Document:

exv4w6

Exhibit 4.6

 

 

 

MGIC INVESTMENT CORPORATION

AND

U.S. BANK NATIONAL ASSOCIATION, as Trustee

 

INDENTURE

Dated as of March 28, 2008

 

 

 

 

 

CROSS REFERENCE TABLE*

 

			
	*	 	Note: This Cross Reference Table shall not, for any purpose, be deemed
to be part of the Indenture.

	 	 	 	 	 
	 	 	Indenture
	TIA Section	 	Section
	310(a)(1)

	 	 	7.10	 
	(a)(2)

	 	 	7.10	 
	(a)(3)

	 	 	N.A.	 
	(a)(4)

	 	 	N.A.	 
	(b)

	 	 7.08; 7.10 

	(c)

	 	 	N.A.	 
	311(a)

	 	 	N.A.	 
	(b)

	 	 	N.A.	 
	(c)

	 	 	N.A.	 
	312(a)

	 	 	2.05	 
	(b)

	 	 	12.03	 
	(c)

	 	 	12.03	 
	313(a)

	 	 	7.06	 
	(b)(1)

	 	 	N.A.	 
	(b)(2)

	 	 	7.06	 
	(c)

	 	 	12.02	 
	(d)

	 	 	7.06	 
	314(a)

	 	4.02; 4.03; 12.02 

	(b)

	 	 	N.A.	 
	(c)(1)

	 	 	12.04	 
	(c)(2)

	 	 	12.04	 
	(c)(3)

	 	 	N.A.	 
	(d)

	 	 	N.A.	 
	(e)

	 	 	12.05	 
	(f)

	 	 	N.A.	 
	315(a)

	 	 	7.01	 
	(b)

	 	7.05; 12.02 

	(c)

	 	 	7.01	 
	(d)

	 	 	7.01	 
	(e)

	 	 	6.11	 
	316(a) (last
sentence)

	 	 	2.08	 
	(a)(1)(A)

	 	 	6.05	 
	(a)(1)(B)

	 	 	6.04	 
	(a)(2)

	 	 	N.A.	 
	(b)

	 	 	6.07	 
	317(a)(1)

	 	 	6.08	 
	(a)(2)

	 	 	6.09	 

1 

 

	 	 	 	 	 
	 	 	Indenture
	TIA Section	 	Section
	(b)

	 	 	2.04	 
	318(a)

	 	 	12.01	 

N.A. means not applicable.

2

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Certain Terms Defined
	 	 	1	 
	SECTION 1.02. Other Definitions
	 	 	11	 
	SECTION 1.03. Rules of Construction
	 	 	11	 
	SECTION 1.04. Acts of Holders
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	TERMS OF THE DEBENTURES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Designation and Principal Amount
	 	 	13	 
	SECTION 2.02. Issue Date; Maturity
	 	 	13	 
	SECTION 2.03. Form and Dating
	 	 	13	 
	SECTION 2.04. Execution and Authentication
	 	 	14	 
	SECTION 2.05. Registrar, Paying Agent and Conversion Agent
	 	 	15	 
	SECTION 2.06. Paying Agent to Hold Money and Debentures in Trust
	 	 	16	 
	SECTION 2.07. Securityholder Lists
	 	 	16	 
	SECTION 2.08. Interest
	 	 	16	 
	SECTION 2.09. Optional Deferral of Interest
	 	 	17	 
	SECTION 2.10. Transfer and Conversion
	 	 	19	 
	SECTION 2.11. Replacement Debentures
	 	 	20	 
	SECTION 2.12. Outstanding Debentures; Determinations of Holders’ Action
	 	 	20	 
	SECTION 2.13. Temporary Debentures
	 	 	21	 
	SECTION 2.14. Cancellation
	 	 	21	 
	SECTION 2.15. Persons Deemed Owners
	 	 	22	 
	SECTION 2.16. Legend; Additional Transfer and Exchange Requirements
	 	 	22	 
	SECTION 2.17. CUSIP Numbers
	 	 	28	 
	SECTION 2.18. Redemption
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	SUBORDINATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Agreement to Subordinate
	 	 	30	 
	SECTION 3.02. Liquidation, Dissolution, Bankruptcy
	 	 	30	 
	SECTION 3.03. Default on Senior Indebtedness of the Company
	 	 	31	 
	SECTION 3.04. When Distribution Must Be Paid Over
	 	 	31	 
	SECTION 3.05. Subrogation
	 	 	31	 
	SECTION 3.06. Relative Rights
	 	 	32	 
	SECTION 3.07. Subordination May Not Be Impaired by Company
	 	 	32	 
	SECTION 3.08. Rights of Trustee and Paying Agent
	 	 	32	 
	SECTION 3.09. Distribution or Notice to Representative
	 	 	32	 
	SECTION 3.10. Article 3 Not to Prevent Events of Default or Limit Right to Accelerate
	 	 	33	 
	SECTION 3.11. Trust Moneys Not Subordinated
	 	 	33	 
	SECTION 3.12. Trustee Entitled to Rely
	 	 	33	 
	SECTION 3.13. Trustee to Effectuate Subordination
	 	 	33	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.14. Trustee Not Fiduciary for Holders of Senior Indebtedness of the Company
	 	 	33	 
	SECTION 3.15. Reliance by Holders of Senior Indebtedness of the Company on Subordination Provisions
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Payment of Debentures
	 	 	34	 
	SECTION 4.02. SEC and Other Reports
	 	 	34	 
	SECTION 4.03. Compliance Certificate
	 	 	35	 
	SECTION 4.04. Maintenance of Office or Agency
	 	 	35	 
	SECTION 4.05. Limitation on Payments
	 	 	35	 
	SECTION 4.06. Alternative Payment Mechanism
	 	 	37	 
	SECTION 4.07. Covenant Against Repurchases
	 	 	40	 
	SECTION 4.08. Responsibility of Trustee for Conversion Provisions
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	SUCCESSOR CORPORATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. When Company May Merge or Transfer Assets
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	42	 
	SECTION 6.02. Acceleration
	 	 	43	 
	SECTION 6.03. Other Remedies
	 	 	43	 
	SECTION 6.04. Waiver of Past Defaults
	 	 	43	 
	SECTION 6.05. Control by Majority
	 	 	44	 
	SECTION 6.06. Limitation on Suits
	 	 	44	 
	SECTION 6.07. Rights of Holders to Receive Payment
	 	 	45	 
	SECTION 6.08. Collection Suit by Trustee
	 	 	45	 
	SECTION 6.09. Trustee May File Proofs of Claim
	 	 	45	 
	SECTION 6.10. Priorities
	 	 	46	 
	SECTION 6.11. Undertaking for Costs
	 	 	46	 
	SECTION 6.12. Waiver of Stay, Extension or Usury Laws
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Duties of Trustee
	 	 	47	 
	SECTION 7.02. Rights of Trustee
	 	 	48	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	49	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	49	 
	SECTION 7.05. Notice of Defaults
	 	 	49	 
	SECTION 7.06. Reports by Trustee to Holders
	 	 	50	 
	SECTION 7.07. Compensation and Indemnity
	 	 	50	 
	SECTION 7.08. Replacement of Trustee
	 	 	50	 
	SECTION 7.09. Successor Trustee by Merger
	 	 	51	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	51	 

ii

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	DISCHARGE OF INDENTURE
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Discharge of Liability on Debentures
	 	 	52	 
	SECTION 8.02. Repayment to the Company
	 	 	52	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	AMENDMENTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Without Consent of Holders
	 	 	52	 
	SECTION 9.02. With Consent of Holders
	 	 	54	 
	SECTION 9.03. Compliance with Trust Indenture Act
	 	 	54	 
	SECTION 9.04. Revocation and Effect of Consents, Waivers and Actions
	 	 	55	 
	SECTION 9.05. Notation on or Exchange of Debentures
	 	 	55	 
	SECTION 9.06. Trustee to Sign Supplemental Indentures
	 	 	55	 
	SECTION 9.07. Effect of Supplemental Indentures
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	CONVERSION
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01. Conversion at the Option of the Holder
	 	 	55	 
	SECTION 10.02. Exercise of Conversion Right
	 	 	56	 
	SECTION 10.03. Adjustment for Interest or Dividends
	 	 	57	 
	SECTION 10.04. Cash Payments
	 	 	58	 
	SECTION 10.05. Conversion Rate
	 	 	59	 
	SECTION 10.06. Effect of Reclassification, Consolidation, Merger or Sale
	 	 	67	 
	SECTION 10.07. Taxes on Shares Issued
	 	 	68	 
	SECTION 10.08. Reservation of Shares, Shares to be Fully Paid; Compliance with Governmental
Requirements; Listing
of 
	 	 	 	 
	Common Stock
	 	 	68	 
	SECTION 10.09. Conversion-Related Notices by the Company
	 	 	69	 
	SECTION 10.10. Make-Whole Fundamental Change
	 	 	70	 
	SECTION 10.11. Alternative Conversion Right Upon a Fundamental Change
	 	 	72	 
	SECTION 10.12. Rights Distributions
	 	 	74	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	PAYMENT OF INTEREST
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01. Interest Payments
	 	 	74	 
	SECTION 11.02. Defaulted Interest
	 	 	75	 
	SECTION 11.03. Interest Rights Preserved
	 	 	75	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 12.01. Trust Indenture Act Controls
	 	 	76	 
	SECTION 12.02. Notices; Address of Agency
	 	 	76	 
	SECTION 12.03. Communication by Holders with Other Holders
	 	 	78	 
	SECTION 12.04. Certificate and Opinion as to Conditions Precedent
	 	 	78	 
	SECTION 12.05. Statements Required in Certificate or Opinion
	 	 	78	 
	SECTION 12.06. Separability Clause
	 	 	78	 
	SECTION 12.07. Rules by Trustee, Paying Agent, Conversion Agent and Registrar
	 	 	78	 
	SECTION 12.08. Legal Holidays
	 	 	79	 

iii

 

	 	 	 	 	 
	 	 	Page
	SECTION 12.09. Governing Law
	 	 	79	 
	SECTION 12.10. [Intentionally Left Blank]
	 	 	79	 
	SECTION 12.11. Limitation on Claim for Deferred Interest
	 	 	79	 
	SECTION 12.12 No Recourse Against Others
	 	 	79	 
	SECTION 12.13. Successors
	 	 	79	 
	SECTION 12.14. Multiple Originals
	 	 	79	 

iv

 

     THIS INDENTURE, dated as of March 28, 2008, between MGIC INVESTMENT CORPORATION, a Wisconsin
corporation (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as
trustee (“Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 9% Convertible Junior Subordinated Debentures due 2063 (the
“Debentures”):

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01. Certain Terms Defined. The following terms (except as otherwise expressly
provided or unless the context otherwise clearly requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section.
All other terms used in this Indenture that are defined in the TIA or the definitions of which in
the Securities Act are referred to in the TIA, including terms defined therein by reference to the
Securities Act (except as herein otherwise expressly provided or unless the context otherwise
clearly requires), shall have the meanings assigned to such terms in the TIA and in the Securities
Act as in force at the date of this Indenture. All accounting terms used herein and not expressly
defined shall have the meanings assigned to such terms in accordance with generally accepted
accounting principles, and the term “generally accepted accounting principles” means such
accounting principles as are generally accepted in the United States of America at the time of any
computation. The words “herein”, “hereof” and “hereunder” and other words of similar import refer
to this Indenture as a whole, as supplemented and amended from time to time, and not to any
particular Article, Section or other subdivision. The terms defined in this Article have the
meanings assigned to them in this Article and include the plural as well as the singular.

     “Act,” when used with respect to any Holders, has the meaning specified in Section 1.04.

     “Additional Shares” has the meaning set forth in Section 10.10.

     “Affiliate” of any specified person means any other person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified person. For the
purposes of this definition, “control” when used with respect to any specified person means the
power to direct or cause the direction of the management and policies of such person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Alternative Payment Mechanism” has the meaning set forth in Section 4.06.

     “Applicable Procedures” means, with respect to any transfer or transaction involving a Global
Security or beneficial interest therein, the rules and procedures of the Depositary for such
Debenture, in each case to the extent applicable to such transaction and as in effect from time to
time.

 

 

     “Asset Sale Make-Whole Fundamental Change” means any sale, transfer, lease, conveyance or
other disposition of all or substantially all of the property or assets of the Company, or of all
or substantially all of the property or assets of the Company and the Subsidiaries on a
consolidated basis, to any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act), including any group acting for the purpose of acquiring, holding, voting or
disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act.

     “Bankruptcy Law” means Title 11, United States Code, or any similar Federal or state law for
the relief of debtors.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of such board.

     “Business Day” means any weekday that is not a day on which banking institutions in the City
of New York, New York are authorized or required by law or executive order to remain closed.

     “Certificated Securities” means Debentures that are substantially in the form of the
Debentures attached hereto as Exhibit A.

     “Change in Control” has the meaning set forth in Section 10.11(vii).

     “Close of Business” means 5:00 p.m. (New York City time).

     “Closing Sale Price” of the Common Stock on any date means the closing sale price per share
(or if no closing sale price is reported, the average of the closing bid and ask prices or, if more
than one in either case, the average of the average closing bid and the average closing ask prices)
on such date as reported on the principal United States securities exchange on which such Common
Stock is traded or, if such Common Stock is not listed on a United States national or regional
securities exchange, as reported by the National Quotation Bureau Incorporated. In the absence of
such quotation, but only with respect to the Company’s Common Stock, the closing sale price will be
an amount determined in good faith by the Company’s board of directors to be the fair value of such
Common Stock, and such determination shall be conclusive.

     “Common Stock” means the shares of common stock, $1.00 par value, of the Company as it exists
on the date of this Indenture or any other shares of capital stock of the Company into which the
Common Stock shall be reclassified or changed.

     “Common Stock Change Make-Whole Fundamental Change” means any transaction or series of related
transactions (other than a Listed Stock Business Combination, as defined in Section 10.11(vii)), in
connection with which (whether by means of an exchange offer, liquidation, tender offer,
consolidation, amalgamation, statutory arrangement, merger, combination, reclassification,
recapitalization, asset sale, lease of assets or otherwise) all or substantially all the Common
Stock is exchanged for, converted into, acquired for or constitutes solely the right to receive
other securities, other property, assets or cash.

2

 

     “Company” means the party named as the “Company” in the first paragraph of this Indenture
until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any
subsequent such successor or successors.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by an Officer.

     “Compounded Interest” means interest on any accrued and unpaid interest, to the extent
permitted by applicable law, at the Debenture Interest Rate (as defined in Section 2.08(i))
compounded semi-annually.

     “Conversion Date” has the meaning set forth in Section 10.02(iii).

     “Conversion Price” means, on any day, $1,000 divided by the Conversion Rate in effect on that
day.

     “Conversion Rate” has the meaning set forth in Section 10.05.

     “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at 1555
North RiverCenter Drive Suite 301; Milwaukee, WI 53212,  Attention: Corporate Trust
Services, or such other address as the Trustee may designate from time to time by notice to the
Holders and the Company, or the principal corporate trust office of any successor Trustee (or such
other address as a successor Trustee may designate from time to time by notice to the Holders and
the Company).

     “Covenant Breach” means a default in the performance, or breach, of any covenant or warranty
of the Company in this Indenture (other than an Event of Default as defined in Section 6.01
hereof), and a continuance of such default or breach for a period of 90 days after there has been
given, by registered or certified mail, to the Company by the Trustee, or to the Company and the
Trustee by the Holders of a majority in principal amount of the outstanding Debentures, a written
notice specifying such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default.”

     “Current Market Price” of the Company’s Common Stock means, for any day, the average of the
Closing Sale Price per share of the Company’s Common Stock for each of the five consecutive Trading
Days ending on the earlier of the day in question and the day before the Ex-Dividend Date with
respect to the issuance or distribution requiring such computation.

     “Current Stock Market Price” of the Company’s Common Stock means, for any day, the closing
sale price per share (or if no closing sale price is reported, the average of the bid and ask
prices or, if more than one in either case, the average of the average bid and the average ask
prices) on that date as reported in composite transactions by the NYSE or, if the Company’s Common
Stock is not then listed on the NYSE, as reported by the principal U.S. securities exchange on
which the Company’s Common Stock is traded or quoted. If the Company’s Common Stock is not either
listed or quoted on any U.S. securities exchange on the relevant date, the “Current Stock Market
Price” will be the last quoted bid price for the Company’s

3

 

Common Stock in the over-the-counter market on the relevant date as reported by the National
Quotation Bureau or similar organization. If the Company’s Common Stock is not so quoted, the
“Current Stock Market Price” will be the average of the mid-point of the last bid and ask prices
for the Company’s Common Stock on the relevant date from each of at least three nationally
recognized independent investment banking firms selected by the Company for this purpose.

     “Debentures” means any of the Company’s 9% Convertible Junior Subordinated Debentures due
2063, as amended or supplemented from time to time, issued under this Indenture.

     “Deferred Interest” means all interest deferred pursuant to Section 2.09, as then accrued and
unpaid.

     “Depositary” means DTC or the nominee thereof, or any successor thereto.

     “DTC” means The Depository Trust Company.

     “Effective Date” has the meaning specified in Section 10.10(ii).

     “Eligible Proceeds” means, for each relevant Interest Payment Date, the net proceeds (after
underwriters’ or placement agents’ fees, commissions or discounts and other expenses relating to
the issuance or sale) the Company received during the 180-day period prior to that Interest Payment
Date from the issuance or sale of Qualifying Securities (in the case of Qualifying Preferred Stock,
up to the Preferred Stock Issuance Cap), in each case to persons that are not Affiliates of the
Company.

     “Event of Default” has the meaning set forth in Section 6.01(i).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Property” has the meaning set forth in Section 10.06(i).

     “Ex-Dividend Date” means the first date on which the Company’s Common Stock trades on the
applicable exchange or in the applicable market, “regular way,” without the right to receive a
relevant issuance or distribution.

     “Fair Market Value” means the amount which a willing buyer would pay a willing seller in an
arm’s-length transaction, as conclusively determined in good faith by the Board of Directors.

     “Final Maturity Date” has the meaning set forth in Section 2.02.

     “Foregone Interest” has the meaning set forth in Section 2.09(vi).

     “Fundamental Change” has the meaning set forth in Section 10.11(vii).

     “Fundamental Change Option” has the meaning set forth in Section 10.11(iii).

4

 

     “Fundamental Change Option Period” has the meaning set forth in Section 10.11(i).

     “GAAP” means, at any date or for any period, U.S. generally accepted accounting principles, as
in effect on such date or for such period.

     “Global Securities” means Debentures that are in the form of the Debentures attached hereto as
Exhibit A.

     “Holder” means a person in whose name a Debenture is registered on the Registrar’s books.

     “Indenture” means this Indenture, as amended or supplemented from time to time in accordance
with the terms hereof, including the provisions of the TIA that are deemed to be a part hereof.

     “Interest Payment Date” has the meaning set forth in Section 2.08(i).

     “Interest Payment Period” means, subject to Section 2.09, any semi-annual period during which
interest accrues pursuant to this Indenture.

     “Issue Date” means March 28, 2008.

     “Junior Debt Securities” means debt securities that rank, upon liquidation, junior to the
Debentures.

     “Make-Whole Fundamental Change” means an Asset Sale Make-Whole Fundamental Change or a Common
Stock Change Make-Whole Fundamental Change.

     “Market Disruption Event” means the occurrence or existence of any of the following events or
sets of circumstances:

     (i) the Company may not issue Qualifying Securities without obtaining the consent or
approval of a regulatory body (including, without limitation, any securities exchange) or
governmental authority, and the Company has used commercially reasonable efforts to obtain
such consent or approval but such consent or approval has not been obtained;

     (ii) trading in securities generally or Common Stock or Preferred Stock on the
principal exchange on which the Common Stock or Preferred Stock is then listed and traded
(as of the date hereof, in the case of the Common Stock, the NYSE) has been suspended or the
settlement of such trading generally has been materially disrupted;

     (iii) (a) (1) the United States has become engaged in hostilities, (2) there has been
an escalation in hostilities involving the United States or (3) there has been a declaration
of a national emergency or war by the United States or (b) there has occurred any material
adverse change in (1) domestic or international economic, political or financial conditions
(including from terrorist activities) or (2) the effect of international conditions on the
financial markets in the United States that, in any of the circumstances

5

 

described in clauses (a) or (b) of this clause, materially disrupts or otherwise has a
material adverse effect on trading in, or the issuance and sale of, Qualifying Securities;

     (iv) a material disruption has occurred or a banking moratorium has been declared in
commercial banking or securities settlement or clearance services, and such disruption or
moratorium materially disrupts or otherwise has a material adverse effect on trading in, or
the issuance and sale of, Qualifying Securities;

     (v) minimum or maximum prices have been fixed, or maximum ranges for prices of
securities are required on the NYSE or by the SEC or another governmental authority which,
in either case, materially disrupts or otherwise has a material adverse effect on trading
in, or the issuance and sale of, Qualifying Securities;

     (vi) an event occurs and is continuing as a result of which the offering document for
the offer and sale of Qualifying Securities would, in the Company’s reasonable judgment,
contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading and either (1)
the disclosure of that event at such time, in the Company’s reasonable judgment, would have
a material adverse effect on the Company’s business or (2) the disclosure relates to a
previously undisclosed proposed or pending material development or business transaction, the
disclosure of which would impede the Company’s ability to consummate such transaction,
provided that no single suspension period contemplated by this clause (vi) shall exceed 90
consecutive days and multiple suspension periods contemplated by this subsection may not
exceed an aggregate of 90 days in any 180-day period; or

     (vii) the Company reasonably believes that the offering document for the offer and the
sale of its Qualifying Securities would not be in compliance with a rule or regulation of
the SEC (for reasons other than those described in clause (vi) above) and the Company is
unable to comply with such rule or regulation or such compliance is unduly burdensome,
provided that no single suspension period described in this clause (vii) shall exceed 90
consecutive days and multiple suspension periods described in this clause (vii) shall not
exceed an aggregate of 90 days in any 180-day period.

     “NYSE” mean the New York Stock Exchange, Inc.

     “Officer” means the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the
President, any Executive Vice President, any Senior Vice President, any Vice President, the
Treasurer or the Secretary or any Assistant Treasurer or Assistant Secretary of the Company.

     “Officer’s Certificate” means a written certificate containing the information specified in
Section 12.05, signed in the name of the Company by any Officer, and delivered to the Trustee. The
Officer executing the Officer’s Certificate pursuant to Section 4.03 shall be any of the principal
executive officer, financial officer or accounting officer of the Company.

6

 

     “Opinion of Counsel” means a written opinion containing the information specified in Section
12.05, from legal counsel who is acceptable to the Trustee. The counsel may be an employee of, or
counsel to, the Company or the Trustee.

     “Optional Deferral Period” has the meaning set forth in Section 2.09(i).

     “Parity Debt Securities” means debt securities that rank, upon liquidation, pari passu with
the Debentures.

     “Parity Guarantees” means guarantees that rank, upon liquidation, pari passu with the
Debentures.

     “Permitted Remedies” means, with respect to any Preferred Stock, one or more of the following
remedies:

     (a) rights in favor of the holders of such securities permitting such holders to elect
one or more directors of the Company (including any such rights required by the listing
requirements of any stock or securities exchange on which such securities may be listed or
traded); and

     (b) complete or partial prohibitions on the Company paying Distributions on or
repurchasing Common Stock or other securities that rank, upon liquidation, pari passu with
or junior to such securities for so long as Distributions on such securities, including
unpaid Distributions, remain unpaid.

     “Person” or “person” means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
or government or any agency or political subdivision thereof.

     “Preferred Stock” means preferred stock of the Company.

     “Preferred Stock Issuance Cap” has the meaning set forth in Section 4.06(iii).

     “Principal Amount” of a Debenture means the Principal Amount as set forth on the face of the
Debenture.

     “Qualifying Preferred Stock” means non-cumulative perpetual preferred stock issued by the
Company that (a) ranks pari passu with or junior to all of the Company’s other preferred stock, and
(b) either (i) is subject to a Qualifying Replacement Capital Covenant or (ii) is subject to an
intent-based replacement disclosure and has a provision that prohibits us from paying any dividends
thereon upon our failure to satisfy one or more financial tests set forth therein, and (c) as to
which the certificate of designation or similar charter document and any Qualifying Replacement
Capital Covenant that the Company may enter into provide for no remedies as a consequence of
non-payment of dividends other than Permitted Remedies.

     “Qualifying Replacement Capital Covenant” means a replacement capital covenant, as identified
by the Company’s Board of Directors acting in good faith and in its reasonable discretion, (i) of
the type entered into by an issuer that at the time it enters into such replacement

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capital covenant is a reporting company under the Exchange Act and (ii) that restricts the
related issuer and its subsidiaries from redeeming, repaying or purchasing identified securities
except to the extent of the applicable percentage of the net proceeds from the issuance of
specified replacement capital securities that have terms and provisions at the time of redemption,
repayment or purchase that are as or more equity-like than the securities then being redeemed,
repaid or purchased within the 180-day period prior to the applicable redemption, repayment or
purchase date.

     “Qualifying Securities” means Common Stock, Qualifying Warrants and Qualifying Preferred
Stock.

     “Qualifying Warrants” are net share settled warrants to purchase the Company’s Common Stock
that have an exercise price greater than the Current Stock Market Price of the Company’s Common
Stock as of their date of issuance, that the Company is not entitled to redeem for cash and that
the holders of which are not entitled to require the Company to repurchase for cash in any
circumstance.

     “Record Date” means, with respect to any dividend, distribution or other transaction or event
in which the holders of Common Stock have the right to receive any cash, securities or other
property or in which the Common Stock (or other applicable security) is exchanged for or converted
into any combination of cash, securities or other property, the date fixed for determination of
stockholders entitled to receive such cash, securities or other property (whether such date is
fixed by the Board of Directors or by statute, contract or otherwise).

