Document:

EX-4.1

 

Exhibit 4.1

Execution Copy

$1,000,000,000

COMPUTER ASSOCIATES INTERNATIONAL, INC.

$500,000,000     4.750% Senior Notes due 2009

$500,000,000     5.625% Senior Notes due 2014

PURCHASE AGREEMENT

November 15, 2004

Banc of America Securities LLC

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

Barclays Capital Inc.

BNP Paribas Securities Corp.

KeyBanc Capital Markets

Mitsubishi Securities International plc

Wachovia Capital Markets, LLC

ABN AMRO Incorporated

Scotia Capital (USA) Inc.

c/o Banc of America Securities LLC

Hearst Tower

214 North Tryon Street

Charlotte, North Carolina 28255

     and

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

     and

J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

     1. Introductory. Computer Associates International, Inc., a Delaware
corporation (the “Company”), proposes, subject to the terms and conditions
stated herein, to issue and sell to the several initial purchasers named in
Schedule I hereto (the “Purchasers”) $500,000,000 principal amount of its
4.750% Senior Notes due 2009 (the “2009 Notes”) and $500,000,000 principal
amount of its 5.625% Senior Notes due 2014 (the “2014 Notes” and, together with
the 2009 Notes, the “Offered Securities”). The Offered Securities are to be
issued under an indenture, to be dated as of November 18, 2004 (the
“Indenture”), between the Company and The Bank of New York, as trustee (the
“Trustee”). The Securities Act of 1933, as amended, is herein referred to as
the “Securities Act”. The Offered Securities will have the benefit of a
Registration Rights Agreement (the “Registration Rights Agreement”) between the
Company and the Purchasers,

 

 

pursuant to which the Company will agree to
register the resale of the Offered Securities under the Securities Act subject
to the terms and conditions specified therein.

     The Company hereby agrees with the several Purchasers as follows:

     2. Representations and Warranties of the Company. The Company represents
and warrants to, and agrees with, the several Purchasers that:

     (a) A preliminary offering circular and an offering circular
relating to the Offered Securities to be offered by the Purchasers have
been prepared by the Company. Such preliminary offering circular and
offering circular as supplemented as of the date of this Agreement, and
any other document approved by the Company for distribution to
prospective purchasers in connection with the contemplated resale of the
Offered Securities are hereinafter collectively referred to as the
“Offering Document”. Any references herein to the Offering Document shall
be deemed to include all amendments and supplements thereto and all
documents incorporated by reference therein, unless otherwise noted. On
the date of this Agreement, the final Offering Document does not include
any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The
preceding sentence does not apply to statements in or omissions from the
Offering Document based upon written information furnished to the Company
by any Purchaser through Banc of America Securities LLC, Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc. (the “Representatives”)
specifically for use therein, it being understood and agreed that the
only such information is that described as such in Section 7(b). Except
as disclosed in the Offering Document, on the date of this Agreement, the
Company’s Annual Report on Form 10-K most recently filed with the
Securities and Exchange Commission (the “Commission”) and all subsequent
reports (collectively, the “Exchange Act Reports”) which have been filed
by the Company with the Commission or sent to shareholders pursuant to
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), do
not, in each case as of their respective dates, include any untrue
statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under
which they were made, not misleading. Such documents, when they were
filed with the Commission, conformed in all material respects to the
requirements of the Exchange Act and the rules and regulations of the
Commission thereunder.

     (b) The Company has been duly incorporated and is a validly existing
corporation in good standing under the laws of the State of Delaware,
with power and authority (corporate and other) to own its properties and
conduct its business as described in the Offering Document; and the
Company is duly qualified to do business as a foreign corporation in good
standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification,
except to the extent that all such failures to be so qualified and to be
in good standing would not, in the aggregate, have a material adverse
effect upon the financial condition, business, properties or results of
operations of the Company and its subsidiaries taken as a whole (a
“Material Adverse Effect”).

     (c) Each significant subsidiary (“Significant Subsidiary”, as such
term is defined in Rule 1-02(w) of Regulation S-X under the Securities
Act) of the Company has been

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duly incorporated and is a validly existing
corporation in good standing under the laws of the jurisdiction of its
incorporation, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Offering Document
and the Exchange Act Reports; and each Significant Subsidiary of the
Company is duly qualified to do business as a foreign corporation in good
standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification,
except to the extent that all such failures to be so qualified and to be
in good standing would not, in the aggregate, have a Material Adverse
Effect; all of the issued and outstanding capital stock of each
Significant Subsidiary of the Company has been duly authorized and
validly issued and is fully paid and nonassessable; and the capital stock
of each Significant Subsidiary owned by the Company, directly or through
subsidiaries, is owned free of liens, encumbrances and defects, other
than any such liens, encumbrances and defects which would not have a
Material Adverse Effect.

     (d) The statements in the Offering Document under the headings
“Certain United States Federal Income Tax Considerations”, “Description
of the Notes” and “Exchange Offer; Registration Rights” fairly summarize
the matters therein described.

     (e) The Indenture has been duly authorized by the Company; the
Offered Securities have been duly authorized by the Company; and when the
Offered Securities are delivered and paid for pursuant to this Agreement
on the Closing Date (as defined below), (i) the Indenture will have been
duly executed and delivered by the Company, (ii) the Indenture will
conform to the description thereof contained in the final Offering
Document and (iii) the Indenture and such Offered Securities will
constitute valid and legally binding obligations of the Company,
enforceable in accordance with their respective terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

     (f) The Registration Rights Agreement has been duly authorized by
the Company, and, upon its execution and delivery by the Company, and,
assuming due authorization, execution and delivery by the Purchasers,
will constitute the valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles, and except as any
rights to indemnity thereunder may be limited by federal and state
securities laws and public policy considerations underlying such laws.

     (g) No consent, approval, authorization, or order of, or filing
with, any governmental agency or body or any court is required for the
performance by the Company of its obligations under this Agreement, the
Indenture and Registration Rights Agreement or in connection with the
issuance and sale of the Offered Securities by the Company to the
Purchasers, except for (i) filings under state securities laws and (ii)
the filing of a registration statement in accordance with the
Registration Rights Agreement as described in the Offering Document.

     (h) The execution, delivery and performance of this Agreement, the
Indenture and the Registration Rights Agreement, and the issuance and
sale of the Offered

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Securities hereunder and compliance with the terms
and provisions hereof and thereof will not result in a breach or
violation of any of the terms and provisions of, or constitute a default
under, (i) any statute, any rule, regulation or order of any governmental
agency or body or any court, domestic or foreign, having jurisdiction
over the Company or any Significant Subsidiary of the Company or any of
their respective properties, (ii) any agreement or instrument to which
the Company or any such subsidiary is a party or by which the Company or
any such subsidiary is bound or to which any of the properties of the
Company or any such subsidiary is subject or (iii) the charter or by-laws
of the Company or any such subsidiary, except, in the case of clauses (i)
and (ii) only, for any such breach, violation or default which would not
have a Material Adverse Effect; and the Company has full corporate power
and authority to authorize, issue and sell the Offered Securities.

     (i) This Agreement has been duly authorized, executed and delivered
by the Company.

     (j) Except as disclosed in the Offering Document or as would not
have a Material Adverse Effect, the Company and its Significant
Subsidiaries have good and marketable title to all real properties and
all other properties and assets owned by them, in each case free of
liens, encumbrances and defects and hold any leased real or personal
property under valid and enforceable leases.

     (k) The Company and its subsidiaries possess adequate certificates,
authorities or permits issued by appropriate governmental agencies or
bodies necessary to conduct the business now operated by them and have
not received any notice of proceedings relating to the revocation or
modification of any such certificate, authority or permit that would,
individually or in the aggregate, have a Material Adverse Effect.

     (l) No labor dispute with the employees of the Company or any
subsidiary exists or, to the knowledge of the Company, is imminent that
would have a Material Adverse Effect.

     (m) To the best knowledge of the Company, the Company and its
Significant Subsidiaries own, possess or can acquire on terms that would
not have a Material Adverse Effect, all trademarks, trade names and other
rights to inventions, know-how, patents, copyrights and confidential
information (collectively, “intellectual property rights”) currently
employed by them in the businesses now operated by them, and have not
received any notice of infringement of or conflict with asserted rights
of others with respect to any intellectual property rights that would
reasonably be expected to result, individually or in the aggregate, in a
Material Adverse Effect.

     (n) Except as disclosed in the Offering Document, neither the
Company nor any of its Significant Subsidiaries is in violation of any
statute, any rule, regulation, decision or order of any governmental
agency or body or any court, domestic or foreign, relating to the use,
disposal or release of hazardous or toxic substances or relating to the
protection or restoration of the environment or human exposure to
hazardous or toxic substances (collectively, “environmental laws”), owns
or operates any real property
contaminated with any substance that is subject to any environmental
laws, is liable for any off-site disposal or contamination pursuant to
any environmental laws, or is subject

4

 

to any claim relating to any
environmental laws, which violation, contamination, liability or claim
would, individually or in the aggregate, have a Material Adverse Effect;
and the Company is not aware of any pending investigation which could
reasonably be expected to lead to such a claim.

     (o) Except as disclosed in the Offering Document, there are no
pending actions, suits or proceedings against or (to the best knowledge
of the Company) affecting the Company, any of its Significant
Subsidiaries or any of their respective properties that would
individually or in the aggregate have a Material Adverse Effect, or would
materially and adversely affect the ability of the Company to perform its
obligations under this Agreement, the Indenture or the Registration
Rights Agreement which are otherwise material in the context of the sale
of the Offered Securities; and no such actions, suits or proceedings are,
to the Company’s knowledge, threatened.

     (p) The financial statements included or incorporated by reference
in the Offering Document present fairly in all material respects the
financial position of the Company and its consolidated subsidiaries as of
the dates shown and their results of operations and cash flows for the
periods shown, and such financial statements have been prepared in
conformity with generally accepted accounting principles in the United
States applied on a consistent basis.

     (q) Except as disclosed in the Offering Document and the Exchange
Act Reports, since the date of the latest audited financial statements
included in the Offering Document there has been no material adverse
change, nor any development or event which could reasonably be expected
to result in a prospective material adverse change, in the financial
condition, business, properties or results of operations of the Company
and its subsidiaries taken as a whole; and, except as disclosed in or
contemplated by the Offering Document, there has been no dividend or
distribution of any kind declared, paid or made by the Company on any
class of its capital stock, other than dividends paid or made in the
ordinary course of business of the Company which are consistent, in
timing and amount, with past practice.

     (r) The Company is not an open-end investment company, unit
investment trust or face-amount certificate company that is or is
required to be registered under Section 8 of the Investment Company Act
of 1940, as amended (the “Investment Company Act”); and the Company is
not and, after giving effect to the offering and sale of the Offered
Securities and the application of the proceeds thereof as described in
the Offering Document, will not be an “investment company” as defined in
the Investment Company Act.

     (s) No securities of the same class (within the meaning of Rule
144A(d)(3) under the Securities Act) as the Offered Securities are listed
on any national securities exchange registered under Section 6 of the
Exchange Act or quoted in an automated inter-dealer quotation system.

     (t) Assuming the accuracy of the representations and warranties of
the Purchasers contained in Section 4 hereof, the offer and sale of the
Offered Securities by the
Company to the Purchasers in the manner contemplated by this
Agreement will be exempt from the registration requirements of the
Securities Act; and it is not necessary

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for such offer and sale to
qualify an indenture in respect of the Offered Securities under the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”).

     (u) Neither the Company, nor any of its affiliates, nor any person
acting on its or their behalf (i) has, within the six-month period prior
to the date hereof, offered or sold in the United States or to any U.S.
person (as such terms are defined in Regulation S under the Securities
Act (“Regulation S”)) the Offered Securities or any security of the same
class or series as the Offered Securities which offering or sale would be
integrated with the sale of the Offered Securities in a manner that would
require registration of the sale thereof to the Purchasers under the
Securities Act or (ii) has offered or will offer or sell the Offered
Securities (A) in the United States by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c)
under the Securities Act or (B) with respect to any such securities sold
in reliance on Rule 903 of Regulation S, by means of any directed selling
efforts within the meaning of Rule 902(b) of Regulation S. The Company,
its affiliates and any person acting on its or their behalf have complied
and will comply with the offering restrictions requirement of Regulation
S. The Company has not entered and will not enter into any contractual
arrangement with respect to the distribution of the Offered Securities
except for this Agreement.

     (v) Except as would not have a Material Adverse Effect (i) each
employee benefit plan, within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), that is
maintained, administered or contributed to by the Company or any of its
affiliates for employees or former employees of the Company and/or its
affiliates has been maintained in compliance with its terms and the
requirements of any applicable statutes, orders, rules and regulations,
including but not limited to ERISA and the Internal Revenue Code of 1986,
as amended (the “Code”); (ii) no prohibited transaction, within the
meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred
with respect to any such plan excluding transactions effected pursuant to
a statutory or administrative exemption; and (iii) for each such plan
that is subject to the funding rules of Section 412 of the Code or
Section 302 of ERISA, no “accumulated funding deficiency” as defined in
Section 412 of the Code has been incurred, whether or not waived, and the
fair market value of the assets of each such plan (excluding for these
purposes accrued but unpaid contributions) exceeds the present value of
all benefits accrued under such plan determined using reasonable
actuarial assumptions.

     3. Purchase, Sale and Delivery of Offered Securities. On the basis of the
representations, warranties and agreements herein contained, but subject to the
terms and conditions herein set forth, the Company agrees to sell to the
Purchasers, and the Purchasers agree, severally and not jointly, to purchase
from the Company, at a purchase price (the “Purchase Price”) of 99.261% of the
principal amount thereof with respect to the 2009 Notes and 98.855% of the
principal amount thereof with respect to the 2014 Notes, plus, in each case,
accrued interest from November 18, 2004 to the Closing Date (as hereinafter
defined), the respective principal amounts of Offered Securities set forth
opposite the name of each Purchaser in Schedule I hereto.

     Delivery of and payment for the Offered Securities shall be made at 9:00
A.M., New York City time, on November 18, 2004, which date and time may be
postponed by agreement between the Representatives and the Company or as
provided in Section 9 hereof (such date and

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time of delivery and payment for
the Offered Securities being herein called the “Closing Date”). Delivery of
the Offered Securities shall be made to the Representatives for the respective
accounts of the several Purchasers against payment by the several Purchasers
through the Representatives of the Purchase Price to or upon the order of the
Company by wire transfer payable in same-day funds to the account specified in
writing by the Company. Delivery of the Offered Securities shall be made
through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct.

     4. Representations by Purchasers; Resale by Purchasers. (a) Each
Purchaser severally represents and warrants to the Company that it is an
“accredited investor” within the meaning of Regulation D under the Securities
Act.

     (b) Each Purchaser severally acknowledges that the Offered Securities have
not been registered under the Securities Act and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons
except in accordance with Regulation S or pursuant to an exemption from the
registration requirements of the Securities Act. Each Purchaser severally
represents and agrees that it has offered and sold the Offered Securities, and
will offer and sell the Offered Securities as part of its distribution at any
time, only in accordance with Rule 903 of Regulation S or Rule 144A under the
Securities Act pursuant to the terms set forth in Exhibit A hereto.
Accordingly, neither such Purchaser nor its affiliates, nor any persons acting
on its or their behalf, have engaged or will engage in any directed selling
efforts with respect to the Offered Securities, and such Purchaser, its
affiliates and all persons acting on its or their behalf have complied and will
comply with the offering restrictions requirement of Regulation S set forth in
Exhibit A hereto.

Terms used in this subsection (b) have the meanings given to them by Regulation
S.

     The Purchasers propose to offer the Offered Securities to investors
initially at the offering price to investors set forth in the final Offering
Document.

     5. Certain Agreements of the Company. The Company agrees with several
Purchasers that:

     (a) The Company will advise the Representatives promptly of any
proposal to amend or supplement the Offering Document and will not effect
such amendment or supplementation without each of the Representatives’
consent (which shall not be unreasonably withheld or delayed). If, at any
time prior to the completion of the initial resale of the Offered
Securities by the Purchasers, any event occurs as a result of which the
Offering Document, as then amended or supplemented, would include an
untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, the Company
promptly will notify the Representatives of such event and promptly will
prepare, at its own expense, an amendment or supplement which will
correct such statement or omission. Neither the Representatives’ consent
to, nor the Purchasers’ delivery to offerees or investors of, any such
amendment or supplement shall constitute a waiver of any of the
conditions set forth in Section 6.

     (b) The Company will furnish to the Representatives copies of any
preliminary offering circular, the Offering Document and all amendments
and supplements to such

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documents, in each case as soon as available and
in such quantities as the Representatives request, and the Company will
furnish to the Representatives as of the date hereof five copies of the
final Offering Document signed by a duly authorized officer of the
Company. At any time when the Company is not subject to Section 13 or
15(d) of the Exchange Act and the outstanding Offered Securities
constitute “restricted securities” within the meaning of Rule 144(a)(3)
under the Securities Act, the Company will promptly furnish or cause to
be furnished to the Representatives (and, upon request, to each of the
other Purchasers) and, upon request of holders and prospective purchasers
of, the Offered Securities, to such holders and purchasers, copies of the
information required to be delivered to holders and prospective
purchasers of the Offered Securities pursuant to Rule 144A(d)(4) under
the Securities Act (or any successor provision thereto) in order to
permit compliance with Rule 144A in connection with resales by such
holders of the Offered Securities. The Company will pay the expenses of
printing and distributing to the Purchasers all such documents.

     (c) The Company will arrange for the qualification of the Offered
Securities for sale and the determination of their eligibility for
investment under the laws of such jurisdictions in the United States as
the Representatives designate and will continue such qualifications in
effect so long as required for the resale of the Offered Securities by
the Purchasers, provided that the Company will not be required to qualify
as a foreign corporation or to file a general consent to service of
process in any such jurisdiction.

     (d) During the period of five years hereafter (to the extent that
the Offered Securities are then outstanding), the Company will furnish to
the Representatives and, upon request, to each of the other Purchasers,
as soon as practicable after the end of each fiscal year, a copy of its
annual report to shareholders for such year, but only to the extent that
such annual report is not otherwise publicly available; and the Company
will furnish to the Representatives and, upon request, to each of the
other Purchasers, as soon as available, a copy of each periodic or
current report and any definitive proxy statement of the Company filed
with the Commission under the Exchange Act or distributed by the Company
to its shareholders, but only to the extent that such periodic or current
report or definitive proxy statement is not otherwise publicly available.

     (e) During the period of two years after the Closing Date, the
Company will, upon request, furnish to the Representatives, each of the
other Purchasers and any holder of Offered Securities a copy of the
restrictions on transfer applicable to the Offered Securities.

     (f) During the period of two years after the Closing Date, the
Company will not, and will not permit any of its affiliates (as defined
in Rule 144 under the Securities Act) to, resell any of the Offered
Securities that have been reacquired by any of them.

     (g) During the period of two years after the Closing Date, the
Company will not be or become, an open-end investment company, unit
investment trust or face-amount certificate company that is or is
required to be registered under Section 8 of the Investment Company Act.

     (h) Any information provided by the Company to publishers of
publicly available databases about the terms of the Offered Securities
shall include a statement that the

8

 

Offered Securities have not been
registered under the Securities Act and are subject to restrictions under
Rule 144A under the Securities Act and Regulation S.

     (i) The Company will refuse, and will cause all applicable trustees
and transfer agents to refuse, to register any transfer of Offered
Securities if such transfer is not made in accordance with the provisions
of Regulation S under the Securities Act, pursuant to an effective
registration statement under the Securities Act or pursuant to an
available exemption from the registration requirements of the Securities
Act; provided that the provisions of this paragraph shall not be
applicable to any Offered Security which has been transferred pursuant to
an effective registration statement or Rule 144 under the Securities Act
and, as a result of which, or otherwise, is no longer subject to
restrictions on transfer under the Securities Act.

     (j) All of the Offered Securities will contain a legend to the
effect that the transfer thereof is prohibited except in accordance with
the provisions of Regulation S, pursuant to an effective registration
statement under the Securities Act or pursuant to an available exemption
from registration under the Securities Act and that hedging transactions
involving those Offered Securities may not be conducted unless in
compliance with the Securities Act; provided that such legend may be
removed if such Offered Securities have been transferred pursuant to an
effective registration statement or Rule 144 under the Securities Act,
and, as a result of which, or otherwise, is no longer subject to
restrictions on transfer under the Securities Act.

     (k) The Company will pay all expenses incidental to the performance
of its obligations under this Agreement, the Indenture and the
Registration Rights Agreement, including (i) the fees and expenses of the
Trustee and its professional advisers; (ii) all expenses in connection
with the execution, issue, authentication, packaging and initial delivery
of the Offered Securities, the preparation and printing of this
Agreement, the Offered Securities, the Indenture, the Registration Rights
Agreement, the Offering Document and amendments and supplements thereto,
and any other document relating to the issuance, offer, sale and delivery
of the Offered Securities; (iii) the cost of any advertising approved by
the Company in connection with the issue of the Offered Securities; (iv)
any expenses (including fees and disbursements of counsel) incurred in
connection with qualification of the Offered Securities for sale under
the laws of such jurisdictions in the United States as the
Representatives designate and the printing of memoranda relating thereto;
(v) any fees charged by investment rating agencies for the rating of the
Offered Securities; and (vi) expenses incurred in distributing
preliminary offering circulars and the Offering Document (including any
amendments and supplements thereto) to or as directed by the Purchasers.
The Company will also pay or reimburse the Purchasers (to the extent
incurred by them) for all travel expenses of the Purchasers and the
Company’s officers and employees and any other expenses of the Purchasers
and the Company in connection with attending or hosting meetings with
prospective purchasers of the Offered Securities from the Purchasers.

     (l) In connection with the offering, until the Representatives shall
have notified the Company and the other Purchasers of the completion of
the resale of the Offered Securities, neither the Company nor any of its
affiliates has or will, either alone or with
one or more other persons, bid for or purchase for any account in
which it or any of its affiliates has a beneficial interest any Offered
Securities or attempt to induce any person

9

 

to purchase any Offered
Securities; and neither it nor any of its affiliates will make bids or
purchases for the purpose of creating actual, or apparent, active trading
in, or of raising the price of, the Offered Securities.

     (m) Neither the Company, nor any of its Affiliates, nor any person
acting on its or their behalf will engage in any directed selling efforts
with respect to the Offered Securities, and each of them will comply with
the offering restrictions requirement of Regulation S. Terms used in this
paragraph have the meanings given to them by Regulation S.

     (n) For a period from the date of the initial offering of the
Offered Securities by the Purchasers through the Closing Date, the
Company will not offer, sell, contract to sell, pledge or otherwise
dispose of, directly or indirectly, any United States dollar-denominated
debt securities issued or guaranteed by the Company and having a maturity
of more than one year from the date of issue or publicly disclose the
intention to make any such offer, sale, pledge or disposition, without
the prior written consent of the Representatives. The Company will not at
any time offer, sell, contract to sell, pledge or otherwise dispose of,
directly or indirectly, any securities under circumstances where such
offer, sale, pledge, contract or disposition would cause the exemption
afforded by Section 4(2) of the Securities Act or the safe harbor of
Regulation S thereunder to cease to be applicable to the offer and sale
of the Offered Securities.

