Option shall be fully
exercisable for a period of fifteen (15) days from the date of such notice, and the Option will
terminate upon the expiration of such period. For the purposes of this paragraph, the Option shall
be considered assumed if, following the Change in Control, the Participant receives, with respect
to each Option, the right to purchase, for each Share of Optioned Stock subject to the Option
immediately prior to the Change in Control, the consideration (whether stock, cash, or other
securities or property) received in the Change in Control by holders of Shares or ADRs for each
Share or ADR held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received was not solely common stock of the
successor corporation, or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of options or rights
granted with respect to each Share of Option Stock subject to the Option, to be solely common stock
of the successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Shares or ADRs in the merger or sale of assets within the
limits set forth by the applicable laws and regulations.

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11.4 Shares subject to the Subsidiary Stock Incentive Sub-Plan. The article 11.1 is not
applicable to the shares mentioned in article 3.2 of this Plan, for which provisions of the
Non-French Subsidiaries Stock Incentive Sub-Plan shall be applicable.

12. DATE OF GRANT

     The date of grant of an Option shall be, for all purposes, the date on which the Administrator
makes the determination granting such Option. A Notice of Grant shall be provided to each Optionee
within a reasonable time after the date of such grant.

13. AMENDMENT AND TERMINATION OF THE PLAN

13.1 Amendment and Termination. The Administrator may at any time amend, alter, suspend
or terminate the Plan.

13.2 Shareholder Approval. For the purpose of certain local laws, the Company shall
obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply
with Section 422 of the Code (or any successor rule or statute or other applicable law, rule or
regulation, including the requirements of any exchange or quotation system on which the Shares or
ADRs is listed or quoted). Such shareholder approval, if required, shall be obtained in such a
manner and to such a degree as is required by the applicable law, rule or regulation.

13.3 Effect of Amendment or Termination. No amendment, alteration or suspension of the
Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee
and the Administrator, which agreement must be in writing and signed by the Optionee and the
Company. In addition, the termination of the Plan will only have consequences in the future, and
will have no impact on the outstanding Options granted under the Plan.

14. CONDITIONS UPON ISSUANCE OF SHARES

14.1 Legal Compliance. Shares shall not be issued pursuant to the exercise of Options
unless the exercise of such Options and the issuance and delivery of such Shares shall comply with
all relevant provisions of law including, without limitation, the Law, the Securities Act of 1933,
as amended, the Exchange Act, the rules and regulations promulgated thereunder, Applicable U.S.
Laws and the requirements of any stock exchange or quotation system upon which the Shares may then
be listed or quoted.

14.2 Investment Representations. As a condition to the exercise of an Option, the
Company may require the person exercising such Option to represent and warrant at the time of any
such exercise that the Share is being subscribed only for investment and without any present
intention to sell or distribute such Share if, in the opinion of counsel for the Company, such a
representation is required.

15. LIABILITY OF COMPANY

     The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance of any
Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue
such Shares as to which such requisite authority shall not have been obtained.

16. INFORMATION OF THE OPTIONEE OF THE GRANT OF THE OPTIONS

     The Company informs the Optionee of the grant of Options by sending him/her the Notice of
Grant to which a copy of the present Plan is attached. As of the time of receipt, the Optionee
reviews all the

10

 

documents sent by the Company and returns to it an acknowledgement of receipt provided by the
Company for this purpose.

     In addition, the Company shall inform the Optionee within a reasonable time limit of any
modifications of the conditions of the Options granted under the present Plan.

17. LAW AND JURISDICTION AND LANGUAGE

     This Plan shall be governed by and construed in accordance with the laws of the Republic of
France. The Tribunal de Grande Instance of Nanterre, or the court otherwise competent, shall have
jurisdiction to determine any claim or dispute arising in connection herewith.

     The Plan has been adopted in the French language. As a result, only the French version shall
prevail. Any version hereof drafted in another language is for information purposes only.

11

 

BUSINESS OBJECTS S.A.

2001 STOCK INCENTIVE PLAN

EXHIBIT A

BUSINESS OBJECTS S.A.

