Document:

Indenture, dated August 22, 2006

 Exhibit 4.1 
 THE PMI GROUP, INC. 
 2.50% Senior Convertible Debentures due 2021 
  

 INDENTURE 
 Dated as of August 22, 2006 
  

 The Bank of New York Trust Company, N.A. 
 TRUSTEE 
  

 Certain Sections of this Indenture relating to Sections 310 through 318, 
 inclusive, of the Trust Indenture Act of 1939: 
  

			
	 Trust Indenture
Act Section
	  	 Indenture Section

	 § 310(a)(1)
	  	7.10
	 (a)(2)
	  	7.10
	 (a)(3)
	  	Not Applicable
	 (a)(4)
	  	Not Applicable
	 (b)
	  	7.8 7.10
	 (c)
	  	Not Applicable
	 § 311(a)
	  	7.11
	 (b)
	  	7.11
	 (c)
	  	Not Applicable
	 § 312(a)
	  	2.5
	 (b)
	  	11.3
	 (c)
	  	11.3
	 § 313(a)
	  	7.6
	 (b)
	  	7.6
	 (c)
	  	 7.6
 11.2

	 (d)
	  	7.6
	 § 314(a)
	  	 4.2
 4.3

	 (b)
	  	Not Applicable
	 (c)(1)
	  	11.4
	 (c)(2)
	  	11.4
	 (c)(3)
	  	Not Applicable
	 (d)
	  	Not Applicable
	 (e)
	  	11.5
	 § 315(a)
	  	7.1
	 (b)
	  	 7.5
 7.1

	 (c)
	  	7.1
	 (d)
	  	7.1
	 (e)
	  	6.11
	 § 316(a)(1)(A)
	  	6.5
	 (a)(1)(B)
	  	6.4
	 (a)(2)
	  	Not Applicable
	 (b)
	  	6.7
	 (c)
	  	1.5
	 § 317(a)(1)
	  	6.8
	 (a)(2)
	  	6.9
	 (b)
	  	2.4
	 § 318(a)
	  	11.1

 NOTE: This reconciliation and
tie shall not, for any purpose, be deemed to be a part of the Indenture. 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	  	
			
	 Section 1.1
	 	Definitions	  	1
	 Section 1.2
	 	Other Definitions	  	4
	 Section 1.3
	 	Incorporation by Reference of Trust Indenture Act	  	5
	 Section 1.4
	 	Rules of Construction	  	6
	 Section 1.5
	 	Acts of Holders	  	6
		
	ARTICLE II THE SECURITIES	  	
			
	 Section 2.1
	 	Form and Dating	  	7
	 Section 2.2
	 	Execution and Authentication	  	8
	 Section 2.3
	 	Registrar, Paying Agent, Conversion Agent and Calculation Agent	  	9
	 Section 2.4
	 	Paying Agent to Hold Money and Securities in Trust	  	9
	 Section 2.5
	 	Securityholder Lists	  	9
	 Section 2.6
	 	Transfer and Exchange	  	10
	 Section 2.7
	 	Replacement Securities	  	11
	 Section 2.8
	 	Outstanding Securities; Determinations of Holders’ Action	  	11
	 Section 2.9
	 	Temporary Securities	  	12
	 Section 2.10
	 	Cancellation	  	12
	 Section 2.11
	 	Persons Deemed Owners	  	13
	 Section 2.12
	 	Global Securities	  	13
	 Section 2.13
	 	CUSIP Numbers	  	16
	 Section 2.14
	 	Ranking	  	16
		
	ARTICLE III REDEMPTION AND PURCHASES	  	
			
	 Section 3.1
	 	Company’s Right to Redeem; Notices 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	  	18
	 Section 3.7
	 	Purchase of Securities by the Company at Option of the Holder	  	18
	 Section 3.8
	 	Purchase of Securities at Option of the Holder upon Change of Control	  	20
	 Section 3.9
	 	Company Notice	  	23
	 Section 3.10
	 	Effect of Purchase Notice or Change of Control Purchase Notice	  	24
	 Section 3.11
	 	Deposit of Purchase Price or Change of Control Purchase Price	  	25
	 Section 3.12
	 	Securities Purchased in Part	  	26
	 Section 3.13
	 	Covenant to Comply With Securities Laws Upon Purchase of Securities	  	26
	 Section 3.14
	 	Repayment to the Company	  	26

  

 i 

					
	 ARTICLE IV COVENANTS
  
	  	
	 Section 4.1
	  	Payment of Securities	  	26
	 Section 4.2
	  	SEC and Other Reports	  	27
	 Section 4.3
	  	Compliance Certificate	  	27
	 Section 4.4
	  	Further Instruments and Acts	  	27
	 Section 4.5
	  	Maintenance of Office or Agency	  	27
	 Section 4.6
	  	Delivery of Certain Information	  	28
	 Section 4.7
	  	Tax Treatment of Securities	  	28
		
	 ARTICLE V SUCCESSOR CORPORATION
  
	  	
	 Section 5.1
	  	When Company May Merge or Transfer Assets	  	28
		
	 ARTICLE VI DEFAULTS AND REMEDIES
  
	  	
	 Section 6.1
	  	Events of Default	  	29
	 Section 6.2
	  	Acceleration	  	32
	 Section 6.3
	  	Other Remedies	  	32
	 Section 6.4
	  	Waiver of Past Defaults	  	32
	 Section 6.5
	  	Control by Majority	  	32
	 Section 6.6
	  	Limitation on Suits	  	33
	 Section 6.7
	  	Rights of Holders to Receive Payment	  	33
	 Section 6.8
	  	Collection Suit by Trustee	  	33
	 Section 6.9
	  	Trustee May File Proofs of Claim	  	33
	 Section 6.10
	  	Priorities	  	34
	 Section 6.11
	  	Undertaking for Costs	  	34
	 Section 6.12
	  	Waiver of Stay, Extension or Usury Laws	  	35
		
	 ARTICLE VII TRUSTEE
  
	  	
	 Section 7.1
	  	Duties of Trustee	  	35
	 Section 7.2
	  	Rights of Trustee	  	36
	 Section 7.3
	  	Individual Rights of Trustee	  	38
	 Section 7.4
	  	Trustee’s Disclaimer	  	38
	 Section 7.5
	  	Notice of Defaults	  	38
	 Section 7.6
	  	Reports by Trustee to Holders	  	38
	 Section 7.7
	  	Compensation and Indemnity	  	38
	 Section 7.8
	  	Replacement of Trustee	  	39
	 Section 7.9
	  	Successor Trustee by Merger	  	40
	 Section 7.10
	  	Eligibility; Disqualification	  	40
	 Section 7.11
	  	Preferential Collection of Claims Against Company	  	40
		
	 ARTICLE VIII DISCHARGE OF INDENTURE
  
	  	
	 Section 8.1
	  	Discharge of Liability on Securities	  	40
	 Section 8.2
	  	Repayment to the Company	  	40

  

 ii 

					
	 ARTICLE IX AMENDMENTS
  
	  	
	 Section 9.1
	 	Without Consent of Holders	  	41
	 Section 9.2
	 	With Consent of Holders	  	41
	 Section 9.3
	 	Compliance with Trust Indenture Act	  	43
	 Section 9.4
	 	Revocation and Effect of Consents, Waivers and Actions	  	43
	 Section 9.5
	 	Notation on or Exchange of Securities	  	43
	 Section 9.6
	 	Trustee to Sign Supplemental Indentures	  	43
	 Section 9.7
	 	Effect of Supplemental Indentures	  	43
		
	 ARTICLE X CONVERSIONS
  
	  	
	 Section 10.1
	 	Conversion Privilege	  	44
	 Section 10.2
	 	Conversion Procedure; Conversion Price; Fractional Shares.	  	46
	 Section 10.3
	 	Adjustment of Conversion Price for Common Stock.	  	48
	 Section 10.4
	 	Consolidation or Merger of the Company	  	58
	 Section 10.5
	 	Notice of Adjustment	  	59
	 Section 10.6
	 	Notice in Certain Events	  	59
	 Section 10.7
	 	Company To Reserve Stock: Registration; Listing	  	60
	 Section 10.8
	 	Taxes on Conversion	  	61
	 Section 10.9
	 	Conversion After Record Date	  	61
	 Section 10.10
	 	Company Determination Final	  	61
	 Section 10.11
	 	Responsibility of Trustee for Conversion Provisions	  	61
	 Section 10.12
	 	Unconditional Right of Holders to Convert	  	62
		
	 ARTICLE XI MISCELLANEOUS
  
	  	
	 Section 11.1
	 	Trust Indenture Act Controls	  	62
	 Section 11.2
	 	Notices	  	62
	 Section 11.3
	 	Communication by Holders with Other Holders	  	63
	 Section 11.4
	 	Certificate and Opinion as to Conditions Precedent	  	63
	 Section 11.5
	 	Statements Required in Certificate or Opinion	  	63
	 Section 11.6
	 	Separability Clause	  	64
	 Section 11.7
	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	  	64
	 Section 11.8
	 	Legal Holidays	  	64
	 Section 11.9
	 	GOVERNING LAW	  	64
	 Section 11.10
	 	No Recourse Against Others	  	64
	 Section 11.11
	 	Successors	  	64
	 Section 11.12
	 	Multiple Originals	  	64
			
	 EXHIBIT A
	 	Form of Global Security	  	
	 EXHIBIT B
	 	Form of Certificated Security	  	

  

 iii 

 INDENTURE dated as of August 22, 2006 between THE PMI GROUP, INC., a Delaware corporation
(“Company”), and THE BANK OF NEW YORK TRUST COMPANY, N.A., a national banking association (“Trustee”). 
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s 2.50% Senior Convertible Debentures due July 15, 2021: 
 ARTICLE I 
 DEFINITIONS AND
INCORPORATION BY REFERENCE 
 Section 1.1 Definitions. 
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person. For the purposes of this definition, “control” when used with respect to any specified person means the power to direct or cause the direction of the management and policies of such
person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interest
therein, the rules and procedures of the Depositary for such Security, in each case to the extent applicable to such transaction and as in effect from time to time. 
 “Board of Directors” means either the board of directors of the Company or any duly authorized committee of such board. 
 “Board Resolution” means a resolution of the Board of Directors. 
 “Business Day” means, with respect to any Security, a day that in the City of New York, is not a day on which banking
institutions are authorized by law or regulation to close. 
 “Calculation Agent” shall mean initially The Bank of
New York Trust Company, N.A. and its successors and assigns. 
 “Capital Stock” for any corporation means any and all
shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) stock issued by that corporation. 
 “Certificated Securities” means Securities that are in the form of the Securities attached hereto as Exhibit B. 

 “Common Stock” shall mean the Common Stock, $0.01 par value per share, of the
Company existing on the date of this Indenture or any other shares of Capital Stock of the Company into which such Common Stock shall be reclassified or changed. 
 “Company” means the party named as the “Company” in the first Section of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 
 “Company Request” or “Company Order” means a written request or order signed in the name of the Company by any two Officers. 
 “Conversion Price” means initially $44.155, subject to adjustment as set forth herein. 
 “Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at 700 South Florida Street, Suite 500, Los Angeles, California, 90017, Attention: Corporate Trust Administration, or such other address as the Trustee may designate from time to time by
notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company). 
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
 “Global Securities” means Securities that are in the form of the Securities attached hereto as Exhibit A, and that are registered
in the register of Securities in the name of a Depositary or a nominee thereof. 
 “Holder” or
“Securityholder” means a person in whose name a Security is registered on the Registrar’s books. 
 “Indenture” means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof, including the provisions of the TIA that are deemed to be a part hereof. 
 “Issue Date” of any Security means the date on which the Security was originally issued or deemed issued as set forth on the face
of the Security. 
 “NYSE” means The New York Stock Exchange, Inc. 
 “Officer” means the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the President, any Executive Vice
President, any Senior Vice President, the Treasurer, the Controller, or the Secretary or any Assistant Treasurer or Assistant Secretary of the Company. 
  

 2 

 “Officers’ Certificate” means a written certificate containing the
information specified in Sections 11.4 and 11.5, signed in the name of the Company by any two Officers, and delivered to the Trustee. An Officers’ Certificate given pursuant to Section 4.3 shall be signed by an authorized financial or
accounting Officer of the Company but need not contain the information specified in Sections 11.4 and 11.5. 
 “Opinion of
Counsel” means a written opinion containing the information specified in Sections 11.4 and 11.5, from legal counsel who is reasonably acceptable to the Trustee. The counsel may be an employee of, or counsel to, the Company or the
Trustee. 
 “Person” means any individual, corporation, limited liability company, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof. 
 “PMI” shall mean PMI Mortgage Insurance Co., an Arizona corporation. 
 “PMI
Australia” shall mean PMI Mortgage Insurance Ltd, a company organized under the laws of Australia. 
 “PMI Australia
Holdings” shall mean PMI Mortgage Insurance Australia (Holdings) Pty Limited, a company organized under the laws of Australia. 
 “Redemption Date” or “redemption date” shall mean the date specified in a notice of redemption on which the Securities may be redeemed in accordance with the terms of the Securities and this Indenture.

 “Redemption Price” or “redemption price” shall have the meaning set forth in Section 5 of the
Securities. 
 “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those
performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture. 
 “Sale Price” of the shares of Common Stock or Exchange
Property, as applicable, on any date means the closing per share sale price (or, if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask
prices) on such date as reported on the NYSE or, if the shares of Common Stock or Exchange Property, as applicable, are not listed on the NYSE, as reported on the principal other national or regional securities exchange on which the shares of Common
Stock or Exchange Property, as applicable, are then listed, or if not reported on a national or regional securities exchange, as reported by the Nasdaq system. In the absence of such quotations, the Company shall be entitled to determine the sales
price on the basis of such quotations as it considers appropriate. 
  

 3 

 “SEC” means the Securities and Exchange Commission. 
 “Securities” means any of the Company’s 2.50% Senior Convertible Debentures due 2021, as amended or supplemented from time
to time, issued under this Indenture. 
 “Securityholder” or “Holder” means a person in whose
name a Security is registered on the Registrar’s books. 
 “Stated Maturity”, when used with respect to any
Security, means July 15, 2021. 
 “Subsidiary” means any person of which at least a majority of the outstanding
Voting Stock shall at the time directly or indirectly be owned or controlled by the Company or by one or more Subsidiaries or by the Company and one or more Subsidiaries. 
 “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, provided, however, that in the event the TIA is amended after such date, TIA means, to the extent
required by any such amendment, the TIA as so amended. 
 “Trading Day” means a day during which trading in
securities generally occurs on the NYSE or, if the Common Stock is not listed on the NYSE, on the principal other national or regional securities exchange on which the Common Stock then is listed or, if the Common Stock is not listed on a national
or regional securities exchange, on the National Association of Securities Dealers Automated Quotation System or, if the Common Stock is not quoted on the National Association of Securities Dealers Automated Quotation System, on the principal other
market on which the Common Stock is then traded. 
 “Trustee” means the party named as the “Trustee” in the
first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or
successors. 
 “Voting Stock” of a person means Capital Stock of such person of the class or classes pursuant to
which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of such person (irrespective of whether or not at the time Capital Stock of any other
class or classes shall have or might have voting power by reason of the happening of any contingency). 
 Section 1.2 Other
Definitions. 
  