     6. Conditions of the Obligations of the Purchasers. The obligations of
the several Purchasers to purchase and pay for the Offered Securities will be
subject to the accuracy of the representations and warranties on the part of
the Company herein, to the accuracy of the statements of officers of the
Company made pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions
precedent:

     (a) The Purchasers shall have received a letter, dated the date of
this Agreement, of KPMG LLP confirming that they are independent public
accountants within the meaning of the Securities Act and the applicable
published rules and regulations thereunder (“Rules and Regulations”), are
a “registered public accounting firm” with the Public Company Accounting
Oversight Board and to the effect that:

     (i) in their opinion the financial statements examined by them
and included in the Exchange Act Reports comply as to form in all
material respects with the applicable accounting requirements of
the Securities Act, the Exchange Act and the related published
Rules and Regulations;

     (ii) they have performed the procedures specified by the
American Institute of Certified Public Accountants for a review of
interim financial information as described in Statement of Auditing
Standards No. 100, Interim Financial Information, on the unaudited
financial statements included in the Exchange Act Reports;

     (iii) on the basis of the review referred to in clause (ii)
above, a reading of the latest available interim financial
statements of the Company, inquiries of officials of the Company
who have responsibility for financial and accounting

10

 

matters and
other specified procedures, nothing came to their attention that
caused them to believe that:

     (A) the unaudited financial statements included in the
Exchange Act Reports do not comply as to form in all material
respects with the applicable accounting requirements of the
Securities Act, the Exchange Act and the related published Rules
and Regulations or any material modifications should be made to
such unaudited financial statements for them to be in conformity
with generally accepted accounting principles in the United States;

     (B) at the date of the latest available balance sheet read by
such accountants, or at a subsequent specified date not more than
three business days prior to the date of this Agreement, there was
any change in the capital stock (except for the issuance of common
stock pursuant to stock options exercised), increase in long-term
debt or any decreases in excess of 10% in consolidated net current
assets or stockholders’ equity of the Company and its subsidiaries,
as compared with amounts shown on the latest balance sheet included
in the Exchange Act Reports; or

     (C) for the period from the closing date of the latest income
statement included in the Exchange Act Reports to the closing date
of the latest available income statement read by such accountants
there were any decreases, as compared with the corresponding period
of the previous fiscal year, in consolidated net revenues or
decreases in the total or per share amounts of net income;

     except in all cases set forth in clauses (B) and (C) above for
changes, increases or decreases which the Offering Document or
Exchange Act Reports disclose have occurred or may occur or which
are described in such letter; and

     (iv) they have compared specified dollar amounts (or
percentages derived from such dollar amounts) and other financial
information contained in the Offering Document and the Exchange Act
Reports (in each case to the extent that such dollar amounts,
percentages and other financial information are derived from the
general accounting records of the Company and its subsidiaries
subject to the internal controls of the Company’s accounting system
or are derived directly from such records by analysis or
computation) with the results obtained from inquiries, a reading of
such general accounting records and other procedures specified in
such letter and have found such dollar amounts, percentages and
other financial information to be in agreement with such results,
except as otherwise specified in such letter.

     (b) Subsequent to the execution and delivery of this Agreement,
there shall not have occurred (i) a change in U.S. or international
financial, political or economic conditions or currency exchange rates or
exchange controls as would, in the judgment of the Representatives, be
likely to prejudice materially the success of the proposed issue,
sale or distribution of the Offered Securities, whether in the
primary market or in respect of dealings in the secondary market, or (ii)
(A) any change, or any development or event involving a prospective
change, in the financial condition, business, properties or results

11

 

of
operations of the Company and its subsidiaries taken as a whole which, in
the judgment of a majority in interest of the Purchasers including the
Representatives, is material and adverse and makes it impractical or
inadvisable to proceed with completion of the offering or the sale of and
payment for the Offered Securities as contemplated in the Offering
Document; (B) any downgrading in the rating of any debt securities of the
Company by any “nationally recognized statistical rating organization”
(as defined for purposes of Rule 436(g) under the Securities Act), or any
public announcement that any such organization has under surveillance or
review its rating of any debt securities of the Company (other than an
announcement with positive implications of a possible upgrading, and no
implication of a possible downgrading, of such rating); (C) any
suspension or limitation of trading in securities generally on the New
York Stock Exchange, or any setting of minimum prices for trading on such
exchange, or any suspension of trading of any securities of the Company
on any exchange or in any over-the-counter market; (D) any banking
moratorium declared by U.S. federal or New York authorities; (E) any
material disruption or suspension of securities settlement or clearance
services; or (F) any outbreak or escalation of major hostilities in which
the United States is involved, any declaration of war by the United
States Congress or any other substantial national or international
calamity or emergency if, in the judgment of a majority in interest of
the Purchasers including the Representatives, the effect of any such
outbreak, escalation, declaration, calamity or emergency makes it
impractical or inadvisable to proceed with completion of the offering or
the sale of and payment for the Offered Securities as contemplated in the
Offering Document.

     (c) The Purchasers shall have received an opinion, dated the Closing
Date, of Jay H. Diamond, Esq., Vice President and Associate General
Counsel of the Company, that (subject to acceptable assumptions and
qualifications):

     (i) The Company and each of its Significant Subsidiaries has
been duly incorporated and is an existing corporation in good
standing under the laws of the jurisdiction in which it is
organized, with corporate power and authority to own its properties
and conduct its business as described in the Offering Document and
Exchange Act Reports; and the Company and each of its Significant
Subsidiaries is duly qualified to do business as a foreign
corporation in good standing in all other jurisdictions in which
its ownership or lease of property or the conduct of its business
requires such qualification, except to the extent that all failures
to be so qualified or in good standing, in the aggregate, would not
have a Material Adverse Effect;

     (ii) To such counsel’s knowledge, neither the Company nor any
of its subsidiaries (A) is in violation of its charter or by-laws,
(B) is in default, and no event has occurred, which, with notice or
lapse of time or both, would constitute a default, in the due
performance or observance of any term, covenant or condition
contained in any material agreement or instrument to which it is a
party or by which it is bound or to which any of its properties or
assets is subject or (C) is in violation of any law, ordinance,
governmental rule, regulation or court decree to
which it or its property or assets may be subject or has
failed to obtain any license, permit, certificate, franchise or
other governmental authorization or permit necessary to the
ownership of its property or to the conduct of its business

12

 

except,
in the case of clauses (B) and (C), for those defaults, violations
or failures which, either individually or in the aggregate, would
not be reasonably likely to have a Material Adverse Effect;

     (iii) To the best of such counsel’s knowledge and other than
as set forth in the Offering Document, there are no pending
actions, suits or proceedings against the Company, any of its
Significant Subsidiaries or any of their respective properties that
would reasonably be expected to have a Material Adverse Effect;
and, to the best of such counsel’s knowledge, no such proceedings
are threatened by governmental authorities or threatened by others;

     (iv) Each of this Agreement, the Indenture and the
Registration Rights Agreement has been duly and validly authorized,
executed and delivered by the Company; the Offered Securities have
been duly authorized, executed, issued and delivered and conform to
the description thereof contained in the Offering Document;
assuming that each of the Indenture, the Offered Securities and the
Registration Rights Agreement has been duly authorized, executed
and delivered by each party thereto (other than the Company) and
that, in the case of the Offered Securities, the Offered Securities
have been duly authenticated and paid for by the Purchasers
pursuant to this Agreement, each of the Indenture, the Offered
Securities and the Registration Rights Agreement constitutes the
valid and binding obligation of the Company, enforceable against
the Company in accordance with its respective terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other laws of general applicability relating to or
affecting creditors’ rights and to general equity principles;

     (v) The execution, delivery and performance of this Agreement,
the Indenture and the Registration Rights Agreement and the
issuance and sale of the Offered Securities by the Company to the
Purchasers and compliance with the terms and provisions thereof
will not result in a breach or violation of any of the terms and
provisions of, or constitute a default under, (i) any agreement or
instrument to which the Company or any of its Significant
Subsidiaries is a party or by which the Company or any such
Significant Subsidiary is bound or to which any of the properties
of the Company or any such Significant Subsidiary is subject or
(ii) the charter or by-laws of the Company or any subsidiary, and
the Company has full power and authority to authorize, issue and
sell the Offered Securities as contemplated by this Agreement,
except, in the case of clause (i) only, for any such breach,
violation or default which would not have a Material Adverse
Effect;

     (vi) The Company is not and, after giving effect to the
offering and sale of the Offered Securities and the application of
the proceeds thereof as described in the Offering Document, will
not be an “investment company” within the meaning of and subject to
regulation under the Investment Company Act; and

     (vii) Such counsel has no reason to believe that the Offering
Document or any amendment or supplement thereto, or any Exchange
Act Report, contained (as of its respective date and, in the case
of the final Offering Document, as of the date hereof and as of the
Closing Date) any untrue statement of a material fact or

13

 

omitted to
state any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under
which they were made, not misleading; the descriptions in the
Offering Document and the Exchange Act Reports of legal and
governmental proceedings and contracts and other documents are
accurate in all material respects and fairly present in all
material respects the information presented therein; it being
understood that such counsel need express no opinion as to the
financial statements or other financial data contained or
incorporated by reference in the Offering Document and contained in
the Exchange Act Reports or the statements in the Offering Document
under the heading “Certain United States Federal Income Tax
Consequences.”

     (d) The Purchasers shall have received from Sullivan & Cromwell LLP,
counsel to the Company, an opinion, in the form of Exhibit B-1 hereto,
and a disclosure letter, in the form of Exhibit B-2 hereto, each dated
the Closing Date and each in form and substance satisfactory to the
Representatives.

     (e) The Purchasers shall have received from Simpson Thacher &
Bartlett LLP, counsel for the Purchasers, such opinion or opinions, dated
the Closing Date, with respect to the incorporation of the Company, the
validity of the Offered Securities, the Offering Document, the exemption
from registration for the offer and sale of the Offered Securities by the
Company to the several Purchasers and the resales by the several
Purchasers as contemplated hereby and other related matters as the
Representatives may require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling them
to pass upon such matters.

     (f) The Purchasers shall have received a certificate, dated the
Closing Date, of the President or any Vice President and a principal
financial or accounting officer of the Company in which such officers, to
the best of their knowledge after reasonable investigation, shall state
that the representations and warranties of the Company in this Agreement
are true and correct, that the Company has complied with all agreements
and satisfied all conditions on its part to be performed or satisfied
hereunder at or prior to the Closing Date, and that, at the Closing Date,
since the date of this Agreement or subsequent to the date of the most
recent financial statements in the Exchange Act Reports there has been no
material adverse change, nor any development or event involving a
prospective material adverse change, in the financial condition,
business, properties or results of operations of the Company and its
subsidiaries taken as a whole except as set forth in or contemplated by
the Offering Document or as described in such certificate.

     (g) The Purchasers shall have received a letter, dated the Closing
Date, of KPMG LLP which meets the requirements of subsection (a) of this
Section 6, except that (A) the specified date referred to in such
subsection will be a date not more than three business days prior to the
Closing Date for the purposes of this subsection and (B) such letter may
be in the form of a “bring-down” letter.

     (h) The Purchasers shall have received a counterpart of the
Registration Rights Agreement which shall have been executed and
delivered by a duly authorized officer of the Company.

14

 

     (i) The Indenture shall have been duly executed and delivered by the
Company and the Trustee, and the Offered Securities shall have been duly
executed and delivered by the Company and duly authenticated by the
Trustee.

     The Company will furnish the Purchasers with conformed copies of such
opinions, certificates, letters and other documents as the Purchasers
reasonably request. The Representatives may in their sole discretion waive on
behalf of the Purchasers compliance with any conditions to the obligations of
the Purchasers hereunder.

     7. Indemnification and Contribution. (a) The Company will indemnify and
hold harmless each Purchaser against any losses, claims, damages or
liabilities, joint or several, to which such Purchaser may become subject,
under the Securities Act or the Exchange Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in the Offering Document, or any amendment or
supplement thereto, or any related preliminary offering circular or the
Exchange Act Reports, or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, and will reimburse each Purchaser for any legal or other
expenses reasonably incurred by such Purchaser (including, without limitation,
the fees and expenses of a single counsel (in addition to any local counsel) to
all Purchasers and any other indemnified persons in connection with any
proceeding or related proceedings) in connection with investigating or
defending any such loss, claim, damage, liability or action as such expenses
are incurred; provided, however, that the Company will not be liable in any
such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement in or
omission or alleged omission from any of such documents in reliance upon and in
conformity with written information furnished to the Company by any Purchaser
through the Representatives specifically for use therein, it being understood
and agreed that the only such information consists of the information described
as such in subsection (b) below; and provided, further, that with respect to
any untrue statement or alleged untrue statement in or omission or alleged
omission from any preliminary offering circular, the indemnity agreement
contained in this subsection (a) shall not inure to the benefit of any
Purchaser that sold the Offered Securities concerned to the person asserting
any such losses, claims, damages or liabilities, to the extent that such sale
was an initial resale by such Purchaser and any such loss, claim, damage or
liability of such Purchaser results from the fact that there was not sent or
given to such person, at or prior to the written confirmation of the sale of
such Offered Securities to such person, a copy of the Offering Document
(exclusive of any material included therein but not attached thereto) if the
Company had previously furnished copies thereof to such Purchaser and any such
untrue statement or omission was corrected in such Offering Document.

     (b) Each Purchaser will severally and not jointly indemnify and hold
harmless the Company against any losses, claims, damages or liabilities to
which the Company may become subject, under the Securities Act or the Exchange
Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Offering
Document, or any amendment or supplement thereto, or any related
preliminary offering circular, or arise out of or are based upon the omission
or the alleged omission to state therein a material fact necessary in order to
make the statements therein, in the light of the circumstances

15

 

under which they
were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
furnished to the Company by such Purchaser through the Representatives
specifically for use therein, and will reimburse any legal or other expenses
reasonably incurred by the Company in connection with investigating or
defending any such loss, claim, damage, liability or action as such expenses
are incurred, it being understood and agreed that the only such information
furnished by any Purchaser consists of: (i) the last paragraph at the bottom
of the cover page concerning the terms of the offering by the Purchasers, (ii)
the legend concerning stabilization appearing in the third paragraph on page ii
and (iii) and the information appearing in the ninth paragraph under the
caption “Plan of Distribution”.

     (c) Promptly after receipt by an indemnified party under this Section 7 of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party in writing of the
commencement thereof; but the omission so to notify the indemnifying party will
not relieve it from any liability which it may have to any indemnified party
otherwise than under subsection (a) or (b) above, except to the extent that the
indemnifying party is prejudiced thereby. In case any such action is brought
against any indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it shall elect, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (it being understood
that, except with the consent of the indemnified party, the indemnifying party
and the indemnified party shall have separate counsel), and after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section 7 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation. No indemnifying party
shall, without the prior written consent of the indemnified party (which shall
not be unreasonably withheld or delayed), effect any settlement of any pending
or threatened action in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified
party unless such settlement includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter
of such action. The indemnifying party shall not be liable for any settlement
of any proceeding without its consent (which shall not be unreasonably withheld
or delayed).

     (d) If the indemnification provided for in this Section 7 is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in subsection (a) or (b) above (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company on
the one hand and the Purchasers on the other from the offering of the Offered
Securities or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company on the one hand and the Purchasers on the
other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities as well as any other relevant equitable
considerations. The relative benefits received by the Company on

16

 

the one hand
and the Purchasers on the other shall be deemed to be in the same proportion as
the total net proceeds from the offering (before deducting expenses) received
by the Company bear to the total discounts and commissions received by the
Purchasers from the Company under this Agreement. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company or the
Purchasers and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission. The
amount paid by an indemnified party as a result of the losses, claims, damages
or liabilities referred to in the first sentence of this subsection (d) shall
be deemed to include any legal or other expenses (including, without
limitation, the fees and expenses of a single counsel (in addition to any local
counsel) to all Purchasers and any other indemnified persons in connection with
any proceeding or related proceedings) reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which
is the subject of this subsection (d). Notwithstanding the provisions of this
subsection (d), no Purchaser shall be required to contribute any amount in
excess of the amount by which the total price at which the Offered Securities
purchased by it were resold exceeds the amount of any damages which such
Purchaser has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. The Purchasers’
obligations in this subsection (d) to contribute are several in proportion to
their respective purchase obligations and not joint.

     (d) The obligations of the Company under this Section 7 shall be in
addition to any liability which the Company may otherwise have and shall
extend, upon the same terms and conditions, to each person, if any, who
controls any Purchaser within the meaning of the Securities Act or the Exchange
Act; and the obligations of the Purchasers under this Section 7 shall be in
addition to any liability which the respective Purchasers may otherwise have
and shall extend, upon the same terms and conditions, to each person, if any,
who controls the Company within the meaning of the Securities Act or the
Exchange Act.

     8. Default of Purchasers. If any Purchaser or Purchasers default in their
obligations to purchase Offered Securities hereunder and the aggregate
principal amount of Offered Securities that such defaulting Purchaser or
Purchasers agreed but failed to purchase does not exceed 10% of the total
principal amount of Offered Securities, the Representatives may make
arrangements satisfactory to the Company for the purchase of such Offered
Securities by other persons, including any of the Purchasers, but if no such
arrangements are made by the Closing Date, the non-defaulting Purchasers shall
be obligated severally, in proportion to their respective commitments
hereunder, to purchase the Offered Securities that such defaulting Purchasers
agreed but failed to purchase. If any Purchaser or Purchasers so default and
the aggregate principal amount of Offered Securities with respect to which such
default or defaults occur exceeds 10% of the total principal amount of Offered
Securities and arrangements satisfactory to the Representatives and the Company
for the purchase of such Offered Securities by other persons are not made
within 36 hours after such default, this Agreement will terminate without
liability on the part of any non-defaulting Purchaser or the Company, except as
provided in Section 9. As used in this Agreement, the term “Purchaser” includes
any person substituted for a Purchaser under this Section. Nothing herein will relieve a defaulting
Purchaser from liability for its default.

17

 

     9. Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of
the Company or its officers and of the several Purchasers set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of
any investigation, or statement as to the results thereof, made by or on behalf
of any Purchaser, the Company or any of their respective representatives,
officers or directors or any controlling person, and will survive delivery of
and payment for the Offered Securities. If this Agreement is terminated
pursuant to Section 8 or if for any reason the purchase of the Offered
Securities by the Purchasers is not consummated, the Company shall remain
responsible for the expenses to be paid or reimbursed by it pursuant to Section
5 and the respective obligations of the Company and the Purchasers pursuant to
Section 7 shall remain in effect. If the purchase of the Offered Securities by
the Purchasers is not consummated for any reason other than solely because of
the termination of this Agreement pursuant to Section 8 or the occurrence of
any event specified in Section 6(b)(i) or in clause (C) (other than a
suspension of trading of the securities of the Company), (D) or (E) of Section
6(b)(ii), the Company will reimburse the Purchasers for all out-of-pocket
expenses (including the reasonable fees and disbursements of counsel)
reasonably incurred by them in connection with the offering of the Offered
Securities.

     10. Notices. All communications hereunder will be in writing and, if sent
to the Purchasers will be mailed, delivered or telegraphed and confirmed to the
Purchasers, c/o Banc of America Securities LLC, 40 West 57th Street, 27th
Floor, New York, New York 10019, Attention: Lily Chang; Citigroup Global
Markets Inc., 388 Greenwich Street, New York, New York 10013, Attention:
General Counsel; and J.P. Morgan Securities Inc., 270 Park Avenue, 8th Floor,
New York, New York 10017, Attention: High Grade Syndicate Desk, or, if sent to
the Company, will be mailed or delivered and confirmed to it at One Computer
Associates Plaza, Islandia, New York 11749, Attention: Treasurer; provided,
however, that any notice to a Purchaser pursuant to Section 7 will be mailed,
delivered or telegraphed and confirmed to such Purchaser at the following
addresses:

Banc of America Securities LLC

40 West 57th Street

27th Floor

New York, New York 10019

Facsimile: 212-313-4778

Attention: Lily Chang

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Facsimile: 212-816-7912

Attention: General Counsel

J.P. Morgan Securities Inc.

270 Park Avenue

8th Floor

New York, New York 10017

Facsimile: 212-834-6081

Attention: High Grade Syndicate Desk

18

 

     11. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
controlling persons referred to in Section 7, and no other person will have any
right or obligation hereunder, except that holders of Offered Securities shall
be entitled to enforce the agreements for their benefit contained in the second
and third sentence of Section 5(b) hereof against the Company as if such
holders were parties thereto.

     12. Representation of Purchasers. The Representatives will act for the
several Purchasers in connection with this purchase, and any action under this
Agreement taken by you jointly or by the Representatives will be binding upon
all the Purchasers.

     13. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

     14. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

     Each party hereto hereby submits to the non-exclusive jurisdiction of the
federal and state courts in the Borough of Manhattan in The City of New York in
any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.

19

 

     If the foregoing is in accordance with the Purchasers’ understanding of
our agreement, kindly sign and return to us one of the counterparts hereof,
whereupon it will become a binding agreement between the Company and the
several Purchasers in accordance with its terms.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	COMPUTER ASSOCIATES INTERNATIONAL, INC.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

20

 

The foregoing Purchase Agreement

     is hereby confirmed and accepted

     as of the date first above written.

Banc of America Securities LLC

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

Barclays Capital Inc.

BNP Paribas Securities Corp.

KeyBanc Capital Markets

Mitsubishi Securities International plc

Wachovia Capital Markets, LLC

ABN AMRO Incorporated

Scotia Capital (USA) Inc.

By BANC OF AMERICA SECURITIES LLC

	 	 	 
	By
	 	 
	

	 	
 
	

	 	Name:
	

	 	Title:

By CITIGROUP GLOBAL MARKETS INC.

	 	 	 
	By
	 	 
	

	 	
 
	

	 	Name:
	

	 	Title:

By J.P. MORGAN SECURITIES INC.