2001 STOCK OPTION GRANT AGREEMENT

Part I

NOTICE OF STOCK OPTION GRANT

Name:

Address:

You have been granted options to subscribe for Shares of the Company, subject to the terms
and conditions of the 2001 Stock Incentive Plan, as amended (the Plan) and this Option Agreement,
as follows. Unless otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Option Agreement.

	 	 	 
	 

	 	Grant Number:
	 
	 	 
	 

	 	Date of Grant:
	 
	 	 
	 

	 	Vesting Commencement Date:
	 
	 	 
	 

	 	Total Number of Options Granted:
	 
	 	 
	 

	 	Exercise Price per Option:
	 
	 	 
	 

	 	Total Exercise Price:
	 
	 	 
	 

	 	Term/Expiration Date:

     Type of Option (for US Beneficiaries only): These Options are intended to be
Incentive Stock Options (“ISOs”). However, in accordance with Section 422(d) of the Internal
Revenue Code of 1986 as amended, to the extent that the aggregate fair market value of Shares
subject to ISOs which become exercisable for the first time during any calendar year (under all
plans of the Company or any Affiliated Company) exceeds $100,000, such excess Options is treated as
Non-statutory Stock Options (“NSO”).

     Vesting Schedule: These Options may be exercised, in whole or in part, in accordance
with the following schedule:

 

			
	provided that the Beneficiary remains in Continuous Status as a Beneficiary, as defined in section 2 (y) of the Plan, on such dates.

     Termination Period: These Options may be exercised for ninety (90) days after
termination of the Optionee’s employment with the Company or the Affiliated Company as the case may
be. Upon the death or Disability of the Optionee, these Options may be exercised for such longer
period as provided in the Plan. Save as provided in the Plan, in no event shall these Options be
exercised later than the Term/Expiration Date as provided above.

     By your signature and the signature of the Company’s representative below, you and the Company
agree that these Options are granted under and governed by the terms and conditions of the Plan and
this Option Agreement. Moreover, by signing this document you acknowledge receipt of the rules of
the Plan and of this Option Agreement, you represent that you have reviewed the Plan and this
Option Agreement in their entirety, had the opportunity to obtain the advice of counsel prior to
executing this Option Agreement and fully understand all provisions of the Plan and Option
Agreement. You hereby agree to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions relating to the Plan and Option Agreement.
You further agree to notify the Company upon any change in the residence address indicated above.
You acknowledge and agree that this Option and its vesting schedule does not constitute an express
or implied promise of continued employment and shall not interfere in any way with your right or
the Company’s right to terminate your employment at any time. Further, the benefits, if any,
arising from your Option, shall not form any part of your wages, pay or remuneration or count as
wages, pay or remuneration for pension fund or other purposes. In no circumstances shall you on
ceasing to hold your office or employment be entitled to any compensation for any loss of any right
or benefit or

1

 

prospective right or benefit under the Plan, which you might otherwise have enjoyed, whether
such compensation is claimed by way of damages for wrongful dismissal or other breach of contract
or by way of compensation for loss of office or otherwise.

     The Company and the Optionee recognize that the Plan has been adopted in the French language.
As a result, only the French version shall prevail. The translation in English is provided for
information purposes only.

	 	 	 
	OPTIONEE:

	 	FOR BUSINESS OBJECTS S.A.
	 

	 	 

2

 

BUSINESS OBJECTS S.A.

2001 STOCK OPTION GRANT AGREEMENT

Part II

TERMS AND CONDITION

     1. Grant of Options. The Plan Administrator of the Company hereby grants to
the Optionee named in the Notice of Grant attached as Part I of this Agreement (the “Optionee”),
number of options (“Options”) as set forth in the Notice of Grant each giving right by exercise to
subscribe one Share, at the exercise price per Option set forth in the Notice of Grant (the
“Exercise Price”), subject to the terms and conditions of the 2001 Stock Incentive Plan, which is
incorporated herein by reference. Subject to Section 13.3 of the Plan, in the event of a conflict
between the terms and conditions of the Plan and the terms and conditions of this Option Agreement,
the terms and conditions of the Plan shall prevail.