     “Reference Dividend Amount” has the meaning set forth in Section 10.05(vi).

     “Regular Quarterly Cash Dividend” shall mean any regular quarterly cash dividend paid in a
single quarterly installment or any combination of cash dividends paid in any calendar quarter that
are designated by the Company pursuant to a resolution of the Board of Directors as being portions
of the Company’s regular quarterly cash dividend and that are paid in lieu of a single regular
quarterly cash dividend (provided that, in the case of a regular quarterly cash dividend paid in
portions, the aggregate amount of such portions is no greater than the regular quarterly cash
dividend paid in the immediately preceding calendar quarter).

     “Replacement Capital Intention” means a public statement of intention by the Company, in
filings made by the Company with the SEC, to the effect that the Company will only fund repurchases
or other acquisitions of specified securities for cash, or make certain other cash payments in
respect of such securities , out of the proceeds received by the Company or one of the Subsidiaries
from the sale of replacement securities that are as or more equity-like than the specified
securities, within the 180-day period prior to the purchase, acquisition or other payment.

     “Representative” means any trustee, agent or representative (if any) for the issuance of the
Debentures.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee having direct responsibility for the administration of
this Indenture.

8

 

     “Restricted Global Security” means a Global Security that is a Restricted Security.

     “Restricted Security” means a Debenture required to bear the Legend.

     “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

     “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Security Register” has the meaning set forth in Section 2.05.

     “Senior Indebtedness” means the principal of, premium, if any, and interest on:

     (a)           all indebtedness of the Company, whether outstanding on the date of the
issuance of the Debentures or thereafter created, incurred or assumed, which is for money
borrowed, or which is evidenced by a note, bond, indenture or similar instrument;

     (b)           all of the Company’s obligations under leases required or permitted to be
capitalized under GAAP;

     (c)           all of the Company’s reimbursement obligations with respect to any letter
of credit, banker’s acceptance, security purchase facility or similar credit transactions;

     (d)           all of the Company’s conditional sales agreements or agreements or
obligations to pay deferred purchase prices, other than in the ordinary course of business;

     (e)           all of the Company’s obligations under interest rate swap agreements,
interest rate cap agreements, interest rate collar agreements and other agreements or
arrangements designed to protect against fluctuations in interest rates or foreign exchange
rates;

     (f)            all obligations of the types referred to in clauses (a) through (e)
above of another Person, the payment of which the Company is responsible or liable for as
obligor, guarantor or otherwise; and

     (g)           amendments, modifications, renewals, extensions, deferrals and refundings
of any of the above types of indebtedness.

Senior Indebtedness shall continue to be Senior Indebtedness and to be entitled to the benefits of
the subordination provisions of this Indenture irrespective of any amendment, modification or
waiver of any term of the Senior Indebtedness, or any extension or renewal of the Senior
Indebtedness.  Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness shall
not include (i) trade accounts payable or indebtedness incurred for the purchase of goods,
materials or property in the ordinary course of business, or for services obtained in the ordinary

9

 

course of business or for other liabilities arising in the ordinary course of business, (ii) any
indebtedness which by its terms is expressly made pari passu with or subordinated to the Debentures
or (iii) obligations of the Company owed to its Subsidiaries.

     “Stated Maturity,” when used with respect to any Debenture or any installment of interest
thereon, means the date specified in such Debenture as the fixed date on which an amount equal to
the Principal Amount of such Debenture or such installment of interest is due and payable.

     “Stock Price” has the meaning set forth in Section 10.10(ii).

     “Subsidiary” means (i) a corporation, a majority of whose Voting Stock is, at the date of
determination, directly or indirectly owned by the Company, by one or more Subsidiaries of the
Company, or by the Company and one or more Subsidiaries of the Company, (ii) a partnership in which
the Company, a Subsidiary of the Company or the Company and one or more Subsidiaries of the
Company, holds a majority interest in the equity capital or profits of such partnership, or (iii)
any other person (other than a corporation or a partnership) in which the Company, a Subsidiary of
the Company, or the Company and one or more Subsidiaries of the Company, directly or indirectly, at
the date of determination, has at least a majority ownership interest. For the avoidance of doubt,
as of the date of this Indenture, neither Sherman Financial Group LLC nor Credit-Based Asset
Servicing and Securitization LLC are Subsidiaries of the Company as defined above.

     “Termination of Trading” has the meaning set forth in Section 10.11(vii).

     “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture,
provided, however, that in the event the TIA is amended after such date, TIA means, to the extent
required by any such amendment, the TIA as so amended.

     “Trading Day” in respect of the Common Stock or any other security means a day during which
trading in securities generally occurs on the NYSE or, if the Company’s Common Stock is not then
listed on the NYSE, on the principal other national or regional securities exchange on which the
Company’s Common Stock is then listed or, if the Company’s Common Stock is not listed on a national
or regional securities exchange, on the principal other market on which the Company’s Common Stock
is then traded.

     “Trigger Event” has the meaning set forth in Section 10.05.

     “Trustee” means the party named as the “Trustee” in the first paragraph of this Indenture
until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any
subsequent such successor or successors.

     “Volume-Weighted Average Price” per share of the Company’s Common Stock on a Trading Day is
the volume-weighted average price per share of the Company’s Common Stock on the NYSE (or such
other national securities exchange or automated quotation system on which the Common Stock is then
listed or authorized for quotation or, if not so listed or authorized for quotation, an amount
determined in good faith by the Company’s Board of

10

 

Directors to be the Fair Market Value of the Common Stock, which determination shall be
conclusive) from 9:30 A.M. to 4:00 P.M., New York City time, on that Trading Day, as displayed by
Bloomberg or such other comparable service determined in good faith by the Company that has
replaced Bloomberg.

     “Voting Stock” means, with respect to any corporation, association, company or business trust,
stock or other securities of the class or classes having general voting power under ordinary
circumstances to elect at least a majority of the board of directors, managers or trustees of such
corporation, association, company or business trust, provided that, for the purposes hereof, stock
or other securities which carry only the right to vote conditionally on the happening of an event
shall not be considered Voting Stock whether or not such event shall have happened.

     SECTION 1.02. Other Definitions.

	 	 	 
	 	 	Defined in
	Term	 	Section
	“Act”
	 	1.04
	“Agent Members”
	 	2.16(v)
	“Conversion Agent”
	 	2.05(i)
	“Conversion Rate Cap”
	 	10.04(iii)
	“Defaulted Interest”
	 	11.02
	“Event of Default”
	 	6.01
	“Legal Holiday”
	 	12.09
	“Legend”
	 	2.16(i)
	“Paying Agent”
	 	2.05(i)
	“Protected Purchaser”
	 	2.11(i)
	“Rating Agency”
	 	2.18(v)
	“Reference Price”
	 	10.04(ii)
	“Registrar”
	 	2.05(i)
	“Tax Event”
	 	2.18(iv)
	“Treasury Dealer”
	 	2.18(iii)
	“Treasury Price”
	 	2.18(iii)
	“Treasury Rate”
	 	2.18(iii)
	“Treasury Security”
	 	2.18(iii)

     SECTION 1.03. Rules of Construction. Unless the context otherwise requires:

     (i) a term has the meaning assigned to it;

     (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance
with United States generally accepted accounting principles as in effect from time to time;

     (iii) “or” is not exclusive;

     (iv) “including” means including, without limitation; and

11

 

     (v) words in the singular include the plural, and words in the plural include the singular.

     SECTION 1.04. Acts of Holders. Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments (which may take the form of an electronic
writing or messaging or otherwise be in accordance with customary procedures of the Depositary or
the Trustee) of substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing (which may be in electronic form); and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of Holders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent (either of which may be in electronic form)
shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

     (i) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution (or electronic delivery) or by a certificate
of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing or delivering such instrument or writing acknowledged to such officer
the execution thereof (or electronic delivery). Where such execution is by a signer acting in a
capacity other than such signer’s individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer’s authority. The fact and date of the execution of any
such instrument or writing (electronic or otherwise), or the authority of the Person executing the
same, may also be proved in any other manner which the Trustee deems sufficient.

     (ii) The ownership of Debentures shall be proved by the register for the Debentures maintained
by the Registrar.

     (iii) Any request, demand, authorization, direction, notice, consent, waiver or other Act of
the Holder of any Debenture shall bind every future Holder of the same Debenture and the holder of
every Debenture issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Debenture.

     (iv) If the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to
a resolution of the Board of Directors, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act may be given before
or after such record date, but only the Holders of record at the Close of Business on such record
date shall be deemed to be Holders for the purposes of determining whether Holders of

12

 

the requisite proportion of outstanding Debentures have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that
purpose the outstanding Debentures shall be computed as of such record date; provided that no such
authorization, agreement or consent by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after the record date.

ARTICLE 2

TERMS OF THE DEBENTURES

     SECTION 2.01. Designation and Principal Amount. There is hereby authorized a series of
Debentures designated the “9% Convertible Junior Subordinated Debentures due 2063,” in the initial
aggregate principal amount of up to $390,000,000; provided that the Company may, without the
consent of the Holders, issue additional Debentures under this Indenture in an unlimited aggregate
principal amount, provided that no such additional debentures may be issued unless fungible with
the Debentures for U.S. federal income tax purposes and such additional Debentures issued in this
manner will constitute a single series with the previously outstanding Debentures.

     SECTION 2.02. Issue Date; Maturity. The Debentures shall mature on April 1, 2063 (the “Final
Maturity Date”), except in the case of (i) prior conversion pursuant to Section 10.01 and Section
10.11 or (ii) the occurrence and continuation of an Event of Default as a result of which the
Debentures are accelerated prior to maturity.

     SECTION 2.03. Form and Dating. The Debentures and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit A, which is a part of this Indenture. The Debentures
may have notations, legends or endorsements required by law, stock exchange rule or usage (provided
that any such notation, legend or endorsement required by usage is in a form acceptable to the
Company). The Company shall provide any such notations, legends or endorsements to the Trustee in
writing. Each Debenture shall be dated the date of its authentication. The Debentures are being
offered and sold by the Company in transactions exempt from, or not subject to, the registration
requirements of the Securities Act.

     (i) Restricted Global Securities. All of the Debentures are initially being offered and sold
to qualified institutional buyers as defined in Rule 144A in reliance on Rule 144A under the
Securities Act and shall be issued initially in the form of one or more Restricted Global
Securities, which shall be deposited on behalf of the purchasers of the securities represented
thereby with the Trustee, at its Corporate Trust Office, as custodian for the Depositary, and
registered in the name of its nominee, Cede & Co. (or any successor thereto), for the accounts of
participants in the Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided.

     (ii) Global Securities in General. Each Global Security shall represent such of the
outstanding Debentures as shall be specified therein and each shall provide that it shall represent
the aggregate Principal Amount of outstanding Debentures from time to time endorsed thereon and
that the aggregate Principal Amount of outstanding Debentures represented thereby may

13

 

from time to time be reduced or increased, as appropriate, to reflect exchanges, redemptions
and conversions. Except as provided in this Section 2.03 or Sections 2.10 or 2.16, owners of
beneficial interests in Global Securities will not be entitled to receive physical delivery of
Certificated Securities.

     Any adjustment of the aggregate Principal Amount of a Global Security to reflect the amount of
any increase or decrease in the Principal Amount of outstanding Debentures represented thereby
shall be made by the Trustee in accordance with instructions given by the Holder thereof as
required by Section 2.16 hereof and shall be made on the records of the Trustee and the Depositary,
subject in each case to compliance with Applicable Procedures.

     (iii) Book-Entry Provisions. This Section 2.03(iii) shall apply only to Global Securities
deposited with or on behalf of the Depositary. The Company shall execute and the Trustee shall, in
accordance with this Section 2.03(iii), authenticate and deliver initially one or more Global
Securities that (i) shall be registered in the name of the Depositary, (ii) shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary’s instructions and (iii) shall bear
legends substantially to the following effect:

     “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), 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.

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS, IN WHOLE BUT NOT IN
PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.”

     (iv) Certificated Securities. Debentures not issued as interests in the Global Securities
will be issued in certificated form substantially in the form of Exhibit A attached hereto.

     SECTION 2.04. Execution and Authentication.

     (i) The Debentures shall be executed on behalf of the Company by any Officer. The signature
of the Officer on the Debentures may be manual or facsimile.

14

 

     (ii) Debentures bearing the manual or facsimile signatures of an individual who was at the
time of the execution of the Debentures the proper Officer of the Company shall bind the Company,
notwithstanding that such individual has ceased to hold such office prior to the authentication and
delivery of such Debentures or did not hold such office at the date of authentication of such
Debentures.

     (iii) No Debenture shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Debenture a certificate of authentication
substantially in the form provided for herein duly executed by the Trustee by manual signature of
an authorized officer of the Trustee, and such certificate upon any Debenture shall be conclusive
evidence, and the only evidence, that such Debenture has been duly authenticated and delivered
hereunder.

     (iv) Subject to the terms of Section 12.04 and 12.05 hereof, the Trustee shall authenticate
and deliver Debentures for original issue in an aggregate Principal Amount of up to $390 million
(subject to Section 2.11 hereof) upon a Company Order without any further action by the Company.

     (v) The Debentures shall be issued only in registered form without coupons and only in
denominations of $1,000 of Principal Amount and any integral multiple thereof.

     (vi) The Trustee shall have the right to decline to authenticate and deliver any Debentures
under this Section if the Trustee, being advised by counsel, determines that such action may not be
lawfully taken or if the Trustee in good faith shall determine that such action would expose the
Trustee to personal liability to existing Holders.

     SECTION 2.05. Registrar, Paying Agent and Conversion Agent.

     (i) The Company shall maintain an office or agency where Debentures may be presented for
registration of transfer or for exchange for other Debentures (“Registrar”), an office or agency
where Debentures may be presented for purchase or payment (“Paying Agent”) and an office or agency
where Debentures may be presented for conversion into Common Stock (“Conversion Agent”). The
Registrar shall keep a register (each such register being sometimes referred to herein as the
“Security Register”) of the Debentures and of their registration of transfer and exchange. The
Company may have one or more co-registrars, one or more additional paying agents and one or more
additional conversion agents. The term Paying Agent includes any additional paying agent,
including any named pursuant to Section 4.04. The term Conversion Agent includes any additional
conversion agent, including any named pursuant to Section 4.04.

     (ii) The Company shall enter into an appropriate agency agreement with any Registrar or
co-registrar, Paying Agent or Conversion Agent (other than the Trustee). The agreement shall
implement the provisions of this Indenture that relate to such agent. The Company shall notify the
Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.07. The

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Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent,
Registrar, Conversion Agent or co-registrar.

     (iii) The Company initially appoints the Trustee as Registrar, Conversion Agent and Paying
Agent in connection with the Debentures.

     SECTION 2.06. Paying Agent to Hold Money and Debentures in Trust. Except as otherwise
provided herein, by no later than 10:00 a.m., New York City time, on or prior to each due date of
payments in respect of any Debenture, the Company shall deposit with the Paying Agent a sum of
money (in immediately available funds if deposited on the due date) or Common Stock sufficient to
make such payments when so becoming due. The Company shall require each Paying Agent (other than
the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all money and Common Stock held by the Paying Agent for the making of
payments in respect of the Debentures and shall notify the Trustee of any default by the Company in
making any such payment. At any time during the continuance of any such default, the Paying Agent
shall, upon the written request of the Trustee, forthwith pay to the Trustee all money and Common
Stock so held in trust. If the Company or a Subsidiary or an Affiliate of either of them acts as
Paying Agent, it shall segregate the money and Common Stock held by it as Paying Agent and hold it
as a separate trust fund. The Company at any time may require a Paying Agent to pay all money and
Common Stock held by it to the Trustee and to account for any funds and Common Stock disbursed by
it. Upon doing so, the Paying Agent shall have no further liability for the money or Common Stock.

     SECTION 2.07. Securityholder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, the Company shall cause to be furnished to the Trustee at
least semiannually on June 1 and December 1 a listing of Holders dated within 15 days of the date
on which the list is furnished and at such other times as the Trustee may request in writing a list
in such form and as of such date as the Trustee may reasonably require of the names and addresses
of Holders.

     SECTION 2.08. Interest.

     (i) The Debentures will accrue interest from March 28, 2008 at a rate per annum of 9% (the
“Debenture Interest Rate”) of the principal amount of $1,000 per Debenture, payable, subject to the
provisions of Section 2.09, semi-annually in arrears on April 1 and October 1 of each year (each,
an “Interest Payment Date”), commencing on October 1, 2008.

     (A) The amount of interest payable for any Interest Payment Period will be computed as
follows:

     (x) for any full Interest Payment Period, on the basis of a 360-day year of
twelve 30-day months;

     (y) for any period shorter than a full Interest Payment Period, on the basis of
30-day months; and

16

 

     (z) for any period shorter than a 30-day month, on the basis of the actual
number of days elapsed in that period.

     (B) In the event that any Interest Payment Date is not a Business Day, payment of the
interest payable on such Interest Payment Date shall be made on the next succeeding day that
is a Business Day without any interest or other payment in respect of any such delay.

     (ii) Interest will accrue and compound semi-annually at the Debenture Interest Rate from and
including the date of initial issuance or the last Interest Payment Date in respect of which
interest has been paid or duly provided for, as applicable, to but excluding the next succeeding
Interest Payment Date on which the interest is actually paid, the Conversion Date or the Final
Maturity Date, as the case may be.

     (iii) Interest not paid on any Interest Payment Date, including any interest deferred during
any Optional Deferral Period, will accrue and compound semi-annually at the Debenture Interest
Rate, to the extent permitted by applicable law. Subject to Section 2.08(i)(B), such interest
shall accrue and compound to the date that it is actually paid.

     (iv) For so long as the Debentures are held in book-entry-only form, interest shall be paid on
each Interest Payment Date to the Person in whose name a given Debenture is registered in the
Security Register at 5:00 p.m., New York City time, on the last Business Day prior to the Interest
Payment Date (each such date a “Regular Record Date”). In the event that the Debentures are no
longer held in book-entry-only form or are not represented by Global Securities, the Company may
select different Regular Record Dates, which must each be at least one Business Day before the
relevant Interest Payment Date.

     SECTION 2.09. Optional Deferral of Interest.

     (i) Subject to Section 4.06, as long as no Event of Default has occurred and is continuing,
the Company shall have the right at any time and from time to time, to defer payments of interest
on the Debentures by extending the Interest Payment Period on the Debentures for a period not
exceeding 10 years, in the aggregate, following the Interest Payment Date on which interest was
deferred (an “Optional Deferral Period”). During an Optional Deferral Period, deferred interest on
the Debentures shall not be due and payable, but will continue to accrue and compound semi-annually
to the extent permitted by applicable law at the Debenture Interest Rate.

     (ii) An Optional Deferral Period shall terminate on such date as all accrued and unpaid
interest, together with Compounded Interest, if any, has been paid by the Company, provided that in
no event shall an Optional Deferral Period extend beyond the date which is 10 years following the
commencement of the Optional Deferral Period, or beyond the Final Maturity Date of the Debentures.
Upon termination of an Optional Deferral Period, the Company may commence a new Optional Deferral
Period, subject to the other conditions in this Section 2.09, there being no limit to the number
of such new Optional Deferral Periods the Company may elect.

17

 

     (iii) During an Optional Deferral Period, the Company shall be subject to the covenants set
forth in Section 4.05.

     (iv) The Company shall give written notice of its election to defer payments of interest on
the Debentures for an Optional Deferral Period, which such notice shall be irrevocable, at least 15
and not more than 60 days prior to the first Interest Payment Date during such Optional Deferral
Period as follows:

     (A) by first class mail, postage prepaid, addressed to the Holders of Debentures; or

     (B) as to any Global Security registered in the name of DTC or its nominee, by e-mail,
fax, or any other manner as agreed to by the Company and the Holders of any such Global
Security.

     A copy of any such notice to Holders of Debentures or Global Securities, if given by the
Company, shall be mailed or delivered to the Trustee at the same time.

     (v) The Company shall give written notice to the Holders of Debentures, with a copy to the
Trustee, of its election to terminate an Optional Deferral Period at least 15 days but not more
than 60 days prior to the Interest Payment Date upon which the Optional Deferral Period shall
terminate and all Deferred Interest shall be paid.

     (vi) By acquiring a Debenture or an interest therein, each Holder or beneficial owner of a
Debenture, as the case may be, agrees that if there is an Event of Default pursuant to Section
6.01(i)(D) prior to the Final Maturity Date or conversion of the Debentures, any unpaid Deferred
Interest, or Compounded Interest thereon, in excess of the amount of such interest that is equal to
two years of accrued and unpaid interest (including Compounded Interest on the two earliest years
of Deferred Interest) on the Debentures (the “Foregone Interest”) shall not be due and payable and
no such Holder or beneficial owner will have any claim for, and thus any right to receive, such
Foregone Interest; provided that such limitation shall not reduce the amounts holders of Senior
Indebtedness would have been entitled to receive in the absence thereof. Subject to the foregoing,
any Deferred Interest will in all events be due and payable upon the Final Maturity Date.

     (vii) At the termination of any Optional Deferral Period, the Company shall pay all Deferred
Interest then accrued and unpaid, together with Compounded Interest, on the Interest Payment Date
on which such Optional Deferral Period terminates. Unless otherwise terminated pursuant to Section
2.09(v), an Optional Deferral Period will be deemed to terminate upon any acceleration of the Final
Maturity Date.

     (viii) In no event shall any Optional Deferral Period (i) exceed 10 consecutive years
following the first Interest Payment Date on which any interest payment was deferred pursuant to
Section 2.09, (ii) unless Deferred Interest is satisfied using the Alternative Payment Mechanism,
end on a date other than an Interest Payment Date, or (iii) extend beyond the Final Maturity Date
or the earlier acceleration of the Debentures pursuant to Section 6.02. For purposes of
determining compliance with the foregoing limitation on any Optional Deferral Period, (x) only when
all Deferred Interest has been paid shall any Optional Deferral Period end; and (y) after the

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commencement of an Optional Deferral Period, the period from the first Interest Payment Date
for which interest is deferred pursuant to Section 2.09 and ending on the date on which all
Deferred Interest, including Compounded Interest, is paid in full, shall be included for purposes
of calculating the length of an Optional Deferral Period.

     SECTION 2.10. Transfer and Conversion. Subject to Section 2.16 hereof:

     (i) upon surrender for registration of transfer of any Debenture, together with a written
instrument of transfer satisfactory to the Registrar duly executed by the Holder or such Holder’s
attorney duly authorized in writing, at the office or agency of the Company designated as Registrar
or co-registrar pursuant to Section 2.05, the Company shall execute, and the Trustee upon receipt
of a Company Order shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Debentures of any authorized denomination or denominations, of a like
aggregate Principal Amount. The Company shall not charge a service charge for any registration of
transfer or exchange, but the Company or the Trustee may require payment of a sum sufficient to pay
all taxes, assessments or other governmental charges that may be imposed in connection with the
registration of transfer or exchange of the Debentures from the Holder requesting such registration
of transfer or exchange.

     At the option of the Holder, Certificated Securities may be exchanged for other Debentures of
any authorized denomination or denominations, of a like aggregate Principal Amount, upon surrender
of the Debentures to be exchanged, together with a written instrument of transfer satisfactory to
the Registrar duly executed by the Holder or such Holder’s attorney duly authorized in writing, at
such office or agency. Whenever any Debentures are so surrendered for exchange, the Company shall
execute, and the Trustee upon receipt of a Company Order shall authenticate and deliver, the
Debentures which the Holder making the exchange is entitled to receive.

     (ii) Notwithstanding any provision to the contrary herein, so long as a Global Security
remains outstanding and is held by or on behalf of the Depositary, transfers of a Global Security,
in whole or in part, shall be made only in accordance with Section 2.16 and this Section 2.10(ii).
Transfers of a Global Security shall be limited to transfers of such Global Security in whole, or
in part, to nominees of the Depositary or to a successor of the Depositary or such successor’s
nominee.

     (iii) Successive registrations and registrations of transfers and exchanges as aforesaid may
be made from time to time as desired, and each such registration shall be noted on the register for
the Debentures.

     (iv) Any Registrar appointed pursuant to Section 2.05 hereof shall provide to the Trustee such
information as the Trustee may reasonably require in connection with the delivery by such Registrar
of Debentures upon registration of transfer or exchange of Debentures.

     (v) No Registrar shall be required to make registrations of transfer or exchange of Debentures
during any periods designated in the text of the Debentures or in this Indenture as periods during
which such registration of transfers and exchanges need not be made.

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     SECTION 2.11. Replacement Debentures.

     (i) If (A) any mutilated Debenture is surrendered to the Trustee, or (B) the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Debenture,
and there is delivered to the Company and the Trustee such security or indemnity as may be required
by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee
that such Debenture has been acquired by a protected purchaser within the meaning of Article 8 of
the Uniform Commercial Code as in effect from time to time in the State of New York (a “Protected
Purchaser”), the Company shall execute and upon a Company Request the Trustee shall authenticate
and deliver, in exchange for any such mutilated Debenture or in lieu of any such destroyed, lost or
stolen Debenture, a new Debenture of like tenor and Principal Amount, bearing a number not
contemporaneously outstanding.

     (ii) In case any such mutilated, destroyed, lost or stolen Debenture has become or is about to
become due and payable, or is about to be purchased by the Company pursuant to Article 10 hereof,
the Company in its discretion may, instead of issuing a new Debenture, pay or purchase such
Debenture, as the case may be.

     (iii) Upon the issuance of any new Debentures under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     (iv) Every new Debenture issued pursuant to this Section in lieu of any mutilated, destroyed,
lost or stolen Debenture shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Debenture shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Debentures duly issued hereunder.

     (v) The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Debentures.

     SECTION 2.12. Outstanding Debentures; Determinations of Holders’ Action.