	 	 	 
	By
	 	 
	

	 	
 
	

	 	Name:
	

	 	Title:

21

 

SCHEDULE I

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount of

	 	 	2009 Notes to	 	2014 Notes to
	Purchasers
	 	be Purchased
	 	be Purchased

	Banc of America Securities LLC
	 	$	130,208,000	 	 	$	130,208,000	 
	Citigroup Global Markets Inc
	 	 	130,208,000	 	 	 	130,208,000	 
	J.P. Morgan Securities Inc
	 	 	130,208,000	 	 	 	130,208,000	 
	Barclays Capital Inc
	 	 	17,500,000	 	 	 	17,500,000	 
	BNP Paribas Securities Corp
	 	 	17,500,000	 	 	 	17,500,000	 
	KeyBanc Capital Markets
	 	 	17,500,000	 	 	 	17,500,000	 
	Mitsubishi Securities International plc
	 	 	17,500,000	 	 	 	17,500,000	 
	Wachovia Capital Markets, LLC
	 	 	17,500,000	 	 	 	17,500,000	 
	ABN AMRO Incorporated
	 	 	13,125,000	 	 	 	13,125,000	 
	Scotia Capital (USA) Inc
	 	 	8,751,000	 	 	 	8,751,000	 
	 
	 	 	
 	 	 	 	
 	 
	Total
	 	$	500,000,000	 	 	$	500,000,000	 
	 
	 	 	
 	 	 	 	
 	 

 

 

EXHIBIT A

Selling Restrictions for Offers and

Sales outside the United States

     (1) (a) The Offered Securities have not been registered under the
Securities Act and may not be offered or sold within the United States or to,
or for the account or benefit of, U.S. persons except in accordance with
Regulation S or pursuant to an exemption from the registration requirements of
the Securities Act or unless registered under the Securities Act.

     Each Purchaser, severally and not jointly, represents and agrees that,
except as otherwise permitted by the Agreement to which this is an exhibit, it
has offered and sold the Offered Securities, and will offer and sell the
Offered Securities, (i) as part of their distribution at any time and (ii)
otherwise until 40 days after the later of the commencement of the offering and
the Closing Date, only in accordance with Rules 903 or 904 of Regulation S or
Rule 144A under the Securities Act or pursuant to an effective registration
statement under the Securities Act. Accordingly, each Purchaser represents and
agrees that neither it, any of its affiliates nor any person acting on its or
their behalf has engaged or will engage in any directed selling efforts with
respect to the Offered Securities, and that it and they have complied and will
comply with the offering restrictions requirement of Regulation S.

     Each Purchaser, severally and not jointly, agrees that, at or prior to the
confirmation of sale of Offered Securities (other than a sale of Offered
Securities pursuant to Rule 144A under the Securities Act or an effective
registration statement under the Securities Act), it shall have sent to each
distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases Offered Securities from it during the 40-day
distribution compliance period a confirmation or notice to substantially the
following effect:

“The Securities covered hereby have not been registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”),
and may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons (i) as part of their
distribution at any time or (ii) otherwise until 40 days after the
later of the commencement of the offering and November 18, 2004,
except in either case in accordance with Regulation S or Rule 144A
under the Securities Act or pursuant to an effective registration
statement under the Securities Act. Terms used above have the
meanings given to them by Regulation S.”

     (b) Terms used in this section have the meanings given to them by
Regulation S.

     (c) Each Purchaser also represents and agrees that it has not entered and
will not enter into any contractual arrangement with any distributor with
respect to the distribution of the Offered Securities, except with its
Affiliates or with the prior written consent of the Company.

     (2) Each Purchaser severally agrees that it and each of its affiliates
will not offer, solicit offers or sell the Offered Securities in the United
States by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) under the Securities Act, including, but not
limited to (i) any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over
television or radio, or (ii) any seminar or meeting whose attendees have been
invited by any general solicitation or

A-1

 

general advertising. Each Purchaser severally agrees, with respect to
resales made in reliance on Rule 144A of any of the Offered Securities, to
deliver either with the confirmation of such resale or otherwise prior to
settlement of such resale a notice to the effect that the resale of such
Offered Securities has been made in reliance upon the exemption from the
registration requirements of the Securities Act provided by Rule 144A.

     (3) Each Purchaser severally represents and agrees that (i) it has not
offered or sold and, prior to the expiry of a period of six months from the
Closing Date, will not offer or sell any Offered Securities to persons in the
United Kingdom except to persons whose ordinary activities involve them in
acquiring, holding, managing or disposing of investments (as principal or
agent) for the purposes of their businesses or otherwise in circumstances which
have not resulted and will not result in an offer to the public in the United
Kingdom within the meaning of the Public Offers of Securities Regulations 1995;
(ii) it has only communicated or caused to be communicated and will only
communicate or cause to be communicated any invitation or inducement to engage
in investment activity (within the meaning of section 21 of the Financial
Services and Markets Act 2000 (“FSMA”)) received by it in connection with the
issue or sale of any Offered Securities in circumstances in which section 21(1)
of the FSMA does not apply to the Company; and (iii) it has complied and will
comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Offered Securities in, from or otherwise involving the
United Kingdom.

A-2

 

EXHIBIT B-1

Form of Opinion of Sullivan & Cromwell LLP

November [ ], 2004

Banc of America Securities LLC,

Citigroup Global Markets Inc.,

J.P. Morgan Securities Inc.,

Barclays Capital Inc.,

BNP Paribas Securities Corp.,

KeyBanc Capital Markets,

Mitsubishi Securities International plc,

Wachovia Capital Markets, LLC,

ABN AMRO Incorporated,

Scotia Capital (USA) Inc.,

c/o Banc of America Securities LLC,

Hearst Tower,

214 North Tryon Street,

Charlotte, North Carolina 28255.

Ladies and Gentlemen:

     In connection with the several purchases today by you and the other
Initial Purchasers named in Schedule I to the Purchase Agreement, dated
November 15, 2004 (the “Purchase Agreement”), between Computer Associates
International, Inc., a Delaware corporation (the “Company”), and you, as
Initial Purchasers named therein (the “Initial Purchasers”), of $500,000,000
principal amount of the Company’s 4.750% Senior Notes due 2009 and $500,000,000
principal amount of the Company’s 5.625% Senior Notes due 2014 (together, the
“Securities”) issued pursuant to the Indenture, dated as of November 18, 2004
(the “Indenture”), between the Company and The Bank of New York, as Trustee
(the “Trustee”), we, as special counsel for the Company, have examined such
corporate records, certificates and other documents, and such questions of law,
as we have considered necessary or appropriate for the purposes of this
opinion. Upon the basis of such examination, we advise you that, in our
opinion:

     (1) The Company has been duly incorporated and is an existing
corporation in good standing under the laws of the State of Delaware.

     (2) The Indenture has been duly authorized, executed and delivered
by the Company; the Securities have been duly authorized, executed,
authenticated, issued and delivered; and the Indenture and the Securities
constitute valid and legally binding obligations of the Company
enforceable in accordance with their respective terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

     (3) The Registration Rights Agreement, dated as of November 18, 2004
(the “Registration Rights Agreement”), between the Company and you, as
Initial Purchasers,

B-1-1

 

has been duly authorized, executed and delivered by the Company and
constitutes a valid and legally binding agreement of the Company
enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors’ rights
and to general equity principles; provided, however, that we express no
opinion with respect to the indemnity provisions set forth in Section 5
of the Registration Rights Agreement.

     (4) The execution and delivery of the Purchase Agreement, the
Indenture and the Registration Rights Agreement by the Company, the
issuance of the Securities in accordance with the Indenture and the sale
of the Securities by the Company to you pursuant to the Purchase
Agreement do not, and the performance by the Company of its obligations
under the Purchase Agreement, the Indenture, the Registration Rights
Agreement and the Securities will not, violate (i) the Company’s
Certificate of Incorporation or By-laws, (ii) any Federal law of the
United States, law of the State of New York or provision of the General
Corporation Law of the State of Delaware applicable to the Company;
provided, however, that, for the purposes of this paragraph, we express
no opinion with respect to antifraud laws and fraudulent transfer laws;
provided further that insofar as performance by the Company of its
obligations under the Purchase Agreement, the Indenture, the Registration
Rights Agreement and the Securities is concerned, we express no opinion
as to bankruptcy, insolvency, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors’ rights.

     (5) The Purchase Agreement has been duly authorized, executed and
delivered by the Company.

     (6) Neither registration of the Securities under the Securities Act
of 1933, as amended, nor qualification of the Indenture under the Trust
Indenture Act of 1939, as amended, is required for (i) the offer and sale
of the Securities by the Company to you, or (ii) the reoffer and resale
of the Securities by you, in each case (i) and (ii) in the manner
contemplated by the Purchase Agreement and the Offering Circular, dated
November 15, 2004, relating to the Securities. We express no opinion,
however, as to when or under what circumstances any Securities sold by
you may be reoffered or resold.

     (7) All regulatory consents, authorizations, approvals and filings
required to be obtained or made by the Company under the Federal laws of
the United States, the laws of the State of New York and the General
Corporation Law of the State of Delaware for the issuance, sale and
delivery of the Securities by the Company to you have been obtained or
made.

     The foregoing opinion is limited to the Federal laws of the United States,
the laws of the State of New York and the General Corporation Law of the State
of Delaware, and we are expressing no opinion as to the effect of the laws of
any other jurisdiction.

     In connection with our opinion set forth in paragraph (6) above, we have,
with your approval, relied upon the representations, warranties, agreements and
undertakings of the Company and you in the Purchase Agreement as to the absence
of any general solicitation or general advertising in connection with the
offering of the Securities and certain other related matters.

B-2-1

 

     Also, with your approval, we have relied as to certain matters on
information obtained from public officials, officers of the Company and other
sources believed by us to be responsible, and we have assumed that the
Indenture has been duly authorized, executed and delivered by the Trustee, that
the Securities conform to the specimens thereof examined by us, that the
Trustee’s certificates of authentication of the Securities have been manually
signed by one of the Trustee’s authorized officers, and that the signatures on
all documents examined by us are genuine, assumptions which we have not
independently verified.

	 	 
	 
	Very truly yours,

B-3-1

 

EXHIBIT B-2

Form of Disclosure Letter of Sullivan & Cromwell LLP

November [ ], 2004

Banc of America Securities LLC,

Citigroup Global Markets Inc.,

J.P. Morgan Securities Inc.,

Barclays Capital Inc.,

BNP Paribas Securities Corp.,

KeyBanc Capital Markets,

Mitsubishi Securities International plc,

Wachovia Capital Markets, LLC,

ABN AMRO Incorporated,

Scotia Capital (USA) Inc.,

c/o Banc of America Securities LLC,

Hearst Tower,

214 North Tryon Street,

Charlotte, North Carolina 28255.

Ladies and Gentlemen:

     This is with reference to the Offering Circular, dated November 15, 2004,
and the documents incorporated by reference therein referred to under the
caption “Incorporation of Certain Documents by Reference” (the “Referenced
Documents”), relating to $500,000,000 principal amount of 4.750% Senior Notes
due 2009 and $500,000,000 principal amount of 5.625% Senior Notes due 2014
(together, the “Securities”) of Computer Associates International, Inc. (the
“Company”). The Offering Circular and the Referenced Documents do not
necessarily contain a current description of the Company’s business and affairs
since the Offering Circular provides information as of its date and the
Referenced Documents contain information as of various dates.

     As special counsel to the Company, we reviewed the Offering Circular and
the Referenced Documents and participated in discussions with your
representatives and those of the Company and its accountants. Between the date
of the Offering Circular and the time of the delivery of this letter, we
participated in further discussions with your representatives and those of the
Company and its accountants concerning certain portions of the Offering
Circular and reviewed certificates of certain officers of the Company, opinions
addressed to you from the Company’s counsel and a letter addressed to you from
the Company’s accountants. On the basis of the information that we gained in
the course of the performance of the services referred to above, considered in
the light of the experience we have gained through our practice in this field,
we confirm to you that nothing that came to our attention in the course of such
review has caused us to believe that the Offering Circular and the Referenced
Documents, taken as a whole, as of the date of the Offering Circular, contained
any untrue statement of a material fact or omitted to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. We also advise you
that nothing that came to our attention in the course of the procedures
described in the second sentence of this paragraph has caused us to believe
that the Offering Circular and the Referenced Documents,

B-2-1

 

taken as a whole, as of the time of delivery of this letter, contained any
untrue statement of a material fact or omitted to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

     The limitations inherent in the independent verification of factual
matters and the character of determinations involved in the preparation of the
Offering Circular are such, however, that we do not assume any responsibility
for the accuracy, completeness or fairness of the statements contained in the
Offering Circular or the Referenced Documents, except for those made under the
captions “Description of the Notes”, “Certain United States Federal Income Tax
Considerations”, “Exchange Offer; Registration Rights” and “Plan of
Distribution” in the Offering Circular insofar as they relate to provisions of
the documents or of the United States Federal tax law therein described. Also,
we do not express any opinion or belief as to the financial statements or other
financial data contained in the Offering Circular or the Referenced Documents.

     We are furnishing this letter to you, as Representatives of the several
Initial Purchasers, solely for the benefit of the several Initial Purchasers in
their capacity as such in connection with the offering of the Securities. This
letter is not to be relied on by or furnished to any other person (including
persons acquiring the Securities from the several Initial Purchasers) or used,
circulated, quoted or otherwise referred to for any other purpose.

Very truly yours,

B-2-1EX-4.2

 

Exhibit 4.2

Execution Copy

COMPUTER ASSOCIATES INTERNATIONAL, INC.,

as Issuer

4.750% Senior Notes due 2009

5.625% Senior Notes due 2014

INDENTURE

Dated as of November 18, 2004

THE BANK OF NEW YORK,

as Trustee

 

 

CROSS-REFERENCE TABLE

Certain Sections of this Indenture relating to Sections 310 through

318, inclusive, of the Trust Indenture Act of 1939:

	 	 	 	 	 	 	 
	TIA	 	 	 	Indenture
	Section
	 	 	 	Section

	310(a)
	 	(1)	 	 	7.10	 
	(a)
	 	(2)	 	 	7.10	 
	(a)
	 	(3)	 	 	N.A.	 
	(a)
	 	(4)	 	 	N.A.	 
	(a)
	 	(5)	 	 	7.10	 
	(b)
	 	 	 	 	7.8;7.10	 
	(c)
	 	 	 	 	N.A.	 
	311(a)
	 	 	 	 	7.11	 
	(b)
	 	 	 	 	7.11	 
	(c)
	 	 	 	 	N.A.	 
	312(a)
	 	 	 	 	2.5	 
	(b)
	 	 	 	 	10.3	 
	(c)
	 	 	 	 	10.3	 
	313(a)
	 	 	 	 	7.6	 
	(b)
	 	(1)	 	 	N.A.	 
	(b)
	 	(2)	 	 	7.6	 
	(c)
	 	 	 	 	7.6	 
	(d)
	 	 	 	 	7.6	 
	314(a)
	 	 	 	 	4.8	 
	 
	 	 	 	 	4.4;10.2	 
	(b)
	 	 	 	 	N.A.	 
	(c)
	 	(1)	 	 	10.4	 
	(c)
	 	(2)	 	 	10.4	 
	(c)
	 	(3)	 	 	N.A.	 
	(d)
	 	 	 	 	N.A.	 
	(e)
	 	 	 	 	10.5	 
	(f)
	 	 	 	 	N.A.	 
	315(a)
	 	 	 	 	7.1	 
	(b)
	 	 	 	 	7.5	 
	(c)
	 	 	 	 	7.1	 
	(d)
	 	 	 	 	7.1	 
	(e)
	 	 	 	 	6.11	 
	316(a)
	 	(last sentence)	 	 	10.6	 
	(a)
	 	(1)(A)	 	 	6.5	 
	(a)
	 	(1)(B)	 	 	6.4	 
	(a)
	 	(2)	 	 	N.A.	 
	(b)
	 	 	 	 	6.7	 
	(c)
	 	 	 	 	N.A.	 
	317(a)
	 	(1)	 	 	6.8	 
	(a)
	 	(2)	 	 	6.9	 
	(b)
	 	 	 	 	2.4	 
	318(a)
	 	 	 	 	10.1	 
	318(b)
	 	 	 	 	N.A.	 
	318(c)
	 	 	 	 	N.A.	 
	 
	 	N.A. means Not Applicable.	 	 	 	 

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE I Definitions and Incorporation by Reference
	 	 	1	 
	SECTION 1.1 Definitions
	 	 	1	 
	SECTION 1.2 Other Definitions
	 	 	5	 
	SECTION 1.3 Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	SECTION 1.4 Rules of Construction
	 	 	6	 
	SECTION 1.5 One Class of Securities
	 	 	7	 
	ARTICLE II The Securities
	 	 	7	 
	SECTION 2.1 Form and Dating
	 	 	7	 
	SECTION 2.2 Execution and Authentication
	 	 	7	 
	SECTION 2.3 Registrar and Paying Agent
	 	 	8	 
	SECTION 2.4 Paying Agent To Hold Money in Trust
	 	 	8	 
	SECTION 2.5 Securityholder Lists
	 	 	9	 
	SECTION 2.6 Business Days
	 	 	9	 
	SECTION 2.7 Replacement Securities
	 	 	9	 
	SECTION 2.8 Outstanding Securities
	 	 	9	 
	SECTION 2.9 Temporary Securities
	 	 	10	 
	SECTION 2.10 Cancellation
	 	 	10	 
	SECTION 2.11 Defaulted Interest
	 	 	10	 
	SECTION 2.12 CUSIP Numbers
	 	 	10	 
	ARTICLE III Redemption
	 	 	11	 
	SECTION 3.1 Notices to Trustee
	 	 	11	 
	SECTION 3.2 Selection of Securities To Be Redeemed
	 	 	11	 
	SECTION 3.3 Notice of Redemption
	 	 	11	 
	SECTION 3.4 Effect of Notice of Redemption
	 	 	12	 
	SECTION 3.5 Deposit of Redemption Price
	 	 	12	 
	SECTION 3.6 Securities Redeemed in Part
	 	 	12	 
	ARTICLE IV Covenants
	 	 	13	 
	SECTION 4.1 Payment of Securities
	 	 	13	 
	SECTION 4.2 Limitations on Liens
	 	 	13	 
	SECTION 4.3 Limitation on Sale and Lease-Back Transactions
	 	 	15	 
	SECTION 4.4 Compliance Certificate
	 	 	16	 

i

 

	 	 	 	 	 
	 	 	Page

	SECTION 4.5 Further Instruments and Acts
	 	 	16	 
	SECTION 4.6 Maintenance of Office or Agency
	 	 	16	 
	SECTION 4.7 Corporate Existence
	 	 	16	 
	SECTION 4.8 SEC Reports
	 	 	16	 
	SECTION 4.9 Additional Interest Notice
	 	 	16	 
	ARTICLE V Successor Company
	 	 	16	 
	SECTION 5.1 When the Company May Merge or Transfer Assets
	 	 	16	 
	ARTICLE VI Defaults and Remedies
	 	 	17	 
	SECTION 6.1 Events of Default
	 	 	17	 
	SECTION 6.2 Acceleration
	 	 	19	 
	SECTION 6.3 Other Remedies
	 	 	19	 
	SECTION 6.4 Waiver of Past Defaults
	 	 	20	 
	SECTION 6.5 Control by Majority
	 	 	20	 
	SECTION 6.6 Limitation on Suits
	 	 	20	 
	SECTION 6.7 Rights of Holders To Receive Payment
	 	 	21	 
	SECTION 6.8 Collection Suit by Trustee
	 	 	21	 
	SECTION 6.9 Trustee May File Proofs of Claim
	 	 	21	 
	SECTION 6.10 Priorities
	 	 	21	 
	SECTION 6.11 Undertaking for Costs
	 	 	21	 
	SECTION 6.12 Waiver of Stay or Extension Laws
	 	 	22	 
	ARTICLE VII Trustee
	 	 	22	 
	SECTION 7.1 Duties of Trustee
	 	 	22	 
	SECTION 7.2 Rights of Trustee
	 	 	23	 
	SECTION 7.3 Individual Rights of Trustee
	 	 	24	 
	SECTION 7.4 Trustee’s Disclaimer
	 	 	24	 
	SECTION 7.5 Notice of Defaults
	 	 	24	 
	SECTION 7.6 Reports by Trustee to Holders
	 	 	25	 
	SECTION 7.7 Compensation and Indemnity
	 	 	25	 
	SECTION 7.8 Replacement of Trustee
	 	 	26	 
	SECTION 7.9 Successor Trustee by Merger
	 	 	26	 
	SECTION 7.10 Eligibility; Disqualification
	 	 	27	 
	SECTION 7.11 Preferential Collection of Claims Against Company
	 	 	27	 
	ARTICLE VIII Discharge of Indenture; Defeasance
	 	 	27	 
	SECTION 8.1 Discharge of Liability on Securities; Defeasance
	 	 	27	 

ii

 

	 	 	 	 	 
	 	 	Page

	SECTION 8.2 Conditions to Defeasance
	 	 	28	 
	SECTION 8.3 Application of Trust Money
	 	 	30	 
	SECTION 8.4 Repayment to Company
	 	 	30	 
	SECTION 8.5 Indemnity for Government Obligations
	 	 	30	 
	SECTION 8.6 Reinstatement
	 	 	30	 
	ARTICLE IX Amendments
	 	 	30	 
	SECTION 9.1 Without Consent of Holders
	 	 	30	 
	SECTION 9.2 With Consent of Holders
	 	 	31	 
	SECTION 9.3 Compliance with Trust Indenture Act
	 	 	32	 
	SECTION 9.4 Revocation and Effect of Consents and Waivers
	 	 	32	 
	SECTION 9.5 Notation on or Exchange of Securities
	 	 	32	 
	SECTION 9.6 Trustee To Sign Amendments
	 	 	32	 
	SECTION 9.7 Payment for Consent
	 	 	33	 
	ARTICLE X            Miscellaneous
	 	 	33	 
	SECTION 10.1 Trust Indenture Act Controls
	 	 	33	 
	SECTION 10.2 Notices
	 	 	33	 
	SECTION 10.3 Communication by Holders with other Holders
	 	 	34	 
	SECTION 10.4 Certificate and Opinion as to Conditions Precedent
	 	 	34	 
	SECTION 10.5 Statements Required in Certificate or Opinion
	 	 	34	 
	SECTION 10.6 When Securities Disregarded
	 	 	34	 
	SECTION 10.7 Rules by Trustee, Paying Agent and Registrar
	 	 	35	 
	SECTION 10.8 Governing Law; Waiver of Jury Trial
	 	 	35	 
	SECTION 10.9 No Recourse Against Others
	 	 	35	 
	SECTION 10.10 Successors
	 	 	35	 
	SECTION 10.11 Multiple Originals
	 	 	35	 
	SECTION 10.12 Variable Provisions
	 	 	35	 
	SECTION 10.13 Qualification of Indenture
	 	 	35	 
	SECTION 10.14 Table of Contents; Headings
	 	 	36	 

Rule 144A/Regulation S Appendix

Exhibit 1 to Appendix - Form of Initial Security or Additional Security

Exhibit A - Form of Exchange Security or Private Exchange Security

iii

 

          INDENTURE, dated as of November 18, 2004, between Computer Associates
International, Inc., a Delaware corporation (the “Company”), and The Bank of
New York, a New York banking corporation, as trustee (the “Trustee”).

          Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of (i) Holders of the Company’s 4.750% Senior
Notes due 2009 (the “2009 Initial Securities”) and, if and when issued in
exchange for 2009 Initial Securities as provided in the Registration Rights
Agreement (as hereinafter defined), the Company’s Series B 4.750% Senior Notes
due 2009 (the “2009 Exchange Securities”) and if and when issued pursuant to a
private exchange for 2009 Initial Securities, the Company’s Series C 4.750%
Senior Notes due 2009 (the “2009 Private Exchange Securities” and, together
with the 2009 Initial Securities, the 2009 Exchange Securities and any 2009
Additional Securities (as defined herein) actually issued, the “2009
Securities”) and (ii) Holders of the Company’s 5.625% Senior Notes due 2014
(the “2014 Initial Securities”) and, if and when issued in exchange for 2014
Initial Securities as provided in the Registration Rights Agreement, the
Company’s Series B 5.625% Senior Notes due 2014 (the “2014 Exchange
Securities”) and, if and when issued pursuant to a private exchange for 2014
Initial Securities, the Company’s Series C 5.625% Senior Notes due 2014 (the
“2014 Private Exchange Securities” and, together with the 2014 Initial
Securities, the 2014 Exchange Securities and any 2014 Additional Securities (as
defined herein) actually issued, the “2014 Securities”):

ARTICLE I

Definitions and Incorporation by Reference

          SECTION 1.1 Definitions

          “2009 Additional Securities” means any 2009 Securities (other than the
2009 Initial Securities, the 2009 Exchange Securities and the 2009 Private
Exchange Securities) issued from time to time under this Indenture.

          “2009 Exchange Securities” has the meaning ascribed to it in the
introductory paragraph of this Indenture.

          “2009 Initial Securities” has the meaning ascribed to it in the
introductory paragraph of this Indenture.

          “2009 Private Exchange Securities” has the meaning ascribed to it in the
introductory paragraph of this Indenture.

          “2009 Securities” has the meaning ascribed to it in the introductory
paragraph of this Indenture.

          “2014 Additional Securities” means any 2014 Securities (other than the
2014 Initial Securities, the 2014 Exchange Securities and the 2014 Private
Exchange Securities) issued from time to time under this Indenture.

 

 

          “2014 Exchange Securities” has the meaning ascribed to it in the
introductory paragraph of this Indenture.

          “2014 Initial Securities” has the meaning ascribed to it in the
introductory paragraph of this Indenture.

          “2014 Private Exchange Securities” has the meaning ascribed to it in the
introductory paragraph of this Indenture.

          “2014 Securities” has the meaning ascribed to it in the introductory
paragraph of this Indenture.

          “Additional Interest” shall have the meaning assigned to such term in the
Registration Rights Agreement.

          “Additional Securities” means, collectively, the 2009 Additional
Securities and the 2014 Additional Securities.

          “Board of Directors” means, with respect to any Person, the Board of
Directors of such Person or any committee thereof duly authorized to act on
behalf of such Board of Directors.

          “Business Day” means a day which is not, in New York City, a Saturday,
Sunday, legal holiday or other day on which banking institutions are authorized
or obligated by law to close.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Company” has the meaning ascribed to it in the introductory paragraph of
this Indenture.

          “Consolidated Net Assets” means as of any particular time the aggregate
amount of assets at the end of the most recently completed fiscal quarter after
deducting therefrom all current liabilities except for (a) notes and loans
payable, (b) current maturities of long-term debt and (c) current maturities of
obligations under capital leases, all as set forth on the most recent quarter
end (which may be year end) consolidated balance sheet of the Company and its
consolidated Subsidiaries and computed in accordance with GAAP.

          “Corporate Trust Office” of the Trustee shall be at the address of the
Trustee specified in Section 10.02 of this Indenture or such other address as
to which the Trustee gives notice to the Company.

          “Default” means any event which is, or after notice or passage of time or
both would be, an Event of Default.

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

2

 

          “Exchange Securities” means, collectively, the 2009 Exchange Securities
and the 2014 Exchange Securities.

          “GAAP” means generally accepted accounting principles in the United States
of America as in effect as of the Issue Date.

          “Holder” or “Securityholder” means the Person in whose name a Security is
registered on the Registrar’s books.

          “Indenture” means this Indenture, as amended or supplemented from time to
time.

          “Initial Purchasers” means Banc of America Securities LLC, Citigroup
Global Markets Inc., J.P. Morgan Securities Inc., Barclays Capital Inc., BNP
Paribas Securities Corp., KeyBanc Capital Markets, Mitsubishi Securities
International plc, Wachovia Capital Markets, LLC, ABN AMRO Incorporated and
Scotia Capital (USA) Inc.

          “Initial Securities” means, collectively, the 2009 Initial Securities and
the 2014 Initial Securities.

          “Issue Date” means the date on which the Initial Securities are originally
issued.

          “Nonrecourse Obligation” means indebtedness or other obligations
substantially related to (i) the acquisition of assets not previously owned by
the Company or any Restricted Subsidiary or (ii) the financing of a project
involving the development or expansion of properties of the Company or any
Restricted Subsidiary, as to which the obligee with respect to such
indebtedness or obligation has no recourse to the Company or any Restricted
Subsidiary or any assets of the Company or any Restricted Subsidiary other than
the assets which were acquired with the proceeds of such transaction or the
project financed with the proceeds of such transaction (and the proceeds
thereof).

          “Officer” means the Chairman of the Board, the President, the Chief
Financial Officer, any Vice President, the Treasurer, any assistant Treasurer,
the Controller, any assistant Controller, the Secretary or any Assistant
Secretary of the Company, as applicable.

          “Officers’ Certificate” means a certificate signed by any two Officers and
delivered to the Trustee. Each such certificate shall comply with TIA § 314,
to the extent any provision thereof is applicable, and include the statements
provided for in Section 10.5.

          “Opinion of Counsel” means a written opinion from Sullivan & Cromwell LLP
or any other legal counsel to the Company. The counsel may be an employee of
or counsel to the Company. Each such opinion shall comply with TIA § 314, to
the extent any provision thereof is applicable, and include the statements
provided for in Section 10.5.

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

3

 

          “Principal” of a Security means the principal of the Security plus the
premium, if any, payable on the Security which is due or overdue or is to
become due at the relevant time; provided, however, that for purposes of
calculating any such premium, the term “principal” shall not include the
premium with respect to which such calculation is being made.

          “Principal Property” shall mean the land, land improvements, buildings and
fixtures (to the extent they constitute real property interests) (including any
leasehold interest therein) constituting the principal corporate office, any
manufacturing plant or any manufacturing facility (whether now owned or
hereafter acquired) which: (a) is owned by the Company or any Subsidiary; (b)
is located within any of the present 50 States of the United States of America
(or the District of Columbia); (c) has not been determined in good faith by the
Board of Directors of the Company not to be materially important to the total
business conducted by the Company and its Subsidiaries taken as a whole; and
(d) has a book value on the date as of which the determination is being made in
excess of 0.75% of Consolidated Net Assets of the Company as most recently
determined on or prior to such date (including for purposes of such calculation
the land, land improvements, buildings and such fixtures comprising such
office, plant or facility, as the case may be).

          “Private Exchange Securities” means, collectively, the 2009 Private
Exchange Securities and the 2014 Private Exchange Securities.

          “Registration Rights Agreement” means the Registration Rights Agreement
dated as of November 18, 2004, between the Company and the Initial Purchasers.

          “Restricted Subsidiary” shall mean any Subsidiary which owns any Principal
Property; provided, however, that the term “Restricted Subsidiary” shall not
include (a) any Subsidiary which is principally engaged in leasing or in
financing receivables, or which is principally engaged in financing the
Company’s operations outside the United States of America; or (b) any
Subsidiary less than 80% of the voting stock of which is owned, directly or
indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries if the common stock of such
Subsidiary is traded on any national securities exchange or quoted on the
Nasdaq National Market or in the over-the-counter market. For purposes of this
definition, “voting stock” has the meaning specified in the definition of
“Subsidiary”, below.

          “SEC” means the U.S. Securities and Exchange Commission, or any successor
agency.

          “Securities” means the Initial Securities, the Additional Securities, the
Exchange Securities and the Private Exchange Securities issued or to be issued
under this Indenture.

          “Stated Maturity” means, with respect to any security, the date specified
in such security as the fixed date on which the payment of principal of such
security is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such
security at the option of the holder thereof upon the happening of any
contingency beyond the control of the Company unless such contingency has
occurred).

4

 

          “Subsidiary” means a Person (other than an individual), a majority of the
outstanding voting stock, partnership interests, membership interests or other
equity interest, as the case may be, of which is owned or controlled, directly
or indirectly, by the Company or by one or more other Subsidiaries of the
Company. For the purposes of this definition, “voting stock” means stock
having voting power for the election of directors, trustees or managers, as the
case may be, whether at all times or only so long as no senior class of stock
has such voting power by reason of any contingency.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as
in effect on the date of this Indenture; provided, however, that, in the event
the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the
extent required by any such amendments, the Trust Indenture Act of 1939 as so
amended.

          “Trustee” means the party named as such in this Indenture until a
successor replaces it and, thereafter, means such successor.

          “Trust Officer” means, when used with respect to the Trustee, any officer
in the corporate trust department of the Trustee including any Senior Trust
Officer, vice president, assistant vice president, assistant secretary,
treasurer, assistant treasurer, or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such officer’s knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of the Indenture.

          “Uniform Commercial Code” means the New York Uniform Commercial Code as in
effect from time to time.

          “U.S. Government Obligations” means direct obligations (or certificates
representing an ownership interest in such obligations) of the United States of
America (including any agency or instrumentality thereof) for the payment of
which the full faith and credit of the United States of America is pledged and
which are not callable or redeemable at the issuer’s option.

          SECTION 1.2 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section

	“Additional Interest Notice”
	 	 	4.9	 
	“Affiliate”
	 	 	10.6	 
	“Appendix”
	 	 	2.1	 
	“Attributable Debt”
	 	 	4.3	(b)
	“Authenticating Agent”
	 	 	2.2	 
	“Bankruptcy Law”
	 	 	6.1	 
	“covenant defeasance option”
	 	 	8.1	(b)
	“Custodian”
	 	 	6.1	 
	“Debt”
	 	 	4.2	 

5

 

	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section

	“Event of Default”
	 	 	6.1	 
	“Exempted Secured Debt”
	 	 	4.2	(b)
	“Indebtedness”
	 	 	6.1	 
	“legal defeasance option”
	 	 	8.1	(b)
	“Paying Agent”
	 	 	2.3	 
	“Registrar”
	 	 	2.3	 
	“Sale and Lease-Back”
	 	 	4.3	(a)
	“Successor”
	 	 	5.1	 

          SECTION 1.3 Incorporation by Reference of Trust Indenture Act. This
Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company and any
other obligor on the indenture securities.

     All other TIA terms used in this Indenture that are defined by the TIA,
defined by the TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions.

          SECTION 1.4 Rules of Construction. Unless the context otherwise requires:

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

     (2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;

     (3) “or” is not exclusive;

     (4) “including” means including without limitation;

     (5) words in the singular include the plural and words in the plural
include the singular;

     (6) all references to the date the Securities were originally issued
shall refer to the date the Initial Securities were originally issued.

6

 

          SECTION 1.5 One Class of Securities. (a) The 2009 Initial Securities,
the 2009 Additional Securities, the 2009 Private Exchange Securities and the
2009 Exchange Securities shall vote and consent together on all matters as one
class and none of the 2009 Initial Securities, the 2009 Additional Securities,
the 2009 Private Exchange Securities or the 2009 Exchange Securities shall have
the right to vote or consent as a separate class on any matter. The 2009
Initial Securities, the 2009 Additional Securities, the 2009 Private Exchange
Securities and the 2009 Exchange Securities shall together be deemed to
constitute a single, separate series under this Indenture.

          (a) The 2014 Initial Securities, the 2014 Additional Securities, the 2014
Private Exchange Securities and the 2014 Exchange Securities shall vote and
consent together on all matters as one class and none of the 2014 Initial
Securities, the 2014 Additional Securities, the 2014 Private Exchange
Securities or the 2014 Exchange Securities shall have the right to vote or
consent as a separate class on any matter. The 2014 Initial Securities, the
2014 Additional Securities, the 2014 Private Exchange Securities and the 2014
Exchange Securities shall together be deemed to constitute a single, separate
series under this Indenture.

ARTICLE II

The Securities

          SECTION 2.1 Form and Dating. Certain provisions relating to the Initial
Securities, the Additional Securities, the Private Exchange Securities and the
Exchange Securities, including provisions relating to the issuance,
authentication, transfer, exchange, surrender, payment and redemption thereof,
are set forth in the Rule 144A/Regulation S Appendix attached hereto (the
“Appendix”), which is hereby incorporated in and expressly made a part of this
Indenture, and in the forms of securities attached as Exhibit 1 to the Appendix
and as Exhibit A hereto. The Initial Securities, the Additional Securities and
the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit 1 to the Appendix, which is hereby incorporated in and expressly
made a part of this Indenture. The Exchange Securities, the Private Exchange
Securities and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A, which is hereby incorporated by
reference and expressly made a part of this Indenture. The Securities may have
notations, legends or endorsements required by law, rule of any securities
exchange or over-the-counter market on which such Securities are then listed or
quoted, or usage, which shall be provided by the Company in writing in addition
to those set forth on the Appendix and Exhibit A. The Company and the Trustee
shall approve the forms of the Securities and any notation, endorsement or
legend on them in writing and the Company shall deliver to the Trustee in
writing the form of such notation, endorsement or legend. Each Security shall
be dated the date of its authentication. The terms of the Securities set forth
in the Appendix and Exhibit A are part of the terms of this Indenture and, to
the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to be bound by such terms.

          SECTION 2.2 Execution and Authentication. Two Officers shall sign the
Securities for the Company by manual or facsimile signature and may be
imprinted or otherwise reproduced.

7

 

          If an Officer whose signature is on a Security no longer holds that office
at the time the Trustee authenticates the Security, the Security shall be valid
nevertheless.

          A Security shall not be valid until an authorized signatory of the Trustee
manually authenticates the Security. The signature of the Trustee on a
Security shall be conclusive evidence that such Security has been duly and
validly authenticated and issued under this Indenture.

          The Trustee shall authenticate and deliver Securities for original issue
from time to time in accordance with the procedures set forth in the Appendix.

          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably
acceptable to the Company to authenticate the Securities. Unless limited by
the terms of such appointment, any such Authenticating Agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such Authenticating
Agent.

          SECTION 2.3 Registrar and Paying Agent. The Company shall maintain an
office or agency where Securities may be presented for registration of transfer
or for exchange (the “Registrar”) and an office or agency where Securities may
be presented for payment (the “Paying Agent”). The Registrar shall keep a
register of the Securities and of their transfer and exchange. The Company may
have one or more additional paying agents. The term “Paying Agent” includes
any such additional paying agent.

          In the event the Company shall retain any Person not a party to this
Indenture as an agent hereunder, the Company shall enter into an appropriate
agency agreement with any Registrar or Paying Agent not a party to this
Indenture, which shall incorporate the terms of the TIA. The agreement shall
implement the provisions of this Indenture that relate to such agent. The
Company shall notify the Trustee in writing of the name and address of each
such agent. If the Company fails to maintain a Registrar or Paying Agent, the
Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 7.7. The Company shall be responsible for the
fees and compensations of all agents appointed or approved by it. The Company
or any of its domestically incorporated wholly owned Subsidiaries may act as
Paying Agent.

          The Company initially appoints the Trustee at the Corporate Trust Office
as Registrar and Paying Agent for the Securities.

          SECTION 2.4 Paying Agent To Hold Money in Trust. By no later than noon (New York City time) on the date on which any
Principal or interest (including any Additional Interest) on any Security is
due and payable, the Company shall deposit with the Paying Agent a sum
sufficient to pay such Principal or interest (including any Additional
Interest) when due. The Company shall require each Paying Agent (other than
the Trustee) to agree in writing that such Paying Agent shall hold in trust for
the benefit of Securityholders or the Trustee all money held by such Paying
Agent for the payment of Principal of or interest (including any Additional
Interest) on the Securities and shall notify the Trustee of any default by the
Company in making any such payment. If the Company or a Subsidiary acts as
Paying Agent, it shall segregate the

8

 

money held by it as Paying Agent and hold
it as a separate trust fund. The Company at any time may require a Paying
Agent (other than the Trustee) to pay all money held by it to the Trustee and
to account for any funds disbursed by such Paying Agent. Upon complying with
this Section, the Paying Agent (if other than the Company or a Subsidiary)
shall have no further liability for the money delivered to the Trustee. Upon
any bankruptcy, reorganization or similar proceeding with respect to the
Company, the Trustee shall serve as Paying Agent for the Securities.

          SECTION 2.5 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 Securityholders. If the Trustee is not the
Registrar, the Company shall cause the Registrar to furnish to the Trustee, in
writing at least five Business Days before each interest payment date 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 Securityholders.

          SECTION 2.6 Business Days. If a payment date is on a date that is not a
Business Day, payment shall be made on the next succeeding day that is a
Business Day, and no interest shall accrue on such payment for the intervening
period. If a regular record date is on a day that is not a Business Day, the
record date shall not be affected.

          SECTION 2.7 Replacement Securities. If a mutilated Security is
surrendered to the Registrar or if the Holder of a Security shall provide the
Company and the Trustee with evidence to their satisfaction that the Security
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies
any other reasonable requirements of the Trustee. In addition, such Holder
shall furnish an indemnity bond sufficient in the judgment of the Company and
the Trustee to protect the Company, the Trustee, the Paying Agent and the
Registrar from any loss which any of them may suffer if a Security is replaced.
The Company and the Trustee may charge the Holder for their expenses in
replacing a Security, including reasonable fees and expenses of counsel. Every
replacement Security is an additional obligation of the Company.

          SECTION 2.8 Outstanding Securities. Securities outstanding at any time are all Securities authenticated by
the Trustee except for those canceled, those delivered for cancellation and
those described in this Section 2.8 as not outstanding. A Security does not
cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.

          If a Security is replaced pursuant to Section 2.7, it ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to
them that the replaced Security is held by a bona fide purchaser.

          If the Paying Agent segregates and holds in trust, in accordance with this
Indenture, on a redemption date or maturity date money sufficient to pay all
Principal and interest payable on that date with respect to the Securities (or
portions thereof) to be redeemed or maturing, as the case may be, then on and
after that date such Securities (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.

9

 

          SECTION 2.9 Temporary Securities. Until definitive Securities are ready
for delivery, the Company may prepare and the Trustee shall authenticate
temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate definitive Securities. After
the preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency maintained by the Company for that purpose
and such exchange shall be without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall
execute, and the Trustee shall authenticate and deliver in exchange therefor,
one or more definitive Securities representing an equal principal amount of
Securities. Until so exchanged, the Holder of temporary Securities shall in
all respects be entitled to the same benefits under this Indenture as a Holder
of definitive Securities.

          SECTION 2.10 Cancellation. The Company at any time may deliver Securities
to the Trustee for cancellation. The Registrar and the Paying Agent shall
forward to the Trustee for cancellation any Securities surrendered to them for
registration of transfer or exchange or payment. The Trustee and no one else
shall cancel and destroy (subject to the record retention requirements of the
Exchange Act) all Securities surrendered for registration of transfer or
exchange, payment or cancellation and deliver a certificate of such destruction
to the Company. The Company may not issue new Securities to replace Securities
it has redeemed, paid or delivered to the Trustee for cancellation, which shall
not prohibit the Company from issuing Exchange Securities or Private Exchange
Securities in exchange for Initial Securities and any Additional Securities.

          SECTION 2.11 Defaulted Interest. If the Company defaults in a payment of interest on the Securities, the
Company shall pay defaulted interest plus interest on such defaulted interest
to the extent lawful at the rate specified therefor in the Securities in any
lawful manner. The Company may pay the defaulted interest to the Persons who
are Securityholders on a subsequent special record date. The Company shall fix
or cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee which specified record date shall not be
less than 10 days prior to the payment date for such defaulted interest and
shall promptly mail or cause to be mailed to each Securityholder a notice that
states the special record date, the payment date and the amount of defaulted
interest to be paid. The Company shall notify the Trustee in writing of the
amount of defaulted interest proposed to be paid on each Security and the date
of the proposed payment, 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 prior to the date of the proposed
payment, such money when so deposited to be held in trust for the benefit of
the Person entitled to such defaulted interest as provided in this Section
2.11.

          SECTION 2.12 CUSIP Numbers. The Company in issuing the Securities 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,
however, that any such notice may state that no representation is made as to
the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be

10

 

placed only on
the other identification numbers printed on the Securities, 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.

ARTICLE III

Redemption

          SECTION 3.1 Notices to Trustee. If the Company elects to redeem
Securities pursuant to Section 5 of the Securities, it shall notify the Trustee
in writing of the redemption date and the principal amount of Securities to be
redeemed.

          The Company shall give each notice to the Trustee provided for in this
Section at least 60 days (45 days in the case of redemption of all the
Securities of any series) before the redemption date unless the Trustee
consents to a shorter period. Such notice shall be accompanied by an Officers’
Certificate from the Company to the effect that such redemption will comply
with the conditions herein. The record date relating to such redemption shall
be selected by the Company and set forth in the related notice given to the
Trustee, which record date shall be not less than 15 days prior to the date
selected for redemption by the Company.

          SECTION 3.2 Selection of Securities To Be Redeemed. If fewer than all the Securities of any series then outstanding are to
be redeemed, the Trustee shall select the Securities of such series to be
redeemed by a method that complies with applicable legal and securities
exchange requirements, if any, and that the Trustee considers to be fair and
appropriate in accordance with methods generally used at the time of selection
by fiduciaries in similar circumstances. The Trustee shall make the selection
from outstanding Securities of such series not previously called for
redemption. The Trustee may select for redemption portions of the principal of
Securities that have denominations larger than U.S.$1,000. Securities and
portions of them that the Trustee selects shall be in amounts of U.S.$1,000 or
a whole multiple of U.S.$1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called
for redemption. The Trustee shall notify the Company of the Securities or
portions of Securities to be redeemed. Notwithstanding the other provisions of
this Article III, in the case of any Securities which are in book-entry form,
the requirements and procedures of the related depositary (including without
limitation the notice requirements and the selection process in the case of a
partial redemption) shall apply.

          SECTION 3.3 Notice of Redemption. At least 30 days but not more than 60
days before a date for redemption of Securities, notice of redemption shall be
mailed by first-class mail to each Holder of Securities to be redeemed.