If designated in the Notice of Grant as an ISO, this Option is intended to qualify as an ISO under
Section 422 of the Code. However, if this Option is intended to be an ISO, to the extent that it
exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Non-statutory Stock
Option.

     2. Exercise of Options

     (a) Right to Exercise. These Options are exercisable subject to the signature by the
Optionee of his/her Option Agreement and, as the case may be, its exhibits, Election, acceptance
form, information form and any other exhibit or form attached to the Option Agreement on or before
the 90th date from the Notification Date. These Options are exercisable during the term
in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable
provisions of the Plan and this Option Agreement. In the event of Optionee’s death, Disability or
other termination of Optionee’s employment, the exercisability of the Options is governed by the
applicable provisions of the Plan and this Option Agreement.

     (b) Method of Exercise. These Options are exercisable by delivery of an exercise
notice, in the form attached hereto (the “Exercise Notice”), comprising a share subscription form
(bulletin de souscription) which shall state the election to exercise the number of Options
indicated in such Exercise Notice (the “Exercised Options”), and such other representations and
agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise
Notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the
Company or its designated representative or by facsimile message to be immediately confirmed by
certified mail to the Company. The Exercise Notice shall be accompanied by payment of the
aggregate Exercise Price as to all Exercised Options. These Options shall be deemed to be
exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such
aggregate Exercise Price.

     No Shares shall be issued pursuant to the exercise of these Options unless such issuance and
exercise complies with all relevant provisions of law and the requirements of any stock exchange or
quotation service upon which the Shares are then listed. Assuming such compliance, for income tax
purposes the Shares acquired by exercise of Options shall be considered transferred to the Optionee
on the date Options are exercised with respect to such Shares.

3

 

     3. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the
following method, or a combination thereof, at the election of the Optionee: (i) wire transfer;
(ii) check; (iii) delivery of a properly executed notice together with such other documentation as
the Administrator and the broker, if applicable, shall require to effect exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the exercise price; (iv)
proceeds from the resale of shares in case of cash-less exercise, or (v) any combination of the
foregoing methods of payment.

     In accordance with Article 4.2.4 of the Company French Savings Plan, the beneficiary may use
holdings under the Company Savings Plan for the exercise of the Options. In such case, the
obtained shares are contributed to the Company Savings Plan and are subject to a five-year lock-up
period.

     4. Non-Transferability of Options. These Options may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of the Optionee only by the Optionee. The terms of the Plan and this Option Agreement
shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

     5. Terms of Options. Except as provided in the Plan, these Options may be exercised
only within the term set out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

     6. UK National Insurance Liability. By virtue of your acceptance of the rules of the
Plan, you are required to enter into an Election with the Company or Affiliated Company in the form
attached to this Agreement marked attachment C. In the event that the Optionee fails to enter into
the Election as required by the terms of this Agreement, by signing and returning Attachment C to
the Company within a period of 28 days of the date of receipt of this Agreement, then these Options
shall terminate and shall there upon become null and void.

     7. Entire Agreement; Governing Law. The Plan is incorporated herein by reference.
The Plan and this Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings and agreements of
the Company and Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the Company and
Optionee. This Agreement is governed by the laws of the Republic of France.

     Any claim or dispute arising under the Plan or this Agreement shall be subject to the
jurisdiction of the Tribunal de Grande Instance of Nanterre or the court otherwise competent.

4

 

CONSENT OF SPOUSE

(to be signed by residents of

California and other community property states)

     The undersigned spouse of Optionee has read and hereby approves the terms and conditions of
the Plan and this Option Agreement. In consideration of the Company’s granting his or her spouse
the right to subscribe Shares as set forth in the Plan and this Option Agreement, the undersigned
hereby agrees to be irrevocably bound by the terms and conditions of the Plan and this Option
Agreement and further agrees that any community property interest shall be similarly bound. The
undersigned hereby appoints the undersigned’s spouse as attorney-in-fact for the undersigned with
respect to any amendment or exercise of rights under the Plan or this Option Agreement.