			
	 Term Section:
	  	Defined in:
	 “Agent Members”
	  	2.12(b)
	 “beneficial owner”
	  	3.8(a)
	 “Cash Amount”
	  	10.2
	 “Change of Control”
	  	3.8(a)
	 “Change of Control Purchase Date”
	  	3.8(a)
	 “Change of Control Purchase Notice”
	  	3.8(c)
	 “Change of Control Purchase Price”
	  	3.8(a)

  

 4 

				
	 “Company Notice”
	  	3.9	 
	 “Company Notice Date”
	  	3.9	 
	 “Continuing Director”
	  	3.8	(a)
	 “Conversion Agent”
	  	2.3	 
	 “Conversion Date”
	  	10.2	(c)
	 “Conversion Period”
	  	10.1	(b)
	 “Conversion Rate”
	  	10.1	(b)
	 “Conversion Value”
	  	10.1	(b)
	 “Current Market Price”
	  	10.3	(g)
	 “Daily Share Amount”
	  	10.2	(a)
	 “Depositary”
	  	2.1	(a)
	 “Designated Subsidiary”
	  	6.1	 
	 “DTC”
	  	2.1	(a)
	 “Event of Default”
	  	6.1	 
	 “Exchange Property”
	  	10.2	(e)
	 “Ex-Dividend Time”
	  	10.1	(b)
	 “Excess Amount”
	  	10.3	(f)
	 “Exchange Act”
	  	2.12	(b)
	 “Expiration Time”
	  	10.3	(f)
	 “Fair Market Value”
	  	10.3	(g)
	 “Legal Holiday”
	  	11.8	 
	 “Net Shares”
	  	10.2	(a)
	 “Notice of Default”
	  	6.1	 
	 “Parity Value”
	  	10.1	(b)
	 “Paying Agent”
	  	2.3	 
	 “Purchase Date”
	  	3.7	 
	 “Purchase Notice”
	  	3.7	 
	 “Purchase Price”
	  	3.7	 
	 “Record Date”
	  	10.3	(g)
	 “Reference Period”
	  	10.3	(d)
	 “Registrar”
	  	2.3	 
	 “Rule 144A Information”
	  	4.6	 
	 “Securities Act”
	  	4.6	 
	 “Settlement Amount”
	  	10.2	(a)
	 “Spin-Off”
	  	10.3	(d)
	 “Total Assets”
	  	6.1	 
	 “Trading Price”
	  	10.1	(b)
	 “Trigger Event”
	  	10.3	(d)

 Section 1.3 Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 
 “Commission” means the SEC. 
  

 5 

 “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. 
 “obligor” on the indenture securities means the Company. 
 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions. 
 Section 1.4 Rules of Construction. Unless the context otherwise requires:

 (1) a term has the meaning assigned to it; 
 (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 
 (3) “or” is not exclusive; 
 (4)
“including” means including, without limitation; and 
 (5) words in the singular include the plural, and words in the plural
include the singular. 
 Section 1.5 Acts of Holders. (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company, as described in Section 11.2.
Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing such instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved by the affidavit of a witness of such execution or
by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer the execution thereof. Where such execution is by
a signer acting in a capacity other than such signer’s individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer’s authority. The fact and date of the execution of any such instrument or
writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
  

 6 

 (c) The principal amount and serial number of any Security and the ownership of Securities shall be
proved by the register for the Securities. 
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered
to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
 (e) If
the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination
of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Securities shall be computed as of
such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after
the record date. 
 ARTICLE II 
 THE SECURITIES 
 Section 2.1 Form and Dating. The Securities and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibits A and B, which are a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule or usage (provided that any such notation,
legend or endorsement required by usage is in a form acceptable to the Company). The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication.

 (a) 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 exchanges, redemptions, repurchases and conversions. 
  

 7 

 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 Depository Trust Company (“DTC”) or the nominee thereof (DTC, or any successor thereto, and any such nominee being hereinafter referred to as the “Depositary”). 
 (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to Global Securities deposited with or on behalf of the Depositary.

 The Company shall execute and the Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver initially one or
more Global Securities that (a) shall be registered in the name of the Depositary, (b) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (c) shall be substantially in the form of
Exhibit A attached hereto. 
 (c) Certificated Securities. Securities not issued as interests in the Global Securities will be
issued in certificated form substantially in the form of Exhibit B attached hereto. 
 Section 2.2 Execution and Authentication.
The Securities shall be executed on behalf of the Company by any Officer. The signature of the Officer on the Securities may be manual or facsimile. 
 Securities bearing the manual or facsimile signatures of individuals who were at the time of the execution of the Securities Officers shall bind the Company, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of authentication of such Securities. 
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for
herein duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder.

 The Trustee shall authenticate and deliver the Securities for original issue in an aggregate principal amount of up to $341,478,000 upon
one or more Company Orders without any further action by the Company (other than as contemplated in Section 11.4 and Section 11.5 hereof). The aggregate principal amount of the Securities due at the Stated Maturity thereof outstanding at
any time may not exceed the amount set forth in the foregoing sentence, except upon the accrual of contingent interest as contemplated in the form of Security attached hereto as Exhibit A. 
 The Securities shall be issued only in registered form without coupons and only in denominations of $1,000 of principal amount and any integral multiple
of $1,000. 
  

 8 

 Section 2.3 Registrar, Paying Agent, Conversion Agent and Calculation Agent. The Company
shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or agency where Securities may be presented for purchase or payment
(“Paying Agent”) and an office or agency where Securities may be presented for conversion (“Conversion Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange.
The Company may have one or more co-registrars, one or more additional paying agents and one or more additional conversion agents. The term Paying Agent includes any additional paying agent, including any named pursuant to Section 4.5. The term
Conversion Agent includes any additional conversion agent, including any named pursuant to Section 4.5. 
 The Company shall enter into
an appropriate agency agreement with any Registrar, Paying Agent, Conversion Agent, Calculation Agent or co-registrar (in each case, if such Registrar, agent or co-registrar is a Person other than the Trustee). The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and
shall be entitled to appropriate compensation therefor pursuant to Section 7.7. The Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 
 The Company initially appoints the Trustee as Registrar, Conversion Agent, Calculation Agent and Paying Agent in connection with the Securities.

 Section 2.4 Paying Agent to Hold Money and Securities in Trust. Except as otherwise provided herein, on or prior to each due
date of payments in respect of any Security, the Company shall deposit with the Paying Agent a sum of money (in immediately available funds if deposited on the due date) and shares of Common Stock, if any, sufficient to make such payments when so
becoming due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money and shares of Common Stock held by the
Paying Agent for the making of payments in respect of the Securities and shall notify the Trustee of any default by the Company in making any such payment. At any time during the continuance of any such default, the Paying Agent shall, upon the
written request of the Trustee, forthwith pay to the Trustee all money and shares of Common Stock so held in trust. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall segregate the money and shares of
Common Stock held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money and shares of Common Stock held by it to the Trustee and to account for any funds and Common Stock
disbursed by it. Upon doing so, the Paying Agent shall have no further liability for the money or shares of Common Stock. 
 Section
2.5 Securityholder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders. If the Trustee is not the Registrar, the Company
shall cause to be furnished to the Trustee at least semiannually on January 1 and July 1 a listing of Securityholders dated within 15 days of the date on which the list is furnished and at such other times as the Trustee may request in
writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 
  

 9 

 Section 2.6 Transfer and Exchange. (a) Subject to Section 2.12 hereof, upon
surrender for registration of transfer of any Security, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder’s attorney duly authorized in writing, at the office
or agency of the Company designated as Registrar or co-registrar pursuant to Section 2.3, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of any authorized denomination or denominations, of a like aggregate principal amount. The Company shall not charge a service charge for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to
pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of the Securities from the Securityholder requesting such transfer or exchange. 
 At the option of the Holder, Securities may be exchanged for other Securities of any authorized denomination or denominations, of a like aggregate
principal amount upon surrender of the Securities to be exchanged, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder’s attorney duly authorized in writing, at
such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 
 The Company shall not be required to make, and the Registrar need not register, transfers or exchanges of Securities selected for redemption (except, in
the case of Securities to be redeemed in part, the portion thereof not to be redeemed) or any Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been given and not withdrawn by the Holder thereof in accordance
with the terms of this Indenture (except, in the case of Securities to be purchased in part, the portion thereof not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be
redeemed. 
 (b) Notwithstanding any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on
behalf of the Depositary, transfers of a Global Security, in whole or in part, shall be made only in accordance with Section 2.12 and this Section 2.6(b). Transfers of a Global Security shall be limited to transfers of such Global Security
in whole or in part, to the Depositary, to nominees of the Depositary or to a successor of the Depositary or such successor’s nominee. 
 (c) Successive registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be noted on the register for the Securities. 
 (d) 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. 
  

 10 

 (e) No Registrar shall be required to make registrations of transfer or exchange of Securities during any
periods designated in the text of the Securities or in this Indenture as periods during which such registration of transfers and exchanges need not be made. 
 Section 2.7 Replacement Securities. If (a) any mutilated Security is surrendered to the Trustee, or (b) the Company and the Trustee receive evidence to their satisfaction of the destruction, loss
or theft of any Security, and there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee that such 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 certificate 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 purchased by the Company pursuant to Article III hereof, the Company in its discretion may, instead of issuing a new Security, pay or purchase
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 expenses (including the fees and expenses of the Trustee) connected 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 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. 
 The provisions of this Section 2.7 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 Section
2.8 Outstanding Securities; Determinations of Holders’ Action. Securities outstanding at any time are all the Securities authenticated by the Trustee except for those cancelled by it, those paid pursuant to Section 2.7, those
delivered to it for cancellation and those described in this Section 2.8 as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that in determining
whether the Holders of the requisite principal amount of Securities have given or concurred in any request, demand, authorization, direction, notice, consent, waiver or other Act hereunder, Securities owned by the Company or any other obligor upon
the Securities or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent, waiver or other Act, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time of such
determination shall be considered in any such determination (including, without limitation, determinations pursuant to Articles VI and IX). 
  

 11 

 If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser. 
 If the Paying Agent holds, in accordance
with this Indenture, on a Redemption Date, or on the Business Day following a Purchase Date or a Change of Control Purchase Date, or on Stated Maturity, money sufficient to pay Securities payable on that date, then immediately after such Redemption
Date, Purchase Date, Change of Control Purchase Date or Stated Maturity, as the case may be, such Securities shall cease to be outstanding and interest, including contingent interest and additional interest, if any, on such Securities shall cease to
accrue; provided, that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made. 
 If a Security is converted in accordance with Article X, then from and after the time of conversion on the Conversion Date, such Security shall cease to
be outstanding and interest, including contingent interest and additional interest, if any, shall cease to accrue on such Security. 
 Section 2.9 Temporary Securities. Pending the preparation of definitive Securities, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions
and other variations as the officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities. 
 If temporary Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive
Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to Section 2.3, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary Securities shall in all respects
be entitled to the same benefits under this Indenture as definitive Securities. 
 Section 2.10 Cancellation. All Securities
surrendered for payment, purchase by the Company pursuant to Article III, conversion, redemption or registration of transfer or exchange shall, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall
be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has converted pursuant to 
  

 12 

 Article X. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in
this Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with the Trustee’s customary procedure. 
 Section 2.11 Persons Deemed Owners. Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of the Security or the payment of any Redemption Price, Purchase Price
or Change of Control Purchase Price in respect thereof, and interest thereon, for the purpose of conversion and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary. 
 Section 2.12 Global Securities. (a) Notwithstanding
any other provisions of this Indenture or the Securities, (A) transfers of a Global Security, in whole or in part, shall be made only in accordance with Section 2.6 and Section 2.12(a)(i), (B) transfers of a beneficial interest
in a Global Security for a Certificated Security shall comply with Section 2.6, Section 2.12(a)(ii) below and Section 2.12(b)(1) below, and (C) transfers of a Certificated Security shall comply with Section 2.6 and
Sections 2.12(a)(iii) and (iv) below. 
 (i) Transfer of Global Security. A Global Security may not be
transferred, in whole or in part, to any person other than the Depositary or a nominee or any successor thereof, and no such transfer to any such other person may be registered; provided that this clause (i) 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. Nothing in this Section 2.12(a)(i) shall prohibit or render ineffective any transfer of a beneficial interest in a Global Security effected in accordance with the other provisions of this Section 2.12(a).

 (ii) Restrictions on Transfer of a Beneficial Interest in a Global Security for a Certificated Security. A
beneficial interest in a Global Security may not be exchanged for a Certificated Security except upon satisfaction of the requirements set forth below and in Section 2.12(b)(1) below. Upon receipt by the Trustee of a transfer of a beneficial
interest in a Global Security in accordance with Applicable Procedures for a Certificated Security in the form satisfactory to the Trustee, together with written instructions to the Trustee to make, or direct the Registrar to make, an adjustment on
its books and records with respect to such Global Security to reflect a decrease in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain information regarding the Depositary account to be
credited with such decrease then the Trustee shall cause, or direct the Registrar to cause, in accordance with the standing instructions and procedures existing between the Depositary and the Registrar, the aggregate principal amount of the
Securities represented by the Global Security to be decreased by the aggregate principal amount of the Certificated Security to be issued, shall issue such Certificated Security and shall debit or cause to be debited to the account of the person
specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the Certificated Security so issued. 
  

 13 

 (iii) Transfer and Exchange of Certificated Securities. When Certificated
Securities are presented to the Registrar with a request: 
 (y) to register the transfer of such Certificated Securities; or 
 (z) to exchange such Certificated Securities for an equal principal amount of Certificated Securities of other authorized denominations, the Registrar
shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Certificated Securities surrendered for transfer or exchange shall be duly endorsed or accompanied
by a written instrument of transfer in form reasonably satisfactory to the Company and the Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. 
 (iv) Restrictions on Transfer of a Certificated Security for a Beneficial Interest in a Global Security. A Certificated Security
may not be exchanged for a beneficial interest in a Global Security except upon satisfaction of the requirements set forth below. 
 Upon
receipt by the Trustee of a Certificated Security, duly endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee, together with written instructions directing the Trustee to make, or to direct the Registrar
to make, an adjustment on its books and records with respect to such Global Security to reflect an increase in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain information regarding
the Depositary account to be credited with such increase, then the Trustee shall cancel such Certificated Security and cause, or direct the Registrar to cause, in accordance with the standing instructions and procedures existing between the
Depositary and the Registrar, the aggregate principal amount of Securities represented by the Global Security to be increased by the aggregate principal amount of the Certificated Security to be exchanged, and shall credit or cause to be credited to
the account of the person specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the Certificated Security so cancelled. If no Global Securities are then outstanding, the Company shall issue and
the Trustee shall authenticate, upon written order of the Company in the form of an Officers’ Certificate, a new Global Security in the appropriate principal amount. 
 (b) The provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 
  

	 	(1)	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 (i) the Depositary has
notified the Company that it is unwilling or unable to continue as Depositary for such Global 

  

 14 

 Security or such Depositary has ceased to be a “clearing agency” registered under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and a successor Depositary is not appointed by the Company within 90 days or (ii) an Event of Default has occurred and is continuing with respect to the
Securities. Any Global Security exchanged pursuant to clause (i) above shall be so exchanged in whole and not in part, and any Global Security exchanged pursuant to clause (ii) above may be exchanged in whole or from time to time in part
as directed by the Depositary. Any 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. 
  