          The notice shall identify the Securities to be redeemed and shall state:

     (1) the redemption date;

     (2) the redemption price (or the method of calculating such price)
and the amount of accrued interest to be paid, if any;

     (3) the name and address of the Paying Agent;

11

 

     (4) that Securities called for redemption must be surrendered to the
Paying Agent to collect the redemption price plus accrued and unpaid
interest, if any;

     (5) if fewer than all the outstanding Securities of any series are
to be redeemed, the Bond No. (if certificated) and principal amounts of
the particular Securities to be redeemed;

     (6) that, unless the Company defaults in making such redemption
payment, interest on Securities (or portion thereof) called for
redemption ceases to accrue on and after the redemption date;

     (7) the CUSIP number, if any, printed on the Securities being
redeemed; and

     (8) that no representation is made as to the correctness or accuracy
of the CUSIP number, if any, listed in such notice or printed on the
Securities.

     At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at the Company’s expense. In such event, the Company
shall provide the Trustee with the information required by this Section 3.3.

     SECTION 3.4 Effect of Notice of Redemption. Once notice of redemption is
mailed in accordance with Section 3.3, Securities called for redemption shall
become due and payable on the redemption date and at the redemption price as
stated in the notice. Upon surrender to the Paying Agent on or after the
redemption date, such Securities shall be paid at the redemption price stated
in the notice, plus accrued and unpaid interest to the redemption date;
provided that the Company shall have deposited the redemption price with the
Paying Agent or the Trustee on or before noon (New York City time) on the date
of redemption; provided, further, that if the redemption date is after a
regular record date and on or prior to the interest payment date, the accrued
and unpaid interest shall be payable to the Securityholder of the redeemed
Securities registered on the relevant record date. Failure to give notice or
any defect in the notice to any Holder shall not affect the validity of the
notice to any other Holder.

     SECTION 3.5 Deposit of Redemption Price. By no later than noon (New York
City time) on the date of redemption, the Company shall deposit with the Paying
Agent (or, if the Company or a Subsidiary is the Paying Agent, shall segregate
and hold in trust) money sufficient to pay the redemption price of and accrued
and unpaid interest on all Securities to be redeemed on that date other than
Securities or portions of Securities called for redemption which are owned by
the Company or a Subsidiary and have been delivered by the Company or such
Subsidiary to the Trustee for cancellation.

     Unless the Company defaults in the payment of such redemption price,
interest on the Securities to be redeemed will cease to accrue on and after the
applicable redemption date, whether or not such Securities are presented for
payment.

     SECTION 3.6 Securities Redeemed in Part. Upon surrender of a Security
that is redeemed in part, the Company shall execute and the Trustee shall
authenticate for the Holder thereof (at the Company’s expense) a new Security
of the same series, equal in a principal amount to the unredeemed portion of
the Security surrendered.

12

 

ARTICLE IV

Covenants

          SECTION 4.1 Payment of Securities. The Company shall promptly pay the Principal of and interest (including
Additional Interest) on the Securities on the dates and in the manner provided
in the Securities and in this Indenture. Principal and interest (including
Additional Interest) shall be considered paid on the date due if, on or before
noon (New York City time) on such date, the Trustee or the Paying Agent (or, if
the Company or a Subsidiary is the Paying Agent, the segregated account or
separate trust fund maintained by the Company or such Subsidiary pursuant to
Section 2.4) holds in accordance with this Indenture money sufficient to pay
all Principal and interest (including Additional Interest) then due. If any
Additional Interest is due, the Company shall deliver an Officers’ Certificate
to the Trustee setting forth the Additional Interest per U.S.$1,000 aggregate
principal amount of Securities.

          The Company shall pay interest on overdue principal at the rate specified
therefor in the Securities, and it shall pay interest on overdue installments
of interest at the same rate to the extent lawful as provided in Section 2.11.

          Notwithstanding anything to the contrary contained in this Indenture, the
Company or the Paying Agent may, to the extent it is required to do so by law,
deduct or withhold income or other similar taxes imposed by the United States
of America or other domestic or foreign taxing authorities from Principal or
interest payments hereunder.

          SECTION 4.2 Limitations on Liens. (a) So long as any Securities remain
outstanding, the Company will not, nor will it permit any Restricted Subsidiary
to, issue, incur, create, assume or guarantee any debt for borrowed money
(hereinafter in this Article IV referred to as “Debt”) secured by a mortgage,
security interest, pledge, lien, charge or other encumbrance (mortgages,
security interests, pledges, liens, charges and other encumbrances being
hereinafter in this Article IV referred to as “mortgage” or “mortgages”) upon
any Principal Property of the Company or any Restricted Subsidiary or upon any
shares of stock or Debt of any Restricted Subsidiary (whether such Principal
Property, shares of stock or Debt are now existing or owed or hereafter created
or acquired) without in any such case effectively providing, concurrently with
the issuance, incurrence, creation, assumption or guaranty of any such secured
Debt, or the grant of a mortgage with respect to any such Debt to be so
secured, that the Securities (together with, if the Company shall so determine,
any other indebtedness of or guarantee by the Company or such Restricted
Subsidiary ranking equally with the Securities) shall be secured equally and
ratably with (or, at the Company’s option, prior to) such Debt to be so
secured; provided, however, that the foregoing restrictions shall not apply to:

          (1) mortgages on property, shares of stock or indebtedness or other
assets of any corporation existing at the time such corporation becomes a
Restricted Subsidiary, provided that such mortgages or liens are not
incurred in anticipation of such corporation becoming a Restricted
Subsidiary;

          (2) mortgages on property, shares of stock or indebtedness existing
at the time of acquisition thereof by the Company or a Restricted
Subsidiary (which may

13

 

include property previously leased by the Company
and leasehold interests thereon; provided that the lease terminates prior
to or upon the acquisition) or mortgages thereon
to secure the payment of all or any part of the purchase price
thereof, or mortgages on property, shares of stock or indebtedness to
secure any Debt incurred prior to, at the time of, or within 270 days
after, the latest of the acquisition thereof, or, in the case of
property, the completion of construction, the completion of improvements
or the commencement of substantial commercial operation of such property
for the purpose of financing all or any part of the purchase price
thereof, such construction or the making of such improvements;

          (3) mortgages securing Debt owing to the Company or to a Restricted
Subsidiary;

          (4) mortgages existing on the Issue Date;

          (5) mortgages on property or other assets of a corporation existing
at the time such corporation is merged into or consolidated with the
Company or a Restricted Subsidiary or at the time of a sale, lease or
other disposition of the properties of a corporation as an entirety or
substantially as an entirety to the Company or a Restricted Subsidiary,
provided that such mortgage was not incurred in anticipation of such
merger or consolidation or sale, lease or other disposition;

          (6) mortgages in favor of the United States of America or any State,
territory or possession thereof (or the District of Columbia), or any
department, agency, instrumentality or political subdivision of the
United States of America or any State, territory or possession thereof
(or the District of Columbia), to secure partial, progress, advance or
other payments pursuant to any contract or statute or to secure any Debt
incurred for the purpose of financing all or any part of the purchase
price or the cost of construction or improvement of the property subject
to such mortgages;

          (7) mortgages created in connection with a project financed with,
and created to secure, a Nonrecourse Obligation;

          (8) mortgages securing all of the Securities; or

          (9) any extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any mortgage referred
to in the foregoing clauses (1) to (8), inclusive, without increase of
the principal of the Debt secured thereby; provided, however, that such
extension, renewal or replacement shall be limited to all or a part of
the property which secured the mortgage extended, renewed or replaced
(plus improvements on such property).

          (b) Notwithstanding the foregoing provisions of this Section 4.2, the
Company and any Restricted Subsidiary may (without equally and ratably securing
the Securities) issue, incur, create, assume or guarantee Debt secured by
mortgages which would otherwise be subject to the foregoing restrictions
(“Exempted Secured Debt”), in an aggregate amount which, together with all
other outstanding Debt of the Company and its Restricted Subsidiaries secured
by mortgages which (if originally issued, incurred, created, assumed or
guaranteed at such time)

14

 

would otherwise be subject to the foregoing
restrictions (not including such Debt which is permitted to be secured under any of clauses (1) through (9) above), does
not at the time exceed 10% of Consolidated Net Assets of the Company.

          SECTION 4.3 Limitation on Sale and Lease-Back Transactions. (a) So long
as any Securities remain outstanding the Company will not, nor will it permit
any Restricted Subsidiary to, enter into any direct or indirect arrangement
with any person that provides for the leasing to the Company or any Restricted
Subsidiary of any Principal Property (except for such transactions (i) entered
into prior to the Issue Date; (ii) between the Company and a Restricted
Subsidiary or between Restricted Subsidiaries; (iii) under which the rent
payable pursuant to such lease is to be reimbursed under a contract with the
United States Government or any instrumentality or agency thereof; (iv)
involving leases for no longer than three years; or (v) in which the lease for
the property or asset is entered into within 270 days after the later of the
date of acquisition, completion of construction or commencement of full
operations of such property or asset), which Principal Property has been or is
to be sold or transferred by the Company or such Restricted Subsidiary to such
person (subject to such exceptions in the preceding clauses (i) through (v),
such arrangement being referred to as a “Sale and Lease-Back”), unless:

          (1) the Company or such Restricted Subsidiary would be entitled,
pursuant to the provisions of Section 4.2, to issue, incur, create,
assume or guarantee Debt secured by a mortgage upon such property at
least equal in amount to the Attributable Debt in respect of such Sale
and Lease-Back without equally and ratably securing the Securities; or

          (2) the proceeds of the sale of the Principal Property to be leased
are at least equal to their fair market value and such proceeds are
applied within 180 days of the effective date of such Sale and Lease-Back
to the purchase, construction, development or acquisition of assets or to
the repayment of indebtedness of the Company.

          (b) For the purposes of this Section 4.3, the term “Attributable Debt”
with respect to a Sale and Lease-Back involving a Principal Property means, at
the time of determination, the lesser of:

          (1) the fair value of the property which is the subject of such Sale
and Lease-Back (as determined in good faith by the Board of Directors of
the Company); or

          (2) the present value of the total net amount of rent required to be
paid under such Sale and Lease-Back during the remaining term thereof
(including any renewal term or period for which such lease has been
extended), discounted at the rate of interest set forth or implicit in
the terms of such Sale and Lease-Back or, if not practicable to determine
such rate, the weighted average interest rate per annum borne by the
Securities of each series outstanding pursuant to this Indenture
compounded semi-annually in either case as determined by the principal
accounting or financial officer of the Company.

For purposes of this definition, rent shall not include amounts required to be
paid by the lessee, whether or not designated as rent or additional rent, on
account of or contingent upon

15

 

maintenance and repairs, insurance, taxes, assessments, water rates and similar
charges. In the case of any lease which is terminable by the lessee upon the
payment of a penalty, such net amount shall be the lesser of (i) the net amount
determined assuming termination upon the first date such lease may be
terminated (in which case the net amount shall also include the amount of the
penalty, but no rent shall be considered as required to be paid under such
lease subsequent to the first date upon which it may be so terminated) or (ii)
the net amount determined assuming no such termination.

          SECTION 4.4 Compliance Certificate. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company an
Officers’ Certificate signed by the principal executive officer, the principal
financial officer or the principal accounting officer stating that in the
course of the performance by the signers of their duties as Officers of the
Company they would normally have knowledge of any Default or Event of Default
and whether or not the signers know of any Default or Event of Default that
occurred during such period. If they do, the certificate shall describe the
Default or Event of Default, its status and what action the Company is taking
or proposes to take with respect thereto. The Company also shall comply with
TIA § 314(a)(4).

          SECTION 4.5 Further Instruments and Acts. Upon reasonable request of the
Trustee, the Company will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

          SECTION 4.6 Maintenance of Office or Agency. The Company shall maintain
the office or agency required under Section 2.3. The Company shall give prior
written notice to the Trustee of the location, and any change in the location,
of such office or agency. 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 10.2.

          SECTION 4.7 Corporate Existence. Except as otherwise permitted by Article
V, the Company shall do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence.

          SECTION 4.8 SEC Reports. The Company will comply with all the applicable
provisions of TIA § 314(a).

          SECTION 4.9 Additional Interest Notice. In the event that the Company is required to pay Additional Interest to
any Holder pursuant to the Registration Rights Agreement, the Company will
provide notice to the Trustee of its obligation to pay Additional Interest as
soon as practicable prior to the proposed payment date for the Additional
Interest.

ARTICLE V

Successor Company

          SECTION 5.1 When the Company May Merge or Transfer Assets. The Company
will not consolidate with or sell, lease or convey its assets as, or
substantially as, an

16

 

entirety, to, or merge with or into, in one transaction or
a series of related transactions, any other Person, unless:

     (i) the Company shall be the continuing entity, or the resulting,
surviving or transferee Person (the “Successor”) shall be a Person
organized and existing under the laws of the United States of America,
any State thereof or the District of Columbia and the Successor (if not
the Company) shall expressly assume, by supplemental indenture, executed
and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of the Company under the Securities and this Indenture;

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

     (iii) the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if
any) comply with this Indenture and that such supplemental indenture
constitutes the legal valid and binding obligation of the Company subject
to customary exceptions.

          Upon any consolidation or merger, or any sale or lease of the assets of
the Company as, or substantially as, an entirety in accordance with the
provisions of this Indenture, the entity formed by such consolidation or into
which the Company shall have been merged or to which such sale or lease shall
have been made shall succeed to and be substituted for the Company with the
same effect as if it had been named in the Indenture as a party thereto and
thereafter from time to time such successor entity may exercise each and every
right and power of the Company under the Indenture in the name of the Company
or in its own name; and any act or proceeding by any provision of the Indenture
required or permitted to be done by the Board of Directors or any Officer of
the Company may be done with like force and effect by the like board (or other
governing body) or officer (or comparable authorized person) of any entity that
shall at the time be the successor of the Company hereunder. In the event of
the sale by the Company of its assets as, or substantially as, an entirety upon
the terms and conditions of the Indenture, the Company shall be released from
all its liabilities and obligations under the Indenture and the Securities, but
the predecessor Company in the case of a lease of all its assets or
substantially all its assets will not be released from the obligation to pay
the Principal of and interest on the Securities.

ARTICLE VI

Defaults and Remedies

          SECTION 6.1 Events of Default. An “Event of Default” occurs with respect
to any series of Securities if:

     (1) the Company defaults in any payment of interest on any Security
of such series when the same becomes due and payable, and such default
continues for a period of 30 days or more;

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     (2) the Company defaults in the payment of the principal of any
Security of such series when the same becomes due and payable at its
Stated Maturity, upon optional redemption, upon declaration or otherwise;

     (3) the Company fails to comply with any of its agreements in the
Securities of such series or this Indenture as it relates to such series
(other than those referred to in (1) or (2) above) and such failure
continues for 90 days or more after the notice specified below;

     (4) the Company fails to make any payment at maturity, including any
applicable grace period, in respect of obligations (other than the
Securities of such series or non-recourse obligations) of the Company for
borrowed money or evidenced by bonds, debentures, notes or similar
instruments (“Indebtedness”) in an amount in excess of U.S.$50,000,000 or
the equivalent thereof in any other currency or composite currency and
such failure shall have continued for 30 days after the notice specified
below;

     (5) a default with respect to any Indebtedness, which default
results in the acceleration of Indebtedness in an amount in excess of
U.S.$50,000,000 or the equivalent thereof in any other currency or
composite currency without such Indebtedness having been discharged or
such acceleration having been cured, waived, rescinded or annulled for a
period of 30 days or more after the notice specified below;

     (6) the Company pursuant to or within the meaning of any Bankruptcy
Law:

     (A) commences a voluntary case;

     (B) consents to the entry of an order for relief against it in
an involuntary case in which it is the debtor;

     (C) consents to the appointment of a Custodian of it or for
any substantial part of its property; or

     (D) makes a general assignment for the benefit of its
creditors; or or takes any comparable action under any foreign laws relating to
insolvency; or

     (7) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that:

     (A) is for relief against the Company in an involuntary case;

     (B) appoints a Custodian of the Company or for any substantial
part of its property; or

     (C) orders the winding up or liquidation of the Company;

(or any similar relief is granted under any foreign laws) and the order,
decree or relief remains unstayed and in effect for 60 consecutive days.

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          The foregoing will constitute Events of Default whatever the reason for
any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body.

          The term “Bankruptcy Law” means Title 11, United States Code, or any
similar Federal or state law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

          If any failure, default or acceleration referred to in clauses (4) or (5)
above shall cease or be cured, waived, rescinded or annulled, then the Event of
Default hereunder by reason thereof shall be deemed likewise to have been
thereupon cured.

          A Default with respect to any series of Securities under clauses (3), (4)
or (5) of this Section 6.1 is not an Event of Default with respect to such
series until the Trustee (by notice to the Company) or the Holders of at least
25% in aggregate principal amount of the outstanding Securities of such series
(by notice to the Company and the Trustee) gives notice of the Default and the
Company does not cure such Default within the time specified in said clause
(3), (4) or (5) after receipt of such notice. Such notice must specify the
Default, demand that it be remedied and state that such notice is a “Notice of
Default”.

          The Company shall deliver to the Trustee, within 30 days after the
occurrence thereof, written notice in the form of an Officers’ Certificate of
any event which with the giving of notice or the lapse of time would become an
Event of Default under clause (3), (4) or (5) of this Section 6.1 and what
action the Company is taking or proposes to take with respect thereto.

          SECTION 6.2 Acceleration. If an Event of Default with respect to any series of Securities (other
than an Event of Default specified in Section 6.1(6) or (7)) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least
25% in aggregate principal amount of the outstanding Securities of such series
by notice to the Company and the Trustee, may declare the Principal of and
accrued but unpaid interest on all the Securities of such series to be due and
payable. Upon such a declaration, such Principal and interest shall be due and
payable immediately. If an Event of Default specified in Section 6.1(6) or (7)
occurs and is continuing, the Principal of and accrued interest on all the
Securities of such series shall ipso facto 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
outstanding Securities of such series by notice to the Trustee may rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree (other than a judgment or decree for the payment of
Principal or interest or monies due on the Securities) and if all existing
Events of Default have been cured or waived except nonpayment of Principal or
interest that has become due solely because of such acceleration and the
Trustee has been paid all amounts due to it pursuant to Section 7.7. No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

          SECTION 6.3 Other Remedies. If an Event of Default with respect to any
series of Securities occurs and is continuing, the Trustee may pursue any
available remedy to collect

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the payment of Principal of or interest on the
Securities of such series or to enforce the performance of any provision of the
Securities of such series or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of
the Securities of such series or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Securityholder 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. No remedy is exclusive of any other remedy. All available
remedies are, to the extent permitted by law, cumulative.

     SECTION 6.4 Waiver of Past Defaults. The Holders of a majority in
aggregate principal amount of the Securities of any series then outstanding by
notice to the Trustee may waive any past or existing Default with respect to
such series and its consequences except (i) a Default in the payment of the
Principal of or interest on a Security of such series or (ii) a Default in
respect of a provision that under Section 9.2 cannot be amended without the
consent of each Securityholder affected. When a Default is waived, it is
deemed cured, and any Event of Default arising therefrom shall be deemed to
have been cured, but no such waiver shall extend to any subsequent or other
Default or impair any consequent right.

     SECTION 6.5 Control by Majority. Upon provision of reasonable indemnity to the Trustee satisfactory to
the Trustee, the Holders of a majority in aggregate principal amount of the
Securities of any series then outstanding may direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee with
respect to such series or of exercising any trust or power conferred on the
Trustee with respect to such series. However, the Trustee, which may
conclusively rely on opinions of counsel, may refuse to follow any direction
that conflicts with law or this Indenture or, subject to Section 7.1, that the
Trustee determines is unduly prejudicial to the rights of other Securityholders
of such series or any other series or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed
proper by the Trustee that is not inconsistent with such direction.

     SECTION 6.6 Limitation on Suits. A Holder of Securities of any series may
not pursue any remedy with respect to this Indenture or the Securities of such
series unless:

     (i) the Holder gives to the Trustee previous written notice stating
that an Event of Default with respect to such series is continuing;

     (ii) the Holders of at least 25% in aggregate principal amount of
the Securities of such series then outstanding make a written request to
the Trustee to pursue the remedy;

     (iii) such Holder or Holders offer to the Trustee reasonable
security or indemnity against any loss, liability or expense;

     (iv) the Trustee does not comply with the request within 60 days
after receipt of the request and the offer of security or indemnity; and

20

 

     (v) the Holders of a majority in aggregate principal amount of the
Securities of such series then outstanding do not give the Trustee a
direction inconsistent with the request during such 60-day period.

     A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over another
Securityholder.

     SECTION 6.7 Rights of Holders To Receive Payment. Notwithstanding any
other provision of this Indenture, the right of any Holder to receive payment
of Principal of and interest on the Securities held by such Holder, on or after
the respective due dates expressed in the Securities, or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

     SECTION 6.8 Collection Suit by Trustee. If an Event of Default specified in Section 6.1(1) or (2) 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 then due and owing
(together with interest on any unpaid interest to the extent lawful) and the
amounts provided for in Section 7.7.

     SECTION 6.9 Trustee May File Proofs of Claim. The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee and the Securityholders allowed in
any judicial proceedings relative to the Company, its creditors or its property
and, unless prohibited by law or applicable regulations, may vote on behalf of
the Holders in any election of a trustee in bankruptcy or other Person
performing similar functions, and any Custodian in any such judicial proceeding
is hereby authorized by each Holder to make payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.7.

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

     FIRST: to the Trustee for amounts due under Section 7.7;

     SECOND: to Securityholders for amounts due and unpaid on the
Securities for Principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the
Securities for Principal and interest, respectively; and

     THIRD: to the Company.

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

21

 

omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit 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, 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 6.7 or a
suit by Holders of more than 10% in aggregate principal amount of the
outstanding Securities of any series.

     SECTION 6.12 Waiver of Stay or Extension Laws. The Company (to the extent it may lawfully do so) shall 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 wherever enacted, now or at any time
hereafter in force, 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 shall not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as
though no such law had been enacted.

ARTICLE VII

Trustee

     SECTION 7.1 Duties of Trustee. 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 their exercise as a
prudent Person would exercise or use under the circumstances in the conduct of
such Person’s own affairs.

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

     (i) the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and

     (ii) 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 Officers’ Certificates and
Opinions of Counsel furnished to the Trustee and conforming to the
requirements of this Indenture. However, in the case of any such
Officers’ Certificates and Opinions of Counsel which by any provision
hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers’ Certificates and Opinions of Counsel
to determine whether or not they conform to the requirements of this
Indenture (but the Trustee need not confirm or investigate the accuracy
of mathematical calculations or other facts stated therein).

     (c) 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:

     (i) this paragraph does not limit the effect of paragraph (b) of
this Section 7.1;

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

     (iii) 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 6.5.

     (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section.

     (e) Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law.

     (f) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder or in the exercise of any of its rights or powers,
if it shall have reasonable grounds to believe that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

     (g) Every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Trustee shall be subject to the
provisions of this Section 7.1 and to the provisions of the TIA.

     SECTION
7.2 Rights of Trustee. (a) The Trustee may conclusively rely on any
document believed by it to be genuine and to have been signed or presented by
the proper person. The Trustee need not investigate any fact or matter stated
in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
the Officers’ Certificate or Opinion of Counsel.

