Document:

exv4w4

 

Exhibit 4.4

CENTEX CORPORATION

Issuer

and

JPMORGAN CHASE BANK, N.A.

(formerly Chase Bank of Texas, National Association

and Texas Commerce Bank National Association)

Trustee

INDENTURE SUPPLEMENT NO. 9

Dated as of March 31, 2005

to

INDENTURE

Dated as of March 12, 1987

Subordinated Medium-Term Notes, Series F

 

 

     INDENTURE SUPPLEMENT NO. 9 (“Indenture Supplement”), dated as of March 31, 2005, between
CENTEX CORPORATION, a Nevada corporation (together with its successors and assigns as provided in
the Indenture referred to below, the “Company”), and JPMORGAN CHASE BANK, N.A., a national banking
association (formerly, Chase Bank of Texas, National Association and Texas Commerce Bank National
Association) (together with its successors in trust thereunder as provided in the Indenture
referred to below, the “Trustee”), as trustee under an Indenture dated as of March 12, 1987 (the
“Indenture”).

PRELIMINARY STATEMENT

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

ARTICLE ONE

DEFINITIONS

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

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

AGENTS:

     The term “Agents” shall mean Banc of America Securities LLC, Calyon Securities (USA) Inc.,
Citigroup Global Markets Inc., Credit Suisse First Boston LLC, J.P. Morgan Securities Inc. and UBS
Securities LLC, and any additional agents as may be appointed from time to time by the Company
pursuant to the terms of that certain Distribution Agreement, dated as of March 31, 2005, among the
Company and the aforementioned agents, acting as principal or agent in respect of the issuance and
sale by the Company of the Subordinated Notes.

AMORTIZED FACE AMOUNT:

     The term “Amortized Face Amount” of an Original Issue Discount Note, as of the date that (i)
the principal amount of such Subordinated Note is to be repaid prior to its Stated Maturity,
whether upon declaration of acceleration, call for redemption, repayment at the option of the
Holder or otherwise, or (ii) any consent, notice, request, direction, waiver or suit by the
Noteholders shall be deemed to be given, made or commenced under this Indenture, shall mean the
principal amount of such Subordinated Note multiplied by its Issue Price plus the portion of the
difference between the dollar amount thus obtained and the principal amount of such Subordinated
Note that has accreted at the Yield to maturity of such Subordinated Note (computed in accordance
with generally accepted United States bond yield computation principles) to such date, but in no
event shall the Amortized Face Amount of an Original Issue Discount Note exceed its principal
amount stated in the applicable Company Order.

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AMORTIZING NOTE:

     The term “Amortizing Note” shall mean a Subordinated Note for which payments of principal of
and interest on such Subordinated Note are made in installments over the life of such Subordinated
Note, and unless otherwise specified in the applicable Company Order, payments with respect to an
Amortizing Note shall be applied first to interest due and payable thereon and then to the
reduction of the unpaid principal amount thereof.

AUTHORIZED AGENT:

     The term “Authorized Agent” shall mean an agent of the Company designated by an Officers’
Certificate to give to the Trustee the information specified in clause (a) of “Company Order” for
the issuance of a Subordinated Note.

BASIS POINT:

     The term “Basis Point” shall mean one-one hundredth of a percentage point.

CALCULATION AGENT:

     The term “Calculation Agent” for a particular Floating Rate Note shall mean the Trustee,
unless otherwise specified in the applicable Company Order.

CALCULATION DATE:

     The term “Calculation Date” shall, unless otherwise specified in the applicable Company Order,
mean with regard to any particular Interest Determination Date, the earlier of (i) the tenth
calendar day after such Interest Determination Date, or, if any such day is not a Business Day, the
next day that is a Business Day, or (ii) the Business Day immediately preceding the applicable
Interest Payment Date or Maturity Date, as the case may be.

CD RATE:

     The term “CD Rate” shall mean, with respect to any CD Rate Interest Determination Date, the
rate on such date for negotiable United States dollar certificates of deposit having the Index
Maturity specified in the applicable Pricing Supplement as published in H.15(519) (as hereinafter
defined) under the heading “CDs (secondary market)” or, if not so published by 3:00 P.M., New York
City time, on the related Calculation Date, the rate on such CD Rate Interest Determination Date
for negotiable United States dollar certificates of deposit of the Index Maturity specified in the
applicable Pricing Supplement as published in H.15 Daily Update (as hereinafter defined), or such
other recognized electronic source used for the purpose of displaying such rate, under the caption
“CDs (secondary market).” If such rate is not yet published in H.15 Daily Update or another
recognized electronic source by 3:00 P.M., New York City time, on the related Calculation Date,
then the CD Rate on such CD Rate Interest Determination Date will be calculated by the Calculation
Agent and will be the arithmetic mean of the secondary market offered rates as of 10:00 A.M., New
York City time, on such CD Rate Interest Determination Date, of three leading nonbank dealers in
negotiable United States dollar certificates of deposit in The City of New York (which may include
the Agents or their affiliates) selected by the Calculation Agent for negotiable United States
dollar certificates of deposit of major United States money center banks for negotiable
certificates of deposit with a remaining maturity closest to the Index Maturity specified in the
applicable Pricing Supplement in an amount that is representative for a single transaction in that
market at that time; provided, however, that if the dealers so selected by the Calculation Agent
are not quoting as mentioned

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in this sentence, the CD Rate determined as of such CD Rate Interest Determination Date will
be the CD Rate in effect on such CD Rate Interest Determination Date.

CD RATE INTEREST DETERMINATION DATE:

     The term “CD Rate Interest Determination Date” shall mean the Interest Determination Date
relating to a Floating Rate Note for which the interest rate is determined with reference to the CD
Rate.

CMT RATE:

     The term “CMT Rate” shall mean, with respect to any CMT Rate Interest Determination Date, the
rate displayed on the Designated CMT Moneyline Telerate Page under the caption “...Treasury
Constant Maturities...Federal Reserve Board Release H.15...Mondays Approximately 3:45 P.M.,” under
the column for the Designated CMT Maturity Index for (i) if the Designated CMT Moneyline Telerate
Page is 7051, the rate on such CMT Rate Interest Determination Date and (ii) if the Designated CMT
Moneyline Telerate Page is 7052, the weekly or monthly average, as specified in the Company Order,
for the week or the month, as applicable, ended immediately preceding the week or the month, as
applicable, in which the related CMT Rate Interest Determination Date falls. If such rate is no
longer displayed on the relevant page or is not so displayed by 3:00 P.M., New York City time, on
the related Calculation Date, then the CMT Rate for such CMT Rate Interest Determination Date will
be such treasury constant maturity rate for the Designated CMT Maturity Index as published in
H.15(519). If such rate is no longer published or is not so published by 3:00 P.M., New York City
time, on the related Calculation Date, then the CMT Rate on such CMT Rate Interest Determination
Date will be such treasury constant maturity rate for the Designated CMT Maturity Index (or other
United States Treasury rate for the Designated CMT Maturity Index) for the CMT Rate Interest
Determination Date with respect to such Interest Reset Date as may then be published by either the
Board of Governors of the Federal Reserve System or the United States Department of the Treasury
that the Calculation Agent determines to be comparable to the rate formerly displayed on the
Designated CMT Moneyline Telerate Page and published in H.15(519). If such information is not so
provided by 3:00 P.M., New York City time, on the related Calculation Date, then the CMT Rate on
the CMT Rate Interest Determination Date will be calculated by the Calculation Agent and will be a
yield to maturity, based on the arithmetic mean of the secondary market offered rates as of
approximately 3:30 P.M., New York City time, on such CMT Rate Interest Determination Date reported,
according to their written records, by three leading primary United States government securities
dealers in The City of New York (which may include the Agents or their affiliates) (each, a
“Reference Dealer”) selected by the Calculation Agent (from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of equality, one of
the highest) and the lowest quotation (or, in the event of equality, one of the lowest)), for the
most recently issued direct noncallable fixed rate obligations of the United States (“Treasury
Notes”) with an original maturity of approximately the Designated CMT Maturity Index and a
remaining term to maturity of not less than such Designated CMT Maturity Index minus one year. If
the Calculation Agent is unable to obtain three such Treasury Note quotations, the CMT Rate on such
CMT Rate Interest Determination Date will be calculated by the Calculation Agent and will be a
yield to maturity based on the arithmetic mean of the secondary market offered rates as of
approximately 3:30 P.M., New York City time, on such CMT Rate Interest Determination Date of three
Reference Dealers in The City of New York (from five such Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the lowest)), for Treasury
Notes with an original maturity of the number of years that is the next highest to the Designated
CMT Maturity Index and a remaining term to maturity closest to the Designated CMT Maturity Index
and in an amount of at least $100 million. If three or four (and not five) of such Reference
Dealers are quoting as described above, then the CMT Rate will be based on the arithmetic mean of
the offered rates obtained and neither the highest nor the lowest of such quotes will be
eliminated; provided, however, that

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if fewer than three Reference Dealers so selected by the Calculation Agent are quoting as
mentioned herein, the CMT Rate determined as of such CMT Rate Interest Determination Date will be
the CMT Rate in effect on such CMT Rate Interest Determination Date. If two Treasury Notes with an
original maturity as described in the second preceding sentence have remaining terms to maturity
equally close to the Designated CMT Maturity Index, the Calculation Agent will obtain quotations
for the Treasury Note with the shorter remaining term to maturity.

CMT RATE INTEREST DETERMINATION DATE:

     The term “CMT Rate Interest Determination Date” shall mean any Interest Determination Date
relating to a Floating Rate Note for which the interest rate is determined with reference to the
CMT Rate.

COMMERCIAL PAPER RATE:

     The term “Commercial Paper Rate” for a particular Floating Rate Note, unless otherwise
indicated in the applicable Company Order, shall mean, with respect to any Interest Determination
Date, the Money Market Yield on such date of the rate for commercial paper having the Index
Maturity specified in such Company Order, as such rate shall be published in H.15(519) under the
caption “Commercial Paper– Nonfinancial” or, if not so published by 3:00 P.M., New York City time,
on the related Calculation Date, the rate on such Commercial Paper Rate Interest Determination Date
for commercial paper having the Index Maturity specified in the applicable Company Order as
published in H.15 Daily Update, or such other recognized electronic source used for the purpose of
displaying such rate, under the caption “Commercial Paper–Nonfinancial.” If such rate is not yet
published in H.15 Daily Update or another recognized electronic source by 3:00 P.M., New York City
time, on the related Calculation Date, then the Commercial Paper Rate on such Commercial Paper Rate
Interest Determination Date will be calculated by the Calculation Agent and will be the Money
Market Yield of the arithmetic mean of the offered rates at approximately 11:00 A.M., New York City
time, on such Commercial Paper Rate Interest Determination Date of three leading dealers of
commercial paper in The City of New York (which may include the Agents or their affiliates)
selected by the Calculation Agent for commercial paper having the Index Maturity specified in the
applicable Pricing Supplement placed for industrial issuers whose bond rating is “Aa,” or the
equivalent, from a nationally recognized statistical rating organization; provided, however, that
if the dealers so selected by the Calculation Agent are not quoting as mentioned in this sentence,
the Commercial Paper Rate determined as of such Commercial Paper Rate Interest Determination Date
will be the Commercial Paper Rate in effect on such Commercial Paper Rate Interest Determination
Date.

COMMERCIAL PAPER RATE INTEREST DETERMINATION DATE:

     The term “Commercial Paper Rate Interest Determination Date” shall mean any Interest
Determination Date relating to a Floating Rate Note for which the interest rate is determined with
reference to the Commercial Paper Rate.

COMMERCIAL PAPER RATE NOTES:

     The term “Commercial Paper Rate Notes” shall mean Floating Rate Notes which are specified in
the applicable Company Order as bearing interest at an interest rate calculated with reference to
the Commercial Paper Rate.

COMPANY ORDER:

     The term “Company Order” shall mean:

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     (a) a written order signed in the name of the Company by the Chairman of the Board, the
President or any Vice President and by the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee, to authenticate a Subordinated Note and to make it available for
delivery, and specifying for such Subordinated Note the following information:

     (1) the name of the Person in which a Subordinated Note to be issued and authenticated
shall be registered;

     (2) the address of such Person;

     (3) the taxpayer identification number of such Person;

     (4) the principal amount of such Subordinated Note and, if multiple Subordinated Notes
are to be issued to such Person, the denominations of such Subordinated Notes;

     (5) the Issue Price of such Subordinated Note;

     (6) the Original Issue Date of such Subordinated Note;

     (7) the date upon which such Subordinated Note is scheduled to mature and the Final
Maturity Date;

     (8) if the Subordinated Note is to be redeemable at the option of the Company, the
Initial Redemption Date and the date or dates on which, and the price or prices at which,
such Subordinated Note is redeemable at the option of the Company;

     (9) if the Subordinated Note is to be repayable prior to the Stated Maturity at the
option of the Holder, the date or dates on which, and the price or prices at which, such
Subordinated Note is repayable at the option of the Holder;

     (10) if the Subordinated Note is a Fixed Rate Note, the rate of interest on such
Subordinated Note and the Interest Payment Dates, if other than March 1 and September 1, and
the Record Dates, if other than February 15 and August 15;

     (11) if the Subordinated Note is an Original Issue Discount Note, its Yield to
Maturity;

     (12) if such Subordinated Note is an Amortizing Note, a table setting forth the
schedule of dates and amounts of payments of principal of and interest on such Subordinated
Note or the formula for the amortization of principal and/or interest;

     (13) if the Subordinated Note is a Reset Note, the Optional Interest Reset Date and the
formula, if any, for resetting the interest rate of a Fixed Rate Note or the Spread and/or
Spread Multiplier of a Floating Rate Note;

     (14) if the Subordinated Note is a Floating Rate Note, its:

(A) Initial Interest Rate

(B) Interest Rate Basis or Bases (including any
Designated LIBOR Currency and Designated LIBOR Page or any Designated
CMT Maturity Index and Designated CMT Moneyline Telerate Page)

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(C) Index Maturity

(D) Interest Determination Dates

(E) Interest Reset Period

(F) Initial Interest Reset Date

(G) Fixed Rate Commencement Date, if applicable

(H) Fixed Interest Rate, if applicable

(I) Interest Reset Dates

(J) Spread

(K) Spread Multiplier

(L) Maximum Interest Rate

(M) Minimum Interest Rate

(N) Interest Payment Dates

(O) Record Dates

     (15) If such Subordinated Note is a Floating Rate Note, whether it is a Regular
Floating Rate Note or a Floating Rate/Fixed Rate Note;

     (16) whether or not such Subordinated Note is to be issued in the form of a Global Note
to the Depositary;

     (17) the name and address of the Calculation Agent, if other than the Trustee;

     (18) if other than United States dollars or denominations of $1,000 and integral
multiples thereof, the authorized currency or denominations in which Subordinated Notes
shall be issued; and

     (19) all other information necessary for the issuance of such Subordinated Note not
inconsistent with the provisions of this Indenture; or

     (b) confirmation given to the Trustee by an officer of the Company designated by an Officers’
Certificate, by telephone, confirmed by telex or facsimile or similar writing, of the information
given to the Trustee by an Authorized Agent for the issuance of a Subordinated Note, and the
written order of the Company to authenticate such Subordinated Note and to make it available for
delivery.

COMPOSITE QUOTATIONS:

     The term “Composite Quotations” shall mean the daily statistical release “Composite 3:30 P.M.
Quotations for U. S. Government Securities” or any successor publication published by the Federal
Reserve Bank of New York.

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CUSIP:

     The term “CUSIP” shall mean the registered trademark “Committee on Uniform Securities
Identification Procedures” or “CUSIP” and a unique system of identification of each public issue of
a security owned by the American Bankers Association and administered by Standard and Poor’s
Corporation, as agent of the American Bankers Association.

DEPOSITARY:

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

DESIGNATED CMT MONEYLINE TELERATE PAGE:

     The term “Designated CMT Moneyline Telerate Page” shall mean the display on Moneyline Telerate
(or any successor service) on the page specified in the applicable Pricing Supplement (or any other
page as may replace such page on such service) for the purpose of displaying Treasury Constant
Maturities as reported in H.15(519) or, if no such page is specified in the applicable Pricing
Supplement, page 7052.

DESIGNATED CMT MATURITY INDEX:

     The term “Designated CMT Maturity Index” shall mean the original period to maturity of the
U.S. Treasury securities (either 1, 2, 3, 5, 7, 10, 20 or 30 years) specified in the applicable
Pricing Supplement with respect to which the CMT Rate will be calculated or, if no such maturity is
specified in the applicable Pricing Supplement, 2 years.

DESIGNATED LIBOR CURRENCY:

     The term “Designated LIBOR Currency” shall mean the currency or composite currency specified
in the applicable Company Order as to which LIBOR shall be calculated or, if no such currency or
composite currency is specified in the applicable Company Order, United States dollars.

DESIGNATED LIBOR PAGE:

     The term “Designated LIBOR Page” shall mean either (a) the display on the Reuters Monitor
Money Rates Service (or any successor service) on the page specified in such Company Order (or any
other page as may replace such page on such service) for the purpose of displaying the London
interbank rates of major banks for the Designated LIBOR Currency (if “LIBOR Reuters” is specified
in the applicable Company Order), or (b) the display on Moneyline Telerate (or any successor
service) on the page specified in the applicable Company Order (or any other page as may replace
such page on such service) for the purpose of displaying the London interbank rates of major banks
for the Designated LIBOR Currency (if “LIBOR Moneyline Telerate” is specified in the applicable
Company Order or neither “LIBOR Reuters” nor “LIBOR Moneyline Telerate” is specified in the
applicable Company Order as the method for calculating LIBOR).

ELEVENTH DISTRICT COST OF FUNDS RATE:

     The term “Eleventh District Cost of Funds Rate” shall mean, with respect to any Eleventh
District Cost of Funds Rate Interest Determination Date, the rate equal to the monthly weighted
average cost of

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funds for the calendar month immediately preceding the month in which such Eleventh District
Cost of Funds Rate Interest Determination Date falls as set forth under the caption “11th District”
on the display on Moneyline Telerate (or any successor service) on page 7058 (“Moneyline Telerate
Page 7058”) as of 11:00 A.M., San Francisco time, on such Eleventh District Cost of Funds Rate
Interest Determination Date. If such rate does not appear on Moneyline Telerate Page 7058 on such
Eleventh District Cost of Funds Rate Interest Determination Date, then the Eleventh District Cost
of Funds Rate on such Eleventh District Cost of Funds Rate Interest Determination Date shall be the
monthly weighted average cost of funds paid by member institutions of the Eleventh Federal Home
Loan Bank District that was most recently announced (the “Index”) by the Federal Home Loan Bank of
San Francisco (the “FHLB of San Francisco”) as such cost of funds for the calendar month
immediately preceding such Eleventh District Cost of Funds Rate Interest Determination Date. If
the FHLB of San Francisco fails to announce the Index on or prior to such Eleventh District Cost of
Funds Rate Interest Determination Date for the calendar month immediately preceding such Eleventh
District Cost of Funds Rate Interest Determination Date, the Eleventh District Cost of Funds Rate
determined as of such Eleventh District Cost of Funds Rate Interest Determination Date will be the
Eleventh District Cost of Funds Rate in effect on such Eleventh District Cost of Funds Rate
Interest Determination Date.

ELEVENTH DISTRICT COST OF FUNDS RATE INTEREST DETERMINATION DATE:

     The term “Eleventh District Cost of Funds Rate Interest Determination Date” shall mean any
Interest Determination Date relating to a Floating Rate Note for which the interest rate is
determined with reference to the Eleventh District Cost of Funds Rate.

FEDERAL FUNDS RATE:

     The terms “Federal Funds Rate” shall mean, with respect to any Federal Funds Rate Interest
Determination Date, the rate on such date for United States dollar federal funds as published in
H.15(519) under the heading “Federal Funds (Effective)”, as such rate is displayed on Moneyline
Telerate (or any successor service) on page 120 (“Moneyline Telerate Page 120”), or, if such rate
does not appear on Moneyline Telerate Page 120 or is not so published by 3:00 P.M., New York City
time, on the related Calculation Date, the rate on such Federal Funds Rate Interest Determination
Date for United States dollar federal funds as published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying such rate, under the caption
“Federal Funds (Effective).” If such rate is not yet published in H.15 Daily Update or another
recognized electronic source by 3:00 P.M., New York City time, on the related Calculation Date,
then the Federal Funds Rate on such Federal Funds Rate Interest Determination Date will be
calculated by the Calculation Agent and will be the arithmetic mean of the rates for the last
transaction in overnight United States dollar federal funds arranged by three leading brokers of
federal funds transactions in The City of New York (which may include the Agents or their
affiliates) selected by the Calculation Agent prior to 9:00 A.M., New York City time, on such
Federal Funds Rate Interest Determination Date; provided, however, that if the brokers so selected
by the Calculation Agent are not quoting as mentioned in this sentence, the Federal Funds Rate
determined as of such Federal Funds Rate Interest Determination Date will be the Federal Funds Rate
in effect on such Federal Funds Rate Interest Determination Date.

FEDERAL FUNDS RATE INTEREST DETERMINATION DATE:

     The term “Federal Funds Rate Interest Determination Date” shall mean any Interest
Determination Date relating to a Floating Rate Note for which the interest rate is determined with
reference to the Federal Funds Rate.

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FINAL MATURITY DATE:

     The term “Final Maturity Date” shall mean the date beyond which the Stated Maturity of a
particular Subordinated Note may not be extended at the option of the Company.

FIXED RATE AMORTIZING NOTE:

     The term “Fixed Rate Amortizing Note” shall mean a Fixed Rate Note which is an Amortizing
Note.

FIXED RATE NOTE:

     The term “Fixed Rate Note” shall mean a Subordinated Note which bears interest at a fixed rate
(which may be zero in the case of a Zero Coupon Note) specified in the applicable Company Order.

FLOATING RATE AMORTIZING NOTE:

     The term “Floating Rate Amortizing Note” shall mean a Floating Rate Note which is an
Amortizing Note.

FLOATING RATE NOTE:

     The term “Floating Rate Note” shall mean a Subordinated Note which bears interest at a
variable rate determined by reference to an interest rate formula, and includes a CD Rate Note, a
CMT Rate Note, a Commercial Paper Rate Note, an Eleventh District Cost of Funds Rate Note, a
Federal Funds Rate Note, a LIBOR Note, a Prime Rate Note or a Treasury Rate Note.

GLOBAL NOTE:

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

H.15(519):

     The term “H.15(519)” shall mean the weekly publication “Statistical Release H.15(519),
Selected Interest Rates” or any successor publication published by the Board of Governors of the
Federal Reserve System.

H.15 DAILY UPDATE:

     The term “H.15 Daily Update” shall mean the daily update of H.15(519), available through the
world-wide-web site of the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/update, or any successor site or publication.

HIGHEST LAWFUL RATE:

     The term “Highest Lawful Rate” shall mean at the particular time in question the maximum rate
of interest which, under applicable law, the Holders are then permitted to charge on the
Subordinated Notes. If the maximum rate of interest which, under applicable law, the Holders are
permitted to charge on the Subordinated Notes shall change after the date of this Indenture
Supplement, the Highest Lawful

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Rate shall be automatically increased or decreased, as the case may be, from time to time as
of the effective time of each change in the Highest Lawful Rate without notice to the Company. For
purposes of determining the Highest Lawful Rate under the applicable law of the State of Texas, the
applicable rate ceiling shall be (a) the weekly rate ceiling described in and computed in
accordance with the provisions of Articles 5069.1D and 5069.1H.002, Title 79, Revised Civil
Statutes of Texas, 1925, as amended (“Art. 5069.1D”) or (b) if the parties subsequently contract as
allowed by applicable law, the quarterly ceiling or the annualized ceiling computed pursuant to
Art. 5069.1D; provided, however, that at any time the weekly rate ceiling, the quarterly ceiling or
the annualized ceiling shall be less than 18% per annum or more than 24% per annum, the provisions
of Section 1D.009 of said Art. 5069.1D shall control for purposes of such determination, as
applicable.

INDEX MATURITY:

     The term “Index Maturity” of a particular Floating Rate Note shall mean the period to Stated
Maturity of the instrument or obligation with respect to which the related Interest Rate Basis or
Bases of such Floating Rate Note is calculated, as specified in the applicable Company Order.

INITIAL INTEREST RATE:

     The term “Initial Interest Rate” for a particular Floating Rate Note shall mean the interest
rate specified in the applicable Company Order as in effect from the Original Issue Date of such
Floating Rate Note to its first Interest Reset Date.

INITIAL REDEMPTION DATE:

     The term “Initial Redemption Date” shall mean the earliest date, if any, on which a particular
Subordinated Note shall be redeemable at the option of the Company prior to the Stated Maturity of
such Subordinated Note, as specified in the applicable Company Order.

INTEREST ACCRUAL PERIOD:

     The term “Interest Accrual Period” for a particular Floating Rate Note shall mean the period
from the date of issue of such Floating Rate Note, or from an Interest Reset Date, if any, to its
next subsequent Interest Reset Date.

INTEREST DETERMINATION DATE:

     The term “Interest Determination Date” shall mean, with respect to the CD Rate, the CMT Rate,
the Commercial Paper Rate, the Federal Funds Rate and the Prime Rate, the second Business Day
immediately preceding the applicable Interest Reset Date; the “Interest Determination Date” with
respect to the Eleventh District Cost of Funds Rate shall be the last working day of the month
immediately preceding the applicable Interest Reset Date on which the FHLB of San Francisco
publishes the Index; and the “Interest Determination Date” with respect to LIBOR shall be the
second London Business Day immediately preceding the applicable Interest Reset Date, unless the
Designated LIBOR Currency is British pounds sterling, in which case the “Interest Determination
Date” shall be the applicable Interest Reset Date. With respect to the Treasury Rate, the
“Interest Determination Date” shall be the day in the week in which the applicable Interest Reset
Date falls on which day Treasury Bills are normally auctioned (Treasury Bills are normally sold at
an auction held on Monday of each week, unless such Monday is a legal holiday, in which case the
auction is normally held on the immediately succeeding Tuesday although such auction may be held on
the preceding Friday); provided, however, that if an auction is held on the Friday of the week
preceding the applicable Interest Reset Date, the “Interest Determination Date”

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shall be such preceding Friday; provided, further, that if the Interest Determination Date
would otherwise fall on an Interest Reset Date, then such Interest Reset Date shall be postponed to
the next succeeding Business Day. The “Interest Determination Date” pertaining to a Floating Rate
Note the interest rate of which is determined by reference to two or more Interest Rate Bases shall
be the most recent Business Day which is at least two Business Days prior to the applicable
Interest Reset Date for such Floating Rate Note on which each Interest Rate Basis is determinable.
Each Interest Rate Basis shall be determined as of such date, and the applicable interest rate
shall take effect on the applicable Interest Reset Date.

INTEREST PAYMENT DATE:

     (a) The term “Interest Payment Date” shall mean with respect to a Floating Rate Note,
including a Floating Rate Amortizing Note, such date or dates as specified in the applicable
Company Order, or if not so specified, which has an Interest Reset Date reset (1) daily, weekly or
monthly: the third Wednesday of each month or the third Wednesday of March, June, September and
December of each year, as specified in the applicable Company Order, (2) quarterly: the third
Wednesday of March, June, September and December of each year, as specified in the applicable
Company Order, (3) semiannually: the third Wednesday of the two months of each year, as specified
in the applicable Company Order; (4) annually: the third Wednesday of the month of each year, as
specified in the applicable Company Order, and, in each case, the Maturity Date of such Floating
Rate Note and, with respect to defaulted interest on such Floating Rate Note, the date established
by the Company for the payment of such defaulted interest. If any Interest Payment Date (other
than at Maturity) for any Floating Rate Note would fall on a day that is not a Business Day with
respect to such Floating Rate Note, such Interest Payment Date will be the immediately following
day that is a Business Day with respect to such Floating Rate Note, except that, in the case of a
LIBOR Note, if such Business Day with respect to such Floating Rate Note is in the next succeeding
calendar month, such Interest Payment Date shall be the immediately preceding London Business Day.

     (b) The term “Interest Payment Date” shall mean with respect to a Fixed Rate Note, including a
Fixed Rate Amortizing Note, each March 1 and September 1, or such other dates which are specified
in the applicable Company Order during the period such Fixed Rate Note is outstanding, the Maturity
Date of such Fixed Rate Note, and with respect to defaulted interest on such Fixed Rate Note, the
date established by the Company for the payment of such defaulted interest.

     (c) Notwithstanding the foregoing, the first Interest Payment Date for any Subordinated Note
originally issued between a Record Date and the next Interest Payment Date shall be the Interest
Payment Date following the next succeeding Record Date.

INTEREST RATE:

     (a) The term “Interest Rate” for a particular Floating Rate Note shall mean (1) from the date
of issue of such Floating Rate Note to the first Interest Reset Date for such Floating Rate Note,
the Initial Interest Rate, and (2) each Interest Accrual Period commencing on or after such First
Interest Reset Date, the Base Rate with reference to the Index Maturity for such Floating Rate Note
as specified in the applicable Company Order plus or minus the Spread, if any, multiplied by the
Spread Multiplier, if any; PROVIDED that in the event no Spread or Spread Multiplier is provided in
such Company Order, the Spread and Spread Multiplier shall be zero and one, respectively; PROVIDED,
FURTHER, in no event shall the Interest Rate be greater than the Maximum Interest Rate, if any, or
less than the Minimum Interest Rate, if any; PROVIDED, FURTHER, the Interest Rate in effect for the
ten days immediately prior to Maturity will be the Interest Rate in effect on the tenth day
preceding such Maturity; and PROVIDED, FURTHER, the Interest Rate will in no event be higher than
the maximum rate permitted by

11

 

Texas or other applicable law, as the same may be modified by United States federal laws of
general application.

     (b) The term “Interest Rate” for a particular Fixed Rate Note shall mean the interest rate
specified in the applicable Company Order.

INTEREST RATE BASIS:

     The term “Interest Rate Basis” shall mean with respect to (a) CD Rate Notes, the CD Rate, (b)
CMT Rate Notes, the CMT Rate, (c) Commercial Paper Rate Notes, the Commercial Paper Rate, (d)
Eleventh District Cost of Funds Note, the Eleventh District Cost of Funds Rate, (e) Federal Funds
Rate Notes, the Federal Funds Rate, (f) LIBOR Notes, LIBOR, (g) Prime Rate Notes, the Prime Rate,
(h) Treasury Rate Notes, the Treasury Rate, and (i) any other Floating Rate Note, the interest rate
formula which determines the variable rate at which such Subordinated Note bears interest.

INTEREST RESET DATE:

     The term “Interest Reset Date” shall mean, in the case of a Floating Rate Note, such date or
dates as specified in the applicable Company Order, or if not so specified, if such Floating Rate
Note is specified in the applicable Company Order as being reset (a) daily: each Business Day; (b)
weekly: the Wednesday of each week (with the exception of weekly reset Treasury Rate Notes which
reset the Tuesday of each week, except as specified below); (c) monthly: the third Wednesday of
each month (with the exception of monthly reset Floating Rate Notes as to which the Eleventh
District Cost of Funds Rate is an applicable Interest Rate Basis which will reset on the first
calendar day of the month); (d) quarterly: the third Wednesday of March, June, September and
December; (e) semiannually: the third Wednesday of the two months specified in the applicable
Company Order; and (f) annually: the third Wednesday of the month specified in the applicable
Company Order. If any Interest Reset Date for a Floating Rate Note would otherwise be a day which
is not a Business Day, such Interest Reset Date shall be postponed to the next succeeding day that
is a Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately preceding London
Business Day. If, in the case of a Treasury Rate Note, an Interest Reset Date shall fall on a day
on which the Treasury auctions Treasury Bills, then such Interest Reset Date shall instead be the
first Business Day immediately following such auction.

INTEREST RESET PERIOD:

     The term “Interest Reset Period” shall mean for:

     (a) each Floating Rate Note on which interest is reset monthly, quarterly, semiannually or
annually, and each Fixed Rate Note, the period:

     (1) beginning on and including the Original Issue Date of such Subordinated Note or the
most recent Interest Payment Date on which interest was paid on such Subordinated Note, and

     (2) ending on but not including the next Interest Payment Date or, for the last
Interest Reset Period, the Maturity Date, of such Subordinated Note;

     (b) each Floating Rate Note on which interest is reset daily or weekly, the period:

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     (1) beginning on and including the Original Issue Date of such Floating Rate Note, or
beginning on but excluding the most recent Record Date through which interest was paid on
such Subordinated Note, and

     (2) ending on and including the next Record Date or, for the last Interest Reset
Period, ending on but excluding the Maturity Date, of such Subordinated Note;

PROVIDED, HOWEVER, that the first Interest Reset Period for any Subordinated Note which has its
Original Issue date after a Record Date and prior to its next Interest Payment Date, shall begin on
and include such Original Issue Date and (i) end on and include the next Record Date for Floating
Rate Notes on which interest is reset daily or weekly, and (ii) end on but not include the second
Interest Payment Date after the Original Issue Date for all other Subordinated Notes.

ISSUE PRICE:

     The term “Issue Price” shall mean the price expressed as a percentage of the aggregate
principal amount of a Subordinated Note at which such Subordinated Note is issued.

LIBOR:

     The term “LIBOR,” unless otherwise indicated in the applicable Company Order, shall mean, with
respect to any LIBOR Interest Determination Date, the rate determined:

     (i) With respect to any LIBOR Interest Determination Date, LIBOR shall be either: (a)
if “LIBOR Moneyline Telerate” is specified in the applicable Company Order or if neither
“LIBOR Reuters” nor “LIBOR Moneyline Telerate” is specified in the applicable Company Order
as the method for calculating LIBOR, the rate for deposits in the Designated LIBOR Currency
having the Index Maturity specified in such Company Order, commencing on such Interest Reset
Date, that appears on the Designated LIBOR Page as of 11:00 A.M., London time, on such LIBOR
Interest Determination Date; or (b) if “LIBOR Reuters” is specified in the applicable
Pricing Supplement, the arithmetic mean of the offered rates (unless the Designated LIBOR
Page by its terms provides only for a single rate, in which case such single rate shall be
used) for deposits in the Designated LIBOR Currency having the Index Maturity specified in
such Pricing Supplement, commencing on the applicable Interest Reset Date, that appear (or,
if only a single rate is required as aforesaid, appears) on the Designated LIBOR Page as of
11:00 A.M., London time, on such LIBOR Interest Determination Date. If fewer than two such
offered rates so appear, or if no such rate so appears, as applicable, LIBOR on such LIBOR
Interest Determination Date shall be determined in accordance with the provisions described
in clause (ii) below.

     (ii) With respect to a LIBOR Interest Determination Date on which fewer than two
offered rates appear, or no rate appears, as the case may be, on the Designated LIBOR Page
as specified in clause (i) above, the Calculation Agent will request the principal London
offices of each of four major reference banks (which may include affiliates of the Agents)
in the London interbank market, as selected by the Calculation Agent, to provide the
Calculation Agent with its offered quotation for deposits in the Designated LIBOR Currency
for the period of the Index Maturity specified in the applicable Pricing Supplement,
commencing on the applicable Interest Reset Date, to prime banks in the London interbank
market at approximately 11:00 A.M., London time, on such LIBOR Interest Determination Date
and in a principal amount that is representative for a single transaction in the Designated
LIBOR Currency in such market at such time. If at least two such quotations are so
provided, then LIBOR on such LIBOR Interest Determination

13

 

Date shall be the arithmetic mean of such quotations. If fewer than two such quotations are
so provided, then LIBOR on such LIBOR Interest Determination Date shall be the arithmetic
mean of the rates quoted at approximately 11:00 A.M., in the applicable Principal Financial
Center, on such LIBOR Interest Determination Date by three major banks (which may include
affiliates of the Agents) in such Principal Financial Center selected by the Calculation
Agent for loans in the Designated LIBOR Currency to leading European banks, having the Index
Maturity specified in the applicable Company Order and in a principal amount that is
representative for a single transaction in the Designated LIBOR Currency in such market at
such time; provided, however, that if the banks so selected by the Calculation Agent are not
quoting as mentioned in this sentence, LIBOR determined as of such LIBOR Interest
Determination Date shall be LIBOR in effect on such LIBOR Interest Determination Date.