	 	(2)	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 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. 

  

	 	(3)	Subject to the provisions of clause (5) below, the registered Holder may grant proxies and otherwise authorize any person, including Agent Members (as defined below) and
persons that may hold interests through Agent Members, to take any action which a holder is entitled to take under this Indenture or the Securities. 

  

	 	(4)	In the event of the occurrence of any of the events specified in clause (1) above, the Company will promptly make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form, without interest coupons. 

  

	 	(5)	Neither any members of, or participants in, the Depositary (collectively, the “Agent Members”) nor any other persons on whose behalf Agent Members may act
shall have any rights under this Indenture with respect to any Global Security registered in the name of the Depositary or any nominee thereof, or under any such Global Security, and the Depositary or such nominee, as the case may be, may be treated
by the Company, the Trustee 

  

 15 

 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 may issue the Securities with one or more
“CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
 Section 2.14 Ranking. The indebtedness of the Company arising under or in connection with this Indenture and every outstanding Security issued under this Indenture from time to time constitutes and will constitute a senior
unsecured general obligation of the Company, ranking equally with other existing and future senior unsecured Indebtedness of the Company and ranking senior in right of payment to any future Indebtedness of the Company that is expressly made
subordinate to the Securities by the terms of such Indebtedness. For purposes of this Section 2.14 only, “Indebtedness” means, without duplication, the principal or face amount of (i) all obligations for borrowed money,
(ii) all obligations evidenced by debentures, notes or other similar instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments (or reimbursement obligations with respect thereto),
(iv) all obligations to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (v) all obligations as lessee which are capitalized in accordance with generally
accepted accounting principles, and (vi) all Indebtedness of others guaranteed by the Company or any of its Subsidiaries or for which the Company or any of its Subsidiaries is legally responsible or liable (whether by agreement to purchase
indebtedness of, or to supply funds or to invest in, others). 
 ARTICLE III 
 REDEMPTION AND PURCHASES 
 Section 3.1 Company’s Right to Redeem;
Notices to Trustee. The Company, at its option, may at any time redeem the Securities in accordance with the provisions of Section 5 of the Securities for cash as a whole, or from time to time in part, at a redemption price equal to the
principal amount of those Securities plus any accrued and unpaid interest, including contingent interest and additional interest, if any, on those Securities to the Redemption Date. If the Company elects to redeem Securities pursuant to
Section 5 of the Securities, it shall notify the Trustee in writing of the Redemption Date, the principal amount of Securities to be redeemed and the Redemption Price. 
  

 16 

 The Company shall give the notice to the Trustee provided for in this Section 3.1 by a Company
Order, at least 40 days before the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee). 
 Section
3.2 Selection of Securities to Be Redeemed. If less than all the Securities are to be redeemed, unless the procedures of the Depositary provide otherwise, the Trustee shall select the Securities to be redeemed by lot, on a pro rata basis
or by another method the Trustee considers fair and appropriate (so long as such method is not prohibited by the rules of any stock exchange on which the Securities are then listed). The Trustee shall make the selection within five Business Days
after it receives the notice provided for in Section 3.1 from outstanding Securities not previously called for redemption. The Trustee may select for redemption portions of the principal amount of Securities that have denominations larger than
$1,000. 
 Securities and portions of Securities that the Trustee selects shall be in principal amounts of $1,000 or an integral multiple of
$1,000. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of the Securities or portions of the Securities to be
redeemed. 
 Securities and portions of Securities that are to be redeemed are convertible by the Holder until the close of business on the
second Business Day prior to the Redemption Date. 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 (so far as may be) to be the portion selected for redemption. Securities which have been converted during a selection of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose of such
selection. 
 Section 3.3 Notice of Redemption. At least 30 days but not more than 60 days before a Redemption Date, the Company
shall mail a notice of redemption by first-class mail, postage prepaid, to each Holder of Securities to be redeemed. 
 The notice shall
identify the Securities to be redeemed and shall state: 
  

	 	(1)	the Redemption Date; 

  

	 	(2)	the Redemption Price; 

  

	 	(3)	the Conversion Price; 

  

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

  

	 	(5)	that Securities called for redemption may be converted at any time before the close of business on the second Business Day prior to the Redemption Date; 

  

 17 

	 	(6)	that Holders who want to convert their Securities must satisfy the requirements set forth in Section 8 of the Securities; 

  

	 	(7)	that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; 

  

	 	(8)	if fewer than all of the outstanding Securities are to be redeemed, the certificate numbers, if any, and principal amounts of the particular Securities to be redeemed;

  

	 	(9)	that, unless the Company defaults in making payment of such Redemption Price, interest, including contingent interest and additional interest, if any, on Securities called for
redemption will cease to accrue interest on and after the Redemption Date; and 

  

	 	(10)	the CUSIP number(s) of the Securities. 

 At the
Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at the Company’s expense, provided that the Company makes such request at least seven Business Days prior to the date by which such notice of
redemption must be given to Holders in accordance with this Section 3.3. 
 Section 3.4 Effect of Notice of Redemption. Once
notice of redemption is given, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price stated in the notice except for Securities which are converted in accordance with the terms of this Indenture.
Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in the notice. 
 Section
3.5 Deposit of Redemption Price. Prior to 10:00 a.m. (New York City time), on the Redemption Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of them is the 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 of Securities called for redemption which on or prior thereto have been delivered by the
Company to the Trustee for cancellation or have been converted. The Paying Agent shall as promptly as practicable return to the Company any money not required for that purpose because of conversion of Securities pursuant to Article X. If such money
is then held by the Company in trust and is not required for such purpose it shall be discharged from such trust. 
 Section
3.6 Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder a new Security in an authorized denomination equal in
principal amount to the unredeemed portion of the Security surrendered. 
 Section 3.7 Purchase of Securities by the Company at
Option of the Holder. Securities shall be purchased by the Company pursuant to Section 6 of the Securities at the option of the Holder on July 15, 2008, July 15, 2011 and July 15, 2016 (each, a “Purchase
Date”), in cash, at a purchase price equal to the principal amount of those Securities plus accrued 
  

 18 

 and unpaid interest, including contingent interest and additional interest, if any, on such Purchase Date (the
“Purchase Price”). Purchases of Securities hereunder shall be made, at the option of the Holder thereof, upon: 
  

	 	(1)	delivery to the Paying Agent by the Holder of a written notice of purchase (a “Purchase Notice”) during the period beginning at any time from the opening of
business on the date that is 20 Business Days prior to the relevant Purchase Date until the close of business on the third Business Day prior to such Purchase Date stating: 

 (A) the certificate number, if any, of the Security which the Holder will deliver to be purchased or the appropriate Depositary procedures if
Certificated Securities have not been issued, 
 (B) the portion of the principal amount of the Security which the Holder will deliver to be
purchased, which portion must be in principal amounts of $1,000 or an integral multiple of $1,000, and 
 (C) that such Security shall be
purchased by the Company as of the Purchase Date pursuant to the terms and conditions specified in Section 6 of the Securities and in this Indenture; and 
  

	 	(2)	delivery of such Security to the Paying Agent at any time after delivery of the Purchase Notice (together with all necessary endorsements) at the offices of the Paying Agent, such
delivery being a condition to receipt by the Holder of the Purchase Price therefor; provided, however, that such Purchase Price shall be so paid pursuant to this Section 3.7 only if the Security so delivered to the Paying Agent shall conform in
all respects to the description thereof in the related Purchase Notice. 

 The Company shall purchase from the Holder thereof,
pursuant to this Section 3.7, 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. 
 Any purchase by the Company contemplated pursuant to the provisions of this Section 3.7 shall be
consummated by the delivery of the consideration to be received by the Holder promptly following the later of the Purchase Date and the time of delivery of the Security. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Purchase Notice contemplated by this Section 3.7 shall have the right to withdraw such Purchase Notice at any time
prior to the close of business on the Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.10. 
 The Paying Agent shall promptly notify the Company of the receipt by it of any Purchase Notice or written notice of withdrawal thereof. 
  

 19 

 Section 3.8 Purchase of Securities at Option of the Holder upon Change of Control.
(a) (1) If a Change of Control occurs (subject to certain exceptions set forth below), the Securities not previously purchased by the Company shall be purchased by the Company, at the option of the Holder thereof, in cash, at a purchase
price specified in Section 6 of the Securities (the “Change of Control Purchase Price”), as of the date that is 30 days after the date of a notice of Change of Control delivered by the Company (the “Change of
Control Purchase Date”), subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section 3.8(c). 
 A “Change of Control” will be deemed to have occurred at such time after the Securities are originally issued when any of the following events shall occur: 
 (i) the acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d) (3) of
the Exchange Act of beneficial ownership, directly or indirectly through a purchase, merger or other acquisition transaction or series of purchase, merger or other acquisition transactions, of shares of the Capital Stock of the Company entitling
that person to exercise 50% or more of the total voting power of all shares of the Capital Stock of the Company entitled to vote generally in elections of directors, other than any acquisition by the Company, any of its subsidiaries or any of its
employee benefit plans (except that any of those persons shall be deemed to have beneficial ownership of all securities it has the right to acquire, whether the right is currently exercisable or is exercisable only upon the occurrence of a
subsequent condition); or 
 (ii) the first day on which a majority of the members of the board of directors of the Company
are not Continuing Directors; or 
 (iii) the Company consolidates or merges with or into any other person, any merger of
another person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially all of the Company’s properties and assets to another person, other than: (A) any transaction: (1) that does not
result in any reclassification, conversion, exchange or cancellation of outstanding shares of the Company’s Capital Stock; and (2) pursuant to which holders of the Company’s Capital Stock immediately prior to the transaction have the
entitlement to exercise, directly or indirectly 50% or more of the total voting power of all shares of Capital Stock entitled to vote generally in elections of directors of the continuing or surviving Person immediately after giving effect to such
issuance; and (B) any merger, share exchange, transfer of assets or similar transaction solely for the purpose of changing the Company’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of
outstanding shares of Common Stock, if at all, solely into shares of common stock, ordinary shares or American Depositary Shares of the surviving Person or a direct or indirect parent of the surviving corporation. 
 A “Continuing Director” shall mean: 
 (x) An individual who was a member of the Board of Directors of the Company first elected by the stockholders or by the Board of Directors prior to the date hereof or prior to the time that any person becomes after
the date hereof the holder of record of in excess of 20% of the Capital Stock of the Company entitled to vote in the election of directors; or 
  

 20 

 (y) An individual designated (before such individual’s initial election as a director) as a
Continuing Director by a majority of the then Continuing Directors. 
 (2) Notwithstanding the provisions of Section 3.8(a)(1), the Company shall not be
required to purchase the Securities of the Holders upon a Change of Control pursuant to this Section 3.8 if: 
  

	 	(i)	the Sale Price per share of Common Stock for any five Trading Days within (1) the period of 10 consecutive Trading Days ending immediately after the later of the Change of
Control or the public announcement of the Change of Control, in the case of a Change of Control under clause (i) or (ii) above, or (2) the period of 10 consecutive Trading Days ending immediately before the Change of Control, in the
case of a Change of Control under clause (iii) above, equals or exceeds 110% of the Conversion Price of the Securities in effect on each of those five Trading Days; or 

  

	 	(ii)	100% of the consideration in the transaction or transactions (other than cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights)
constituting a Change of Control consists of shares of common stock, ordinary shares or American Depositary Shares traded or to be traded immediately following a Change of Control on a national securities exchange or the Nasdaq National Market, and,
as a result of the transaction or transactions, the Securities become convertible (subject to the provisions in Article X) into that common stock, ordinary shares or American Depositary Shares (and any rights attached thereto).

 For the purposes of this Section 3.8, (x) whether a person is a “beneficial owner” shall be determined in
accordance with Rule 13d-3 under the Exchange Act and (y) the term “person” includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. 
 (b) No later than 30 days after the occurrence of a Change of Control, the Company shall mail a written notice of the Change of Control by first-class
mail to the Trustee and to each Holder (and to beneficial owners as required by applicable law). The notice shall include a form of Change of Control Purchase Notice to be completed by the Holder and shall state: 
  

	 	(1)	briefly, the events causing a Change of Control and the date of such Change of Control; 

  

	 	(2)	the date by which the Change of Control Purchase Notice pursuant to this Section 3.8 must be delivered to the Paying Agent in order for a Holder to exercise the repurchase
rights; 

  

 21 

	 	(3)	the Change of Control Purchase Date; 

  

	 	(4)	the Change of Control Purchase Price; 

  

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

  

	 	(6)	the Conversion Rate and any adjustments thereto; 

  

	 	(7)	that the Securities as to which a Change of Control Purchase Notice has been given may be converted if they are otherwise convertible pursuant to Article X hereof only if the Change
of Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 

  

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

  

	 	(9)	that the Change of Control Purchase Price for any Security as to which a Change of Control Purchase Notice has been duly given and not withdrawn will be paid promptly following the
later of the Change of Control Purchase Date and the time of surrender of such Security as described in (8); 

  

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

  

	 	(11)	briefly, the conversion rights, if any, of the Securities; 

  

	 	(12)	the procedures for withdrawing a Change of Control Purchase Notice; 

  

	 	(13)	that, unless the Company defaults in making payment of such Change of Control Purchase Price, interest, if any, on Securities surrendered for purchase by the Company will cease to
accrue on and after the Change of Control Purchase Date; and 

  

	 	(14)	the CUSIP number(s) of the Securities. 

 (c) A Holder may
exercise its rights specified in Section 3.8(a) upon delivery of a written notice of purchase (a “Change of Control Purchase Notice”) to the Paying Agent at any time on or prior to the close of business on the Business
Day immediately preceding the Change of Control Purchase Date that shall state: 
  

	 	(1)	the certificate number, if any, of the Security which the Holder will deliver to be purchased or the appropriate Depositary procedures if Certificated Securities have not been
issued; 

  

	 	(2)	the portion of the principal amount of the Security which the Holder will deliver to be purchased, which portion must be $1,000 or an integral multiple of $1,000; and

  

 22 

	 	(3)	that such Security shall be purchased pursuant to the terms and conditions specified in Section 6 of the Securities and in this Indenture. 