     (i) Debentures outstanding at any time are all the Debentures authenticated by the Trustee
except for those cancelled by it, those paid pursuant to Section 2.11 and delivered to it for
cancellation and those described in this Section 2.12 as not outstanding. A Debenture does not
cease to be outstanding because the Company or an Affiliate thereof holds the Debenture; provided,
however, that in determining whether the Holders of the requisite Principal Amount of Debentures
have given or concurred in any request, demand, authorization, direction, notice, consent or waiver
hereunder, Debentures owned by the Company or any other obligor upon the Debentures or any
Affiliate of the Company or such other obligor shall be disregarded and deemed not to be
outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Debentures which a
Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Subject
to the foregoing, only Debentures outstanding at the time of such

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determination shall be considered in any such determination (including, without limitation,
determinations pursuant to Articles 6 and 9).

     (ii) If a Debenture is replaced pursuant to Section 2.11, the replaced Debenture ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to each of them that the
replaced Debenture is held by a Protected Purchaser.

     (iii) If the Paying Agent holds, in accordance with this Indenture, on Stated Maturity, money
or securities, if permitted hereunder, sufficient to pay Debentures payable on that date, then
immediately after such Stated Maturity, such Debentures shall cease to be outstanding and interest
on such Debentures shall cease to accrue whether or not the Debenture is delivered to the Paying
Agent.

     (iv) If a Debenture is converted in accordance with Article 10, then from and after the time
of conversion on the Conversion Date, such Debenture shall cease to be outstanding and interest
shall cease to accrue on such Debenture.

     SECTION 2.13. Temporary Debentures.

     (i) Pending the preparation of definitive Debentures, the Company may execute, and the Trustee
upon receipt of a Company Order shall authenticate and deliver, temporary Debentures which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Debentures in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Debentures may determine, as conclusively evidenced by their execution of
such Debentures.

     (ii) If temporary Debentures are issued, the Company will cause definitive Debentures to be
prepared without unreasonable delay. After the preparation of definitive Debentures, the temporary
Debentures shall be exchangeable for definitive Debentures upon surrender of the temporary
Debentures at the office or agency of the Company designated for such purpose pursuant to Section
2.05, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Debentures, the Company shall execute and the Trustee upon receipt of a Company Order shall
authenticate and deliver in exchange therefor a like Principal Amount of definitive Debentures of
authorized denominations. Until so exchanged the temporary Debentures shall in all respects be
entitled to the same benefits under this Indenture as definitive Debentures.

     SECTION 2.14. Cancellation. All Debentures surrendered for payment, conversion or
registration of transfer or exchange shall, if surrendered to any person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Debentures previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and all Debentures so
delivered shall be promptly cancelled by the Trustee. The Company may not issue new Debentures to
replace Debentures it has paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article 10. No Debentures shall be authenticated in lieu of or in exchange
for any Debentures cancelled as provided in this Section, except as expressly

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permitted by this Indenture. All cancelled Debentures held by the Trustee shall be disposed
of by the Trustee in accordance with the Trustee’s customary procedure.

     SECTION 2.15. Persons Deemed Owners. Prior to due presentment of a Debenture for registration
of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Debenture is registered as the owner of such Debenture for the purpose of
receiving payment of principal of the Debenture in respect thereof, and interest thereon, for the
purpose of conversion and for all other purposes whatsoever, whether or not such Debenture be
overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

     SECTION 2.16. Legend; Additional Transfer and Exchange Requirements.

     (i) If Debentures are issued upon the transfer, exchange or replacement of Debentures subject
to restrictions on transfer and bearing the legends set forth in Section 2.16(vi) (collectively,
the “Legend”), or if a request is made to remove the Legend on a Debenture, the Debentures so
issued shall bear the Legend, or the Legend shall not be removed, as the case may be, unless there
is delivered to the Company and the Registrar such satisfactory evidence, which shall include an
Opinion of Counsel, as may be reasonably required by the Company and the Registrar, that neither
the Legend nor the restrictions on transfer set forth therein are required to ensure that transfers
thereof comply with the provisions of Rule 144A or Rule 144 under the Securities Act or that such
Debentures are not “restricted” within the meaning of Rule 144 under the Securities Act. Upon
provision of such satisfactory evidence if requested, the Trustee, upon Company Order, shall
authenticate and deliver a Debenture that does not bear the Legend. If the Legend is removed from
the face of a Debenture and the Debenture is subsequently held by an Affiliate of the Company, the
Legend shall be reinstated. The Company will, as promptly as practicable after the date which is
six months after the original issue date of any Debentures request that the Trustee authenticate
and deliver Debentures that do not bear the Legend in exchange for any Debentures issued on such
issue date that bear the Legend and shall provide to the Trustee a Company Order and an appropriate
Opinion of Counsel.

     (ii) Subject to Section 2.16(iii)(A) and in compliance with Section 2.16(iv), every Debenture
shall be subject to the restrictions on transfer provided in the Legend. Whenever any Restricted
Security other than a Restricted Global Security is presented or surrendered for registration of
transfer or in exchange for a Debenture registered in a name other than that of the Holder, such
Debenture must be accompanied by a certificate in substantially the form set forth in Exhibit A,
dated the date of such surrender and signed by the Holder of such Debenture, as to compliance with
such restrictions on transfer. The Registrar shall not be required to accept for such registration
of transfer or exchange any Debenture not so accompanied by a properly completed certificate.

     (iii) Notwithstanding any other provisions of this Indenture or the Debentures, (i) transfers
of a Global Security, in whole or in part, shall be made only in accordance with Section 2.10 and
Section 2.16(iii)(A), (ii) transfer of a beneficial interest in a Global Security for a
Certificated Security shall comply with Section 2.10 and Section 2.16(iii)(B) below, and (iii)
transfers of a Certificated Security shall comply with Section 2.10 and Section 2.16(iii)(C) and
(D) below.

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     (A) Transfer of Global Security. A Global Security may not be transferred, in whole or
in part, to any Person other than the Depositary or a nominee or any successor thereof, and
no such transfer to any such other Person may be registered; provided that this clause (A)
shall not prohibit any transfer of a Debenture that is issued in exchange for a Global
Security but is not itself a Global Security. No transfer of a Debenture to any Person
shall be effective under this Indenture or the Debentures unless and until such Debenture
has been registered in the name of such Person. Nothing in this Section 2.16(iii)(A) shall
prohibit or render ineffective any transfer of a beneficial interest in a Global Security
effected in accordance with the other provisions of this Section 2.16(iii).

     (B) Restrictions on Transfer of a Beneficial Interest in a Global Security for a
Certificated Security. A beneficial interest in a Global Security may not be exchanged for
a Certificated Security except upon satisfaction of the requirements set forth below. Upon
receipt by the Trustee of a request for transfer of a beneficial interest in a Global
Security in accordance with Applicable Procedures for a Certificated Security in the form
satisfactory to the Trustee, together with written instructions to the Trustee to make, or
direct the Registrar to make, an adjustment on its books and records with respect to such
Global Security to reflect a decrease in the aggregate Principal Amount of the Debentures
represented by the Global Security, such instructions to contain information regarding the
Depositary account to be credited with such decrease, then the Trustee shall cause, or
direct the Registrar to cause, in accordance with the standing instructions and procedures
existing between the Depositary and the Registrar, the aggregate Principal Amount of
Debentures represented by the Global Security to be decreased by the aggregate Principal
Amount of the Certificated Security to be issued, shall authenticate and deliver such
Certificated Security and shall debit or cause to be debited to the account of the Person
specified in such instructions a beneficial interest in the Global Security equal to the
Principal Amount of the Certificated Security so issued.

     (C) Transfer and Exchange of Certificated Securities. When Certificated Securities are
presented to the Registrar with a request:

     (x) to register the transfer of such Certificated Securities; or

     (y) to exchange such Certificated Securities for an equal Principal Amount of
Certificated Securities of other authorized denominations,

the Registrar shall register the transfer or make the exchange as requested if its
reasonable requirements for such transaction are met; provided, however, that the
Certificated Securities surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory
to the Company and the Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing.

     (D) Restrictions on Transfer of a Certificated Security for a Beneficial Interest in a
Global Security. A Certificated Security may not be exchanged for a beneficial interest in
a Global Security except upon satisfaction of the requirements set forth below.

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     Upon receipt by the Trustee of a Certificated Security, duly endorsed or accompanied by
appropriate instruments of transfer, in form satisfactory to the Trustee, together with written
instructions directing the Trustee to make, or to direct the Registrar to make, an adjustment on
its books and records with respect to such Global Security to reflect an increase in the aggregate
Principal Amount of the Debentures represented by the Global Security, such instructions to contain
information regarding the Depositary account to be credited with such increase, then the Trustee
shall cancel such Certificated Security and cause, or direct the Registrar to cause, in accordance
with the standing instructions and procedures existing between the Depositary and the Registrar,
the aggregate Principal Amount of Debentures represented by the Global Security to be increased by
the aggregate Principal Amount of the Certificated Security to be exchanged, and shall credit or
cause to be credited to the account of the Person specified in such instructions a beneficial
interest in the Global Security equal to the Principal Amount of the Certificated Security so
cancelled. If no Global Securities are then outstanding, the Company shall issue and the Trustee
upon receipt of a Company Order shall authenticate a new Global Security in the appropriate
Principal Amount.

     (iv) The restrictions imposed by the Legend upon the transferability of any Debenture shall
cease and terminate when such Debenture has been transferred in compliance with Rule 144 under the
Securities Act (or any successor provision thereto) or, if earlier, when the Debentures may be
transferred under Rule 144 under the Securities Act without restriction. Any Debenture as to which
such restrictions on transfer shall have expired in accordance with their terms or shall have
terminated may, upon a surrender of such Debenture for exchange to the Registrar in accordance with
the provisions of this Section 2.16 (accompanied, in the event that such restrictions on transfer
have terminated by reason of a transfer in compliance with Rule 144 or any successor provision, by
an Opinion of Counsel reasonably acceptable to the Company and the Registrar and addressed to the
Company and the Registrar, to the effect that the transfer of such Debenture has been made in
compliance with Rule 144 or such successor provision), be exchanged for a new Debenture, of like
tenor and aggregate Principal Amount, which shall not bear the restrictive Legend. The Trustee or
the Registrar shall not be liable for any action taken or omitted to be taken by it in good faith
in accordance with the aforementioned Opinion of Counsel.

     As used in Sections 2.16(ii) and (iv), the term “transfer” encompasses any sale, pledge,
transfer, hypothecation or other disposition of any Debenture.

     (v) The provisions of clauses (A), (B), (C), (D) and (E) below shall apply only to Global
Securities:

     (A) Notwithstanding any other provisions of this Indenture or the Debentures, except as
provided in Section 2.16(iii)(B), a Global Security shall not be exchanged in whole or in
part for a Debenture registered in the name of any Person other than the Depositary or one
or more nominees thereof, provided that a Global Security may be exchanged for Debentures
registered in the names of any person designated by the Depositary in the event that (i) the
Depositary has notified the Company that it is unwilling or unable to continue as Depositary
for such Global Security or such Depositary has ceased to be a “clearing agency” registered
under the Exchange Act, and a successor Depositary is not appointed by the Company within 90
days or (ii) an Event of

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Default has occurred and is continuing with respect to the Debentures. Any Global
Security exchanged pursuant to clause (i) above shall be so exchanged in whole and not in
part, and any Global Security exchanged pursuant to clause (ii) above may be exchanged in
whole or from time to time in part as directed by the Depositary. Any Debenture issued in
exchange for a Global Security or any portion thereof shall be a Global Security; provided
that any such Debenture so issued that is registered in the name of a Person other than the
Depositary or a nominee thereof shall not be a Global Security.

     (B) Debentures issued in exchange for a Global Security or any portion thereof shall be
issued in definitive, fully registered form, without interest coupons, shall have an
aggregate Principal Amount equal to that of such Global Security or portion thereof to be so
exchanged, shall be registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear the applicable legends provided for herein. Any
Global Security to be exchanged in whole shall be surrendered by the Depositary to the
Trustee, as Registrar. With regard to any Global Security to be exchanged in part, either
such Global Security shall be so surrendered for exchange or, if the Trustee is acting as
custodian for the Depositary or its nominee with respect to such Global Security, the
Principal Amount thereof shall be reduced, by an amount equal to the portion thereof to be
so exchanged, by means of an appropriate adjustment made on the records of the Trustee.
Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the
Debenture issuable on such exchange to or upon the order of the Depositary or an authorized
representative thereof.

     (C) Subject to the provisions of clause (E) below, the registered Holder may grant
proxies and otherwise authorize any Person, including Agent Members (as defined below) and
persons that may hold interests through Agent Members, to take any action which a holder is
entitled to take under this Indenture or the Debentures.

     (D) In the event of the occurrence of any of the events specified in clause (A) above,
the Company will promptly make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form, without interest coupons.

     (E) Neither any members of, or participants in, the Depositary (collectively, the
“Agent Members”) nor any other Persons on whose behalf Agent Members may act shall have any
rights under this Indenture with respect to any Global Security registered in the name of
the Depositary or any nominee thereof, or under any such Global Security, and the Depositary
or such nominee, as the case may be, may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner and holder of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or such
nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any
other person on whose behalf an Agent Member may act, the operation of customary practices
of such Persons governing the exercise of the rights of a holder of any Debenture.

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     (vi) Until the expiration of the holding period applicable to sales thereof under Rule 144
under the Securities Act (or any successor provision thereto), any stock certificate representing
Common Stock issued upon conversion of any Debenture shall bear a legend in substantially the
following form, unless such Common Stock has been issued upon conversion of Debentures that have
been transferred pursuant to Rule 144 under the Securities Act (or any successor provision
thereto), or unless otherwise agreed by the Company in writing with written notice thereof to the
transfer agent:

     THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS,
AND, ACCORDINGLY, MAY NOT BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION UNDER THE SECURITIES ACT.

     BY ITS ACQUISITION HEREOF, THE HOLDER AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THE
COMMON STOCK EVIDENCED HEREBY PRIOR TO THE DATE THAT IS SIX MONTHS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH MGIC INVESTMENT CORPORATION (THE
“COMPANY”) OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THE COMMON STOCK EVIDENCED
HEREBY (OR ANY PREDECESSOR OF THE COMMON STOCK EVIDENCED HEREBY) (THE “RESALE RESTRICTION
TERMINATION DATE”) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (C)
PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRANSFER AGENT’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) PRIOR TO THE RESALE RESTRICTION TERMINATION
DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, TO REQUIRE
THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS CERTIFICATE
IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRANSFER AGENT. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

     Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares
of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common
Stock, which shall not bear the restrictive legend required by this section.

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     (vii) Until the expiration of the holding period applicable to sales thereof under Rule 144
under the Securities Act (or any successor provision thereto), any certificate representing any
Debenture shall bear a legend in substantially the following form, unless such Debenture has been
transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto), or unless otherwise agreed by the Company in writing with written notice thereof to the
transfer agent:

     THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR ANY
STATE SECURITIES LAWS. NEITHER THIS NOTE, THE SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.

     BY ITS ACQUISITION HEREOF, THE HOLDER AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
NOTE PRIOR TO THE DATE WHICH IS SIX MONTHS AFTER THE LATER OF THE LAST ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER
OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) (THE “RESALE RESTRICTION TERMINATION DATE”)
ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON IT REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, TO REQUIRE
THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

     Any such Debenture as to which such restrictions on transfer shall have expired in accordance
with their terms or as to which the conditions for removal of the foregoing legend set forth
therein have been satisfied may, upon surrender of the certificates representing such Debenture for
exchange in accordance with the procedures of the transfer agent, be exchanged

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for a new certificate or certificates for a like amount of Debentures, which shall not bear
the restrictive legend required by this section.

     SECTION 2.17. CUSIP Numbers. The Company in issuing the Debentures may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Debentures or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Debentures, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing
of any change in the CUSIP numbers.

     SECTION 2.18. Redemption

     (i) The Debentures:

     (A) are redeemable prior to April 6, 2013, in whole but not in part, at the Company’s
option only within 90 days of the occurrence of a “tax event” or “rating agency event” (as
defined below) at the redemption price set forth below;

     (B) are redeemable on and after April 6, 2013 at the Company’s option, in whole or in
part from time to time, at a redemption price equal to 100% of the Principal Amount of the
Debentures being redeemed plus any accrued and unpaid interest if the Closing Sale Price of
the Company’s Common Stock exceeds 130% of the then prevailing Conversion Price of the
Debentures for at least 20 or the 30 Trading Days preceding notice of the redemption (and on
the last of the Trading Days); and

     (C) are not subject to any sinking fund or similar provisions.

     (ii) In the case of any redemption prior to April 6, 2013, the redemption price will be equal
to the greater of (A) 100% of the principal amount of the debentures being redeemed and (B) the
present value of a principal payment on April 6, 2063 and scheduled payments of interest that would
have accrued from the redemption date to April 6, 2063 on the debentures being redeemed, discounted
to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at a discount rate equal to the Treasury Rate (as defined below) plus 50 basis points, in
each case plus accrued and unpaid interest to the redemption date.

     (iii) For the purposes of clause (ii)(B) above:

     (A) “Treasury Rate” means the semi-annual equivalent yield to maturity of the “treasury
security” that corresponds to the “treasury price” (calculated in accordance with standard
market practice and computed as of the second trading day preceding the redemption date);

     (B) “Treasury Security” means the United States Treasury security that the “treasury
dealer” determines would be appropriate to use, at the time of determination and in
accordance with standard market practice, in pricing the debentures being redeemed in a
tender offer based on a spread to United States Treasury yields;

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     (C) “Treasury Price” means the bid-side price for the treasury security as of the third
trading day preceding the redemption date, as set forth in the daily statistical release (or
any successor release) published by the Federal Reserve Bank of New York on that trading day
and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities”, except
that: (i) if that release (or any successor release) is not published or does not contain
that price information on that trading day; or (ii) if the treasury dealer determines that
the price information is not reasonably reflective of the actual bid-side price of the
treasury security prevailing at 3:30 p.m., New York City time, on that trading day, then
treasury price will instead mean the bid-side price for the treasury security at or around
3:30 p.m., New York City time, on that trading day (expressed on a next trading day
settlement basis) as determined by the treasury dealer through such alternative means as are
commercially reasonable under the circumstances; and

     (D) “Treasury Dealer” means Banc of America Securities LLC (or its successors) or, if
Banc of America Securities LLC (or its successors) refuse to act as treasury dealers for
this purpose or cease to be primary U.S. Government securities dealers, another nationally
recognized investment banking firm that is a primary U.S. Government securities dealer
specified by the Company for these purposes.

     (iv) “Tax Event” means the receipt by the Company of an opinion of counsel experienced in such
matters to the effect that, as a result of any:

     (A) amendment to or change (including any officially announced proposed change) in the
laws or regulations of the United States or any political subdivision or taxing authority of
or in the United States that is effective on or after the date of issuance of the
Debentures;

     (B) official administrative decision or judicial decision or administrative action or
other official pronouncement interpreting or applying those laws or regulations that is
announced on or after the date of issuance of the Debentures; or

     (C) threatened challenge asserted in connection with an audit of the Company or the
Company’s Subsidiaries, or a threatened challenge asserted in writing against the Company,
any of the Company’s Subsidiaries or any other taxpayer that has raised capital through the
issuance of securities that are substantially similar to the Debentures and which securities
were rated investment grade at the time of issue of such securities;

     there is more than an insubstantial increase in the risk that interest payable by the Company
on the Debentures is not, or within 90 days of the date of such opinion will not be, deductible by
the Company, in whole or in part, for United States federal income tax purposes.

     (v) “Rating Agency Event” means that any nationally recognized statistical rating organization
within the meaning of Section 3(a)(62) under the Exchange Act that then publishes a rating for the
Company (a “rating agency”) amends, clarifies or changes the criteria it uses to assign equity
credit to securities such as the Debentures, which amendment, clarification or change results in:

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     (A) the shortening of the length of time the Debentures are assigned a particular level
of equity credit by that rating agency as compared to the length of time they would have
been assigned that level of equity credit by that rating agency or its predecessor on the
issue date of the Debentures; or

     (B) the lowering of the equity credit (including up to a lesser amount) assigned to the
Debentures by that rating agency as compared to the equity credit assigned by that rating
agency or its predecessor on the issue date of the Debentures.

     (vi) Notice of any redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder of Debentures to be redeemed at its registered address. Unless
the Company defaults in payment of the redemption price and accrued interest, on and after the
redemption date, interest will cease to accrue on the Debentures or portions thereof called for
redemption.

     (vii) The Company may not redeem the Debentures in part if the Principal Amount has been
accelerated and such acceleration has not been rescinded or unless all accrued and unpaid interest,
including deferred interest, has been paid in full on all outstanding Debentures for all interest
periods terminating on or before the redemption date.

     (viii) In the event of any redemption, neither the Company nor the Trustee will be required
to:

     (A) issue, register the transfer of, or exchange, Debentures during a period beginning
at the opening of business 15 days before the day of selection for redemption of Debentures
and ending at the Close of Business on the day of mailing of notice of redemption; or

     (B) transfer or exchange any Debentures so selected for redemption, except, in the case
of any Debentures being redeemed in part, any portion thereof not to be redeemed.

ARTICLE 3

SUBORDINATION

     SECTION 3.01. Agreement to Subordinate. The Company agrees, and each Holder by accepting a
Debenture agrees, that the payment of all obligations owing in respect of the Debentures is
subordinated in right of payment, to the extent and in the manner provided in this Article Three,
to the prior payment in full of all existing and future Senior Indebtedness of the Company and that
the subordination is for the benefit of and enforceable by the holders of such Senior Indebtedness.
All provisions of this Article 3 shall be subject to Section 3.11.

     SECTION 3.02. Liquidation, Dissolution, Bankruptcy. All existing and future Senior
Indebtedness, which will include, without limitation, interest accruing after the commencement of
any proceeding, assignment or marshalling of assets described below, will first be paid in full
before any payment, whether in cash, securities or other property, will be made by the Company on
account of the Debentures in the event of:

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     (i) any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment,
composition or other similar proceeding relating to the Company or its property;

     (ii) any proceeding for the liquidation, dissolution or other winding-up of the Company,
voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings;

     (iii) any assignment by the Company for the benefit of creditors generally; or

     (iv) any other marshalling of the Company’s assets,

provided that this section will not limit the rights of the Holders to convert their Debentures
into Common Stock (but not cash, other than in respect of fractional shares).

     SECTION 3.03. Default on Senior Indebtedness of the Company. No direct or indirect payment,
in cash, property or securities, by set-off or otherwise, may be made or agreed to be made on
account of principal or interest on the Debentures, or in respect of any payment, retirement,
purchase or other acquisition of the Debentures, if

     (i) the Company defaults in the payment of any principal of (or premium, if any) or interest
on any Senior Indebtedness, whether at maturity or at a date fixed for prepayment or upon
acceleration or otherwise; or

     (ii) an event of default occurs with respect to any Senior Indebtedness permitting the holders
thereof to accelerate the maturity thereof and written notice of such event of default (requesting
that payments on the Debentures cease) is given to the Company by the holders of Senior
Indebtedness,

unless and until such default in payment or event of default has been cured or waived or ceases to
exist; provided, however, this section shall in no event limit the rights of Holders to convert
their Debentures into Common Stock (but not cash, other than in respect of fractional shares).

     SECTION 3.04. When Distribution Must Be Paid Over. In the event that any payment or
distribution of assets of the Company of any kind or character not permitted by this Article 3,
whether in cash, property or securities, shall be received by the Trustee or the Holders of
Debentures before all Senior Indebtedness is paid in full, or provision made for such payment, in
accordance with its terms, at a time when a Responsible Officer of the Trustee or such Holder has
actual knowledge that such payment should not have been made to it, such payment or distribution
shall be held in trust for the benefit of, and, upon written request, shall be paid over or
delivered to, the holders of such Senior Indebtedness or their agents or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments evidencing any of such
Senior Indebtedness may have been issued, as their respective interests may appear, for application
to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all such
Senior Indebtedness in full in accordance with its terms, after giving effect to any concurrent
payment or distribution to the holders of such Senior Indebtedness.

     SECTION 3.05. Subrogation. After all Senior Indebtedness of the Company is paid in full and
until the Debentures are paid in full, to the extent such payment includes amounts that

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would have been paid to Holders absent subordination, Holders shall be subrogated to the
rights of holders of such Senior Indebtedness to receive distributions applicable to such Senior
Indebtedness paid by virtue of such subordination. A distribution made under this Article 3 to
holders of such Senior Indebtedness which otherwise would have been made to Holders is not, as
between the Company and Holders, a payment by the Company on such Senior Indebtedness.

     SECTION 3.06. Relative Rights. This Article 3 defines the relative rights of Holders and
holders of Senior Indebtedness of the Company. Nothing in this Indenture shall:

     (i) impair, as between the Company and Holders, the obligation of the Company, which is
absolute and unconditional, to pay principal of and interest on the Debentures in accordance with
their terms;

     (ii) prevent the Trustee or any Holder from exercising its available remedies during an Event
of Default, subject to the rights of holders of Senior Indebtedness of the Company to receive
payments or distributions otherwise payable to Holders and such other rights of such holders of
Senior Indebtedness as set forth herein; or

     (iii) affect the relative rights of Holders and creditors of the Company other than their
rights in relation to holders of Senior Indebtedness.

     SECTION 3.07. Subordination May Not Be Impaired by Company. No right of any holder of Senior
Indebtedness of the Company to enforce the subordination of the indebtedness evidenced by the
Debentures shall be impaired by any act or failure to act by the Company or by their failure to
comply with this Indenture.