LIBOR INTEREST DETERMINATION DATE:

     The term “LIBOR Interest Determination Date” shall mean any Interest Determination Date
relating to a LIBOR Note.

LIBOR NOTES:

     The term “LIBOR Notes” shall mean Floating Rate Notes which are specified in the applicable
Company Order as bearing interest at an interest rate calculated with reference to LIBOR.

LONDON BUSINESS DAY:

     The term “London Business Day” shall mean any day on which dealings in the Designated LIBOR
Currency are transacted in the London interbank market.

MATURITY DATE:

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

MAXIMUM INTEREST RATE:

     The term “Maximum Interest Rate” shall mean the maximum rate of interest, if any, which may be
applicable to any Floating Rate Note during any Interest Accrual Period as specified in the
applicable Company Order.

MINIMUM INTEREST RATE:

     The term “Minimum Interest Rate” shall mean the minimum rate of interest, if any, which may be
applicable to any Floating Rate Note during any Interest Accrual Period as specified in the
applicable Company Order.

MONEY MARKET YIELD:

     The term “Money Market Yield” shall be the yield (expressed as a percentage) calculated in
accordance with the following formula:

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Money Market Yield =
[(D x 360)/(360 - (D x M))] x 100

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal, and “M” refers to the actual number of days in the applicable
Interest Reset Period.

NOTEHOLDER; HOLDER:

     The terms “Noteholder” or “Holder” shall mean any Person in whose name at the time a
particular Subordinated Note is registered in the register of the Company kept for that purpose in
accordance with the terms hereof.

OFFICERS’ CERTIFICATE:

     The term “Officers’ Certificate” when used with respect to the Company, shall mean a
certificate signed by the Chairman of the Board, the President or any Vice President and by the
Secretary or an Assistant Secretary of the Company.

OPTIONAL INTEREST RESET DATE:

     The term “Optional Interest Reset Date” shall mean each date on which the interest rate on a
Fixed Rate Reset Note or the Spread and/or Spread Multiplier of a Floating Rate Reset Note may be
reset at the option of the Company.

ORIGINAL ISSUE DATE:

     The term “Original Issue Date” shall mean for a particular Subordinated Note, or portions
thereof, the date upon which it, or such portion, was issued by the Company pursuant to this
Indenture or any indenture supplemental thereto and authenticated by the Trustee (other than in
connection with a transfer, exchange or substitution).

ORIGINAL ISSUE DISCOUNT NOTE:

     The term “Original Issue Discount Note” shall mean (i) a Subordinated Note that has a “stated
redemption price at maturity” that exceeds its “issue price”, each as defined for United States
federal income tax purposes, by at least 0.25% of its stated redemption price at maturity
multiplied by the number of complete years from the Original Issue Date to the Stated Maturity for
such Subordinated Note (or in the case of a Subordinated Note that provides for payment of any
amount other than the “qualified stated interest”, as defined for United States federal income tax
purposes, prior to maturity, the weighted average maturity of the Subordinated Note) and (ii) any
other Subordinated Note designated by the Company in the applicable Company Order as issued with
original issue discount for United States federal income tax purposes.

PERSON:

     The term “Person” shall mean any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

15

 

PRIME RATE:

     The term “Prime Rate” for a particular Floating Rate Note, unless otherwise indicated in the
applicable Company Order, shall mean, with respect to any Prime Rate Interest Determination Date,
the rate on such date as published in H.15(519) under the caption “Bank Prime Loan” or, if not
published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on such Prime
Rate Interest Determination Date as published in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying such rate, under the caption “Bank Prime
Loan.” If such rate is not yet published in H.15 Daily Update or another recognized electronic
source by 3:00 P.M., New York City time, on the related Calculation Date, then the Prime Rate shall
be the arithmetic mean of the rates of interest publicly announced by each bank that appears on the
Reuters Screen USPRIME1 Page (as hereinafter defined) as such bank’s prime rate or base lending
rate as of 11:00 A.M., New York City time, on such Prime Rate Interest Determination Date. If
fewer than four such rates appear on the Reuters Screen USPRIME1 Page for such Prime Rate Interest
Determination Date, then the Prime Rate shall be the arithmetic mean of the prime rates or base
lending rates quoted on the basis of the actual number of days in the year divided by a 360-day
year as of the close of business on such Prime Rate Interest Determination Date by four major money
center banks (which may include affiliates of the Agents) in The City of New York selected by the
Calculation Agent. If fewer than four such quotations are so provided, then the Prime Rate shall
be the arithmetic mean of four prime rates quoted on the basis of the actual number of days in the
year divided by a 360-day year as of the close of business on such Prime Rate Interest
Determination Date as furnished in The City of New York by the major money center banks, if any,
that have provided such quotations and by a reasonable number of substitute banks or trust
companies (which may include affiliates of the Agents) to obtain four such prime rate quotations,
provided such substitute banks or trust companies are organized and doing business under the laws
of the United States, or any State thereof, each having total equity capital of at least $500
million and being subject to supervision or examination by Federal or State authority, selected by
the Calculation Agent to provide such rate or rates; provided, however, that if the banks or trust
companies so selected by the Calculation Agent are not quoting as mentioned in this sentence, the
Prime Rate determined as of such Prime Rate Interest Determination Date will be the Prime Rate in
effect on such Prime Rate Interest Determination Date.

PRIME RATE NOTES:

     The term “Prime Rate Notes” shall mean Floating Rate Notes which are specified in the
applicable Company Order as bearing interest at an interest rate calculated with reference to the
Prime Rate.

PRINCIPAL AMOUNT:

     The term “principal amount” with respect to any Subordinated Note shall mean the principal
amount thereof set forth in the applicable Company Order; PROVIDED that in the case of any Original
Issue Discount Note, its principal amount as of (i) any date that the principal amount of such
Subordinated Note is to be repaid prior to its Stated Maturity, whether upon declaration of
acceleration, call for redemption, repayment at the option of the Noteholder or otherwise, or (ii)
any date that any consent, notice, request, direction, waiver or suit by the Noteholders shall be
deemed to be given, made or commenced under this Indenture, such term shall mean the Amortized Face
Amount of such Subordinated Note as of such date.

16

 

PRINCIPAL FINANCIAL CENTER:

     The term “Principal Financial Center” shall mean the capital city of the country to which the
Designated LIBOR Currency relates, except that with respect to United States dollars, Australian
dollars, Canadian dollars, euros, South African rand and Swiss francs, the “Principal Financial
Center” shall be The City of New York, Sydney, Toronto, Frankfurt, Johannesburg and Zurich,
respectively.

RECORD DATE:

     The term “Record Date” shall mean for the Interest Payment Date for the payment of interest
for an Interest Reset Period for a particular Subordinated Note, unless otherwise specified in the
applicable Company Order, (a) the day which is fifteen calendar days immediately prior to such
Interest Payment Date, whether or not such day is a Business Day, (b) the Maturity Date of such
Subordinated Note, unless such Maturity Date for a Fixed Rate Note is a March 1 or a September 1,
in which event the Record Date will be as provided in clause (a), and (c) a date which is not less
than five Business Days immediately preceding the Interest Payment Date of defaulted interest on
such Subordinated Note established by notice given by first-class mail by or on behalf of the
Company to the Holder of such Subordinated Note not less than fifteen calendar days prior to such
Interest Payment Date.

REDEMPTION DATE:

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

RESET NOTE:

     The term “Reset Note” shall mean a Fixed Rate Note, with respect to which the Company has the
option to reset the interest rate, and a Floating Rate Note, with respect to which the Company has
the option to reset the Spread and/or Spread Multiplier.

REUTERS SCREEN USPRIME1 PAGE:

     The term “Reuters Screen USPRIME1” shall mean the display designated as page “USPRIME1” on the
Reuters Monitor Money Rate Service (or such other page which may replace the USPRIME1 page on such
service) for the purpose of displaying the prime rate or base lending rate of major United States
banks.

SPREAD:

     The term “Spread” applicable to a particular Floating Rate Note shall mean the number of Basis
Points to be added to or subtracted from the related Interest Rate Basis or Bases applicable to
such Floating Rate Note as specified in the applicable Company Order, used in the calculation of
the Interest Rate for such Floating Rate Note.

SPREAD MULTIPLIER:

     The term “Spread Multiplier” applicable to a particular Floating Rate Note shall mean the
percentage of the related Interest Rate Basis or Bases applicable to such Floating Rate Note as
specified in the applicable Company Order, used in the calculation of the Interest Rate for such
Floating Rate Note.

17

 

STATED MATURITY:

     The term “Stated Maturity,” when used with respect to any Subordinated Note, shall mean the
date specified in such Subordinated Note as the date on which the principal of such Subordinated
Note is due and payable.

TREASURY:

     The term “Treasury” shall mean the United States Department of the Treasury.

TREASURY BILLS:

     The term “Treasury Bills” shall mean direct obligations of the United States.

TREASURY RATE:

     The term “Treasury Rate” for a particular Floating Rate Note, unless otherwise indicated in
the applicable Company Order, shall mean, with respect to any Treasury Rate Interest Determination
Date, the rate from the auction held on such Treasury Rate Interest Determination Date (the
“Auction”) of Treasury Bills having the Index Maturity specified in the applicable Company Order
under the caption “INVESTMENT RATE” on the display on Moneyline Telerate (or any successor service)
on page 56 (“Moneyline Telerate Page 56”) or page 57 (“Moneyline Telerate Page 57”) or, if not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the auction average
rate of such Treasury Bills (expressed as a bond equivalent on the basis of a year of 365 or 366
days, as applicable, and applied on a daily basis) as otherwise announced by the United States
Department of the Treasury. In the event that the results of the Auction of Treasury Bills having
the Index Maturity specified in the applicable Company Order are not so published by 3:00 P.M., New
York City time, on the related Calculation Date, or if no such Auction is held, then the Treasury
Rate shall be the rate (expressed as a bond equivalent on the basis of a year of 365 or 366 days,
as applicable, and applied on a daily basis) on such Treasury Rate Interest Determination Date of
Treasury Bills having the Index Maturity specified in the applicable Company Order as published in
H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Auction High” or, if not yet
published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on such
Treasury Rate Interest Determination Date of such Treasury Bills as published in H.15 Daily Update,
or such other recognized electronic source used for the purpose of displaying such rate, under the
caption “U.S. Government Securities/Treasury Bills/Auction High.” If such rate is not yet
published in H.15 Daily Update or another recognized electronic source, then the Treasury Rate
shall be calculated by the Calculation Agent and shall be a yield to maturity (expressed as a bond
equivalent on the basis of a year of 365 or 366 days, as applicable, and applied on a daily basis)
of the arithmetic mean of the secondary market bid rates, as of approximately 3:30 P.M., New York
City time, on such Treasury Rate Interest Determination Date, of three leading primary United
States government securities dealers (which may include the Agents or their affiliates) selected by
the Calculation Agent, for the issue of Treasury Bills with a remaining maturity closest to the
Index Maturity specified in the applicable Company Order; provided, however, that if the dealers so
selected by the Calculation Agent are not quoting as mentioned in this sentence, the Treasury Rate
determined as of such Treasury Rate Interest Determination Date shall be the Treasury Rate in
effect on such Treasury Rate Interest Determination Date.

18

 

TREASURY RATE NOTES:

     The term “Treasury Rate Notes” shall mean Floating Rate Notes which are specified in the
applicable Company Order as bearing interest at an interest rate calculated with reference to the
Treasury Rate.

TRUSTEE:

     The term “Trustee” shall mean JPMorgan Chase Bank, N.A. and shall also include any successor
Trustee.

YIELD TO MATURITY:

     The term “Yield to Maturity” shall mean for a particular Subordinated Note the yield to
maturity of such Subordinated Note, computed in accordance with generally accepted United States
bond yield computation principles and expressed as a percentage, specified in the applicable
Company Order.

ZERO COUPON NOTE:

     The term “Zero Coupon Note” means a Subordinated Note issued at a price representing a
discount from the principal amount payable at maturity and bearing a zero fixed rate of interest.

ARTICLE TWO

TERMS AND ISSUANCE OF THE SUBORDINATED NOTES

     Section 2.01. Issuance and Designation. A Series of Subordinated Debt Securities
which shall be designated as the Company’s “Subordinated Medium-Term Notes, Series F” shall be
executed, authenticated and delivered from time to time in accordance with the provisions of, and
shall in all respects be subject to, the terms, conditions and covenants of, the Indenture and this
Indenture Supplement (including the form of Subordinated Notes set forth in Exhibits A
and B). The aggregate principal amount of the Subordinated Notes which may be
authenticated and delivered under the Indenture Supplement (together with the aggregate principal
amount of the Company’s Senior Medium-Term Notes, Series F) shall not, except as permitted by the
provisions of the Indenture, exceed $500,000,000; provided, however, the Subordinated Notes may be
reopened, without the consent of the Holders, for the issuance of additional Subordinated Notes as
may be authorized by the Board of Directors of the Company and set forth in an Officers’
Certificate delivered to the Trustee.

     Section 2.02. Form and Other Terms of Subordinated Notes; Incorporation of Terms. (a)
Subject to subsection (b) below, the Subordinated Notes shall be in the form attached hereto as
Exhibits A and B, respectively. The Subordinated Notes shall be registered
in such names, shall be in such amounts and shall have such Original Issue Dates, Interest Rates,
Maturity Dates, Redemption Dates, if any, and such other terms as are communicated by the Company
to the Trustee in accordance with the Administrative Procedures described in the Distribution
Agreement, dated March 31, 2005, between the Company and the agents named therein. The terms of
such Subordinated Notes are herein incorporated by reference and are part of this Indenture
Supplement.

     (b) Any Subordinated Note may be issued without the consent of the Holders of any Subordinated
Notes in any such other form or forms and have such other term or terms that may be established
consistent with the Indenture and this Indenture Supplement, including, but not limited to,
Subordinated Notes denominated in a foreign currency (“Foreign Currency Subordinated Notes”), and
Subordinated Notes that initially bear interest at a fixed rate or floating rate through a certain
date and

19

 

then bear interest as established by a remarketing agent for either a period of 365 days or
less or a period of more than 365 days (“Remarketed Subordinated Notes”).

     Section 2.03. Depository for Global Securities. The Depositary for any Global
Securities of the series of which a Subordinated Note is a part shall be the Depository Trust
Company in The City of New York.

     Section 2.04. Place of Payment. The Place of Payment in respect of the Subordinated
Notes will be at the principal office or agency of the Company in Dallas, Texas or at the office or
place of business of the Trustee or its successor in trust under the Indenture, which, at the date
hereof, is located at Chase Global Trust, 2001 Bryan Street, Floor 11, Dallas, Texas 75201.

ARTICLE THREE

DEFEASANCE

     Section 3.01. Option to Effect Legal Defeasance. The Company may, at any time, with
respect to the Subordinated Notes, elect to have either Section 13.01 of the Indenture or Section
3.02 of this Indenture Supplement be applied to all outstanding Subordinated Notes upon compliance
with the conditions set forth in Article Thirteen of the Indenture and below in this Article Three.

     Section 3.02. Legal Defeasance. Upon the Company’s exercise under Section 3.01 of
this Indenture Supplement of the option applicable to Section 13.01 of the Indenture, the Company
may terminate its obligations under the Subordinated Notes, the Indenture and this Indenture
Supplement by complying with the terms and conditions of Section 13.01 of the Indenture; provided,
however, that the Opinion of Counsel delivered to the Trustee will also state that either (A) the
Company has received from, or there has been published by, the Internal Revenue Service, a ruling
or (B) since the date hereof, there has been a change in the applicable federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the
holders of the outstanding Subordinated Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such
defeasance had not occurred.

ARTICLE FOUR

MISCELLANEOUS

     Section 4.01. Ratification of Indenture. As supplemented by this Indenture
Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so
supplemented by this Indenture Supplement shall be read, taken and construed as one and the same
instrument.

     Section 4.02. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required to be included in this
Indenture Supplement by any of the provisions of the Trust Indenture Act, such required provisions
shall control.

     Section 4.03. Effect of Headings. The article and section headings herein are
included for convenience only and shall not affect the construction hereof.

     Section 4.04. Counterparts. This Indenture Supplement may be executed in any number
of counterparts, each of which shall be an original; but such counterparts shall together
constitute but one and the same instrument.

20

 

     Section 4.05. Severability. In case any provision of this Indenture Supplement or in
the Subordinated Notes shall be found invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     Section 4.06. Benefits of Indenture Supplement. Nothing in this Indenture Supplement
or in the Subordinated Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right,
remedy or claim under this Indenture Supplement.

     Section 4.07. Acceptance of Trusts. JPMorgan Chase Bank, N.A. hereby accepts the
trusts in this Indenture Supplement declared and provided, upon the terms and conditions herein and
in the Indenture set forth.

     Section 4.08. Governing Law. This Indenture Supplement and each Subordinated Note
issued hereunder shall be deemed to be a contract made under the laws of the State of Texas, and
for all purposes shall be construed in accordance with the laws of said State.

     Section 4.09. Compliance with Law. It is the intent of the Company and the Holders of
the Subordinated Notes to conform to and contract in strict compliance with applicable usury law
from time to time in effect. All agreements between the Holders of the Subordinated Notes and the
Company are hereby limited by the provisions of this Section 4.09 which shall override and control
all such agreements, whether now existing or hereafter arising and whether written or oral. In no
way, nor in any event or contingency (including but not limited to prepayment, default, demand for
payment, or acceleration of the maturity of any obligation), shall the interest taken, reserved,
contracted for, charged or received under this Indenture Supplement or the Subordinated Notes or
otherwise, exceed the Highest Lawful Rate. If, from any possible construction of any document,
interest would otherwise be payable in excess of the Highest Lawful Rate, any such construction
shall be subject to the provisions of this Section 4.09 and such document shall be automatically
reformed and the interest payable shall be automatically reduced to the Highest Lawful Rate,
without the necessity of execution of any amendment or new document. If the Holders shall ever
receive anything of value which is characterized as interest under applicable law and which would
apart from this provision be in excess of the Highest Lawful Rate, an amount equal to the amount
which would have been excessive interest shall, without penalty, be applied to the reduction of the
principal amount owing on the Subordinated Notes in the inverse order of its maturity and not to
the payment of interest, or refunded to the Company if and to the extent such amount which would
have been excessive exceeds such unpaid principal. The right to accelerate the maturity of the
Subordinated Notes does not include the right to accelerate any interest which has not otherwise
accrued on the date of such acceleration, and the Holders do not intend to charge or receive any
unearned interest in the event of acceleration. All interest paid or agreed to be paid to the
Holders shall, to the extent permitted by applicable law, be amortized, prorated, allocated and
spread throughout the full stated term (including any renewal or extension) of the Subordinated
Notes so that the amount of interest on account of the Subordinated Notes does not exceed the
Highest Lawful Rate.

[Remainder of page intentionally left blank.]

21

 

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

	 	 	 	 	 
	 	 	CENTEX CORPORATION
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	Attest:

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Gail M. Peck
	

	 	 	 	Vice President and Treasurer
	 
	 	 	 	 
	 
	 	 	 	 
	Paul Johnston

Vice President, Corporate Counsel and

Assistant Secretary
	 	 	 	 
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as Trustee
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	Attest:

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Carol Logan
	

	 	 	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 

22

 

	 	 	 
	STATE OF TEXAS

	 	§
	

	 	§
	COUNTY OF DALLAS

	 	§

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

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of March, 2005.

	 	 	 
	

	 	 
	

	 	Notary Public in and for the State of Texas
	 
	 	 
	My commission expires:
	 	 
	

	 	 
	 

	 	Printed Name of Notary Public
	 
	 	 
	 
	 	 

	 	 	 
	STATE OF TEXAS

	 	§
	

	 	§
	COUNTY OF HARRIS

	 	§

     BEFORE ME, the undersigned authority, a Notary Public in and for said state, on this day
personally appeared Carol Logan and _________, known to me to be the persons and officers
whose names are subscribed to the foregoing instrument and acknowledged to me that the same was the
act of the said JPMORGAN CHASE BANK, N.A., a national banking association, and that they executed
the same as the act of said national banking association for the purposes and consideration therein
expressed, and in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of March, 2005.

	 	 	 
	

	 	 
	

	 	Notary Public in and for the State
of Texas
 
	My commission expires:
	 	 
	

	 	 
	

	 	Printed Name of Notary Public
	 
	 	 
	 
	 	 

23

 

EXHIBIT A

Global Subordinated Fixed Rate Note

	 	 	 
	REGISTERED
	 	PRINCIPAL AMOUNT
	NO.                    
	 	         $                                 

CENTEX CORPORATION

Subordinated Medium-Term Note, Series F

Fixed Rate

     Unless this Subordinated Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation, 55 Water Street, New York, New York (“DTC”), to Centex
Corporation, a Nevada corporation (herein called the “Company,” which term includes any successor
person under the Indenture referred to on the reverse hereof), or its agent for registration of
transfer, exchange or payment, and any Subordinated Note issued is registered in the name of Cede &
Co., or in such other name as is requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Subordinated Notes in certificated
form, this Subordinated Note may not be transferred except as a whole by DTC to a nominee of DTC or
by a nominee of DTC to DTC or another nominee of DTC or by DTC or any such nominee to a successor
of DTC or a nominee of such successor of DTC.

     The following summary of terms is subject to the provisions set forth below:

	 	 	 	 	 	 	 
	CUSIP No.:

	 	 	 	OPTION TO ELECT REPAYMENT:
	 	o Yes o No
	 
	 	 	 	 	 	 
	ORIGINAL ISSUE DATE(S):

	 	 	 	OPTIONAL REPAYMENT DATE:
	 	o Yes o No
	 
	 	 	 	 	 	 
	PRINCIPAL AMOUNT:

	 	 	 	CURRENCY:	 	 
	 
	 	 	 	 	 	 
	STATED MATURITY DATE:

	 	 	 	OPTIONAL INTEREST RESET:
	 	o Yes o No
	 
	 	 	 	 	 	 
	INTEREST RATE:

	 	 	 	OPTIONAL INTEREST RESET	 	 
	

	 	 	 	DATES:	 	 
	 
	 	 	 	 	 	 
	INTEREST PAYMENT DATES:

	 	 	 	ORIGINAL ISSUE DISCOUNT	 	 
	

	 	 	 	NOTE:
	 	o Yes o No
	 
	 	 	 	 	 	 
	

	 	 	 	ISSUE PRICE (percentage of	 	 
	RECORD DATES:

	 	 	 	principal):	 	 
	 
	 	 	 	 	 	 
	OPTIONAL REDEMPTION:

	 	o Yes o No
	 	YIELD TO MATURITY:	 	 
	 
	 	 	 	 	 	 
	INITIAL REDEMPTION DATE:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	AMORTIZING NOTE:

	 	o Yes o No
	 	ANNEX ATTACHED (and incorporated by

reference herein):
	 	o Yes o No

1

 

	 	 	 
	AUTHORIZED DENOMINATION:

	 	OTHER/ADDITIONAL
	

	 	PROVISIONS:

	 	   	o   $1,000 and integral multiples thereof

o   Other:

     The Company, for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal sum specified above, in such coin or currency of the                                          as at the time
of payment is legal tender for payment of public and private debts, on the Maturity Date specified
above and to pay interest thereon, in such coin or currency, from and including the Original Issue
Date (or if this Global Subordinated Note has two or more Original Issue Dates, interest shall,
beginning on each such Original Issue Date, begin to accrue for that part of the principal amount
to which such Original Issue Date is applicable) specified above, or from and including the most
recent Interest Payment Date specified above to which interest has been paid or duly provided for,
as the case may be. Interest shall be paid in arrears semiannually on each Interest Payment Date
in each year commencing on (a) the first such Interest Payment Date next succeeding the earliest
Original Issue Date or Dates, or (b) if such Original Issue Date is after a Record Date and prior
to the first Interest Payment Date, on the second Interest Payment Date, at a rate per annum from
time to time equal to the lesser of (i) the Highest Lawful Rate (as defined in the Indenture) or
(ii) the per annum Interest Rate set forth above until Maturity and the principal hereof is paid or
made available for payment. The interest so payable and punctually paid or duly provided for on
any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name
this Subordinated Note is registered at the close of business on the Record Date specified above
next preceding such Interest Payment Date; PROVIDED, HOWEVER, that if an Original Issue Date falls
between a Record Date and the next Interest Payment Date, the first payment of interest with
respect to such Original Issue Date will be made on the second Interest Payment Date subsequent to
such Original Issue Date to the Person in whose name this Subordinated Note is registered at the
close of business on the Record Date for such second Interest Payment Date; and PROVIDED, FURTHER,
that interest payable on the Maturity Date or, if applicable, upon redemption, shall be payable to
the Person to whom principal shall be payable. Except as otherwise provided in the Indenture, any
such interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Record Date and shall be paid to the Person in whose name this Subordinated Note is
registered at the close of business on a Record Date for the payment of such defaulted interest to
be fixed by the Company, notice whereof shall be given to Subordinated Noteholders not less than
fifteen calendar days prior to such Record Date. Payment of the principal of and any premium and
interest on this Subordinated Note shall be made on or before 10:30 A.M., New York City time or
such other time as shall be agreed upon between the Trustee and the Depositary, on the day on which
such payment is due, by wire transfer into the account specified by the Depositary; PROVIDED,
HOWEVER, that as a condition to the payment at the Maturity Date of any part of the principal and
any applicable premium of this Global Subordinated Note, the Depositary shall surrender, or cause
to be surrendered, this Global Subordinated Note to the Trustee. The Company will pay any
administrative costs imposed by banks in connection with making payments by wire transfer, but not
any tax, assessment or governmental charge imposed on the Holder of this Subordinated Note.

     Under certain circumstances, this Global Subordinated Note is exchangeable in whole or from
time to time in part for a definitive individual Subordinated Note or Subordinated Notes, with the
same Original Issue Date or Dates, Maturity Date, Interest Rate and redemption and other provisions
as provided herein or in the Indenture.

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

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

2

 

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

3

 

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

	 	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	 	 	CENTEX CORPORATION
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 
	

	 	 	Gail M. Peck
	

	 	 	Vice President and Treasurer

	 	 	 
	ATTEST:

	 	 
	 
	 	 
	 
	 	 
	Paul Johnston
	 	 
	Vice President, Corporate Counsel and Assistant Secretary
	 	 
	 
	 	 
	TRUSTEE’S CERTIFICATE
	 	 
	     OF AUTHENTICATION
	 	 
	 
	 	 
	This is one of the Subordinated Notes referred
	 	 
	to in the within-mentioned Indenture.
	 	 
	 
	 	 
	JPMORGAN CHASE BANK, N.A., as Trustee
	 	 
	 
	 	 

	 	 	 	 	 
	By:

	 	 	 	 
	

	 	 	 
	

	Authorized Signatory	 	 

4

 

[REVERSE OF GLOBAL SUBORDINATED FIXED RATE NOTE]

CENTEX CORPORATION

SUBORDINATED FIXED RATE MEDIUM-TERM NOTE, SERIES F

     This Global Subordinated Note is one of, and a global security which represents Subordinated
Notes which are part of, a duly authorized issue of Subordinated Debt Securities of the Company
(herein called the “Subordinated Notes”), issued and to be issued in one or more Series under an
Indenture dated as of March 12, 1987 (herein, together with all indentures supplemental thereto,
called the “Subordinated Indenture”) between the Company and JPMorgan Chase Bank, N.A., as Trustee
(formerly, Texas Commerce Bank National Association) (herein called the “Trustee,” which term
includes any successor Trustee under the Subordinated Indenture), to which Subordinated Indenture
and all indentures supplemental thereto (including the Indenture Supplement dated as of March 31,
2005 which authorizes the Subordinated Notes) reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Subordinated Noteholders, and of the terms upon which the Subordinated Notes are,
and are to be, authenticated and delivered. All terms used in this Subordinated Note which are
defined in the Subordinated Indenture or in any indenture supplemental thereto but are not defined
in this Subordinated Note shall have the meanings assigned to them in the Subordinated Indenture or
in any indenture supplemental thereto.

     Each Subordinated Note shall be dated the date of its authentication by the Trustee. Each
Subordinated Note shall also bear an Original Issue Date or Dates which with respect to this Global
Subordinated Note (or any portion thereof) shall mean the date or dates of the original issue of
the Subordinated Notes represented hereby as specified on the face hereof, and such Original Issue
Date or Dates shall remain the same for all Subordinated Notes subsequently issued upon transfer,
exchange or substitution of such original Subordinated Note (or such subsequently issued
Subordinated Notes) regardless of their dates of authentication. The Subordinated Notes may bear
different dates, mature at different times, bear interest at different rates, be subject to
different redemption provisions, if any, and may otherwise vary, all as provided in the
Subordinated Indenture.

     The indebtedness evidenced by the Subordinated Notes is, to the extent and in the manner
provided in the Subordinated Indenture and Indenture Supplement, subordinated and subject in right
of payment to the prior payment in full of all Senior Indebtedness of the Company. As provided in
the Subordinated Indenture, each holder of this Subordinated Note, by his acceptance hereof, agrees
to and shall be bound by all the provisions of the Subordinated Indenture relating to such
subordination and authorizes the Trustee to take such action in his behalf as may be necessary or
appropriate to effectuate the subordination as provided in the Subordinated Indenture and appoints
the Trustee his attorney-in-fact for any and all such purposes.

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

     Unless otherwise specified on the face hereof or the Company Order, if this Subordinated Note
is an Amortizing Note, payments with respect to this Subordinated Note will be applied first to
interest due and payable hereon and then to the reduction of the unpaid principal amount hereof.
If this Subordinated Note is an Amortizing Note, a table setting forth the schedule of dates and
amounts of payments of principal of and interest on this Subordinated Note or the formula for the
amortization of principal and/or interest is set forth in an annex attached to this Subordinated
Note.

5

 

     All percentages resulting from any calculation with respect to this Subordinated Note will be
rounded, if necessary, to the nearest one hundred-thousandth of a percentage point (with five
one-millionths of a percentage point rounded upward) and all dollar or foreign or composite
currency amounts used in or resulting from any such calculation with respect to this Subordinated
Note will be rounded, in the case of United States dollars, to the nearest cent or, in the case of
a foreign or composite currency, to the nearest unit (with one-half cent or unit being rounded
upward).

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

     This Subordinated Note will be redeemable at the option of the Company prior to its Stated
Maturity Date only if an Initial Redemption Date is specified on the face hereof. If so specified,
this Subordinated Note will be subject to redemption at the option of the Company on any date on
and after such Initial Redemption Date in whole or from time to time in part in increments of
$1,000 or any other integral multiple thereof, at the redemption prices specified in an annex
attached to this Subordinated Note, plus accrued and unpaid interest to but excluding the date of
redemption, but payments due with respect to this Subordinated Note prior to the date of redemption
will be payable to the Holder of this Subordinated Note of record at the close of business on the
relevant Record Date specified on the face hereof, all as provided in the Subordinated Indenture.
Notice of such redemption shall be given by mailing by first-class mail a notice of such redemption
not less than 20 nor more than 60 calendar days prior to the date fixed for redemption to the
Holder of this Subordinated Note, in accordance with the provisions of the Subordinated Indenture.
In the event of redemption of this Subordinated Note in part only, this Subordinated Note will be
canceled and a new Subordinated Note or Subordinated Notes representing the unredeemed portion
hereof will be issued in the name of the Holder hereof. This Subordinated Note is not subject to a
sinking fund unless otherwise specified in an annex attached hereto.

     If so specified on the face of this Subordinated Note, (i) this Subordinated Note shall be
subject to repayment, in whole or in part, prior to the Stated Maturity Date at the option of the
Holder on a certain date or dates and at a certain price or prices, plus accrued and unpaid
interest to but excluding the date of payment; and/or (ii) the Interest Rate specified on the face
hereof may be reset by the Company in accordance with a formula or otherwise on the Optional
Interest Reset Date or Dates specified on the face hereof.

     Notwithstanding anything herein to the contrary, if this Subordinated Note is an Original
Issue Discount Note as specified on the face hereof, the amount payable in the event the principal
amount hereof is declared to be due and payable immediately by reason of an Event of Default or in
the event of redemption or repayment hereof prior to the Stated Maturity hereof, in lieu of the
principal amount due at the Stated Maturity hereof, shall be the Amortized Face Amount of this
Subordinated Note as of the date of declaration, redemption or repayment, as the case may be. The
“Amortized Face Amount” of this Subordinated Note shall be the amount equal to the principal amount
of this Subordinated Note multiplied by the Issue Price specified on the face hereof plus (b) the
portion of the difference between the dollar amount thus obtained and the principal amount hereof
that has accreted at the Yield to Maturity specified on the face hereof (computed in accordance
with generally accepted United States bond yield computation principles) to such date of
declaration, redemption or repayment but in no event shall the Amortized Face Amount of this
Subordinated Note exceed the principal amount stated on the face hereof.

     In case an Event of Default shall have occurred and be continuing with respect to the
Subordinated Notes, the principal hereof may be declared, and upon such declaration shall become,
due and payable, in the manner, with the effect and subject to the conditions provided in the
Subordinated Indenture. The Subordinated Indenture provides that in certain events such
declaration and its consequences may be waived by the Holders of a majority in aggregate principal
amount of the Subordinated Notes then outstanding. An Event of Default with respect to the
Subordinated Debt Security of any other Series issued under the Subordinated Indenture, including
the failure to

6

 

make any payment of principal or interest with respect thereto when and as due, will not be an
Event of Default with respect to the Subordinated Notes.

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

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

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

     If at any time the Depositary for this Global Note notifies the Company that it is unwilling
or unable to continue as Depositary for this Global Note or if at any time the Depositary for this
Global Note shall no longer be registered as a clearing agency under the Securities Exchange Act of
1934, as amended, or any successor statute or regulation, the Company may appoint a successor
Depositary with respect to this Global Note. If (A) a successor Depositary for this Global Note is
not appointed by the Company within 60 calendar days after the Company receives such notice or
becomes aware of such ineligibility, or (B) any Notes are represented by this Global Note at a time
when an Event of Default with respect to the Notes shall have occurred and be continuing, then in
each case the Company’s election to issue this Note in global form shall no longer be effective
with respect to this Global Subordinated Note and the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of individual Subordinated Notes in
exchange for this Global Subordinated Note, shall authenticate and make available for delivery,
individual Subordinated Notes of like tenor and terms in definitive

7

 

form in an aggregate principal amount equal to the principal amount of this Global
Subordinated Note in exchange for this Global Subordinated Note.