 The delivery of such Security to the Paying Agent with the Change of Control Purchase Notice (together with all necessary endorsements) at the offices of
the Paying Agent shall be a condition to the receipt by the Holder of the Change of Control Purchase Price therefor; provided, however, that such Change of Control Purchase Price shall be so paid pursuant to this Section 3.8 and
Section 3.9 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Change of Control Purchase Notice. 
 The Company shall purchase from the Holder thereof, pursuant to this Section 3.8 and Section 3.9, 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. 
 Any purchase by the Company contemplated pursuant to the provisions of this Section 3.8 and Section 3.9 shall be consummated by the delivery of
the consideration to be received by the Holder promptly following the later of the Change of Control Purchase Date and the time of delivery of the Security. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Change of Control Purchase Notice contemplated by this Section 3.8(c) shall have the right to withdraw such Change of
Control Purchase Notice at any time prior to the close of business on the last Business Day immediately preceding the Change of Control Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with
Section 3.10. 
 The Paying Agent shall promptly notify the Company of the receipt by it of any Change of Control Purchase Notice or
written withdrawal thereof. 
 Section 3.9 Company Notice. In connection with any purchase of Securities pursuant to
Section 6 of the Securities, the Company shall give notice to Holders setting forth information specified in this Section 3.9 (the “Company Notice”). The Company Notice shall be sent to Holders (and to beneficial
owners as required by applicable law) not less than 20 Business Days prior to such Purchase Date or Change of Control Purchase Date, as the case may be (the “Company Notice Date”). 
 Each Company Notice shall include a form of Purchase Notice or Change of Control Purchase Notice, as the case may be, to be completed by a Holder and
shall state: 
 (i) the Purchase Price or Change of Control Purchase Price, as the case may be, and the Conversion Rate;

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

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 (iii) that Securities as to which a Purchase Notice or Change of Control Purchase Notice,
as the case may be, has been given may be converted if they are otherwise convertible only in accordance with Article X hereof and Section 8 of the Securities if the applicable Purchase Notice or Change of Control Purchase Notice, as the case
may be, has been withdrawn in accordance with the terms of this Indenture; 
 (iv) that Securities must be surrendered to the
Paying Agent to collect payment; 
 (v) that the Purchase Price or Change of Control Purchase Price, as the case may be, for
any security as to which a Purchase Notice or Change of Control Purchase Notice, as the case may be, has been given and not withdrawn will be paid promptly following the later of the Purchase Date or Change of Control Purchase Date, as the case may
be, and the time of surrender of such Security as described in (iv); 
 (vi) the procedures the Holder must follow to exercise
its put rights under Section 3.7 or 3.8, as the case may be, and a brief description of those rights; 
 (vii) briefly,
the conversion rights of the Securities; 
 (viii) the procedures for withdrawing a Purchase Notice or Change of Control
Purchase Notice, as the case may be; 
 (ix) that, unless the Company defaults in making payment on Securities for which a
Purchase Notice or Change of Control Purchase Notice, as the case may be, has been submitted, interest, if any, on such Securities will cease to accrue on the Purchase Date or Change of Control Purchase Date, as the case may be; and 
 (x) the CUSIP number of the Securities. 
 At the Company’s request, the Trustee shall give such Company Notice in the Company’s name and at the Company’s expense; provided, however, that, in all cases, the text of such Company Notice shall be
prepared by the Company. 
 Section 3.10 Effect of Purchase Notice or Change of Control Purchase Notice. Upon receipt by the
Paying Agent of the Purchase Notice or Change of Control Purchase Notice specified in Section 3.7(a) or Section 3.8(c), as applicable, the Holder of the Security in respect of which such Purchase Notice or Change of Control Purchase
Notice, as the case may be, was given shall (unless such Purchase Notice or Change of Control Purchase Notice, as the case may be, is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive solely the Purchase Price
or Change of Control Purchase Price, as the case may be, with respect to such Security. Such Purchase Price or Change of Control Purchase Price shall be paid to such Holder, subject to receipts of funds by the Paying Agent, promptly following the
later of (x) the Purchase Date or the Change of Control Purchase Date, as the case may be, with respect to such Security (provided the conditions in Section 3.7(a) or Section 3.8(c), as applicable, 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 3.7(a) or Section 3.8(c), as applicable. Securities in respect of which a Purchase Notice or Change of Control
Purchase Notice has been given by the Holder 
  

 24 

 thereof may not be converted pursuant to Article X hereof on or after the date of the delivery of such Purchase Notice or
Change of Control Purchase Notice unless such Purchase Notice or Change of Control Purchase Notice has first been validly withdrawn as specified in the following two paragraphs. 
 A Purchase Notice or Change of Control Purchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the Paying
Agent in accordance with the Purchase Notice or Change of Control Purchase Notice, as the case may be, at any time prior to the close of business on the Purchase Date or the close of business on the Business Day immediately preceding the Change of
Control Purchase Date, as the case may be, specifying: 
  

	 	(1)	the certificate number, if any, of the Security in respect of which such notice of withdrawal is being submitted or the appropriate Depositary procedures if Certificated Securities
have not been issued, 

  

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

  

	 	(3)	the principal amount, if any, of such Security which remains subject to the original Purchase Notice or Change of Control Purchase Notice, as the case may be, and which has been or
will be delivered for purchase by the Company. 

 There shall be no purchase of any Securities pursuant to Section 3.7 or
3.8 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 Purchase Notice or Change of Control Purchase Notice, as the case may be) and is continuing an Event of Default
(other than a default in the payment of the Purchase Price or Change of Control Purchase Price, as the case may be, with respect to such Securities). The Paying Agent will promptly return to the respective Holders thereof any Securities
(x) with respect to which a Purchase Notice or Change of Control Purchase Notice, as the case may be, 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 Purchase Price or Change of Control Purchase Price, as the case may be, with respect to such Securities) in which case, upon such return, the Purchase Notice or Change of Control Purchase Notice with respect thereto
shall be deemed to have been withdrawn. 
 Section 3.11 Deposit of Purchase Price or Change of Control Purchase Price. Prior to
10:00 a.m. (local time in The City of New York) on the Business Day following the Purchase Date or the Change of Control Purchase Date, as the case may be, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a
Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.4) an amount of cash (in immediately available funds if deposited on such Business Day) sufficient to pay the
aggregate Purchase Price or Change of Control Purchase Price, as the case may be, of all the Securities or portions thereof which are to be purchased as of the Purchase Date or Change of Control Purchase Date, as the case may be. 
  

 25 

 Section 3.12 Securities Purchased in Part. Any Certificated Security which is to be purchased
only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or such Holder’s attorney duly authorized in writing) and 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 any
authorized denomination as 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 which is not purchased. 
 Section 3.13 Covenant to Comply With Securities Laws Upon Purchase of Securities. When complying with the provisions of Section 3.7 or
3.8 hereof (provided that such offer or purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used herein, includes any successor provision thereto) under the Exchange Act at the time of such offer or
purchase), and subject to any exemptions available under applicable law, the Company shall (i) comply with Rule 13e-4 and Rule 14e-1 (or any successor provision) under the Exchange Act, (ii) file the related Schedule TO (or any successor
schedule, form or report) under the Exchange Act, and (iii) otherwise comply with all Federal and state securities laws so as to permit the rights and obligations under Sections 3.7 and 3.8 to be exercised in the time and in the manner
specified in Sections 3.7 and 3.8; provided, however, that any period during which a Holder may exercise its rights under Sections 3.7 and 3.8 shall be extended as necessary in order to comply with Rule 13e-4 and Rule 14e-1 (or any
successor provision) under the Exchange Act. 
 Section 3.14 Repayment to the Company. The Trustee and the Paying Agent shall
return to the Company any cash that remains unclaimed as provided in Section 12 of the Securities, together with interest, if any, thereon (subject to the provisions of Section 7.1(f)), held by them for the payment of the Purchase Price or
Change of Control Purchase Price, as the case may be; provided, however, that to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.11 exceeds the aggregate Purchase Price or Change of Control Purchase
Price, as the case may be, of the Securities or portions thereof which the Company is obligated to purchase as of the Purchase Date or Change of Control Purchase Date, as the case may be, then, unless otherwise agreed in writing with the Company,
promptly after the Business Day following the Purchase Date or Change of Control Purchase Date, as the case may be, the Trustee shall return any such excess to the Company together with interest, if any, thereon (subject to the provisions of
Section 7.1(f)). 
 ARTICLE IV 
 COVENANTS 
 Section 4.1 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 or pursuant to this Indenture. Any amounts of cash or shares of Common Stock to be given to the Trustee or Paying Agent, shall be deposited with the
Trustee or Paying Agent by 10:00 a.m., New York City time, by the Company. Principal amount plus accrued interest, if any, including contingent interest and additional interest, if any, Redemption Price, Purchase Price, Change of 
  

 26 

 Control Purchase Price and cash interest, if any, shall be considered paid on the applicable date due if on such date
(or, in the case of a Purchase Price or Change of Control Purchase Price, on the Business Day following the applicable Purchase Date or Change of Control Purchase Date, as the case may be) the Trustee or the Paying Agent holds, in accordance with
this Indenture, cash or securities, if permitted hereunder, sufficient to pay all such amounts then due. 
 Section 4.2 SEC and Other
Reports. The Company shall file with the Trustee, within 15 days after it files such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. In the event the Company is
at any time no longer subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it shall continue to provide the Trustee with reports containing substantially the same information as would have been required to be filed
with the SEC had the Company continued to have been subject to such reporting requirements. In such event, such reports shall be provided at the times the Company would have been required to provide reports had it continued to have been subject to
such reporting requirements. The Company also shall comply with the other provisions of TIA Section 314(a). Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of
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 conclusively on Officers’ Certificates). 
 Section 4.3 Compliance Certificate. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year of the Company (beginning with the fiscal year ending on December 31, 2006) an Officers’ Certificate, stating whether or not to the knowledge of the signers thereof, the Company is
in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which they may have knowledge. 
 Section 4.4 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 4.5 Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan, The City of New York, an office or agency
of the Trustee, Registrar, Paying Agent and Conversion Agent (which may be an office of the Trustee or an affiliate of the Trustee, Registrar, Paying Agent or Conversion Agent) where Securities may be presented or surrendered for payment, where
Securities may be surrendered for registration of transfer, exchange, purchase, redemption or conversion and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The office of The Bank of
New York, 101 Barclay Street, Floor 7E, New York, New York 10286 (Attention: Evangeline Gonzalez), shall initially be such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the
location, and of any change in the location, of any such office or agency (other than a change in the location of the office of 
  

 27 

 the Trustee). If at any time the Company shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 11.2. 
 The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan,
The City of New York, for such purposes. 
 Section 4.6 Delivery of Certain Information. At any time when the Company is not
subject to Section 13 or 15(d) of the Exchange Act, upon the request of a Holder or any beneficial owner of Securities or holder or beneficial owner of shares of Common Stock issued upon conversion thereof, or in accordance with
Section 3.8(c), the Company will promptly furnish or cause to be furnished Rule 144A Information (as defined below) to such Holder or any beneficial owner of Securities or holder or beneficial owner of shares of Common Stock, or to a
prospective purchaser of any such security designated by any such holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”) in connection with the resale of any such security. “Rule 144A Information” shall be such information as is specified pursuant to Rule 144A(d)(4) under the Securities Act. Whether a
person is a beneficial owner shall be determined by the Company to the Company’s reasonable satisfaction. 
 Section 4.7 Tax
Treatment of Securities. The Company agrees, and by acceptance of a beneficial ownership interest in the Securities, each beneficial holder of Securities will be deemed to have agreed, for U.S. federal income tax purposes, to treat the
Securities as indebtedness that is subject to Section 1.1275-4 of the U.S. Treasury Regulations. A Holder may obtain the comparable yield and projected payment schedule by telephoning The PMI Group, Inc. Investor Relations Department at
925-658-7878 or submitting a written request for it to the Company at the following address: The PMI Group, Inc., 3003 Oak Road, Walnut Creek, California 94597, Attention: Investor Relations Department. 
 ARTICLE V 
 SUCCESSOR CORPORATION

 Section 5.1 When Company May Merge or Transfer Assets. The Company shall not consolidate with or merge with or into any
other person or convey, transfer, sell, lease or otherwise dispose of all or substantially all of its properties and assets to any person, unless: 
 (a) either (1) the Company shall be the continuing corporation or (2) the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance, transfer or
lease all or substantially all of the properties and assets of the Company substantially as an entirety (i) shall be organized and validly existing under the laws of (A) the United States or any State thereof or the District of Columbia or
(B) Bermuda or the Cayman Islands and (ii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all of the obligations of the Company under the
Securities and this Indenture; 
  

 28 

 (b) immediately after giving effect to such transaction, no Event of Default, and no event that, after
notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and 
 (c) the Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such (A) 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 V and that all conditions precedent herein provided for relating to such transaction have been satisfied and (B) in the case of a merger or consolidation in which the Company is not the
continuing corporation and in which the successor to the Company is an entity organized under the laws of Bermuda or the Cayman Islands, that such merger will not result in any material adverse tax consequences to any Holders of the Securities.

 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or more
Subsidiaries (other than to the Company or another Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially all of the properties and assets of the Company, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company. 
 The successor Person formed by such consolidation or into which the Company
is merged or the successor Person to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had
been named as the Company herein; and thereafter, except in the case of a lease and obligations the Company may have under a supplemental indenture, the Company shall be discharged from all obligations and covenants under this Indenture and the
Securities. Subject to Section 9.6, the Company, the Trustee and the successor Person shall enter into a supplemental indenture to evidence the succession and substitution of such successor Person and such discharge and release of the Company.