     SECTION 3.08. Rights of Trustee and Paying Agent. Notwithstanding Section 3.03 hereof, the
Trustee or any Paying Agent may continue to make payments on the Debentures and shall not be
charged with knowledge of the existence of facts that would prohibit the making of any payments
unless, not less than two Business Days prior to the date of such payment, a Responsible Officer of
the Trustee receives notice satisfactory to him that payments may not be made under this Article 3.
The Company, the Registrar, the Paying Agent, a Representative or a holder of Senior Indebtedness
of the Company shall be entitled to give the notice; provided, however, that, if an issue of Senior
Indebtedness of the Company has a Representative, only the Representative shall be entitled to give
the notice.

     The Trustee in its individual or any other capacity shall be entitled to hold Senior
Indebtedness of the Company with the same rights it would have if it were not Trustee. The
Registrar and the Paying Agent shall be entitled to do the same with like rights. The Trustee
shall be entitled to all the rights set forth in this Article 3 with respect to any Senior
Indebtedness of the Company which may at any time be held by it, to the same extent as any other
holder of such Senior Indebtedness; and nothing in this Article 3 shall deprive the Trustee of any
of its rights as such holder. Nothing in this Article 3 shall apply to claims of, or payments to,
the Trustee under any Section of this Indenture.

     SECTION 3.09. Distribution or Notice to Representative. Whenever a distribution is to be made
or a notice given to holders of Senior Indebtedness of the Company, the distribution may be made
and the notice given to their Representative (if any).

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     SECTION 3.10. Article 3 Not to Prevent Events of Default or Limit Right to Accelerate. The
failure to make a payment pursuant to the Debentures by reason of any provision in this Article 3
shall not be construed as preventing the occurrence of an Event of Default. Nothing in this
Article 3 shall have any effect on the right of the Holders or the Trustee to accelerate the
maturity of the Debentures.

     SECTION 3.11. Trust Moneys Not Subordinated. Notwithstanding anything contained herein to the
contrary, payments from cash held in trust by the Trustee for the payment of principal of and
interest on the Debentures shall not be subordinated to the prior payment of any Senior
Indebtedness of the Company or subject to the restrictions set forth in this Article 3, and none of
the Holders shall be obligated to pay over any such amount to the Company or any holder of Senior
Indebtedness of the Company or any other creditor of the Company, provided that the subordination
provisions of this Article 3 were not violated at the time the applicable amounts were deposited in
trust, as the case may be.

     SECTION 3.12. Trustee Entitled to Rely. Upon any payment or distribution pursuant to this
Article 3, the Trustee and the Holders shall be entitled to rely (a) upon any order or decree of a
court of competent jurisdiction in which any proceedings of the nature referred to in Section 3.02
hereof are pending, (b) upon a certificate of the liquidating trustee or agent or other Person
making such payment or distribution to the Trustee or to the Holders or (c) upon the
Representatives of Senior Indebtedness of the Company for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of such Senior Indebtedness
and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article 3. In the
event that the Trustee determines, in good faith, that evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness of the Company to participate in any payment
or distribution pursuant to this Article 3, the Trustee shall be entitled to request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such Senior
Indebtedness held by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and other facts pertinent to the rights of such Person under this
Article 3, and, if such evidence is not furnished, the Trustee shall be entitled to defer any
payment to such Person pending judicial determination as to the right of such Person to receive
such payment.

     SECTION 3.13. Trustee to Effectuate Subordination. A Holder by its acceptance of a Debenture
agrees to be bound by this Article 3 and authorizes and expressly directs the Trustee, on his
behalf, to take such action as may be necessary or appropriate to effectuate the subordination
between the Holders and the holders of Senior Indebtedness of the Company as provided in this
Article 3 and appoints the Trustee as attorney-in-fact for any and all such purposes.

     SECTION 3.14. Trustee Not Fiduciary for Holders of Senior Indebtedness of the Company. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the
Company and shall not be liable to any such holders if it shall mistakenly pay over or distribute
to Holders or the Company or any other Person, money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article 3 or otherwise.

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     SECTION 3.15. Reliance by Holders of Senior Indebtedness of the Company on Subordination
Provisions. Each Holder by accepting a Debenture acknowledges and agrees that the foregoing
subordination provisions are, and are intended to be, an inducement and a consideration to each
holder of any Senior Indebtedness of the Company, whether such Senior Indebtedness was created or
acquired before or after the issuance of the Debentures, to acquire and continue to hold, or to
continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Indebtedness.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness of the Company may, at any time and from time to time, without the consent of or
notice to the Trustee or the Holders, without incurring responsibility to the Trustee or the
Holders and without impairing or releasing the subordination provided in this Article 3 or the
obligations hereunder of the Holders to the holders of the Senior Indebtedness of the Company, do
any one or more of the following: (a) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Indebtedness of the Company, or otherwise amend or
supplement in any manner Senior Indebtedness of the Company, or any instrument evidencing the same
or any agreement under which Senior Indebtedness of the Company is outstanding; (b) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior
Indebtedness of the Company; (c) release any Person liable in any manner for the payment or
collection of Senior Indebtedness of the Company; and (d) exercise or refrain from exercising any
rights against the Company and any other Person.

ARTICLE 4

COVENANTS

     SECTION 4.01. Payment of Debentures. The Company shall promptly make all payments of
principal of, premium, if any, and interest in respect of the Debentures on the dates and in the
manner provided in the Debentures or pursuant to this Indenture. Any amounts to be given to the
Trustee or Paying Agent, shall be deposited with the Trustee or Paying Agent by 10:00 a.m., New
York City time, on the date when due by the Company. Principal Amount and interest, shall be
considered paid on the applicable date due if on such date the Trustee or the Paying Agent holds,
in accordance with this Indenture, money or securities, if permitted hereunder, sufficient to pay
all such amounts then due.

     The Company shall, to the extent permitted by law, pay interest on overdue amounts at the rate
per annum set forth in paragraph 1 of the Debentures, compounded semiannually, which interest shall
accrue from the date such overdue amount was originally due to the date payment of such amount,
including interest thereon, has been made or duly provided for.

     SECTION 4.02. SEC and Other Reports. The Company shall deliver to the Trustee, within 15 days
after it is required to file the same with the SEC, after giving effect, to the extent applicable,
any extension permitted by Rule 12b-25 under the Exchange Act, copies of the annual and quarterly
reports and of the information, documents and other reports(or copies of such portions of any of
the foregoing as the SEC may from time to time by rules and regulations

34

 

prescribe) which the Company may be required to file with the SEC, pursuant to Section 13 or
Section 15(d) of the Exchange Act, provided, however, that the Company will not be required to
deliver to the Trustee any materials for which it has sought and obtained confidential treatment
from the SEC. Documents filed by the Company with the SEC via the EDGAR system will be deemed
filed with the Trustee as of the time such documents are filed with EDGAR. If the Company is not
required to file information, documents or reports pursuant to Section 13 or Section 15(d) of the
Exchange Act, it will file with the Trustee and, unless the SEC will not accept such a filing, the
SEC, in accordance with rules and regulations prescribed from time to time by the SEC, such
periodic reports and other documents which may be required pursuant to Section 13 of the Exchange
Act in respect of a security listed and registered on a national securities exchange as may be
prescribed from time to time in such rules and regulations. The Company also shall comply with the
other provisions of TIA Section 314(a). Delivery of such reports, information and documents to the
Trustee is for informational purposes only and the Trustee’s receipt of the same shall not
constitute constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

     SECTION 4.03. Compliance Certificate. The Company shall deliver to the Trustee within 120
days after the end of each fiscal year of the Company (beginning with the fiscal year ending on
December 31, 2008) an Officer’s Certificate, stating whether or not to the knowledge of the signers
thereof the Company is in default in the performance and observance of any of the terms, provisions
and conditions of this Indenture (without regard to any period of grace or requirement of notice
provided hereunder) and if the Company shall be in default, specifying all such defaults and the
nature and status thereof of which they may have knowledge.

     SECTION 4.04. Maintenance of Office or Agency. The Company will maintain an office or agency
of the Trustee, Registrar, Paying Agent and Conversion Agent where Debentures may be presented or
surrendered for payment, where Debentures may be surrendered for registration of transfer, exchange
for other Debentures, purchase or conversion for Common Stock and where notices and demands to or
upon the Company in respect of the Debentures and this Indenture may be served. The Trustee’s
office specified in Section 12.02 shall initially be such office or agency for all of the aforesaid
purposes. The Company shall give prompt written notice to the Trustee of the location, and of any
change in the location, of any such office or agency (other than a change in the location of the
office of the Trustee). If at any time the Company shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the Trustee set forth in
Section 12.02.

     The Company may also from time to time designate one or more other offices or agencies where
the Debentures may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations.

     SECTION 4.05. Limitation on Payments. On any date on which accrued interest through the most
recent interest payment date has not been paid in full, including during any Optional Deferral
Period, and until such time as all accrued but unpaid interest, together with any

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Compounded Interest thereon, is paid in full, the Company shall not (and shall not permit any
Subsidiary to):

     (i) declare or pay any dividends on, make distributions regarding, or redeem, purchase,
acquire or make a liquidation payment with respect to, any shares of capital stock of the Company,
other than:

     (A) purchases of the Company’s capital stock in connection with employee or agent
benefit plans or under any dividend reinvestment plan;

     (B) purchases or repurchases of shares of the Company’s capital stock pursuant to a
contractually binding requirement to buy stock existing prior to the commencement of the
Optional Deferral Period, including under a contractually binding stock repurchase plan;

     (C) in connection with the reclassification of any class or series of the Company’s
capital stock, or the exchange or conversion of one class or series of the Company’s capital
stock for or into another class or series of the Company’s capital stock, in each case where
the resulting capital stock ranks, upon liquidation, equal to or junior to the capital stock
so reclassified, exchanged or converted;

     (D) the purchase of fractional interests in shares of the Company’s capital stock in
connection with the conversion or exchange provisions of that capital stock or the security
being converted or exchanged;

     (E) dividends or distributions in the form of the Company’s capital stock or rights to
acquire the Company’s capital stock, where the dividend stock or stock underlying the
dividend rights is the same class as the stock on which the dividend is being paid or ranks,
upon liquidation, equal to or junior to such stock;

     (F) any declaration of a dividend in connection with the implementation of a
shareholders’ rights plan, or issuances of capital stock under any such plan in the future,
or redemptions or repurchases of any rights outstanding under a shareholders’ rights plan;
or

     (G) the payment of any dividend during an Optional Deferral Period within 60 days after
the date of declaration thereof, if at the date of declaration no Optional Deferral Period
was in effect.

     (ii) make any payment of principal of, or interest or premium, if any, on, or pay, repurchase
or redeem any Parity Debt Securities or Junior Debt Securities, other than (i) any payment,
repurchase or redemption in respect of Parity Debt Securities made ratably and in proportion to the
respective amounts of (1) accrued and unpaid amounts on such Parity Debt Securities, on the one
hand, and (2) accrued and unpaid amounts on the Debentures, on the other hand, (ii) any payments of
principal or current or deferred interest on Parity Debt Securities that, if not made, would cause
the Company to breach the terms of the instrument governing such Parity Debt Securities (provided
that such payments are made in accordance with Section 4.06(ii), to the extent applicable), or
(iii) the exchange or conversion of one class or series of

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Parity Debt Securities or Junior Debt Securities for or into another class or series of the
Company’s securities, in each case if the resulting securities rank, upon liquidation, pari passu
with or junior to the securities so exchanged or converted; or

     (iii) make any guarantee payments with respect to any guarantee by the Company of the debt
securities of any Subsidiary, if such guarantee ranks, upon liquidation, pari passu with or junior
to the Debentures, other than any payment in respect of Parity Guarantees made ratably and in
proportion to the respective amounts of (1) accrued and unpaid amounts on such Parity Guarantees,
on the one hand, and (2) accrued and unpaid amounts on the Debentures, on the other hand.

     SECTION 4.06. Alternative Payment Mechanism.

     (i) If the Company defers interest on the Debentures, the Company shall be required, not later
than (i) the Business Day immediately following the first Interest Payment Date during an Optional
Deferral Period on which it elects to pay current interest or (ii) if earlier, the Business Day
following the fifth anniversary of the commencement of an Optional Deferral Period, to use its
commercially reasonable efforts to begin selling to persons that are not Affiliates of the Company
Qualifying Securities (the “Alternative Payment Mechanism”).

     (ii) The Company shall be required pursuant to the Alternative Payment Mechanism, with respect
to any subsequent Interest Payment Date during an Optional Deferral Period until the Deferred
Interest has been paid in full, to use its commercially reasonable efforts to sell Qualifying
Securities until it has raised an amount of Eligible Proceeds that, together with the net proceeds
of any sales of Qualifying Securities within the 180 days preceding such Interest Payment Date, is
sufficient to pay the Deferred Interest (including Compounded Interest) on such Interest Payment
Date, provided that, if, due to a Market Disruption Event or otherwise, the Company is able to
raise some, but not all, of the Eligible Proceeds from the sale of Qualifying Securities necessary
to pay all Deferred Interest (including Compounded Interest) on any Interest Payment Date, the
Company shall apply any such available net proceeds on such Interest Payment Date to pay accrued
and unpaid installments of interest in chronological order, beginning with the optionally Deferred
Interest relating to the earliest Interest Payment Date with respect to which interest has been
deferred. The Company shall not pay Deferred Interest (including Compounded Interest) on the
Debentures from any source other than the Eligible Proceeds from the sale of Qualifying Securities,
except at the Final Maturity Date, at the tenth anniversary of the commencement of any Optional
Deferral Period or upon the occurrence of an Event of Default. The Company must use commercially
reasonable efforts to increase its authorized Preferred Stock or Common Stock, as the case may be,
so that it has sufficient authorized Preferred Stock and Common Stock to fulfill its obligations in
respect of the Alternative Payment Mechanism.

     (iii) The Company shall not be required to issue Common Stock or Qualifying Warrants prior to
the fifth anniversary of the commencement of any Optional Deferral Period pursuant to the
Alternative Payment Mechanism to the extent that the net proceeds of any issuance of Common Stock
or Qualifying Warrants applied to pay such interest together with the net proceeds of all prior
issuances of Common Stock and Qualifying Warrants during such Optional Deferral Period so applied,
would exceed 2% of the product of the average of the

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Current Stock Market Prices of the Company’s Common Stock on 10 consecutive Trading Days
ending on the second Trading Day immediately preceding the date of issuance of such securities
multiplied by the total number of issued and outstanding shares of the Company’s Common Stock as of
the date of the Company’s then most recent publicly available consolidated financial statements
(the “2% Issuance Cap”). In addition, the Company may not issue Qualifying Preferred Stock if the
net proceeds of any issuance of Qualifying Preferred Stock applied to pay interest, together with
the net proceeds of all prior issuances of Qualifying Preferred Stock so applied, would exceed 25%
of the aggregate Principal Amount of the Debentures (the “Preferred Stock Issuance Cap”).

     (iv) Once the Company reaches the 2% Issuance Cap for any Optional Deferral Period, the
Company shall not be required to issue more Common Stock or Qualifying Warrants prior to the fifth
anniversary of the commencement of such Optional Deferral Period even if the 2% Issuance Cap would
have increased because of a subsequent increase in the Current Stock Market Price or in the number
of outstanding shares of the Company’s Common Stock. The 2% Issuance Cap shall cease to apply
following the fifth anniversary of the commencement of any Optional Deferral Period, at which point
the Company must pay any Deferred Interest, regardless of the time at which it was deferred, using
the Alternative Payment Mechanism, subject to the Preferred Stock Issuance Cap, the Maximum Share
Cap and any Market Disruption Event. For the avoidance of doubt, if the 2% Issuance Cap has been
reached during an Optional Deferral Period and the Company subsequently pays all deferred payments
(including Compounded Interest thereon), the 2% Issuance Cap shall cease to apply, and shall only
apply again once the Company starts a new Optional Deferral Period. The Preferred Stock Issuance
Cap and the Maximum Share Cap shall each apply so long as the Debentures remain outstanding.

     (v) The Company shall not be required to issue Common Stock or Qualifying Warrants pursuant to
the Alternative Payment Mechanism to the extent that the total number of shares of the Company’s
Common Stock issued or underlying such Qualifying Warrants, together with all prior issuances of
Common Stock and Qualifying Warrants, exceeds 10 million shares (subject, in the case of warrants,
to customary anti-dilution adjustments) (the “Maximum Share Cap”). The Company shall use its
commercially reasonable efforts to increase the Maximum Share Cap from time to time to a number of
shares that would allow the Company to satisfy its obligations with respect to the Alternative
Payment Mechanism. The Maximum Share Cap shall be adjusted proportionately for any change in the
number of outstanding shares of the Company’s Common Stock by reason of any stock split, reverse
stock split, stock dividend, reclassification, recapitalization, split-up, combination, exchange of
shares or other similar transaction, effective upon the effective date of any such transaction.

     (vi) If, due to a Market Disruption Event, the 2% Issuance Cap, Preferred Stock Issuance Cap,
Maximum Share Cap or otherwise, the Company was able to raise some, but not all, Eligible Proceeds
necessary to pay all Deferred Interest (including Compounded Interest thereon) on any Interest
Payment Date, the Company shall apply any available Eligible Proceeds to pay accrued and unpaid
installments of interest on the applicable Interest Payment Date in chronological order beginning
with Deferred Interest relating to the earliest Interest Payment Date with respect to which
interest has been deferred and each Holder shall be entitled to receive its pro rata share of any
amounts received on the Debentures. If the Company has outstanding securities in addition to, and
that rank, upon liquidation, pari passu with, the Debentures under

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which the Company is obligated to sell Qualifying Securities and apply the net proceeds to the
payment of deferred interest or distributions, then on any date and for any period the amount of
net proceeds received by the Company from those sales and available for payment of the Deferred
Interest and distributions shall be applied to the Debentures and such other securities on a pro
rata basis in proportion to the total amounts that are due on the Debentures and such securities.

     (vii) The Company’s ability to issue Common Stock to satisfy its obligation to pay Deferred
Interest will be subject to the same limitations as those limiting the Company’s ability to sell
Qualifying Warrants, including the limitations on selling Qualifying Securities at a time when a
Market Disruption Event exists or when the 2% Issuance Cap or the Maximum Share Cap is exceeded.

     (viii) The Company shall not be required to sell or use commercially reasonable efforts to
sell Qualifying Securities in accordance with the Alternative Payment Mechanism during any
semi-annual period preceding any Interest Payment Date to the extent it provides written
certification to the Trustee (which the Trustee shall promptly forward upon receipt to each Holder
of record of Debentures) no more than 30 and no less than 15 days in advance of such Interest
Payment Date certifying that:

     (A) a Market Disruption Event was existing after the immediately preceding Interest
Payment Date, and

     (B) either (i) the Market Disruption Event continued for the entire period from the
Business Day immediately following the preceding Interest Payment Date to the Business Day
immediately preceding the date on which that certification is provided or (ii) the Market
Disruption Event continued for only part of such period, but the Company was unable after
commercially reasonable efforts to raise sufficient Eligible Proceeds during the rest of
such period to pay all accrued and unpaid interest.

     (ix) If the Company is involved in a business combination where immediately after its
consummation more than 50% of the surviving entity’s voting stock is owned by the shareholders of
the other party to the business combination, then the Alternative Payment Mechanism shall not apply
to any Optional Deferral Period that is terminated on the next Interest Payment Date following the
date of consummation of the business combination (or, if later, at any time within 90 days
following the date of consummation of the business combination).

     (x) Neither the 2% Issuance Cap nor the Preferred Stock Cap shall relieve the Company of its
obligation to issue the number of Qualifying Securities that the Company can issue without breach
thereof and to apply the proceeds thereof in partial payment of Deferred Interest.

     (xi) If an Event of Default occurs and is continuing, (i) the Company will not be required to
sell Qualifying Securities to make payments on Deferred Interest pursuant to the Alternative
Payment Mechanism, and (ii) the Company may make payments on Deferred Interest using cash from any
source.

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     SECTION 4.07. Covenant Against Repurchases. If any Optional Deferral Period lasts longer than
one year, the Company will not repurchase any Qualifying Securities sold pursuant to the
Alternative Payment Mechanism or any securities that are, in respect of liquidation, pari passu
with or junior to such securities (including, without limitation, the Company’s Common Stock),
until the first anniversary of the date on which all Deferred Interest on the Debentures, and
Compounded Interest thereon, has been paid, subject to the same exceptions as provided for in
Section 4.05(i). Failure by the Company to adhere to this requirement will constitute a Covenant
Breach but not an Event of Default. If the Company is involved in a business combination where
immediately after its consummation more than 50% of the surviving entity’s voting stock is owned by
the shareholders of the other party to the business combination, then the one-year restriction on
such repurchases will not apply to any Optional Deferral Period that is terminated on the next
Interest Payment Date following the date of consummation of the business combination (or if later,
at any time within 90 days following the date of consummation of the business combination).

     SECTION 4.08. Responsibility of Trustee for Conversion Provisions. Except as expressly
provided otherwise, all calculations under this Indenture shall be made by the Company and shall be
made to the nearest cent or to the nearest one hundredth of a share, as the case may be. Except as
expressly provided otherwise, the Company will be responsible for making all calculations and
determinations called for under this Indenture. The Company or its agent will make those
calculations and determinations in good faith, and, absent manifest error, such calculations and
determinations will be final and binding on the Holders and the Trustee and the Conversion Agent
shall have no responsibility with respect thereto. The Company will provide a schedule of these
calculations and determinations to the Trustee and the Conversion Agent, and the Trustee and the
Conversion Agent shall be entitled to rely upon the accuracy of these calculations without
independent verification thereof.

     The Trustee and any Conversion Agent shall not at any time be under any duty or responsibility
to any Holder of Debentures to determine whether any facts exist that may require a supplemental
indenture to be executed in accordance with this Indenture or any adjustment of the Conversion
Rate, or with respect to the nature or intent of any such adjustments when made, or with respect to
the method employed, or herein or in any supplemental indenture provided to be employed, in making
the same. Neither the Trustee nor any Conversion Agent shall be accountable with respect to the
validity or value (of the kind or amount) of any Common Stock, or of any other securities or
property, that may at any time be issued or delivered upon the conversion of any Debenture; and it
or they do not make any representation with respect thereto. Neither the Trustee nor any
Conversion Agent shall be responsible for any failure of the Company to make any cash payment or to
issue, transfer or deliver any shares of Common Stock or share certificates or other securities or
property upon the surrender of any Debenture for the purpose of conversion; and the Trustee and any
Conversion Agent shall not be responsible or liable for any failure of the Company to comply with
any of the covenants of the Company contained in this Article. The Trustee and the Conversion
Agent shall be fully protected in relying upon the Officer’s Certificate furnished pursuant to this
Indenture.

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ARTICLE 5

SUCCESSOR PERSON

     SECTION 5.01. When Company May Merge or Transfer Assets. The Company shall not consolidate
with or merge with or into any other person or convey, transfer (other than by pledge) or lease all
or substantially all its properties and assets to another person, unless:

     (i) either (1) the Company shall be the continuing person or (2) the person (if other than the
Company) formed by such consolidation or into which the Company is merged or the person which
acquires by conveyance, transfer or lease all or substantially all the properties and assets of the
Company (A) shall be organized and validly existing under the laws of the United States, any State
thereof or the District of Columbia and (B) shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of the
obligations of the Company under the Debentures and this Indenture;

     (ii) immediately after giving effect to such transaction, no Event of Default shall have
occurred and be continuing; and

     (iii) the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture, comply with this Article 5 and that all conditions precedent herein provided for
relating to such transaction have been satisfied.

     For purposes of the foregoing, the conveyance, transfer (other than by pledge) or lease of the
properties and assets of one or more Subsidiaries (other than to the Company or another
Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially
all of the properties and assets of the Company, shall be deemed to be the conveyance, transfer or
lease of all or substantially all of the properties and assets of the Company.

     The successor person formed by such consolidation or into which the Company is merged or the
successor person to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture with
the same effect as if such successor had been named as the Company herein; and thereafter the
Company shall be discharged from all obligations and covenants under this Indenture and the
Debentures. Subject to Section 9.06, the Company, the Trustee and the successor person shall enter
into a supplemental indenture to evidence the succession and substitution of such successor person
and such discharge and release of the Company.

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ARTICLE 6

DEFAULTS AND REMEDIES

     SECTION 6.01. Events of Default.

     (i) An “Event of Default” with respect to the Debentures shall mean:

     (A) default in the payment of accrued interest in full on the Debentures on any
Interest Payment Date (whether or not such Interest Payment Date commenced an Optional
Deferral Period) and the Company’s failure on or before the conclusion of a ten-year period
following such Interest Payment Date to pay interest (including Compounded Interest) then
accrued in full;

     (B) default in the payment of the principal of the Debentures when due, whether on the
Final Maturity Date, upon redemption, upon a declaration of acceleration or otherwise;

     (C) default in the Company’s obligation to satisfy its conversion obligation upon
exercise of a Holder’s conversion right, which default continues for 15 days after
performance is due;

     (D) (i) the commencement by the Company of a voluntary case or proceeding under any
applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar law
or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or (ii) the
consent by the Company to (I) the entry of a decree or order for relief in respect of the
Company in an involuntary case or proceeding under any applicable U.S. federal or state
bankruptcy, insolvency, reorganization or other similar law or to (II) the commencement of
any bankruptcy or insolvency case or proceeding against the Company, or (iii) the filing by
the Company of a petition or answer or consent seeking reorganization or relief under any
applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar
law, or (iv) the consent by the Company to the filing of such petition or to the appointment
of or the taking possession by a custodian of the Company or of any substantial part of its
properties, or (v) the making by the Company of an assignment for the benefit of creditors
generally, or (vi) the admission by the Company in writing of their inability to pay its
debts generally as they become due.

     (ii) Upon an Event of Default pursuant to Section 6.01 (i)(D) prior to the Final Maturity Date
or conversion of the Debentures no Holder or beneficial owner of a Debenture, as the case may be,
shall have any claim for, or right to receive, any Foregone Interest and any Foregone Interest
shall not be due and payable.