     (c) The Trustee may act through agents or attorneys and shall not be
responsible for the misconduct or negligence of any agent or attorney appointed
with due care.

     (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Trustee’s conduct does not constitute
willful misconduct or negligence.

     (e) The Trustee may consult with counsel of its selection, and the advice
or opinion of counsel with respect to legal matters relating to this Indenture
and the Securities shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of such counsel.

     (f) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of
the Holders pursuant to this Indenture, unless such Holders shall have offered
to the Trustee security or indemnity

23

 

reasonably satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

     (g) The Trustee shall not be charged with knowledge of any Default or
Event of Default with respect to the Securities unless either (1) a Trust
Officer shall have actual knowledge of such Default or Event of Default or (2)
written notice of such Default or Event of
Default shall have been received by a Trust Officer of the Trustee at the
Corporate Trust Office of the Trustee and such notice references the Securities
and this Indenture.

     (h) 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 unless required
to do so by the Holders of not less than a majority in principal amount of the
Securities at the time outstanding, 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 of any kind by reason of such inquiry or
investigation.

     (i) 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 each agent, custodian and other Person employed to act
hereunder.

     (j) The Trustee may request that the Company deliver a certificate setting
forth the names of individuals and/or titles of officers authorized at such
time to take specified actions pursuant to this Indenture.

     SECTION 7.3 Individual Rights of Trustee. The Trustee in its individual
or any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Company with the same rights it would have if it were
not Trustee. Any Paying Agent, Registrar or co-paying agent may do the same
with like rights. However, the Trustee must comply with Sections 7.10 and
7.11.

     SECTION 7.4 Trustee’s Disclaimer. The Trustee shall not be responsible
for and makes no representation as to the validity or adequacy of this
Indenture or the Securities or any offering document, it shall not be
accountable for the Company’s use of the proceeds from the Securities, and it
shall not be responsible for any statement of the Company in this Indenture or
in any document issued in connection with the sale of the Securities or in the
Securities other than the Trustee’s certificate of authentication.

     SECTION 7.5 Notice of Defaults. If a Default or an Event of Default
occurs with respect to any series of Securities and is continuing and if it is
known to the Trustee, the Trustee shall mail to each Securityholder of such
series notice of the Default within 90 days after it is actually known to a
Trust Officer or written notice of it is received by a Trust Officer of the
Trustee. Except in the case of a Default in payment of Principal of or
interest on any Security,

24

 

the Trustee may withhold the notice if and so long as
a committee of its Trust Officers in good faith determines that withholding the
notice is not opposed to the interests of Securityholders.

     SECTION 7.6 Reports by Trustee to Holders. If required and as promptly as
practicable after each May 15 beginning with the May 15 following the date of
this Indenture, and in any event prior to July 15 in each year, the Trustee
shall mail to each Securityholder a brief report dated as of such May 15 that
complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b).
The Trustee shall promptly deliver to the Company a copy of any report it
delivers to Holders pursuant to this Section 7.6.

     A copy of each report at the time of its mailing to Securityholders shall
be filed by the Trustee with the SEC and each stock exchange (if any) on which
the Securities are listed. The Company agrees to notify promptly the Trustee
whenever the Securities become listed on any stock exchange and of any
delisting thereof.

     SECTION 7.7 Compensation and Indemnity. The Company shall pay to the
Trustee from time to time such compensation for its services as the Company and
the Trustee shall from time to time agree in writing. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred or made by it in accordance with the
provisions of this Indenture, including costs of collection, in addition to
such compensation for its services, except any such expense, disbursement or
advance as shall have been caused by its own negligence, willful misconduct or
bad faith. Such expenses shall include the reasonable compensation and
expenses, disbursements and advances of the Trustee’s agents and counsel. The
Trustee shall provide the Company reasonable notice of any expenditure not in
the ordinary course of business; provided that prior approval by the Company of
any such expenditure shall not be a requirement for the making of such
expenditure nor for reimbursement by the Company thereof. The Company shall
indemnify each of the Trustee, its officers, directors, employees and any
predecessor Trustees against any and all loss, damage, claim, liability or
expense (including reasonable attorneys’ fees and expenses) (other than taxes
applicable to the Trustee’s compensation hereunder) incurred by it in
connection with the acceptance or administration of this trust and the
performance of its duties hereunder. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. Failure by the Trustee
so to notify the Company shall not relieve the Company of its obligations
hereunder. The Company shall defend the claim and, if (in the opinion of
counsel to the Trustee) the facts and/or issues surrounding the claim are
reasonably likely to create a conflict with the Company, the Company shall pay
the reasonable fees and expenses of separate counsel to the Trustee. The
Company need not reimburse any expense or indemnify against any loss, liability
or expense incurred by the Trustee through the Trustee’s own willful
misconduct, negligence or bad faith.

     To secure the Company’s payment obligations in this Section 7.7, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee other than money or property held in trust to pay
Principal of and interest on particular Securities.

     The Company’s payment obligations pursuant to this Section 7.7 shall
survive the resignation or removal of the Trustee and any discharge
of this
Indenture including any discharge

25

 

under any bankruptcy law. When the Trustee
incurs expenses after the occurrence of a Default specified in Section 6.1(6)
or (7) with respect to the Company, the expenses are intended to constitute
expenses of administration under the Bankruptcy Law.

     SECTION 7.8 Replacement of Trustee. The Trustee may resign at any time
with 30 days notice to the Company. The Holders of a majority in principal
amount of the Securities of any series then outstanding, may remove the Trustee
with respect to such series with 30 days notice to the Trustee and may appoint
a successor Trustee. The Company shall remove the Trustee if:

     (i) the Trustee fails to comply with Section 7.10;

     (ii) the Trustee is adjudged bankrupt or insolvent;

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

     (iv) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns, is removed by the Company or by the Holders of a
majority in principal amount of the Securities of any series and such Holders
do not reasonably promptly appoint a successor Trustee with respect to such
series, or if a vacancy exists in the office of Trustee for any reason (the
Trustee in such event being referred to herein as the retiring Trustee), the
Company shall promptly appoint a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company and the Company shall pay all
amounts due and owing to the Trustee under Section 7.7 of the Indenture.
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 Securityholders of any series affected by such
resignation or removal. 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 7.7.

     If a successor Trustee does not take office with respect to any series of
Securities within 30 days after the retiring Trustee resigns or is removed, the
retiring Trustee or the Holders of 10% in principal amount of the Securities of
such series may petition (at the expense of the Company) any court of competent
jurisdiction for the appointment of a successor Trustee.

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

     Notwithstanding the replacement of the Trustee pursuant to this Section
7.8, the Company’s obligations under Section 7.7 shall continue for the benefit
of the retiring Trustee.

     SECTION 7.9 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

26

 

to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee, provided that such corporation
shall be eligible under this Article VII and TIA Section 3.10(a).

     In case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.

     SECTION 7.10 Eligibility; Disqualification. The Trustee shall at all
times satisfy the requirements of TIA § 310(a). The Trustee shall have a
combined capital and surplus of at least U.S.$50,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply
with TIA § 310(b); provided, however, that there shall be excluded from the
operation of TIA § 310(b)(1), with respect to any series, this Indenture with
respect to any other series of Securities and any indenture or indentures under
which other securities or certificates of interest or participation in other
securities of the Company are outstanding if the requirements for such
exclusion set forth in TIA § 310(b)(1) are met.

     SECTION 7.11 Preferential Collection of Claims Against Company. The
Trustee shall comply with § TIA 311(a), excluding any creditor relationship
listed in TIA § 311(b). A Trustee who has resigned or been removed shall be
subject to TIA § 311(a) to the extent indicated.

ARTICLE VIII

Discharge of Indenture; Defeasance

     SECTION
8.1 Discharge of Liability on Securities; Defeasance. With respect to
any series of Securities, (a) when (i) the Company
delivers to the Trustee all outstanding Securities of such series (other than
Securities replaced pursuant to Section 2.7) for cancellation or (ii) all
outstanding Securities of such series have become due and payable, whether at
maturity or as a result of the mailing of a notice of redemption pursuant to
Article III hereof or the Securities of such series will become due and payable
at their Stated Maturity within one year, or the Securities of such series are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Company, and, in each case of this clause (ii), the
Company irrevocably deposits or causes to be deposited with the Trustee funds
sufficient to pay at maturity or upon redemption all outstanding Securities of
such series, including interest thereon to maturity or such redemption date
(other than Securities replaced pursuant to Section 2.7), and if in either case
the Company pays all other sums payable hereunder by the Company, then this
Indenture shall, subject to Section 8.1(c), cease to be of further effect with
respect to such series. The Trustee shall acknowledge satisfaction and
discharge of this Indenture with respect to such series

27

 

on demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel from
the Company that all conditions precedent provided herein for relating to
satisfaction and discharge of this Indenture have been complied with and at the
cost and expense of the Company.

     (b) Subject to Sections 8.1(c) and 8.2, the Company at any time may
terminate (i) all of its obligations under the Securities of any series and
this Indenture with respect to such series (“legal defeasance option”) or (ii)
its obligations under Sections 4.2 and 4.3 and the operation of Sections 6.1(3)
(other than any obligations under Article V hereof), 6.1(4) and 6.1(5) with
respect to such series (“covenant defeasance option”). The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option.

     If the Company exercises its legal defeasance option with respect to any
series of Securities, payment of the Securities of such series may not be
accelerated because of an Event of Default. If the Company exercises its
covenant defeasance option, payment of the Securities of such series may not be
accelerated because of an Event of Default specified in Section 6.1(3) (except
with respect to obligations under Article V hereof), 6.1(4) or 6.1(5).

     Upon satisfaction of the conditions set forth herein and upon request of
the Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.

     (c) Notwithstanding clauses (a) and (b) above, the Company’s obligations
in Sections 2.3, 2.4, 2.5, 2.7, 4.1, 4.6, 4.7, 7.7, 7.8, 8.4, 8.5 and 8.6 of
this Indenture and Section 2.3 of the Appendix with respect to such series
shall survive until the Securities of such series have been paid in full.
Thereafter, the Company’s and the Trustee’s obligations in Sections 7.7, 8.4
and 8.5 shall survive.

     SECTION 8.2 Conditions to Defeasance. The Company may exercise its legal
defeasance option or its covenant defeasance option with respect to any series
of Securities only if:

     (i) the Company irrevocably deposits or causes to be deposited in
trust with the Trustee money or U.S. Government Obligations which through
the scheduled payment of Principal and interest in respect thereof in
accordance with their terms will provide cash at such times and in such
amounts as will be sufficient to pay Principal and interest when due on
all outstanding Securities of such series (except Securities replaced
pursuant to Section 2.7) to maturity or redemption, as the case may be;

     (ii) the Company delivers to the Trustee a certificate from a
nationally recognized firm of independent accountants expressing their
opinion that the payments of Principal and interest when due and without
reinvestment on the deposited U.S. Government Obligations plus any
deposited money without investment will provide cash at such times and in
such amounts as will be sufficient to pay Principal and interest when due
on all outstanding Securities of such series (except Securities replaced
pursuant to Section 2.7) to maturity or redemption, as the case may be;

28

 

     (iii) 91 days pass after the deposit is made and during the 91-day
period no Default specified in Section 6.1(6) or (7) occurs which is
continuing at the end of the period;

     (iv) the deposit does not constitute a default under any other
material agreement binding on the Company;

     (v) the Company delivers to the Trustee an Opinion of Counsel to the
effect that the trust resulting from the deposit does not constitute, or
is qualified as, a regulated investment company under the Investment
Company Act of 1940, as amended;

     (vi) in the case of the legal defeasance option, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (i) the
Company has received from, or there has been published by, the Internal
Revenue Service a ruling, or (ii) since the date of this Indenture there
has been a change in the applicable federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Securityholders will not recognize income, gain or loss
for federal income tax purposes as a result of such deposit and
defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if
such deposit and defeasance had not occurred;

     (vii) in the case of the covenant defeasance option, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Securityholders of such series will not recognize income, gain
or loss for federal income tax purposes as a result of such deposit and
defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if
such deposit and defeasance had not occurred; and

     (viii) the Company delivers to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent to
the defeasance and discharge of the Securities of such series as
contemplated by this Article VIII have been complied with.

     Before or after a deposit, the Company may make arrangements satisfactory
to the Trustee for the redemption of Securities at a future date in accordance
with Article III.

29

 

     SECTION 8.3 Application of Trust Money. The Trustee shall hold in trust
money or U.S. Government Obligations deposited with it pursuant to this Article
VIII. It shall apply the deposited money and the money from U.S. Government
Obligations either directly or through the Paying Agent as the Trustee may
determine and in accordance with this Indenture to the payment of Principal of
and interest on the Securities.

     SECTION 8.4 Repayment to Company. The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money or securities
held by them at any time.

     Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon written request any money held by
them for the payment of Principal or interest that remains unclaimed for two
years after the date of payment of such Principal and interest, and,
thereafter, Securityholders entitled to the money must look to the Company for
payment as general creditors.

     SECTION 8.5 Indemnity for Government Obligations. The Company shall pay
and shall indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against deposited U.S. Government Obligations or the principal and
interest received on such U.S. Government Obligations other than any such tax,
fee or other charge which by law is for the account of the Holders of the
defeased Securities; provided that the Trustee shall be entitled to charge any
such tax, fee or other charge to such Holder’s account.

     SECTION 8.6 Reinstatement. If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article
VIII by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Securities shall be revived and reinstated as though no deposit had
occurred pursuant to this Article VIII until such time as the Trustee or Paying
Agent is permitted to apply all such money or U.S. Government Obligations in
accordance with this Article VIII; provided, however, that, (a) if the Company
has made any payment of interest on or Principal of any Securities following
the reinstatement of their obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
or U.S. Government Obligations held by the Trustee or Paying Agent and (b)
unless otherwise required by any legal proceeding or any order or judgment of
any court or governmental authority, the Trustee or Paying Agent shall return
all such money and U.S. Government Obligations to the Company promptly after
receiving a written request therefor at any time, if such reinstatement of the
Company’s obligations has occurred and continues to be in effect.

ARTICLE IX

Amendments

     SECTION 9.1 Without Consent of Holders. The Company and the Trustee may
amend this Indenture or the Securities without notice to or consent of any
Securityholder:

30

 

     (i) to cure any ambiguity, omission, defect or inconsistency;

     (ii) to comply with Article V;

     (iii) to provide for uncertificated Securities in addition to or in
place of certificated Securities; provided, however, that the
uncertificated Securities are issued in registered form for purposes of
Section 163(f) of the Code or in a manner such that the uncertificated
Securities are as described in Section 163(f)(2)(B) of the Code;

     (iv) to add guarantees with respect to the Securities of all or any
series;

     (v) to add security for the Securities of all or any series;

     (vi) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities or to surrender any right or
power herein conferred upon the Company;

     (vii) to make any change that does not adversely affect the rights
of any Securityholder; and

     (viii) to comply with any requirements of the SEC in connection with
qualifying this Indenture under the TIA.

     After an amendment under this Section 9.1 becomes effective, the Company
shall mail to Securityholders of the applicable series a notice briefly
describing such amendment. The failure to give such notice to all
Securityholders of such series, or any defect therein, shall not impair or
affect the validity of an amendment under this Section 9.1.

     SECTION 9.2 With Consent of Holders. The Company and the Trustee may
amend this Indenture or the Securities without notice to any Securityholder but
with the written consent of the Holders of at least a majority in principal
amount of the Securities then outstanding of each series affected thereby
(including consents obtained in connection with a tender offer or exchange for
Securities). However, without the consent of each Securityholder affected, an
amendment may not:

     (i) reduce the amount of Securities whose Holders must consent to an
amendment, supplement or waiver;

     (ii) reduce the rate of or extend the time for payment of interest
on any Security;

     (iii) reduce the principal of or extend the Stated Maturity of any
Security;

     (iv) reduce the premium payable upon the redemption of any Security
or change the time at which any Security may be redeemed in accordance
with Article III;

     (v) make any Security payable in money other than that stated in the
Security;

31

 

     (vi) impair the right of any Holder to receive payment of Principal
of and interest on such Holder’s Securities on or after the due dates
therefor or to institute suit for the enforcement of any payment on or
with respect to such Holder’s Securities;

     (vii) make any changes that would affect the ranking for the
Securities in a manner adverse to the Holders; or

     (viii) make any change in the second sentence of this Section 9.2.

     It shall not be necessary for the consent of the Holders under this
Section 9.2 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof.

     After an amendment under this Section 9.2 becomes effective, the Company
shall mail to Securityholders of the applicable series a notice briefly
describing such amendment. The failure to give such notice to all
Securityholders of such series, or any defect therein, shall not impair or
affect the validity of an amendment under this Section 9.2.

     SECTION 9.3 Compliance with Trust Indenture Act. Every amendment to this
Indenture or the Securities shall comply with the TIA as then in effect.

     SECTION 9.4 Revocation and Effect of Consents and Waivers. A consent to
an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent or waiver is not made on the Security. After an amendment or
waiver becomes effective with respect any series of Securities, it shall bind
every Securityholder of such series.

     The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Securityholders entitled to give their consent or
take any other action described above or required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding
the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons,
shall be entitled to give such consent or to revoke any consent previously
given or to take any such action, whether or not such Persons continue to be
Holders after such record date.

     SECTION 9.5 Notation on or Exchange of Securities. If an amendment
changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Company shall provide in writing to
the Trustee an appropriate notation to be placed on the Security regarding the
changed terms and return it to the Holder. Alternatively, if the Company or
the Trustee so determine, the Company in exchange for the Security shall issue
and the Trustee shall authenticate a new Security that reflects the changed
terms. Failure to make the appropriate notation or to issue a new Security
shall not affect the validity of such amendment.

     SECTION 9.6 Trustee To Sign Amendments. The Trustee shall sign any
amendment authorized pursuant to this Article IX if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not

32

 

sign it. In signing such amendment
the Trustee shall be entitled to receive indemnity reasonably satisfactory to
it and to receive, and (subject to Section 7.1) shall be fully protected in
relying upon, in addition to the documents required by Section 10.4, an
Officers’ Certificate and an Opinion of Counsel stating that such amendment
complies with the provisions of this Article IX and that such supplemental
indenture constitutes the legal valid and binding obligation of the Company in
accordance with its terms subject to customary exceptions.

     SECTION 9.7 Payment for Consent. Neither the Company nor any affiliate of
the Company shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder of a
Security of any series for, or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid to all Holders of a Securities
of such series that so consent, waive or agree to amend in the time frame set
forth in solicitation documents relating to such consent, waiver or agreement.

ARTICLE X

Miscellaneous

     SECTION 10.1 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 provision required by
the TIA shall control.

     SECTION 10.2 Notices. Any notice or communication shall be in writing and
delivered in person or mailed by first-class mail addressed as follows:

	 	 	 
	

	 	if to the Company:
	 
	 	 
	

	 	Computer Associates International, Inc.
	

	 	One Computer Associates Plaza
	

	 	Islandia, New York 11749
	

	 	Facsimile No.: (631) 342-4854
	

	 	Attention: Treasurer
	 
	 	 
	

	 	if to the Trustee:
	 
	 	 
	

	 	The Bank of New York
	

	 	101 Barclay Street
	

	 	Floor 8W
	

	 	New York, New York 10286
	

	 	Facsimile No.: (212) 815-5707
	

	 	Attention: Corporate Trust Administration

     Any notices between the Company and the Trustee may be by facsimile, with
telephone confirmation of receipt and the original to follow by guaranteed
overnight courier. The Company or the Trustee by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

33

 

     Any notice or communication mailed to a Securityholder shall be mailed to
the Securityholder at the Securityholder’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 Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

     SECTION 10.3 Communication by Holders with other Holders. Securityholders
may communicate pursuant to TIA § 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company,
the Trustee, the Registrar and anyone else shall have the protection of TIA §
312(c).

     SECTION 10.4 Certificate and Opinion as to Conditions Precedent. Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Company shall furnish to the
Trustee:

     (i) an Officers’ Certificate in form and substance reasonably
satisfactory to the Trustee 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 in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of such counsel,
all such conditions precedent have been complied with.

     SECTION 10.5 Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

     (i) a statement that the individual making such certificate or
opinion 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
certificate or opinion are based;

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

     (iv) a statement as to whether or not, in the opinion of such
individual, such covenant or condition has been complied with.

     SECTION 10.6 When Securities Disregarded. In determining whether the
Holders of the required principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or by any Person
directly or indirectly controlling or

34

 

controlled by or under direct or indirect
common control with the Company (an “Affiliate”) shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which a Trust Officer of the Trustee knows are so
owned shall be so disregarded. Also, subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

     SECTION 10.7 Rules by Trustee, Paying Agent and Registrar. The Trustee
may make reasonable rules for action by or a meeting of Securityholders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

     SECTION 10.8 Governing Law; Waiver of Jury Trial. This Indenture and the
Securities shall be governed by, and construed in accordance with, the laws of
the State of New York.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE
SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 10.9 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
Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and
release shall be part of the consideration for the issue of the Securities.

     SECTION 10.10 Successors. All agreements of the Company in this Indenture
and the Securities shall bind its successors. All agreements of the Trustee in
this Indenture shall bind its successors.

     SECTION 10.11 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.

     SECTION 10.12 Variable Provisions. The Company initially appoints the
Trustee as Paying Agent and Registrar and custodian with respect to any Global
Securities (as defined in the Appendix hereto).

     SECTION 10.13 Qualification of Indenture. The Company shall qualify this
Indenture under the TIA in accordance with the terms and conditions of the
Registration Rights Agreement and shall pay all reasonable costs and expenses
(including attorneys’ fees for the Company, the Trustee and the Holders)
incurred in connection therewith, including, but not limited to, costs and
expenses of qualification of this Indenture and the Securities and printing
this Indenture and the Securities. The Trustee shall be entitled to receive
from the Company any such Officers’ Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.

35

 

     SECTION 10.14 Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

36

 

     IN WITNESS WHEREOF, the parties have caused this Indenture to be duly
executed as of the date first written above.

	 	 	 	 	 
	 	COMPUTER ASSOCIATES INTERNATIONAL, INC.

 	 
	 	By:  	

	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	
	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

RULE 144A/REGULATION S APPENDIX

FOR OFFERINGS TO QUALIFIED INSTITUTIONAL BUYERS PURSUANT TO

RULE 144A AND TO CERTAIN PERSONS IN OFFSHORE TRANSACTIONS IN

RELIANCE ON REGULATION S.

PROVISIONS RELATING TO INITIAL SECURITIES,

ADDITIONAL SECURITIES,

PRIVATE EXCHANGE SECURITIES

AND EXCHANGE SECURITIES

     1. Definitions.

     1.1 Definitions.

     For the purposes of this Appendix the following terms shall have the
meanings indicated below:

     “Additional Securities” means the 4.750% Senior Notes due 2009 and the
5.625% Senior Notes due 2014, other than the Initial Securities, the Exchange
Securities and the Private Exchange Securities, that may be issued from time to
time under the Indenture.