 ARTICLE VI 
 DEFAULTS
AND REMEDIES 
 Section 6.1 Events of Default. So long as any Securities are outstanding, each of the following shall be an
“Event of Default”: 
 (1) the Company fails to convert any portion of the principal amount of any Security following
the exercise by the Holder of the right to convert such Security into cash and, if applicable, Common Stock, pursuant to and in accordance with Article X hereof; 
 (2) the Company defaults in its obligation to repurchase any Security, or any portion thereof, upon the exercise by the Holder of such Holder’s right to require the Company to purchase such Securities pursuant to
and in accordance with Section 3.7 and 3.8 hereof; 
  

 29 

 (3) the Company defaults in its obligation to redeem any Security, or any portion thereof, called for
redemption by the Company pursuant to and in accordance with Section 3.1 hereof; 
 (4) the Company defaults in the payment of the
principal amount on any Security when the same becomes due and payable at its Stated Maturity; 
 (5) the Company defaults in the payment of
any accrued and unpaid interest, including contingent interest or additional interest, if any, in each case when due and payable, and continuance of such default for a period of 30 days; 
 (6) the Company fails to comply with any of its agreements or covenants in the Securities or this Indenture (other than those referred to in clause
(1) through (5) above) and such failure continues for 60 days after receipt by the Company of a Notice of Default; 
 (7) a failure
to pay when due at maturity or a default that results in the acceleration of maturity of any indebtedness for borrowed money of the Company or any Designated Subsidiary in an aggregate amount of $25.0 million or more, unless the acceleration is
rescinded, stayed or annulled within 30 days after written notice of default is given to the Company by the Trustee or Holders of not less than 25% in aggregate principal amount of the Securities then outstanding; 
 (8) the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Company or any of its
Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, in an involuntary case or proceeding under any applicable bankruptcy, insolvency, reorganization
or other similar law or (ii) a decree or order adjudging the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, a
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more
Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, under any applicable law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 

(9) the commencement by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as
a whole, would constitute a Designated Subsidiary, of a voluntary case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or
the consent by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, to the entry of a decree or order for relief in respect
of the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, in an involuntary case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding 
  

 30 

 against the Company, or the filing by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group
of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, of a petition or answer or consent seeking reorganization or relief under any applicable law, or the consent by the Company to the filing of such petition
or to the appointment of or the taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or the making by the Company or any of its
Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, of an assignment for the benefit of creditors, or the admission by the Company or any of its
Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, in writing of its inability to pay its debts generally as they become due, or the taking of
corporate action by the Company or any of its Subsidiaries that is a Designated Subsidiary or any group of two or more Subsidiaries that, taken as a whole, would constitute a Designated Subsidiary, expressly in furtherance of any such action.

 A Default under clause (6) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in
aggregate principal amount of the Securities at the time outstanding notify the Company and the Trustee, of the Default and the Company does not cure such Default (and such Default is not waived) within the time specified in clause (6) above
after actual receipt of such notice. Any such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default”. 
 “Designated Subsidiary” shall mean each of PMI, PMI Australia Holdings, PMI Australia and any other existing or future, direct or
indirect, Subsidiary of the Company whose assets constitute 25% or more of the total assets of the Company on a consolidated basis (“Total Assets”); provided that neither SPS Holding Corp. nor any of its Subsidiaries
(nor any successor by merger or similar transaction to any of the foregoing) shall in any circumstance be deemed a Designated Subsidiary or considered together with any other Subsidiary or Subsidiaries of the Company to determine whether such group
of Subsidiaries, taken as a whole, would constitute a Designated Subsidiary; and provided further that in the case of any Subsidiary that is not accounted for as a consolidated entity in the Company’s consolidated financial statements in
accordance with generally accepted accounting principles in the United States, only the Company’s proportionate share of the assets of such Subsidiary based on the Company’s direct or indirect ownership of equity interests in such
Subsidiary shall be counted for purposes of determining (i) whether such Subsidiary’s assets constitute 25% or more of Total Assets or (ii) whether such Subsidiary, considered together with any other Subsidiary or Subsidiaries, taken
as a whole, would constitute a Designated Subsidiary. 
 The Trustee shall, within 90 days of the occurrence of a Default, give to the
Holders of the Securities notice of all uncured Defaults known to it and written notice of any event which with the giving of notice or the lapse of time, or both, would become an Event of Default, its status and what action the Company is taking or
proposes to take with respect thereto; provided, however, the Trustee shall be protected in withholding such notice if it, in good faith, determines that the withholding of such notice is in the best interest of such Holders, except in the
case of a Default in the payment of the principal of or interest on any of the Securities when due or in the payment of any redemption or purchase obligation of the Company. 
  

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 Section 6.2 Acceleration. If an Event of Default (other than an Event of Default specified in
Section 6.1(8) or (9)) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding by notice to the Company and the Trustee, may
declare the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, on all the Securities to be immediately due and payable. Upon such a declaration, such accelerated amount shall be due and
payable immediately. If an Event of Default specified in Section 6.1(8) or (9) occurs and is continuing, the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, on all the
Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by
notice to the Trustee (and without notice to any other Securityholder) may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived
except nonpayment of the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, that have become due solely as a result of acceleration and if all amounts due to the Trustee under
Section 7.7 have been paid. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 Section
6.3 Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of the principal amount plus accrued and unpaid interest, including contingent interest and
additional interest, if any, 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 the Trustee does not possess any of the Securities or does not produce any of the Securities 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. 
 Section 6.4 Waiver of Past Defaults. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by
notice to the Trustee (and without notice to any other Securityholder), may waive an existing Default and its consequences except (1) an Event of Default described in Section 6.1(1) or (2), (2) a Default in respect of a provision that
under Section 9.2 cannot be amended without the consent of each Securityholder affected or (3) a Default which constitutes a failure to convert any Security in accordance with the terms of Article X. When a Default is waived, it is deemed
cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. This Section 6.4 shall be in lieu of Section 316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby expressly excluded from
this Indenture, as permitted by the TIA. 
 Section 6.5 Control by Majority. The Holders of a majority in aggregate principal
amount of the Securities at the time outstanding may direct the time, method and place 
  

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 of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the
Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in
personal liability unless the Trustee is offered indemnity satisfactory to it. This Section 6.5 shall be in lieu of Section 316(a)1(A) of the TIA and such Section 316(a)1(A) is hereby expressly excluded from this Indenture, as
permitted by the TIA. 
 Section 6.6 Limitation on Suits. A Securityholder may not pursue any remedy with respect to this
Indenture or the Securities unless: 
 (1) the Holder gives to the Trustee written notice stating that an Event of Default is continuing;

 (2) the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding make a written request to the
Trustee to pursue the remedy; 
 (3) such Holder or Holders offer to the Trustee security or indemnity satisfactory to the Trustee against
any loss, liability or expense; 
 (4) the Trustee does not comply with the request within 60 days after receipt of such notice, request and
offer of security or indemnity; and 
 (5) the Holders of a majority in aggregate principal amount of the Securities at the time outstanding
do not give the Trustee a direction inconsistent with the request during such 60-day period. 
 A Securityholder may not use this Indenture
to prejudice the rights of any other Securityholder or to obtain a preference or priority over any other Securityholder. 
 Section
6.7 Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or
interest, including contingent interest and additional interest, if any, in respect of the Securities held by such Holder, on or after the respective due dates expressed in the Securities or any Redemption Date, and to convert the Securities in
accordance with Article X, or to bring suit for the enforcement of any such payment on or after such respective dates or the right to convert, shall not be impaired or affected adversely without the consent of such Holder. 
 Section 6.8 Collection Suit by Trustee. If an Event of Default described in Section 6.1(2), (3) or (4) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount owing with respect to the Securities and the amounts provided for in Section 7.7. 
 Section 6.9 Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee 
  

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 (irrespective of whether the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or
interest, including contingent interest and additional interest, if any, in respect of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any
demand on the Company for the payment of any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise, 
 (a) to file and prove a claim for the whole amount of the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price, or interest, including contingent interest and additional interest, if any, and to file such
other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel or any other
amounts due the Trustee under Section 7.7) and of the Holders allowed in such judicial proceeding, and 
 (b) to collect and receive any
moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7. 
 Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the 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 6.10 Priorities. If the
Trustee collects any money pursuant to this Article VI, it shall pay out the money in the following order: 
 FIRST: to the Trustee for
amounts due under Section 7.7; 
 SECOND: to Securityholders for amounts due and unpaid on the Securities for the principal amount,
Redemption Price, Purchase Price, Change of Control Purchase Price or interest, including contingent interest and additional interest, if any, as the case may be, ratably, without preference or priority of any kind, according to such amounts due and
payable on the Securities; and 
 THIRD: the balance, if any, to the Company. 
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10. At least 15 days before such
record date, the Trustee shall mail to each Securityholder and the Company a notice that states the record date, the payment date and the amount to be paid. 
 Section 6.11 Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted 
  

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 by it as Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the
suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in aggregate principal amount of
the Securities at the time outstanding. This Section 6.11 shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
 Section 6.12 Waiver of Stay, Extension or Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now or at any time hereafter in force, which would prohibit or forgive the
Company from paying all or any portion of the principal amount, Redemption Price, Purchase Price or Change of Control Purchase Price in respect of Securities, or any interest, including contingent interest and additional interest, if any, on such
amounts, as contemplated herein, or which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 ARTICLE VII 
 TRUSTEE

 Section 7.1 Duties of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise
the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
 (b) Except during the continuance of an Event of Default: 
  

	 	(1)	the Trustee need perform only those duties that 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, but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. This
Section 7.1(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

  

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

  

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

  

	 	(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 6.5.

 Subparagraphs (c)(1), (2) and (3) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections
315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly excluded from this Indenture, as permitted by the TIA. 
 (d) Every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 7.1. 
 (e)
The Trustee may refuse to perform any duty or exercise any right or power or extend or risk its own funds or otherwise incur any financial liability unless it receives indemnity satisfactory to it against any loss, liability or expense. 

(f) Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee (acting in
any capacity hereunder) shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the Company. 
 Section 7.2 Rights of Trustee. Subject to its duties and responsibilities under the TIA, 
 (a)
the Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence
of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
 (c) the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder; 
  

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 (d) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good
faith which it believes to be authorized or within its rights or powers conferred under this Indenture; 
 (e) the Trustee may consult with
counsel selected by it and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of
Counsel; 
 (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, order or direction of any of the Holders, pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which may be
incurred therein or thereby; 
 (g) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (h) the Trustee
shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, 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;

 (i) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible 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 of the Trustee, and such notice references the Securities and this Indenture; 
 (j) 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; and 
 (k) the Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this
Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded. 
  

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 Section 7.3 Individual Rights of Trustee. The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or co-registrar may do the same with
like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
 Section 7.4 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 or application of the proceeds from the Securities, it shall not be responsible for any statement in
the registration statement for the Securities under the Securities Act or in any offering document for the Securities, the Indenture or the Securities (other than its certificate of authentication), or the determination as to which beneficial owners
are entitled to receive any notices hereunder. 
 Section 7.5 Notice of Defaults. If a Default occurs and if it is known to the
Trustee, the Trustee shall give to each Securityholder notice of the Default within 90 days after it occurs or, if later, within 15 days after it is known to the Trustee, unless such Default shall have been cured or waived before the giving of such
notice. Notwithstanding the preceding sentence, except in the case of a Default described in Section 6.1(1) or (2), the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interest of the Securityholders. The preceding sentence shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby expressly excluded from this Indenture, as permitted by the TIA.
The Trustee shall not be deemed to have knowledge of a Default unless a Responsible Officer of the Trustee has received written notice of such Default, which notice specifically references this Indenture and the Securities. 
 Section 7.6 Reports by Trustee to Holders. Within 60 days after each May 15 beginning with the May 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), if required by such Section 313(a). The Trustee also shall comply with TIA Section 313(b).

 A copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each securities exchange, if any, on
which the Securities are listed. The Company agrees to notify the Trustee promptly whenever the Securities become listed on any securities exchange and of any delisting thereof. 
 Section 7.7 Compensation and Indemnity. The Company agrees: 
 (a) to pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services rendered by it hereunder (which compensation shall not be limited
(to the extent permitted by law) by any provision of law in regard to the compensation of a trustee of an express trust); 
 (b) to reimburse
the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses, advances and
disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and 
  

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 (c) to indemnify the Trustee or any predecessor Trustee and their agents for, and to hold them harmless
against, any loss, damage, claim, liability, cost or expense (including attorney’s fees and expenses, and taxes (other than taxes based upon, measured by or determined by the income of the Trustee)) incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim (whether asserted by the Company or any Holder or any other person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder. 
 To secure the Company’s payment obligations in
this Section 7.7, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay the principal amount, Redemption Price, Purchase Price, Change of Control
Purchase Price or interest, including contingent interest and additional interest, if any, as the case may be, on particular Securities. 
 The Company’s payment obligations pursuant to this Section 7.7 shall survive the discharge of this Indenture and the resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.1(5) or (6), the expenses including the reasonable charges and expenses of its counsel, are intended to constitute expenses of administration under any bankruptcy law. 
 Section 7.8 Replacement of Trustee. The Trustee may resign by so notifying the Company; provided, however, no such resignation shall be
effective until a successor Trustee has accepted its appointment pursuant to this Section 7.8. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may remove the Trustee by so notifying the Trustee
and the Company. The Company shall remove the Trustee if: 
  

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

  

	 	(2)	the Trustee is adjudged bankrupt or insolvent; 

  

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

  

	 	(4)	the Trustee otherwise 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, by resolution of its Board of Directors, a successor Trustee. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance
to the retiring Trustee and the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor
Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7. 
  

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 If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of a majority in aggregate principal amount of the Securities at the time outstanding may petition any court of competent jurisdiction at the expense of the Company for the appointment of a
successor Trustee. 
 If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 Section 7.9 Successor Trustee by
Merger. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation, the resulting, surviving or transferee corporation without any further act
shall be the successor Trustee. 
 Section 7.10 Eligibility; Disqualification. The Trustee shall at all times satisfy the
requirements of TIA Sections 310(a)(1) and 310(b). The Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. Nothing herein
contained shall prevent the Trustee from filing with the Commission the application referred to in the penultimate paragraph of TIA Section 310(b). 
 Section 7.11 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 VIII 
 DISCHARGE OF INDENTURE 
 Section
8.1 Discharge of Liability on Securities. When (i) the Company delivers to the Trustee all outstanding Securities (other than Securities replaced or repaid pursuant to Section 2.7) for cancellation or (ii) all outstanding
Securities have become due and payable and the Company deposits with the Trustee cash sufficient to pay all amounts due and owing on all outstanding Securities (other than Securities replaced pursuant to Section 2.7), and if in either case the
Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 7.7, cease to be of further effect. The Trustee shall join in the execution of a document prepared by the Company acknowledging
satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers’ Certificate and Opinion of Counsel and at the cost and expense of the Company. 
 Section 8.2 Repayment to the Company. The Trustee and the Paying Agent shall return to the Company upon written request any money or
securities held by them for the 
  

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 payment of any amount with respect to the Securities that remains unclaimed for two years, subject to applicable
unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person and the Trustee and the
Paying Agent shall have no further liability to the Securityholders with respect to such money or securities for that period commencing after the return thereof. 
 ARTICLE IX 
 AMENDMENTS 
 Section 9.1 Without Consent of Holders. The Company and the Trustee may amend this Indenture or the Securities without the consent of any
Securityholder to: 
 (a) add to the covenants of the Company for the benefit of the Holders of Securities; 
 (b) surrender any right or power herein conferred upon the Company; 
 (c) provide for conversion rights of Holders of Securities if any reclassification or change of the Common Stock or any consolidation, merger or sale of all or substantially all of the Company’s assets occurs;

 (d) provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation,
conveyance, transfer or lease pursuant to Article V hereof; 
 (e) reduce the Conversion Price; provided, however, that such reduction
in the Conversion Price shall not adversely affect the interests of the Holders of Securities (after taking into account tax and other consequences of such reduction); 
 (f) comply with the requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 
 (g) cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise defective; provided, however, that such action pursuant to
this clause (g) does not, in the good faith opinion of the Board of Directors of the Company (as evidenced by a Board Resolution) and the Trustee, adversely affect the interests of the Holders of Securities in any material respect; and

 (h) add or modify any other provisions herein with respect to matters or questions arising hereunder which the Company and the Trustee may
deem necessary or desirable and which will not adversely affect the interests of the Holders of Securities. 
 Section 9.2 With
Consent of Holders. Except as provided below in this Section 9.2, this Indenture or the Securities may be amended, modified or supplemented, and noncompliance in any particular instance with any provision of this Indenture or the Securities
may be waived, in each case with the written consent of the Holders of at least a majority of the principal amount of the Securities at the time outstanding. 
  