     (iii) For the avoidance of doubt, the use of sources of funding other than the Alternative
Payment Mechanism to fund payments of Deferred Interest following the date that is five years
following the first Interest Payment Date as of which the Company commenced an Optional Deferral
Period, shall not constitute an Event of Default, but a Covenant Breach.

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     SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default specified
in Section 6.01(i)(D) in respect of the Company) occurs and is continuing, the Trustee by notice to
the Company, or the Holders of at least 25% in aggregate Principal Amount of the Debentures at the
time outstanding by notice to the Company and the Trustee, may declare the Principal Amount through
the date of declaration, and any accrued and unpaid interest through the date of such declaration,
on all the Debentures to be immediately due and payable. Upon such a declaration, such Principal
Amount, and such accrued and unpaid interest if any, shall be due and payable immediately. If an
Event of Default specified in Section 6.01(i)(D) in respect of the Company occurs and is
continuing, the Principal Amount plus accrued and unpaid interest if any, on all the Debentures
shall become and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holders. The Holders of a majority in aggregate Principal Amount of the
Debentures at the time outstanding, by notice to the Trustee (and without notice to any other
Holder) may rescind an acceleration and its consequences if the rescission would not conflict with
any judgment or decree and if all existing Events of Default have been cured or waived except
nonpayment of the Principal Amount that has become due solely as a result of acceleration and if
all amounts due to the Trustee under Section 7.07 have been paid. No such rescission shall affect
any subsequent Event of Default or impair any right consequent thereto.

     SECTION 6.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of the Principal Amount plus any accrued and
unpaid interest if any, on the Debentures or to enforce the performance of any provision of the
Debentures or this Indenture. The Trustee may maintain a proceeding even if the Trustee does not
possess any of the Debentures or does not produce any of the Debentures in the proceeding. A delay
or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the
Event of Default. Except as set forth in Section 2.11 hereof, no remedy is exclusive of any other
remedy. All available remedies are cumulative.

     SECTION 6.04. Waiver of Past Defaults. Subject to Section 6.02, the Holders of not less than
a majority in aggregate Principal Amount of the Debentures at the time outstanding may on behalf of
the Holders of all of the Debentures waive any past Covenant Breach, default or Event of Default
hereunder with respect to the Debentures and its consequences, except a default

     (i) in the payment of interest on, or the principal of, any of the Debentures or

     (ii) a default arising from the Company’s failure to convert any Debenture at the option of a
Holder in accordance with the Indenture or any supplemental indenture or

     (iii) in respect of a provision of this Indenture that, under Article 9, cannot be modified or
amended without the consent of each Holder of each Debenture affected by such modification or
amendment.

     Upon any such waiver the Company, the Trustee and the Holders of the Debentures shall be
restored to their former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Covenant Breach, default or Event of Default or impair any

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right consequent thereon. Whenever any Covenant Breach, default or Event of Default hereunder
shall have been waived as permitted by this Section 6.04, said Covenant Breach, default or Event of
Default shall for all purposes of the Debentures and this Indenture be deemed to have been cured
and to be not continuing.

     SECTION 6.05. Control by Majority. The Holders of a majority in aggregate Principal Amount of
the Debentures at the time outstanding may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on
the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or
this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of
other Holders or could, in reasonable likelihood, impose personal liability upon the Trustee unless
the Trustee is offered indemnity reasonably satisfactory to it. This Section 6.05 shall be in lieu
of Section 316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby expressly excluded from this
Indenture, as permitted by the TIA.

     SECTION 6.06. Limitation on Suits.

     (i) No Holder of a Debenture shall have any right by virtue of or by availing of any provision
of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or
with respect to this Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (i) (A) such Holder previously shall have given to the Trustee written
notice of default and of the continuance thereof, as hereinbefore provided, with a copy to the
Company, or (B) the Trustee shall have previously given notice of such default to the Company, (ii)
the Holders of not less than 25% in aggregate Principal Amount of the Debentures then outstanding,
or a majority in aggregate Principal Amount of the Debentures then outstanding, in the case of a
Covenant Breach, shall have made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such
indemnity reasonably satisfactory to the Trustee as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, (iii) the Trustee for 90 days after its receipt of
such notice, request and offer of indemnity, shall have neglected or refused to institute any such
action, suit or proceeding during such 90-day period, and (iv) during such 90-day period no
direction inconsistent with such written request shall have been given to the Trustee by the
Holders of a majority in aggregate Principal Amount of the Debentures then outstanding (or such
amount as shall have acted at a meeting pursuant to the provisions of this Indenture), it being
understood and intended, and being expressly covenanted by the Holder of every Debenture with every
other Holder and the Trustee, that no one or more Holders shall have any right in any manner
whatever by virtue of or by availing of any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holder, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all such Holders.

     (ii) If an Event of Default with respect to the Debentures occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of the Debentures by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or
to enforce any other proper remedy.

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     If a Covenant Breach with respect to the Debentures occurs and is continuing, the Trustee may
in its discretion proceed to protect and enforce its rights by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy. If a Covenant
Breach with respect to the Debentures occurs and is continuing, and then only if the Trustee is
directed by Holders of Debentures pursuant to and in accordance with Section 6.02 hereof and, if so
requested by the Trustee, an indemnity reasonably satisfactory to it is granted by the Holders, the
Trustee shall proceed to protect and enforce the rights of the Holders of the Debentures by such
appropriate judicial proceedings as such Holders shall so direct to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper remedy.

     SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of
this Indenture, the right of any Holder to receive payment of the Principal Amount and interest in
respect of the Debentures held by such Holder, on or after the respective due dates expressed in
the Debentures, and to convert the Debentures in accordance with Article 10, or to bring suit for
the enforcement of any such payment on or after such respective dates or the right to convert,
shall not be impaired or affected adversely without the consent of such Holder.

     SECTION 6.08. Collection Suit by Trustee. If an Event of Default described in Section
6.01(i)(A) or (B) occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount due and owing with respect to
the Debentures and the amounts provided for in Section 7.07.

     SECTION 6.09. Trustee May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
similar judicial proceeding relative to the Company or any other obligor upon the Debentures or any
substantial part of the property of the Company or of such other obligor, the Trustee (irrespective
of whether the Principal Amount and interest in respect of the Debentures shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of any such amount) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

     (i) to file and prove a claim for the whole amount of the Principal Amount or interest and to
file such other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel or any other amounts due the Trustee under Section
7.07) and of the Holders allowed in such judicial proceeding, and

     (ii) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same.

     Any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in
any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly

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to the Holders, to pay the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Debentures or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 6.10. Priorities. If the Trustee collects any money pursuant to this Article 6, it
shall pay out the money in the following order:

     FIRST: to the Trustee for amounts due under Section 7.07;

     SECOND: to Holders for amounts due and unpaid on the Debentures for the Principal Amount and
interest, ratably, without preference or priority of any kind, according to such amounts due and
payable on the Debentures; and

     THIRD: the balance, if any, to the Company.

     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.10. At least 15 days before such record date, the Trustee shall mail to each Holder and
the Company a notice that states the record date, the payment date and the amount to be paid.

     SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court in its discretion may require the filing by any party litigant in the suit (other
than the Trustee) of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party
litigant in the suit (other than the Trustee), having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by
the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in
aggregate Principal Amount of the Debentures at the time outstanding. This Section 6.11 shall be
in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from this
Indenture, as permitted by the TIA.

     SECTION 6.12. Waiver of Stay, Extension or Usury Laws. The Company covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or
other law wherever enacted, now or at any time hereafter in force, which would prohibit or forgive
the Company from paying all or any portion of the Principal Amount and interest in respect of
Debentures, or any interest on such amounts, as contemplated herein, or which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

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ARTICLE 7

TRUSTEE

     SECTION 7.01. Duties of Trustee.

     (i) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in its
exercise as a prudent person would exercise or use under the circumstances in the conduct of such
person’s own affairs.

     (ii) Except during the continuance of an Event of Default:

     (A) the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others; and

     (B) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon any
certificate or opinion furnished to the Trustee and conforming to the requirements of this
Indenture, but in case of any such certificates or opinions which by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the requirements of
this Indenture, but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein.

     This Section 7.01(ii) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

     (iii) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

     (A) this paragraph (iii) does not limit the effect of paragraph (ii) of this Section
7.01;

     (B) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

     (C) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.

     Subparagraphs (iii)(A), (B) and (C) shall be in lieu of Sections 315(d)(1), 315(d)(2) and
315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly
excluded from this Indenture, as permitted by the TIA.

     (iv) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (i), (ii), (iii) and (v) of this Section 7.01.

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     (v) The Trustee may refuse to perform any duty or exercise any right or power or extend or
risk its own funds or otherwise incur any financial liability unless it receives indemnity
satisfactory to it against any loss, liability or expense.

     (vi) Money held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. The Trustee (acting in any capacity hereunder) shall be
under no liability for interest on any money received by it hereunder unless otherwise agreed in
writing with the Company.

     SECTION 7.02. Rights of Trustee. Subject to its duties and responsibilities under the
provisions of Section 7.01, and, except as expressly excluded from this Indenture pursuant to
Section 7.01, subject also to its duties and responsibilities under the TIA:

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

     (ii) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, request and conclusively rely upon an Officer’s Certificate;

     (iii) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder;

     (iv) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by
it in good faith which it believes to be authorized or within its rights or powers conferred under
this Indenture;

     (v) the Trustee may consult with counsel selected by it and any advice or Opinion of Counsel
shall be full and complete authorization and protection in respect of any action taken or suffered
or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

     (vi) the Trustee shall be under no obligation to exercise any of the rights or powers vested
in it by this Indenture at the request, order or direction of any of the Holders, pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred
therein or thereby;

     (vii) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a resolution of the Board of Directors;

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     (viii) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document, including, without limitation, any Company Request, Company Order or Officer’s
Certificate, but the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur
no liability or additional liability of any kind by reason of such inquiry or investigation or lack
thereof;

     (ix) the Trustee shall not be deemed to have notice of any default or Event of Default unless
a Responsible Officer of the Trustee received written notice of an event which is in fact such a
default or Event of Default, and such notice references the Debentures and this Indenture,
describes the event with specificity, and alleges that the occurrence of this event is a default or
an Event of Default under this Indenture;

     (x) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder;

     (xi) the Trustee may request that the Company deliver an Officer’s Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person
authorized to sign an Officer’s Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded; and

     (xii) the permissive rights of the Trustee enumerated herein shall not be construed as duties.

     SECTION 7.03. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Debentures and may otherwise deal with the Company or
its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent,
Registrar, Conversion Agent or co-registrar may do the same with like rights. However, the Trustee
must comply with Section 7.10.

     SECTION 7.04. Trustee’s Disclaimer. The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Debentures, it shall not be accountable for the Company’s use or
application of the proceeds from the Debentures, it shall not be responsible for any statement in
the Indenture or the Debentures (other than its certificate of authentication), or the
determination as to which beneficial owners are entitled to receive any notices hereunder.

     SECTION 7.05. Notice of Defaults. If an Event of Default occurs and if it is known to the
Trustee, the Trustee shall give to each Holder notice of the Event of Default within 90 days after
the Trustee gains knowledge of the Event of Default unless such Event of Default shall have been
cured or waived before the giving of such notice. Except in the case of an Event of

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Default described in Section 6.01(i)(A) or (B), the Trustee may withhold the notice if and so
long as a committee of its Responsible Officers in good faith determines that withholding the
notice is in the interests of Holders. The second sentence of this Section 7.05 shall be in lieu
of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this
Indenture, as permitted by the TIA. The Trustee shall not be deemed to have knowledge of an Event
of Default unless a Responsible Officer of the Trustee has received written notice of such Event of
Default in the manner described in Section 6.02.

     SECTION 7.06. Reports by Trustee to Holders. Within 60 days after each May 15 beginning with
May 15, 2008, the Trustee shall transmit to each Holder such reports as may be required under
Section 313 of the TIA.

     SECTION 7.07. Compensation and Indemnity. The Company agrees:

     (i) to pay to the Trustee from time to time such reasonable compensation as the Company and
the Trustee shall from time to time agree in writing for all services rendered by it hereunder
(which compensation shall not be limited (to the extent permitted by law) by any provision of law
in regard to the compensation of a trustee of an express trust);

     (ii) to reimburse the Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses, advances and disbursements of its agents
and external counsel), except any such expense, disbursement or advance as may be attributable to
its negligence or bad faith; and

     (iii) to indemnify the Trustee or any predecessor Trustee and their agents for, and to hold
them harmless against, any loss, damage, claim, liability, cost or expense (including reasonable
attorney’s fees and expenses and taxes (other than taxes based upon, measured by or determined by
the income of the Trustee)) reasonably incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of this trust, including the
reasonable costs and expenses of defending itself against any claim (whether asserted by the
Company or any Holder or any other Person) or liability in connection with the acceptance, exercise
or performance of any of its powers or duties hereunder in accordance herewith.

     To secure the Company’s payment obligations in this Section 7.07, Holders shall have been
deemed to have granted to the Trustee a lien prior to the Debentures on all money or property held
or collected by the Trustee, except that held in trust to pay the Principal Amount or interest, as
the case may be, on particular Debentures.

     The Company’s payment obligations pursuant to this Section 7.07 shall survive the discharge of
this Indenture and the resignation or removal of the Trustee. When the Trustee incurs expenses
after the occurrence of an Event of Default specified in Section 6.01(i)(D), its expenses including
the reasonable charges and expenses of its counsel, are intended to constitute expenses of
administration under any Bankruptcy Law.

     SECTION 7.08. Replacement of Trustee. The Trustee may resign by so notifying the Company;
provided, however, no such resignation shall be effective until a successor Trustee has

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accepted its appointment pursuant to this Section 7.08. The Holders of a majority in
aggregate Principal Amount of the Debentures at the time outstanding may remove the Trustee by so
notifying the Trustee and the Company. The Company shall remove the Trustee if:

     (i) the Trustee fails to comply with Section 7.10 and the Company has knowledge thereof;

     (ii) the Trustee is adjudged bankrupt or insolvent;

     (iii) a receiver or public officer takes charge of the Trustee or its property; or

     (iv) the Trustee otherwise becomes incapable of acting hereunder.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint, by resolution of the Board of Directors, a successor
Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the
Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Holders. The retiring
Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee,
subject to the lien provided for in Section 7.07.

     If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of a majority in aggregate
Principal Amount of the Debentures at the time outstanding may petition any court of competent
jurisdiction at the expense of the Company for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     The resignation or removal of a Trustee shall not diminish, impair or terminate its rights to
indemnification pursuant to Section 7.07 as they relate to periods prior to such resignation or
removal.

     SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another person, the resulting, surviving or transferee person without any further act shall be the
successor Trustee.

     SECTION 7.10. Eligibility; Disqualification. There shall at all times be a Trustee hereunder
which shall be eligible to act as Trustee and shall have a combined capital and surplus of at least
$50,000,000. If such person publishes reports of condition at least annually, pursuant to law or
to the requirements of federal, state, territorial or District of Columbia supervising or examining
authority, then, for the purposes of this Section 7.10, the combined capital and surplus

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of such person shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 7.10, it shall resign immediately in the manner and
with the effect specified in this Article 7.

ARTICLE 8

DISCHARGE OF INDENTURE

     SECTION 8.01. Discharge of Liability on Debentures. When (i) the Company delivers to the
Trustee all outstanding Debentures (other than Debentures replaced pursuant to Section 2.11) for
cancellation or (ii) all outstanding Debentures have become due and payable at maturity and the
Company deposits with the Trustee, the Paying Agent (if the Paying Agent is not the Company or any
Subsidiary or any Affiliate of either of them) or the Conversion Agent cash or, if expressly
permitted by the terms of the Debentures and the Indenture, Common Stock (solely to satisfy the
rights of Holders granted in Article 10) or governmental obligations sufficient to pay all amounts
due and owing on all outstanding Debentures (other than Debentures replaced pursuant to Section
2.11), and if in either case the Company pays all other sums payable hereunder by the Company, then
this Indenture shall, subject to Section 7.07, cease to be of further effect. The Trustee shall
join in the execution of a document prepared by the Company acknowledging satisfaction and
discharge of this Indenture on demand of the Company accompanied by an Officer’s Certificate
stating that the consideration being given is expressly permitted by the terms of the Debentures
and that all conditions precedent to the discharge of the Indenture have been complied with by the
Company and an Opinion of Counsel that such satisfaction and discharge does not violate the terms
of this Indenture or the Debentures, and at the cost and expense of the Company. The Trustee shall
be allowed to conclusively rely on such Officer’s Certificate and Opinion of Counsel.

     SECTION 8.02. Repayment to the Company. The Trustee and the Paying Agent shall return to the
Company upon written request any money or securities held by them for the payment of any amount
with respect to the Debentures that remains unclaimed for two years, subject to applicable
unclaimed property law. After return to the Company, Holders entitled to the money or securities
must look to the Company for payment as general creditors unless an applicable abandoned property
law designates another person and the Trustee and the Paying Agent shall have no further liability
to the Holders with respect to such money or securities for that period commencing after the return
thereof.

ARTICLE 9

AMENDMENTS

     SECTION 9.01. Without Consent of Holders. The Company and the Trustee may amend this
Indenture or the Debentures without the consent of any Holder:

     (i) to evidence the succession of another person to the Company, or successive successions and
the assumption by the successor person of the covenants, agreements and obligations of the Company
hereunder and the Debentures;

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     (ii) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the
Debentures any property or assets which the Company may desire;

     (iii) to add to the covenants of the Company such further covenants, restrictions or
conditions for the protection of the Holders of all or any series of Debentures (and if such
covenants are to be for the benefit of less than all series of Debentures stating that such
covenants are expressly being included solely for the benefit of such series) as the Board of
Directors of the Company and the Trustee shall consider to be for the protection of the Holders of
such Debentures, and to make the occurrence, or the occurrence and continuance, of a default in any
of such additional covenants, restrictions or conditions a default or an Event of Default
permitting the enforcement of all or any of the several remedies provided in this Indenture as
herein set forth; provided, however, that in respect of any such additional covenant, restriction
or condition such supplemental indenture may provide for a particular period of grace after default
(which period may be shorter or longer than that allowed in the case of other defaults) or may
provide for an immediate enforcement upon such default or may limit the remedies available to the
Trustee upon such default;

     (iv) to provide for the issuance under this Indenture of Debentures in coupon form (including
Debentures registrable as to principal only) and to provide for exchangeability of such Debentures
with the Debentures issued hereunder in fully registered form and to make all appropriate changes
for such purpose;

     (v) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture that may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture;

     (vi) to make such other provisions in regard to matters or questions arising under this
Indenture that shall not adversely affect the interests of any Holder in any material respect,
provided that any amendment to conform the terms of the Debentures to the description contained in
the Company’s Offering Memorandum, dated March 25, 2008, relating to the Debentures will not be
deemed to adversely affect the interests of any Holder in any material respect;

     (vii) to evidence and provide for the acceptance of appointment hereunder by a successor
trustee with respect to the Debentures of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one trustee, pursuant to the requirements of Section 7.09;

     (viii) to surrender any right or power herein conferred upon the Company;

     (ix) to comply with the requirements of the SEC in order to maintain the qualification of this
Indenture under the TIA;

     (x) to add or modify any other provisions with respect to matters or questions arising under
this Indenture which the Company and the Trustee may deem necessary or desirable; provided,
however, that such action pursuant to this clause (x) does not, in the good faith opinion

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of the Board of Directors of the Company (as evidenced by a board resolution) and the Trustee,
adversely affect the interests of any Holder of Debentures in any material respect;

     (xi) to the extent necessary to make provision for a Qualifying Replacement Capital Covenant;

     (xii) amend the definition of “Qualifying Preferred Stock” to provide that Qualifying
Preferred Stock be subject to a Qualifying Replacement Capital Covenant and/or a Replacement
Capital Intention;

     (xiii) eliminate the Company’s right to elect to pay cash pursuant to the Fundamental Change
Option; or

     (xiv) provide for guarantees of the Debentures and to specify the rankings of the obligations
of the guarantors under their respective guarantees.

     SECTION 9.02. With Consent of Holders. With the written consent of the Holders of at least a
majority in aggregate Principal Amount of the Debentures at the time outstanding, the Company and
the Trustee may amend this Indenture or the Debentures. However, without the consent of each
Holder affected, an amendment to this Indenture or the Debentures may not:

     (i) change the Final Maturity Date;

     (ii) change the date of any interest payment due upon the Debentures;

     (iii) reduce the Principal Amount of, or the interest on, the Debentures;

     (iv) adversely affect in any material respect the rights of the Holders to convert the
Debentures;

     (v) reduce the amount of or change the form of consideration due to Holders of the Debentures
upon their conversion thereof;

     (vi) change the currency of payment of the Debentures to a currency other than U.S. dollars;

     (vii) impair the right to institute suit for the enforcement of any payment on the Debentures
or adversely affect the right of payment, if any, at the option of the Holder; or

     (viii) reduce the percentage of Holders necessary to modify or amend the Indenture or to waive
any past default.

     After an amendment under this Section 9.02 becomes effective, the Company shall mail to each
Holder a notice briefly describing the amendment. Failure to mail such notice or a defect in the
notice shall not affect the validity of the amendment.

     SECTION 9.03. Compliance with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall comply with the TIA.

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     SECTION 9.04. Revocation and Effect of Consents, Waivers and Actions. Until an amendment,
waiver or other action by Holders becomes effective, a consent thereto by a Holder of a Debenture
hereunder is a continuing consent by the Holder and every subsequent Holder of that Debenture or
portion of the Debenture that evidences the same obligation as the consenting Holder’s Debenture,
even if notation of the consent, waiver or action is not made on the Debenture. However, any such
Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder’s Debenture
or portion of the Debenture if the Trustee receives the notice of revocation before the date the
amendment, waiver or action becomes effective. After an amendment, waiver or action becomes
effective, it shall bind every Holder.

     SECTION 9.05. Notation on or Exchange of Debentures. Debentures authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article 9 may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided
for in such supplemental indenture. If the Company shall so determine, new Debentures so modified
as to conform, in the opinion of the Board of Directors, to any such supplemental indenture may be
prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
outstanding Debentures.

     SECTION 9.06. Trustee to Sign Supplemental Indentures. The Trustee shall sign any
supplemental indenture authorized pursuant to this Article 9 if the amendment contained therein
does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it
does, the Trustee may, but need not, sign such supplemental indenture. In signing such
supplemental indenture the Trustee shall receive, and (subject to the provisions of Section 7.01)
shall be fully protected in relying upon, in addition to the documents required by Section 12.04,
an Officer’s Certificate and an Opinion of Counsel stating that such amendment is authorized or
permitted by this Indenture.

     SECTION 9.07. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Debentures theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

ARTICLE 10

CONVERSION

     SECTION 10.01. Conversion at the Option of the Holder.

     (i) The Debentures shall be convertible into shares of Common Stock at any time prior to 5:00
P.M., New York City Time, on the Business Day immediately preceding the Final Maturity Date.

     (ii) The Company appoints the Trustee as the initial conversion agent. The Trustee may resign
from its appointment as conversion agent at any time and the Company shall then appoint a new
conversion agent in accordance with this Article 10.

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     (iii) A Holder of Debentures is not entitled to any rights of a holder of Common Stock until
such Holder has converted his Debentures and received upon conversion thereof shares of Common
Stock.

     (iv) A Holder may convert a portion of the Principal Amount of such Holder’s Debentures, if
such portion is $1,000 or an integral multiple of $1,000.

     (v) To the extent that the Common Stock (or cash, pursuant to Section 10.04) received by a
Holder of Debentures upon the conversion of the Debentures is subject to U.S. withholding tax and
such Common Stock (or cash, pursuant to Section 10.04) is not sufficient to comply with the
Company’s U.S. withholding obligations with respect to these amounts, the Company may, to the
extent required by law, recoup or set-off such liability against any payments subsequently made
with respect to such Common Stock, including, but not limited to, any actual cash dividends or
distributions subsequently made with respect to such Common Stock.

     SECTION 10.02. Exercise of Conversion Right.

     (i) In order to exercise the conversion right with respect to any Debenture in certificated
form, the Company must receive at the office or agency of the Company maintained for that purpose
in The City of New York or, at the option of the Holder of such Debenture, the Corporate Trust
Office, such Debenture with the original or facsimile of the form entitled “Conversion Notice” on
the reverse thereof, duly completed and manually signed, together with such Debenture duly endorsed
for transfer, accompanied by the funds, if any, required by this Section 10.02. Such notice shall
also state the name or names (with address or addresses) in which the certificate or certificates
for any shares of Common Stock which shall be issuable on such conversion shall be issued, and
shall be accompanied by payment of transfer or similar taxes, if required pursuant to Section
10.07. In addition, if the conversion is being made pursuant to the exercise of the Fundamental
Change Option, the conversion notice shall so state.

     (ii) In order to exercise the conversion right with respect to any interest in a Global
Security, the beneficial owner must arrange for its broker, dealer or other DTC participant to
complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the
Depositary’s book-entry conversion program; deliver, or cause to be delivered, by book-entry
delivery an interest in such Global Security; furnish appropriate endorsements and transfer
documents if required by the Company or the Trustee or conversion agent; and pay the funds, if any,
required by this Section 10.02 and any transfer taxes if required pursuant to Section 10.07.

     (iii) The date on which all requirements for conversion set forth herein are satisfied is
herein referred to as the “Conversion Date.”

     (iv) The Company will deliver the Common Stock, and cash in lieu of fractional shares, if any,
as promptly as practical after the Conversion Date, but in no event later than three Business Days
thereafter.