     If agreed by the Company and the Depositary with respect to Subordinated Notes issued in the
form of this Global Subordinated Note, the Depositary for such Global Subordinated Note shall
surrender this Global Subordinated Note in exchange in whole or in part for individual Subordinated
Notes of like tenor and terms in definitive form on such terms as are acceptable to the Company and
such Depositary. Thereupon the Company shall execute, and the Trustee shall authenticate and make
available for delivery, without a service charge, (1) to each Person specified by such Depositary,
a new Subordinated Note or Subordinated Notes of like tenor and terms, and of any authorized
denominations as requested by such Person in aggregate principal amount equal to and in exchange
for the beneficial interest of such Person in this Global Subordinated Note, and (2) to such
Depositary a new Global Subordinated Note of like tenor and terms and in a denomination equal to
the difference, if any, between the principal amount of this Global Subordinated Note and the
aggregate principal amount of Subordinated Notes delivered to Holders thereof.

     Under certain circumstances specified in the Subordinated Indenture, the Depositary may be
required to surrender any two or more Global Subordinated Notes which have identical terms (but
which may have differing Original Issue Dates) to the Trustee, and the Company shall execute and
the Trustee shall authenticate and deliver to, or at the direction of, the Depositary a Global
Subordinated Note in principal amount equal to the aggregate principal amount of, and with all
terms identical to, the Global Subordinated Notes surrendered to the Trustee, and such new Global
Subordinated Note shall indicate each applicable Original Issue Date and the principal amount
applicable to each such Original Issue Date.

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

     The Subordinated Indenture contains provisions for the satisfaction and discharge of the
Subordinated Indenture upon compliance by the Company with certain conditions specified therein,
which provisions apply to this Subordinated Note.

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

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

     It is the intent of the Company and the Holders of this Subordinated Note to conform to and
contract in strict compliance with applicable usury law from time to time in effect. All
agreements between the Holders of this Subordinated Note and the Company are hereby limited by the
provisions of this paragraph which shall override and control all such agreements, whether now
existing or hereafter arising and whether written or oral. In no way, nor in any event or
contingency (including but not limited to prepayment, default, demand for payment, or acceleration
of the maturity of any obligation), shall the interest taken, reserved, contracted for, charged or
received under this

8

 

Subordinated Note or otherwise exceed the Highest Lawful Rate. If, from any possible
construction of any document, interest would otherwise be payable in excess of the Highest Lawful
Rate, any such construction shall be subject to the provisions of this paragraph and such document
shall be automatically reformed and the interest payable shall be automatically reduced to the
Highest Lawful Rate, without the necessity of execution of any amendment or new document. If the
Holders of this Subordinated Note shall ever receive anything of value which is characterized as
interest under applicable law and which would apart from this provision be in excess of the Highest
Lawful Rate, an amount equal to the amount which would have been excessive interest shall, without
penalty, be applied to the reduction of the principal amount owing on this Subordinated Note in the
inverse order of its maturity and not to the payment of interest, or refunded to the Company if and
to the extent such amount which would have been excessive exceeds such unpaid principal. The right
to accelerate the maturity of this Subordinated Note does not include the right to accelerate any
interest which has not otherwise accrued on the date of such acceleration, and the Holders of this
Subordinated Note do not intend to charge or receive any unearned interest in the event of
acceleration. All interest paid or agreed to be paid to the Holders of this Subordinated Note
shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full stated term (including any renewal or extension) of this Subordinated Note so
that the amount of interest on account of this Subordinated Note does not exceed the Highest Lawful
Rate.

9

 

OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably request(s) and instruct(s) the Company to repay this
Subordinated Note (or portion hereof specified below) pursuant to its terms at a price equal to
100% of the principal amount to be repaid, together with unpaid interest accrued hereon to the
Repayment Date, to the undersigned at                                                                                                                                                                 

                                        .

     If less than the entire principal amount of this Subordinated Note is to be repaid, specify
the portion hereof (which shall be increments of                     ) which the holder elects to have
repaid and specify the denomination or denominations (which shall be an authorized denomination)
not less than                      of the Subordinated Notes to be issued to the Holder for the portion of
this Subordinated Note not being repaid (in the absence of any such specification, one such
Subordinated Note will be issued for the portion not to be repaid).

Principal Amount

to be Repaid:

	 	 	 
	 

	 	$                     

CUSIP Number or other identifier:

	 	 	 	 	 
	Date:
	 	 	 	 
	

	 
	 	 
	

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

Notice: The signature(s) on this Option to Elect Repayment must correspond with the name(s) as
written upon the face of this Subordinated Note in every particular, without alteration or
enlargement or any change whatsoever.

10

 

ABBREVIATIONS

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

	 	 	 	 	 
	TEN COM -

	 	as tenants in common
	 	UNIF GIFT
	 
	 	 	 	 
	TEN ENT -

	 	as tenants by the entireties
	 	MIN ACT —                     Custodian                    
	

	 	 	 	                              (Cust)                         (Minor)
	JT TEN -

	 	as joint tenants with right
	 	                       Under Uniform Gifts to Minors Act
	

	 	of survivorship and not as tenants
	 	                                                                                   
	

	 	in common
	 	 
	

	 	
	 	                                                  State

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

                                                            

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

	 	 	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

	 	 	 	 
	                IDENTIFYING NUMBER OF ASSIGNEE
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

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

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

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

11

 

EXHIBIT B

Global Subordinated Floating Rate Note

	 	 	 	 	 
	REGISTERED

	 	PRINCIPAL AMOUNT

	NO. ________

	 	 	 	$

CENTEX CORPORATION

Subordinated Medium-Term Note, Series F

Floating Rate

     Unless this Subordinated Note is presented by an authorized representative of The Depository Trust
Company, a New York corporation, 55 Water Street, New York, New York (“DTC”), to Centex
Corporation, a Nevada corporation (herein called the “Company,” which term includes any successor
person under the Indenture referred to on the reverse hereof) or its agent for registration of
transfer, exchange or payment, and any Subordinated Note issued is registered in the name of Cede & Co.,
or in such other name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
since the registered owner hereof, Cede & Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Subordinated Notes in certificated form,
this Subordinated Note may not be transferred except as a whole by DTC to a nominee of DTC or by a
nominee of DTC to DTC or another nominee of DTC or by DTC or any such nominee to a successor of DTC
or a nominee of such successor of DTC.

     The following summary of terms is subject to the provisions set forth below:

	 	 	 	 	 
	CUSIP No.:
	 	CURRENCY:	 	 
	 
	 	 	 	 
	ORIGINAL ISSUE DATE(S):
	 	OPTIONAL REDEMPTION:	 	o
Yes   o No
	 
	 	 	 	 
	PRINCIPAL AMOUNT:
	 	INITIAL REDEMPTION DATE:	 	 
	 
	 	 	 	 
	STATED MATURITY DATE:
	 	AMORTIZING NOTE:	 	o Yes   o No
	 
	 	 	 	 
	INITIAL INTEREST RATE:
	 	CALCULATION AGENT:	 	 
	 
	 	 	 	 
	INTEREST RATE BASIS OR BASES
	 	OPTION TO ELECT REPAYMENT	 	o Yes   o No
	(including any Designated LIBOR Page):
	 	 	 	 
	 
	 	 	 	 
	INDEX MATURITY:
	 	AUTHORIZED DENOMINATIONS:	 	 
	 
	 	o $1,000 and integral multiples thereof
	 	 
	INTEREST DETERMINATION DATES:
	 	o Other:
	 	 
	 
	 	 	 	 
	INTEREST RESET PERIOD:
	 	OPTIONAL REPAYMENT DATE:	 	 
	 
	 	 	 	 
	INTEREST RESET DATES:
	 	OPTIONAL INTEREST RESET:	 	o Yes   o No
	 
	 	 	 	 
	SPREAD:
	 	OPTIONAL INTEREST RESET DATES:	 	 
	 
	 	 	 	 
	SPREAD MULTIPLIER:
	 	ORIGINAL ISSUE DISCOUNT NOTE:	 	o Yes   o No
	 
	 	 	 	 
	MAXIMUM INTEREST RATE:
	 	ISSUE PRICE (percentage of principal):	 	 
	 
	 	 	 	 
	MINIMUM INTEREST RATE:
	 	YIELD TO MATURITY:	 	 

1

 

	 	 	 	 	 
	INTEREST PAYMENT DATES:
	 	ANNEX ATTACHED (and incorporated by reference  herein):	 	o Yes o No
	 
	 	 	 	 
	RECORD DATES:
	 	OTHER/ADDITIONAL PROVISIONS	 	 
	 
	 	 	 	 
	IF LIBOR:
	 	IF CMT RATE:	 	 
	o LIBOR Reuters Page:
	 	Designated CMT Moneyline Telerate Page:	 	 
	o LIBOR Moneyline Telerate Page:
	 	IF Moneyline Telerate Page 7052:	 	 
	DESIGNATED LIBOR CURRENCY:
	 	o Weekly Average
	 	 
	 
	 	o Monthly Average
	 	 
	 
	 	Designated CMT Maturity Index:	 	 
	 
	 	 	 	 
	INTEREST CATEGORY:
	 	DAY COUNT CONVENTION	 	 
	o Regular Floating Rate Note
	 	o 30/360 for the period from
	 	 
	o Floating Rate/Fixed Rate Note
	 	to	 	 
	Fixed Rate Commencement
	 	o Actual/360 for the period from
	 	 
	Date:
	 	to	 	 
	Fixed Interest Rate:      %
	 	o Actual/Actual for the period from
	 	 
	o Inverse Floating Rate Note
	 	to	 	 
	Fixed Interest Rate:      %
	 	Applicable Interest Rate Basis:
	 	 

     The Company, for value received, hereby promises to pay to Cede & Co. or registered assigns,
the principal sum specified above, in such coin or currency of the __________________as at the
time of payment is legal tender for payment of public and private debts, on the Stated Maturity
Date specified above and to pay interest thereon, in such coin or currency, from and including the
Original Issue Date (or if this Global Subordinated Note has two or more Original Issue Dates, interest
shall, beginning on each such Original Issue Date, begin to accrue for that part of the principal
amount to which such Original Issue Date is applicable) specified above, or from and including the
most recent Interest Payment Date specified above to which interest has been paid or duly provided
for, as the case may be. Interest shall be paid in arrears monthly, quarterly, semiannually or
annually as specified above under Interest Payment Dates, on each Interest Payment Date in each
year and at Maturity, commencing on (a) the first such Interest Payment Date next succeeding the
earliest Original Issue Date or Dates, or (b) if such Original Issue Date is after a Record Date
and prior to the first Interest Payment Date, on the second Interest Payment Date, at a rate per
annum from time to time equal to the lesser of (i) the Highest Lawful Rate (as defined in the
Indenture) or (ii) the Initial Interest Rate specified above until the initial Interest Reset Date
specified above, and thereafter at a rate per annum determined in accordance with the provisions in
the Indenture for calculating the Interest Rate for Subordinated Notes having the Interest Rate Basis
specified above, until Maturity and the principal hereof is paid or made available for payment.
The interest so payable and punctually paid or duly provided for on any Interest Payment Date will,
as provided in the Indenture, be paid to the Person in whose name this Subordinated Note is registered at
the close of business on the Record Date specified above next preceding such Interest Payment Date;
PROVIDED, HOWEVER, that if an Original Issue Date falls between a Record Date and the next Interest
Payment Date, the first payment of interest with respect to such Original Issue Date will be made
on the second Interest Payment Date subsequent to such Original Issue Date to the Person in whose
name this Subordinated Note is registered at the close of business on the Record Date for such second
Interest Payment Date; and PROVIDED, FURTHER, that interest payable on the Maturity Date or, if
applicable, upon redemption, shall be payable to the Person to whom principal shall be payable.
Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Record Date and shall be paid
to the Person in whose name this Subordinated Note is registered at the close of business on a Record
Date for the payment of such defaulted interest to be fixed by the Company, notice whereof shall be
given to Subordinated Noteholders not less than fifteen calendar days prior to such Record Date. Payment
of the principal of and any premium and interest on this Subordinated Note shall be made on or before
10:30 A.M., New York City time or such other time as shall be agreed upon between the Trustee and
the Depositary, on the day on which such payment is due, by wire transfer into the account
specified by the Depositary; PROVIDED, HOWEVER, that as a

2

 

condition to the payment at the Maturity
Date of any part of the principal and any applicable premium of this Global Subordinated Note, the
Depositary shall surrender, or cause to be surrendered, this Global Subordinated Note to the Trustee.
The Company will pay any administrative costs
imposed by banks in connection with making payments by wire transfer, but not any tax, assessment
or governmental charge imposed on the Holder of this Subordinated Note.

     Under certain circumstances, this Global Subordinated Note is exchangeable in whole or from time to
time in part for a definitive individual Subordinated Note or Subordinated Notes, with the same Original Issue
Date or Dates, Maturity Date, Interest Rate Basis or Bases and redemption and other provisions as
provided herein or in the Indenture.

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

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

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

3

 

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

Dated:

	 	 	 	 	 
	 	CENTEX CORPORATION	 	 	 
	 
	        [SEAL]	 	 	 	 
	 
	 	By:  	 	 
	 	 	Gail M. Peck 	 
	 	 	Vice President and Treasurer 	 
	 

	 	 	 
	ATTEST:
	 
	 
	
Paul Johnston

Vice President, Corporate Counsel and Assistant Secretary

	 	 

TRUSTEE’S CERTIFICATE
     OF AUTHENTICATION

This is one of the
Subordinated Notes referred

to in the within-mentioned Indenture.

JPMORGAN CHASE BANK, N.A., as Trustee

	 	 	 	 	 
	 	 	 
	By:  	

 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 
	 

4

 

[REVERSE OF GLOBAL SUBORDINATED FLOATING RATE NOTE]

CENTEX CORPORATION

SUBORDINATED FLOATING RATE MEDIUM-TERM NOTE, SERIES F

     This Global Subordinated Note is one of, and a global security which represents Subordinated
Notes which are part of, a duly authorized issue of Subordinated Debt Securities of the Company
(herein called the “Subordinated Notes”), issued and to be issued in one or more Series under an
Indenture dated as of March 12, 1987 (herein, together with all indentures supplemental thereto,
called the “Subordinated Indenture”) between the Company and JPMorgan Chase Bank, N.A., as Trustee
(formerly, Texas Commerce Bank National Association) (herein called the “Trustee,” which term
includes any successor Trustee under the Subordinated Indenture), to which Subordinated Indenture
and all indentures supplemental thereto (including the Indenture Supplement dated as of March 31,
2005 which authorizes the Subordinated Notes) reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Subordinated Noteholders, and of the terms upon which the Subordinated Notes are,
and are to be, authenticated and delivered. All terms used in this Subordinated Note which are
defined in the Subordinated Indenture or in any indenture supplemental thereto but are not defined
in this Subordinated Note shall have the meanings assigned to them in the Subordinated Indenture or
in any indenture supplemental thereto.

     Each Subordinated Note shall be dated the date of its authentication by the Trustee. Each
Subordinated Note shall also bear an Original Issue Date or Dates which with respect to this Global
Subordinated Note (or any portion thereof) shall mean the date or dates of the original issue of
the Subordinated Notes represented hereby as specified on the face hereof, and such Original Issue
Date or Dates shall remain the same for all Subordinated Notes subsequently issued upon transfer,
exchange or substitution of such original Subordinated Note (or such subsequently issued
Subordinated Notes) regardless of their dates of authentication. The Subordinated Notes may bear
different dates, mature at different times, bear interest at different rates, be subject to
different redemption provisions, if any, and may otherwise vary, all as provided in the
Subordinated Indenture.

     The indebtedness evidenced by the Subordinated Notes is, to the extent and in the manner
provided in the Subordinated Indenture, subordinated and subject in right of payment to the prior
payment in full of all Senior Indebtedness of the Company. As provided in the Subordinated
Indenture, each holder of this Subordinated Note, by his acceptance hereof, agrees to and shall be
bound by all the provisions of the Subordinated Indenture relating to such subordination and
authorizes the Trustee to take such action in his behalf as may be necessary or appropriate to
effectuate the subordination as provided in the Subordinated Indenture and appoints the Trustee his
attorney-in-fact for any and all such purposes.

     Interest on this Subordinated Note will be payable on the Interest Payment Date or Interest
Payment Dates as specified on the face hereof and, in either case, at Maturity. Unless otherwise
specified on the face hereof, payments on this Subordinated Note with respect to any particular
Interest Payment Date or the Maturity Date will include interest accrued from and including the
applicable Original Issue Date, or from and including the most recent Interest Payment Date to
which interest has been paid or duly provided for, to but excluding the particular Interest Payment
Date or the Maturity Date. Interest on this Subordinated Note shall be calculated for each day
during such period by dividing the interest rate applicable to such day by 360, if the Interest
Rate Basis specified on the face hereof is the CD Rate, the Commercial Paper Rate, the Eleventh
District Cost of Funds Rate, the Federal Funds Rate, LIBOR or the Prime Rate, or by the actual
number of days in the year, if the Interest Rate Basis specified on the face hereof is the CMT Rate
or the Treasury Rate. Unless otherwise provided in an annex attached hereto, the Trustee, acting
in the capacity of Calculation Agent, will calculate the Interest Rate on this Subordinated Note.
Upon the request of any Holder of this Subordinated Note, the Trustee shall provide to such Holder
the Interest Rate then in effect and, if then determined, the interest rate that will become
effective on the next Interest Reset Date with respect to this Subordinated Note. Each such
determination of an Interest Rate will be final and binding in the absence of manifest error.

     Unless otherwise specified in an annex attached hereto, if this Subordinated Note is an
Amortizing Note, payments with respect to this Subordinated Note will be applied first to interest
due and payable hereon and then to the reduction of the unpaid principal amount hereof. If this
Subordinated Note is an Amortizing Note, a table setting

5

 

forth the schedule of dates and amounts of payments of principal of and interest on this
Subordinated Note or the formula for the amortization of principal and/or interest is set forth in
an annex attached to this Subordinated Note.

     All percentages resulting from any calculation with respect to this Subordinated Note will be
rounded, if necessary, to the nearest one hundred-thousandth of a percentage point (with five
one-millionths of a percentage point rounded upward) and all dollar or foreign or composite
currency amounts used in or resulting from any such calculation with respect to this Subordinated
Note will be rounded, in the case of United States dollars, to the nearest cent or, in the case of
a foreign or composite currency, to the nearest unit (with one-half cent or unit being rounded
upward).

     If an Interest Payment Date or Maturity for this Subordinated Note falls on a day that is not
a Business Day, payment of principal, premium, if any, and interest to be made on such day with
respect to this Subordinated Note will be made on the next succeeding day that is a Business Day
with the same force and effect as if made on the due date, and no additional interest will be
payable on the date of payment for the period from and after the due date as a result of such
delayed payment. Notwithstanding the foregoing, in the case LIBOR is the applicable Interest Rate
Basis with respect to this Subordinated Note and the next succeeding Business Day falls in the next
succeeding calendar month, payment of interest to be made on such day with respect to this
Subordinated Note will be made on the immediately preceding Business Day.

     This Subordinated Note will be redeemable at the option of the Company prior to its Stated
Maturity Date only if an Initial Redemption Date is specified on the face hereof. If so specified,
this Subordinated Note will be subject to redemption at the option of the Company on any date on
and after such Initial Redemption Date in whole or from time to time in part in increments of
$1,000 or any other integral multiple thereof, at the redemption prices specified in an annex
attached to this Subordinated Note, plus accrued and unpaid interest to but excluding the date of
redemption, but payments due with respect to this Subordinated Note prior to the date of redemption
will be payable to the Holder of this Subordinated Note of record at the close of business on the
relevant Record Date specified on the face hereof, all as provided in the Subordinated Indenture.
Notice of such redemption shall be given by mailing by first-class mail a notice of such redemption
not less than 20 nor more than 60 calendar days prior to the date fixed for redemption to the
Holder of this Subordinated Note, in accordance with the provisions of the Subordinated Indenture.
In the event of redemption of this Subordinated Note in part only, this Subordinated Note will be
canceled and a new Subordinated Note or Subordinated Notes representing the unredeemed portion
hereof will be issued in the name of the Holder hereof. This Subordinated Note is not subject to a
sinking fund unless otherwise specified in an annex attached hereto.

     If so specified on the face of this Subordinated Note, (i) this Subordinated Note shall be
subject to repayment, in whole or in part, prior to Stated Maturity Date at the option of the
Holder on a certain date or dates and at a certain price or prices, plus accrued and unpaid
interest to but excluding the date of payment; and/or (ii) the interest rate specified on the face
hereof may be reset by the Company in accordance with a formula or otherwise on the Optional
Interest Reset Date or Dates specified on the face hereof.

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

     The Subordinated Indenture contains provisions permitting the Company and the Trustee, with
the consent of the Holders of not less than a majority in aggregate principal amount of the
Subordinated Notes at the time outstanding, evidenced as in the Subordinated Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any manner or eliminating
any of the provisions of the Subordinated Indenture or of any supplemental indenture or modifying
in any manner the rights of the Holders of the Subordinated Notes; PROVIDED, HOWEVER, that no such
supplemental indenture shall (i) extend the fixed maturity of any Subordinated Notes, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of

6

 

interest thereon, or reduce any premium payable on the redemption thereof, without the consent of
the Holder of each Subordinated Note so affected, or (ii) reduce the aforesaid percentage of
Subordinated Notes, the consent of the Holders of which is required for any such supplemental
indenture, without the consent of the Holders of all Subordinated Notes then outstanding. It is
also provided in the Subordinated Indenture that the Holders of a majority in aggregate principal
amount of the Subordinated Notes at the time outstanding may on behalf of the Holders of all the
Subordinated Notes waive any past default under the Subordinated Indenture and its consequences,
except a default in the payment of the principal of or premium, if any, or interest on any of the
Subordinated Notes. Any such consent or waiver by the Holder of this Global Subordinated Note
(unless revoked as provided in the Subordinated Indenture) shall be conclusive and binding upon
such Holder and upon all future Holders and owners of this Global Subordinated Note and of any
Subordinated Note issued in exchange or substitution herefor, whether or not any notation of such
consent or waiver is made upon this Global Subordinated Note.

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

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

     If at any time the Depositary for this Global Subordinated Note notifies the Company that it
is unwilling or unable to continue as Depositary for this Global Subordinated Note or if at any
time the Depositary for this Global Subordinated Note shall no longer be registered as a clearing
agency under the Securities Exchange Act of 1934, as amended, or any successor statute or
regulation, the Company may appoint a successor Depositary with respect to this Global Subordinated
Note. If (A) a successor Depositary for this Global Subordinated Note is not appointed by the
Company within 60 calendar days after the Company receives such notice or becomes aware of such
ineligibility, or (B) any Subordinated Notes are represented by this Global Subordinated Note at a
time when an Event of Default with respect to the Subordinated Notes shall have occurred and be
continuing, then in each case the Company’s election to issue this Subordinated Note in global form
shall no longer be effective with respect to this Global Subordinated Note and the Company will
execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of
individual Subordinated Notes in exchange for this Global Subordinated Note, shall authenticate and
make available for delivery, individual Subordinated Notes of like tenor and terms in definitive
form in an aggregate principal amount equal to the principal amount of this Global Subordinated
Note in exchange for this Global Subordinated Note.

     If agreed by the Company and the Depositary with respect to Subordinated Notes issued in the
form of this Global Subordinated Note, the Depositary for such Global Subordinated Note shall
surrender this Global Subordinated Note in exchange in whole or in part for individual Subordinated
Notes of like tenor and terms in definitive form on such terms as are acceptable to the Company and
such Depositary. Thereupon the Company shall execute, and the Trustee shall authenticate and make
available for delivery, without a service charge, (1) to each Person specified by such Depositary,
a new Subordinated Note or Subordinated Notes of like tenor and terms, and of any authorized
denominations as requested by such Person in aggregate principal amount equal to and in exchange
for the beneficial interest of such Person in this Global Subordinated Note, and (2) to such
Depositary a new Global Subordinated Note of like tenor and terms and in a denomination equal to
the difference, if any, between the

7

 

principal amount of this Global Subordinated Note and the aggregate principal amount of
Subordinated Notes delivered to Holders thereof.

     Under certain circumstances specified in the Subordinated Indenture, the Depositary may be
required to surrender any two or more Global Subordinated Notes which have identical terms (but
which may have differing Original Issue Dates) to the Trustee, and the Company shall execute and
the Trustee shall authenticate and deliver to, or at the direction of, the Depositary a Global
Subordinated Note in principal amount equal to the aggregate principal amount of, and with all
terms identical to, the Global Subordinated Notes surrendered to the Trustee, and such new Global
Subordinated Note shall indicate each applicable Original Issue Date and the principal amount
applicable to each such Original Issue Date.

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

     The Subordinated Indenture contains provisions for the satisfaction and discharge of the
Subordinated Indenture upon compliance by the Company with certain conditions specified therein,
which provisions apply to this Subordinated Note.

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

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

     It is the intent of the Company and the Holders of this Subordinated Note to conform to and
contract in strict compliance with applicable usury law from time to time in effect. All
agreements between the Holders of this Subordinated Note and the Company are hereby limited by the
provisions of this paragraph which shall override and control all such agreements, whether now
existing or hereafter arising and whether written or oral. In no way, nor in any event or
contingency (including but not limited to prepayment, default, demand for payment, or acceleration
of the maturity of any obligation), shall the interest taken, reserved, contracted for, charged or
received under this Subordinated Note or otherwise exceed the Highest Lawful Rate. If, from any
possible construction of any document, interest would otherwise be payable in excess of the Highest
Lawful Rate, any such construction shall be subject to the provisions of this paragraph and such
document shall be automatically reformed and the interest payable shall be automatically reduced to
the Highest Lawful Rate, without the necessity of execution of any amendment or new document. If
the Holders of this Subordinated Note shall ever receive anything of value which is characterized
as interest under applicable law and which would apart from this provision be in excess of the
Highest Lawful Rate, an amount equal to the amount which would have been excessive interest shall,
without penalty, be applied to the reduction of the principal amount owing on this Subordinated
Note in the inverse order of its maturity and not to the payment of interest, or refunded to the
Company if and to the extent such amount which would have been excessive exceeds such unpaid
principal. The right to accelerate the maturity of this Subordinated Note does not include the
right to accelerate any interest which has not otherwise accrued on the date of such acceleration,
and the Holders of this Subordinated Note do not intend to charge or receive any unearned interest
in the event of acceleration. All interest paid or agreed to be paid to the Holders of this
Subordinated Note shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full stated term

8

 

(including any renewal or extension) of this Subordinated Note so that the amount of interest on
account of this Subordinated Note does not exceed the Highest Lawful Rate.

9

 

OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably request(s) and instruct(s) the Company to repay this Subordinated
Note (or portion hereof specified below) pursuant to its terms at a price equal to 100% of the
principal amount to be repaid, together with unpaid interest accrued hereon to the Repayment Date,
to the undersigned, at
                                                                                                                                        
                                        .

     If less than the entire principal amount of this Subordinated Note is to be repaid, specify the
portion hereof (which shall be increments of                                                              ) which the holder elects to have repaid
and specify the denomination or denominations (which shall be an authorized denomination) not less
than                                          of the Subordinated Notes to be issued to the Holder for the portion of this Subordinated Note
not being repaid (in the absence of any such specification, one such Subordinated Note will be issued for
the portion not to be repaid).

Principal Amount

to be Repaid:

	 	 	 	 	 	 	 
	

	 	 	$	 	 	 
	 

	 	 	 	 

CUSIP Number or other identifier:

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	 
	 	 
	

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

Notice: The signature(s) on this Option to Elect Repayment must correspond with the name(s) as
written upon the face of this Subordinated Note in every particular, without alteration or enlargement or
any change whatsoever.

10

 

ABBREVIATIONS

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

	 	 	 	 	 	 	 
	TEN COM -

	 	as tenants in common
	 	UNIF GIFT	 	 
	

	 	 	 	MIN ACT -
	 	________Custodian _________
	TEN ENT -

	 	as tenants by the entireties
	 	 	 	(Cust)                      (Minor)
	 
JT TEN -

	 	as joint tenants with right
of survivorship and not as tenants in common
	 	 	 	Under Uniform Gifts

to Minors Act
	 	 	 	 	 	 	 
	

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

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

PLEASE INSERT SOCIAL SECURITY OR

     OTHER IDENTIFYING NUMBER OF

     ASSIGNEE

	 	 	 
	 	 	 
	 
	 	 
	 	 
	 
	 
	 	 
	 

Please print or typewrite name and address

including postal zip code of assignee

	 	 	 
	 
	 	 
	 

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

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	 
	 	 
	

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

11exv10w1

 

Exhibit 10.1

EXECUTION COPY

 

 

FAIR ISAAC CORPORATION

1.5% SENIOR CONVERTIBLE NOTES, SERIES B DUE AUGUST 15, 2023

INDENTURE

DATED AS OF MARCH 31, 2005

WELLS FARGO BANK, NATIONAL ASSOCIATION

AS TRUSTEE

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 1.1.	 	DEFINITIONS	 	 	1	 
	 
	 	SECTION 1.2.	 	OTHER DEFINITIONS	 	 	6	 
	 
	 	SECTION 1.3.	 	TRUST INDENTURE ACT PROVISIONS	 	 	7	 
	 
	 	SECTION 1.4.	 	RULES OF CONSTRUCTION	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2 THE SECURITIES	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.1.	 	FORM AND DATING	 	 	8	 
	 
	 	SECTION 2.2.	 	EXECUTION AND AUTHENTICATION	 	 	9	 
	 
	 	SECTION 2.3.	 	REGISTRAR, PAYING AGENT AND CONVERSION AGENT	 	 	10	 
	 
	 	SECTION 2.4.	 	PAYING AGENT TO HOLD MONEY IN TRUST	 	 	11	 
	 
	 	SECTION 2.5.	 	SECURITYHOLDER LISTS	 	 	11	 
	 
	 	SECTION 2.6.	 	TRANSFER AND EXCHANGE	 	 	11	 
	 
	 	SECTION 2.7.	 	REPLACEMENT SECURITIES	 	 	12	 
	 
	 	SECTION 2.8.	 	OUTSTANDING SECURITIES	 	 	13	 
	 
	 	SECTION 2.9.	 	TREASURY SECURITIES	 	 	13	 
	 
	 	SECTION 2.10.	 	TEMPORARY SECURITIES	 	 	13	 
	 
	 	SECTION 2.11.	 	CANCELLATION	 	 	13	 
	 
	 	SECTION 2.12.	 	LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS	 	 	14	 
	 
	 	SECTION 2.13.	 	CUSIP NUMBERS	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3 REDEMPTION, PURCHASE AND REPURCHASE	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 3.1.	 	RIGHT TO REDEEM; NOTICE TO TRUSTEE	 	 	16	 
	 
	 	SECTION 3.2.	 	SELECTION OF SECURITIES TO BE REDEEMED	 	 	17	 
	 
	 	SECTION 3.3.	 	NOTICE OF REDEMPTION	 	 	17	 
	 
	 	SECTION 3.4.	 	EFFECT OF NOTICE OF REDEMPTION	 	 	18	 
	 
	 	SECTION 3.5.	 	DEPOSIT OF REDEMPTION PRICE	 	 	18	 
	 
	 	SECTION 3.6.	 	SECURITIES REDEEMED IN PART	 	 	19	 
	 
	 	SECTION 3.7.	 	CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION	 	 	19	 
	 
	 	SECTION 3.8.	 	PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL	 	 	19	 
	 
	 	SECTION 3.9.	 	EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE	 	 	22	 
	 
	 	SECTION 3.10.	 	DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE	 	 	23	 
	 
	 	SECTION 3.11.	 	REPURCHASE OF SECURITIES AT OPTION OF THE HOLDER ON SPECIFIED DATES	 	 	23	 
	 
	 	SECTION 3.12.	 	SECURITIES PURCHASED IN PART	 	 	26	 
	 
	 	SECTION 3.13.	 	COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES	 	 	26	 
	 
	 	SECTION 3.14.	 	REPAYMENT TO THE COMPANY	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4 CONVERSION	 	 	27	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 4.1.	 	CONVERSION PRIVILEGE	 	 	27	 
	 
	 	SECTION 4.2.	 	CONVERSION PROCEDURE	 	 	29	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 4.3.	 	FRACTIONAL SHARES	 	 	30	 
	 
	 	SECTION 4.4.	 	TAXES ON CONVERSION	 	 	30	 
	 
	 	SECTION 4.5.	 	COMPANY TO PROVIDE STOCK	 	 	30	 
	 
	 	SECTION 4.6.	 	ADJUSTMENT OF CONVERSION PRICE	 	 	31	 
	 
	 	SECTION 4.7.	 	NO ADJUSTMENT	 	 	36	 
	 
	 	SECTION 4.8.	 	ADJUSTMENT FOR TAX PURPOSES	 	 	36	 
	 
	 	SECTION 4.9.	 	NOTICE OF ADJUSTMENT	 	 	36	 
	 
	 	SECTION 4.10.	 	NOTICE OF CERTAIN TRANSACTIONS	 	 	36	 
	 
	 	SECTION 4.11.	 	EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON CONVERSION PRIVILEGE	 	 	37	 
	 
	 	SECTION 4.12.	 	TRUSTEE’S DISCLAIMER	 	 	38	 
	 
	 	SECTION 4.13.	 	VOLUNTARY REDUCTION	 	 	38	 
	 
	 	SECTION 4.14.	 	PAYMENT UPON CONVERSION	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5 MAKE-WHOLE PREMIUM	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.1.	 	MAKE-WHOLE PREMIUM	 	 	41	 
	 
	 	SECTION 5.2.	 	ADJUSTMENTS RELATING TO MAKE-WHOLE PREMIUM	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6 COVENANTS	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.1.	 	PAYMENT OF SECURITIES	 	 	45	 
	 
	 	SECTION 6.2.	 	SEC REPORTS	 	 	46	 
	 
	 	SECTION 6.3.	 	COMPLIANCE CERTIFICATES	 	 	46	 
	 
	 	SECTION 6.4.	 	FURTHER INSTRUMENTS AND ACTS	 	 	46	 
	 
	 	SECTION 6.5.	 	MAINTENANCE OF CORPORATE EXISTENCE	 	 	46	 
	 
	 	SECTION 6.6.	 	RULE 144A INFORMATION REQUIREMENT	 	 	46	 
	 
	 	SECTION 6.7.	 	STAY, EXTENSION AND USURY LAWS	 	 	47	 
	 
	 	SECTION 6.8.	 	PAYMENT OF CONTINGENT INTEREST	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 7.1.	 	COMPANY MAY CONSOLIDATE, ETC, ONLY ON CERTAIN TERMS	 	 	47	 
	 
	 	SECTION 7.2.	 	SUCCESSOR SUBSTITUTED	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8 DEFAULT AND REMEDIES	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.1.	 	EVENTS OF DEFAULT	 	 	48	 
	 
	 	SECTION 8.2.	 	ACCELERATION	 	 	50	 
	 
	 	SECTION 8.3.	 	OTHER REMEDIES	 	 	50	 
	 
	 	SECTION 8.4.	 	WAIVER OF DEFAULTS AND EVENTS OF DEFAULT	 	 	51	 
	 
	 	SECTION 8.5.	 	CONTROL BY MAJORITY	 	 	51	 
	 
	 	SECTION 8.6.	 	LIMITATIONS ON SUITS	 	 	51	 
	 
	 	SECTION 8.7.	 	RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT	 	 	51	 
	 
	 	SECTION 8.8.	 	COLLECTION SUIT BY TRUSTEE	 	 	52	 
	 
	 	SECTION 8.9.	 	TRUSTEE MAY FILE PROOFS OF CLAIM	 	 	52	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 8.10.	 	PRIORITIES	 	 	52	 
	 
	 	SECTION 8.11.	 	UNDERTAKING FOR COSTS	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9 TRUSTEE	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.1.	 	DUTIES OF TRUSTEE	 	 	53	 
	 
	 	SECTION 9.2.	 	RIGHTS OF TRUSTEE	 	 	54	 
	 
	 	SECTION 9.3.	 	INDIVIDUAL RIGHTS OF TRUSTEE	 	 	55	 
	 
	 	SECTION 9.4.	 	TRUSTEE’S DISCLAIMER	 	 	55	 
	 
	 	SECTION 9.5.	 	NOTICE OF DEFAULT OR EVENTS OF DEFAULT	 	 	55	 
	 
	 	SECTION 9.6.	 	REPORTS BY TRUSTEE TO HOLDERS	 	 	55	 
	 
	 	SECTION 9.7.	 	COMPENSATION AND INDEMNITY	 	 	55	 
	 
	 	SECTION 9.8.	 	REPLACEMENT OF TRUSTEE	 	 	56	 
	 
	 	SECTION 9.9.	 	SUCCESSOR TRUSTEE BY MERGER, ETC	 	 	57	 
	 
	 	SECTION 9.10.	 	ELIGIBILITY; DISQUALIFICATION	 	 	57	 
	 
	 	SECTION 9.11.	 	PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY	 	 	57	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE	 	 	57	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 10.1.	 	SATISFACTION AND DISCHARGE OF INDENTURE	 	 	57	 
	 
	 	SECTION 10.2.	 	APPLICATION OF TRUST MONEY	 	 	58	 
	 
	 	SECTION 10.3.	 	REPAYMENT TO COMPANY	 	 	58	 
	 
	 	SECTION 10.4.	 	REINSTATEMENT	 	 	59	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 11 AMENDMENTS, SUPPLEMENTS AND WAIVERS	 	 	59	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 11.1.	 	WITHOUT CONSENT OF HOLDERS	 	 	59	 
	 
	 	SECTION 11.2.	 	WITH CONSENT OF HOLDERS	 	 	60	 
	 
	 	SECTION 11.3.	 	COMPLIANCE WITH TRUST INDENTURE ACT	 	 	61	 
	 
	 	SECTION 11.4.	 	REVOCATION AND EFFECT OF CONSENTS	 	 	61	 
	 
	 	SECTION 11.5.	 	NOTATION ON OR EXCHANGE OF SECURITIES	 	 	61	 
	 
	 	SECTION 11.6.	 	TRUSTEE TO SIGN AMENDMENTS, ETC	 	 	61	 
	 
	 	SECTION 11.7.	 	EFFECT OF SUPPLEMENTAL INDENTURES	 	 	61	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 12 MISCELLANEOUS	 	 	62	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 12.1.	 	TRUST INDENTURE ACT CONTROLS	 	 	62	 
	 
	 	SECTION 12.2.	 	NOTICES	 	 	62	 
	 
	 	SECTION 12.3.	 	COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS	 	 	62	 
	 
	 	SECTION 12.4.	 	CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT	 	 	62	 
	 
	 	SECTION 12.5.	 	RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS	 	 	63	 
	 
	 	SECTION 12.6.	 	RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT	 	 	63	 
	 
	 	SECTION 12.7.	 	LEGAL HOLIDAYS	 	 	64	 
	 
	 	SECTION 12.8.	 	GOVERNING LAW	 	 	64	 
	 
	 	SECTION 12.9.	 	NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS	 	 	64	 
	 
	 	SECTION 12.10.	 	NO RECOURSE AGAINST OTHERS	 	 	64	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 12.11.	 	SUCCESSORS	 	 	64	 
	 
	 	SECTION 12.12.	 	MULTIPLE COUNTERPARTS	 	 	64	 
	 
	 	SECTION 12.13.	 	SEPARABILITY	 	 	64	 
	 
	 	SECTION 12.14.	 	TABLE OF CONTENTS, HEADINGS, ETC	 	 	64	 

iv

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	SECTION
	Section

	 	310(a)(1)
	 	9.10
	

	 	(a)(2)
	 	9.10
	

	 	(a)(3)
	 	N.A.**
	

	 	(a)(4)
	 	N.A.
	