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 Without the written consent or the affirmative vote of each Holder of Securities affected thereby, an
amendment or waiver under this Section 9.2 may not: 
 (a) change the maturity of the principal amount of, or any installment of
interest, including contingent interest or additional interest, on, any Security; 
 (b) reduce the principal amount of, or interest,
including contingent interest or additional interest, payable on, or the Redemption Price, Purchase Price or Change of Control Purchase Price of any Security; 
 (c) impair or adversely affect the conversion rights of any Holder of Securities; 
 (d) reduce the value of
the Common Stock to which reference is made in determining whether an interest adjustment will be made on the Securities, or change the method by which this value is calculated; 
 (e) change the currency of any amount owed or owing under the Security or any interest thereon from U.S. Dollars; 
 (f) alter or otherwise modify the rate of interest, including contingent interest or additional interest, on any Security, or the manner of calculation
thereof, or extend time for payment of any amounts due and payable to the Holders of the Securities; 
 (g) impair the right of any Holder to
institute suit for the enforcement of any payment or with respect to, or conversion of, any Security; 
 (h) modify the obligation of the
Company to maintain an office or agency in The City of New York pursuant to Section 4.5; 
 (i) except as otherwise permitted or
contemplated by Article V or X, adversely affect the purchase right of the Holders of the Securities as provided in Article III or the right of the Holders of the Securities to convert any Security as provided in Article X; 
 (j) modify the provisions of Article III in a manner adverse to the Holders of the Securities; 
 (k) modify any of the provisions of this Section, or reduce the percentage of the principal amount of outstanding Securities required to waive a default,
except to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each outstanding Security affected thereby; or 
 (l) reduce the percentage of the principal amount of the outstanding Securities the consent of whose Holders is required for any supplemental indenture
or the consent of whose Holders is required for any waiver provided for in this Indenture. 
  

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 It shall not be necessary for the consent of the Holders under this Section 9.2 to approve the
particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. 
 After an amendment
under this Section 9.2 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. 
 Nothing in
this Section 9.2 shall impair the ability of the Company and the Trustee to amend this Indenture or the Securities without the consent of any Securityholder to provide for the assumption of the Company’s obligations to the Holders of
Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant to Article V hereof. 
 Section
9.3 Compliance with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall comply with the TIA. 
 Section 9.4 Revocation and Effect of Consents, Waivers and Actions. Until an amendment, waiver or other action by Holders becomes effective, a consent thereto by a Holder of a Security hereunder is a continuing consent by the
Holder and every subsequent Holder of that Security or portion of the Security that evidences the same obligation as the consenting Holder’s Security, even if notation of the consent, waiver or action is not made on the Security. However, any
such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment, waiver or action becomes
effective. After an amendment, waiver or action becomes effective, it shall bind every Securityholder. 
 Section 9.5 Notation on or
Exchange of Securities. Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for outstanding Securities. 
 Section 9.6 Trustee to Sign
Supplemental Indentures. The Trustee shall sign any supplemental indenture authorized pursuant to this Article IX if the amendment contained therein does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it
does, the Trustee may, but need not, sign such supplemental indenture. In signing such supplemental indenture the Trustee shall receive, and (subject to the provisions of Section 7.1) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture. 
 Section 9.7 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 X 
 CONVERSIONS 
 Section 10.1 Conversion Privilege. (a) Subject to and upon compliance
with the provisions of this Article X, a Holder of a Security shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 or an integral multiple of $1,000) of such Security into cash
and, if applicable, shares of Common Stock at the Conversion Price in effect on the Conversion Date: 
 (1) during any
Conversion Period, if the Sale Price of the Common Stock for at least 20 Trading Days in the 30 Trading Day period ending on the first day of such Conversion Period was more than 120% of the Conversion Price in effect on such 30th Trading Day (in
the event that the Conversion Price on such thirtieth Trading Day is not the same as the Conversion Price in effect for each of such thirty Trading Days, the Conversion Agent shall make such adjustments as it, in its discretion, deems appropriate in
determining whether the foregoing condition has been met); 
 (2) during the five Business Day period following any 10
consecutive Trading Day period in which the average of the Trading Prices of the Securities for such 10 Trading Day period was less than 105% of the average of the Parity Values of the Securities during the same period; 
 (3) at any time prior to the close of business on the second Business Day preceding the date fixed for redemption, if such Security has
been called for redemption pursuant to Article III hereof; 
 (4) during any period after the 30th day following the original
issuance of the Securities in which (A) the credit rating assigned to the Securities by both Moody’s Investor Services, Inc. and Standard & Poor’s Rating Services is below Baa3 or BBB-, respectively, (B) the credit
rating assigned to the Securities by both such rating agencies is suspended or withdrawn or (C) neither of such rating agencies is then rating the Securities; or 
 (5) as provided in Section (b) of this Section 10.1. 
 The Conversion Agent shall, on behalf of the Company, determine on a daily basis whether the Securities shall be convertible as a result of the
occurrence of an event specified in clause (1) or clause (2) above and, if the Securities shall be so convertible, the Conversion Agent shall promptly deliver to the Company and the Trustee written notice thereof. Whenever the Securities
shall become convertible pursuant to Section 10.1, the Company or, at the Company’s request, the Trustee in the name and at the expense of the Company, shall notify the Holders of the event triggering such convertibility in the manner
provided in Section 11.2, and the Company shall also publicly announce such information and publish it on the Company’s Web site. Any notice so given shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. 
  

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 (b) In addition, in the event that: 
 (1) (A) the Company distributes to all holders of its shares of Common Stock rights or warrants entitling them (for a period expiring
within 60 days of the Record Date for such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the Sale Price of the Common Stock on the Business Day immediately preceding the announcement of such
distribution, (B) the Company distributes to all holders of its shares of Common Stock, cash or other assets, debt securities or rights or warrants to purchase its securities, where the Fair Market Value (as determined by the Board of
Directors) of such distribution per share of Common Stock exceeds 10% of the Sale Price of a share of Common Stock on the Business Day immediately preceding the date of declaration of such distribution, or (C) a Change of Control occurs but
Holders of Securities do not have the right to require the Company to purchase their Securities as a result of such Change of Control, because of the provisions set forth in Section 3.8(a)(2), then, in each case, the Securities may be
surrendered for conversion at any time on and after the date that the Company gives notice to the Holders of such right, which shall be not less than 20 days prior to the Ex-Dividend Time for such distribution, in the case of (A) or (B), or
within 30 days after the occurrence of the Change of Control, in the case of (C), until the earlier of the close of business on the Business Day immediately preceding the Ex-Dividend Time or the date the Company announces that such distribution will
not take place, in the case of (A) or (B), or the earlier of 30 days after the Company’s delivery of the Change of Control Purchase Notice or the date the Company announces that the Change of Control will not take place, in the case of
(C). 
 (2) the Company consolidates with or merges into another corporation, or is a party to a binding share exchange
pursuant to which the shares of Common Stock would be converted into cash, securities or other property as set forth in Section 10.4 hereof, then the Securities may be surrendered for conversion at any time from and after the date which is 15
days prior to the date announced by the Company as the anticipated effective time of such transaction until 15 days after the actual date of such transaction. 
 “Conversion Period” means the period from and including the thirtieth Trading Day in a fiscal quarter to, but not including, the thirtieth Trading Day in the immediately following fiscal
quarter. 
 “Parity Value”, on any day, means the product of (x) the Sale Price for the Common Stock multiplied
by (x) the then-current Conversion Rate. 
 “Conversion Value”, on any day, means the product of (x) the
average of the Sale Prices of the Common Stock for the Trading Days during the Cash Settlement Period multiplied by (y) the then-current Conversion Rate. 
 “Cash Settlement Period” means, with respect to any Securities, the ten consecutive Trading Days beginning on the second Trading Day after the Conversion Date. 
 “Ex-Dividend Time” means, with respect to any issuance or distribution on shares of Common Stock, the first date on which the
shares of Common Stock trade regular way on the principal securities market on which the shares of Common Stock are then traded without the right to receive such issuance or distribution. 
  

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 The “Trading Price” of the Securities, on any date of determination, means the
average of the secondary market bid quotations per Security obtained by the Company or the Calculation Agent for $10,000,000 principal amount at maturity of Securities at approximately 3:30 p.m., New York City time, on such determination date from
three independent nationally recognized securities dealers selected by the Company, provided that if at least three such bids cannot reasonably be obtained by the Company or the Calculation Agent, but two such bids are obtained, then the average of
the two bids shall be used, and if only one such bid can reasonably be obtained by the Company or the Calculation Agent, this one bid shall be used. If either the Company or the Calculation Agent cannot reasonably obtain at least one bid for
$10,000,000 principal amount at maturity of Securities from a nationally recognized securities dealer or in the reasonable judgment of the Company, 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 then-current Conversion Rate multiplied by (b) the Sale Price of the Common Stock on such determination date. 
 The “Conversion Rate”, at any time, shall equal (A) $1,000 divided by (B) the Conversion Price at such time, rounded to three decimal places (rounded up if the fourth decimal place
thereof is 5 or more and otherwise rounded down). 
 Section 10.2 Conversion Procedure; Conversion Price; Fractional Shares.

 (a) Each Security shall be convertible at the office of the Conversion Agent into cash and, if applicable, fully paid and nonassessable
shares (calculated to the nearest 1/100th of a share) of Common Stock. The Security will be converted into (i) cash in an amount (the “Cash Amount”) equal to the lesser of (w) the principal amount of the Security
and (x) the Conversion Value of the Security and (ii) if the Conversion Value of the Security is greater than the Cash Amount, then a number of shares of Common Stock (the “Net Shares”, and together with the Cash
Amount, the “Settlement Amount”) equal to the greater of (x) zero and (y) the sum of the Daily Share Amounts for each of the ten consecutive Trading Days in the Cash Settlement Period. The “Daily Share
Amount” for each day in the Cash Settlement Period is equal to the quotient of (A) .10 multiplied by the difference between (I) the product of the then-current Conversion Rate multiplied by the Sale Price of the Common Stock
on such Trading Day and (II) $1,000 divided by (B) the Sale Price of the Common Stock on such Trading Day. No payment or adjustment shall be made in respect of dividends on the Common Stock or accrued interest on a converted Security, except as
described in Section 10.9 hereof. The Company shall not issue any fraction of a share of Common Stock in connection with any conversion of Securities, but instead shall, subject to Section 10.3(h) hereof, make a cash payment (calculated to
the nearest cent) equal to such fraction multiplied by the Sale Price of the Common Stock on the last Trading Day prior to the Conversion Date. Notwithstanding the foregoing, a Security in respect of which a Holder has delivered a Purchase Notice or
Change of Control Purchase Notice exercising such Holder’s option to require the Company to repurchase such Security may be converted only if such notice of exercise is withdrawn in accordance with Section 3.10 hereof. 
  

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 (b) Before any Holder of a Security shall be entitled to convert the same, such Holder shall, in the case
of Securities issued in global form, comply with the procedures of the Depositary in effect at that time, and in the case of definitive Securities, surrender such Securities, duly endorsed to the Company or in blank, at the office of the Conversion
Agent, and shall give written notice to the Company at said office or place that such Holder elects to convert the same and shall state in writing therein the principal amount of Securities to be converted and the name or names (with addresses) in
which such Holder wishes the certificate or certificates for Common Stock, if any, to be issued. 
 Before any such conversion, a Holder also
shall pay all funds required, if any, relating to interest on the Securities, as provided in Section 10.9, and all taxes or duties, if any, as provided in Section 10.8. 
 If more than one Security shall be surrendered for conversion at one time by the same Holder, the amount of cash and number of full shares of Common
Stock, if any, which shall be deliverable upon conversion shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted thereby) so surrendered. Subject to the next
succeeding sentence, the Company will, on the third Business Day following the final day of the Cash Settlement Period with respect to the Security to be converted, issue and deliver at said office or place to such Holder of a Security, or to such
Holder’s nominee or nominees, the amount of cash and certificates for the number of full shares of Common Stock, if any, to which such Holder shall be entitled as aforesaid, together, subject to the last sentence of Section (a) above, with
cash in lieu of any fraction of a share to which such Holder would otherwise be entitled. The Company shall not be required to deliver certificates for shares of Common Stock while the stock transfer books for such stock or the security register are
duly closed for any purpose, but certificates for shares of Common Stock shall be issued and delivered as soon as practicable after the opening of such books or security register. 
 (c) A Security shall be deemed to have been converted as of the close of business on the date of the surrender of such Securities for conversion as
provided above (the “Conversion Date”), and the person or persons entitled to receive the Common Stock, if any, issuable upon such conversion shall be treated for all purposes as the record Holder or Holders of such Common
Stock as of the close of business on such date. 
 (d) In case any Security shall be surrendered for partial conversion, the Company shall
execute and the Trustee shall authenticate and deliver to or upon the written order of the Holder of the Security so surrendered, without charge to such Holder (subject to the provisions of Section 10.8 hereof), a new Security or Securities in
authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Securities. 
 (e) If a Holder
tenders Securities for conversion and the Conversion Value is being determined at a time when the Securities are convertible into other property (the “Exchange Property”) in addition to, or in lieu of, Common Stock, the
Conversion Value of each Security and the Daily Share Amount shall be determined based on the value thereof during the Cash Settlement Period. For the purposes of this Section, the “Sale Price of the Common Stock” shall be deemed to equal
the sum of (A) the Sale Price of a share of Common Stock (to the extent the Securities are still convertible into Common Stock), (B) 100% of the value of any 
  