     (v) The Person in whose name any certificate or certificates for shares of Common Stock shall
be issuable upon such conversion shall be deemed to have become on the Conversion Date the holder
of record of the shares represented thereby. All anti-dilution adjustments to the

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Conversion Rate and determinations as to entitlement to interest on the converted Debentures
shall be carried out through that date in respect of the Debentures converted and upon that date
the Holder will no longer be a Holder of such Debentures, subject to the rights of such Holder to
receive any adjustment pursuant to Section 10.03.

     (vi) Upon receipt of written confirmation from the Company of the conversion of an interest in
a Global Security, the Trustee (or other conversion agent appointed by the Company), or the
Custodian at the direction of the Trustee (or other conversion agent appointed by the Company),
shall make a notation on such Global Security as to the reduction in the Principal Amount
represented thereby. The Company shall notify the Trustee in writing of any conversions of
Debentures.

     (vii) In case any Debenture of a denomination greater than $1,000 shall be surrendered for
partial conversion, the Company shall execute and the Trustee shall, upon receipt of a Company
Order, authenticate and deliver to the Holder of the Debenture so surrendered, without charge to
the Holder, a new Debenture or Debentures in authorized denominations in an aggregate Principal
Amount equal to the unconverted portion of the surrendered Debenture.

     SECTION 10.03. Adjustment for Interest or Dividends.

     (i) If the Conversion Date applicable to the conversion of any Debenture falls after a Regular
Record Date but prior to the corresponding Interest Payment Date, interest accrued and unpaid with
respect to the Interest Payment Period for such Regular Record Date thereon shall be payable to the
Holder of record on such Regular Record Date. However, any Debenture or portion thereof
surrendered for conversion during the period from 5:00 p.m., New York City time, on the Regular
Record Date for any Interest Payment Date to 5:00 p.m., New York City time, on the Interest Payment
Date, shall be accompanied by payment, in immediately available funds or other funds acceptable to
the Company, of an amount equal to the interest payable by the Company on such Interest Payment
Date on the Principal Amount being converted; provided that no such payment need be made

     (A) if a Holder converts its Debentures in connection with a redemption and the final
date upon which Debentures may be converted to qualify for receipt of the related Additional
Shares would, if it were the Conversion Date for any Debentures, fall after a Regular Record
Date and on or prior to the corresponding Interest Payment Date,

     (B) if a Holder converts its Debentures in connection with a Make-Whole Fundamental
Change and the final date upon which Debentures may be converted to qualify for receipt of
the related Additional Shares would, if it were the Conversion Date for any Debentures, fall
after a Regular Record Date and on or prior to the corresponding Interest Payment Date,

     (C) to the extent of any overdue or deferred interest, including any Compounded
Interest, if any overdue or deferred interest exists at the time of conversion with respect
to such Debenture, or

     (D) if Holder converts its Debentures following the last Regular Record Date prior to
April 1, 2063.

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     Except as otherwise provided in this Indenture, no payment or other adjustment shall be made
for interest accrued on any Debenture converted or for dividends on any shares of Common Stock
issued upon the conversion of such Debenture hereunder.

     (ii) Accrued interest, if any, to the Conversion Date not paid in cash is deemed to be paid in
full with the shares of Common Stock delivered upon conversion, rather than cancelled, extinguished
or forfeited.

     (iii) Notwithstanding Section 10.03(ii), Holders will receive additional shares of Common
Stock (“Deferred Interest Additional Shares”), and cash in lieu of fractional shares, in lieu of
Deferred Interest, if any, including any Compounded Interest thereon accrued and unpaid through,
but not including, the Conversion Date (regardless of when such conversion occurs).

     (iv) The number of Deferred Interest Additional Shares delivered pursuant to Section
10.03(iii) shall be equal to the amount of Deferred Interest, if any, plus Compounded Interest
thereon, to, but not including, the Conversion Date divided by 97% of the average of the daily
Volume-Weighted Average Prices per share of the Company’s Common Stock for each of the five
consecutive Trading Days ending on the second Trading Day immediately prior to the Conversion Date.

     (v) If such Deferred Interest Additional Shares are required to be registered under the
Securities Act in order to be freely tradeable in the hands of Holders, then the Company will use
commercially reasonable efforts to register such Deferred Interest Additional Shares under the
Securities Act so as to permit such shares to be freely sold by Holders. If the Company is unable
to deliver freely tradeable shares to Holders, the Company will instead pay the amount of Deferred
Interest in cash through funds raised using the Alternative Payment Mechanism.

     SECTION 10.04. Cash Payments.

     (i) No fractional shares of Common Stock or scrip certificates representing fractional shares
shall be issued upon conversion of Debentures. If more than one Debenture shall be surrendered for
conversion at one time by the same Holder, the number of full shares that shall be issuable upon
conversion shall be computed on the basis of the aggregate Principal Amount of the Debentures (or
specified portions thereof to the extent permitted hereby) so surrendered. If any fractional share
of stock would be issuable upon the conversion of any Debenture or Debentures, the Company shall
make an adjustment and payment therefor in cash to the Holder of Debentures at a price equal to the
Closing Sale Price on the last Trading Day immediately preceding the Conversion Date.

     (ii) With respect to any conversion of the Debentures occurring after April 6, 2013, the
Company may, at its option, make a cash payment to converting Holders equal to the “Reference
Price” for some or all of the shares issuable upon conversion of the Debentures. If the conversion
is in respect of a Fundamental Change and the holders of shares of Common Stock receive only cash
in the Fundamental Change, the “Reference Price” will be the cash amount paid per share of Common
Stock in the Fundamental Change. Otherwise, the “Reference Price” will be the average of the
Closing Sale Price per share of Common Stock on the 20 Trading Days immediately preceding the
Conversion Date.

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     (iii) Notwithstanding anything to the contrary herein, until the Company shall have obtained
any necessary stockholder approval as required under the listing rules of the NYSE, the shares of
Common Stock issuable upon conversion of the Debentures will in no event exceed 19.99% of the
number of shares of the Company’s Common Stock outstanding immediately before the initial issuance
of the Debentures (the “Conversion Rate Cap”) and, if an event occurs that would otherwise result
in the issuance upon conversion of the Debentures of shares of the Company’s Common Stock in excess
of the Conversion Rate Cap, and the Company has not previously obtained such stockholder approval,
the Company shall either obtain stockholder approval of any shares of Common Stock issuable upon
conversion of the Debentures or, with respect only to those shares that would exceed the Conversion
Rate Cap, deliver cash in lieu of any shares of Common Stock otherwise deliverable upon Conversion
in excess of such limitation. The cash so payable per share of Common Stock will be equal to the
Reference Price. If the Company receives approval of its stockholders to issue shares of Common
Stock upon conversion of the Debentures to the maximum extent provided herein and in the
Debentures, there will be no Conversion Rate Cap and the Company will not be permitted to deliver
cash in lieu of issuing shares of its Common Stock upon conversion of debentures under this
provision.

     SECTION 10.05. Conversion Rate.

     (i) The Conversion Rate (the “Conversion Rate”) for the Debentures is 74.0741 shares of Common
Stock per each $1,000 Principal Amount of the Debentures, subject to adjustment as provided in this
Section 10.05.

     (ii) In case the Company shall hereafter pay a dividend or make a distribution to all or
substantially all holders of its outstanding Common Stock in shares of Common Stock, the Conversion
Rate shall be increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect at the opening of business on the date following the date fixed for the
determination of shareholders entitled to receive such dividend or other distribution by a
fraction,

     (A) the numerator of which shall be the sum of the number of shares of Common Stock
outstanding at the close of business on the date fixed for the determination of shareholders
entitled to receive such dividend or other distribution plus the total number of shares of
Common Stock constituting such dividend or other distribution; and

     (B) the denominator of which shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination, such increase to become
effective immediately after the opening of business on the day following the date fixed for
such determination. If any dividend or distribution of the type described in this clause
(ii) is declared but not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared.

     (iii) In case the Company shall issue to all or substantially all holders of its outstanding
shares of Common Stock rights or warrants entitling them (for a period expiring within 60 calendar
days after the date fixed for determination of shareholders entitled to receive

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such rights or warrants) to subscribe for or purchase shares of Common Stock at a price per
share less than the average of the Closing Sale Prices of the Company’s Common Stock on the five
consecutive Trading Days immediately preceding the date of the first public announcement of such
issuance of rights or warrants, the Conversion Rate shall be increased so that the same shall equal
the rate determined by multiplying the Conversion Rate in effect immediately prior to the date
fixed for determination of shareholders entitled to receive such rights or warrants by a fraction,

     (A) the numerator of which shall be the number of shares of Common Stock outstanding on
the date fixed for determination of shareholders entitled to receive such rights or warrants
plus the total number of additional shares of Common Stock offered for subscription or
purchase, and

     (B) the denominator of which shall be the sum of the number of shares of Common Stock
outstanding at the close of business on the date fixed for determination of shareholders
entitled to receive such rights or warrants plus the number of shares that the aggregate
offering price of the total number of shares so offered would purchase at Current Market
Price for the five consecutive Trading Days immediately preceding the first public
announcement of the issuance of such rights or warrants.

     Such adjustment shall be successively made whenever any such rights or warrants are issued,
and shall become effective immediately after the opening of business on the day following the date
fixed for determination of shareholders entitled to receive such rights or warrants; provided that
no adjustment to the Conversion Rate shall be made if the Holder shall otherwise participate in
such distribution without conversion as a result of holding the Debentures. To the extent that
shares of Common Stock are not delivered in respect of such rights or warrants, the Conversion Rate
shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made
upon the issuance of such rights or warrants been made on the basis of delivery of only the number
of shares of Common Stock actually delivered. In determining whether any rights or warrants
entitle the holders to subscribe for or purchase shares of Common Stock at less than the Current
Market Price, and in determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received by the Company for such rights or warrants
and any amount payable on exercise or conversion thereof, the value of such consideration, if other
than cash, to be determined by the Company’s Board of Directors.

     If the rights provided for in any future rights plan adopted by the Company have separated
from the shares of Common Stock in accordance with the provisions of the applicable stockholder
rights agreement so that the Holders of the Debentures would not be entitled to receive any rights
in respect of Common Stock issuable upon conversion of the Debentures, if any, the Conversion Rate
will be adjusted as provided in Section 10.05(v).

     (iv) In case outstanding shares of Common Stock shall be subdivided into a greater number of
shares of Common Stock or combined into a smaller number of shares of Common Stock, the Conversion
Rate in effect at the opening of business on the day following the day upon which such subdivision
or combination becomes effective shall be adjusted so that the

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same shall equal the rate determined by multiplying the Conversion Rate in effect immediately
prior to such subdivision or combination by a fraction,

     (A) the numerator of which shall be the number of shares of Common Stock outstanding
after, and solely as a result of, such subdivision or combination, and

     (B) the denominator of which shall be the number of shares of Common Stock outstanding
prior to such subdivision or combination, such increase or reduction, as the case may be, to
become effective immediately after the opening of business on the day following the day upon
which such subdivision or combination becomes effective.

     (v) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of Common Stock shares of any class of capital stock of the Company, assets (including
shares of any Subsidiary or business unit of the Company), debt securities or rights to purchase
the Company’s securities (excluding any rights described in clause (iii) above and any cash
dividends or other cash distributions), then, in each such case the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect on the Record Date with respect to such
distribution by a fraction,

     (A) the numerator of which shall be the Current Market Price of the Company’s Common
Stock on such Record Date; and

     (B) the denominator of which shall be the Current Market Price of the Company’s Common
Stock on such Record Date less the Fair Market Value (as determined by the Company’s Board
of Directors, whose determination shall be conclusive, and described in a resolution of the
Board of Directors) on the Record Date of the portion of the distribution applicable to one
share of Common Stock, such adjustment to become effective immediately prior to the opening
of business on the day following such Record Date; provided that if the then Fair Market
Value (as so determined) of the portion of the distribution applicable to one share of
Common Stock is equal to or greater than the Current Market Price of one share of Common
Stock on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be
made so that each Holder shall have the right to receive upon conversion the amount of
assets such Holder would have received had such Holder converted each Debenture prior to the
Record Date. If such dividend or distribution is not so paid or made, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared. If the Board of Directors determines the
Fair Market Value of any distribution for purposes of this Section 10.05(v) by reference to
the actual or when-issued trading market for any securities, it must, in doing so, consider
the prices in such market over the same period used in computing the Current Market Price of
one share of Common Stock on the applicable Record Date.

     Notwithstanding the foregoing, if the dividend or distribution requiring an adjustment
pursuant to this clause (v) consists of capital stock of any class or series, or similar equity
interests, of a Subsidiary or other business unit of the Company, then the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect on the Record Date with respect to such
distribution by a fraction,

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     (a) the numerator of which shall be (x) the average of the Closing Sale Prices of the
Company’s Common Stock for the 10 Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date for such distribution on the NYSE or the principal U.S. stock
exchange or interdealer quotation system on which the Company’s Common Stock is then listed
or quoted, plus (y) the market value distributed per share of the Company’s Common Stock
based upon the average of the Closing Sale Prices of the security distributed for the 10
Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Date
for such distribution on the NYSE or the principal U.S. stock exchange or interdealer
quotation system on which such security is then listed or quoted and

     (b) the denominator of which shall be the average of the Closing Sale Prices of the
Company’s Common Stock for the 10 Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date for such distribution on the NYSE or the principal U.S. stock
exchange or interdealer quotation system on which Company’s Common Stock is then listed or
quoted.

     Rights or warrants distributed by the Company to all holders of Common Stock entitling the
holders thereof to subscribe for or purchase shares of the Company’s capital stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (a “Trigger Event”): (i) are deemed to be transferred with such shares of
Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of
Common Stock, shall be deemed not to have been distributed for purposes of this Section 10.05(v)
(and no adjustment to the Conversion Rate under this Section 10.05(v) shall be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this Section 10.05(v). If any such right or warrant, including any such
existing rights or warrants distributed prior to the date of this Indenture, are subject to events,
upon the occurrence of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and Record Date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 10.05(v) was made, (1) in the case of any such rights or warrants that shall have been
redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

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     No adjustment of the Conversion Rate shall be made pursuant to this Section 10.05(v) in
respect of rights or warrants distributed or deemed distributed on any Trigger Event to the extent
that such rights or warrants are actually distributed, or reserved by the Company for distribution
to Holders of the Debentures upon conversion by such Holders of Debentures to Common Stock, unless
such rights or warrants have become separated from the Common Stock in accordance with the
provisions of the relevant agreement such that the Holders would not thereafter be entitled to
receive such rights or warrants in respect of Common Stock issuable upon conversion of the
Debentures. In such circumstances an adjustment to the Conversion Rate shall be made with respect
to Debentures then outstanding pursuant to Section 10.05(v) (to the extent required thereby) upon
the separation of the rights or warrants from the Common Stock.

     For purposes of this Section 10.05(v) and Sections 10.05(ii) and (iii), any dividend or
distribution to which this Section 10.05(v) is applicable that also includes shares of Common
Stock, or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall
be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets or
shares of capital stock other than such shares of Common Stock or rights or warrants (and any
Conversion Rate adjustment required by this Section 10.05(v) with respect to such dividend or
distribution shall then be made) immediately followed by (2) a dividend or distribution of such
shares of Common Stock or such rights or warrants (and any further Conversion Rate adjustment
required by Sections 10.05(ii) and (iii) with respect to such dividend or distribution shall then
be made), except (A) the Record Date of such dividend or distribution shall be substituted as “the
date fixed for the determination of shareholders entitled to receive such dividend or other
distribution”, “the date fixed for the determination of shareholders entitled to receive such
rights or warrants” and “the date fixed for such determination” within the meaning of Sections
10.05(ii) and (iii) and (B) any shares of Common Stock included in such dividend or distribution
shall not be deemed “outstanding at the close of business on the date fixed for such determination”
within the meaning of Section 10.05(ii).

     (vi) In case the Company shall distribute cash dividends or other cash distributions
(excluding (i) any cash that is distributed as part of a distribution requiring a Conversion Rate
adjustment pursuant to Section 10.05(vii) hereof, (ii) Regular Quarterly Cash Dividends, to the
extent the aggregate amount of such Regular Quarterly Cash Dividends in any quarterly period does
not exceed $0.025 per share of Common Stock (the “Reference Dividend Amount”) and (iii) any
dividend or distribution in connection with the Company’s liquidation, dissolution or winding up)
to all or substantially all holders of Common Stock, the Conversion Rate shall be increased based
on the following formula:

     CR1
= CR0 x MP0 / (MP0 - C)

where

     CR0 = the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
distribution;

     CR1 = the new Conversion Rate immediately on and after the Ex-Dividend Date for such
distribution;

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     MP0 = Current Market Price per share of the Company’s Common Stock on the Ex-Dividend Date for
the distribution; and

     C = the amount in cash per share that the Company distributes to holders of the Common Stock
that exceeds the Reference Dividend Amount (“Excess Amount”);

     The Reference Dividend Amount shall be subject to adjustment in a manner that is inversely
proportional to adjustments to the Conversion Rate; provided, however, that no adjustments shall be
made to the Reference Dividend Amount for any adjustment made to the Conversion Rate pursuant to
this Section 10.05(vi).

     Notwithstanding anything to the contrary in this Section 10.05(vi), if an adjustment to the
Conversion Rate is required to be made as a result of a cash dividend or other cash distribution
that is not a Regular Quarterly Cash Dividend either in whole or in part, the Reference Dividend
Amount shall be deemed to be zero for purposes of determining the adjustment to the Conversion Rate
as a result of such distribution.

     The Conversion Rate shall not be adjusted pursuant to this Section 10.05(vi) to the extent,
and only to the extent, such adjustment would cause the Conversion Price to be less than the par
value of the Common Stock. If an adjustment under this Section 10.05(vi) would otherwise cause the
Conversion Price to be less than the par value of the Common Stock, the Conversion Rate shall be
instead adjusted so that the Conversion Price is equal to the par value of the Common Stock.

     In no event shall the Conversion Rate be decreased pursuant to this Section 10.05(vi). An
adjustment to the Conversion Rate pursuant to this Section 10.05(vi) shall become effective
immediately prior to the open of business on the Ex-Dividend Date for the distribution. To the
extent a Regular Quarterly Cash Dividend is paid in multiple portions and the total of such
portions exceeds the Reference Dividend Amount, then the Conversion Rate shall first be adjusted
under this Section 10.05(vi) as a result thereof in respect of the first portion as a result of
which such Regular Quarterly Cash Dividend exceeds the Reference Dividend Amount (with the Excess
Amount for purposes of such adjustment being the amount by which such portion, when aggregated with
all previously paid portions in respect of such Regular Quarterly Cash Dividend, if any, exceeds
the Reference Dividend Amount), and the Conversion Rate shall be further adjusted under this
Section 10.05(vi) in respect of each subsequent payment, if any, constituting a portion of such
Regular Quarterly Cash Dividend (with the amount of each such subsequent portion being treated as
the Excess Amount for purposes of determining the adjustment in respect of such portion). Each
such adjustment shall become effective immediately prior to the open of business on the Ex-Dividend
Date in respect of the payment resulting in such adjustment.

     (vii) In case the Company or any of its Subsidiaries shall, at any time or from time to time,
while any of the Debentures are outstanding, distribute cash or other consideration in respect of a
tender offer or exchange offer made by the Company or any Subsidiary of the Company for all or any
portion of the Common Stock of the Company, where the sum (such sum, the “aggregate amount” for
purposes of this Section 10.05(vii)) of the amount of such cash distributed and the Fair Market
Value (as determined in good faith by the Board of Directors,

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whose determination shall be conclusive and set forth in a Board Resolution), as of the
expiration date of the tender offer or exchange offer (the last date on which shares of Common
Stock can be tendered or exchanged), of such other consideration distributed, each per share of
Common Stock purchased or exchanged, pursuant to such tender offer or exchange offer as of the
expiration date of the tender offer or exchange offer (such purchased or exchanged shares of Common
Stock, the “purchased shares” for purposes of this Section 10.05(vii)) exceeds the Closing Sale
Price per share of the Company’s Common Stock on the Trading Day immediately following the
expiration date of such tender offer or exchange offer, then, and in each case, immediately after
the close of business on such date, the Conversion Rate shall be increased so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the
close of business on the Trading Day immediately following the expiration date of such tender offer
or exchange offer by a fraction,

          (i) the numerator of which is equal to the sum of (A) the aggregate amount and (B) the product
of (I) an amount equal to (1) the number of shares of Common Stock outstanding as of the expiration
date of the tender offer or exchange offer, less (2) the purchased shares and (II) the Closing Sale
Price per share of the Company’s Common Stock on the first Trading Day immediately following the
expiration date of the tender offer or exchange offer; and

          (ii) the denominator of which shall be equal to the product of (A) the number of shares of
Common Stock outstanding as of the expiration date of the tender offer or exchange offer (including
all purchased shares) and (B) the Closing Sale Price per share of the Company’s Common Stock on the
first Trading Day immediately following the expiration date of the tender offer or exchange offer.

     An adjustment, if any, to the Conversion Rate pursuant to this Section 10.05(vii) shall become
effective immediately prior to the opening of business on the second Trading Day immediately
following the expiration date of the tender offer or exchange offer. In the event that the Company
or a Subsidiary is obligated to purchase shares of Common Stock pursuant to any such tender offer
or exchange offer, but the Company or such Subsidiary is permanently prevented by applicable law
from effecting any such purchases, or all such purchases are rescinded, then the Conversion Rate
shall again be adjusted to be the Conversion Rate which would then be in effect if such tender
offer or exchange offer had not been made. Except as set forth in the preceding sentence, if the
application of this Section 10.05(vii) to any tender offer or exchange offer would result in a
decrease in the Conversion Rate, no adjustment shall be made for such tender offer or exchange
offer under this Section 10.05(vii).

     (viii) The Company may make such increases in the Conversion Rate, in addition to those
required by Section 10.05(ii)-(vii) as the Board of Directors considers to be advisable to avoid or
diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting
from any dividend or distribution of stock (or rights to acquire stock) or from any event treated
as such for income tax purposes.

     To the extent permitted by applicable law, the Company from time to time may increase the
Conversion Rate by any amount for any period of time if the period is at least 20 Business Days,
the increase is irrevocable during the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company, which

65

 

determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the
preceding sentence, the Company shall mail to Holders of record of the Debentures, with a copy to
the Trustee, a notice of the increase, and such notice shall state the increased Conversion Rate
and the period during which it shall be in effect.

     (ix) Until April 1, 2063, no adjustment in the Conversion Rate shall be required unless such
adjustment would require an increase or decrease of at least one percent (1%) in such rate;
provided that any adjustments that by reason of this Section 10.05(ix) are not required to be made
shall be carried forward and the Company shall make such carry-forward adjustments, regardless of
whether the aggregate adjustment is less than 1%, (i) at the end of each fiscal year, beginning
with the fiscal year ending December 31, 2008, and (ii) upon a Fundamental Change, or upon a
Make-Whole Fundamental Change. All calculations under this Section 10.05 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be. No adjustment need be made for rights to purchase Common Stock pursuant
to a Company plan for reinvestment of dividends or interest or for any issuance of Common Stock or
convertible or exchangeable securities or rights to purchase Common Stock or convertible or
exchangeable securities.

     (x) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any conversion agent other than the Trustee an Officer’s Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have
received such Officer’s Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume that the last Conversion Rate of which it has
knowledge is still in effect. Promptly after delivery of such certificate, the Company shall
prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which such adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Rate to the Holder of each Debenture at its last address appearing on
the security register, within 20 calendar days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of any such adjustment.

     (xi) In any case in which this Section 10.05 provides that an adjustment shall become
effective immediately after (1) a Record Date for an event, (2) the date fixed for the
determination of shareholders entitled to receive a dividend or distribution pursuant to Section
10.05(ii), (3) a date fixed for the determination of shareholders entitled to receive rights or
warrants pursuant to Section 10.05(iii), or (4) the expiration time for any tender or exchange
offer pursuant to Section 10.05(vii), (each, an “adjustment determination date” for purposes of
this Section 10.05(xi)), the Company may elect to defer until the occurrence of the applicable
“adjustment event” (as hereinafter defined) (x) issuing to the Holder of any Debenture converted
after such adjustment determination date and before the occurrence of such adjustment event, the
additional shares of Common Stock or other securities issuable upon such conversion by reason of
the adjustment required by such adjustment event over and above the cash and, if applicable, Common
Stock issuable upon such conversion before giving effect to such adjustment and (y) paying to such
Holder any amount in cash in lieu of any fractional shares. For purposes of this Section
10.05(xi), the term “adjustment event” shall mean:

     (A) in any case referred to in clause (1) hereof, the occurrence of such event,

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     (B) in any case referred to in clause (2) hereof, the date any such dividend or
distribution is paid or made,

     (C) in any case referred to in clause (3) hereof, the date of expiration of such rights
or warrants, and

     (D) in any case referred to in clause (4) hereof, the date a sale or exchange of Common
Stock pursuant to such tender or exchange offer is consummated and becomes irrevocable.

     (xii) For purposes of this Section 10.05, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company shall not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.

     (xiii) No adjustment to the Conversion Rate shall be made pursuant to this Section 10.05 if
the Holders of the Debentures may participate in the transaction that would otherwise give rise to
adjustment pursuant to this Section 10.05.

     SECTION 10.06. Effect of Reclassification, Consolidation, Merger or Sale.