     “Depositary” means The Depository Trust Company, its nominees and their
respective successors and assigns.

     “Exchange Securities” means the Series B 4.750% Senior Notes due 2009 and
the Series B 5.625% Senior Notes due 2014 to be issued pursuant to this
Indenture in connection with a Registered Exchange Offer pursuant to the
Registration Rights Agreement.

     “Indenture” means the Indenture dated as of November 18, 2004 between the
Company and the Trustee, of which this Appendix is incorporated therein and
forms a part thereof.

     “Initial Purchasers” means Banc of America Securities LLC, Citigroup
Global Markets Inc., J.P. Morgan Securities Inc., Barclays Capital Inc., BNP
Paribas Securities Corp., KeyBanc Capital Markets, Mitsubishi Securities
International plc, Wachovia Capital Markets, LLC, ABN AMRO Incorporated and
Scotia Capital (USA) Inc.

     “Initial Securities” means the 4.750% Senior Notes due 2009 and 5.625%
Senior Notes due 2014, issued under this Indenture on the date thereof.

     “Private Exchange” means the offer by the Company, pursuant to the
Registration Rights Agreement, to the Initial Purchasers to issue and deliver
to each Initial Purchaser, in exchange for the Initial Securities or Additional
Securities held by the Initial Purchaser, as the case may be, as part of its
initial distribution, a like aggregate principal amount of Private Exchange
Securities.

 

 

Appendix, p. 2

     “Private Exchange Securities” means the Series C 4.750% Senior Notes due
2009 and the Series C 5.625% Senior Notes due 2014, if any, to be issued
pursuant to this Indenture to the Initial Purchasers in a Private Exchange.

     “Purchase Agreement” means the Purchase Agreement dated November 15, 2004,
between the Company and the Initial Purchasers, and with respect to any
Additional Securities, one or more purchase agreements as may be entered into
between the Company and the other parties thereto, as such agreements may be
amended from time to time.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Registered Exchange Offer” means the offer by the Company, pursuant to
the Registration Rights Agreement, to certain Holders of Initial Securities and
any Additional Securities, to issue and deliver to such Holders, in exchange
for the Initial Securities and any Additional Securities, a like aggregate
principal amount of Exchange Securities registered under the Securities Act.

     “Registration Rights Agreement” means the Registration Rights Agreement
dated as of November 18, 2004 between the Company and the Initial Purchasers,
and with respect to any Additional Securities, one or more registration rights
agreements as may be entered into between the Company and the other parties
thereto, as such agreements may be amended from time to time.

     “SEC” means the U.S. Securities and Exchange Commission, or any successor
agency.

     “Securities” means the Initial Securities, the Exchange Securities, the
Private Exchange Securities and any Additional Securities actually issued.

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

     “Securities Custodian” means the custodian with respect to a Global
Security (as appointed by the Depositary), or any successor person thereto and
shall initially be the Trustee.

     “Shelf Registration Statement” means the registration statement issued by
the Company, in connection with the offer and sale of Initial Securities or
Private Exchange Securities, pursuant to the Registration Rights Agreement.

     “Transfer Restricted Securities” means Securities that bear or are
required to bear the legend set forth in Section 2.3(b) hereto.

     1.2 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section

	“Agent Members”
	 	 	2.1	(b)
	“Global Security”
	 	 	2.1	(a)

 

 

Appendix, p. 3

	 	 	 	 	 
	“Regulation S”
	 	 	2.1	(a)
	“Rule 144A”
	 	 	2.1	(a)

     Other terms used and not defined in this Appendix are used as defined in
the Indenture.

     2. The Securities.

     2.1 Form and Dating.

     The Initial Securities are offered and sold by the Company pursuant to the
Purchase Agreement.

     (a) Global Securities. Initial Securities and any Additional Securities
offered and sold to a QIB in reliance on Rule 144A under the Securities Act
(“Rule 144A”) or in reliance on Regulation S under the Securities Act
(“Regulation S”), in each case as provided in the Purchase Agreement, shall be
issued initially in the form of permanent global Securities for both Rule 144A
and Regulation S purchases, in definitive, fully registered form without
interest coupons with the global securities legend and restricted securities
legend set forth in Exhibit 1 hereto (each, a “Global Security”), which shall
be deposited on behalf of the purchasers of the Initial Securities and any
Additional Securities represented thereby with the Trustee as custodian for the
Depositary (or with such other custodian as the Depositary may direct), and
registered in the name of the Depositary or a nominee of the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. Upon the issuance of the Exchange Securities, the aggregate
principal amount of the Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the Depositary
or its nominee as hereinafter provided.

     (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a
Global Security deposited with or on behalf of the Depositary.

     The Company shall execute and the Trustee shall, in accordance with this
Section 2.1(b), authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depositary for such
Global Securities or the nominee of such Depositary and (b) shall be delivered
by the Trustee to such Depositary or pursuant to such Depositary’s instructions
or held by the Trustee as custodian for the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depositary or by the Trustee as the custodian of the
Depositary or under such Global Security, and the Depositary may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner 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 shall impair, as between the Depositary and its Agent Members,
the operation of customary practices of such Depositary governing the exercise
of the rights of a holder of a beneficial interest in any Global Security.

 

 

Appendix, p. 4

     (c) Certificated Securities. Except as provided in this Section 2.1 or
Section 2.3 or 2.4, owners of beneficial interests in Global Securities will
not be entitled to receive physical delivery of certificated Securities.

     2.2 Authentication. The Trustee shall authenticate and deliver: (1)
Initial Securities for original issue in an aggregate principal amount of
U.S.$500 million with respect to the 2009 Initial Securities and U.S.$500
million with respect to the 2014 Initial Securities, (2) Additional Securities
in an aggregate principal amount to be determined by the Company and (3)
Exchange Securities or Private Exchange Securities for issue only in a
Registered Exchange Offer or a Private Exchange, respectively, pursuant to the
Registration Rights Agreement, for a like principal amount of Initial
Securities or Additional Securities, as the case may be, in each case upon a
written order of the Company signed by two Officers or by an Officer and either
an Assistant Treasurer or an Assistant Secretary of the Company. Such order
shall specify the series of Securities to be authenticated, amount of the
Securities to be authenticated and the date on which the original issue of
Securities is to be authenticated and whether the Securities are to be Initial
Securities, Additional Securities, Exchange Securities or Private Exchange
Securities. In the case of the issuance of Exchange Securities, the Company
shall also provide an Officers’ Certificate stating that all conditions
precedent to the Registered Exchange Offer have been complied with and the
related Registration Statement has been declared effective by the SEC.

     With respect to any Additional Securities, the Company shall set forth in
a resolution of its Board of Directors and an Officers’ Certificate, the
following information:

               (i) aggregate principal amount of such Additional Securities to be
authenticated and delivered pursuant to the Indenture;

               (ii) whether they are 2009 Additional Securities or 2014 Additional
Securities; and

               (ii) the issue price and the issue date of the Additional
Securities.

     2.3 Transfer and Exchange. (a) Transfer and Exchange of Global Securities. (i) The transfer and
exchange of Global Securities or beneficial interests therein shall be effected
through the Depositary, in accordance with the Indenture (including applicable
restrictions on transfer set forth herein, if any) and the procedures of the
Depositary therefor. A transferor of a beneficial interest in a Global
Security shall deliver to the Registrar a written order given in accordance
with the Depositary’s procedures containing information regarding the
participant account of the Depositary to be credited with a beneficial interest
in the Global Security. The Registrar shall, in accordance with such
instructions instruct the Depositary to credit to the account of the Person
specified in such instructions a beneficial interest in the Global Security and
to debit the account of the Person making the transfer the beneficial interest
in the Global Security being transferred.

               (ii) Notwithstanding any other provisions of this Appendix (other
than the provisions set forth in Section 2.4), a Global Security may not
be transferred as a whole except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary

 

 

Appendix, p. 5

or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

               (iii) In the event that a Global Security is exchanged for
Securities in definitive registered form pursuant to Section 2.4 of this
Appendix or Section 2.9 of the Indenture, prior to the consummation of a
Registered Exchange Offer or the effectiveness of a Shelf Registration
Statement with respect to such Securities, such Securities may be
exchanged only in accordance with such procedures as are substantially
consistent with the provisions of this Section 2.3 (including the
certification requirements set forth on the reverse of the Initial
Securities (or any Additional Securities actually issued) intended to
ensure that such transfers comply with Rule 144A or Regulation S, as the
case may be) and such other procedures as may from time to time be
adopted by the Company.

     (b) Legend.

               (i) Except as permitted by the following paragraphs (ii), (iii) and
(iv), each Security certificate evidencing the Global Securities (and all
Securities issued in exchange therefor or in substitution thereof) shall
bear a legend in substantially the following form:

	 	 	“THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS
NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
EACH PURCHASER OF THIS NOTE IS NOTIFIED THAT THE SELLER OF THIS
NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION
5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.
	 
	 	 	THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT
(A) THIS NOTE MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) INSIDE THE UNITED STATES
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH REGULATION S UNDER THE SECURITIES ACT, (III) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 (IF AVAILABLE) OR OTHER APPLICABLE EXEMPTION OR (IV)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY

 

 

Appendix, p. 6

	 	 	ANY PURCHASER OF THIS NOTE FROM IT OF THE
RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.”

     (ii) Upon any sale or transfer of a Transfer Restricted Security
(including any Transfer Restricted Security represented by a Global
Security) pursuant to Rule 144 under the Securities Act, in the case of
any Transfer Restricted Security that is represented by a Global
Security, the Trustee shall permit the Holder thereof to exchange such
Transfer Restricted Security for a certificated Security that does not
bear the legend set forth above and rescind any restriction on the
transfer of such Transfer Restricted Security, if the Holder certifies in
writing to the Trustee that its request for such exchange was made in
reliance on Rule 144 (such certification to be in the form set forth on
the reverse of the Security).

     (iii) After a transfer of any Initial Securities, Additional
Securities or Private Exchange Securities during the period of the
effectiveness of a Shelf Registration Statement with respect to such
Initial Securities, Additional Securities or Private Exchange Securities,
as the case may be, which transfer complies with the plan of distribution
set forth in such Shelf Registration Statement, all requirements
pertaining to legends on such Initial Securities, Additional Securities
or such Private Exchange Securities will cease to apply, but the
requirements requiring such Initial Securities, Additional Securities or
such Private Exchange Securities issued to certain Holders be issued in
global form will continue to apply, and Initial Securities, Additional
Securities or Private Exchange Securities in global form without legends
will be available to the transferee of the Holder of such Initial
Securities, Additional Securities or Private Exchange Securities upon
exchange of such transferring Holder’s Initial Securities, Additional
Securities or Private Exchange Securities or directions to transfer such
Holder’s interest in the Global Security, as applicable.

     (iv) Upon the consummation of a Registered Exchange Offer with
respect to the Initial Securities and any Additional Securities actually
issued pursuant to which Holders of such Initial Securities and
Additional Securities are offered Exchange Securities in exchange for
their Initial Securities and Additional Securities, all requirements
pertaining to such Initial Securities and Additional Securities that
Initial
Securities and Additional Securities issued to certain Holders be
issued in global form will continue to apply and Initial Securities and
Additional Securities in global form with the restricted securities
legend set forth in Exhibit 1 hereto will be available to Holders of such
Initial Securities and Additional Securities that do not exchange their
Initial Securities and Additional Securities, and Exchange Securities in
global form will be available to Holders that exchange such Initial
Securities and Additional Securities in such Registered Exchange Offer.

     (v) Upon the consummation of a Private Exchange with respect to the
Initial Securities and any Additional Securities actually issued pursuant
to which Holders of such Initial Securities and Additional Securities are
offered Private Exchange Securities in exchange for their Initial
Securities and Additional Securities, all requirements pertaining to such
Initial Securities and Additional Securities that Initial Securities and
Additional Securities issued to certain Holders be issued in global form

 

 

Appendix, p. 7

will still apply, and Private Exchange Securities in global form with the
Restricted Securities Legend set forth in Exhibit 1 hereto will be
available to Holders that exchange such Initial Securities and Additional
Securities in such Private Exchange.

     (c) Cancellation or Adjustment of Global Security. At such time as all
beneficial interests in a Global Security have either been exchanged for
certificated Securities, redeemed, repurchased or canceled, such Global
Security shall be returned to the Depositary for cancellation or retained and
canceled by the Trustee. At any time prior to such cancellation, if any
beneficial interest in a Global Security is exchanged for certificated
Securities, redeemed, repurchased or canceled, the principal amount of
Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then
the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such
reduction.

     (d) Obligations with Respect to Transfers and Exchanges of Securities.

               (i) To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate certificated Securities
and Global Securities at the Registrar’s request in accordance with the
terms of the Indenture (including this Appendix).

               (ii) No service charge shall be made for any registration of
transfer or exchange, but the Company or the Registrar may require a
Holder to furnish appropriate endorsements and transfer documents and
payment of a sum sufficient to cover any transfer tax, assessments, or
similar governmental charge payable in connection therewith (other than
any such transfer taxes, assessments or similar governmental charge
payable upon exchange or transfer pursuant to Sections 3.6 and 9.5 of the
Indenture).

               (iii) The Registrar shall not be required to register the transfer
of or exchange of any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security
not to be redeemed) for a period beginning 15 days before a selection of
Securities to be redeemed and ending on the date of such selection.

               (iv) Prior to the due presentation for registration of transfer of
any certificated Security, the Company, the Trustee, the Paying Agent and
the Registrar may deem and treat the person in whose name a Security is
registered as the absolute owner of such Security for the purpose of
receiving payment of Principal of and interest on such Security and for
all other purposes whatsoever, whether or not such Security is overdue
and notwithstanding any notation of ownership or other writing on such
Security made by anyone other than the Company or the Registrar, and none
of the Company, the Trustee, the Paying Agent or the Registrar shall be
affected by notice to the contrary.

               (v) All Securities issued upon any transfer or exchange pursuant to
the terms of the Indenture shall evidence the same debt and shall be
entitled to the same benefits under the Indenture as the Securities
surrendered upon such transfer or exchange.

 

 

Appendix, p. 8

No such transfer shall be
effected until, and such transferee shall succeed to the rights of a
Holder only upon, final acceptance and registration of the transfer by
the Registrar.

     (e) No Obligation of the Trustee.

               (i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Security, a member of, or a participant in
the Depositary or other Person with respect to the accuracy of the
records of the Depositary or its nominee or of any participant or member
thereof, with respect to any ownership interest in the Securities or with
respect to the delivery to any participant, member, beneficial owner or
other Person (other than the Depositary) of any notice (including any
notice of redemption) or the payment of any amount, under or with respect
to such Securities. All notices and communications to be given to the
Holders and all payments to be made to Holders under the Securities shall
be given or made only to or upon the order of the registered Holders
(which shall be the Depositary or its nominee in the case of a Global
Security). The rights of beneficial owners in any Global Security shall
be exercised only through the Depositary subject to the applicable rules
and procedures of the Depositary. The Trustee may rely and shall be
fully protected in relying upon information furnished by the Depositary
with respect to its members, participants and any beneficial owners.

               (ii) The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer
imposed under the Indenture or under applicable law with respect to any
transfer of any interest in any Security (including any transfers between
or among Depositary participants, members or beneficial owners in any
Global Security) other than with respect to certificated Securities to
require delivery of such certificates and other documentation or evidence
as are expressly required by, and to do so if and when expressly required
by, the terms of the Indenture on the form provided herein.

     2.4 Certificated Securities.

     (a) A Global Security deposited with the Depositary or with the Trustee as
custodian for the Depositary pursuant to Section 2.1 shall be transferred to
the beneficial owners
thereof in the form of certificated Securities in an aggregate principal
amount equal to the principal amount of such Global Security, in exchange for
such Global Security, only if such transfer complies with Section 2.3 and (i)
the Depositary notifies the Company that it is unwilling or unable to continue
as Depositary for such Global Security or if at any time such Depositary ceases
to be a “clearing agency” registered under the Exchange Act and a successor
depositary is not appointed by the Company within 90 days of such notice or
(ii) an Event of Default has occurred and is continuing or (iii) the Company,
in its sole discretion, notifies the Trustee in writing that it elects to cause
the issuance of certificated Securities under the Indenture or (iv) pursuant to
Section 2.3(b)(ii).

     (b) Any Global Security that is transferable to the beneficial owners
thereof pursuant to this Section shall be surrendered by the Depositary to the
Trustee, to be so transferred, in whole or from time to time in part, without
charge, and the Trustee shall authenticate and deliver, upon such transfer of
each portion of such Global Security, an equal

 

 

Appendix, p. 9

aggregate principal amount of
certificated Securities of authorized denominations. Any portion of a Global
Security transferred pursuant to this Section shall be executed, authenticated
and delivered only in denominations of U.S.$1,000 and any integral multiple
thereof and registered in such names as the Depositary shall direct. Any
certificated Security delivered in exchange for an interest in the Global
Security shall, except as otherwise provided by Section 2.3(b), bear the
restricted securities legend set forth in Exhibit 1 hereto.

     (c) Subject to the provisions of Section 2.1(b), the registered Holder of
a Global Security may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under the
Indenture or the Securities.

     (d) In the event of the occurrence of any of the events specified in
Section 2.4(a), the Company will promptly make available to the Trustee a
reasonable supply of certificated Securities in definitive, fully registered
form without interest coupons.

 

 

EXHIBIT 1

TO RULE 144A/REGULATION S APPENDIX

[FORM OF FACE OF INITIAL SECURITY OR ADDITIONAL SECURITY]

[RULE 144A] [REGULATION S] GLOBAL SECURITY

[Global Securities Legend]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS 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 DTC 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 THIS
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

[Restricted Securities Legend]

     THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS NOTIFIED THAT THE SELLER
OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

     THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I)
INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER
THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION

 

 

FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF
AVAILABLE) OR OTHER APPLICABLE EXEMPTION OR (IV) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH
(IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.”

 

 

COMPUTER ASSOCIATES INTERNATIONAL, INC.

	 	 	 
	

	 	Principal Amount U.S.$ _____________
	 
	 	 
	No. _____________

	 	CUSIP NO. _____________
	 
	 	 
	COMMON CODE NO. _____________

	 	ISIN NO. ________________

[4.750% Senior Notes due 2009]

[5.625% Senior Notes due 2014]

     Computer Associates International, Inc., a Delaware corporation, for value
received, promises to pay to    , or registered assigns, the principal
sum of    Dollars ($   ), equal to the amount
specified on the face hereof, as such amount may be adjusted from time to time
for such increases or decreases thereto as may be indicated on the Schedule of
Increases or Decreases in Global Security attached hereto, on    ,
[2009] [2014].

     Interest Payment Dates: June 1 and December 1, commencing June 1, 2005.

     Record Dates: May 15 and November 15.

 

 

     Additional provisions of this Security are set forth on the other side of
this Security.

	 	 	Dated: November    , 2004

	 	 	 	 	 
	 	 COMPUTER ASSOCIATES INTERNATIONAL, INC.

By 

         Name:

         Title:

 	 

	 	 	 	 	 
	 	By

         Name:

         Title:	 
	 	
 	 
	 	 	 
	 	 	 

 

 

	 	 	 
	TRUSTEE’S
CERTIFICATE OF
AUTHENTICATION

	 	Dated: November 18, 2004
	 
	 	 
	This is one of the Securities
of the series designated
herein and
referred to in the within-mentioned
Indenture.
	 	 

	 	 	 
	THE BANK OF NEW YORK, as Trustee

	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	By 
                                                                         
	 	 
	 
	 	 
	Authorized Officer
	 	 

3

 

	 	 	 	 	 

[FORM OF REVERSE OF INITIAL SECURITY OR ADDITIONAL SECURITY]

(Reverse of Security)

[4.750% Senior Notes due 2009]

[5.625% Senior Notes due 2014]

1. Interest

     Computer Associates International, Inc., a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the “Company”), promises to pay interest on
the principal amount of this Security at the rate per annum shown above;
provided, however, that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional cash interest will accrue on
this Security in accordance with the terms of the Registration Rights Agreement
at a rate of up to 0.50% per annum from and including the date on which any
such Registration Default shall occur to but excluding the date on which all
Registration Defaults have been cured, calculated on the principal amount of
this Security as of the date on which such interest is payable. Such
additional cash interest of up to 0.50% per annum is payable in addition to any
other interest payable from time to time with respect to this Security. The
Trustee will not be deemed to have notice of a Registration Default until it
shall have received actual notice of such Registration Default.

     The Company will pay interest semiannually on June 1 and December 1 of
each year (each such date, an “Interest Payment Date”), commencing June 1,
2005. Interest on this Security will accrue from November 18, 2004, or from
the most recent date to which interest has been paid on this Security.
Interest will be computed on the basis of a 360-day year consisting of twelve
30-day months.

2. Method of Payment

     By no later than noon (New York City time) on the date on which any
Principal of or interest on any Security is due and payable, the Company shall
irrevocably deposit with the Trustee or the Paying Agent money sufficient to
pay such Principal and/or interest. The Company will pay interest (except
defaulted interest) to the Persons who are registered Holders of Securities at
the close of business on the May 15 or November 15 immediately preceding the
interest payment date even if Securities are cancelled, repurchased or redeemed
after the record date and on or before the interest payment date. Holders must
surrender Securities to a Paying Agent to collect principal payments. The
Company will pay Principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts.
However, the Company may pay Principal and interest by check payable in such
money. It may mail an interest check to a Holder’s registered address.

3. Paying Agent and Registrar

     Initially, The Bank of New York, at its Corporate Trust Office (the
“Trustee”), will act as Paying Agent and Registrar. The Company may appoint
and change any Paying

 

 

Agent or Registrar without notice to any Securityholder. The Company or
any of its domestically incorporated wholly owned Subsidiaries may act as
Paying Agent.

4. Indenture

     This Security is one of a duly authorized issues of securities by the
Company (herein called the “Securities”) issued and to be issued in one or more
series under an Indenture dated as of November 18, 2004 (as it may be amended
or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), between the Company and the Trustee. The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date of the Indenture (the “Act”). Capitalized terms used herein
and not defined herein have the meanings ascribed thereto in the Indenture.
The Securities are subject to all such terms, and Securityholders are referred
to the Indenture and the Act for a statement of those terms.

     The Securities are senior obligations of the Company initially limited to
U.S.$500,000,000 aggregate principal amount (subject to Section 2.7 of the
Indenture). This Security is one of the [2009][2014] [Initial] [Additional]
Securities referred to in the Indenture. The Securities include the
[2009][2014] Initial Securities and any [2009][2014] Additional Securities
actually issued, [2009][2014] Private Exchange Securities and [2009][2014]
Exchange Securities issued in exchange for the [2009][2014] Initial Securities
or [2009][2014] Additional Securities pursuant to the Indenture and the
Registration Rights Agreement. The [2009][2014] Initial Securities, the
[2009][2014] Private Exchange Securities, the [2009][2014] Exchange Securities
and any [2009][2014] Additional Securities actually issued are treated as a
single class of securities under the Indenture. The Indenture imposes certain
limitations on the ability of the Company to create liens, enter into sale and
leaseback transactions and enter into mergers and consolidations.