	 	(a)(5)
	 	9.10
	

	 	(b)
	 	9.8; 9.10
	

	 	(c)
	 	N.A.
	Section

	 	311(a)
	 	9.11
	

	 	(b)
	 	9.11
	

	 	(c)
	 	N.A.
	Section

	 	312(a)
	 	2.5
	

	 	(b)
	 	12.3
	

	 	(c)
	 	12.3
	Section

	 	313(a)
	 	9.6
	

	 	(b)(1)
	 	N.A.
	

	 	(b)(2)
	 	9.6
	

	 	(c)
	 	9.6; 12.2
	

	 	(d)
	 	9.6
	Section

	 	314(a)
	 	6.2; 6.4; 12.2
	

	 	(b)
	 	N.A.
	

	 	(c)(1)
	 	12.4(a)
	

	 	(c)(2)
	 	12.4(a)
	

	 	(c)(3)
	 	N.A.
	

	 	(d)
	 	N.A.
	

	 	(e)
	 	12.4(b)
	

	 	(f)
	 	N.A.
	Section

	 	315(a)
	 	9.1(b)
	

	 	(b)
	 	9.5; 12.2
	

	 	(c)
	 	9.1(a)
	

	 	(d)
	 	9.1(c)
	

	 	(e)
	 	8.11
	Section

	 	316(a)(last sentence)
	 	2.9
	

	 	(a)(1)(A)
	 	8.5
	

	 	(a)(1)(B)
	 	8.4
	

	 	(a)(2)
	 	N.A.
	

	 	(b)
	 	8.7
	

	 	(c)
	 	12.5
	Section

	 	317(a)(1)
	 	8.8
	

	 	(a)(2)
	 	8.9
	

	 	(b)
	 	2.4

	*	 	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture.
	 
	**	 	N.A. means Not Applicable.

 

 

     THIS INDENTURE dated as of March 31, 2005 is between Fair Isaac Corporation, a corporation
duly organized under the laws of the State of Delaware (the “Company”), and Wells Fargo Bank,
National Association a national banking association organized and existing under the laws of the
United States, as Trustee (the “Trustee”).

     In consideration of the premises and the tender of the Existing Securities in exchange for the
Securities by the Holders thereof, both parties agree as follows for the benefit of the other and
for the equal and ratable benefit of the registered Holders of the Company’s 1.5% Senior
Convertible Notes, Series B due August 15, 2023.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. DEFINITIONS.

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

     “Agent” means any Registrar, Paying Agent or Conversion Agent.

     “Applicable Conversion Rate” means the Conversion Rate on any Trading Day.

     “Applicable Conversion Reference Period” means:

	 	•  	for Securities tendered for conversion after the Company has specified a
Redemption Date, Change in Control Purchase Date or Repurchase Date for those
Securities, the ten (10) consecutive Trading Days beginning on the third Trading
Day following the date of such notice; or
	 
	 	•  	in all other cases, the ten (10) consecutive Trading Days beginning on the
third Trading Day following the date the Securities are tendered for conversion.

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Security, the rules and procedures of the Depositary that are
applicable to such transfer or exchange.

     “Applicable Stock Price” means an amount equal to the average of the Closing Sale Prices
during the Applicable Conversion Reference Period. If application of the definition of Applicable
Stock Price results in a value inconsistent with the purpose of the provisions of this Indenture,
the Applicable Stock Price shall be the fair value of a share of Common Stock as reasonably
determined in good faith by the Board of Directors (whose determination shall be conclusive).

1

 

     “Board of Directors” means either the board of directors of the Company or any committee of
the Board of Directors authorized to act for it with respect to this Indenture.

     “Business Day” means each day that is not a Legal Holiday.

     “Calculation Agent” means the calculation agent from time to time appointed by the Company
pursuant to Section 5.1(e).

     “Capital Stock” or “capital stock” of any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or interests in (however
designated) equity of such Person, but excluding any debt securities convertible into such equity.

     “cash” means such coin or currency of the United States as at any time of payment is legal
tender for the payment of public and private debts.

     “Certificated Security” means a Security that is in substantially the form attached hereto as
Exhibit A and that does not include the information or the schedule called for by footnotes
1 and 3 thereof.

     “Closing Sale Price” means, with respect to the Company’s Common Stock on any date, the last
reported per share sale price (or, if no last sale price is reported, the average of the bid and
ask prices or, if more than one in either case, the average of the average bid and the average ask
prices) on such date as reported in composite transactions for the principal U.S. securities
exchange on which the Company’s Common Stock then is listed, or if the Company’s Common Stock is
not listed on a U.S. national or regional exchange, as reported on the National Association of
Securities Dealers Automated Quotation System, or if the Company’s Common Stock is not quoted on
the National Association of Securities Dealers Automated Quotation System, as reported on the
principal other market on which the Common Stock is then traded. In the absence of such quotations,
the Board of Directors will make a good faith determination of the Closing Sale Price.

     “Common Stock” means the common stock of the Company, $0.01 par value, as it exists on the
date of this Indenture and any shares of any class or classes of capital stock of the Company
resulting from any reclassification or reclassifications thereof and which have no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject to redemption by
the Company; provided, however, that if at any time there shall be more than one such resulting
class, the shares of each such class then so issuable on conversion of Securities shall be
substantially in the proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes resulting from all
such reclassifications.

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
Company means the successor Company.

     “Contingent Interest” means interest payable with respect to the Securities for any six-month
period from February 15 through August 14 and from August 15 through February 14, commencing with
the six-month period beginning on August 15, 2008, if the average of the Trading Prices of a
Security for the five consecutive Trading Day period immediately preceding the first day of the
applicable six-month period equals 120% or more of the sum of the principal amount of, plus accrued
and unpaid regular interest on, the Security.

2

 

The amount of contingent interest payable per Security in respect of any six-month period will
equal 0.25% per annum of the average of the Trading Prices of the Securities for the five Trading
Day period immediately preceding such six-month period.

     “Conversion Rate” means, with respect to each $1,000 principal amount of Securities,
$1,000 divided by the Conversion Price, as such Conversion Price is adjusted in accordance with
Section 4.6.

     “Conversion Value” means an amount equal to (a) the Applicable Conversion Rate, multiplied by
(b) the Applicable Stock Price.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be administered which office at the date of the execution of
this Indenture is located at Sixth and Marquette, Minneapolis, Minnesota 55479, Attention:
Corporate Trust Services (Fair Isaac Corporation — 1.5% Senior Convertible Notes, Series B due
August 15, 2023) or at any other time at such other address as the Trustee may designate from time
to time by notice to the Company.

     “Daily Share Amount” means a number of shares of Common Stock, for each Security and on each
Trading Day in the Applicable Conversion Reference Period, which is equal to the greater of:

     (a) zero; or

     (b) a number of shares of Common Stock determined by the following formula:

(Closing Sale Price on
such Trading Day x Applicable Conversion Rate) - $1,000

10 x Closing Sale Price on such Trading Day

     “Default” or “default” means, when used with respect to the Securities, any event that is or,
after notice or passage of time or both, would be an Event of Default.

     “Exchange Act” means the Securities and Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

     “Final Maturity Date” means August 15, 2023.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in (1) the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants, (2) the
statements and pronouncements of the Financial Accounting Standards Board, (3) such other
statements by such other entity as approved by a significant segment of the accounting profession
and (4) the rules and regulations of the SEC governing the inclusion of financial statements
(including pro forma financial statements) in registration statements filed under the Securities
Act and periodic reports required to be filed pursuant to Section 13 of the Exchange Act, including
opinions and pronouncements in staff accounting bulletins and similar written statements from the
accounting staff of the SEC.

     “Global Security” means a permanent global security that is in substantially the form attached
hereto as Exhibit A and that includes the information and schedule called for by footnotes
1 and 2 thereof and which is deposited with the Depositary or its custodian and registered in the
name of the Depositary or its nominee.

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

     “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
terms of this Indenture.

     “Officer” means the Chairman or any Co-Chairman of the Board, any Vice Chairman of the Board,
the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the
Controller, Assistant Controller, the Secretary or any Assistant Secretary of the Company.

     “Officers’ Certificate” means a certificate signed by two Officers; provided, however, that
for purposes of Sections 4.11 and 6.3, “Officers’ Certificate” means a certificate signed by the
principal executive officer, principal financial officer or principal accounting officer of the
Company and by one other Officer.

     “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee in the case of such opinions rendered to the Trustee. The counsel may be an
employee of or counsel to the Company or the Trustee.

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

     “Principal” or “principal” of a debt security, including the Securities, means the principal
of the security plus, when appropriate, the premium, if any, on the security.

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

     “Restricted Security” means a Security required to bear the restricted legend called for by
footnote 2 in the form of Security set forth in Exhibit A of this Indenture.

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

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

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the 1.5% Senior Convertible Notes, Series B due August 15, 2023 or any of
them (each, a “Security”), as amended or supplemented from time to time, that are issued under this
Indenture.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time.

     “Securities Custodian” means the Trustee, as custodian with respect to the Securities in
global form, or any successor thereto.

     “Significant Subsidiary” means, in respect of any Person, a Subsidiary of such Person that
would constitute a “significant subsidiary” as such term is defined under Rule 1-02 of Regulation
S-X under the Securities Act and the Exchange Act.

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     “Subsidiary” means, in respect of any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
or other interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, general partners or trustees
thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such
Person and one or more Subsidiaries of such Person, or (iii) one or more Subsidiaries of such
Person.

     “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder as in effect on the date of this Indenture, except as provided in Section 11.3, and
except to the extent any amendment to the Trust Indenture Act expressly provides for application of
the Trust Indenture Act as in effect on another date.

     “Trading Day” means a day during which trading in securities generally occurs on The New York
Stock Exchange, or, if the Common Stock is not quoted on The New York Stock Exchange, on the
principal other market on which the Common Stock is then traded, other than a day on which a
material suspension of or limitation on trading is imposed that affects either The New York Stock
Exchange (or, if applicable, such other market) in its entirety or only the shares of Common Stock,
by reason of movements in price exceeding limits permitted by the relevant market on which the
shares are traded or otherwise, or on which The New York Stock Exchange (or, if applicable, such
other market) cannot clear the transfer of the Company’s securities due to an event beyond the
Company’s control.

     “Trading Price” means, with respect to the Securities on any date of determination, the
average of the secondary market bid quotations per Security obtained by the Trustee for $5,000,000
principal amount of the Securities at approximately 3:30 p.m., New York City time, on such
determination date from two independent nationally recognized securities dealers selected by the
Company, provided that if at least two such bids cannot reasonably be obtained by
the Trustee, but one such bid can reasonably be obtained by the Trustee, this one bid shall be
used. If the Trustee cannot reasonably obtain at least one bid for $5,000,000 principal amount of
the Securities from a nationally recognized securities dealer or in the Company’s reasonable
judgment, the bid quotations are not indicative of the secondary market value of the Securities,
then the Trading Price of the Securities will equal (a) the applicable Conversion Rate of the
Securities multiplied by (b) the sale price of the Common Stock on such determination date.

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

     “Trust Officer” or “Authorized Officer” means, with respect to the Trustee, any officer
assigned to the Corporate Trust Office, and also, with respect to a particular matter, any other
officer to whom such matter is referred because of such officer’s knowledge of and familiarity with
the particular subject.

     “Unrestricted Global Security” means a Global Security that is not a Restricted Security.

     “Vice President” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president.”

     “Voting Stock” of a Person means any class or classes of Capital Stock or other interests
(including partnership interests) of such Person then outstanding and normally entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

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     SECTION 1.2. OTHER DEFINITIONS.

	 	 	 	 	 
	Term	 	Defined in Section
	“Agent Members”
	 	 	2.1	 
	“Average Sale Price”
	 	 	4.1	(a)
	“Bankruptcy Law”
	 	 	8.1	 
	“Capital Stock Determination Date”
	 	 	4.6	(a)
	“Change in Control”
	 	 	3.8	(a)
	“Change in Control Company Notice”
	 	 	3.8	(a)
	“Change in Control Purchase Date”
	 	 	3.8	(a)
	“Change in Control Purchase Notice”
	 	 	3.8	(c)
	“Change in Control Purchase Price”
	 	 	3.8	(a)
	“Company Order”
	 	 	2.2	 
	“Conversion Agent”
	 	 	2.3	 
	“Conversion Date”
	 	 	4.2	 
	“Conversion Obligation”
	 	 	4.14	(a)
	“Conversion Price”
	 	 	4.6	 
	“Current Market Price”
	 	 	4.6	(b)
	“Custodian”
	 	 	8.1	 
	“Depositary”
	 	 	2.1	(a)
	“Determination Date”
	 	 	4.6	(a)
	“Dividend Determination Date”
	 	 	4.6	(a)
	“Effective Date”
	 	 	5.1	 
	“Event of Default”
	 	 	8.1	 
	“Existing Securities”
	 	 	2.1	 
	“Expiration Date”
	 	 	4.6	(a)
	“Expiration Time”
	 	 	4.6	(a)
	“Instrument”
	 	 	8.1	 
	“Legal Holiday”
	 	 	12.7	 
	“Legend”
	 	 	2.12	 
	“Make-Whole Premium”
	 	 	5.1	 
	“Make-Whole Premium Table”
	 	 	5.1	 
	“Make-Whole Premium Upon Conversion Notice”
	 	 	5.1	 
	“Minimum Conversion Price”
	 	 	4.6	(b)
	“Net Share Amount”
	 	 	4.14	 
	“Net Shares”
	 	 	4.14	 
	“Notice of Default”
	 	 	8.1	 
	“Notice of Redemption”
	 	 	3.3	 
	“Paying Agent”
	 	 	2.3	 
	“Primary Registrar”
	 	 	2.3	 
	“Principal Return”
	 	 	4.14	 
	“Public Acquirer Change in Control”
	 	 	4.14	(c)
	“Public Acquirer Change in Control Notice”
	 	 	4.14	(c)
	“Public Acquirer Common Stock”
	 	 	4.14	(c)
	“Purchased Shares”
	 	 	4.6	(a)
	“Redemption Date”
	 	 	3.1	 

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	Term	 	Defined in Section	 
	“Redemption Price”
	 	 	3.1	 
	“Registrar”
	 	 	2.3	 
	“Repurchase Date”
	 	 	3.11	(a)
	“Repurchase Election Notice”
	 	 	3.11	(b)
	“Repurchase Notice”
	 	 	3.11	(b)
	“Repurchase Price”
	 	 	3.11	(a)
	“Rights Determination Date”
	 	 	4.6	(a)
	“Rights Plan”
	 	 	4.6	(c)
	“Stock Price”
	 	 	5.1	 
	“Stock Price Cap”
	 	 	5.1	 
	“Stock Price Threshold”
	 	 	5.1	 
	“Trigger Event”
	 	 	4.6	(c)
	“Unissued Shares”
	 	 	3.8	(a)

     SECTION 1.3. TRUST INDENTURE ACT PROVISIONS.

     Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by
reference in and made a part of this Indenture. The Indenture shall also include those provisions
of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of
1990. The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities;

     “indenture security holder” means a Securityholder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and “obligor” on the
indenture securities means the Company or any other obligor on the Securities.

     All other terms used in this Indenture that are defined in the TIA, defined by TIA reference
to another statute or defined by any SEC rule and not otherwise defined herein have the meanings
assigned to them therein.

     SECTION 1.4. RULES OF CONSTRUCTION.

     Unless the context otherwise requires:

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

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

          (C) words in the singular include the plural, and words in the plural include the singular;

          (D) provisions apply to successive events and transactions;

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          (E) the term “merger” includes a statutory share exchange and the term “merged” has a
correlative meaning;

          (F) the masculine gender includes the feminine and the neuter;

          (G) references to agreements and other instruments include subsequent amendments thereto; and

          (H) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision.

ARTICLE 2

THE SECURITIES

     SECTION 2.1. FORM AND DATING

     The Securities and the Trustee’s certificate of authentication shall be substantially in the
respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of
this Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange rule or usage. Each Security shall be dated the date of its authentication. The
Securities are being offered in an exchange transaction exempt from, or not subject to, the
registration requirements of the Securities Act by the Company in exchange for an equal principal
amount of the Company’s 1.5% Senior Convertible Notes due August 15, 2023 (the “Existing
Securities”) tendered in exchange therefor by the holders thereof in an exchange transaction exempt
from, or not subject to, the registration requirements of the Securities Act.

     (a) Global Securities. Each Security issued in exchange for an Existing Security
which at the time of exchange (i) bears CUSIP Number 303250 AA 2 shall be issued initially in the
form of one or more Restricted Global Securities, and (ii) bears CUSIP Number 303250 AB 0 shall be
issued initially in the form of one or more Unrestricted Global Securities, in each case of (i) and
(ii) above, duly executed by the Company and authenticated by the Trustee as hereinafter provided,
which shall be deposited on behalf of the purchasers of the Securities represented thereby with the
Trustee, at its Corporate Trust Office, as custodian for the depositary, The Depository Trust
Company (such depositary, or any successor thereto, being hereinafter referred to as the
“Depositary”), and registered in the name of its nominee, Cede & Co. The aggregate principal
amount of the Restricted Global Securities or Unrestricted Global Securities may from time to time
be increased or decreased by adjustments made on the records of the Securities Custodian as
hereinafter provided, subject in each case to compliance with the Applicable Procedures.

     (b) Global Securities In General. Each Global Security shall represent such of the
outstanding Securities as shall be specified therein and each shall provide that it shall represent
the aggregate amount of outstanding Securities from time to time endorsed thereon and that the
aggregate amount of outstanding Securities represented thereby may from time to time be reduced or
increased, as appropriate, to reflect replacements, exchanges, redemptions, purchases or
conversions of such Securities. Any adjustment of the aggregate principal amount of a Global
Security to reflect the amount of any increase or decrease in the amount of outstanding Securities
represented thereby shall be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.12 hereof and shall be made
on the records of the Trustee and the Depositary.

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     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 under
the Global Security, and the Depositary or its nominee (including, for this purpose, its nominee)
may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner and Holder of such Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall (A) 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 (B) impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any Security.

     (c) Book Entry Provisions. The Company shall execute and the Trustee shall, in
accordance with this Section 2.1(c), authenticate and deliver initially one or more Global
Securities that (i) shall be registered in the name of the Depositary or its nominee, (ii) shall be
delivered by the Trustee to the Depositary or held by the Trustee as custodian for the Depositary,
or otherwise pursuant to the Depositary’s instructions and (iii) shall bear legends substantially
to the following effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO FAIR ISAAC CORPORATION (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 IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A SUCCESSOR DEPOSITARY OR ANOTHER NOMINEE
OF THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.”

     SECTION 2.2. EXECUTION AND AUTHENTICATION.

     An Officer shall sign the Securities for the Company by manual or facsimile signature attested
by the manual or facsimile signature of the Secretary or an Assistant Secretary of the Company.
Typographic and other minor errors or defects in any such facsimile signature shall not affect the
validity or enforceability of any Security that has been authenticated and delivered by the
Trustee.

     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.

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     A Security shall not be valid until an authorized signatory of the Trustee manually
signs the certificate of authentication on the Security. The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.

     The Trustee shall authenticate and make available for delivery Securities for original issue
in the aggregate principal amount of up to $399,674,000 upon receipt of a written order or orders
of the Company signed by two Officers of the Company (a “Company Order”). The Company Order shall
specify the amount of Securities to be authenticated, shall provide whether such Securities will be
represented by a Restricted Global Security or an Unrestricted Global Security and the date on
which each original issue of Securities is to be authenticated. The aggregate principal amount of
Securities outstanding at any time may not exceed $399,674,000 except as provided in Section 2.7.

     The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent acceptable to the Company to authenticate Securities. An
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 agent. An
authenticating agent shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company.

     The Securities shall be issuable only in registered form without coupons and only in
denominations of $1,000 and any integral multiple thereof.

     SECTION 2.3.
REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

     The Company shall maintain one or
more offices or agencies where Securities may be presented for registration of transfer or for
exchange (each, a “Registrar”), one or more offices or agencies where Securities may be presented
for payment (each, a “Paying Agent”), one or more offices or agencies where Securities may be
presented for conversion (each, a “Conversion Agent”) and one or more offices or agencies where
notices and demands to or upon the Company in respect of the Securities and this Indenture may be
served. The Company will at all times maintain a Paying Agent, Conversion Agent, Registrar and an
office or agency where notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served in the Borough of Manhattan, The City of New York. One of the
Registrars (the “Primary Registrar”) shall keep a register of the Securities and of their transfer
and exchange.

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall notify the Trustee of the name and address of any Agent not a party to
this Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or
agent for service of notices and demands in any place required by this Indenture, or fails to give
the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company
may act as Paying Agent (except for the purposes of Section 6.1 and Article 10).

     The Company hereby initially designates the Trustee, and the Trustee hereby accepts its
designation, as Paying Agent, Registrar, Primary Registrar, Securities Custodian and Conversion
Agent, and each of the Corporate Trust Office of the Trustee and the office or agency of the
Trustee or any affiliate of the Trustee in the Borough of Manhattan, The City of New York, New York
(which shall initially be Wells Fargo Corporate Trust, c/o The Depository Trust Company,
1st Floor – TADS Dept., 55 Water Street, New York, New York 10041, one such office or
agency of the Company for each of the aforesaid purposes.

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     SECTION 2.4.
PAYING AGENT TO HOLD MONEY IN TRUST.

     Prior to 12:00 p.m., New York City time, on
each due date of the principal of or interest, if any, on any Securities, the Company shall deposit
with a Paying Agent a sum sufficient to pay such principal or interest, if any, so becoming due. A
Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money held
by the Paying Agent for the payment of principal of or interest, if any, on the Securities, and
shall notify the Trustee of any default by the Company (or any other obligor on the Securities) in
making any such payment. If the Company or an Affiliate of the Company acts as Paying Agent, it
shall, before 12:00 p.m., New York City time, on each due date of the principal of or interest on
any Securities, segregate the money and hold it as a separate trust fund. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee, and the Trustee may at any
time during the continuance of any default, upon written request to a Paying Agent, require such
Paying Agent to pay forthwith to the Trustee all sums so held in trust by such Paying Agent. Upon
doing so, the Paying Agent (other than the Company) shall have no further liability for the money.

     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 Primary Registrar, the Company shall furnish to the
Trustee on or before each semi-annual 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.
TRANSFER AND EXCHANGE.

     (a) Subject to compliance with any applicable additional
requirements contained in Section 2.12, when a Security is presented to a Registrar with a request
to register a transfer thereof or to exchange such Security for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the transfer or make the
exchange as requested; provided, however, that every Security presented or surrendered for
registration of transfer or exchange shall be duly endorsed or accompanied by an assignment form
and, if applicable, a transfer certificate each in the form included in Exhibit A, and in
form satisfactory to the Registrar duly executed by the Holder thereof or its attorney duly
authorized in writing. To permit registration of transfers and exchanges, upon surrender of any
Security for registration of transfer or exchange at an office or agency maintained pursuant to
Section 2.3, the Company shall execute and the Trustee shall authenticate Securities of a like
aggregate principal amount at the Registrar’s request. Any exchange or transfer shall be without
charge, except that the Company or the Registrar may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation
thereto, and provided,
that this sentence shall not apply to any exchange pursuant to Section 2.7, 2.10, 2.12(a),
3.6, 3.12, 4.2(f) or 11.5.

     Neither the Company, any Registrar nor the Trustee shall be required to exchange or register a
transfer of (i) any Securities for a period of 15 days next preceding any mailing of a notice of
Securities to be redeemed, (ii) any Securities or portions thereof selected or called for
redemption (except, in the case of redemption of a Security in part, the portion thereof not to be
redeemed) or (iii) any Securities or portions thereof in respect of which a Change in Control
Purchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the case of
the purchase of a Security in part, the portion thereof not to be purchased).

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     All Securities issued upon any transfer or exchange of Securities shall be valid obligations
of the Company, evidencing the same debt and entitled to the same benefits under this Indenture, as
the Securities surrendered upon such transfer or exchange.

     (b) Any Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee such
information as the Trustee may reasonably require in connection with the delivery by such Registrar
of Securities upon transfer or exchange of Securities.

     (c) Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States federal or state
securities law.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Security (including any transfers between or among Agent
Members or other beneficial owners of interests in any Global Security) other than 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, this Indenture, and to examine the same to
determine substantial compliance as to form with the express requirements hereof.

     SECTION 2.7.
REPLACEMENT SECURITIES.

     If any mutilated Security is surrendered to the Company, a
Registrar or the Trustee, or the Company, a Registrar and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and there is delivered to the
Company, the applicable Registrar and the Trustee such security or indemnity as will be required by
them to save each of them harmless, then, in the absence of notice to the Company, such Registrar
or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall
execute, and upon its written request the Trustee shall authenticate and deliver, in exchange for
any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new
Security of like tenor and principal amount, bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, or is about to be redeemed, purchased or repurchased by the Company
pursuant to Article 3, or converted pursuant to Article 4, the Company in its discretion may,
instead of issuing a new Security, pay, redeem, purchase, repurchase or convert such Security, as
the case may be.

     Upon the issuance of any new Securities under this Section 2.7, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the reasonable fees and expenses of
the Trustee or the Registrar) in connection therewith.

     Every new Security issued pursuant to this Section 2.7 in lieu of any mutilated, destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

12

 

     The provisions of this Section 2.7 are (to the extent lawful) exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities.

     SECTION 2.8.
OUTSTANDING SECURITIES.

     Securities outstanding at any time are all Securities
authenticated by the Trustee, except for those canceled by it, those delivered to it for
cancellation and those described in this Section 2.8 as not outstanding.

     If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the
Company receives, subsequent to the new Security’s authentication, proof satisfactory to the
Company that the replaced Security is held by a bona fide purchaser.

     If a Paying Agent (other than the Company or an Affiliate of the Company) holds on a
Redemption Date, Repurchase Date, a Change in Control Purchase Date or the Final Maturity Date
money sufficient to pay the principal of (including premium, if any) and accrued interest on
Securities (or portions thereof) payable on that date, then on and after that date such Securities
(or portions thereof, as the case may be) cease to be outstanding and interest on them ceases to
accrue; provided that any notice of such redemption, repurchase or purchase has
been given pursuant to this Indenture.

     Subject to the restrictions contained in Section 2.9, a Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Security.

     SECTION 2.9.
TREASURY SECURITIES.

     In determining whether the Holders of the required principal
amount of Securities have concurred in any notice, direction, waiver or consent, Securities owned
by the Company or any other obligor on the Securities or by any Affiliate of the Company or of such
other obligor shall be disregarded, except that, for purposes of determining whether the Trustee
shall be protected in relying on any such notice, direction, waiver or consent, only Securities
which a Trust Officer of the Trustee actually knows are so owned shall be so disregarded.
Securities so owned which have been pledged in good faith shall not be disregarded if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to the
Securities and that the pledgee is not the Company or any other obligor on the Securities or any
Affiliate of the Company or of such other obligor.

     SECTION 2.10.
TEMPORARY SECURITIES.

     Until definitive Securities are ready for delivery, the
Company may prepare and execute, and, upon receipt of a Company Order, the Trustee shall
authenticate and deliver, temporary Securities. Temporary Securities shall be substantially in the
form of definitive Securities but may have variations that the Company with the consent of the
Trustee considers appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate and deliver definitive Securities in exchange for
temporary Securities.

     SECTION 2.11.
CANCELLATION.

     The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar, the Paying Agent and the Conversion Agent shall forward to the
Trustee or its agent any Securities surrendered to them for transfer, exchange, redemption,
purchase, repurchase, payment or conversion. The Trustee and no

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one else shall promptly cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, redemption, payment, conversion or cancellation and shall
dispose of the canceled Securities in accordance with its standard procedures and deliver
certification that such Securities have been canceled to the Company. All Securities that are
redeemed, purchased, repurchased or otherwise acquired by the Company or any of its Subsidiaries
prior to the Final Maturity Date may be delivered to the Trustee for cancellation, or the Company
may hold or resell such Securities; provided that all Securities delivered to the
Trustee for cancellation may not be reissued or resold and shall be canceled promptly by the
Trustee. Without limitation to the foregoing, any Securities acquired by any investment banks or
other purchasers pursuant to Section 3.7 shall be surrendered for conversion and thereafter
canceled, and may not be reoffered, sold or otherwise transferred.

     SECTION 2.12.
LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS.

     (a) If Securities are
issued upon the transfer, exchange or replacement of Securities subject to restrictions on transfer
and bearing the legends called for by footnote 2 set forth on the forms of Securities attached
hereto as Exhibit A setting forth such restrictions (collectively, the “Legend”), or if a
request is made to remove the Legend on a Security, the Securities so issued shall bear the Legend,
or the Legend shall not be removed, as the case may be, unless there is delivered to the Company
and the Registrar such satisfactory evidence, which shall include an Opinion of Counsel if
requested by the Company or such Registrar, as may be reasonably required by the Company and the
Registrar, that neither the Legend nor the restrictions on transfer set forth therein are required
to ensure that transfers thereof comply with the provisions of Rule 144A or Rule 144 under the
Securities Act or that such Securities are not “restricted” within the meaning of Rule 144 under
the Securities Act; provided that no such evidence need be supplied in connection
with the sale of such Security pursuant to a registration statement that is effective at the time
of such sale. Upon (i) provision of such satisfactory evidence if requested, or (ii) notification
by the Company to the Trustee and Registrar of the sale of such Security pursuant to a registration
statement that is effective at the time of such sale, the Trustee, at the written direction of the
Company, shall authenticate and deliver a Security that does not bear the Legend. If the Legend is
removed from the face of a Security and the Security is subsequently held by an Affiliate of the
Company, the Legend shall be reinstated.

     (b) A Global Security may not be transferred, in whole or in part, to any Person other than
the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided that the foregoing shall not prohibit any transfer of a
Security that is issued in exchange for a Global Security but is not itself a Global Security. No
transfer of a Security to any Person shall be effective under this Indenture or the Securities
unless and until such Security has been registered in the name of such Person. Notwithstanding any
other provisions of this Indenture or the Securities, transfers of a Global Security, in whole or
in part, shall be made only in accordance with this Section 2.12.

     (c) Subject to the succeeding paragraph, every Security issued in exchange for an Existing
Security bearing CUSIP Number 303250 AA 2 shall initially be subject to the restrictions on
transfer provided in the Legend. Whenever any Restricted Security other than a Restricted Global
Security is presented or surrendered for registration of transfer or for exchange for a Security
registered in a name other than that of the Holder, such Security must be accompanied by a
certificate in substantially the form set forth in Exhibit A, dated the date of such
surrender and signed by the Holder of such Security, as to compliance with such restrictions on
transfer. The Registrar shall not be required to accept for such registration of transfer or
exchange any Security not so accompanied by a properly completed certificate.

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     (d) The restrictions imposed by the Legend upon the transferability of any Security shall
cease and terminate when such Security has been sold pursuant to an effective registration
statement under the Securities Act or transferred in compliance with Rule 144 under the Securities
Act (or any successor provision thereto) or, if earlier, upon the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision). Any Security as to which such restrictions on transfer shall have expired in accordance
with their terms or shall have terminated may, upon a surrender of such Security for exchange to
the Registrar in accordance with the provisions of this Section 2.12 (accompanied, in the event
that such restrictions on transfer have terminated by reason of a transfer in compliance with Rule
144 or any successor provision, by, if requested by the Company or the Registrar, an Opinion of
Counsel reasonably acceptable to the Company and the Registrar, addressed to the Company and the
Registrar and in form acceptable to the Company and the Registrar, to the effect that the transfer
of such Security has been made in compliance with Rule 144 or such successor provision), be
exchanged for a new Security, of like tenor and aggregate principal amount, which shall not bear
the restrictive Legend. The Company shall inform the Trustee of the effective date of any
registration statement registering the Securities under the Securities Act. The Trustee shall not
be liable for any action taken or omitted to be taken by it in good faith in accordance with the
aforementioned Opinion of Counsel or registration statement.