     (i) In the event of:

     (A) any reclassification of the outstanding shares of Common Stock,

     (B) any consolidation, merger, binding share exchange or combination of the Company
with another Person, or

     (C) any sale or conveyance to another Person of all or substantially all of the
properties and assets of the Company (or all or substantially all of the assets of the
Company and the Subsidiaries on a consolidated basis) as a result of which holders of Common
Stock shall be entitled to receive capital stock, other securities or other property, assets
or cash with respect to or in exchange for such Common Stock, then the Company or the
successor or purchasing Person, as the case may be, shall execute with the Trustee a
supplemental indenture (which shall comply with the TIA as in force at the date of execution
of such supplemental indenture) providing that, after the effective date of the
reclassification, consolidation, merger, binding share exchange, combination, sale or
conveyance the Holder of each Debenture then outstanding shall have the right to convert
such Debenture into Exchange Property. Such supplemental indenture shall provide for
adjustments, which shall be as nearly equivalent as may be practicable to the adjustments
provided for in Section 10.05. For the purpose of this Section 10.06, “Exchange Property”
means the kind and amount of shares of capital stock, other securities or other property or
assets (including cash) receivable upon such reclassification, change, consolidation,
merger, binding share exchange, combination, sale or conveyance by a holder of Common Stock
holding, immediately prior to the transaction, a number of shares of Common Stock equal to
the Conversion Rate (plus Additional Shares, to the extent that the holder is entitled to
Additional Shares in

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accordance with Section 10.10 upon conversion) then in effect. Notwithstanding the
foregoing, to the extent holders of the Company’s Common Stock are permitted to elect the
form of consideration to be received in such transaction, the Exchange Property will be
deemed for all purposes under this Section 10.06 to be the weighted average of the types and
amounts of consideration received by holders of Common Stock that affirmatively make an
election or, if a majority of holders that affirmatively make an election choose a single
option, the types and amounts received by those majority electing holders.

     (ii) The Company shall cause notice of the execution of the supplemental indenture referred to
in Section 10.06(i) to be mailed to each holder of Debentures, at its address appearing on the
Security Register within 20 calendar days after execution thereof. Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.

     (iii) The above provisions of this Section shall similarly apply to successive
reclassifications, consolidations, mergers, combinations, sales and conveyances.

     (iv) If this Section 10.06 applies to any event or occurrence, Section 10.05 shall not apply.

     SECTION 10.07. Taxes on Shares Issued. Certificates representing Common Stock will be issued
and delivered only after all applicable taxes and duties, if any, payable by a Holder have been
paid in full by the Holder. The Company shall not be required to pay any such tax which may be
payable in respect of any transfer involved in the issue and delivery of stock in any name other
than that of the Holder of any Debenture converted, and the Company shall not be required to issue
or deliver any such stock certificate unless and until the Person or Persons requesting the issue
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

     SECTION 10.08. Reservation of Shares, Shares to be Fully Paid; Compliance with Governmental
Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out
of its authorized but unissued shares or shares held in treasury, sufficient shares of Common Stock
to provide for the conversion of the Debentures (including any Additional Shares and Deferred
Interest Additional Shares) as required by this Indenture from time to time as such Debentures are
presented for conversion.

     Before taking any action which would cause an adjustment increasing the Conversion Rate to an
amount that would cause the Conversion Price to be reduced below the then par value, if any, of the
shares of Common Stock issuable, if any, upon conversion of the Debentures, the Company will take
all corporate action which is, in the opinion of its counsel, necessary in order that the Company
may validly and legally issue shares of such Common Stock at such adjusted Conversion Rate.

     The Company covenants that all shares of Common Stock which may be issued upon conversion of
Debentures (including any Additional Shares and Deferred Interest Additional Shares) will upon
issue be fully paid and non-assessable by the Company and free from all taxes, liens and charges
with respect to the issue thereof.

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     The Company covenants that, if any shares of Common Stock to be provided for the purpose of
conversion of Debentures hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent then permitted by
the rules and interpretations of the SEC (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.

     The Company further covenants that, if at any time the Common Stock shall be listed on NYSE or
any other national securities exchange or automated quotation system, the Company will, if
permitted by the rules of such exchange or automated quotation system, list and keep listed, so
long as the Common Stock shall be so listed on such exchange or automated quotation system, all
Common Stock issuable upon conversion of the Debentures; provided that if the rules of such
exchange or automated quotation system permit the Company to defer the listing of such Common Stock
until the first conversion of the Debentures in accordance with the provisions of this Indenture,
the Company covenants to list such Common Stock issuable upon conversion of the Debentures in
accordance with the requirements of such exchange or automated quotation system at such time.

     SECTION 10.09. Conversion-Related Notices by the Company.

     (i) In case:

     (A) the Company shall declare a dividend (or any other distribution) on its Common
Stock that would require an adjustment in the Conversion Rate pursuant to Section 10.05;

     (B) the Company shall authorize the granting to the holders of all or substantially all
of its Common Stock of rights or warrants to subscribe for or purchase any share of any
class or any other rights or warrants;

     (C) of any reclassification or reorganization of the Common Stock of the Company (other
than a subdivision or combination of its outstanding Common Stock, or a change in par value,
or from par value to no par value, or from no par value to par value) or of any
consolidation or merger to which the Company is a party and for which approval of any
stockholders of the Company is required, or of the sale or transfer (other than by pledge)
of all or substantially all of the assets of the Company; or

     (D) of the voluntary or involuntary dissolution, liquidation or winding up of the
Company; the Company shall cause to be filed with the Trustee and to be mailed to each
Holder of Debentures at its address appearing on the Security Register, as promptly as
possible but in any event at least 10 calendar days prior to the applicable date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of
such dividend, distribution or rights or warrants, or, if a record is not to be taken, the
date as of which the holders of Common Stock of record to be entitled to such dividend,
distribution or rights are to be determined, or (y) the date on which such reclassification,
reorganization, dissolution, liquidation or winding up is expected to become effective or
occur, and the date as of which it is expected that holders of

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Common Stock of record shall be entitled to exchange their Common Stock for securities
or other property deliverable upon such reclassification, reorganization, dissolution,
liquidation or winding up. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such dividend, distribution, rights or warrants,
reclassification, reorganization, dissolution, liquidation or winding up.

     (ii) The Company shall notify Holders and the Trustee as promptly as practicable following the
date the Company publicly announces any Change in Control transaction but, to the extent
practicable, in no event less than 25 Trading Days prior to the anticipated effective date of such
transaction.

     SECTION 10.10. Make-Whole Fundamental Change.

     (i) If a Make-Whole Fundamental Change occurs, the Effective Date of which is on or prior to
April 1, 2063, and a Holder elects to convert Debentures in connection with such Make-Whole
Fundamental Change, the Company shall increase the applicable Conversion Rate for the Debentures
surrendered for conversion by a number of additional shares of the Company’s Common Stock (the
“Additional Shares”) determined as set forth in clause (v) below. A conversion of Debentures shall
be deemed to be “in connection with” a Make-Whole Fundamental Change if the notice of conversion of
the Debentures is received by the conversion agent from and including the Effective Date of the
Make-Whole Fundamental Change transaction up to and including the date that is 35 days after such
date, unless such transaction is also a Fundamental Change, the Holder specifies in the notice of
conversion that such conversion is being made pursuant to the exercise of the Fundamental Change
Option and the conversion takes place during the Fundamental Change Option Period.

     (ii) The number of Additional Shares will be determined by reference to the table in clause
(v) below and is based on the date on which the Make-Whole Fundamental Change becomes effective
(the “Effective Date”) and the price paid per share of the Company’s Common Stock in the Make-Whole
Fundamental Change transaction (the “Stock Price”). If the Make-Whole Fundamental Change is an
Asset Sale Make-Whole Fundamental Change and the consideration paid for such property and assets
consists solely of cash, the Stock Price shall be the cash amount paid for such property and
assets, expressed as an amount per share of the Company’s Common Stock outstanding on the Effective
Date. If the Make-Whole Fundamental Change is a Common Stock Change Make-Whole Fundamental Change
and holders of the Company’s Common Stock receive only cash in the Make-Whole Fundamental Change
transaction, the Stock Price will equal the cash amount paid per share. In all other cases, the
Stock Price will equal the average of the Closing Sale Prices of the Common Stock over the
five-Trading Day period ending on the Trading Day immediately preceding the Effective Date.

     (iii) The Stock Prices set forth in the first row of the table below shall be adjusted as of
any date on which the Conversion Rate of the Debentures is adjusted pursuant to Section 10.05 (but
not for any increase to the Conversion Rate for a Make-Whole Fundamental Change pursuant to this
Section 10.10). The adjusted Stock Prices shall equal the prices per share applicable immediately
prior to such adjustment, multiplied by a fraction, (i) the numerator of which is the Conversion
Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and (ii) the
denominator of which is the Conversion Rate as so adjusted.

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     (iv) The number of Additional Shares will be adjusted in the same manner and for the same
events as the Conversion Rate of the Debentures is adjusted pursuant to Section 10.05(v).

     (v) The following table sets forth the Stock Price and number of Additional Shares issuable
per $1,000 principal amount of Debentures:

Number of Additional Shares (Per $1,000 Principal Amount of Debentures)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price	 
	Effective Date
	 	$	11.25	 	 	$	12.00	 	 	$	13.50	 	 	$	15.00	 	 	$	20.00	 	 	$	25.00	 	 	$	30.00	 	 	$	40.00	 	 	$	50.00	 	 	$	60.00	 	 	$	80.00	 	 	$	100.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	March 25, 2008
	 	 	14.81	 	 	 	13.78	 	 	 	11.98	 	 	 	10.62	 	 	 	7.59	 	 	 	5.80	 	 	 	4.61	 	 	 	3.16	 	 	 	2.30	 	 	 	1.74	 	 	 	1.06	 	 	 	0.68	 
	April 1, 2009
	 	 	14.81	 	 	 	12.70	 	 	 	10.95	 	 	 	9.70	 	 	 	6.90	 	 	 	5.29	 	 	 	4.22	 	 	 	2.91	 	 	 	2.14	 	 	 	1.62	 	 	 	1.00	 	 	 	0.64	 
	April 1, 2010
	 	 	14.81	 	 	 	11.91	 	 	 	10.35	 	 	 	9.01	 	 	 	6.40	 	 	 	4.90	 	 	 	3.94	 	 	 	2.73	 	 	 	2.01	 	 	 	1.54	 	 	 	0.96	 	 	 	0.62	 
	April 1, 2011
	 	 	14.81	 	 	 	10.32	 	 	 	8.80	 	 	 	7.38	 	 	 	5.07	 	 	 	3.85	 	 	 	3.10	 	 	 	2.17	 	 	 	1.63	 	 	 	1.26	 	 	 	0.81	 	 	 	0.54	 
	April 1, 2012
	 	 	14.81	 	 	 	9.05	 	 	 	7.31	 	 	 	5.45	 	 	 	3.24	 	 	 	2.28	 	 	 	1.86	 	 	 	1.32	 	 	 	1.00	 	 	 	0.79	 	 	 	0.52	 	 	 	0.36	 
	April 1, 2013
	 	 	14.81	 	 	 	7.60	 	 	 	5.26	 	 	 	2.88	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2018
	 	 	14.81	 	 	 	6.24	 	 	 	3.93	 	 	 	2.36	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2023
	 	 	14.81	 	 	 	6.30	 	 	 	3.88	 	 	 	2.40	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2028
	 	 	14.81	 	 	 	6.13	 	 	 	3.73	 	 	 	2.27	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2033
	 	 	14.81	 	 	 	5.97	 	 	 	3.58	 	 	 	2.13	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2038
	 	 	14.81	 	 	 	5.80	 	 	 	3.43	 	 	 	2.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2043
	 	 	14.81	 	 	 	5.63	 	 	 	3.28	 	 	 	1.87	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2048
	 	 	14.81	 	 	 	5.47	 	 	 	3.13	 	 	 	1.73	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2053
	 	 	14.81	 	 	 	5.30	 	 	 	2.99	 	 	 	1.60	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2058
	 	 	14.81	 	 	 	5.13	 	 	 	2.84	 	 	 	1.47	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 1, 2063
	 	 	14.81	 	 	 	4.97	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

     (vi) If the exact Stock Price and Effective Date are not set forth on the table above, then:

     (A) If the Stock Price is between two Stock Prices in the table or the Effective Date
is between two Effective Dates in the table, the number of Additional Shares will be
determined by a straight-line interpolation between the number of Additional Shares set
forth for the higher and lower Stock Prices and the two dates, as applicable, based on a
365-day year.

     (B) If the Stock Price is more than $100.00, subject to adjustment, the number of
Additional Shares will be zero.

     (C) If the Stock Price is less than $11.25, subject to adjustment, the number of
Additional Shares will be zero.

     (vii) Notwithstanding the foregoing, in no event will the total number of shares of Common
Stock issuable upon conversion of a Debenture (after giving effect to any Additional Shares
issuable pursuant to this Section 10.10) exceed 14.81 per $1,000 principal amount of

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Debentures, subject to adjustment in the same manner and for the same events as the Conversion
Rate may be adjusted pursuant to Section 10.05.

     (viii) Within thirty (30) days before any anticipated Effective Date (such date of notice, the
“Make-Whole Fundamental Change Notice Date”) of a Make-Whole Fundamental Change, the Company shall
mail, or cause to be mailed, to all Holders of record of the Debentures at their addresses shown in
the Registrar, notice of, and the Company will publicly announce, through a reputable national
newswire service, and publish on the Company’s website, the anticipated Effective Date of such
proposed Make-Whole Fundamental Change. In addition, no later than the third Business Day after
the Effective Date of the Make-Whole Fundamental Change, the Company shall mail, or cause to be
mailed, to all Holders of record of the Debentures at their addresses shown in the Registrar,
notice of, and the Company will publicly announce, through a reputable national newswire service,
and publish on the Company’s website, the effectiveness of the Make-Whole Fundamental Change.

     SECTION 10.11. Alternative Conversion Right Upon a Fundamental Change.

     (i) Upon the occurrence of a Fundamental Change, if the Current Market Price of the Common
Stock as of the Effective Date of any Fundamental Change multiplied by the Conversion Rate then in
effect is less than $1,000, each Holder shall have the option (the “Fundamental Change Option”) to
convert all or a portion of such Holder’s outstanding Debentures into fully paid and nonassessable
shares of Common Stock at an adjusted Conversion Rate equal to the lesser of (x) $1,000 divided by
such Current Market Price as of the Effective Date and (y) 250.0000 shares of Common Stock. The
Fundamental Change Option shall be exercisable at any time during the 35-day period following the
effective date of the Fundamental Change (the “Fundamental Change Option Period”).

     (ii) In lieu of issuing the shares of Common Stock issuable upon conversion in the event of a
Fundamental Change, the Company may, at its option, make a cash payment equal to the Current Market
Price as of such Effective Date for each share of such Common Stock otherwise issuable.

     (iii) Within thirty (30) before any anticipated Effective Date (such date of notice, the
“Fundamental Change Notice Date”) of a Fundamental Change, the Company shall mail, or cause to be
mailed, to all Holders of record of the Debentures at their addresses shown in the Registrar,
notice of, and the Company will publicly announce, through a reputable national newswire service,
and publish on the Company’s website, the anticipated Effective Date of such proposed Fundamental
Change. In addition, no later than the third Business Day after the Effective Date of the
Fundamental Change, the Company shall mail, or cause to be mailed, to all Holders of record of the
Debentures at their addresses shown in the Registrar notice of, and the Company will publicly
announce, through a reputable national newswire service, and publish on the Company’s website, the
effectiveness of the Fundamental Change.

     (iv) If a transaction constituting a Fundamental Change also constitutes a Make-Whole
Fundamental Change and a Holder elects to convert its Debentures pursuant to the Fundamental Change
Option, such Holder shall not be entitled to receive any Additional Shares.

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     (v) Holders electing to convert Debentures pursuant to the Fundamental Change Option must
specify in the notice of conversion that the conversion is an exercise of the Fundamental Change
Option.

     (vi) If the conversion pursuant to the exercise of the Fundamental Change Option occurs at a
time when there is outstanding any accrued and unpaid Deferred Interest in respect of prior
interest periods, a converting Holder shall also be entitled to receive upon conversion Deferred
Interest Additional Shares (or, if applicable, a cash payment in lieu thereof) as determined
pursuant to Section 10.03 hereof.

     (vii) As used herein and in the Debentures, a “Fundamental Change” shall be deemed to have
occurred upon the occurrence of either a “Change in Control” or a “Termination of Trading.”

     (A) A “Change in Control” shall be deemed to have occurred at such time as:

     (v) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act) is or becomes the “beneficial owner” (as such term is used in
Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%)
or more of the Company’s Voting Stock; or

     (w) there occurs a sale, transfer, lease, conveyance or other disposition
(other than a pledge), which for the purpose of this Section 10.11(vii)(A)(w) shall
not mean a merger or consolidation discussed in Section 10.11(vii)(A)(x), of all or
substantially all of the property or assets of the Company to any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
including any group acting for the purpose of acquiring, holding, voting or
disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange
Act (such an event, an “Asset Sale Control Change”); or

     (x) the Company consolidates with, or merges with or into, another Person or
any Person consolidates with, or merges with or into, the Company, unless either:

     (1) the persons that “beneficially owned” (as such term is used in Rule
13d-3 under the Exchange Act), directly or indirectly, the shares of the
Company’s Voting Stock immediately prior to such consolidation or merger,
“beneficially own,” directly or indirectly, immediately after such
consolidation or merger, shares of the surviving or continuing Person’s
Voting Stock representing at least a majority of the total outstanding
voting power of all outstanding classes of the Voting Stock of the surviving
or continuing Person in substantially the same proportion as such ownership
immediately prior to such consolidation or merger; or

     (2) at least ninety percent (90%) of the consideration (other than cash
payments for fractional shares or pursuant to statutory appraisal rights) in
such consolidation or merger consists of common stock and, if applicable,
any associated rights traded on a U.S. national securities

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exchange (or which will be so traded when issued or exchanged in
connection with such consolidation or merger), and, as a result of such
consolidation or merger, the Debentures, upon conversion, will be
convertible solely into such common stock and associated rights (such a
consolidation or merger that satisfies the conditions set forth in this
clause (B), a “Listed Stock Business Combination”); or

     (y) the following persons cease for any reason to constitute a majority of the
Company’s Board:

     (1) individuals who on the Issue Date constituted the Company’s Board;
and

     (2) any new directors whose election to the Company’s Board or whose
nomination for election by the Company’s stockholders was approved by at
least a majority of the directors of the Company then still in office either
who were directors of the Company on the Issue Date or whose election or
nomination for election was previously so approved; or

     (z) the Company is liquidated or dissolved or the holders of the Company’s
capital stock approve any plan or proposal for the liquidation or dissolution of the
Company.

     (B) A “Termination of Trading” shall be deemed to occur if the Common Stock of the
Company (or other common stock into which the Debentures are then convertible) is no longer
listed for trading on a U.S. national securities exchange.

     SECTION 10.12. Rights Distributions. Upon conversion of any Debenture or a portion thereof,
the Company shall make provision such that the Holder thereof shall receive, in addition to, and
concurrently with the delivery of Common Stock, the rights described in any future shareholders’
rights plan(s) of the Company adopted by the Company; provided, however, that no such provision
need be made if the rights have been separated from the Common Stock prior to the time of such
conversion, but the provisions of Section 10.05(v) shall apply.

ARTICLE 11

PAYMENT OF INTEREST

     SECTION 11.01. Interest Payments. Interest on any Debenture that is payable, and is
punctually paid or duly provided for, on any applicable Interest Payment Date shall be paid to the
person in whose name that Debenture is registered at the Close of Business on the Regular Record
Date or accrual date, as the case may be, for such interest at the office or agency of the Company
maintained for such purpose. Each installment of interest payable in cash on any Debenture shall
be paid in same-day funds by transfer to an account maintained by the payee located inside the
United States, if the Trustee shall have received proper wire transfer instructions from such payee
not later than the related Regular Record Date or accrual date, as the case may be, or, if no such
instructions have been received by check mailed to the payee at its address set forth on the
Registrar’s books. In the case of a permanent Global Security,

74

 

interest payable on any applicable payment date will be paid to the Depositary, with respect
to that portion of such permanent Global Security held for its account by Cede & Co. for the
purpose of permitting such party to credit the interest received by it in respect of such permanent
Global Security to the accounts of the beneficial owners thereof.

     SECTION 11.02. Defaulted Interest. Except as otherwise specified with respect to the
Debentures, any interest on any Debenture that is payable, but is not punctually paid or duly
provided for, within 30 days following any applicable payment date (herein called “Defaulted
Interest”, which term shall include any accrued and unpaid interest that has accrued on such
defaulted amount in accordance with paragraph 1 of the Debentures), shall forthwith cease to be
payable to the registered Holder thereof on the relevant Regular Record Date or accrual date, as
the case may be, by virtue of having been such Holder, and such Defaulted Interest may be paid by
the Company, at its election in each case, as provided in clause (i) or (ii) below. All such
Defaulted Interest shall be payable on the next Interest Payment Date.

     (i) The Company may elect to make payment of any Defaulted Interest to the persons in whose
names the Debentures are registered at the Close of Business on a special record date for the
payment of such Defaulted Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Debenture and the date of the proposed payment (which shall not be less than 20 days after such
notice is received by the Trustee), and at the same time the Company shall deposit with the Trustee
an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the
date of the proposed payment, such money when deposited to be held in trust for the benefit of the
persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed payment and not less than
10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall
promptly notify the Company of such special record date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and the special
record date therefor to be mailed, first-class postage prepaid, to each Holder at such Holder’s
address as it appears on the list of Holders maintained pursuant to Section 2.07 not less than 10
days prior to such special record date. Notice of the proposed payment of such Defaulted Interest
and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall
be paid to the persons in whose names the Debentures are registered at the Close of Business on
such special record date and shall no longer be payable pursuant to the following clause (2).

     (ii) The Company may make payment of any Defaulted Interest on the Debentures in any other
lawful manner not inconsistent with the requirements of any securities exchange on which such
Debentures may be listed, and upon such notice as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

     SECTION 11.03. Interest Rights Preserved. Subject to the foregoing provisions of this Article
11 and Section 2.06, each Debenture delivered under this Indenture upon registration of

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transfer of or in exchange for or in lieu of any other Debenture shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other Debenture.

ARTICLE 12

MISCELLANEOUS

     SECTION 12.01. Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies, or conflicts with another provision which is required to be included in this Indenture
by the TIA, the required provision shall control.

     SECTION 12.02. Notices; Address of Agency.

     (i) Any request, demand, authorization, notice, waiver, consent or communication shall be in
writing and delivered in person or mailed by first-class mail, postage prepaid, addressed as
follows or transmitted by facsimile transmission (confirmed by guaranteed overnight courier) to the
following facsimile numbers:

if to the Company:

MGIC Investment Corporation

Attention: Treasurer

                  General Counsel

MGIC Plaza

250 East Kilbourn Avenue

Milwaukee, WI  53202

Fax: (414) 347-6959

        (414) 347-2655

with a copy to:

Foley & Lardner LLP

Attention:   Benjamin F. Garmer, III

                    Patrick G. Quick777

East Wisconsin Avenue

Milwaukee, WI 53202

Fax: (414) 297-5670

if to the Trustee:

U.S. Bank National Association

Attention:  Steven F. Posto

1555 North RiverCenter Drive  Suite 301

Milwaukee, WI  53212

Phone:  (414) 905-5635

Fax:  (414) 905-5049

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     The Company or the Trustee by notice given to the other in the manner provided above may
designate additional or different addresses for subsequent notices or communications.

     Any notice or communication given to a Holder shall be mailed to the Holder, by first-class
mail, postage prepaid, at the Holder’s address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not received by the addressee.

     If the Company mails a notice or communication to the Holders, it shall mail a copy to the
Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar.

     (ii) Any request, demand, authorization, notice, waiver, consent or communication to be
provided in connection with Section 10.02 shall be in writing and delivered in person or
transmitted by facsimile transmission (confirmed by guaranteed overnight courier) to the following
facsimile numbers or via e-mail to the account or accounts specified by the Company by written
notice to the Trustee:

if to the Company:

MGIC Investment Corporation

Attention: Treasurer

                  General Counsel

MGIC Plaza

250 East Kilbourn Avenue

Milwaukee, WI  53202

Fax: (414) 347-6959

        (414) 347-2655

with a copy to:

Foley & Lardner LLP

Attention:   Benjamin F. Garmer, III

                    Patrick G. Quick777

East Wisconsin Avenue

Milwaukee, WI 53202

Fax: (414) 297-5670

if to the Trustee:

U.S. Bank National Association

Attention:  Specialized Finance

60 Livingston Avenue

St. Paul, MN  55107

Phone:  (651) 495-3520

Fax:  (651) 495-8158

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     Any notice party set forth in this Section 12.02(b) by notice given to the others in the
manner provided above may designate additional or different addresses for subsequent notices or
communications, including e-mail addresses.

     SECTION 12.03. Communication by Holders with Other Holders. Holders may communicate pursuant
to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the
Debentures. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion Agent and
anyone else shall have the protection of TIA Section 312(c).

     SECTION 12.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

     (i) an Officer’s Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with; and

     (ii) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

     SECTION 12.05. Statements Required in Certificate or Opinion. Unless the Trustee agrees, in
its sole discretion, to accept a different form or format, each Officer’s Certificate or Opinion of
Counsel with respect to compliance with a covenant or condition provided for in this Indenture
shall include:

     (i) a statement that each person making such Officer’s Certificate or Opinion of Counsel has
read such covenant or condition;

     (ii) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such Officer’s Certificate or Opinion of Counsel are
based;

     (iii) a statement that, in the opinion of each such person, he has made such examination or
investigation as is necessary to enable such person to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

     (iv) a statement that, in the opinion of such person, such covenant or condition has been
complied with.

     SECTION 12.06. Separability Clause. In case any provision in this Indenture or in the
Debentures shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     SECTION 12.07. Rules by Trustee, Paying Agent, Conversion Agent and Registrar. The Trustee
may make reasonable rules for action by or a meeting of Holders. The Registrar, Conversion Agent
and the Paying Agent may make reasonable rules for their functions.

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     SECTION 12.08. Legal Holidays. A “Legal Holiday” is any day other than a Business Day. If
any specified date (including a date for giving notice) is a Legal Holiday, the action shall be
taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on
such date is a payment in respect of the Debentures, interest shall not accrue for the intervening
period.