5. Optional Redemption

     The Securities of this series are redeemable, in whole or in part, at any
time and from time to time, at the option of the Company, at a redemption price
equal to the greater of (i) 100% of the principal amount of the Securities to
be redeemed and (ii) the sum of the present values of the Remaining Scheduled
Payments of the Securities to be redeemed, discounted to the redemption date on
a semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus [15] [20] basis points, plus accrued interest thereon
to the date of redemption. The redemption price shall be calculated on behalf
of, and furnished in writing to, the Trustee by the Independent Investment
Banker designated by the Company.

     “Treasury Rate” means, with respect to any redemption date for Securities
of this series, the rate per annum equal to the semiannual equivalent yield to
maturity (computed as of the second business day immediately preceding such
redemption date) of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date.

     “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of

 

 

the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining
term of the Securities to be redeemed.

     “Comparable Treasury Price” means, with respect to any redemption date for
the Securities of this series, (i) the average of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third Business Day preceding such redemption date, as
set forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m.
Quotations for U.S. Government Securities” or (ii) if such release (or any
successor release) is not published or does not contain such prices on such
Business Day, (a) the average of the Reference Treasury Dealer Quotations for
such redemption date, after excluding the highest and lowest of such Reference
Treasury Dealer Quotations, or (b) if the Independent Investment Banker on
behalf of the Trustee obtains fewer than four Reference Treasury Dealer
Quotations, the average of all such Quotations.

     “Independent Investment Banker” means the Reference Treasury Dealer
appointed by the Company.

     “Reference Treasury Dealer” means each of Banc of America Securities LLC,
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and their respective
successors and one other nationally recognized investment banking firm that is
a primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”) specified from time to time by the Company; provided,
however, that if any of the foregoing shall cease to be a Primary Treasury
Dealer, the Company shall substitute therefor another nationally recognized
investment banking firm that is a Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined
by the Independent Investment Banker on behalf of the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Independent
Investment Banker on behalf of the Trustee by such Reference Treasury Dealer as
of 5:00 p.m., New York City time, on the third Business Day preceding such
redemption date.

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

     Except as set forth above, this Security will not be redeemable by the
Company prior to maturity and will not be entitled to the benefit of any
sinking fund.

 

 

6. Notice of Redemption

     Notice of redemption will be mailed at least 30 days but not more than 60
days before the redemption date by first-class mail to each Holder of
Securities to be redeemed at his or her registered address. Securities in
denominations of principal amount larger than U.S.$1,000 may be redeemed in
part but only in whole multiples of U.S.$1,000. If money sufficient to pay the
redemption price of and accrued and unpaid interest on all Securities (or
portions thereof) to be redeemed on the redemption date is deposited with the
Paying Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest will cease to accrue on such
Securities (or such portions thereof) called for redemption.

7. Registration Rights

     The Company is party to a Registration Rights Agreement, dated as of
November 18, 2004, between the Company and Banc of America Securities LLC,
Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Barclays Capital
Inc., BNP Paribas Securities Corp., KeyBanc Capital Markets, Mitsubishi
Securities International plc, Wachovia Capital Markets, LLC, ABN AMRO
Incorporated and Scotia Capital (USA) Inc., pursuant to which it is obligated
to pay Additional Interest (as defined therein) upon the occurrence of certain
Registration Defaults (as defined therein).

     8. Denominations; Transfer; Exchange

     The Securities of this series are issuable only in registered form without
coupons in denominations of principal amount of U.S.$2,000 and integral
multiples of $1,000 in excess thereof. A Holder may register, transfer or
exchange Securities in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements or
transfer documents and to pay any taxes and fees required by law or permitted
by the Indenture. The Registrar need not register the transfer of or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) for a period
beginning 15 days before a selection of Securities to be redeemed and ending on
the date of such selection.

9. Persons Deemed Owners

     The registered holder of this Security may be treated as the owner of it
for all purposes.

10. Unclaimed Money

     If money for the payment of Principal or interest remains unclaimed for
two years after the date of payment of Principal and interest, the Trustee or
Paying Agent shall pay the money back to the Company at its request unless an
abandoned property law designates another Person. After any such payment,
Holders entitled to the money must look only to the Company and not to the
Trustee for payment.

 

 

11. Defeasance

     Subject to certain conditions set forth in the Indenture, the Company at
any time may terminate some or all of its obligations under the Securities of
this series and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of Principal of and interest on the
Securities of this series to redemption or maturity, as the case may be.

     12. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities of this series may be amended with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities of this series and (ii) with respect to this series, any
default or noncompliance with any provision of the Indenture or the Securities
of this series may be waived with the written consent of the Holders of a
majority in principal amount of the outstanding Securities of this series.
Subject to certain exceptions set forth in the Indenture, without the consent
of any Securityholder, the Company and the Trustee may amend the Indenture or
the Securities to cure any ambiguity, omission, defect or inconsistency, or to
comply with Article V of the Indenture, or to provide for uncertificated
Securities of this series in addition to or in place of certificated Securities
of this series, or to add guarantees with respect to the Securities of this
series or to add security for the Securities of this series, or to add
additional covenants of or surrender rights and powers conferred on the
Company, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not adversely
affect the rights of any Securityholder of this series.

13. Defaults and Remedies

     Under the Indenture, Events of Default with respect to this series include
(i) default for 30 days or more in payment of interest on the Securities of
this series; (ii) default in payment of Principal on the Securities of this
series at maturity, upon redemption pursuant to paragraph 5 of this Security,
upon declaration or otherwise; (iii) failure by the Company to comply with
other agreements in the Indenture or the Securities of this series, subject to
notice and lapse of time; (iv) a failure to pay within any grace period after
final maturity other indebtedness of the Company in an amount in excess of
U.S.$50,000,000; (v) certain accelerations of other indebtedness of the Company
if the amount accelerated exceeds U.S.$50,000,000; and (vi) certain events of
bankruptcy or insolvency involving the Company.

     If an Event of Default with respect to any Security of this series occurs
and is continuing, the Trustee or the Holders of at least 25% in aggregate
principal amount of the Securities of this series may declare all the
Securities of this series to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities of this series being due and payable immediately upon the occurrence
of such Events of Default.

     Securityholders may not enforce the Indenture or the Securities of this
series except as provided in the Indenture. The Trustee may refuse to enforce
the Indenture or the Securities of this series unless it receives reasonable
indemnity or security. Subject to certain

 

 

limitations, Holders of a majority in principal amount of the Securities
of this series may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Securityholders of this series notice of any
continuing Default or Event of Default (except a Default or Event of Default in
payment of Principal or interest) if it determines that withholding notice is
not opposed to their interest.

14. Trustee Dealings with the Company

     Subject to certain limitations set forth in the Indenture, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company and may otherwise deal with the Company
with the same rights it would have if it were not Trustee.

15. 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
Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.

16. Authentication

     This Security shall not be valid until an authorized officer of the
Trustee (or an authenticating agent acting on its behalf) manually signs the
certificate of authentication on the other side of this Security.

17. Abbreviations

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

18. 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 Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders. No representation
is made as to the accuracy of such numbers either as printed on the Securities
or as contained in any notice of redemption and reliance may be placed only on
the other identification numbers placed thereon.

19. Governing Law

     This Security shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

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

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

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

Date: _____________________ Your Signature: ______________________________________________

Signature Guarantee: ______________________________________________

(Signature must be guaranteed by a participant in a recognized Signature

Guarantee Medallion Program or other signature guarantor program reasonably

acceptable to the Trustee)

Sign exactly as your name appears on the other side of this Security.

     In connection with any transfer or exchange of any of the certificated
Securities evidenced by this certificate occurring prior to the date that is
two years after the later of the date of original issuance of such Securities
and the last date, if any, on which such Securities were owned by the Company
or any Affiliate of the Company, the undersigned confirms that such Securities
are being transferred:

     CHECK ONE BOX BELOW:

	 	(1)o	 	to the Company; or
	 
	 	(2)o	 	pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the “Securities Act”); or
	 
	 	(3)o	 	inside the United States to a “qualified institutional buyer” (as
defined in Rule 144A under the Securities Act) that purchases for its
own account or for the account of a qualified institutional buyer to
whom notice is given that such transfer is being made in reliance on
Rule 144A, in each case pursuant to and in compliance with Rule 144A
under the Securities Act; or
	 
	 	(4)o	 	outside the United States in an offshore transaction within the
meaning of Regulation S under the Securities Act in compliance with
Rule 904 thereunder; or
	 
	 	(5)o	 	pursuant to the exemption from registration provided by Rule 144 under
the Securities Act.

 

 

     Unless one of the boxes is checked, the Trustee will refuse to register
any of the certificated Securities evidenced by this certificate in the name of
any Person other than the registered holder thereof; provided, however, that if
box (4) or (5) is checked, the Trustee may require, prior to registering any
such transfer of the Securities, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act, such as the
exemption provided by Rule 144 thereunder.

	 	 	 
	

	 	

	 	 	Signature
	

	 	 
	Signature Guarantee:
	 	 

	 	 	 
	

	 	

	 	 	Signature
	 
	 	 
	 
	 	 
	(Signature must be guaranteed by a
participant in a recognized Signature
Guarantee Medallion Program or other
signature guarantor program reasonably
acceptable to the Trustee)
	 	 
	

	 	 

 

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this
certificated Security for its own account or an account with respect to which
it exercises sole investment discretion and that it and any such account is a
“qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

	 	 	 
	Dated:
	 	 
	

	 	

NOTICE: To be executed by an executive officer
	 
	 	 
	Signature Guarantee:
	 	 
	

	 	

	

	 	Signature
	 
	 	 
	(Signature must be guaranteed by a
participant in a recognized Signature
Guarantee Medallion Program or other
signature guarantor program reasonably
acceptable to the Trustee)
	 	 
	 
	 	 
	

	 	 

 

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

     The following increases or decreases in this Global Security have been
made:

	 	 	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	 	 	 	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	Principal Amount of this	 	 	Signature of authorized
	 	 	of this Global	 	 	of this Global	 	 	Global Security following	 	 	officer of Trustee or
	Date of Exchange
	 	Security
	 	 	Security
	 	 	such decrease or increase
	 	 	Securities Custodian

 

 

EXHIBIT A

[FORM OF FACE OF EXCHANGE SECURITY OR PRIVATE EXCHANGE SECURITY]

*/

COMPUTER ASSOCIATES INTERNATIONAL, INC.

**/

	 	 	 
	No. ____________________

	 	Principal Amount U.S.$ ____________________
	 
	 	 
	COMMON CODE NO. ___________________

	 	CUSIP NO. ___________________________
	 
	 	 
	 

	 	ISIN NO. ___________________________

[Series [B][C] 4.750% Senior Notes due 2009]

[Series [B][C] 5.625% Senior Notes due 2014]

     Computer Associates International, Inc., a Delaware corporation, for value
received, promises to pay to    , or registered assigns, the principal
sum of    Dollars ($   ), equal to the amount
specified on the face hereof, as such amount may be adjusted from time to time
for such increases or decreases thereto as may be indicated on the Schedule of
Increases or Decreases in Global Security attached hereto, on    ,
[2009] [2014].

     Interest Payment Dates: June 1 and December 1.

     Record Dates: May 15 and November 15.

	 	 	

	*	 	/[If the Security is to be issued in global form add the Global Securities
Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1
captioned “[TO BE ATTACHED TO GLOBAL SECURITIES] — SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL SECURITY”.]
	 
	**	 	/ [If the Security is a Private Exchange Security issued in a Private
Exchange to an Initial Purchaser holding an unsold portion of its initial
allotment, add the Restricted Securities Legend from Exhibit 1 to Appendix A
and replace the Assignment Form with the Assignment Form included in such
Exhibit 1.]

 

 

EXHIBIT A, p. 2

     Additional provisions of this Security are set forth on the other side of
this Security.

	 	 	 	 	 
	Dated:	COMPUTER ASSOCIATES INTERNATIONAL, INC.

By    

Name:

Title:

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	By    

Name:

Title:

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

Exhibit A, p. 3

TRUSTEE’S CERTIFICATE
OF            
            
            Dated:

     AUTHENTICATION

This is one of the Securities

of the series designated herein and

referred to in the within-mentioned

Indenture.

	 	 	 	 
	THE BANK OF NEW YORK, as Trustee

By

            Authorized Officer

 	 
	 	 
	 	 
	 	 

 

 

	 	 	 	 	 

Exhibit A, p. 4

[FORM OF REVERSE OF EXCHANGE SECURITY OR PRIVATE EXCHANGE SECURITY]

(Reverse of Security)

[Series [B][C] 4.750% Senior Notes due 2009]

[Series [B][C] 5.625% Senior Notes due 2014]

1. Interest

     Computer Associates International, Inc., a Delaware corporation (such
corporation, and its successors and assigns under this Indenture hereinafter
referred to, being herein called the “Company”), promises to pay interest on
the principal amount of this Security at the rate per annum shown above.

     The Company will pay interest semiannually on June 1 and December 1 of
each year (each such date, an “Interest Payment Date”), commencing    ,
   . Interest on this Security will accrue from    ,    , or from the
most recent date to which interest has been paid on this Security. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day
months.

2. Method of Payment

     By no later than noon (New York City time) on the date on which any
Principal of or interest on any Security is due and payable, the Company shall
irrevocably deposit with the Trustee or the Paying Agent money sufficient to
pay such Principal and/or interest. The Company will pay interest (except
defaulted interest) to the Persons who are registered Holders of Securities at
the close of business on the May 15 or November 15 immediately preceding the
Interest Payment Date even if Securities are cancelled, repurchased or redeemed
after the record date and on or before the Interest Payment Date. Holders must
surrender Securities to a Paying Agent to collect principal payments. The
Company will pay Principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts.
However, the Company may pay Principal and interest by check payable in such
money. It may mail an interest check to a Holder’s registered address.

3. Paying Agent and Registrar

     Initially, The Bank of New York, at its Corporate Trust Office (the
“Trustee”), will act as Paying Agent and Registrar. The Company may appoint
and change any Paying Agent or Registrar without notice to any Securityholder.
The Company or any of its domestically incorporated wholly owned Subsidiaries
may act as Paying Agent.

4. Indenture

     This Security is one of a duly authorized issue of securities by the
Company (herein called the “Securities”) issued and to be issued in one or more
series under an Indenture dated as of November 18, 2004 (as it may be amended
or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), between the Company and the Trustee. The

 

 

Exhibit A, p. 5

terms of the Securities include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15
U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”).
Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

     The Securities are senior obligations of the Company limited to
U.S.$500,000,000 aggregate principal amount (subject to Section 2.7 of the
Indenture). This Security is one of the [2009][2014] [Private] Exchange
Securities referred to in the Indenture. The Securities include the
[2009][2014] Initial Securities and any [2009][2014] Additional Securities
actually issued, [2009][2014] Private Exchange Securities and [2009][2014]
Exchange Securities issued in exchange for the [2009][2014] Initial Securities
or [2009][2014] Additional Securities pursuant to the Indenture and the
Registration Rights Agreement. The [2009][2014] Initial Securities,
[2009][2014] Private Exchange Securities, the [2009][2014] Exchange Securities
and any [2009][2014] Additional Securities actually issued are treated as a
single class of securities under the Indenture. The Indenture imposes certain
limitations on the ability of the Company to create liens, enter into sale and
leaseback transactions and enter into mergers and consolidations.

5. Optional Redemption

     The Securities of this series are redeemable, in whole or in part, at any
time and from time to time, at the option of the Company, at a redemption price
equal to the greater of (i) 100% of the principal amount of the Securities to
be redeemed and (ii) the sum of the present values of the Remaining Scheduled
Payments of the Securities to be redeemed, discounted to the redemption date on
a semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus [15] [20] basis points, plus accrued interest thereon
to the date of redemption. The redemption price shall be calculated on behalf
of, and furnished in writing to, the Trustee by the Independent Investment
Banker designated by the Company.

     “Treasury Rate” means, with respect to any redemption date for Securities
of this series, the rate per annum equal to the semiannual equivalent yield to
maturity (computed as of the second business day immediately preceding such
redemption date) of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date.

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

     “Comparable Treasury Price” means, with respect to any redemption date for
the Securities of this series, (i) the average of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third Business Day preceding such redemption date, as
set forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m.
Quotations for U.S. Government Securities” or (ii) if such release (or any
successor

 

 

Exhibit A, p. 6

release) is not published or does not contain such prices on such Business
Day, (a) the average of the Reference Treasury Dealer Quotations for such
redemption date, after excluding the highest and lowest of such Reference
Treasury Dealer Quotations, or (b) if the Independent Investment Banker on
behalf of the Trustee obtains fewer than four Reference Treasury Dealer
Quotations, the average of all such Quotations.

     “Independent Investment Banker” means the Reference Treasury Dealer
appointed by the Company.

     “Reference Treasury Dealer” means each of Banc of America Securities LLC,
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and their respective
successors and one other nationally recognized investment banking firm that is
a primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”) specified from time to time by the Company; provided,
however, that if any of the foregoing shall cease to be a Primary Treasury
Dealer, the Company shall substitute therefor another nationally recognized
investment banking firm that is a Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined
by the Independent Investment Banker on behalf of the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Independent
Investment Banker on behalf of the Trustee by such Reference Treasury Dealer as
of 5:00 p.m., New York City time, on the third Business Day preceding such
redemption date.

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

     Except as set forth above, this Security will not be redeemable by the
Company prior to maturity and will not be entitled to the benefit of any
sinking fund.

6. Notice of Redemption

     Notice of redemption will be mailed at least 30 days but not more than 60
days before the redemption date by first-class mail to each Holder of
Securities to be redeemed at his or her registered address. Securities in
denominations of principal amount larger than U.S.$1,000 may be redeemed in
part but only in whole multiples of U.S.$1,000. If money sufficient to pay the
redemption price of and accrued and unpaid interest on all Securities (or
portions thereof) to be redeemed on the redemption date is deposited with the
Paying Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest will cease to accrue on such
Securities (or such portions thereof) called for redemption.

 

 

Exhibit A, p. 7

7. Denominations; Transfer; Exchange

     The Securities of this series are issuable only in registered form without
coupons in denominations of principal amount of U.S.$2,000 and integral
multiples of U.S.$1,000 in excess thereof. A Holder may register transfer or
exchange Securities in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements or
transfer documents and to pay any taxes and fees required by law or permitted
by the Indenture. The Registrar need not register the transfer of or exchange
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) for a period
beginning 15 days before a selection of Securities to be redeemed and ending on
the date of such selection.

8. Persons Deemed Owners

     The registered holder of this Security may be treated as the owner of it
for all purposes.

9. Unclaimed Money

     If money for the payment of Principal or interest remains unclaimed for
two years after the date of payment of Principal and interest, the Trustee or
Paying Agent shall pay the money back to the Company at its request unless an
abandoned property law designates another Person. After any such payment,
Holders entitled to the money must look only to the Company and not to the
Trustee for payment.

10. Defeasance

     Subject to certain conditions set forth in the Indenture, the Company at
any time may terminate some or all of its obligations under the Securities of
this series and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of Principal of and interest on the
Securities of this series to redemption or maturity, as the case may be.

     11. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities of this series may be amended with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities of this series and (ii) with respect to this series, any
default or noncompliance with any provision of the Indenture or the Securities
of this series may be waived with the written consent of the Holders of a
majority in principal amount of the outstanding Securities of this series.
Subject to certain exceptions set forth in the Indenture, without the consent
of any Securityholder, the Company and the Trustee may amend the Indenture or
the Securities to cure any ambiguity, omission, defect or inconsistency, or to
comply with Article V of the Indenture, or to provide for uncertificated
Securities of this series in addition to or in place of certificated Securities
of this series, or to add guarantees with respect to the Securities of this
series or to add security for the Securities of this series, or to add
additional covenants of or surrender rights and powers conferred on the
Company, or to comply

 

 

Exhibit A, p. 8

with any request of the SEC in connection with qualifying the Indenture
under the Act, or to make any change that does not adversely affect the rights
of any Securityholder of this series.

12. Defaults and Remedies

     Under the Indenture, Events of Default with respect to this series include
(i) default for 30 days or more in payment of interest on the Securities of
this series; (ii) default in payment of principal on the Securities of this
series at maturity, upon redemption pursuant to paragraph 5 of this Security,
upon declaration or otherwise; (iii) failure by the Company to comply with
other agreements in the Indenture or the Securities of this series, subject to
notice and lapse of time; (iv) failure to pay within any grace period after
final maturity other indebtedness of the Company in an amount in excess of
U.S.$50,000,000; (v) certain accelerations of other indebtedness of the Company
if the amount accelerated exceeds U.S.$50,000,000; or (vi) certain events of
bankruptcy or insolvency with respect to the Company.

     If an Event of Default with respect to any Security of this series occurs
and is continuing, the Trustee or the Holders of at least 25% in aggregate
principal amount of the Securities of this series may declare all the
Securities to be due and payable immediately. Certain events of bankruptcy or
insolvency are Events of Default which will result in the Securities of this
series being due and payable immediately upon the occurrence of such Events of
Default.

     Securityholders may not enforce the Indenture or the Securities of this
series except as provided in the Indenture. The Trustee may refuse to enforce
the Indenture or the Securities of this series unless it receives reasonable
indemnity or security. Subject to certain limitations, Holders of a majority
in principal amount of the Securities of this series may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from
Securityholders notice of any continuing Default or Event of Default (except a
Default or Event of Default in payment of Principal or interest) if it
determines that withholding notice is not opposed to their interest.

13. Trustee Dealings with the Company

     Subject to certain limitations set forth in the Indenture, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company and may otherwise deal with the Company
with the same rights it would have if it were not Trustee.

14. 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
Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.

 

 

Exhibit A, p. 9

15. Authentication

     This Security shall not be valid until an authorized officer of the
Trustee (or an authenticating agent acting on its behalf) manually signs the
certificate of authentication on the other side of this Security.

16. Abbreviations

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

17. 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 Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders. No representation
is made as to the accuracy of such numbers either as printed on the Securities
or as contained in any notice of redemption and reliance may be placed only on
the other identification numbers placed thereon.

18. Governing Law

     This Security shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

 

Exhibit A, p. 10

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

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

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

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

Date: ____________________
Your Signature: _______________________________

Signature Guarantee:
______________________________________

(Signature must be guaranteed by a participant in a recognized Signature
Guarantee Medallion Program or other signature guarantor program reasonably
acceptable to the Trustee)

Sign exactly as your name appears on the other side of this Security.

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