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 Exchange Property consisting of cash received per share of Common Stock, (C) the Sale Price of any Exchange Property
received per share of Common Stock consisting of securities that are traded on a U.S. national securities exchange or approved for quotation on the National Association of Securities Dealers Automated Quotation System and (D) the fair market
value of any other Exchange Property received per share, as determined by a nationally recognized investment bank selected by the Company for this purpose. 
 (f) Settlement (in cash and/or shares) will occur on the third Business Day following the final day of the Cash Settlement Period. Any amount of the Net Shares to be delivered shall be paid in Exchange Property in
addition to or in lieu of shares of Common Stock to the extent Securities are convertible into Exchange Property at such time in addition to or in lieu of shares of Common Stock. If the Securities are convertible into more than one kind of property,
the amount of each kind to be delivered in respect of the Net Shares shall be in the proportion that the value (as calculated in Section 10.2(e)) of such kind bears to the value of all such Exchange Property and/or Common Stock. If the
foregoing calculations would require the Company to deliver a fractional share or unit of Exchange Property to a Holder of Securities being converted, the Company shall deliver cash in lieu of such fractional share or unit based on the value of the
Exchange Property. 
 Section 10.3 Adjustment of Conversion Price for Common Stock. 
 The Conversion Price shall be adjusted from time to time as follows: 
 (a) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, pay a dividend or make a distribution in shares of Common Stock to all holders of its outstanding shares of
Common Stock, then the Conversion Price in effect at the opening of business on the date following the record date fixed for the determination of stockholders entitled to receive such dividend or other distribution shall be reduced by multiplying
such Conversion Price by a fraction: 
 (1) the numerator of which shall be the number of shares of Common Stock outstanding at the close of
business on the Record Date fixed for such determination; and 
 (2) the denominator of which shall be the sum of such number of shares and
the total number of shares constituting such dividend or other distribution. 
 Such reduction shall become effective immediately after the
opening of business on the day following the Record Date fixed for such determination. If any dividend or distribution of the type described in this Section 10.3(a) is declared but not so paid or made, the Conversion Price shall again be
adjusted to the Conversion Price which would then be in effect if such dividend or distribution had not been declared. 
 (b) In case the
Company shall, at any time or from time to time while any of the Securities are outstanding, subdivide its outstanding shares of Common Stock into a greater number of shares of Common Stock, then the Conversion Price in effect at the opening of
business on the day following the day upon which such subdivision becomes effective shall be proportionately reduced, and conversely, in case the Company shall, at any time or from time to time while any of the Securities are outstanding, combine
its outstanding shares of Common 
  

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 Stock into a smaller number of shares of Common Stock, then the Conversion Price in effect at the opening of business on
the day following the day upon which such combination becomes effective shall be proportionately increased. 
 Such reduction or increase, as
the case may be, shall become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
 (c) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, issue rights or warrants (other than any
rights or warrants referred to in Section 10.3(d)) to all holders of its shares of Common Stock entitling them to subscribe for or purchase shares of Common Stock (or securities convertible into shares of Common Stock) at a price per share (or
having a conversion price per share) less than the Sale Price on the Business Day immediately preceding the date of the announcement of such issuance (treating the conversion price per share of the securities convertible into Common Stock as equal
to (x) the sum of (i) the price for a unit of the security convertible into Common Stock and (ii) any additional consideration initially payable upon the conversion of such security into Common Stock divided by (y) the number of
shares of Common Stock initially underlying such convertible security), then the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect at the opening of business on the
date after such date of announcement by a fraction: 
 (1) the numerator of which shall be the number of shares of Common
Stock outstanding on the close of business on the date of announcement, plus the number of shares or securities which the aggregate offering price of the total number of shares or securities so offered for subscription or purchase (or the aggregate
conversion price of the convertible securities so offered) would purchase at such Sale Price of the Common Stock; and 
 (2)
the denominator of which shall be the number of shares of Common Stock outstanding at the close of business on the date of announcement, plus the total number of additional shares of Common Stock so offered for subscription or purchase (or into
which the convertible securities so offered are convertible). 
 Such adjustment shall become effective immediately after the opening of
business on the day following the date of announcement of such issuance. To the extent that shares of Common Stock (or securities convertible into shares of Common Stock) are not delivered pursuant to such rights or warrants, upon the expiration or
termination of such rights or warrants, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of
only the number of shares of Common Stock (or securities convertible into shares of Common Stock) actually delivered. In the event that such rights or warrants are not so issued, the Conversion Price shall again be adjusted to be the Conversion
Price which would then be in effect if the date fixed for the determination of stockholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or
purchase shares of Common Stock at less than such Sale Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received for such rights or warrants, the value of such
consideration if other than cash, to be determined by the Board of Directors. 
  

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 (d) In case the Company shall, at any time or from time to time while any of the Securities are
outstanding, by dividend or otherwise, distribute to all holders of its shares of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation and the Common Stock
is not changed or exchanged), cash, shares of its capital stock (other than any dividends or distributions to which Section 10.3(a) applies), evidences of its Indebtedness or other assets, including securities, but excluding (i) any rights
or warrants referred to in Section 10.3(c), (ii) dividends or distributions of stock, securities or other property or assets (including cash) in connection with a reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance to which Section 10.4 applies and (iii) dividends and distributions paid exclusively in cash (such capital stock, evidence of its indebtedness, cash, other assets or securities being distributed hereinafter
in this Section 10.3(d) called the “distributed assets”), then, in each such case, subject to the third and fourth succeeding paragraphs and the last Section of this Section 10.3(d), the Conversion Price shall be reduced so that
the same shall be equal to the price determined by multiplying the Conversion Price in effect immediately prior to the close of business on the Record Date with respect to such distribution by a fraction: 
 (1) the numerator of which shall be the Current Market Price of the Common Stock, less the Fair Market Value on such date of the portion
of the distributed assets so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the Record Date)(determined as provided in Section 10.3(g)) on such date; and

 (2) the denominator of which shall be such Current Market Price. 
 Such reduction shall become effective immediately prior to the opening of business on the day following the Record Date for such distribution. In the event that such
dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such dividend or distribution had not been declared. 
 If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 10.3(d) by reference to the actual or
when issued trading market for any distributed assets comprising all or part of such distribution, it must in doing so consider the prices in such market over the same period (the “Reference Period”) used in computing the
Current Market Price pursuant to Section 10.3(g) to the extent possible, unless the Board of Directors determines in good faith that determining the Fair Market Value during the Reference Period would not be in the best interest of the Holders.

 In the event any such distribution consists of shares of capital stock of, or similar equity interests in, one or more of the
Company’s Subsidiaries (a “Spin-Off”), the Fair Market Value of the securities to be distributed shall equal the average of the closing sale prices of such securities on the principal securities market on which such
securities are traded for the five consecutive Trading Days commencing on and including the sixth day of trading of those securities after the effectiveness of the Spin-Off, and the Current Market Price shall be measured 
  

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 for the same period. In the event, however, that an underwritten initial public offering of the securities in the
Spin-Off occurs simultaneously with the Spin-Off, Fair Market Value of the securities distributed in the Spin-Off shall mean the initial public offering price of such securities and the Current Market Price shall mean the Sale Price for the Common
Stock on the same Trading Day. 
 Rights or warrants distributed by the Company to all holders of its shares of Common Stock entitling them
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 shares of Common Stock shall be deemed not to have been distributed for purposes
of this Section 10.3(d) (and no adjustment to the Conversion Price under this Section 10.3(d) will be required) until the occurrence of the earliest Trigger Event. If such right or warrant is subject to subsequent events, upon the
occurrence of which such right or warrant shall become exercisable to purchase different distributed assets, evidences of indebtedness or other assets, or entitle the holder to purchase a different number or amount of the foregoing or to purchase
any of the foregoing at a different purchase price, then the occurrence of each such event shall be deemed to be the date of issuance and record date with respect to a new right or warrant (and a termination or expiration of the existing right or
warrant without exercise by the holder 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 resulted in an adjustment to the Conversion Price under this Section 10.3(d): 
 (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 of shares of Common Stock with respect to such rights or warrants (assuming such holder had retained such
rights or warrants), made to all holders of shares 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, the Conversion Price shall be readjusted as if such rights and warrants had never been issued. 
 For purposes of this Section 10.3(d) and Sections 10.3(a), 10.3(b) and 10.3(c), any dividend or distribution to which this Section 10.3(d) is
applicable that also includes (i) shares of Common Stock, (ii) a subdivision or combination of shares of Common Stock to which Section 10.3(b) applies or (iii) rights or warrants to subscribe for or purchase shares of Common
Stock to which Section 10.3(c) applies (or any combination thereof), shall be deemed instead to be: 
 (1) a dividend or
distribution of the evidences of indebtedness, assets, shares of capital stock, rights or warrants, other than such shares of Common Stock, such subdivision or combination or such rights or warrants to which Sections 10.3(a), 10.3(b) 
  

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 and 10.3(c) apply, respectively (and any Conversion Price reduction required by this Section 10.3(d)
with respect to such dividend or distribution shall then be made), immediately followed by 
 (2) a dividend or distribution
of such shares of Common Stock, such subdivision or combination or such rights or warrants (and any further Conversion Price reduction required by Sections 10.3(a), 10.3(b) and 10.3(c) with respect to such dividend or distribution shall then be
made), except: 
 (A) the Record Date of such dividend or distribution shall be substituted as (i) “the date fixed
for the determination of stockholders entitled to receive such dividend or other distribution,” “Record Date fixed for such determinations” and “Record Date” within the meaning of Section 10.3(a), (ii) “the
day upon which such subdivision becomes effective” and “the day upon which such combination becomes effective” within the meaning of Section 10.3(b), and (iii) as “the date fixed for the determination of stockholders
entitled to receive such rights or warrants,” “the Record Date fixed for the determination of the stockholders entitled to receive such rights or warrants” and such “Record Date” within the meaning of Section 10.3(c);
and 
 (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding at the
close of business on the date fixed for such determination” within the meaning of Section 10.3(a) and any reduction or increase in the number of shares of Common Stock resulting from such subdivision or combination shall be disregarded in
connection with such dividend or distribution. 
 In the event of any distribution referred to in this Section 10.3(d) in which
(1) the Fair Market Value (as determined by the Board of Directors) of such distribution applicable to one share of Common Stock (determined as provided above) equals or exceeds the average of the Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Record Date for such distribution or (2) the average of the Sale Prices of the Common Stock over the ten consecutive Trading Day period ending on the Record Date for such distribution exceeds the
Fair Market Value of such distribution by less than $1.00, then, from and after the Record Date for such distribution, the Conversion Value and the Daily Share Amount will be calculated based upon, in addition to the shares of Common Stock into
which the Security is convertible (before taking into account the net share settlement provisions set forth in Section 10.2), the kind and amount of securities, cash or other assets comprising the distribution that a holder of a number of
shares of Common Stock equal to the then-current Conversion Rate would have received if such Holder had converted the Security immediately prior to the Record Date for determining the holders of Common Stock entitled to receive the distribution.

 In the event of any distribution referred to in Section 10.3(c) or 10.3(d), where, in the case of a distribution described in
Section 10.3(d), the Fair Market Value of such distribution per share of Common Stock (as determined by the Board of Directors) exceeds 10% of the Sale Price of a share of Common Stock on the Business Day immediately preceding the declaration
date for such distribution, then, if such distribution would also trigger a conversion right under 
  

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 Section 10.1(b) or the Securities are otherwise convertible pursuant to this Article X, the Company will be required
to give notice to the Holders of Securities at least 20 days prior to the Ex-Dividend Time for the distribution and, upon the giving of notice, the Securities may be surrendered for conversion at any time on and after the date that the Company gives
notice to the Holders of such conversion right, until the close of business on the Business Day prior to the Ex-Dividend Time or the Company announces that such distribution will not take place. No adjustment to the Conversion Price or the ability
of a Holder of a Security to convert will be made if the Holder will otherwise participate in such distribution without conversion. 
 (e) In
case the Company shall, at any time or from time to time while any of the Securities are outstanding, by dividend or otherwise, distribute to all holders of its shares of Common Stock, cash (excluding any cash that is distributed upon a
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which Section 10.4 applies or as part of a distribution referred to in Section 10.3(d)), in an aggregate amount that, combined
together with: 
 (1) the aggregate amount of any other such distributions to all holders of shares of Common Stock made
exclusively in cash within the 12 months preceding the date of payment of such distribution, and in respect of which no adjustment pursuant to this Section 10.3(e) has been made; and 
 (2) the aggregate amount of any cash, plus the Fair Market Value (as determined by the Board of Directors) of consideration payable in
respect of any tender offer by the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock concluded within the 12 months preceding the date of such distribution, and in respect of which no adjustment pursuant to
Section 10.3(f) has been made; 
 exceeds 10% of the product of the Current Market Price of the Common Stock on the Record Date with respect to such
distribution, times the number of shares of Common Stock outstanding on such date, then, and in each such case, immediately after the close of business on such 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 the close of business on such Record Date by a fraction: 
 (1) the numerator of which shall be equal to the Current Market Price on the Record Date, less an amount equal to the quotient of (x) the excess of such combined amount over such 10% and (y) the number of
shares of Common Stock outstanding on the Record Date; and 
 (2) the denominator of which shall be equal to the Current
Market Price on such date. 
 However, in the event that the then Fair Market Value (as so determined) of the portion of cash and other
securities, if any, so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder shall have
the right to receive upon conversion of a Security (or any portion thereof) the amount of cash in excess of 
  

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 such 10% such Holder would have received had such Holder converted such Security (or portion thereof) immediately prior
to such Record Date. In the event that such dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such dividend or distribution had not been
declared. 
 (f) In case a tender offer made by the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock
shall expire and such tender offer (as amended upon the expiration thereof) shall require the payment to stockholders (based on the acceptance (up to any maximum specified in the terms of the tender offer) of shares tendered) of an aggregate
consideration having a Fair Market Value (as determined by the Board of Directors) that combined together with: 
 (1) the
aggregate amount of the cash, plus the Fair Market Value (as determined by the Board of Directors), as of the expiration of such tender offer, of consideration payable in respect of any other tender offers, by the Company or any of its Subsidiaries
for all or any portion of the shares of Common Stock expiring within the 12 months preceding the expiration of such tender offer and in respect of which no adjustment pursuant to this Section 10.3(f) has been made; and 
 (2) the aggregate amount of any distributions to all holders of shares of Common Stock made exclusively in cash within 12 months preceding
the expiration of such tender offer and in respect of which no adjustment pursuant to Section 10.3(e) has been made; 
 exceeds 10% of the product of
the Current Market Price of the Common Stock as of the last time (the “Expiration Time”) tenders could have been made pursuant to such tender offer (as it may be amended), times the number of shares of Common Stock
outstanding (including any tendered shares) on the Expiration Time (such excess, the “Excess Amount”), then, and in each such case, immediately prior to the opening of business on the day after the date of the Expiration
Time, the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the close of business on the date of the Expiration Time by a fraction: 
 (1) the numerator of which shall be (x) the product of (i) the number of shares of Common Stock outstanding (including any
tendered shares) at the Expiration Time and (ii) the Current Market Price of the Common Stock at the Expiration Time, less (y) the Excess Amount; and 
 (2) the denominator shall be the product of the number of shares of Common Stock outstanding (including any tendered shares) at the
Expiration Time and the Current Market Price of the Common Stock at the Expiration Time. 
 Such reduction (if any) shall become effective
immediately prior to the opening of business on the day following the Expiration Time. 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 such purchases or all or a portion of such purchases are rescinded, the Conversion Price shall again be adjusted to be the Conversion Price which would 
  