     SECTION 12.09. Governing Law. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS INDENTURE
AND THE SECURITIES.

     SECTION 12.10. [Intentionally Left Blank]

     SECTION 12.11. Limitation on Claim for Deferred Interest. Each Holder of a Debenture, by such
Holder’s acceptance thereof, agrees that upon any payment or distribution of assets to creditors of
the Company upon any liquidation, dissolution, winding up, reorganization, or in connection with
any insolvency, receivership or proceeding with respect to the Company, whether voluntary or not,
such Holder shall not have a claim for, and no right to receive, deferred and unpaid interest
(including Compounded Interest thereon) that has not been settled through the application of the
Alternative Payment Mechanism, to the extent that the aggregate amount of such interest exceeds the
sum of (x) interest that relates to the earliest two years of the portion of the deferral period
for which interest has not been paid and (y) an amount equal to such Holder’s pro rata share of the
excess, if any, of the Preferred Stock Issuance Cap over the aggregate amount of net proceeds from
the sale of Qualifying Preferred Stock and unconverted mandatorily convertible Preferred Stock that
we have applied to pay Deferred Interest pursuant to the Alternative Payment Mechanism; provided
that each Holder is deemed to agree that to the extent the claim for Deferred Interest exceeds the
amount set forth in clause (x), the amount it receives in respect of such excess will not exceed
the amount it would have received had the claim for such excess ranked pari passu with the
interests of the holders, if any, of Qualifying Preferred Stock.

     SECTION 12.12. No Recourse Against Others. A director, officer, employee or stockholder, as
such, of the Company shall not have any liability for any obligations of the Company under the
Debentures or this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Debenture, each Holder shall waive and release all
such liability. The waiver and release shall be part of the consideration for the issue of the
Debentures.

     SECTION 12.13. Successors. All agreements of the Company in this Indenture and the Debentures
shall bind its successors. All agreements of the Trustee in this Indenture shall bind its
successors.

     SECTION 12.14. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

(Signature Pages Follow)

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     IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf
of the respective parties hereto as of the date first above written.

	 	 	 	 	 
	 	MGIC INVESTMENT CORPORATION

 	 
	 	By:  	/s/ J. Michael Lauer	 
	 	 	Name:  	J. Michael Lauer 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as trustee

 	 
	 	By:  	/s/ Steven F. Posto	 
	 	 	Name:  	Steven F. Posto	 
	 	 	Title:  	Assistant Vice President	 
	 

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EXHIBIT A

[FORM OF FACE OF SECURITY]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), 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.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.1

THE DEBENTURES AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR ANY STATE
SECURITIES LAWS. NEITHER THIS DEBENTURE, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS DEBENTURE NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.2

BY ITS ACQUISITION HEREOF, THE HOLDER AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH DEBENTURE
PRIOR TO THE DATE WHICH IS SIX MONTHS AFTER THE LATER OF THE LAST ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS DEBENTURE
(OR ANY PREDECESSOR OF THIS DEBENTURE) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT,
(C) TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER AS DEFINED IN RULE 144A
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE

A-1

 

(D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS DEBENTURE IS COMPLETED AND DELIVERED BY
THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE.3

 

	1  This paragraph should be included if the Debenture is a Global Security.
	 
	2  This paragraph should be included only if the Debenture is a Restricted Security.
	 
	3  This paragraph should be included only if the Debenture is a Restricted Security.

A-2

 

9% CONVERTIBLE JUNIOR SUBORDINATED DEBENTURES DUE 2063

CUSIP 552848 AB 9

No. R-1

$                    

MGIC INVESTMENT CORPORATION

     This Debenture is one of a duly authorized series of Securities of MGIC INVESTMENT CORPORATION
(the “Debentures”), all issued under and pursuant to an indenture (the “Indenture”) dated as of
March 28, 2008, duly executed and delivered by MGIC INVESTMENT CORPORATION, a Wisconsin corporation
(the “Company,” which term includes any successor person under the Indenture, as hereinafter
referred to), and U.S. Bank National Association (the “Trustee”), between the Company and the
Trustee, to which Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Company and the Holders of the Debentures.

     The Company, for value received, hereby promises to pay to Cede & Co. or its registered
assigns, the principal sum of [___] U.S. Dollars ($) on the Maturity Date of the Debentures,
subject to earlier conversion by the Holders thereof pursuant to Section 10.01 of the Indenture.

     Subject to Section 2.08 and Section 2.09 of the Indenture, Interest Payment Dates shall be
April 1 and October 1, commencing on October 1, 2008.

     Reference is hereby made to the further provisions of this Debenture set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth here.

1

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be signed manually or by
facsimile by its duly authorized officer.

	 	 	 	 	 
	 	MGIC INVESTMENT CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	J. Michael Lauer 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 
	 

	 	 	 	 	 
	This is one of the Debentures
referred to in the
within-mentioned Indenture:	 	 
	 
	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION,	 	 
	as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	 
	 	 	 	 
	Dated March 28, 2008	 	 

2

 

[Form of Reverse of Debenture]

9% CONVERTIBLE JUNIOR SUBORDINATED DEBENTURES DUE 2063

     To the extent permitted by applicable law, to the extent that any rights or other provisions
of this Debenture differ from or are inconsistent with those contained in the Indenture, then the
Indenture shall control. Capitalized terms used herein but not defined shall have the meanings
assigned to them in the Indenture unless otherwise indicated.

     1. Interest. MGIC Investment Corporation., a Wisconsin corporation (including any successor
person under the Indenture hereinafter referred to, the “Company”), promises to pay interest on the
principal amount of this Debenture at the Debenture Interest Rate (as defined below) from March 28,
2008 to the Maturity Date or such earlier date as this Debenture is converted in accordance with
Section 10.01 and Section 10.11 of the Indenture.

     Subject to Section 2.08 and Section 2.09 of the Indenture, this Debenture will accrue interest
at a rate per annum of 9% of the principal amount hereof (the “Debenture Interest Rate”), payable
semi-annually in arrears on April 1 and October 1 of each year (each an “Interest Payment Date”),
commencing on October 1, 2008. Interest not paid on any Interest Payment Date, including any
interest deferred during any Optional Deferral Period, will accrue and compound semi-annually at
the Debenture Interest Rate, to the extent permitted by applicable law, as provided in the
Indenture. Subject to Section 2.08(i)(B) of the Indenture, such interest will accrue and compound
to the date that it is actually paid.

     The amount of interest on this Debenture payable for any Interest Payment Date shall be
computed (i) for any full Interest Payment Period, on the basis of a 360-day year of twelve 30-day
months, (ii) for any period shorter than a full Interest Payment Period, on the basis of 30-day
months and (iii) for any period shorter than a 30-day month, on the basis of the actual number of
days elapsed in that period.

     2. Method of Payment. For so long as the Debenture is held in book-entry-only form, interest
shall be paid on each Interest Payment Date to the Person in whose name the Debenture is registered
in the Security Register at 5:00 p.m., New York City time, on the last Business Day prior to the
Interest Payment Date (each such date a “Regular Record Date”). In the event that the Debenture is
no longer held in book-entry-only form or is not represented by Global Securities, the Company may
select different Regular Record Dates, which must each be at least one Business Day before the
relevant Interest Payment Date.

     Payment of principal of and interest on the Debenture shall be made, the transfer of the
Debenture will be registrable and the Debenture will be exchangeable for Debentures of other
denominations of a like principal amount at the office or agency of the Trustee maintained for such
purpose, initially the Corporate Trust Office. Payment of any principal and interest on Debentures
issued as Global Securities[, including this Debenture,]1 shall be payable by the
Company through the Paying Agent to the Depositary in immediately available funds. At the
Company’s option, interest on Debentures issued in physical form may be payable (i) by a U.S.
dollar check drawn on a bank in The City of New York mailed to the address of the Person

 

			
	1	 	Include for Global Securities.

1

 

entitled thereto as such address shall appear in the Security Register, or (ii) upon
application to the Registrar not later than 10 days before the Interest Payment Date by a Holder of
Debentures having an aggregate principal amount in excess of $2,000,000, by wire transfer in
immediately available funds, which application shall remain in effect until the Holder of
Debentures notifies, in writing, the Registrar to the contrary.

     3. Paying Agent, Registrar and Conversion Agent. Initially, U.S. Bank National Association,
the Trustee under the Indenture, will act as Paying Agent, Registrar and Conversion Agent. The
Company may change any Paying Agent, Registrar or Conversion Agent without notice to any Holder.
The Company or any of its Subsidiaries may act in any such capacity.

     4. Indenture. The terms of this Debenture include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”).
This Debenture is subject to all such terms, and Holders are referred to the Indenture and the TIA
for a statement of all such terms. To the extent any provision of this Debenture conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. This Debenture is an obligation of the Company.

     5. Optional Deferral of Interest. Subject to Section 2.09 of the Indenture, as long as no
Event of Default has occurred and is continuing, the Company shall have the right at any time and
from time to time, to defer payments of interest on this Debenture by extending the Interest
Payment Period on the Debenture for a period not exceeding 10 years, in the aggregate, following
the Interest Payment Date on which interest was deferred (an “Optional Deferral Period”). During
an Optional Deferral Period, Deferred Interest on this Debenture shall not be due and payable, but
will continue to accrue and compound semi-annually, to the extent permitted by applicable law, at
the Debenture Interest Rate.

     An Optional Deferral Period shall terminate on such date as all accrued and unpaid interest,
together with Compounded Interest, if any, has been paid by the Company, provided that in no event
shall an Optional Deferral Period extend beyond the date which is 10 years following the
commencement of the Optional Deferral Period, beyond the Maturity Date of this Debenture. Upon
termination of an Optional Deferral Period, the Company may commence a new Optional Deferral
Period, subject to the other conditions in Section 2.09 of the Indenture, there being no limit to
the number of such new Optional Deferral Periods the Company may elect.

     During an Optional Deferral Period, the Company shall be subject to the covenants set forth in
Section 4.05 of the Indenture.

     6. Deferral of Interest in General. Any Deferred Interest will in all events be due and
payable upon the Maturity Date, subject, in the case of Foregone Interest, to Section 2.09(vi) of
the Indenture.

     At the termination of any Optional Deferral Period, the Company shall pay all Deferred
Interest then accrued and unpaid, together with Compounded Interest, on the Interest Payment Date
on which such Optional Deferral Period terminates.

2

 

     In no event shall any Optional Deferral Period (i) exceed 10 consecutive years following the
first Interest Payment Date on which any interest payment was deferred pursuant to Section 2.09 of
the Indenture, (ii) unless Deferred Interest is satisfied using the Alternative Payment Mechanism,
end on a date other than an Interest Payment Date or (iii) extend beyond the Maturity Date. For
purposes of determining compliance with the foregoing limitation on any Optional Deferral Period,
(x) only when all Deferred Interest has been paid shall any Optional Deferral Period end; and (y)
after the commencement of an Optional Deferral Period, the period from the first Interest Payment
Date for which interest is deferred pursuant to Section 2.09 of the Indenture and ending on the
date on which all Deferred Interest, including Compounded Interest, is paid in full, shall be
included for purposes of calculating the length of an Optional Deferral Period.

     7. No Sinking Fund. The Company shall not be required to make mandatory redemption or sinking
fund payments with respect to the securities.

     8. Conversion. Subject to earlier Maturity, Holders may surrender Debentures in integral
multiples of $1,000 principal amount for conversion into shares of Common Stock at the Conversion
Rate in effect on the Conversion Date, by surrender of the interest in this Debenture so to be
converted in whole or in part, together with any required funds, under in accordance with Section
10.01 and 10.02 of the Indenture.

     [In order to exercise the conversion right with respect to any Debenture in certificated form,
the Company must receive at the office or agency of the Company maintained for that purpose in The
City of New York pursuant to Section 10.2 of the Base Indenture or, at the option of the Holder of
such Debenture, the Corporate Trust Office, such Debenture with the original or facsimile of the
form entitled “Conversion Notice” attached hereto, duly completed and manually signed, together
with such Debenture duly endorsed for transfer, accompanied by the funds, if any, required by
Section 10.02 of the Indenture.

     Such notice shall also state the name or names (with address or addresses) in which the
certificate or certificates for any shares of Common Stock which shall be issuable on such
conversion shall be issued, and shall be accompanied by transfer or similar taxes, if required
pursuant to Section 10.07 of the Indenture. In addition, if the conversion is being made pursuant
to the exercise of the Fundamental Change Option, the conversion notice shall so
state.]2

     [In order to exercise the conversion right, the beneficial owner must arrange for its broker,
dealer or other DTC participant to complete, or cause to be completed, the appropriate instruction
form for conversion pursuant to the Depositary’s book-entry conversion program; deliver, or cause
to be delivered, by book-entry delivery an interest in such Global Security; furnish appropriate
endorsements and transfer documents if required by the Company or the Trustee or conversion agent;
and pay the funds, if any, required by Section 10.02 of the Indenture and any transfer taxes if
required pursuant to Section 10.07 of the Indenture.]3

     9. Denomination, Transfer and Exchange. The Debentures are only in fully registered form
without coupons in denominations of $1,000 and any integral multiple thereof.

 

			
	2	 	Include for definitive Debentures.
	 
	3	 	Include for Global Securities.

3

 

As provided in the Indenture and subject to certain limitations herein and therein set forth,
Debentures so issued are exchangeable for a like aggregate principal amount of Debentures of a
different authorized denomination, as requested by the Holder surrendering the same.

     As provided in the Indenture and subject to certain limitations therein set forth, this
Debenture is transferable by the registered Holder hereof on the Security Register of the Company,
upon surrender of this Debenture for registration of transfer at the office or agency of the
Trustee accompanied by a written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee, duly executed by the registered Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Debentures of authorized denominations and for
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be made for any such transfer, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation thereto.

     10. Subordination. The payment of principal of and interest on this Debenture is, to the
extent and in the manner provided in the Indenture, subordinated and subject in right of payment to
the prior payment in full of all amounts then due on all Senior Indebtedness of the Company, and
this Debenture is issued subject to such subordination provisions contained in the Indenture. Each
Holder of this Debenture, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on such Holder’s behalf to take such action as
may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the
Trustee such Holder’s attorney-in-fact for any and all such purposes.

     11. Amendments and Supplements. The Indenture provides for amendments, supplements and
waivers with respect to the Indenture as set forth in Article Nine of the Indenture.

     12. Covenants. The Indenture specifies covenants of the Company with respect to the
Debentures, as set forth in Article Ten of the Base Indenture as supplemented by Article 3 of the
Indenture.

     13. Persons Deemed Owners. The registered Holder of this Debenture shall be treated as its
owner for all purposes.

     14. Modification of Indenture. With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Debentures, the Company, when authorized by a Board
Resolution, and the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental to the Indenture for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture
or of modifying in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of modifying in any manner the rights of the Holders of the Debentures;
provided, however, that, no such supplemental indenture shall, without the consent of the Holder of
each Debenture affected, (i) change the Maturity Date, (ii) change the date of any interest payment
due upon the Debentures; (iii) reduce the principal amount of, or the interest on, the Debentures;
(iv) adversely affect the rights of the Holders to convert the Debentures; (v) reduce the amount of
or change the form of consideration due to

4

 

Holders of the Debentures upon their conversion thereof; (vi) change the currency of payment
of the Debentures to a currency other than U.S. dollars; (vii) impair the right to institute suit
for the enforcement of any payment on the Debentures or adversely affect the right of repayment, if
any, at the option of the Holder; or (viii) reduce the percentage of holders necessary to modify or
amend the Indenture or to waive any past default.

     15. Events of Default and Covenant Defaults. Subject to the provisions of Article Nine of the
Indenture, each of the following events shall be an Event of Default with respect to this
Debenture, giving rise to a right in Holders hereof to declare the principal amount of this
Debenture plus accrued and unpaid interest to be due and payable immediately:

     (i) default in the payment of accrued interest in full on the Debentures on any
Interest Payment Date (whether or not such Interest Payment Date commenced an Optional
Deferral Period) and our failure on or before the conclusion of a ten-year period following
such Interest Payment Date to pay interest (including Compounded Interest) then accrued in
full;

     (ii) default in the payment of the principal of the Debentures when due, whether on the
Final Maturity Date, upon redemption, upon a declaration of acceleration or otherwise;

     (iii) default in the Company’s obligation to satisfy its conversion obligation upon
exercise of a Holder’s conversion right, which default continues for 15 days after
performance is due;

     (iv) certain events of bankruptcy, insolvency and reorganization, whether voluntary or
not, as set forth in clause (i)(D) of Section 6.01 of the Indenture.

     The Indenture provides for Covenant Defaults and remedies relating thereto with respect to the
Debentures as set forth in Article Six of the Indenture.

     By acquiring this Debenture, the Holder agrees that if there is an Event of Default pursuant
to Section 6.01(i)(D) of the Indenture prior to the Final Maturity Date or conversion of the
Debentures, any unpaid Deferred Interest, or Compounded Interest thereon, in excess of the amount
of such interest that is equal to two years of accrued and unpaid interest (including Compounded
Interest on the two earliest years of Deferred Interest) on the Debentures (the “Foregone
Interest”) shall not be due and payable and the Holder shall have no claim for, and thus no right
to receive, such Foregone Interest. Subject to the foregoing, any Deferred Interest will in all
events be due and payable upon the Final Maturity Date.

     16. Tax Treatment. Except with respect to withholding on payments of interest to non-U.S.
Holders, the Company agrees, and by acquiring an interest in a Debenture each beneficial owner of a
Debenture agrees, to treat the Debenture as indebtedness for U.S. federal income tax purposes.

     17. Governing Law. The Indenture and this Debenture shall be governed by, and construed in
accordance with, the laws of the State of New York.

5

 

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

     19. No Recourse Against Others. No recourse shall be had for the payment of the principal of,
or the interest on, this Debenture, or for any claim based hereon or otherwise in respect hereof,
or based on or in respect of the Indenture, against any incorporator, shareholder, officer or
director, past, present or future, as such, 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 issuance hereof, expressly waived and released.

     20. Authentication. This Debenture shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

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

     22. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Debentures and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Debentures or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

     23. Copies of Indenture. The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

MGIC Investment Corporation

Attention: Secretary

MGIC Plaza

250 East Kilbourn Avenue

Milwaukee, WI 53202

6

 

MGIC INVESTMENT CORPORATION

Assignment Form

To assign this Debenture, fill in the form below:

(I) or (we) assign and transfer this Debenture to

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

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

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

Date: Your Signature:

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

Signature

Guarantee:

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion
Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended

 

 

CONVERSION NOTICE

To convert this Debenture in accordance with the Indenture, check the box: o

To convert this Debenture pursuant to the exercise of a Fundamental Change Option, check the box: o

To convert only part of this Debenture, state the principal amount to be converted (must be in
multiples of $1,000):

$                    

If you want the stock certificate made out in another person’s name, fill in the form below:

 

(Insert other person’s soc. Sec. or tax I.D. no.)

 

 

 

 

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

 

Date:                    

Signature(s):                                                            

                     
                      
                      
                                    (Sign exactly as your name(s)

appear(s) on the other side of this Debenture)

Signature(s) guaranteed by:

 

(All signatures must be guaranteed by a guarantor institution participating in the Securities
Transfer Agents Medallion Program or in such other guarantee program acceptable to the Trustee.)

 

 

[SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL DEBENTURE

The following exchanges of a part of this Global Security for an interest in another Global
Security or for a definitive Debenture, or exchanges of a part of another Global Security or
definitive Debenture for an interest in this Global Security, have been made:

	 	 	 	 	 	 	 	 	 
	Amount of increase Principal Amount	 
	Amount of decrease in	 	 	 	 	 	 	 
	Principal Amount of this	 	 	 	 	 	Signature of authorized	 
	Global in principal amount of	 	Debenture following such	 	 	signatory of Trustee [or	 
	this Debenture	 	decrease (or increase)	 	 	Custodian]	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 

3 Include for Global Securities.exv10w2w8

Exhibit 10.2.8

RESTRICTED STOCK AND RESTRICTED STOCK UNIT AGREEMENT

     THIS RESTRICTED STOCK AND RESTRICTED STOCK UNIT AGREEMENT is made and entered into as of the
date indicated on the signature page under “Date of Agreement” by and between MGIC Investment
Corporation, a Wisconsin corporation (the “Company”), and the employee of Mortgage Guaranty
Insurance Corporation whose signature is set forth on the signature page hereto (the “Employee”).

INTRODUCTION

     The Company is awarding shares of the Company’s Common Stock, $1.00 par value per share (the
“Stock”), and Restricted Stock Units to the Employee under the MGIC Investment Corporation 2002
Stock Incentive Plan (the “Plan”) and this Agreement.

     This Agreement consists of this instrument and the Incorporated Terms Dated As of February 28,
2008 to Restricted Stock and Restricted Stock Unit Agreement (the “Incorporated Terms”), which
although not attached to this instrument, are part of this Agreement and were provided to the
Employee as indicated in Paragraph 1(b) below.

     The parties mutually agree as follows:

     1. Award of Restricted Stock and RSUs; Incorporated Terms.

          (a) Subject to the terms and conditions set forth herein, the Company awards the Employee (i)
the number of shares of Stock as follows: the number of shares referred to after “Shares of Base
Restricted Stock” on the signature page shall be the “Base Restricted Stock”; the number of shares
referred to after “Shares of Matching Restricted Stock” on the signature page shall be the
“Matching Restricted Stock”; and the number of shares referred to after “Shares of Time Vested
Restricted Stock” shall be the “Time Vested Restricted Stock,” except that if after “Time Vested
Restricted Stock Units” on the signature page “Yes” appears, then all shares of Stock referred to
after “Time Vested Restricted Stock” shall be awarded in the form of Restricted Stock Units (such
Restricted Stock Units, the “Time Vested RSUs”); and (ii) the number of Restricted Stock Units
equal to the number referred to after “Performance RSUs” shall be the “Performance RSUs,” provided
that if the Employee is Curt S. Culver, Patrick Sinks, J. Michael Lauer, Lawrence J. Pierzchalski
or Jeffrey H. Lane such awards shall be cancelled unless the shareholders of the Corporation
approve, in accordance with Section 162(m) of the Internal Revenue Code of 1986, as amended, a list
of performance goals that covers the Goal and the Aggregate Percentage Achievement. The term
“Restricted Stock” as used in the remainder of this Agreement shall be applied separately to the
Base Restricted Stock, the Matching Restricted Stock and the Time Vested Restricted Stock as if the
term “Restricted Stock” were the term “Base Restricted Stock,” “Matching Restricted Stock,” or
“Time Vested Restricted Stock,” as the
case may be. As used in this Agreement, the term “RSUs” means collectively all Time Vested RSUs
and all Performance RSUs.

 

 

          (b) The Incorporated Terms are incorporated in this instrument with the same effect as if they
were physically set forth in this instrument. The Incorporated Terms and this instrument
constitute a single agreement which is referred to as “this Agreement.” The terms “herein,”
“hereof,” “above” and similar terms used in this Agreement refer to this Agreement as a whole. The
“Award Notification” is the document entitled “2008 Long Term Incentive Stock Award” that was
delivered to the Employee by the Company in February or March 2008 to notify the Employee of the
award of restricted equity the legal terms of which are set forth in this Agreement. The Employee
agrees if there is any difference between the number of shares or Performance RSUs determined by
(i) the Award Notification, as delivered to the Employee, and (ii) the number of shares or
Performance RSUs awarded by the Committee, as reflected in the records of the Committee, the number
of shares or Performance RSUs reflected in the records of the Committee shall control. The
Incorporated Terms were attached to an email sent in May 2008 to the Employee from an Assistant
Secretary of the Company which included other documents relating to the Restricted Stock. The
Company is hereby advising the Employee to print and retain a copy of the Incorporated Terms. The
Employee agrees if there is any difference between the text of the Incorporated Terms obtained as
indicated above and the text of the Incorporated Terms retained by the Company’s Secretary, the
text of the copy retained by the Secretary will control.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Employee has hereunto affixed his hand and seal, all as of the day and
year set forth below.

     Date of Agreement: As of February 28, 2008

	 	 	 	 	 	 	 	 	 
	 	 	MGIC INVESTMENT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Sign
Here: ð
	 	 	 	 	 	(SEAL)	 	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Shares of Base Restricted Stock:           -0-	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Shares of Matching Restricted Stock:      -0-	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Shares of Time Vested Restricted Stock: The number set forth after the caption “Time Vested
Shares” in the Award Notification
	 
	 	 	 	 	 	 	 	 
	 	 	Performance RSUs: The number set forth after the caption “Performance Vested Shares” in
the Award Notification
	 
	 	 	 	 	 	 	 	 
	 	 	Time Vested Restricted Stock Units:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Base Restricted Stock
	 	 	Release Date:	 	Not Applicable
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Matching Restricted Stock	 	 
	 	 	Release Date:	 	Not Applicable	 	 

 -2- 

 

	 	 	 	 	 	 	 	 	 
	 	 	Time Vested Restricted	 	 	 	 
	 	 	Stock Release Date:	 	Each of February 10, 2009 – 2011	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	RSU	 	 
	 	 	Settlement Date:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Performance RSUs Release	 	Each of February 10, 2009 – 2011	 	 
	 

	 	Date:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Holding Period:	 	Applicable	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Threshold Expense Ratio:	 	 
	 	 	Target Expense Ratio:	 	 
	 	 	Maximum Expense Ratio:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Threshold Loss Ratio:	 	 
	 	 	Target Loss Ratio:	 	 
	 	 	Maximum Loss Ratio:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Threshold Share:	 	 
	 	 	Target Share:	 	 
	 	 	Maximum Share:	 	 
	 
	 	 	Goal: 	 	Applicable	 	 

*           *           *           *

	 	 	 	 	 
	 

	 	Beneficiary:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Address of Beneficiary:
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 	 	Beneficiary Tax Identification
	 

	 	No:	 	 
	 

	 	 	 	 

 -3-

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