     (e) As used in the preceding two paragraphs of this Section 2.12, the term “transfer”
encompasses any sale, pledge, transfer, hypothecation or other disposition of any Security.

     (f) The provisions of clauses (i), (ii), (iii), (iv) and (v) below shall apply only to Global
Securities:

     (i) Notwithstanding any other provisions of this Indenture or the Securities, a
Global Security shall not be exchanged in whole or in part for a Security registered
in the name of any Person other than the Depositary or one or more nominees thereof,
provided that a Global Security may be exchanged for Securities
registered in the names of any person designated by the Depositary in the event that
(A) the Depositary has notified the Company that it is unwilling or unable to
continue as Depositary for such Global Security or such Depositary has ceased to be a
“clearing agency” registered under the Exchange Act, and a successor Depositary is
not appointed by the Company within 90 days, (B) the Company has provided the
Depositary with written notice that it has decided to discontinue use of the system
of book entry transfer through the Depositary or any successor Depositary or (C) an
Event of Default has occurred and is continuing with respect to the Securities. Any
Global Security exchanged pursuant to clauses (A) or (B) above shall be so exchanged
in whole and not in part, and any Global Security exchanged pursuant to clause (C)
above may be exchanged in whole or from time to time in part as directed by the
Depositary. Any Security issued in exchange for a Global Security or any portion
thereof shall be a Global Security; provided that any such Security
so issued that is registered in the name of a Person other than the Depositary or a
nominee thereof shall not be a Global Security.

     (ii) Securities issued in exchange for a Global Security or any portion thereof
shall be issued in definitive, fully registered form, without interest coupons, shall
have an aggregate principal amount equal to that of such Global Security or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depositary shall designate and shall bear the
applicable legends provided for herein. Any Global Security to be exchanged in whole
shall be surrendered by the Depositary to the Trustee, as Registrar. With regard to
any Global Security to be exchanged in part, either such

15

 

Global Security shall be so surrendered for exchange or, if the Trustee is
acting as custodian for the Depositary or its nominee with respect to such Global
Security, the principal amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment made on the
records of the Trustee. Upon any such surrender or adjustment, the Trustee shall
authenticate and deliver the Security issuable on such exchange to or upon the order
of the Depositary or an authorized representative thereof.

     (iii) Subject to the provisions of clause (v) below, the registered Holder 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 this Indenture or the Securities.

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

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

     SECTION 2.13.
CUSIP NUMBERS.

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

ARTICLE 3

REDEMPTION, PURCHASE AND REPURCHASE

     SECTION 3.1. RIGHT TO REDEEM; NOTICE TO TRUSTEE.

     The Securities may be redeemed at the election
of the Company, as a whole or from time to time in part, at any time on or after August 15, 2008,
at a redemption price equal to 100% of the principal amount of the Securities being redeemed,
together with accrued and unpaid interest up to, but not including, the date selected by the
Company for redemption of the Securities (such price the “Redemption Price” and such date

16

 

the “Redemption Date”); provided that if the Redemption Date occurs after a
record date for the payment of interest and prior to the interest payment date related to such
record date, interest will be payable to the Holders in whose names the Securities are registered
on the Redemption Date.

     If the Company elects to redeem Securities pursuant to this Section 3.1 and paragraph 5 of the
Securities, it shall notify the Trustee at least 30 days (but no fewer than 20 days) prior to the
Redemption Date as fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee) of the Redemption Date and the principal amount of Securities to be redeemed. If fewer
than all of the Securities are to be redeemed, the record date relating to such redemption shall be
selected by the Company and given to the Trustee, which record date shall not be less than ten days
after the date of notice to the Trustee.

     SECTION 3.2.
SELECTION OF SECURITIES TO BE REDEEMED.

     If less than all of the Securities are to
be redeemed, the Trustee shall, unless the procedures of the Depositary require otherwise, not
fewer than 20 nor more than 60 days prior to the Redemption Date, select the Securities to be
redeemed. The Trustee shall make the selection from the Securities outstanding and not previously
called for redemption, by lot, on a pro rata basis, in such other manner as the Trustee deems
appropriate or otherwise in accordance with the applicable procedures of the Depositary.
Securities in denominations of $1,000 may only be redeemed in whole. The Trustee may select for
redemption portions (equal to $1,000 or any integral multiple thereof) of the principal of
Securities that have denominations larger than $1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for redemption.

     If any Security selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed to be the portion selected for redemption. Securities that have been
converted during a selection of Securities to be redeemed shall be treated by the Trustee as
outstanding for the purpose of such selection.

     No sinking fund is provided for the Securities.

     SECTION 3.3.
NOTICE OF REDEMPTION.

     At least 20 days but not more than 60 days before a
Redemption Date, the Company shall mail or cause to be mailed a notice of redemption (a “Notice of
Redemption”) to each Holder of Securities to be redeemed at such Holder’s address as it appears on
the Primary Registrar’s books.

     The Notice of Redemption shall identify the Securities (including CUSIP numbers) to be
redeemed and shall state:

          (1) the Redemption Date;

          (2) the Redemption Price;

          (3) the then current Conversion Price;

          (4) the name and address of each Paying Agent and Conversion Agent;

17

 

          (5) that Securities called for redemption must be presented and surrendered to a Paying Agent
to collect the Redemption Price;

          (6) that Holders who wish to convert Securities must surrender such Securities for conversion
no later than the close of business on the Business Day immediately preceding the Redemption Date
and must satisfy the other requirements in paragraph 9 of the Securities;

          (7) that, unless the Company defaults in making the redemption payment, interest on Securities
called for redemption shall cease accruing on and after the Redemption Date and the only remaining
right of the Holder shall be to receive payment of the Redemption Price, plus accrued interest, if
any upon presentation and surrender to a Paying Agent of the Securities; and

          (8) if any Security is being redeemed in part, the portion of the principal amount of such
Security to be redeemed and that, after the Redemption Date, upon presentation and surrender of
such Security, a new Security or Securities in aggregate principal amount equal to the unredeemed
portion thereof will be issued.

     If any of the Securities to be redeemed is in the form of a Global Security, then the Company
shall modify such notice to the extent necessary to accord with the procedures of the Depositary
applicable to redemptions. At the Company’s written request given at least 30 days prior to the
Redemption Date (unless a shorter period shall be satisfactory to the Trustee), which request shall
(i) be irrevocable once given and (ii) set forth all relevant information required by clauses (1)
through (8) of the preceding paragraph, the Trustee shall give the Notice of Redemption to each
Holder in the Company’s name and at the Company’s expense.

     SECTION 3.4.
EFFECT OF NOTICE OF REDEMPTION.

     Once the Notice of Redemption is mailed, Securities
called for redemption become due and payable on the Redemption Date and at the Redemption Price
stated in the notice, except for Securities that are converted in accordance with the provisions of
Article 4. Upon presentation and surrender to a Paying Agent, Securities called for redemption
shall be paid at the Redemption Price; provided that if the Redemption Date occurs
after a record date for the payment of interest and prior to the interest payment date related to
such record date, interest will be payable to the Holders in whose names the Securities are
registered on the Redemption Date.

     SECTION 3.5.
DEPOSIT OF REDEMPTION PRICE.

     Prior to 12:00 p.m. New York City time, on the
Redemption Date, the Company shall deposit with a Paying Agent (or, if the Company acts as Paying
Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price of all
Securities to be redeemed on that date, other than Securities or portions thereof called for
redemption on that date which have been delivered by the Company to the Trustee for cancellation or
have been converted. The Paying Agent shall return to the Company any money not required for that
purpose because of the conversion of Securities pursuant to Article 4 or, if such money is then
held by the Company in trust and is not required for such purpose, it shall be discharged from the
trust.

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     SECTION 3.6.
SECURITIES REDEEMED IN PART.

     Upon presentation and surrender of a Security that is
redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the
Holder a new Security equal in principal amount to the unredeemed portion of the Security
surrendered.

     SECTION 3.7.
CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION.

     In connection with any redemption of
Securities, the Company may arrange for the purchase and conversion of any Securities called for
redemption by an agreement with one or more investment banks or other purchasers to purchase such
Securities by paying to a Paying Agent (other than the Company or any of its Affiliates) in trust
for the Holders, on or before 12:00 p.m. New York City time on the Redemption Date, an amount that,
together with any amounts deposited with such Paying Agent by the Company for the redemption of
such Securities, is not less than the Redemption Price of such Securities. Notwithstanding
anything to the contrary contained in this Article 3, the obligation of the Company to pay the
Redemption Price of such Securities, shall be deemed to be satisfied and discharged to the extent
such amount is so paid by such purchasers; provided,
however, that nothing in this Section 3.7
shall relieve the Company of its obligation to pay the Redemption Price on Securities called for
redemption. If such an agreement with one or more investment banks or other purchasers is entered
into, any Securities called for redemption and not surrendered for conversion by the Holders
thereof prior to the relevant Redemption Date may, at the option of the Company upon written notice
to the Trustee, be deemed, to the fullest extent permitted by law, acquired by such purchasers from
such Holders and (notwithstanding anything to the contrary contained in Article 4) surrendered by
such purchasers for conversion, all as of 12:00 p.m. New York City time on the Redemption Date,
subject to payment of the above amount as aforesaid. The Paying Agent shall hold and pay to the
Holders whose Securities are selected for redemption any such amount paid to it for purchase in the
same manner as it would money deposited with it by the Company for the redemption of Securities.
Without the Paying Agent’s prior written consent, no arrangement between the Company and such
purchasers for the purchase and conversion of any Securities shall increase or otherwise affect any
of the powers, duties, responsibilities or obligations of the Paying Agent as set forth in this
Indenture, and the Company agrees to indemnify the Paying Agent from, and hold it harmless against,
any loss, liability or expense arising out of or in connection with any such arrangement for the
purchase and conversion of any Securities between the Company and such purchasers, including the
costs and expenses incurred by the Paying Agent in the defense of any claim or liability arising
out of or in connection with the exercise or performance of any of its powers, duties,
responsibilities or obligations under this Indenture.

     SECTION 3.8.
PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL.

     (a) If at
any time that Securities remain outstanding there shall occur a Change in Control, Securities shall
be purchased by the Company at the option of the Holders, as of the date that is 30 Business Days
after the occurrence of the Change in Control (the “Change in Control Purchase Date”) at a purchase
price equal to 100% of the principal amount of the Securities, plus accrued and unpaid interest to,
but excluding, the Change in Control Purchase Date (the “Change in Control Purchase Price”),
subject to satisfaction by or on behalf of any Holder of the requirements set forth in subsection
(c) of this Section 3.8.

     A “Change in Control” shall be deemed to have occurred if any of the following occurs after
the date hereof:

19

 

          (1) any “person” or “group” (as such terms are defined below) is or becomes the “beneficial
owner” (as defined below), directly or indirectly, of shares of Voting Stock of the Company
representing 50% or more of the total voting power of all outstanding classes of Voting Stock of
the Company or has the power, directly or indirectly, to elect a majority of the members of the
Board of Directors of the Company; or

          (2) the Company consolidates with, or merges with or into, another Person or the Company
sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of the
assets of the Company, or any Person consolidates with, or merges with or into, the Company, in any
such event other than pursuant to a transaction in which the Persons that “beneficially owned” (as
defined below), directly or indirectly, shares of Voting Stock of the Company immediately prior to
such transaction “beneficially own” (as defined below), directly or indirectly, shares of Voting
Stock of the Company representing at least a majority of the total voting power of all outstanding
classes of Voting Stock of the surviving or transferee Person; or

          (3) the holders of capital stock of the Company approve any plan or proposal for the
liquidation or dissolution of the Company (whether or not otherwise in compliance with the terms
hereof).

For the purpose of the definition of “Change in Control”, (i) “person” and “group” have the
meanings given such terms under Section 13(d) and 14(d) of the Exchange Act or any successor
provisions, and the term “group” includes any group acting for the purpose of acquiring, holding or
disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act (or any
successor provision thereto), (ii) a “beneficial owner” shall be determined in accordance with Rule
13d-3 under the Exchange Act, as in effect on the date of this Indenture, except that the number of
shares of Voting Stock of the Company shall be deemed to include, in addition to all outstanding
shares of Voting Stock of the Company and Unissued Shares (as defined below) deemed to be held by
the “person” or “group” (as such terms are defined above) or other person with respect to which the
Change in Control determination is being made, all Unissued Shares (as defined below) deemed to be
held by all other persons, and (iii) the terms “beneficially owned” and “beneficially own” shall
have meanings correlative to that of “beneficial owner.” The term “Unissued Shares” means shares
of Voting Stock not outstanding that are subject to options, warrants, rights to purchase or
conversion privileges exercisable within 60 days of the date of determination of a Change in
Control.

     Notwithstanding anything to the contrary set forth in this Section 3.8, a Change in Control
will not be deemed to have occurred if either:

          (X) after August 15, 2008, the Closing Sale Price of the Common Stock for any five Trading
Days during the ten Trading Days immediately preceding the Change in Control is at least equal to
105% of the Conversion Price in effect on such Trading Day; or

          (Y) in the case of a merger or consolidation, all of the consideration (excluding cash
payments for fractional shares and cash payments pursuant to dissenters’ appraisal rights in the
merger or consolidation) in the merger or consolidation otherwise constituting the Change in
Control consists of shares of common stock, depository receipts or other certificates representing
common equity interests, traded on a United States national securities exchange or quoted on the
Nasdaq National Market (or which will be so traded or quoted when issued or exchanged in connection
with such Change in Control) and as a result of such transaction or transactions the Securities
become convertible solely into such common stock, depository receipts or other certificates
representing common equity interests or a cash amount based on the value of such common stock,
depositary receipts or other certificates representing common equity interests or a

20

 

combination of such cash amount and such common stock, depository receipts or other
certificates representing common equity interests.

     (b) Within 10 Business Days after the occurrence of a Change in Control, the Company shall
mail a written notice of the Change in Control to the Trustee and to each Holder (and to beneficial
owners as required by applicable law). The notice shall include the form of a Change in Control
Purchase Notice to be completed by the Holder and shall state:

          (1) the date of such Change in Control and, briefly, the events causing such Change in Control
and the terms and conditions thereof;

          (2) the date by which the Change in Control Purchase Notice pursuant to this Section 3.8 must
be given;

          (3) the Change in Control Purchase Date;

          (4) the Change in Control Purchase Price;

          (5) the Holder’s right to require the Company to purchase the Securities;

          (6) briefly, the conversion rights of the Securities;

          (7) the name and address of each Paying Agent and Conversion Agent;

          (8) the Conversion Price and any adjustments thereto;

          (9) that Securities as to which a Change in Control Purchase Notice has been given may be
converted pursuant to Article 4 of this Indenture only to the extent that the Change in Control
Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

          (10) the procedures that the Holder must follow to exercise rights under this Section 3.8;

          (11) the procedures for withdrawing a Change in Control Purchase Notice, including a form of
notice of withdrawal; and

          (12) that the Holder must satisfy the requirements set forth in the Securities in order to
convert the Securities.

     If any of the Securities is in the form of a Global Security, then the Company shall modify
such notice to the extent necessary to accord with the procedures of the Depositary applicable to
the repurchase of Global Securities. At the Company’s expense and written request received not
less than 5 Business Days after the occurrence of a Change in Control (unless a shorter period
shall be satisfactory to the Trustee), the Trustee shall give notice of such Change in Control on
behalf of the Company; provided, however, that in all cases the text of such notice
shall be prepared by the Company.

     (c) A Holder may exercise its rights specified in subsection (a) of this Section 3.8 upon
delivery of a written notice (which shall be in substantially the form included in Exhibit
A hereto and which may be delivered by letter, overnight courier, hand delivery, facsimile
transmission or in any other written form and, in the case of Global Securities, may be delivered
electronically or by other means in accordance with the

21

 

Depositary’s customary procedures) of the exercise of such rights (a “Change in Control
Purchase Notice”) to any Paying Agent at any time prior to the close of business on the Business
Day immediately preceding the Change in Control Purchase Date.

     The delivery of such Security to any Paying Agent (together with all necessary endorsements)
at the office of such Paying Agent shall be a condition to the receipt by the Holder of the Change
in Control Purchase Price therefor.

     The Company shall purchase from the Holder thereof, pursuant to this Section 3.8, a portion of
a Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of the Indenture that apply to the purchase of all of a Security pursuant to Sections
3.8 through 3.14 also apply to the purchase of such portion of such Security.

     Notwithstanding anything herein to the contrary, any Holder delivering to a Paying Agent the
Change in Control Purchase Notice contemplated by this subsection (c) shall have the right to
withdraw such Change in Control Purchase Notice in whole or in a portion thereof that is a
principal amount of $1,000 or in an integral multiple thereof at any time prior to the close of
business on the Business Day immediately preceding the Change in Control Purchase Date by delivery
of a written notice of withdrawal to the Paying Agent in accordance with Section 3.9.

     A Paying Agent shall promptly notify the Company of the receipt by it of any Change in Control
Purchase Notice or written withdrawal thereof.

     Anything herein to the contrary notwithstanding, in the case of Global Securities, any Change
in Control Purchase Notice may be delivered or withdrawn and such Securities may be surrendered or
delivered for purchase in accordance with the Applicable Procedures as in effect from time to time.

     SECTION 3.9.
EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE.

     Upon receipt by any Paying Agent of a
properly completed Change in Control Purchase Notice and Securities from a Holder in accordance
with Section 3.8(c), the Holder of the Security in respect of which such Change in Control Purchase
Notice was given shall (unless such Change in Control Purchase Notice is withdrawn as specified
below) thereafter be entitled to receive the Change in Control Purchase Price with respect to such
Security. Such Change in Control Purchase Price shall be paid to such Holder promptly following
the later of (a) the Change in Control Purchase Date with respect to such Security
(provided the conditions in Section 3.8(c) have been satisfied) and (b) the time of
delivery of such Security to a Paying Agent by the Holder thereof in the manner required by Section
3.8(c). Securities in respect of which a Change in Control Purchase Notice has been given by the
Holder thereof may not be converted on or after the date of the delivery of such Change in Control
Purchase Notice unless such Change in Control Purchase Notice has first been validly withdrawn.

     A Change in Control Purchase Notice may be withdrawn by means of a written notice (which may
be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any other
written form and, in the case of Global Securities, may be delivered electronically or by other
means in accordance with the Depositary’s customary procedures) of withdrawal delivered by the
Holder to a Paying Agent at any time prior to the close of business on the Business Day immediately
preceding the Change in Control Purchase Date, specifying the principal amount of the Security or
portion thereof (which must be a principal amount of

22

 

$1,000 or an integral multiple of $1,000 in excess thereof) with respect to which such notice
of withdrawal is being submitted.

     SECTION 3.10.
DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE.

     On or before 12:00 p.m. New York City
time on the Change in Control Purchase Date, the Company shall deposit with the Trustee or with a
Paying Agent (other than the Company or an Affiliate of the Company) an amount of money (in
immediately available funds if deposited on such Business Day) sufficient to pay the aggregate
Change in Control Purchase Price of all the Securities or portions thereof that are to be purchased
as of such Change in Control Purchase Date. The manner in which the deposit required by this
Section 3.10 is made by the Company shall be at the option of the Company, provided
that such deposit shall be made in a manner such that the Trustee or a Paying Agent shall
have immediately available funds on the Change in Control Purchase Date.

     If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay the
Change in Control Purchase Price of any Security for which a Change in Control Purchase Notice has
been tendered and not withdrawn in accordance with this Indenture then, on the Change in Control
Purchase Date, such Security will cease to be outstanding and the rights of the Holder in respect
thereof shall terminate (other than the right to receive the Change in Control Purchase Price as
aforesaid). The Company shall publicly announce the principal amount of Securities purchased as a
result of such Change in Control on or as soon as practicable after the Change in Control Purchase
Date.

     SECTION 3.11. REPURCHASE OF SECURITIES AT OPTION OF THE HOLDER ON SPECIFIED DATES.

     (a) The Holders may require the Company to repurchase any outstanding Securities for cash, in
accordance with the provisions of paragraph 7 of the Securities, on August 15, 2007, August 15,
2008, August 15, 2013 or August 15, 2018 (each a “Repurchase Date”) at a purchase price per
Security equal to 100% of the aggregate principal amount of the Security, together with any accrued
and unpaid interest to, but not including, the applicable Repurchase Date (the “Repurchase Price”);
provided that if such Repurchase Date is an interest payment date, interest on the
Securities will be payable to the Holders in whose names the Securities are registered on such
Repurchase Date.

     (b) The Company shall give written notice of the applicable Repurchase Date by notice sent by
first-class mail to the Trustee and to each Holder (at its address shown in the register of the
Registrar) and to beneficial owners as required by applicable law, not less than 20 Business Days
prior to each Repurchase Date (the “Repurchase Notice”). Each Repurchase Notice shall include a
repurchase election notice, in substantially the form included in Exhibit A attached hereto
(a “Repurchase Election Notice”), to be completed by a Securityholder. Each Repurchase Notice
shall state:

          (1) the Repurchase Price, the Repurchase Date and the Conversion Price in effect;

          (2) the name and address of the Paying Agent and the Conversion Agent;

          (3) that Securities as to which a Repurchase Notice has been given may be converted if they
are otherwise convertible in accordance with Article 4 hereof and paragraph 9 of the Securities
only to the extent that the Repurchase Election Notice has been withdrawn in accordance with the
terms of this Indenture;

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          (4) that Securities must be surrendered to the Paying Agent to collect payment;

          (5) that the Repurchase Price for any Security as to which a Repurchase Notice has been given
and not withdrawn will be paid promptly following the later of the Repurchase Date and the time of
surrender of such Security as described in subclause (4) above;

          (6) the procedures the Holder must follow to exercise rights under this Section and a brief
description of those rights;

          (7) briefly, the conversion rights of the Securities;

          (8) the procedures for withdrawing a Repurchase Election Notice (including pursuant to the
terms of Section 3.11(d));

          (9) that, unless the Company defaults in making payment on Securities for which a Repurchase
Election Notice has been submitted, interest, if any, on such Securities will cease to accrue on
and after the Repurchase Date; and

          (10) the CUSIP number of the Securities.

     If any of the Securities are to be redeemed in the form of a Global Security, the Company
shall modify such notice to the extent necessary to accord with the procedures of the Depositary
applicable to redemptions.

     At the Company’s written request received not less than 25 Business Days prior to each
Repurchase Date (unless a shorter period shall be satisfactory to the Trustee), the Trustee shall
give such Repurchase Notice on behalf of the Company and at the Company’s expense;
provided, however, that, in all cases, the text of such Repurchase Notice shall be
prepared by the Company.

     (c) Repurchases of Securities by the Company pursuant to this Section 3.11 shall be made, at
the option of the Holder thereof, upon:

          (1) delivery to the Paying Agent by the Holder of the Repurchase Election Notice at any time
from the opening of business on the date that is 20 Business Days prior to the applicable
Repurchase Date until the close of business on the fifth Business Day prior to such Repurchase Date
stating:

               (A) the certificate number of the Security which the Holder will deliver to be purchased;

               (B) the portion (which may be 100%) of the principal amount of the Security which the Holder
will deliver to be purchased, which portion must be in a principal amount of $1,000 or an integral
multiple thereof; and

               (C) that such Security shall be purchased as of the applicable Repurchase Date pursuant to the
terms and conditions specified in paragraph 7 of the Securities and in this Section 3.11 of this
Indenture.

          (2) delivery of such Security to the Paying Agent at any time after delivery Repurchase Notice
(together with all necessary endorsements) at the offices of the Paying Agent. Delivery of such

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Security shall be a condition to receipt by the Holder of the Repurchase Price therefor. The
Repurchase Price shall be paid pursuant to this Section 3.11 only if the Security delivered to the
Paying Agent shall conform in all respects to the description thereof in the related Repurchase
Election Notice, as determined by the Company.

     (d) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent
the Repurchase Election Notice contemplated by this Section 3.11 shall have the right to withdraw
such Repurchase Election Notice at any time prior to the close of business on the second Business
Day immediately preceding the Repurchase Date by delivery of a written notice of withdrawal to the
Paying Agent specifying:

          (1) the certificate number, if any, of the Security in respect of which such notice of
withdrawal is being submitted;

          (2) the aggregate principal amount of the Security with respect to which such notice of
withdrawal is being submitted; and

          (3) the aggregate principal amount, if any, of such Security which remains subject to the
original Repurchase Election Notice and which has been or will be delivered for purchase by the
Company.

     The Paying Agent shall promptly notify the Company of the receipt by it of any Repurchase
Election Notice or written notice of withdrawal thereof.

     (e) On or before 12:00 p.m. (local time in The City of New York) on the applicable Repurchase
Date, the Company shall deposit with the Trustee or with the Paying Agent (or if the Company or an
Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust as
provided in Section 2.4) an amount of money (in immediately available funds if deposited on such
Repurchase Date) sufficient to pay the aggregate Repurchase Price of all the Securities or portions
thereof which are to be purchased as of the applicable Repurchase Date. The manner in which the
deposit required by this Section 3.11(e) is made by the Company shall be at the option of the
Company; provided that such deposit shall be made in a manner such that the Trustee
or a Paying Agent shall have immediately available funds on the applicable Repurchase Date.

     If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay the
Repurchase Price of any Security for which a Repurchase Election Notice has been tendered and not
withdrawn on the applicable Repurchase Date, then, on the applicable Repurchase Date, such Security
will cease to be outstanding and interest will cease to accrue on such Security, whether or not the
Security is delivered to the Paying Agent, and the rights of the Holder in respect thereof shall
terminate (other than the right to receive the Repurchase Price as aforesaid) and interest will
cease to accrue on such Security.

     The Repurchase Price shall be paid to such Holder with respect to Securities for which a
Repurchase Election Notice has been tendered and not withdrawn, subject to receipt of funds by the
Paying Agent, promptly following the later of (x) the Repurchase Date with respect to such Security
(provided the conditions in Section 3.11(c) have been satisfied) and (y) the time of delivery of
such Security to the Paying Agent by the Holder thereof in the manner required by Section 3.11(c).
Securities in respect of which a Repurchase Election Notice has been given by the Holder thereof
may not be converted pursuant to Article 4 hereof on or after the date of the delivery of such
Repurchase Election Notice, unless the Securities are otherwise then convertible in accordance with
Article 4 and such Repurchase Election Notice has first been validly withdrawn as specified in
Section 3.11(d).

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     The Company shall purchase from the Holder thereof, pursuant to this Section 3.11, a portion
of a Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

     (f) There shall be no purchase of any Securities pursuant to this Section 3.11 if there has
occurred (prior to, on or after as the case may be, the giving, by the Holders of such Securities,
of the required Repurchase Election Notice) and is continuing an Event of Default (other than a
default in the payment of the Repurchase Price). The Paying Agent will promptly return to the
respective Holders thereof any Securities (x) with respect to which a Repurchase Election Notice
has been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of
an Event of Default (other than a default in the payment of the Repurchase Price) in which case,
upon such return, the Repurchase Election Notice with respect thereto shall be deemed to have been
withdrawn.

     SECTION 3.12. SECURITIES PURCHASED IN PART.

     Any Security that is to be purchased or repurchased
only in part shall be surrendered at the office of a Paying Agent and promptly after the Change in
Control Purchase Date or the Repurchase Date, as the case may be, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without service charge, a
new Security or Securities, of such authorized denomination or denominations as may be requested by
such Holder, in aggregate principal amount equal to, and in exchange for, the portion of the
principal amount of the Security so surrendered that is not purchased or repurchased.

     SECTION 3.13. COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES.

     In connection with any offer to purchase or repurchase or any purchase or repurchase of
Securities under Section 3.8 or 3.11, the Company shall (a) comply with Rule and Rule 14e-1
(or any successor to either such Rule), if applicable, under the Exchange Act, (b) file the related
Schedule TO (or any successor or similar schedule, form or report) if required under the Exchange
Act, and (c) otherwise comply with all federal and state securities laws in connection with such
offer to purchase or purchase of Securities, all so as to permit the rights of the Holders and
obligations of the Company under Sections 3.8 through 3.12 and 3.14 to be exercised in the time and
in the manner specified therein.

     SECTION 3.14. REPAYMENT TO THE COMPANY.

     To the extent that the aggregate amount of cash deposited by
the Company pursuant to Section 3.10 or 3.11 exceeds the aggregate Change in Control Purchase Price
or Repurchase Price, as applicable, together, in each case with interest, if any, thereon of the
Securities or portions thereof that the Company is obligated to purchase or repurchase, then
promptly after the Change in Control Purchase Date or Repurchase Date, the Trustee or a Paying
Agent, as the case may be, shall return any such excess cash to the Company.

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ARTICLE 4

CONVERSION

     SECTION 4.1.
CONVERSION PRIVILEGE.

     (a) Subject to the further provisions of this Article 4, a
Holder of a Security may convert the principal amount of such Security (or any portion thereof
equal to $1,000 or any integral multiple of $1,000 in excess thereof) into the Principal Return and
Net Share Amount, if any, upon the occurrence of the conditions set forth in (1), (2), (3) or (4),
below, during the time periods indicated therein, at the Conversion Price then in effect:

          (1) Closing Sale Price Condition.

               (A) A Holder may surrender any Securities held by such Holder for conversion (x) prior to
August 15, 2021, during any fiscal quarter, if the Closing Sale Price of the Common Stock, for at
least 20 Trading Days in the period of 30 consecutive Trading Days ending on the last day of the
immediately preceding fiscal quarter, is more than 120% of the Conversion Price on each
corresponding Trading Day or (y) at any time after the Closing Sale Price of the Common Stock on
any date after August 15, 2021 through the Business Day immediately prior to the Final Maturity
Date, is more than 120% of the then current Conversion Price; provided that for the purpose of
Section 4.1(a)(1)(A)(x), the period from the first day of the fiscal quarter that includes August
15, 2021 to August 15, 2021 shall be deemed to be a fiscal quarter prior to August 15, 2021.

               (B) The Conversion Agent, will, on behalf of the Company, determine if the Securities are
convertible as a result of the Closing Sale Price of the Common Stock and notify the Company and
the Trustee. The Conversion Agent shall make this determination and provide the appropriate
notification (x) on and prior to August 15, 2021, on the first Trading Day of each fiscal quarter
and (y) after August 15, 2021, on a daily basis.

          (2) Trading Price Condition.

               (A) A Holder may surrender its Securities for conversion, during the five consecutive Business
Day period following any 10 consecutive Trading Day period in which the average of the Trading
Prices for a Security was less than 98% of the average of the Closing Sale Prices of the Common
Stock for such 10 Trading-Day period (the “Average Sale Price”) multiplied by the applicable
Conversion Rate. If, however, on the Trading Day immediately preceding the Conversion Date, the
Closing Sale Price of the Common Stock is greater than 100% of the Conversion Price but less than
or equal to 120% of the Conversion Price, then Holders converting their Securities will receive
cash with a value equal to 100% of the principal amount of the Securities being converted on the
Conversion Date.

               (B) The Trustee will determine the Trading Price after being requested to do so by the
Company. However, the Company will have no obligation to make that request unless a Holder
provides the Company with reasonable evidence that the Trading Price may be less than 98% of the
Average Sale Price of the Common Stock multiplied by the applicable Conversion Rate for the
applicable period. If a Holder provides such evidence, the Company will instruct the Trustee to
determine the Trading Price of the Securities for the applicable period.

27

 

          (3) Call for Redemption. A Holder may surrender for conversion any Securities called
for redemption at any time prior to the close of business one Business Day prior to the Redemption
Date, even if the Securities are not otherwise convertible at such time. If a Holder has already
delivered a Repurchase Notice or a Change in Control Purchase Notice with respect to a Security at
the time the call for redemption is made, however, the Holder may not surrender such Security for
conversion until the Holder has withdrawn such notice in accordance herewith.

          (4) Specified Corporate Transactions.

               (A) Even if none of the conditions described in subsections (1), (2) and (3), above has
occurred, if the Company elects to: (i) distribute to all holders of Common Stock rights or
warrants entitling such holders to purchase, for a period expiring within 60 days, Common Stock at
less than the Current Market Price (as determined in accordance with subsection 4.6(b)) at the
time, or (ii) distribute to all holders of Common Stock, assets or debt securities of the Company,
or rights or warrants to purchase the Company’s securities, which distribution has a per share
value exceeding 10.0% of the Closing Sale Price of the Common Stock on the Trading Day preceding
the declaration date for such distribution, then in either case (i) and (ii), the Company must
notify the Holders at least 20 days prior to the ex-dividend date for such distribution. Once the
Company has given such notice, Holders may surrender their Securities for conversion at any time
until the earlier of the close of business on the Business Day prior to the ex-dividend date or the
Company’s announcement that such distribution will not take place. No adjustment to the ability of
a Holder to convert will be made if the Holder will otherwise participate in the distribution
without conversion.

               (B) In addition, if the Company is a party to a consolidation, merger or binding share
exchange pursuant to which all or substantially all of the Common Stock would be converted into
cash, securities or other property, a Holder may surrender Securities for conversion at any time
from and after the date that is 15 days prior to the anticipated effective date of the transaction
until 15 days after the actual date of such transaction. If the transaction also constitutes a
Change in Control, the Holder can require the Company to purchase all or a portion of such Holder’s
Securities, as described in Section 3.8.

     (b) The number of shares of Common Stock issuable upon conversion of a Security, if any, shall
be determined by dividing the principal amount of the Security or portion thereof surrendered for
conversion by the Conversion Price in effect on the Conversion Date. The initial Conversion Price
is set forth in paragraph 9 of the Securities and is subject to adjustment as provided in this
Article 4.

     Provisions of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security.

     A Holder of Securities is not entitled to any rights of a holder of Common Stock until such
Holder has converted its Securities to Common Stock, and only to the extent such Securities are
deemed to have been converted into Common Stock pursuant to this Article 4.

     If a Security is called for redemption or submitted for purchase upon a Change in Control
pursuant to Article 3, such conversion right shall terminate at the close of business on the
Business Day immediately preceding the Redemption Date or Change in Control Purchase Date, as the
case may be, for such Security or such earlier date as the Holder presents such Security for
redemption or purchase (unless the Company shall default in making the redemption payment or Change
in Control Purchase Price payment when due, in which case the conversion right shall terminate at
the close of business on the date such default is cured and such Security is redeemed or purchased,
as the case may be).

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     The Company will provide written notice to the Conversion Agent upon the occurrence of any of
the conversion events specified in paragraph (a) of this Section 4.1 (other than Section 4.1(a)(1)
and 4.1(a)(2)).

     SECTION 4.2. CONVERSION PROCEDURE.

     (a) To convert a Security, a Holder must (i) complete and manually sign the conversion notice
on the back of the Security and deliver such notice to a Conversion Agent, (ii) surrender the
Security (if in certificated form) to a Conversion Agent, (iii) furnish appropriate endorsements
and transfer documents if required by a Registrar or a Conversion Agent, and (iv) pay any transfer
or similar tax, if required. The date on which the Holder satisfies all of those requirements is
the “Conversion Date.”