	 	 	 
	 

	 	 
	 

	 	Consent of spouseexv4w2

 

Exhibit 4.2

CENTEX CORPORATION

Issuer

and

JPMORGAN CHASE BANK, N.A.

(formerly The Chase Manhattan Bank)

Trustee

INDENTURE SUPPLEMENT NO. 18

Dated as of August 18, 2005

to

INDENTURE

Dated as of October 1, 1998

4.875% Senior Notes due August 15, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	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	 	 	 	 

i

 

          INDENTURE SUPPLEMENT NO. 18 (“Indenture Supplement”), dated as of August 18, 2005,
between CENTEX CORPORATION, a Nevada corporation (together with its successors and assigns as
provided in the Indenture referred to below, the “Company”), and JPMORGAN CHASE BANK, N.A.,
a national banking association (formerly, The Chase Manhattan Bank, successor to 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 4.875% Senior Notes due 2008 (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.

 

 

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.

2

 

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 “4.875% Senior Notes due 2008” 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 $150,000,000, 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 $150,000,000 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, 2001 Bryan Street, Floor 11, Dallas, Texas 75201.
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 designating

3

 

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;

4

 

     (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 property or 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, municipal utility district 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).

5

 

          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.

6

 

          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 Company with
respect to the trust funds representing such deposits or by the Trustee for such trust funds
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

7

 

as a result of such defeasance and will be subject to federal income tax in the 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

8

 

hereto and their successors hereunder and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture Supplement.

          Section 5.08. Acceptance of Trusts. The Trustee 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.

9

 

     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 m. Johnston	 	 
	 	 	 
	Name:

	 	Paul M. Johnston	 	 
	Title:

	 	Vice President, Corporate Counsel	 	 
	 

	 	and Assistant Secretary	 	 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 	 	(f/k/a The Chase Manhattan Bank), as Trustee
	 
	 	 	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Mary Jane Henson
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mary Jane Henson
	 

	 	 	 	Title:
	 	Authorized Signatory

	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	/s/ Josie L. Hixon	 	 
	 	 	 
	Name:

	 	Josie L. Hixon	 	 
	Title:

	 	Authorized Signatory	 	 

10

 

	 	 	 	 	 
	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 M. 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 18th day of August, 2005.

	 	 	 
	 

	 	/s/ Candie C. Nelson
	 

	 	 
	 

	 	Notary Public in and for the State of Texas
	 
	 	 
	 

	 	Candie C. Nelson
	 

	 	 
	 

	 	Printed Name of Notary Public

My commission expires:

1-18-2009

	 	 	 	 	 
	STATE OF TEXAS

	)	 	 	 
	 

	)	 	 	 
	COUNTY OF HARRIS

	)	 	 	 

     BEFORE ME, the undersigned authority, a Notary Public in and for said state, on this day
personally appeared Mary Jane Henson and Josie L. Hixon, 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 JPMORGAN CHASE BANK, N.A., a national banking association, and that they executed
the same as the act of said national banking association for the purposes and consideration therein
expressed, and in the capacity therein stated.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 18th day of August, 2005.

	 	 	 
	 

	 	/s/ Vivian S. Travis
	 

	 	 
	 

	 	Notary Public in and for the State of Texas
	 
	 	 
	 

	 	Vivian S. Travis
	 

	 	 
	 

	 	Printed Name of Notary Public
	 
	 	 
	My commission expires:
	 	 
	4-1-2009
	 	 

11

 

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.                                         

	 	$                                         

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                      , 2006 and continuing
semi-annually thereafter on ___and ___of each year, from                     , 2005 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.

 

     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.

JPMORGAN CHASE BANK, N.A.

(f/k/a The Chase Manhattan Bank), as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 

	 	 
	 

	 	Authorized Signatory	 	 

 

[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 JPMorgan Chase Bank, N.A. (f/k/a 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 ___, 2005 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 ___, 2005, 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,

 

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 Citigroup Global Markets Inc. or J.P. Morgan Securities
Inc.

     “Reference Treasury Dealer” means Citigroup Global Markets Inc. and J.P. Morgan Securities
Inc. 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

 

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

 

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.

 

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:

	 	 	 	 	 	 	 
	 

	 	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

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.

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