     (b) Anything herein to the contrary notwithstanding, in the case of Global Securities,
conversion notices may be delivered and such Securities may be surrendered for conversion in
accordance with the Applicable Procedures as in effect from time to time.

     (c) To the extent the Company elects to satisfy any of its conversion obligations through
delivery of shares of Common Stock, the person in whose name such Common Stock certificate is
registered shall be deemed to be a stockholder of record on the Conversion Date; provided,
however, that no surrender of a Security on any date when the stock transfer books of the
Company shall be closed shall be effective to constitute the person or persons entitled to receive
the shares of Common Stock upon such conversion as the record holder or holders of such shares of
Common Stock on such date, but such surrender shall be effective to constitute the person or
persons entitled to receive such shares of Common Stock as the record holder or holders thereof for
all purposes at the close of business on the next succeeding day on which such stock transfer books
are open; provided, further, that such conversion shall be at the Conversion Price
in effect on the Conversion Date as if the stock transfer books of the Company had not been closed.
Upon conversion of a Security, such person shall no longer be a Holder of such Security and the
delivery by the Company of the Principal Return and Net Share Amount, if any, upon such conversion
will be deemed to satisfy the Company’s obligation to pay the principal amount of, plus accrued and
unpaid interest on, the Security. Upon conversion, accrued and unpaid interest will be deemed paid
in full rather than canceled, extinguished or forfeited. No payment or adjustment will be made for
dividends or distributions on shares of Common Stock issued upon conversion of a Security.

     (d) Securities so surrendered for conversion (in whole or in part) during the period from the
close of business on any regular record date to the opening of business on the next succeeding
interest payment date (excluding Securities or portions thereof called for redemption on a
Redemption Date, presented for purchase upon a Change in Control on a Change in Control Purchase
Date or presented for repurchase on a Repurchase Date, as the case may be, during the period
beginning at the close of business on a regular record date and ending at the opening of business
on the first Business Day after the next succeeding interest payment date, or if such interest
payment date is not a Business Day, the second such Business Day) shall also be accompanied by
payment in funds acceptable to the Company of an amount equal to the interest payable on such
interest payment date on the principal amount of such Security then being converted, and such
interest shall be payable to such registered Holder notwithstanding the conversion of such
Security, subject to the provisions of this Indenture relating to the payment of defaulted interest
by the Company. Except as otherwise provided in this Section 4.2, no payment or adjustment will be
made for accrued interest on a converted Security, which will be deemed paid upon conversion. If
the Company defaults in the payment of interest payable on such interest payment date, the Company
shall promptly repay such funds to such Holder.

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     (e)
Nothing in this Section shall affect the right of a Holder in whose name any Security is registered at the
close of business on a record date to receive the interest payable on such Security on the related interest payment
date in accordance with the terms of this Indenture and the Securities. If a Holder converts more than one Security
at the same time, the amount of cash to be paid and the number of shares of Common Stock issuable upon the conversion,
if any, shall be based on the aggregate principal amount of Securities converted.

     (f)
Upon surrender of a Security that is converted in part, the Company shall execute, and the Trustee shall authenticate
and deliver to the Holder, a new Security equal in principal amount to the unconverted portion of all Securities so
surrendered.

     (g)
If an Event of Default has occurred and is continuing (other than an Event of Default in a cash payment upon
conversion of the Securities), the Company may not pay cash upon conversion of any Security or a portion of a
Security (other than cash for fractional shares). Any inability or failure to pay cash as a result of the terms
of this Section 4.2(g) shall not result in a Holder being entitled to receive any shares of Common Stock or other equity that it would not otherwise be entitled to receive but for the application of this Section 4.2(g).

     (h)
Anything herein to the contrary notwithstanding, in the case of Global Securities, conversion notices may be
delivered and such Global Securities may be surrendered for conversion in accordance with the Applicable Procedures
as in effect from time to time.

     (i)
The delivery to the Holder of the Principal Return and Net Share Amount, if any, upon conversion of a Security
will be treated as a payment (in an amount equal to the sum of the then fair market value of such Principal Return
and Net Share Amount, if any) on the Security for purposes of the U.S. Treasury regulations governing contingent
payment debt instruments.

     SECTION 4.3. FRACTIONAL SHARES.

     The Company will not issue fractional shares of Common Stock upon conversion of Securities.
In lieu thereof, the Company will pay the cash value of such fractional shares based upon the
Closing Sale Price of the Common Stock on the Trading Day immediately prior to the Conversion Date.

     SECTION 4.4. TAXES ON CONVERSION.

     If a Holder converts a Security and receives part of the Conversion Value in shares of Common
Stock, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the
issue of such shares of Common Stock upon such conversion. However, the Holder shall pay any such
tax which is due because the Holder requests the shares to be issued in a name other than the
Holder’s name. The Conversion Agent may refuse to deliver the certificate representing the Common
Stock being issued in a name other than the Holder’s name until the Conversion Agent receives a sum
sufficient to pay any tax which will be due because the shares are to be issued in a name other
than the Holder’s name. Nothing herein shall preclude any tax withholding required by law or
regulation.

     SECTION 4.5. COMPANY TO PROVIDE STOCK.

     All shares of Common Stock delivered upon conversion of the Securities shall be newly issued
shares or shares issued out of treasury stock, shall be duly authorized, validly issued, fully paid
and nonassessable and shall be free from preemptive rights and free of any lien or adverse claim.

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     The Company will endeavor promptly to comply with all federal and state securities laws
regulating the offer and delivery of shares of Common Stock constituting Net Shares delivered upon
conversion of Securities, if any, and will list or cause to have quoted such shares of Common Stock
on each national securities exchange or on the Nasdaq National Market or other over-the-counter
market or such other market
on which the Common Stock is then listed or quoted; provided, however, that if
rules of such automated quotation system or exchange permit the Company to defer the listing of
such Common Stock until the first conversion of the Securities into such Common Stock in accordance
with the provisions of this Indenture, the Company covenants to list such Common Stock issuable
upon conversion of the Securities in accordance with the requirements of such automated quotation
system or exchange at such time. Any Common Stock issued upon conversion of a Security hereunder
which at the time of conversion was a Restricted Security will also be a Restricted Security.

     SECTION 4.6. ADJUSTMENT OF CONVERSION PRICE.

     (a) The conversion price as stated in paragraph 9 of the Securities (the “Conversion Price”)
shall be adjusted from time to time by the Company as follows:

          (1) Dividends, Distributions, Subdivisions and Combinations. In case the Company
shall: (i) pay a dividend on its Common Stock in shares of Common Stock or make a distribution on
its Common Stock in shares of Common Stock; or (ii) subdivide its outstanding Common Stock into a
greater number of shares, or combine its outstanding Common Stock into a smaller number of shares,
the Conversion Price in effect immediately prior thereto shall be adjusted so that the Holder of
any Security thereafter surrendered for conversion shall be entitled to receive that number of
shares of Common Stock which it would have owned had such Security been converted immediately prior
to the happening of such event. An adjustment made pursuant to this subsection (1) shall become
effective immediately after the record date in the case of a dividend or distribution and shall
become effective immediately after the effective date in the case of subdivision or combination.

          (2) Issuance of Rights or Warrants. In case the Company shall issue rights or
warrants to all or substantially all holders of its Common Stock entitling them (for a period of
not more than 60 days following such issuance) to subscribe for or purchase shares of Common Stock
(or securities convertible into Common Stock) at a price per share (or having a conversion price
per share) less than the Current Market Price per share of Common Stock (as determined in
accordance with subsection (b) of this Section 4.6) on the record date for the determination of
stockholders (the “Rights Determination Date”) entitled to receive such rights or warrants, the
Conversion Price in effect immediately prior thereto shall be adjusted so that the same shall equal
the price determined by multiplying the Conversion Price in effect immediately prior to such Rights
Determination Date by a fraction of which the numerator shall be the number of shares of Common
Stock outstanding on such Rights Determination Date plus the number of shares which the aggregate
offering price of the total number of shares of Common Stock so offered (or the aggregate
conversion price of the convertible securities so offered, which shall be determined by multiplying
the number of shares of Common Stock issuable upon conversion of such convertible securities by the
conversion price per share of Common Stock pursuant to the terms of such convertible securities)
would purchase at the Current Market Price per share (as defined in subsection (b) of this Section
4.6) of Common Stock on such Rights Determination Date, and of which the denominator shall be the
number of shares of Common Stock outstanding on such Rights Determination Date plus the number of
additional shares of Common Stock offered (or into which the convertible securities so offered are
convertible). Such adjustment shall be made successively whenever any such rights or warrants are
issued, and shall become effective immediately after such Rights Determination Date. If at the end
of the period during which such rights or warrants are exercisable not all rights or warrants

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shall
have been exercised, the adjusted Conversion Price shall be immediately readjusted to what it would
have been based upon the number of additional shares of Common Stock actually issued (or the
number of shares of Common Stock issuable upon conversion of convertible securities actually
issued).

          (3) Distributions of Capital Stock, Indebtedness or Other Assets.

               (A) In case the Company shall distribute to all or substantially all holders of its Common
Stock any shares of capital stock of the Company (other than Common Stock), evidences of
indebtedness or other non-cash assets, or rights or warrants (including securities of any person
other than the Company but excluding:

                    (i) dividends or distributions referred to in subsection 4.6(a)(1), above;

                    (ii) rights and warrants referred to in subsection 4.6(a)(2), above;

                    (iii) dividends and distributions referred to in subsection 4.6(a)(4) below; and

                    (iv) distribution of rights to all holders of Common Stock pursuant to the a Rights Plan or
the detachment of such rights under the terms of such Rights Plan),

then in such case the Conversion Price shall be adjusted so that the same shall equal the price
determined by multiplying the current Conversion Price by a fraction of which the numerator shall
be the Current Market Price per share (as defined in subsection (b) of this Section 4.6) of the
Common Stock on the record date for the determination of stockholders entitled to receive such
capital stock, evidences of indebtedness or other non-cash assets (the “Capital Stock Determination
Date”), less the fair market value (as determined by the Board of Directors, whose determination
shall be conclusive evidence of such fair market value and which shall be evidenced by an Officer’s
Certificate delivered to the Trustee) on such Capital Stock Determination Date, of the portion of
the capital stock, evidences of indebtedness or other non-cash assets so distributed or of such
rights or warrants applicable to one share of Common Stock (determined on the basis of the number
of shares of Common Stock outstanding on the Capital Stock Determination Date), and of which the
denominator shall be the Current Market Price per share (as defined in subsection (b) of this
Section 4.6) of the Common Stock on such Capital Stock Determination Date. Such adjustment shall
be made successively whenever any such distribution is made and shall become effective immediately
after the Capital Stock Determination Date.

               (B) In the event the then fair market value (as so determined) of the portion of the capital
stock, evidences of indebtedness or other non-cash assets so distributed or of such rights or
warrants applicable to one share of Common Stock is equal to or greater than the Current Market
Price per share of the Common Stock on such Capital Stock Determination Date, in lieu of the
foregoing adjustment, adequate provision shall be made so that each holder of a Security shall have
the right to receive upon conversion the amount of capital stock, evidences of indebtedness or
other non-cash assets so distributed or of such rights or warrants such holder would have received
had such holder converted each Security on such Capital Stock Determination Date. In the event
that such distribution is not so paid or made, the Conversion Price shall again be adjusted to be
the Conversion Price that would then be in effect if such dividend or distribution had not been
declared. If the Board of Directors determines the fair market value of any distribution for
purposes of this Section 4.6(a)(3) by reference to the actual or when issued trading market for

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any
securities, it must in doing so consider the prices in such market over the same period used in
computing the Current Market Price of the Common Stock.

          (4) Cash Dividends or Distributions.

               (A) If the Company shall, by dividend or otherwise, make one or more dividends or
distributions in cash during any fiscal quarter of the Company to all or substantially all holders
of its Common Stock, in an aggregate amount that, together with the aggregate amount of all other
cash dividends or distributions made during such fiscal quarter to all or substantially all holders
of its Common Stock exceeds the product of $0.0133 (appropriately adjusted from time to time for
any stock dividends on or subdivisions or combinations of the Common Stock) multiplied by the
number of shares of Common Stock outstanding on the record date for determination of stockholders
entitled to receive the dividend or distribution (the “Dividend Determination Date” and together
with the Rights Determination Date and Capital Stock Determination Date, each a “Determination
Date”) (excluding shares held in the treasury of the Company), then in such case the Conversion
Price shall be adjusted so that the same shall equal the price determined by multiplying such
Conversion Price in effect immediately prior to the Dividend Determination Date by a fraction of
which the numerator shall be the Current Market Price per share of the Common Stock and the
denominator of which shall be the Current Market Price per share of the Common Stock plus the
amount per share of such dividend or distribution, to the extent it exceeds $0.0133 per share
(appropriately adjusted from time to time for any stock dividends on or subdivisions or
combinations of Common Stock). The adjustment will be made successively whenever any such event
occurs.

          (5) Tender Offer.

               (A) In case any tender offer made by the Company or any of its Subsidiaries for Common Stock
shall expire and such tender offer (as amended upon the expiration thereof) shall involve the
payment of aggregate consideration in an amount (determined as the sum of the aggregate amount of
cash consideration and the aggregate fair market value (as determined by the Board of Directors,
whose determination shall be conclusive evidence thereof and which shall be evidenced by an
Officers’ Certificate delivered to the Trustee thereof) of any other consideration) that, together
with the aggregate amount of:

                    (i) any cash and the fair market value (as determined by the Board of Directors, whose
determination shall be conclusive evidence thereof and which shall be evidenced by an Officers’
Certificate delivered to the Trustee) of any other consideration payable in respect of any other
tender offers by the Company or any Subsidiary of the Company for Common Stock consummated within
the 12 months preceding the date of the Expiration Date (as defined below) and in respect of which
no Conversion Price adjustment pursuant to this Section 4.6 has been made; and

                    (ii) all cash distributions to all or substantially all holders of its Common Stock made
within the 12 months preceding the Expiration Date and in respect of which no Conversion Price
adjustment pursuant to this Section 4.6 has been made,

exceeds an amount equal to 10.0% of the product of the Current Market Price per share of Common
Stock (as determined in accordance with subsection (b) of this Section 4.6) as of the last date
(the “Expiration Date”) tenders could have been made pursuant to such tender offer (as it may be
amended) (the last time at which such tenders could have been made on the Expiration Date is
hereinafter sometimes called the “Expiration Time”) multiplied by the number of shares of Common
Stock outstanding (including tendered shares but excluding any shares held in the treasury of the
Company) at the Expiration Time, then, immediately prior to

33

 

the opening of business on the day
after the Expiration Date, the Conversion Price shall be reduced so that the same shall equal the
price determined by multiplying the Conversion Price in effect immediately prior to close of
business on the Expiration Date by a fraction of which the numerator shall be the product of the
number of shares of Common Stock outstanding (including tendered shares but excluding any shares
held in the treasury of the Company) at the Expiration Time multiplied by the Current Market Price
per share of the Common Stock (as determined in accordance with subsection (b) of this Section 4.6)
on the Trading Day next succeeding the Expiration Date and the denominator shall be the sum of (x)
the aggregate consideration (determined as aforesaid) payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender offer) of all shares validly
tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such
maximum, being referred to as the “Purchased Shares”) and (y) the product of the number of shares
of Common Stock outstanding (less any Purchased Shares and excluding any shares held in the
treasury of the Company) at the Expiration Time and the Current Market Price per share of Common
Stock (as determined in accordance with subsection (b) of this Section 4.6) on the Trading Day next
succeeding the Expiration Date, such reduction to become effective immediately prior to the opening
of business on the day following the Expiration Date. In the event that the Company is obligated
to purchase shares pursuant to any such tender offer, but the Company is permanently prevented by
applicable law from effecting any or all such purchases or any or all such purchases are rescinded,
the Conversion Price shall again be adjusted to be the Conversion Price which would have been in
effect based upon the number of shares actually purchased. If the application of this Section
4.6(a)(5) to any tender offer would result in an increase in the Conversion Price, no adjustment
shall be made for such tender offer under this Section 4.6(a)(5).

               (B) For purposes of this Section 4.6(a)(5), the term “tender offer” shall mean and include
both tender offers and exchange offers, all references to “purchases” of shares in tender offers
(and all similar references) shall mean and include both the purchase of shares in tender offers
and the acquisition of shares pursuant to exchange offers, and all references to “tendered shares”
(and all similar references) shall mean and include shares tendered in both tender offers and
exchange offers.

     (b) The term “Current Market Price” shall mean (i) for the purpose of any computation under
subsection 4.1(a)(4), 4.6(a)(2), 4.6(a)(3) or 4.6(a)(5), the Current Market Price per share of
Common Stock on any date shall be deemed to be the average of the daily Closing Sale Prices for the
30 consecutive Trading Days commencing 45 Trading Days before the Determination Date or Expiration
Date, as the case may be, and (ii) for the purpose of any computation under subsection 4.6(a)(4),
the Current Market Price per share of Common Stock shall be deemed to be the average of the daily
Closing Sale Prices per share of Common Stock for the first ten Trading Days from and including the
first date that the Common Stock trades ex-dividend.

     In the event of a Conversion Price adjustment pursuant to subsections 4.6(a)(3) or (4), above,
the Conversion Price may not be adjusted to be less than $36.03 (the “Minimum Conversion Price”);
notwithstanding the foregoing, in the event of a Conversion Price adjustment pursuant to
subsections 4.6(a)(1), (2) or (5), above, the Minimum Conversion Price will be adjusted in
proportion to such adjustment in the Conversion Price.

     (c) Rights Plans.

           (1) In the event that the Company implements a new preferred shares rights plan or any similar
plan (a “Rights Plan”), or the Company’s current Rights Plan is still in effect, upon conversion of
the Securities, to the extent that any such Rights Plan has been implemented and is still in effect
upon such

34

 

conversion, the holders of Securities will receive, in addition to any Common Stock which
they receive upon conversion, the rights described therein (whether or not the rights have
separated from the Common Stock at the time of conversion), subject to the limitations set forth in
the Rights Plan. Any distribution of rights or
warrants pursuant to a Rights Plan complying with the requirements set forth in the
immediately preceding sentence of this paragraph shall not constitute a distribution of rights or
warrants pursuant to this Section 4.6. If at the time a Holder converts its Securities or until
the end of the Applicable Conversion Reference Period the rights have previously detached from the
Common Stock and the Applicable Stock Price has been adversely impacted in a manner such that the
value of the Principal Return and Net Share Amount, if any, received by a Holder upon conversion is
inconsistent with the purpose of this provision, then the Applicable Stock Price shall be the fair
value of a share of Common Stock as reasonably determined in good faith by the Board of Directors
(whose determination shall be conclusive), adjusted appropriately to reflect the value of the
rights.

          (2) Rights or warrants (or other rights issued pursuant to a Rights Plan) distributed by the
Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase
shares of the Company’s Capital Stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i) are
deemed to be transferred with such shares of Common Stock; (ii) are not exercisable; and (iii) are
also issued in respect of future issuances of Common Stock, shall be deemed not to have been
distributed for purposes of this Section 4.6 (and no adjustment to the Conversion Price under this
Section 4.6 will be required) until the occurrence of the earliest Trigger Event, whereupon such
rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any
is required) to the Conversion Price shall be made under this Section 4.6. If any such right or
warrant, including any such existing rights or warrants distributed prior to the date of this
Indenture, are subject to events, upon the occurrence of which such rights or warrants become
exercisable to purchase different securities, evidences of indebtedness or other assets, then the
date of the occurrence of any and each such event shall be deemed to be the date of distribution
and record date with respect to new rights or warrants with such rights (and a termination or
expiration of the existing rights or warrants without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any
Trigger Event or other event (of the type described in the preceding sentence) with respect thereto
that was counted for purposes of calculating a distribution amount for which an adjustment to the
Conversion Price under this Section 4.6 was made, (1) in the case of any such rights or warrants
which shall all have been redeemed or repurchased without exercise by any holders thereof, the
Conversion Price shall be readjusted upon such final redemption or repurchase to give effect to
such distribution or Trigger Event, as the case may be, as though it were a cash distribution,
equal to the per share redemption or repurchase price received by a holder or holders of Common
Stock with respect to such rights or warrants (assuming such holder had retained such rights or
warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and
(2) in the case of such rights or warrants which shall have expired or been terminated without
exercise by any holders thereof, the Conversion Price shall be readjusted as if such rights and
warrants had not been issued.

     (d) In any case in which this Section 4.6 shall require that an adjustment be made following a
record date or a Determination Date or Expiration Date, as the case may be, established for
purposes of this Section 4.6, the Company may elect to defer (but only until five Business Days
following the filing by the Company with the Trustee of the certificate described in Section 4.9)
issuing to the Holder of any Security converted after such record date or Determination Date or
Expiration Date the shares of Common Stock and other capital stock of the Company issuable upon
such conversion over and above the shares of Common Stock and other capital stock of the Company
issuable upon such conversion only on the basis of the Conversion Price prior to adjustment; and,
in lieu of the shares the issuance of which is so deferred, the

35

 

Company shall issue or cause its
transfer agents to issue due bills or other appropriate evidence prepared by the Company of the
right to receive such shares. If any distribution in respect of which an adjustment to the
Conversion Price is required to be made as of the record date or Determination Date or Expiration
Date
therefor is not thereafter made or paid by the Company for any reason, the Conversion Price
shall be readjusted to the Conversion Price which would then be in effect if such record date had
not been fixed or such effective date or Determination Date or Expiration Date had not occurred.

     SECTION 4.7. NO ADJUSTMENT.

     No adjustment in the Conversion Price shall be required unless the adjustment would require an
increase or decrease of at least 1% in the Conversion Price as last
adjusted; provided, however,
that any adjustments which by reason of this Section 4.7 are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All calculations under this
Article 4 shall be made to the nearest one-hundredth of a cent or to the nearest one-ten-thousandth
of a share, as the case may be.

     Except pursuant to Section 4.6 and 4.7, no adjustment need be made for issuances of Common
Stock or any securities convertible or exchangeable for Common Stock or the right to purchase
Common Stock or such convertible or exchangeable securities, including pursuant to a Company plan
for reinvestment of dividends or interest or for a change in the par value or a change to no par
value of the Common Stock.

     To the extent that the Securities become convertible into the right to receive cash, no
adjustment need be made thereafter as to the cash. Interest will not accrue on the cash.

     No adjustment to the Conversion Price will be made to account for accrued interest or
Contingent Interest.

     SECTION 4.8. ADJUSTMENT FOR TAX PURPOSES.

     The Company shall be entitled to make such reductions in the Conversion Price, in addition to
those required by Section 4.6, as it in its discretion shall determine to be advisable in order
that any stock dividends, subdivisions of shares, distributions of rights to purchase stock or
securities or distributions of securities convertible into or exchangeable for stock hereafter made
by the Company to its stockholders shall not be taxable.

     SECTION 4.9. NOTICE OF ADJUSTMENT.

     Whenever the Conversion Price or conversion privilege is adjusted, the Company shall promptly
mail to Securityholders a notice of the adjustment and file with the Trustee an Officers’
Certificate briefly stating the facts requiring the adjustment and the manner of computing it.
Unless and until the Trustee shall receive an Officers’ Certificate setting forth an adjustment of
the Conversion Price, the Trustee may assume without inquiry that the Conversion Price has not been
adjusted and that the last Conversion Price of which it has knowledge remains in effect.

     SECTION 4.10. NOTICE OF CERTAIN TRANSACTIONS.

     In the event that:

          (1) the Company takes any action which would require an adjustment in the Conversion Price;

36

 

          (2) the Company consolidates or merges with, or transfers all or substantially all of its
property and assets to, another corporation and shareholders of the Company must approve the
transaction; or

          (3) there is a dissolution or liquidation of the Company,

the Company shall mail to Holders and file with the Trustee a notice stating the proposed record or
effective date, as the case may be. The Company shall mail the notice at least ten days before
such date. Failure to mail such notice or any defect therein shall not affect the validity of any
transaction referred to in clause (1), (2) or (3) of this Section 4.10.

     SECTION 4.11. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON CONVERSION
PRIVILEGE.

     If any of the following shall occur, namely: (a) any reclassification or change of shares of
Common Stock issuable upon conversion of the Securities (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination, or any other change for which an adjustment is provided in Section 4.6); (b) any
consolidation or merger or combination to which the Company is a party other than a merger in which
the Company is the continuing corporation and which does not result in any reclassification of, or
change (other than in par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination) in, outstanding shares of Common Stock; or
(c) any sale or conveyance as an entirety or substantially as an entirety of the property and
assets of the Company, directly or indirectly, to any Person, then the Company, or such successor,
purchasing or transferee Person, as the case may be, shall, as a condition precedent to such
reclassification, change, combination, consolidation, merger, sale or conveyance, execute and
deliver to the Trustee a supplemental indenture providing that the Holder of each Security then
outstanding shall have the right, subject to Section 4.14, to convert such Security into the kind
and amount of shares of stock and other securities and property (including cash) receivable upon
such reclassification, change, combination, consolidation, merger, sale or conveyance by a holder
of the number of shares of Common Stock deliverable upon conversion of such Security (if such
Security were convertible into shares of Common Stock instead of into the Principal Return and Net
Share Amount) immediately prior to such reclassification, change, combination, consolidation,
merger, sale or conveyance. Such supplemental indenture shall provide for adjustments of the
Conversion Price and other provisions (including related defined terms and Section 4.14) , which
shall be as nearly equivalent as may be practicable to the adjustments of the Conversion Price and
other provisions (including related defined terms and Section 4.14) provided for in this Article 4.
If, in the case of any such consolidation, merger, combination, sale or conveyance, the stock or
other securities and property (including cash) receivable thereupon by a holder of Common Stock
include shares of stock or other securities and property of a Person other than the successor,
purchasing or transferee Person, as the case may be, in such consolidation, merger, combination,
sale or conveyance, then such supplemental indenture shall also be executed by such other Person
and shall contain such additional provisions to protect the interests of the Holders of the
Securities as the Board of Directors shall reasonably consider necessary by reason of the
foregoing. The provisions of this Section 4.11 shall similarly apply to successive
reclassifications, changes, combinations, consolidations, mergers, sales or conveyances.

     In the event the Company shall execute a supplemental indenture pursuant to this Section 4.11,
the Company shall promptly file with the Trustee (x) an Officers’ Certificate briefly stating the
reasons therefor, the kind or amount of shares of stock or other securities or property (including
cash) receivable by Holders of the Securities upon the conversion of their Securities after any
such reclassification, change, combination, consolidation, merger, sale or conveyance, any
adjustment to be made with respect thereto and that all

37

 

conditions precedent have been complied
with and (y) an Opinion of Counsel that all conditions precedent have been complied with, and shall
promptly mail notice thereof to all Holders.

     SECTION 4.12. TRUSTEE’S DISCLAIMER.

     The Trustee shall have no duty to determine when an adjustment under this Article 4 should be
made, how it should be made or what such adjustment should be, but may accept as conclusive
evidence of that fact or the correctness of any such adjustment, and shall be protected in relying
upon, an Officers’ Certificate including the Officers’ Certificate with respect thereto which the
Company is obligated to file with the Trustee pursuant to Section 4.9. The Trustee makes no
representation as to the validity or value of any securities or assets issued upon conversion of
Securities, and the Trustee shall not be responsible for the Company’s failure to comply with any
provisions of this Article 4.

     The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section 4.11, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying
upon, the Officers’ Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 4.11.

     SECTION 4.13. VOLUNTARY REDUCTION.

     The Company from time to time may reduce the Conversion Price by any amount for any period of
time if the period is at least 20 days and if the reduction is irrevocable during such period (i)
if the Board of Directors determines that such reduction would be in the best interest of the
Company or to avoid or diminish income tax to holders of shares of Common Stock in connection with
a dividend or distribution of stock or similar event, and (ii) the Company provides 15 days prior
notice of any reduction in the Conversion Price; provided,
however, that in no event may the
Company reduce the Conversion Price to be less than the par value of a share of Common Stock.

     SECTION 4.14. PAYMENT UPON CONVERSION

     (a) Subject to Article 5, Section 4.1(a)(2) and Section 4.6(c)(1), if a Holder surrenders its
Securities for conversion, the Company shall deliver (the “Conversion Obligation”), in respect of
each $1,000 principal amount of Securities surrendered for conversion:

     (i) cash in an amount (the “Principal Return”) equal to the lesser of (A) the
principal amount of such Security and (B) the Conversion Value; and

     (ii) if the Conversion Value is greater than the principal amount of each
Security, a number of shares of Common Stock (the “Net Shares”) equal to the sum of
the Daily Share Amounts for each Trading Day during the Applicable Conversion
Reference Period (the “Net Share Amount”); provided that, in lieu of the delivery of Net Shares, the
Company may, at its option, deliver cash or a combination of cash and shares of
Common Stock with a value equal to the value of the Net Share Amount.

     The Daily Share Amounts shall be calculated using the Closing Sale Price of the Common Stock
on each Trading Day. References herein to “Net Share Amount” shall be deemed to be references to
such amount in cash or combination of cash and Common Stock, as applicable. The value of the Net
Share Amount shall equal the sum of the Daily Share Amount for each Trading Day during the
Applicable

38

 

Conversion Reference Period multiplied by such day’s Closing Sale Price. The Company
shall pay cash in lieu of fractional Net Shares issuable upon conversion determined in accordance
with Section 4.3.

     The Conversion Value, Principal Return and Net Share Amount will be determined by the Company
promptly after the end of the Applicable Conversion Reference Period. The Company will pay the
Principal Return and cash for fractional shares and deliver and/or pay the Net Share Amount, as
applicable, no later than the third Business Day following the determination of the Applicable
Stock Price. The Company will not issue fractional shares upon conversion. In the event that any
of the Conversion Value, Daily Share Amounts or Closing Price, or the number of Net Shares to be
issued and amount of cash to be paid in respect of the Net Shares, is not calculable for all
portions of the Applicable Conversion Reference Period or the calculations do not produce results
consistent with the purpose of this provision, the Company’s Board of Directors shall in good faith
determine (whose determination shall be conclusive) the values and algorithms necessary to
calculate the Conversion Value, Daily Shares Amounts, and Closing Price, as applicable.

     In the event of a conversion upon a Change in Control transaction where the calculation of the
Daily Share Amount would not be possible because the Company’s Common Stock has ceased to be
publicly traded, if Holders of Common Stock receive only cash in such transaction, the Closing Sale
Price will be the cash amount paid per share. Otherwise, the Closing Sale Price will be the
average of the Closing Sale Prices of the Company’s Common Stock on each of the ten consecutive
Trading Days immediately prior to, but not including, the effective date of such Change in Control.

     In the event of a stock split, combination, dividend or any other event resulting in a
Conversion Price adjustment pursuant to Section 4.6(a) during the Applicable Conversion Reference
Period, appropriate adjustment to the equation for calculating Conversion Value and Net Share
Amount shall be made, as determined by the Board of Directors of the Company.

     (b) In the event a Holder converts its Securities in connection with a Change in Control at
any time during the period beginning on the date that the Company gives a Make-Whole Premium Upon
Conversion Notice and ending on the close of business on the second Trading Day immediately
preceding the Change in Control Purchase Date for such Change in Control, such Holder will receive:

     (i) the consideration described in Section 4.14(a); plus

     (ii) if such Change in Control occurs prior to August 15, 2008, the Make-Whole
Premium, if any, in an amount and in a form, and payable on the relevant date, as
determined pursuant to Article 5.

     (c) Notwithstanding Section 4.14(b), in the case of a Public Acquirer Change in Control, the
Company may, in substitution of providing the consideration described in Section 4.14(b), elect to
change the Conversion Obligation in connection with such Public Acquirer Change in Control by
providing notice to Holders and the Trustee of such election (a “Public Acquirer Change in Control Notice”) not
less than 10 Trading Days prior to the anticipated effective date of a Public Acquirer Change in
Control known to the Company (or, if not known to the Company prior to such tenth Trading Day,
within two Trading Days of when the Company becomes aware of such Public Acquirer Change in
Control). In the event the Company provides such Public Acquirer Change in Control Notice, from and
after the effective date of such Public Acquirer Change in Control, Holders of Securities will be
entitled to convert their Securities, subject to this Section 4.14, into cash and shares of Public
Acquirer Common Stock (as defined below) based on an adjusted

39

 

Conversion Price determined by
dividing the Conversion Price in effect immediately before the Public Acquirer Change in Control by
a fraction:

     (i) the numerator of which will be (x) in the case of a share exchange,
consolidation or merger pursuant to which the Common Stock is converted into cash,
securities or other property the average value of all cash and other consideration
(as determined by the Board of Directors) paid or payable per share of Common Stock
in connection with such Public Acquirer Change in Control or (y) in the case of any
other Public Acquirer Change in Control, the average of the Closing Sale Prices of
the Common Stock, in each case for the five consecutive Trading Days prior to but
excluding either (A) the effective date of such Public Acquirer Change in Control or
(B) if later, the sixth Trading Day after the date a Public Acquirer Change in
Control Notice is given, and

     (ii) the denominator of which will be the average of the Closing Sale Prices of
the Public Acquirer Common Stock for the five consecutive Trading Days prior to, but
excluding, either (i) the effective date of such Public Acquirer Change in Control or
(y) if later, the sixth Trading Day after the date a Public Acquirer Change in
Control Notice is given.

     In the event the Company has provided a Public Acquirer Change in Control Notice, Holders
shall, during the time periods for conversion specified under Section 4.1(a)(4)(B), have the right
to convert their Securities (subject to satisfaction of the conditions to conversion in Section 4.1
and subject to the change in conversion rights that become effective on the effective date of a
Public Acquirer Change in Control), and will be entitled to receive the Conversion Obligation
pursuant to Section 4.14(a); provided, however, that such Holders shall not be
entitled to receive the Make-Whole Premium. In addition, Holders may also require the Company to
repurchase all or a portion of their Securities as provided in Section 3.8. In the event the
Company has provided a Public Acquirer Change in Control Notice, any Holder that does not elect to
convert its Securities prior to the effective date of the applicable Public Acquirer Change in
Control will (unless such Securities are repurchased on such Change in Control Purchase Date)
thereafter hold Securities convertible at any time into cash and shares of Public Acquirer Common
Stock, if any, at the adjusted Conversion Price specified in this Section 4.14(c). On and after
the effective date of such Public Acquirer Change in Control, the relevant Public Acquirer Change
in Control will not constitute a Change in Control for purposes of determining the Conversion
Value, Net Share Amount or Principal Return.

     On or prior to the effective date of such Public Acquirer Change in Control, the acquirer
shall enter into an indenture supplement hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, expressly assuming and implementing the performance of this Section
4.14(c) by such acquirer and modifying such other provisions of this Indenture as may be necessary
or appropriate in connection with such Public Acquirer Change in Control.

     “Public Acquirer Change in Control” means any event constituting a Change in Control and the
acquirer has a class of common stock traded on a U.S. national securities exchange or quoted on the
Nasdaq National Market or which will be so traded or quoted when issued or exchanged in connection
with a transaction constituting a Change in Control (the “Public Acquirer Common Stock”). If an
acquirer does not itself have a class of common stock satisfying the foregoing requirement, it will
be deemed to have “Public Acquirer Common Stock” if either (1) a direct or indirect majority owned
subsidiary of the acquirer or (2) a corporation that directly or indirectly owns at least a
majority of the acquirer, has a class of common stock satisfying the foregoing requirement. In such
case, all references to Public Acquirer Common Stock shall

40

 

refer to such class of common stock.
Majority owned for these purposes means having “beneficial ownership” (as defined in Rule 13d-3
under the Exchange Act) of more than 50% of the total voting power of all shares of the respective
entity’s capital stock that are entitled to vote generally in the election of directors.

ARTICLE 5

MAKE-WHOLE PREMIUM

     SECTION 5.1. MAKE-WHOLE PREMIUM.

     (a) If a Change in Control occurs prior to August 15, 2008, the Company shall pay the
Make-Whole Premium to Holders of the Securities who convert their Securities at any time during the
period beginning on the date that the Company provides the Make-Whole Premium Upon Conversion
Notice and ending at 5:00 p.m., New York City time, on the second Trading Day immediately preceding
the Change in Control Purchase Date; provided, however, that no payment of the
Make-Whole Premium will be made (i) in the case of a Change in Control if at least 90% of the
consideration paid or payable for the Company’s Common Stock (excluding cash payments for
fractional shares and cash payments made pursuant to dissenters’ appraisal rights) in such Change
in Control transaction consists of shares of Capital Stock traded on the New York Stock Exchange or
another U.S. national securities exchange or quoted on The Nasdaq Stock Market or a successor
automated over-the-counter trading market in the United States (or that will be so traded or quoted
immediately following the transaction), or (ii) if the Company has provided a Public Acquirer
Change in Control Notice as described in Section 4.14(c). The Make-Whole Premium will be in
addition to, and not in substitution for, any cash, securities or other assets otherwise due to
Holders of Securities upon conversion as described in this Indenture.

     The Company shall mail a written notice to the Trustee and each Holder (and to beneficial
owners as required by law) (i) at least ten Trading Days prior to the anticipated effective date of
a Change in Control known to the Company that gives rise to the obligation to pay the Make-Whole
Premium (or if not known to the Company prior to such tenth Trading Day, then within two Trading
Days after the Company becomes aware of such Change in Control) of such anticipated effective date,
which shall state that, as a result, Holders of Securities shall be entitled to the Make-Whole
Premium (the “Make-Whole Premium Upon Conversion Notice”) upon conversion as described in Section
5.1(a) and (ii) within 15 days after such Change in Control has become effective (the “Change in
Control Company Notice”); provided, however, that the Company shall not provide a
Make-Whole Premium Upon Conversion Notice (i) if at least 90% of the consideration paid or payable
for the Company’s Common Stock (excluding cash payments for fractional shares and cash payments
made pursuant to dissenters’ appraisal rights) in such Change in Control transaction consists of
shares of Capital Stock traded on the New York Stock Exchange or another U.S. national securities
exchange or quoted on The Nasdaq Stock Market or a successor automated over-the-counter trading
market in the United States (or that will be so traded or quoted immediately following the
transaction), or (ii) if the Company has provided a Public Acquirer Change in Control Notice as
described in Section 4.14(c).

     In the event the Company does not provide the Make-Whole Premium Upon Conversion Notice within
10 Business Days after the occurrence of a Change in Control in which the Make-Whole Premium would
be payable, the Company shall be deemed, for purposes of the first sentence of the first paragraph
of Section 5.1(a), to have provided such notice on the tenth Business Day after the occurrence of
such Change in Control.

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     (b) The make-whole premium (the “Make-Whole Premium”) for each $1,000 principal amount of
Securities shall be equal to an amount determined by multiplying (x) the percentage determined by
reference to the table below based on the Effective Date and Share Price by (y) $1,000.

     (i) “Effective Date” means the date that a Change in Control becomes effective.

     (ii) “Stock Price” means the price paid (or deemed to be paid) per share of Common
Stock in the transaction constituting the Change in Control, determined as follows:

               (A) if holders of the Common Stock receive only cash in the Change in Control, the Stock Price
shall be the cash amount paid per share of Common Stock; or

               (B) otherwise, the Stock Price shall be the average Closing Sale Price of the Common Stock for
the five Trading Days immediately preceding, but not including, the Effective Date.

     (iii) The following table (the “Make-Whole Premium Table”) sets forth the hypothetical
Stock Price, Effective Date and percentage (to be applied to each $1,000 principal amount of
Securities) for determining the Make-Whole Premium upon a Change in Control. The Stock
Prices set forth in the first column of the table are subject to adjustment in accordance
with Section 5.2.

Make-Whole Premium Applicable to the Securities Upon Change in Control

(Percentage of Principal Amount)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	February 25,	 	 	August 15,	 	 	August 15,	 	 	August 15,	 	 	August 15,	 
	 	 	2005	 	 	2005	 	 	2006	 	 	2007	 	 	2008	 
	$32.50
	 	 	26.1	 	 	 	26.1	 	 	 	26.1	 	 	 	26.1	 	 	 	26.1	 
	$35.00
	 	 	22.8	 	 	 	22.6	 	 	 	22.1	 	 	 	20.4	 	 	 	20.4	 
	$40.00
	 	 	17.8	 	 	 	17.3	 	 	 	15.8	 	 	 	12.9	 	 	 	9.0	 
	$45.00
	 	 	14.1	 	 	 	13.3	 	 	 	11.2	 	 	 	7.9	 	 	 	0.0	 
	$50.00
	 	 	11.3	 	 	 	10.4	 	 	 	8.0	 	 	 	4.7	 	 	 	0.0	 
	$55.00
	 	 	9.2	 	 	 	8.2	 	 	 	5.9	 	 	 	2.8	 	 	 	0.0	 
	$60.00
	 	 	7.6	 	 	 	6.6	 	 	 	4.4	 	 	 	1.7	 	 	 	0.0	 
	$65.00
	 	 	6.4	 	 	 	5.5	 	 	 	3.4	 	 	 	1.1	 	 	 	0.0	 
	$70.00
	 	 	5.5	 	 	 	4.6	 	 	 	2.8	 	 	 	0.8	 	 	 	0.0	 
	$75.00
	 	 	4.8	 	 	 	4.0	 	 	 	2.3	 	 	 	0.6	 	 	 	0.0	 
	$80.00
	 	 	4.3	 	 	 	3.5	 	 	 	2.0	 	 	 	0.6	 	 	 	0.0	 
	$85.00
	 	 	3.8	 	 	 	3.2	 	 	 	1.8	 	 	 	0.5	 	 	 	0.0	 
	$90.00
	 	 	3.5	 	 	 	2.9	 	 	 	1.6	 	 	 	0.5	 	 	 	0.0	 
	$95.00
	 	 	3.2	 	 	 	2.7	 	 	 	1.5	 	 	 	0.5	 	 	 	0.0	 
	$100.00
	 	 	3.0	 	 	 	2.5	 	 	 	1.4	 	 	 	0.4	 	 	 	0.0	 
	$110.00
	 	 	2.7	 	 	 	2.2	 	 	 	1.3	 	 	 	0.4	 	 	 	0.0	 
	$120.00
	 	 	2.4	 	 	 	2.0	 	 	 	1.2	 	 	 	0.4	 	 	 	0.0	 
	$130.00
	 	 	2.2	 	 	 	1.8	 	 	 	1.1	 	 	 	0.3	 	 	 	0.0	 
	$140.00
	 	 	2.0	 	 	 	1.7	 	 	 	1.0	 	 	 	0.3	 	 	 	0.0	 
	$150.00
	 	 	1.8	 	 	 	1.5	 	 	 	0.9	 	 	 	0.3	 	 	 	0.0	 

     The exact Stock Price and Effective Dates may not be set forth on the Make-Whole Premium
Table, in which case:

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	 	•  	if the Stock Price is between two Stock Prices on the table or the Effective Date is
between two Effective Dates on the table, the Make-Whole Premium shall be determined by
straight-line interpolation between the Make-Whole Premium amounts set forth for the
higher and lower Stock Prices and the two Effective Dates, as applicable, based on a
365- or 366-day year, as applicable;
	 
	 	•  	if the Stock Price is less than $32.50 (subject to adjustment in accordance with to
Section 5.2) (the “Stock Price Threshold”), no Make-Whole Premium will be paid; and
	 
	 	•  	if the Stock Price is in excess of $150.00 (subject to adjustment in accordance with
Section 5.2) (the “Stock Price Cap”), no Make-Whole Premium will be paid.

     (c) The Company shall pay the Make-Whole Premium solely in shares of Common Stock (other than
cash paid in lieu of fractional shares) or in the same form of consideration into which all or
substantially all of the shares of Common Stock have been converted or exchanged in connection with
the Change in Control (other than cash paid in lieu of fractional interests in any security or
other property delivered in connection with such Change in Control) on the Change in Control
Purchase Date for the Securities after the Change in Control as provided in Section 3.8. If
holders of the Common Stock receive or have the right to receive more than one form of
consideration in connection with such Change in Control, then, for purposes of the foregoing, the
forms of consideration in which the Make-Whole Premium shall be paid shall be in proportion to the
relative value, determined in accordance with Section 5.1(d), of the different forms of
consideration paid to holders of Common Stock in connection with such Change in Control.

     (d) The value of the shares of Common Stock or other consideration for purposes of determining
the number of shares of Common Stock or other consideration to be issued or delivered, as the case
may be, in respect of the Make-Whole Premium shall be calculated as follows:

     (i)
in the case of a Change in Control in which all or substantially all of the
shares of Common Stock have been, as of the Effective Date, converted into or
exchanged for the right to receive securities or other assets or property (including
cash), the consideration shall be valued as follows:

     (A) securities that are traded on a U.S. national securities exchange or
approved for quotation on the Nasdaq National Market or any similar system of
automated dissemination of quotations of securities prices shall be valued at
98% of the average Closing Sale Price for the five Trading Days immediately
prior to but excluding the Change in Control Purchase Date,

     (B) other securities, assets or property (other than cash) that holders
will have the right to receive shall be valued based on 98% of the average of
the fair market value of such securities, assets or property (other than
cash) as determined on
the Business Day immediately prior to the Change in Control Purchase
Date by two independent nationally recognized investment banks selected by
the Trustee, and

     (C) 100% of any cash.

     (ii) in all other cases, the value of each share of Common Stock shall equal 98%
of the average of the Closing Sale Prices of the Common Stock for the five
consecutive Trading Days immediately prior to but excluding the Change in Control
Purchase Date.

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     (e) A Calculation Agent appointed from time to time by the Company shall, on behalf of and on
request by the Company, calculate (A) the Stock Price and (B) the Make-Whole Premium with respect
to such Stock Price, based on the Effective Date specified by the Company, and shall deliver its
calculation of the Stock Price and Make-Whole Premium to the Company and the Trustee within three
Business Days of the request by the Company or the Trustee. In addition, the Calculation Agent
shall, on behalf of and upon request by the Company or the Trustee, make the determinations
described in Section 5.1(d)(i) and 5.1(d)(ii) above and deliver its calculations to the Company or
the Trustee by 9:00 p.m., New York City time, on the Business Day immediately prior to the Change
in Control Purchase Date. The Company or, at the Company’s request, the Trustee, in the name and
at the expense of the Company, shall notify the Holders in accordance with Section 12.2 on the
Change in Control Purchase Date of (x) the Make-Whole Premium per $1,000 principal amount of
Securities and (y) the number of shares of Common Stock (or such other securities, assets or
property (including cash) into which all or substantially all of the shares of Common Stock have
been converted as of the Effective Date as described above) to be paid in respect of the Make-Whole
Premium in connection with such Change in Control, in the manner provided in this Indenture. Any
notice so given shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. The Company shall verify, in writing, to the Trustee all calculations made
by the Calculation Agent pursuant to this Section 5.1(e). A Calculation Agent shall have the same
rights as an Agent to deal with the Company or an Affiliate of the Company. The Trustee shall not
be responsible for any of the aforementioned calculations and shall be entitled to rely on an
Officer’s Certificate with respect to the same.

     (f) For purposes of determining whether at least 90% of the consideration paid or payable for
the Company’s Common Stock (excluding cash payments for fractional shares and cash payments made
pursuant to dissenters’ appraisal rights) in such Change in Control transaction consists of shares
of Capital Stock traded on the New York Stock Exchange or another U.S. national securities exchange
or quoted on The Nasdaq Stock Market or a successor automated over-the-counter trading market in
the United States (or that will be so traded or quoted immediately following the transaction), the
value of the consideration received by holders of the Company’s Common Stock in any Change in
Control shall be calculated as follows:

     (i) securities that are traded on a U.S. national securities exchange or
approved for quotation on the Nasdaq National Market or any similar system of
automated dissemination of quotations of securities prices shall be valued at 100% of
the volume weighted average price of such securities for the five Trading Days
immediately prior to but excluding the public announcement of such Change in Control;
and

     (ii) other securities, assets or property (other than cash) that holders will
have the right to receive shall be valued based on a determination as to their value
by two independent nationally recognized investment banks or appraisal firms, as
appropriate, selected by the Company; and

     (iii) 100% of any cash.

     (g) On or prior to the Change in Control Purchase Date, the Company shall deposit with the
Trustee or with one or more Paying Agents (or, if the Company or an Affiliate of the Company is
acting as the Paying Agent, set aside, segregate and hold in trust) an amount of shares of Common
Stock (or, in the case of a Change in Control in which all or substantially all of the shares of
Common Stock have been, as of the Effective Date, converted into or exchanged for the right to
receive securities or other assets or property (including cash), an amount of such other securities
or other assets or property (including cash)) sufficient to pay the Make-Whole Premium with respect
to all the Securities converted in connection with such Change in

44

 

Control; provided,
however, that, if such payment is made on the Change in Control Purchase Date, it must be
received by the Trustee or Paying Agent, as the case may be, by 12:00 p.m., New York City time, on
that Change in Control Purchase Date. Payment of the Make-Whole Premium for Securities surrendered
for conversion within the period described in Section 3.8 shall be made promptly on the Change in
Control Purchase Date by delivering in accordance with Section 12.2 checks in respect of cash and
otherwise delivering entitlements to securities, other assets or property for the amount payable to
the Holders of such Securities entitled thereto as they shall appear in the Register.

     SECTION 5.2. ADJUSTMENTS RELATING TO MAKE-WHOLE PREMIUM.

     Whenever the Conversion Price shall be adjusted from time to time by the Company pursuant to
Section 4.6, the Stock Price Threshold and the Stock Price Cap shall be adjusted and each of the
Stock Prices set forth in the Additional Premium Table shall be adjusted. The adjusted Stock Price
Threshold, Stock Price Cap and Stock Prices set forth in the Additional Premium Table shall equal
the Stock Price Threshold, Stock Price Cap and such Stock Prices, as the case may be, applicable
immediately prior to such adjustment multiplied by a fraction, the numerator of which is the
Conversion Rate immediately prior to the adjustment and the denominator of which is the Conversion
Rate, as adjusted. In the event that any of the Stock Prices, Stock Price Threshold or Stock Price
Cap is not calculable or the calculations do not produce results consistent with the purpose of
this provision, the Company’s Board of Directors shall in good faith determine (whose determination
shall be conclusive) the values and algorithms necessary to determine the Stock Price, Stock Price
Threshold and Stock Price Cap, as applicable.

ARTICLE 6

COVENANTS

     SECTION 6.1. PAYMENT OF SECURITIES.

     The Company shall promptly make all payments in respect of the Securities on the dates and in
the manner provided in the Securities and this Indenture. An installment of principal or interest
(including Contingent Interest) shall be considered paid on the date it is due if the Paying Agent
(other than the Company) holds by 12:00 p.m., New York City time, on that date money, deposited by
the Company or an Affiliate thereof, sufficient to pay the installment. The Company shall, to the
fullest extent permitted by law, pay interest on overdue principal (including premium, if any) and
overdue installments of interest at the rate borne by the Securities per annum.

     The Company will not be required to make any payment in respect of the Securities on any day
that is not a Business Day and any such payment will be due on the next succeeding Business Day and
be treated as
though it were paid on the original due date and additional interest will not accrue for the
additional period of time.

     Payment of the principal of (and premium, if any) and any interest on the Securities shall be
made at the office or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York (which shall initially be Wells Fargo Corporate Trust, c/o the
Depository Trust Company, 1st
Floor - TADS Dept., 55 Water Street, New York, New York 10041, or at the Corporate Trust
Office of the Trustee in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however,
that at the option of the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address appears in the Register; provided
further that a Holder with an aggregate principal amount in excess of $2,000,000 will

45

 

be
paid by wire transfer in immediately available funds at the election of such Holder if such Holder
has provided wire transfer instructions to the Company at least 10 Business Days prior to the
payment date.

     SECTION 6.2. SEC REPORTS.

     The Company shall file all reports and other information and documents that it is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, and within 15 days after it
files them with the SEC, the Company shall file copies of all such reports, information and other
documents with the Trustee.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     SECTION 6.3. COMPLIANCE CERTIFICATES.

     The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of
the Company (beginning with the fiscal year ending September 30, 2005), an Officers’ Certificate as
to the signer’s knowledge of the Company’s compliance with all conditions and covenants on its part
contained in this Indenture and stating whether or not the signer knows of any default or Event of
Default. If such signer knows of such a default or Event of Default, the Officers’ Certificate
shall describe the default or Event of Default and the efforts to remedy the same. For the
purposes of this Section 6.3, compliance shall be determined without regard to any grace period or
requirement of notice provided pursuant to the terms of this Indenture.

     SECTION 6.4. FURTHER INSTRUMENTS AND ACTS.

     Upon 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
purposes of this Indenture.

     SECTION 6.5. MAINTENANCE OF CORPORATE EXISTENCE.

     Subject to Article 7, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence.

     SECTION 6.6. RULE 144A INFORMATION REQUIREMENT.

     Within the period prior to the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants and
agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the
Exchange Act, make available to any Holder or beneficial holder of Securities or any Common Stock
issued upon conversion thereof which continue to be Restricted Securities in connection with any
sale thereof and any prospective purchaser of Securities or such Common Stock designated by such
Holder or beneficial holder, the information required pursuant to Rule 144A(d)(4) under the
Securities Act upon the request of any Holder or beneficial holder of the Securities or such Common
Stock and it will take such further action as any Holder or beneficial holder of such Securities or
such Common Stock may reasonably request, all to the extent required from time to time to enable
such Holder or beneficial holder to sell its Securities or Common Stock without registration under
the Securities Act within the limitation of the exemption provided by Rule 144A, as such

46

 

Rule may
be amended from time to time. Upon the request of any Holder or any beneficial holder of the
Securities or such Common Stock, the Company will deliver to such Holder a written statement as to
whether it has complied with such requirements.

     SECTION 6.7. STAY, EXTENSION AND USURY LAWS.

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

     SECTION 6.8. PAYMENT OF CONTINGENT INTEREST

     (a) The Company shall pay Contingent Interest on the Securities as provided in the Global
Security. If Contingent Interest is payable by the Company for any semi-annual period, the Company
shall deliver to the Trustee notice that the Company is required to pay Contingent Interest for
such semi-annual period, on or prior to the record date related to the interest payment date
relating to such payment of Contingent Interest. The notice shall set forth the amount of
Contingent Interest per $1,000 principal amount of Securities. Promptly after providing such
notice to the Trustee, the Company will also disseminate a press
release with respect to such payment of Contingent Interest through a public medium that is
customary for such press releases.

     (b) For the purposes of this Indenture, the Securities shall be treated as indebtedness
subject to U.S. Treasury regulations governing contingent payment debt instruments. Each Holder,
by its acceptance of a Security agrees to be bound by the Company’s application of the U.S.
Treasury regulations that govern contingent payment debt instruments including the Company’s
determination that the rate at which interest will be deemed to accrue for U.S. federal income tax
purposes will be 5.65% per year, compounded semi-annually.

ARTICLE 7

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     SECTION 7.1. COMPANY MAY CONSOLIDATE, ETC, ONLY ON CERTAIN TERMS.

     The Company shall not consolidate with or merge into any other Person (in a transaction in
which the Company is not the surviving Person) or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, unless:

          (1) in case the Company shall consolidate with or merge into another Person (in a transaction
in which the Company is not the surviving Person) or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company substantially as an entirety shall be a
corporation, limited liability company,

47

 

partnership or trust, shall be organized and validly
existing under the laws of the United States of America, any State thereof or the District of
Columbia (provided that, if as of a result of such consolidation, merger,
conveyance, transfer or lease, the Securities would become convertible into equity interests of a
Person other than the Company pursuant to Section 4.11, then such Person shall not be a
pass-through entity for U.S. federal income tax purposes) and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the
Trustee, the due and punctual payment of the principal of and any premium and interest on all the
Securities and the performance or observance of every covenant of this Indenture on the part of the
Company to be performed or observed and the conversion rights shall be provided for in accordance
with Article 4, by supplemental indenture satisfactory in form to the Trustee, executed and
delivered to the Trustee, by the Person (if other than the Company) formed by such consolidation or
into which the Company shall have been merged or by the Person which shall have acquired the
Company’s assets;

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

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

     SECTION 7.2. SUCCESSOR SUBSTITUTED.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company substantially as an entirety in accordance with Section 7.1, the successor Person formed by
such consolidation or into which the Company is merged or to which such conveyance, transfer or
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor Person had been named as
the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the Securities.

ARTICLE 8

DEFAULT AND REMEDIES

     SECTION 8.1. EVENTS OF DEFAULT.

     An “Event of Default” shall occur if:

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

          (2) the Company defaults in the payment of any principal of (including, without limitation,
any premium, if any, on) any Security when the same becomes due and payable (whether at maturity,
upon redemption, purchase or repurchase, on a Redemption Date, Repurchase Date, Change of Control
Purchase Date or otherwise);

48

 

          (3) the Company fails to comply with any of its other agreements contained in the Securities
or this Indenture and the default continues for the period and after the notice specified below;

          (4) the Company defaults in the payment of the purchase price of any Security when the same
becomes due and payable; or

          (5) the Company fails to provide a Change in Control Purchase Notice when required by Section
3.8; or

          (6) any indebtedness under any bond, debenture, note or other evidence of indebtedness for
money borrowed by the Company or any Significant Subsidiary or under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or evidenced any
indebtedness for money borrowed by the Company or any Significant Subsidiary (an “Instrument”) with
a principal amount then outstanding in excess of U.S. $25,000,000 whether such indebtedness now
exists or shall hereafter be created, is not paid at final maturity of the Instrument (either at
its stated maturity or upon acceleration thereof), and such indebtedness is not discharged, or such
acceleration is not cured, waived, rescinded or annulled, within a period of 30 days after there
shall have been given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal
amount of the Outstanding Securities a written notice specifying such default and requiring
the Company to cause such indebtedness to be discharged or cause such default to be cured or waived
or such acceleration to be rescinded or annulled and stating that such notice is a “Notice of
Default” hereunder; or

          (7) the Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

	 	(A)  	commences a voluntary case or proceeding;
	 
	 	(B)  	consents to the entry of an order for relief
against it in an involuntary case or proceeding;
	 
	 	(C)  	consents to the appointment of a Custodian of it
or for all or substantially all of its property; or
	 
	 	(D)  	makes a general assignment for the benefit of its
creditors; or

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

	 	(A)  	is for relief against the Company or any
Significant Subsidiary in an involuntary case or proceeding;
	 
	 	(B)  	appoints a Custodian of the Company or any
Significant Subsidiary or for all or substantially all of the property
of the Company or any Significant Subsidiary; or
	 
	 	(C)  	orders the liquidation of the Company or any
Significant Subsidiary;

and in each case the order or decree remains unstayed and in effect for 60 days.

49

 

     The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto)
or any similar federal or state law for the relief of debtors. The term “Custodian” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

     A default under clause (3) above is not an Event of Default until the Trustee notifies the
Company in writing, or the Holders of at least 25% in aggregate principal amount of the Securities
then outstanding notify the Company and the Trustee in writing, of the default, and the Company
does not cure the default within 60 days after receipt of such notice. The notice given pursuant to
this Section 8.1 must specify the default, demand that it be remedied and state that the notice is
a “Notice of Default.” When any default under this Section 8.1 is cured, it ceases to exist.

     The Trustee shall not be charged with knowledge of any Event of Default unless written notice
thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by
the Company, a Paying Agent, any Holder or any agent of any Holder.

     SECTION 8.2. ACCELERATION.

     If an Event of Default (other than an Event of Default specified in clause (7) or (8) of
Section 8.1 with respect to the Company) occurs and is continuing, the Trustee may, by notice to
the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding may, by notice to the Company and the Trustee, declare all unpaid principal to the date
of acceleration on the Securities then outstanding (if not then due and payable) to be due and
payable upon any such declaration, and the same shall become and be immediately due and payable.
If an Event of Default specified in clause (7) or (8) of Section 8.1 occurs with respect to the
Company, all unpaid principal of the Securities then outstanding shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder. The Holders of a majority in aggregate principal amount of the Securities then outstanding
by notice to the Trustee may rescind an acceleration and its consequences if (a) all existing
Events of Default, other than the nonpayment of the principal of the Securities which has become
due solely by such declaration of acceleration, have been cured or waived; (b) to the extent the
payment of such interest is lawful, interest (calculated at the rate per annum borne by the
Securities) on overdue installments of interest and overdue principal, which has become due
otherwise than by such declaration of acceleration, has been paid; (c) the rescission would not
conflict with any judgment or decree of a court of competent jurisdiction; and (d) all payments due
to the Trustee and any predecessor Trustee under Section 9.7 have been made. No such rescission
shall affect any subsequent default or impair any right consequent thereto.

     SECTION 8.3. OTHER REMEDIES.

     If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy by proceeding at law or in equity to collect the payment of the
principal of or interest on the Securities or to enforce the performance of any provision of the
Securities or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities 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 cumulative to the extent permitted by
law.

50

 

     SECTION 8.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.

     Subject to Sections 8.7 and 11.2, the Holders of a majority in principal amount of the
Securities then outstanding, by notice to the Trustee may waive an existing default or Event of
Default and its consequences, except a default or Event of Default in the payment of the principal
of, or premium or interest on any Security, a failure by the Company to convert any Securities in
accordance with this Indenture or any failure to comply with any provision of this Indenture or the
Securities which, under Section 11.2, cannot be modified or amended without the consent of the
Holder of each Security affected. When a default or Event of Default is waived, it is cured and
ceases to exist.

     SECTION 8.5. CONTROL BY MAJORITY.

     The Holders of a majority in principal amount of the Securities then outstanding may direct
the time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that the Trustee determines may be unduly
prejudicial to the rights of another Holder or the Trustee, or that may involve the Trustee in
personal liability unless the Trustee is offered indemnity reasonably
satisfactory to it; provided,
however, that the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

     SECTION 8.6. LIMITATIONS ON SUITS.

     A Holder may not pursue any remedy with respect to this Indenture or the Securities or for the
appointment of a receiver or a trustee (except actions for payment of overdue principal or interest
or for the failure of the Company to satisfy its Conversion Obligation upon conversion of the
Securities pursuant to Article 4) unless:

          (1) the Holder gives to the Trustee written notice of a continuing Event of Default;

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

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

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

          (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Securities then
outstanding.

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

     SECTION 8.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of the principal of and interest on the Security, on or after the respective due
dates expressed in the Security and this Indenture, to convert such Security in accordance with
Article 4 and to bring suit for the

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enforcement of any such payment on or after such respective ates or the right to convert, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.

     SECTION 8.8. COLLECTION SUIT BY TRUSTEE.

     If an Event of Default in the payment of principal or interest specified in clause (1) or (2)
of Section 8.1 occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company or another obligor on the Securities for the whole
amount of principal and accrued interest remaining unpaid, together with, to the extent that
payment of such interest is lawful, interest on overdue principal and on overdue installments of
interest, in each case at the rate per annum borne by the Securities and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

     SECTION 8.9. 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 (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered to collect and
receive any money or other property payable or deliverable on any such claims and to distribute the
same, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 9.7, and to the extent that such payment of the
reasonable compensation, expenses, disbursements and advances in any such proceedings shall be
denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other property which the Holders may be
entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization
or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to, or, on behalf of any Holder, to authorize, accept or adopt any plan of
reorganization, arrangement, adjustment or composition affecting the Securities or the rights of
any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in
any such proceeding.

     SECTION 8.10. PRIORITIES.

     If the Trustee collects any money or other property pursuant to this Article 8, it shall pay
out the money or other property in the following order:

     First, to the Trustee for amounts due under Section 9.7;

     Second, to Holders 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.

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     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 8.10.

     SECTION 8.11. UNDERTAKING FOR COSTS.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit 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 8.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 8.7, or a suit by Holders of more
than 10% in principal amount of the Securities then outstanding.

ARTICLE 9

TRUSTEE

     SECTION 9.1. DUTIES OF TRUSTEE.

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

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

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

          (2) 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 certificates or
opinions furnished to the Trustee and conforming to the requirements of this Indenture. The
Trustee, however, shall examine any certificates and opinions, which, by any provision hereof are
specifically required to be delivered to the Trustee to determine whether or not on their face they
conform to the requirements of this Indenture.

     (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:

          (1) this paragraph does not limit the effect of subsection (b) of this Section 9.1;

          (2) 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

          (3) 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 8.5.

     (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers unless the Trustee shall have received adequate indemnity in its
opinion against potential costs and liabilities incurred by it relating thereto.

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     (e) Every provision of this Indenture that in any way relates to the Trustee is subject to
subsections (a), (b), (c) and (d) of this Section 9.1.

     (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     SECTION 9.2. RIGHTS OF TRUSTEE.

     Subject to Section 9.1:

     (a) The Trustee may rely conclusively 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 or both, which shall conform to Section 12.4(b). The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on such Officers’
Certificate or Opinion.

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

     (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within its rights or powers.

     (e) The Trustee may consult with counsel of its selection, and the advice or opinion of such
counsel as to matters of law shall be full and complete authorization and protection in respect of
any such 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 satisfactory to the
Trustee 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 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,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation.

     (h) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event,
which is in fact such a default, is received by the Trustee at the Corporate Trust Office, and such
notice references the Securities and this Indenture.

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

     SECTION 9.3. 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 or an Affiliate of the Company with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee is subject to Sections 9.10 and 9.11.

     SECTION 9.4. TRUSTEE’S DISCLAIMER.

     The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, 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 in the Securities other than its certificate of
authentication.

     SECTION 9.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT.

     If a default or an Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to each Securityholder notice of the default or Event of Default
within 90 days after it becomes known to the Trustee. However, the Trustee may withhold the notice
if and so long as a committee of its Trust Officers in good faith determines that withholding
notice is in the interests of Securityholders, except in the case of a default or an Event of
Default in payment of the principal of or interest on any Security.

     SECTION 9.6. REPORTS BY TRUSTEE TO HOLDERS.

     If such report is required by TIA Section 313, within 60 days after each March 15, beginning
with the March 15 following the date of this Indenture, the Trustee shall mail to each
Securityholder a brief report dated as of such May 15 that complies with TIA Section 313(a). The
Trustee also shall comply with TIA Section 313(b)(2) and (c).

     A copy of each report at the time of its mailing to Securityholders shall be mailed to the
Company and filed with the SEC and each stock exchange, if any, on which the Securities are listed.
The Company shall notify the Trustee whenever the Securities become listed on any stock exchange
or listed or admitted to trading on any quotation system and any changes in the stock exchanges or quotation systems on
which the Securities are listed or admitted to trading and of any delisting thereof.

     SECTION 9.7. COMPENSATION AND INDEMNITY.

     The Company shall pay to the Trustee from time to time such compensation (as agreed to from
time to time by the Company and the Trustee in writing) for its services (which compensation shall
not be limited by any provision of law in regard to the compensation of a trustee of an express
trust). The Company shall reimburse the Trustee upon request for all reasonable disbursements,
expenses and advances incurred or made by it. Such expenses may include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

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     The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of this
Section 9.7 shall include its officers, directors, employees and agents) for, and hold it harmless
against, any and all loss, liability or expense including taxes (other than taxes based upon,
measured by or determined by the income of the Trustee), (including reasonable legal fees and
expenses) incurred by it in connection with the acceptance or administration of its duties under
this Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The Trustee shall notify the
Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The
Company need not pay for any settlement without its written consent, which shall not be
unreasonably withheld.

     The Company need not reimburse the Trustee for any expense or indemnify it against any loss or
liability incurred by it resulting from its gross negligence, willful misconduct or bad faith.

     To secure the Company’s payment obligations in this Section 9.7, the Trustee shall have a
senior claim to which the Securities are hereby made subordinate on all money or property held or
collected by the Trustee, except such money or property held in trust to pay the principal of and
interest on the Securities. The obligations of the Company under this Section 9.7 shall survive
the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
clause (7) or (8) of Section 8.1 occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law. The provisions of this
Section shall survive the termination of this Indenture.

     SECTION 9.8. REPLACEMENT OF TRUSTEE.

     The Trustee may resign by so notifying the Company. The Holders of a majority in principal
amount of the Securities then outstanding may remove the Trustee by so notifying the Trustee and
may, with the Company’s written consent, appoint a successor Trustee. The Company may remove the
Trustee if:

          (1) the Trustee fails to comply with Section 9.10;

          (2) the Trustee is adjudged a bankrupt or an insolvent;

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

          (4) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. The resignation or removal of a
Trustee shall not be effective until a successor Trustee shall have delivered the written
acceptance of its appointment as described below.

     If a successor Trustee does not take office within 45 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of 10% in principal amount of the
Securities then outstanding may petition any court of competent jurisdiction for the appointment of
a successor Trustee at the expense of the Company.

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     If the Trustee fails to comply with Section 9.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee and be released from its obligations
(exclusive of any liabilities that the retiring Trustee may have incurred while acting as Trustee)
hereunder, 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.
A successor Trustee shall mail notice of its succession to each Holder.

     A retiring Trustee shall not be liable for the acts or omissions of any successor Trustee
after its succession.

     Notwithstanding replacement of the Trustee pursuant to this Section 9.8, the Company’s
obligations under Section 9.7 shall continue for the benefit of the retiring Trustee.

     SECTION 9.9. SUCCESSOR TRUSTEE BY MERGER, ETC.

     If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust assets (including the administration of this Indenture) to, another
corporation, the resulting, surviving or transferee corporation, without any further act, shall be
the successor Trustee, provided such transferee corporation shall qualify and be eligible
under Section 9.10. Such successor Trustee shall promptly mail notice of its succession to the
Company and each Holder.

     SECTION 9.10. ELIGIBILITY; DISQUALIFICATION.

     The Trustee shall always satisfy the requirements of paragraphs (1), (2) and (5) of TIA
Section 310(a). The Trustee (or its parent holding company) shall have a combined capital and
surplus of at least $50,000,000. If at any time the Trustee shall cease to satisfy any such
requirements, it shall resign immediately in the manner and with the effect specified in this Article 9. The Trustee shall
be subject to the provisions of TIA Section 310(b). Nothing herein shall prevent the Trustee from
filing with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b).

     SECTION 9.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

     The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed
in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section
311(a) to the extent indicated therein.

ARTICLE 10

SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 10.1. SATISFACTION AND DISCHARGE OF INDENTURE.

     This Indenture shall cease to be of further effect (except as to any surviving rights of
conversion, registration of transfer or exchange of Securities herein expressly provided for and
except as further provided below), and the Trustee, on demand of and at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

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          (1) either

               (A) all Securities theretofore authenticated and delivered (other than (i) Securities which
have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.7
and (ii) Securities for whose payment money has theretofore been deposited in trust and thereafter
repaid to the Company as provided in Section 10.3) have been delivered to the Trustee for
cancellation; or

               (B) all such Securities not theretofore delivered to the Trustee for cancellation

                    (i) have become due and payable, or

                    (ii) will become due and payable at the Final Maturity Date within one year, or

                    (iii) 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 the Company, in the case of clause (i), (ii) or (iii) above, has irrevocably deposited or
caused to be irrevocably deposited with the Trustee or a Paying Agent (other than the Company or
any of its Affiliates) as trust funds in trust for the purpose cash in an amount sufficient to pay
and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and interest to the date of such deposit (in the case of Securities
which have become due and payable) or to the Final Maturity Date or Redemption Date, as the case
may be;

          (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and

          (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 9.7 shall survive and, the provisions of Sections 2.3, 2.4,
2.5, 2.6, 2.7, 2.12, 3.8, 3.9, 3.10, 3.12, 3.13, 3.14, the last paragraph of 6.1 and 12.5, Article
4, and this Article 10, shall survive until the Securities have been paid in full.

     SECTION 10.2. APPLICATION OF TRUST MONEY.

     Subject to the provisions of Section 10.3, the Trustee or a Paying Agent shall hold in trust,
for the benefit of the Holders, all money deposited with it pursuant to Section 10.1 and shall
apply the deposited money in accordance with this Indenture and the Securities to the payment of
the principal of and interest on the Securities.

     SECTION 10.3. REPAYMENT TO COMPANY.

     The Trustee and each Paying Agent shall promptly pay to the Company upon request any excess
money (i) deposited with them pursuant to Section 10.1 and (ii) held by them at any time.

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     The Trustee and each Paying Agent shall pay to the Company upon request any money held by them
for the payment of principal or interest that remains unclaimed for two years after a right to such
money has matured; provided, however, that the Trustee or such Paying Agent, before being required
to make any such payment, may at the expense of the Company cause to be mailed to each Holder
entitled to such money notice that such money remains unclaimed and that after a date specified
therein, which shall be at least 30 days from the date of such mailing, any unclaimed balance of
such money then remaining will be repaid to the Company. After payment to the Company, Holders
entitled to money must look to the Company for payment as general creditors.

     SECTION 10.4. REINSTATEMENT.

     (a) If the Trustee or any Paying Agent is unable to apply any money in accordance with Section
10.2 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, then the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 10.1 until such time as the Trustee or such
Paying Agent is permitted to apply all such money in accordance with
Section 10.2; provided,
however, that if the Company has made any payment of the principal of or interest on any Securities
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive any such
payment from the money held by the Trustee or such Paying Agent.

     (b) In the event that the Company exercises its right to redeem the Securities as provided in
Article 3, the Company shall have the right to withdraw its funds previously deposited with the
Trustee or Paying Agent pursuant to Section 10.1(1)(B)(iii). In such case, the Company’s
obligations under this Indenture and the Securities shall be revived and reinstated as though no
deposit has occurred pursuant to Section 10.1(1)(B)(iii).

ARTICLE 11

AMENDMENTS, SUPPLEMENTS AND WAIVERS

     SECTION 11.1. WITHOUT CONSENT OF HOLDERS.

     The Company and the Trustee may amend or supplement this Indenture or the Securities without
notice to or consent of any Securityholder:

     (a) to comply with Sections 4.11, 4.14(c) and 7.1;

     (b) to cure any ambiguity, defect or inconsistency;

     (c) to make any other change that does not adversely effect the rights of any Securityholder;

     (d) to comply with the provisions of the TIA; or

     (e) to appoint a successor Trustee.

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     SECTION 11.2. WITH CONSENT OF HOLDERS.

     The Company and the Trustee may amend or supplement this Indenture or the Securities with the
written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding. The Holders of at least a majority in aggregate principal amount of
the Securities then outstanding may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Securities without notice to any Securityholder. However,
notwithstanding the foregoing but subject to Section 11.4, without the written consent of each
Securityholder affected, an amendment, supplement or waiver, including a waiver pursuant to Section
8.4, may not:

     (a) change the stated maturity of the principal of, or interest on, any Security;

     (b) reduce the principal amount of, or Repurchase Price or Change in Control Purchase Price or
any premium or interest on, any Security;

     (c) reduce the Make-Whole Premium on any Security;

     (d) reduce the amount of principal payable upon acceleration of the maturity of any Security;

     (e) change the place or currency of payment of principal of, or any premium or interest on,
any Security;

     (f) impair the right to institute suit for the enforcement of any payment on, or with respect
to, any Security;

     (g) modify the provisions with respect to the purchase right of Holders pursuant to Article 3
or upon a Change in Control in a manner adverse to Holders;

     (h) adversely affect the right of Holders to convert Securities other than as provided in or
under Article 4 of this Indenture;

     (i) reduce the Principal Return or Net Share Amount received upon conversion;

     (j) reduce the percentage of the aggregate principal amount of the outstanding Securities
whose Holders must consent to a modification or amendment;

     (k) reduce the percentage of the aggregate principal amount of the outstanding Securities
necessary for the waiver of compliance with certain provisions of this Indenture or the waiver of
certain defaults under this Indenture; and

     (l) modify any of the provisions of this Section or Section 8.4, except to increase any such
percentage or to provide that certain provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each outstanding Security affected thereby.

     It shall not be necessary for the consent of the Holders under this Section 11.2 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

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     After an amendment, supplement or waiver under this Section 11.2 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.

     SECTION 11.3. COMPLIANCE WITH TRUST INDENTURE ACT.

     Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as in effect at the date of such amendment or supplement.

     SECTION 11.4. REVOCATION AND EFFECT OF CONSENTS.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security, even if notation of the consent
is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent
as to its Security or portion of a Security if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective.

     After an amendment, supplement or waiver becomes effective, it shall bind every
Securityholder, unless it makes a change described in any of clauses (a) through (l) of Section
11.2. In that case the amendment, supplement or waiver shall bind each Holder of a Security who
has consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

     SECTION 11.5. NOTATION ON OR EXCHANGE OF SECURITIES.

     If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security about the changed terms and return it to the Holder. Alternatively, if
the Company or the Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

     SECTION 11.6. TRUSTEE TO SIGN AMENDMENTS, ETC.

     The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this
Article 11 if the amendment or supplemental indenture does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but
need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and, subject to Section 9.1, shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is
authorized or permitted by this Indenture. The Company may not sign an amendment or supplement
indenture until the Board of Directors approves it.

     SECTION 11.7. EFFECT OF SUPPLEMENTAL INDENTURES.

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

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ARTICLE 12

MISCELLANEOUS

     SECTION 12.1. TRUST INDENTURE ACT CONTROLS.

     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
any of Sections 310 to 317, inclusive, of the TIA through operation of Section 318(c) thereof, such
imposed duties shall control.

     SECTION 12.2. NOTICES.

     Any notice, request or communication shall be given in writing and delivered in person or
mailed by first-class mail, postage prepaid, addressed as follows: If to the Company:

Fair Isaac Corporation

901 Marquette Avenue, Suite 3200

Minneapolis, Minnesota 55402

Attn: General Counsel

If to the Trustee:

Wells Fargo Bank, National Association

MAC N9303-110

Sixth and Marquette Avenue

Minneapolis, MN 55479

Attention: Corporate Trust Services (Fair Isaac Corporation —
1.5% Senior Convertible Notes, Series B Due August 15, 2023)

     Such notices or communications shall be effective when received.

     The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

     Any notice or communication mailed to a Securityholder shall be mailed by first-class mail or
delivered by an overnight delivery service to it at its address shown on the register kept by the
Primary Registrar. 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 to a Securityholder is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

     SECTION 12.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

     Securityholders may communicate pursuant to TIA Section 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and any other person shall have the protection of TIA Section 312(c).

     SECTION 12.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

     (a) Upon any request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee at the request of the Trustee:

62

 

          (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions
precedent (including any covenants, compliance with which constitutes a condition precedent), if
any, provided for in this Indenture relating to the proposed action have been complied with; and

          (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent (including any covenants, compliance with which constitutes a condition precedent) have
been complied with.

     (b) Each Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

          (1) a statement that the person making such certificate or opinion has read such covenant or
condition;

          (2) 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;

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

          (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with;

provided however, that with respect to matters of fact an Opinion of Counsel may
rely on an Officers’ Certificate or certificates of public officials.

     SECTION 12.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS.

     The Company (or, in the event deposits have been made pursuant to Section 10.1, the Trustee)
may set a record date for purposes of determining the identity of Holders entitled to vote, waive
or consent to any action by vote, waiver or consent authorized or permitted under this Indenture,
which record date shall not be more than thirty (30) days prior to the date of the commencement of
solicitation of such action. Notwithstanding the provisions of Section 11.4, if a record date is
fixed, those persons who were Holders of Securities at the close of business on such record date
(or their duly designated proxies), and only those persons, shall be entitled to take such action
by vote or consent or to revoke any vote or consent previously given, whether or not such persons
continue to be Holders after such record date.

     SECTION 12.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT.

     The Trustee may make reasonable rules (not inconsistent with the terms of this Indenture) for
action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make
reasonable rules for its functions.

63

 

     SECTION 12.7. LEGAL HOLIDAYS.

     A “Legal Holiday” is a Saturday, Sunday or a day on which state or federally chartered banking
institutions in New York, New York and the state in which the Corporate Trust Office is located are
not required to be open. If a payment date is a Legal Holiday, payment shall be made on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening
period. If a regular record date is a Legal Holiday, the record date shall not be affected.

     SECTION 12.8. GOVERNING LAW.

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

     SECTION 12.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

     This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used
to interpret this Indenture.

     SECTION 12.10. NO RECOURSE AGAINST OTHERS.

     All liability described in paragraph 18 of the Securities of any director, officer, employee
or shareholder, as such, of the Company is waived and released.

     SECTION 12.11. SUCCESSORS.

     All agreements of the Company in this Indenture and the Securities shall bind its successor.
All agreements of the Trustee in this Indenture shall bind its successor.

     SECTION 12.12. MULTIPLE COUNTERPARTS.

     The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall
be deemed an original, but all of them together represent the same agreement.

     SECTION 12.13. SEPARABILITY.

     In case any provisions in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     SECTION 12.14. TABLE OF CONTENTS, HEADINGS, ETC.

     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 to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

64

 

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written.

	 	 	 	 	 
	 	 	Fair Isaac Corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Charles M. Osborne
	

	 	 	 	 
	

	 	Name:
	 	Charles M. Osborne
	

	 	Title:
	 	Vice President and Chief Financial Officer
	 
	 	 	 	 
	 	 	Wells Fargo Bank,
National Association, as Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ Timothy P. Mowdy
	

	 	 	 	 
	

	 	Name:
	 	Timothy P. Mowdy
	

	 	Title:
	 	Assistant Vice President

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO FAIR ISAAC CORPORATION (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 IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
TO A SUCCESSOR DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]1

     [THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS
SECURITY AND THE SHARES ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.]2

     [THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND
THE SHARES ISSUABLE UPON CONVERSION THEREOF MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED

	1	 	These paragraphs to be included only if the
Security is a Global Security.
	 
	2	 	These paragraphs to be included only if the
Security is a Restricted Security.

A-1

 

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 RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) 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 SECURITY FROM
IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]2

     THE COMPANY AGREES, AND BY ACCEPTING A BENEFICIAL OWNERSHIP INTEREST IN THIS SECURITY EACH
HOLDER AND ANY BENEFICIAL OWNER OF THIS SECURITY WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES
FEDERAL INCOME TAX PURPOSES, TO TREAT THE ISSUANCE OF THIS NOTE IN EXCHANGE FOR THE 1.5% SENIOR
CONVERTIBLE NOTES DUE AUGUST 15, 2023 ISSUED BY THE COMPANY ON AUGUST 6, 2003 (“OUTSTANDING NOTES”)
AS NOT CONSTITUTING A “SIGNIFICANT MODIFICATION” OF THE OUTSTANDING NOTES WITHIN THE MEANING OF
UNITED STATES TREASURY REGULATIONS SECTION 1.1001-3(e)

A-2

 

FAIR ISAAC CORPORATION

	 	 	 
	CUSIP:

	 	No.:

1.5% SENIOR CONVERTIBLE NOTES, SERIES B DUE AUGUST 15, 2023

     Fair Isaac Corporation, a Delaware corporation (the “Company”, which term shall include any
successor corporation under the Indenture referred to on the reverse hereof), promises to pay to
___, or registered assigns, the principal sum of
___ ($___) on August
15, 2023 [or such greater or lesser amount as is indicated on the Schedule of Exchanges of
Securities on the other side of this Security].1

	 	 	 
	Interest Payment Dates:

	 	August 15 and February 15
	 
	 	 
	Record Dates:

	 	August 1 and February 1

     This Security is convertible as specified on the other side of this Security. Additional
provisions of this Security are set forth on the other side of this Security.

SIGNATURE PAGE FOLLOWS

A-3

 

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

	 	 	 	 	 
	 	 	FAIR ISAAC CORPORATION
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 

Attest:

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	

	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 

Dated:

Trustee’s Certificate of Authentication: This is one of the

Securities referred to in the within-mentioned Indenture.

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

	 	 	 
	

	 	 
	By: Authorized Signatory
	 	 

A-4

 

[FORM OF REVERSE SIDE OF SECURITY]

FAIR ISAAC CORPORATION

1.5% SENIOR CONVERTIBLE NOTES, SERIES B DUE AUGUST 15, 2023

1. Interest

     (a) Regular Interest. Fair Isaac Corporation, a Delaware corporation (the “Company”,
which term shall include any successor corporation under the Indenture hereinafter referred to),
promises to pay interest on the principal amount of this Security at the rate of 1.5% per annum
(“Regular Interest”), from the most recent date on or prior to the date of the Indenture to which
interest (at the rate of 1.5% per annum) has been paid or provided for on the Existing Securities
through August 15, 2008. After August 15, 2008 the Company will not pay Regular Interest on this
Security semi-annually as provided in clause (c), below, prior to maturity, but Regular Interest
will continue to accrue and will be compounded semi-annually and be payable upon redemption,
purchase, repurchase or on the Final Maturity Date.

     (b) Contingent Interest. The Company shall pay Contingent Interest on the Securities
in the same manner as Regular Interest.

     (c) Procedure. The Company shall pay interest semi-annually on August 15 and February
15 of each year, with the first Regular Interest payment date to be August 15, 2005 and the first
Contingent Interest payment date, if any, to be February 15, 2009. Interest on the Securities
shall accrue from the most recent date to which interest has been paid or, in the case of Regular
Interest, if no interest has been paid, from the most recent date on or prior to the date of the
Indenture to which interest (at the rate of 1.5% per annum) has been paid or provided for on the
Existing Securities and in the case of Contingent Interest, if any, from August 15, 2008. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. Any reference herein to
interest accrued or payable as of any date shall include any Regular Interest or Contingent
Interest accrued or payable on such date as provided herein.

2. Method of Payment

     The Company shall pay interest on this Security (except defaulted interest) to the person who
is the Holder of this Security at the close of business on February 1 or August 1, as the case may
be, next preceding the related interest payment date. The Holder must surrender this Security to a
Paying Agent to collect payment of principal. 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. The Company may, however, pay principal and interest in respect of any Certificated
Security by check or wire payable in such money; provided, however, that a Holder
with an aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in
immediately available funds at the election of such Holder, if such Holder has provided wire
transfer instructions to the Company at least 10 Business Days prior to the interest payment date.
The Company may mail an interest check to the Holder’s registered address. Notwithstanding the
foregoing, so long as this Security is registered in the name of a Depositary or its nominee, all
payments hereon shall be made by wire transfer of immediately available funds to the account of the
Depositary or its nominee. The Company will not be required to make any payment in respect of the
Securities on any day that is not a Business Day and any such payment will be due on the next
succeeding Business Day and be treated as though it were paid on the original due date and
additional interest will not accrue for the additional period of time.

A-5

 

3. Paying Agent, Registrar and Conversion Agent

     Initially, Wells Fargo Bank, National Association (the “Trustee”, which term shall include any
successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar
and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent
without notice to the Holder. The Company or any of its Subsidiaries may, subject to certain
limitations set forth in the Indenture, act as Paying Agent or Registrar.

4. Indenture, Limitations

     This Security is one of a duly authorized issue of Securities of the Company designated as its
1.5% Senior Convertible Notes, Series B Due August 15, 2023 (the “Securities”), issued under an
Indenture dated as of March ___, 2005 (together with any supplemental indentures thereto, the
“Indenture”), between the Company and the Trustee. The terms of this Security include those stated
in the Indenture and those required by or made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended, as in effect on the date of the Indenture. This Security is
subject to all such terms, and the Holder of this Security is referred to the Indenture and said
Act for a statement of them.

     The Securities are senior unsecured obligations of the Company limited to $400,000,000
aggregate principal amount, subject to Section 2.2 of the Indenture. The Indenture does not limit
other debt of the Company, secured or unsecured.

5. Optional Redemption

     (a) The Securities are subject to redemption, as a whole or in part, at any time on or after
August 15, 2008, at 100% of the principal amount of the Securities being redeemed, together with
accrued and unpaid interest up to, but not including, the Redemption Date; provided
that if the Redemption Date occurs after a record date for payment of interest and prior to
the interest payment date related to such record date, interest will be payable to the Holders in
whose name the Securities are registered on the Redemption Date.

     (b) Notice of redemption will be mailed by first-class mail at least 20 but not more than 60
days before the Redemption Date to each Holder of Securities to be redeemed at its registered
address. Securities in denominations larger than $1,000 may be redeemed in part, but only in whole
multiples of $1,000. On and after the Redemption Date, subject to the deposit with the Paying
Agent of funds sufficient to pay the Redemption Price plus accrued interest, if any, accrued to,
but excluding, the Redemption Date, interest shall cease to accrue on Securities or portions of
them called for redemption.

     (c) No sinking fund is provided for the Securities.

6. Conversion Arrangement on Call for Redemption

     Any Securities called for redemption, unless surrendered for conversion before the close of
business on the Business Day immediately preceding the Redemption Date, may be deemed to be
purchased from the Holders of such Securities at an amount not less than the Redemption Price,
together with accrued interest, if any, to, but not including, the Redemption Date, by one or more
investment banks or other purchasers who may agree with the Company to purchase such Securities
from the Holders, to convert them into the Conversion Obligation and to make payment for such
Securities to the Paying Agent in trust for such Holders.

A-6

 

7. Repurchase at the Option of the Holders

     (a) The Holders may require the Company to repurchase any outstanding Securities for cash, on
August 15, 2007, August 15, 2008, August 15, 2013 or August 15, 2018 (each a “Repurchase Date”) at
a purchase price per Security equal to 100% of the aggregate principal amount of the Security,
together with any accrued and unpaid interest to, but not including, the applicable Repurchase
Date; provided that if such Repurchase Date is an interest payment date, interest
on the Securities will be payable to the Holders in whose names the Securities are registered on
such Repurchase Date.

     (b) The Company shall give written notice of the applicable Repurchase Date by delivery of the
Repurchase Notice as provided in the Indenture, to each Holder (at its address shown in the
register of the Registrar) and to beneficial owners as required by applicable law, not less than 20
Business Days prior to each Repurchase Date.

8. Purchase of Securities at Option of Holder Upon a Change in Control

     At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase all or any part specified by the Holder (so long as the
principal amount of such part is $1,000 or an integral multiple of $1,000 in excess thereof) of the
Securities held by such Holder on the date that is 30 Business Days after the occurrence of a
Change in Control, at a purchase price equal to 100% of the principal amount thereof together with
accrued and unpaid interest up to, but excluding, the Change in Control Purchase Date. The Holder
shall have the right to withdraw any Change in Control Purchase Notice (in whole or in a portion
thereof that is $1,000 or an integral multiple of $1,000 in excess thereof) at any time prior to
the close of business on the Business Day immediately preceding the Change in Control Purchase Date
by delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of
the Indenture.

9. Conversion

     (a) Subject to the provisions of Article 4 of the Indenture, a Holder of a Security may
convert the principal amount of such Security (or any portion thereof equal to $1,000 or any
integral multiple of $1,000 in excess thereof) upon the occurrence of the conditions set forth in
Article 4 of the Indenture; provided, however, that if the Security is called for redemption, the
conversion right will terminate at the close of business on the Business Day immediately preceding
the Redemption Date for such Security or such earlier date as the Holder presents such Security for
redemption (unless the Company shall default in making the redemption payment when due, in which
case the conversion right shall terminate at the close of business on the date such default is
cured and such Security is redeemed). Subject to the provisions of Article 4 of the Indenture, a
Holder of a Security may convert such Securities into:

          (i) cash in an amount (the “Principal Return”) equal to the lesser of (A) the principal amount
of each Security and (B) the Conversion Value; and

          (ii) if the Conversion Value is greater than the principal amount of each Security, a number
of shares of Common Stock (the “Net Shares”) equal to the sum of the Daily Share Amounts for each
Trading Day during the Applicable Conversion Reference Period (the “Net Share Amount”); provided
that, in lieu of the delivery of Net Shares, the Company may, at its option, deliver cash or a
combination of cash and shares of Common Stock with a value equal to the Net Share Amount. The
Daily Share Amount shall be calculated using the Closing Sale Price of the Common Stock on each
Trading Day. References herein to

A-7

 

“Net Share Amount” shall be deemed to be references to such amount in cash or combination of
cash and Common Stock, as applicable.

     The Conversion Value, Principal Return and Net Share Amount will be determined by the Company
promptly after the end of the Applicable Conversion Reference Period. The Company shall pay the
Principal Return and cash for fractional shares and deliver Net Shares, if any, no later than the
third Business Day following the determination of the Applicable Stock Price.

     (b) The initial Conversion Price is $43.9525 per share, subject to adjustment under certain
circumstances. No fractional shares will be issued upon conversion; in lieu thereof, an amount
will be paid in cash based upon the Closing Sale Price (as defined in the Indenture) of the Common
Stock on the Trading Day immediately prior to the Conversion Date.

     (c) To convert a Security, a Holder must (a) complete and manually sign the conversion notice
set forth below and deliver such notice to a Conversion Agent, (b) surrender the Security to a
Conversion Agent, (c) furnish appropriate endorsements and transfer documents if required by a
Registrar or a Conversion Agent, and (d) pay any transfer or similar tax, if required. Securities
so surrendered for conversion (in whole or in part) during the period from the close of business on
any regular record date to the opening of business on the next succeeding interest payment date
(excluding Securities or portions thereof called for redemption on a Redemption Date, presented for
purchase upon a Change in Control on a Change in Control Purchase Date or presented for repurchase
on a Repurchase Date, as the case may be, during the period beginning at the close of business on a
regular record date and ending at the opening of business on the first Business Day after the next
succeeding interest payment date, or if such interest payment date is not a Business Day, the
second such Business Day) shall also be accompanied by payment in funds acceptable to the Company
of an amount equal to the interest payable on such interest payment date on the principal amount of
such Security then being converted, and such interest shall be payable to such registered Holder
notwithstanding the conversion of such Security, subject to the provisions of the Indenture
relating to the payment of defaulted interest by the Company. If the Company defaults in the
payment of interest payable on such interest payment date, the Company shall promptly repay such
funds to such Holder. A Holder may convert a portion of a Security equal to $1,000 or any integral
multiple thereof.

     (d) A Security in respect of which a Holder had delivered a Change in Control Purchase Notice
or Repurchase Election Notice, exercising the option of such Holder to require the Company to
purchase or repurchase such Security may be converted only if the Change in Control Purchase Notice
or Repurchase Election Notice is withdrawn in accordance with the terms of the Indenture and in the
case of the Repurchase Election Notice, the Securities are otherwise convertible in accordance
herewith and the terms of the Indenture.

10. Make-Whole Premium

     If a Change in Control occurs prior to August 15, 2008, the Company shall pay the Make-Whole
Premium to Holders of the Securities who convert their Securities at any time during the period
beginning on the date that the Company provides the Make-Whole Premium Upon Conversion Notice and
ending at 5:00 p.m., New York City time, on the second Trading Day immediately preceding the Change
in Control Purchase Date; provided, however, that no payment of the Make-Whole
Premium will be made (i) in the case of a Change in Control if at least 90% of the consideration
paid or payable for the Company’s Common Stock (excluding cash payments for fractional shares and
cash payments made pursuant to dissenters’ appraisal rights) in such Change in Control consists of
shares of Capital Stock traded on the New York Stock Exchange

A-8

 

or another U.S. national securities exchange or quoted on the Nasdaq Stock Market or a
successor automated over-the-counter trading market in the United States (or that will be so traded
or quoted immediately following the transaction), or (ii) if the Company has provided a Public
Acquirer Change in Control Notice as described in Section 4.14(c) of the Indenture. The Make-Whole
Premium shall be paid on the Change in Control Purchase Date and shall be paid solely in shares of
the Common Stock (other than cash paid in lieu of fractional shares) or in the same form of
consideration into which all or substantially all of the shares of Common Stock have been converted
or exchanged in connection with the Change in Control, as described in the Indenture. The
Make-Whole Premium shall be equal to an applicable percentage of the principal amount of the
Securities specified in the Indenture. The Make-Whole Premium will be in addition to, and not in
substitution for, any cash, securities or other assets otherwise due to Holders of Securities upon
conversion as described in the Indenture.

     In the event the Company does not provide the Make-Whole Premium Upon Conversion Notice within
10 Business Days after the occurrence of a Change in Control in which the Make-Whole Premium would
be payable, the Company shall be deemed, for purposes of the first sentence of the first paragraph
of Section 5.1(a) of the Indenture, to have provided such notice on the tenth Business Day after
the occurrence of such Change in Control.

11. Denominations, Transfer, Exchange

     The Securities are in registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. A Holder may register the transfer or exchange of Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes or other governmental charges that may be
imposed in relation thereto by law or permitted by the Indenture.

12. Persons Deemed Owners

     The Holder of a Security may be treated as the owner of it for all purposes.

13. Unclaimed Money

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent will pay the money back to the Company at its written request. After that, Holders
entitled to money must look to the Company for payment.

14. Amendment, Supplement and Waiver

     Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of the Securities then
outstanding, and an existing default or Event of Default and its consequence or compliance with any
provision of the Indenture or the Securities may be waived in a particular instance with the
consent of the Holders of a majority in principal amount of the Securities then outstanding.
Without the consent of or notice to any Holder, the Company and the Trustee may amend or supplement
the Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency
or make any other change that does not adversely affect the rights of any Holder.

A-9

 

15. Successor Entity

     When a successor corporation, limited liability company, partnership or trust assumes all the
obligations of its predecessor under the Securities and the Indenture in accordance with the terms
and conditions of the Indenture, the predecessor corporation, limited liability company,
partnership or trust will (except in certain circumstances specified in the Indenture) be released
from those obligations.

16. Defaults and Remedies

     The Indenture sets forth the applicable Events of Default with respect to the Securities. If
an Event of Default (other than as a result of certain events of bankruptcy, insolvency or
reorganization of the Company) occurs and is continuing, the Trustee or the Holders of at least 25%
in aggregate principal amount of the Securities then outstanding may declare all unpaid principal
to the date of acceleration on the Securities then outstanding to be due and payable immediately,
all as and to the extent provided in the Indenture. If an Event of Default occurs as a result of
certain events of bankruptcy, insolvency or reorganization of the Company, unpaid principal of the
Securities then outstanding shall become due and payable immediately without any declaration or
other act on the part of the Trustee or any Holder, all as and to the extent provided in the
Indenture. Holders may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture
or the Securities. Subject to certain limitations, Holders of a majority in principal amount of
the Securities then outstanding may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders notice of any continuing default (except a default in payment of
principal or interest) if it determines that withholding notice is in their interests. The Company
is required to file periodic reports with the Trustee as to the absence of default.

17. Trustee Dealings with the Company

     Wells Fargo Bank, National Association, the Trustee under the Indenture, in its individual or
any other capacity, may make loans to, accept deposits from and perform services for the Company or
an Affiliate of the Company, and may otherwise deal with the Company or an Affiliate of the
Company, as if it were not the Trustee.

18. No Recourse Against Others

     A director, officer, employee or shareholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture nor for any
claim based on, in respect of or by reason of such obligations or their creation. The Holder of
this Security by accepting this Security waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of this Security.

19. Authentication

     This Security shall not be valid until the Trustee or an authenticating agent manually signs
the certificate of authentication on the other side of this Security.

20. Abbreviations and Definitions

     Customary abbreviations may be used in the name of the Holder or an assignee, such as:

A-10

 

	 	 	 	 	 
	TEN COM

	 	=
	 	tenants in common,
	TEN ENT

	 	=
	 	tenants by the entireties,
	JT TEN

	 	=
	 	joint tenants with right of survivorship and not as tenants in common,
	CUST

	 	=
	 	Custodian, and
	UGMA

	 	=
	 	Uniform Gifts to Minors Act.

     All terms defined in the Indenture and used in this Security but not specifically defined
herein are defined in the Indenture and are used herein as so defined.

21. Contingent Instrument

     This Security shall be treated as indebtedness subject to U.S. treasury regulations governing
contingent payment debt instruments.

22. Indenture To Control

     In the case of any conflict between the provisions of this Security and the Indenture, the
provisions of the Indenture shall control. The Company will furnish to any Holder, upon written
request and without charge, a copy of the Indenture. Requests may be made to: Fair Isaac
Corporation, 901 Marquette Avenue, Suite 3200, Minneapolis, Minnesota 55402, Attention: Chief
Financial Officer. Capitalized terms used but not defined herein have the meanings assigned to
them in the Indenture unless otherwise indicated.

23. Governing Law

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

A-11

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

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

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

and irrevocably appoint

agent to transfer this Security on the books of the Company. The agent may substitute another to
act for him or her.

	 	 	 	 	 	 	 
	

	 	 	 	 
	 	Your Signature
	 
	 	 	 	 	 	 
	Date:

	 	

	 	 	 	

	

	 	 	 	 	 	(Sign exactly as your name appears on the
	

	 	 	 	 	 	other side of this Security)
	 
	 	 	 	 	 	 
	*Signature guaranteed by:

	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	
	 	 	 	 

	*	 	The signature must be guaranteed by an institution that is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

A-12

 

CONVERSION NOTICE

     To convert this Security into the Principal Return and Net Share Amount, if any, check the
box: o

     To convert only part of this Security, state the principal amount to be converted (must be
$1,000 or a multiple of $1,000): $___.

     If you want the stock certificate (if any Net Shares are being paid in Common Stock) made out
in another person’s name, fill in the form below:

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

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

	 	 	 	 	 	 	 
	

	 	 	 	 
	 	Your Signature
	 
	 	 	 	 	 	 
	Date:

	 	

	 	 	 	

	

	 	 	 	 	 	(Sign exactly as your name appears on the
	

	 	 	 	 	 	other side of this Security)
	 
	 	 	 	 	 	 
	*Signature guaranteed by:

	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	
	 	 	 	 

	*	 	The signature must be guaranteed by an institution that is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

A-13

 

CHANGE OF CONTROL PURCHASE NOTICE

To: Fair Isaac Corporation

     The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a
notice from Fair Isaac Corporation (the “Company”) as to the occurrence of a Change in Control with
respect to the Company and requests and instructs the Company to redeem the entire principal amount
of this Security, or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this Security at the
Change in Control Purchase Price, together with accrued interest to, but excluding, such date, to
the registered Holder hereof.

	 	 	 	 	 	 	 
	Dated:

	 	
	 	 	 	 
	

	 	 	 	 
	 	

	 
	 	 	 	 	 	 
	

	 	 	 	 	 	

	

	 	 	 	 	 	Signature(s)
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Signature(s) must be guaranteed by a
qualified guarantor institution with
membership in an approved signature
guarantee program pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934.
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	

	

	 	 	 	 	 	Signature Guaranty
	 
	Principal amount to be redeemed	 	 	 	 
	(in an integral multiple of $1,000, if less than all):	 	 	 	 
	 
	 	 	 	 	 	 
	
	 	 	 	 

NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the
face of this Security in every particular, without alteration or any change whatsoever.

A-14

 

REPURCHASE ELECTION NOTICE

To: Fair Isaac Corporation

     The undersigned registered owner of this Security hereby requests and instructs Fair Isaac
Corporation (the “Company”) to repurchase the entire principal amount of this Security, or the
portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance
with the terms of the Indenture referred to in this Security at the Repurchase Price on August 15,
___, together with accrued interest to, but excluding, such date, to the registered Holder hereof.

	 	 	 	 	 	 	 
	Dated:

	 	
	 	 	 	 
	

	 	 	 	 
	 	

	 
	 	 	 	 	 	 
	

	 	 	 	 	 	

	

	 	 	 	 	 	Signature(s)
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Signature(s) must be guaranteed by a
qualified guarantor institution with
membership in an approved signature
guarantee program pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934.
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	

	

	 	 	 	 	 	Signature Guaranty
	Principal amount to be redeemed	 	 	 	 
	 
	 	 	 	 	 	 
	(in an integral multiple of $1,000, if less than all):	 	 	 	 
	 
	 	 	 	 	 	 
	
	 	 	 	 

     NOTICE: The signature to the foregoing Election must correspond to the Name as written upon
the face of this Security in every particular, without alteration or any change whatsoever.

A-15

 

SCHEDULE OF EXCHANGES OF SECURITIES3

     The following exchanges, redemptions, repurchases or conversions of a part of this Global
Security have been made:

	 	 	 	 	 	 	 
	Principal Amount	 	 	 	 	 	 
	of this Global Security	 	Authorized	 	 	 	Amount of
	Following Such	 	Signatory of	 	Amount of Decrease in	 	Increase in
	Decrease Date	 	Securities	 	Principal Amount	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	of this Global Security	 	of this Global Security
	 
	 	 	 	 	 	 

	3	 	This schedule should be included only if the
Security is a Global Security.

A-16

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF TRANSFER RESTRICTED SECURITIES2

	 	 	 
	Re:

	 	1.5% Senior Convertible Notes, Series B due August 15, 2023 (the “Securities”) of Fair Isaac
Corporation.
	 
	 	 
	

	 	This certificate relates to
$___ principal amount of Securities owned in (check applicable
box)
	 
	 	 
	

	 	o  book-entry or     o  definitive form by ___ (the “Transferor”).

     The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

     In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Section 2.12 of the Indenture dated as of March ___, 2005 between Fair
Isaac Corporation and Wells Fargo Bank, National Association, as trustee (the “Indenture”), and the
transfer of such Security is being made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”) (check applicable box), or the transfer
or exchange, as the case may be, of such Security does not require registration under the
Securities Act because (check applicable box):

	 	 	 
	 o

	 	Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.
	 
	 	 
	o

	 	Such Security is being acquired for the Transferor’s own account, without transfer.
	 
	 	 
	o

	 	Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.
	 
	 	 
	o

	 	Such Security is being transferred to a person the Transferor reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A or any successor provision
thereto (“Rule 144A”) under the Securities Act) that is purchasing for its own
account or for the account of a “qualified institutional buyer”, in each case to whom
notice has been given that the transfer is being made in reliance on such Rule 144A,
and in each case in reliance on Rule 144A.
	 
	 	 
	o

	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements under the Securities Act in accordance with Rule
144 (or any successor thereto) (“Rule 144”) under the Securities Act.
	 
	 	 
	o

	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements of the Securities Act (other than an exemption
referred to above) and as a result of which such Security will, upon such transfer,
cease to be a “restricted security” within the meaning of Rule 144 under the
Securities Act.

A-17

 

     The Transferor acknowledges and agrees that, if the transferee will hold any such Securities
in the form of beneficial interests in a Global Security which is a “restricted security” within
the meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to
Rule 144A under the Securities Act and such transferee must be a “qualified institutional buyer”
(as defined in Rule 144A).

	 	 	 	 	 
	Date:

	 	
	 	

	

	 	 	 	(Insert Name of Transferor)

A-18

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