 54 

 then be in effect if such (or such portion of the) tender offer had not been made. If the application of this
Section 10.3(f) 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 10.3(f). 
 Pursuant to rights issued under the Company’s preferred share purchase rights plan, if holders of the Securities exercising the right of conversion
attaching after the date the rights separate from the underlying Common Stock are not entitled to receive the rights that would otherwise be attributable (but for the date of conversion) to the shares of Common Stock received upon conversion, the
Conversion Price will be adjusted as though the rights were being distributed to holders of Common Stock on the date of such separation. If such an adjustment is made and the rights are later redeemed, invalidated or terminated, then a corresponding
reversing adjustment will be made to the conversion price on an equitable basis. 
 (g) For purposes of this Article X, the following terms
shall have the meanings indicated: 
 “Current Market Price” on any date means the average of the daily Sale Prices
per share of Common Stock for the ten consecutive Trading Days immediately prior to such date; provided, however, that if: 
 (1) the “ex” date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Price pursuant to
Section 10.3(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading Days, the Sale Price for each Trading Day prior to the “ex” date for such other event shall be adjusted by dividing such Sale Price by the
same fraction by which the Conversion Price is so required to be adjusted as a result of such other event; 
 (2) the
“ex” date for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Price pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the
“ex” date for the issuance or distribution requiring such computation and prior to the day in question, the Sale Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Sale
Price by the reciprocal of the fraction by which the Conversion Price is so required to be adjusted as a result of such other event; and 
 (3) the “ex” date for the issuance or distribution requiring such computation is prior to the day in question, after taking into account any adjustment required pursuant to clause (1) or (2) of
this proviso, the Sale Price for each Trading Day on or after such “ex” date shall be adjusted by adding thereto the amount of any cash and the Fair Market Value (as determined by the Board of Directors in a manner consistent with any
determination of such value for purposes of Section 10.3(d), (e) or (f)) of the evidences of Indebtedness, shares of capital stock or assets being distributed applicable to one share of Common Stock as of the close of business on the day
before such “ex” date. 
 For purposes of any computation under Section 10.3(f), if the “ex” date for any event (other than the
tender offer requiring such computation) that requires an adjustment to the Conversion Price pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the Expiration Time for the 
  

 55 

 tender or exchange offer requiring such computation and prior to the day in question, the Sale Price for each Trading Day
on and after the “ex” date for such other event shall be adjusted by dividing such Sale Price by the reciprocal of the fraction by which the Conversion Price is so required to be adjusted as a result of such other event. For purposes of
this paragraph, the term “ex” date, when used: 
 (1) with respect to any issuance or distribution, means the first
date on which the shares of Common Stock trade regular way on the relevant exchange or in the relevant market from which the Sale Price was obtained without the right to receive such issuance or distribution; 
 (2) with respect to any subdivision or combination of shares of Common Stock, means the first date on which the shares of Common Stock
trade regular way on such exchange or in such market after the time at which such subdivision or combination becomes effective; and 
 (3) with respect to any tender or exchange offer, means the first date on which the shares of Common Stock trade regular way on such exchange or in such market after the Expiration Time of such offer. 
 Notwithstanding the foregoing, whenever successive adjustments to the Conversion Price are called for pursuant to this Section 10.3, such adjustments shall be made
to the Current Market Price as may be necessary or appropriate to effectuate the intent of this Section 10.3 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
 “Fair Market Value” shall mean the amount which a willing buyer would pay a willing seller in an arm’s length transaction
(as determined by the Board of Directors, whose determination shall be conclusive). 
 “Record Date” shall mean, with
respect to any dividend, distribution or other transaction or event in which the holders of shares of Common Stock have the right to receive any cash, securities or other property or in which the shares of Common Stock (or other applicable security)
is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of
Directors or by statute, contract or otherwise). 
 (h) The Company shall be entitled to make such additional reductions in the Conversion
Price, in addition to those required by Sections 10.3(a), (b), (c), (d), (e) and (f), as shall be necessary in order that any dividend or distribution of Common Stock, any subdivision, reclassification or combination of shares of Common Stock
or any issuance of rights or warrants referred to above shall not be taxable to the holders of Common Stock for U.S. Federal income tax purposes. 
 (i) To the extent permitted by applicable law, the Company may, from time to time, reduce the Conversion Price by any amount for any period of time, if such period is at least 20 days and the reduction is irrevocable during the period.
Whenever the Conversion Price is reduced pursuant to the preceding sentence, the Company shall mail to the Trustee and each 
  

 56 

 Holder at the address of such Holder as it appears in the register of the Securities maintained by the Registrar, at
least 15 days prior to the date the reduced Conversion Price takes effect, a notice of the reduction stating the reduced Conversion Price and the period during which it will be in effect. 
 (j) In any case in which this Section 10.3 shall require that any adjustment be made effective as of or retroactively immediately following a Record
Date, the Company may elect to defer (but only for five Trading Days following the filing of the statement referred to in Section 10.5) issuing to the Holder of any Securities converted after such Record Date the shares of Common Stock issuable
upon such conversion over and above the shares of Common Stock issuable upon such conversion on the basis of the Conversion Price prior to adjustment; provided, however, that the Company shall deliver to such Holder a due bill or other
appropriate instrument evidencing such Holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment. 
 (k) All calculations under this Section 10.3 shall be made to the nearest cent or one-hundredth of a share, with one-half cent and 0.005 of a share, respectively, being rounded upward. Notwithstanding any other
provision of this Section 10.3, the Company shall not be required to make any adjustment of the Conversion Price unless such adjustment would require an increase or decrease of at least 1% of such price. Any lesser adjustment shall be carried
forward and shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to an increase or decrease of at least 1% in such price. Any adjustments
under this Section 10.3 shall be made successively whenever an event requiring such an adjustment occurs. 
 (l) In the event that at
any time, as a result of an adjustment made pursuant to this Section 10.3, the Holder of any Securities thereafter surrendered for conversion shall become entitled to receive any shares of stock of the Company other than shares of Common Stock
into which the Securities originally were convertible, the Conversion Price of such other shares so receivable upon conversion of any such Security shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in subparagraphs (a) through (k) of this Section 10.3, and the provision of Sections 10.1, 10.2 and 10.4 through 10.9 with respect to the Common Stock shall apply on
like or similar terms to any such other shares and the determination of the Board of Directors as to any such adjustment shall be conclusive. 
 (m) No adjustment shall be made pursuant to this Section 10.3 (i) if the effect thereof would be to reduce the Conversion Price below the par value (if any) of the Common Stock or (ii) if the Holders of the Securities may
participate in the transaction that would otherwise give rise to an adjustment pursuant to this Section 10.3. 
  

 57 

 Section 10.4 Consolidation or Merger of the Company. 
 If any of the following events occurs, namely: 
 (1) any reclassification or change of the outstanding Common Stock (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); 
 (2) any merger, consolidation, statutory share exchange or combination of the Company with another
corporation as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock; or 
 (3) any sale or conveyance of the properties and assets of the Company as, or substantially as, an entirety to any other corporation as a
result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock; 
 the Company or the successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution
of such supplemental indenture, if such supplemental indenture is then required to so comply). The supplemental indenture shall provide that the Conversion Value and Daily Share Amount will be determined based upon the kind and amount of securities,
cash or other assets which a holder of a number of shares of Common Stock equal to the Conversion Rate would have received in any such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance
assuming such holder was not a constituent Person or an Affiliate of a constituent Person to such transaction. In the event holders of the Common Stock have the opportunity to elect the form of consideration to be received in any such transaction,
the Company will make adequate provision whereby the Holders of the Securities shall have a reasonable opportunity to determine the form of consideration, into which all of the Securities, treated as a single class, shall be convertible from and
after the effective date of such transaction (subject to the Company’s ability to settle the conversion obligation in cash). Any such determination shall be subject to any limitations to which all of the holders of the Common Stock are subject,
such as pro-rata reductions applicable to any portion of the consideration to be paid, and shall be conducted in such a manner as to be completed by the date which is the earliest of (a) the deadline for elections to be made by holders of the
Common Stock in connection with such transaction, and (b) two Trading Days prior to the anticipated effective date of such event. The Company shall provide notice of the opportunity to determine the form of such consideration, as well as notice
of the determination made by Holders of the Securities by issuing a press release and providing a copy of such notice to the Trustee. The Company will not become a party to any such transaction unless its terms are consistent with the foregoing.

 Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in
this Article X. If, in the case of any such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock or other securities and assets receivable thereupon by a holder of Common Stock
includes shares of stock or other securities and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such other corporation and shall contain such 
  

 58 

 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, including to the extent practicable the provisions providing for the repurchase rights set forth in Article III hereof. 
 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears
on the register of the Securities maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 
 The above provisions of this Section 10.4 shall similarly apply to successive reclassifications, mergers, consolidations, statutory share exchanges,
combinations, sales and conveyances. 
 If this Section 10.4 applies to any event or occurrence, Section 10.3 shall not apply.

 Section 10.5 Notice of Adjustment. 
 Whenever an adjustment in the Conversion Price with respect to the Securities is required: 
 (1) the Company shall forthwith place on file with the Trustee and any Conversion Agent for such securities a certificate of the Treasurer of the Company, stating the adjusted Conversion Price determined as provided herein and setting forth
in reasonable detail such facts as shall be necessary to show the reason for and the manner of computing such adjustment; and 
 (2) a notice stating that the Conversion Price has been adjusted and setting forth the adjusted Conversion Price shall forthwith be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the
Company, to each Holder in the manner provided in Section 11.2. Any notice so given shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. 
 Section 10.6 Notice in Certain Events. 
 In case: 
 (1) of a consolidation or merger to which the Company is a party and for which approval of any
stockholders of the Company is required, or of the sale or conveyance to another Person or entity or group of Persons or entities acting in concert as a partnership, limited partnership, syndicate or other group (within the meaning of
Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of all or substantially all of the property and assets of the Company; or 
 (2) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 
  

 59 

 (3) of any action triggering an adjustment of the Conversion Price referred to in clauses
(x) or (y) below; 
 then, in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent, and shall cause to be
given, to the Holders of the Securities in the manner provided in Section 11.2, at least 15 days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of any
distribution or grant of rights or warrants triggering an adjustment to the Conversion Price pursuant to this Article X, or, if a record is not to be taken, the date as of which the holders of record of Common Stock entitled to such distribution,
rights or warrants are to be determined, or (y) the date on which any reclassification, consolidation, merger, sale, conveyance, dissolution, liquidation or winding up triggering an adjustment to the Conversion Price pursuant to this Article X
is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, consolidation,
merger sale, conveyance, dissolution, liquidation or winding up. 
 Failure to give such notice or any defect therein shall not affect the
legality or validity of the proceedings described in clause (1), (2) or (3) of this Section 10.6. 
 Section
10.7 Company To Reserve Stock: Registration; Listing. 
 (a) The Company shall, in accordance with the laws of the State of
Delaware, at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued shares of Common Stock, for the purpose of effecting the conversion of the Securities, such number of its duly authorized shares of
Common Stock as shall from time to time be sufficient to effect the conversion of all Securities then Outstanding into such Common Stock at any time (assuming that, at the time of the computation of such number of shares or securities, all such
Securities would be held by a single Holder); provided, however, that nothing contained herein shall preclude the Company from satisfying its obligations in respect of the conversion of the Securities by delivery of purchased shares of
Common Stock which are then held in the treasury of the Company. The Company covenants that all shares of Common Stock which may be issued upon conversion of Securities will upon issue be fully paid and nonassessable and free from all liens and
charges and, except as provided in Section 10.8, taxes with respect to the issue thereof. 
 (b) If any shares of Common Stock which
would be issuable upon conversion of Securities hereunder require registration with or approval of any governmental authority before such shares or securities may be issued upon such conversion, the Company will in good faith and as expeditiously as
possible endeavor to cause such shares or securities to be duly registered or approved, as the case may be. The Company further covenants that so long as the Common Stock shall be listed on the New York Stock Exchange, the Company will, if permitted
by the rules of such exchange, list and keep listed all Common Stock issuable upon conversion of the Securities, and the Company will endeavor to list the shares of Common Stock required to be delivered upon conversion of the Securities prior to
such delivery upon any other national securities exchange upon which the outstanding Common Stock is listed at the time of such delivery. 
  

 60 

 Section 10.8 Taxes on Conversion. 
 The issue of stock certificates on conversion of Securities shall be made without charge to the converting Holder for any documentary, stamp or similar
issue or transfer taxes in respect of the issue thereof, and the Company shall pay any and all documentary, stamp or similar issue or transfer taxes that may be payable in respect of the issue or delivery of shares of Common Stock on conversion of
Securities pursuant hereto. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved in the issue or delivery of shares of Common Stock or the portion, if any, of the Securities which
are not so converted in a name other than that in which the Securities so converted were registered, and no such issue or delivery shall be made unless and until the Person requesting such issue has paid to the Company the amount of such tax or has
established to the satisfaction of the Company that such tax has been paid. 
 Section 10.9 Conversion After Record Date. 

Except as provided below, if any Securities are surrendered for conversion on any day other than an Interest Payment Date, the Holder of such
Securities shall not be entitled to receive any interest that has accrued on such Securities since the prior Interest Payment Date. By delivery to the Holder of the number of shares of Common Stock or other consideration issuable upon conversion in
accordance with this Article X, any accrued and unpaid interest on such Securities will be deemed to have been paid in full. 
 If any
Securities are surrendered for conversion subsequent to the Record Date preceding an Interest Payment Date but on or prior to such Interest Payment Date, the Holder of such Securities at the close of business on such Record Date shall receive the
interest payable on such Securities on such Interest Payment Date notwithstanding the conversion thereof. Securities surrendered for conversion during the period from the close of business on any Record Date preceding any Interest Payment Date to
the opening of business on such Interest Payment Date shall (except in the case of Securities which have been called for redemption on a Redemption Date within such period) be accompanied by payment by Holders, for the account of the Company, in New
York Clearing House funds or other funds of an amount equal to the interest payable on such Interest Payment Date on the Securities being surrendered for conversion. Except as provided in this Section 10.9, no adjustments in respect of payments
of interest on Securities surrendered for conversion or any dividends or distributions or interest on the Common Stock issued upon conversion shall be made upon the conversion of any Securities. 
 Section 10.10 Company Determination Final. 
 Any determination that the Company or the Board of Directors must make pursuant to this Article X shall be conclusive if made in good faith and in accordance with the provisions of this Article, absent manifest error,
and set forth in a Board Resolution. 
 Section 10.11 Responsibility of Trustee for Conversion Provisions. 
 The Trustee has no duty to determine when an adjustment under this Article X should be made, how it should be made or what it should be. The Trustee
makes no representation as to the validity or value of any securities or assets issued upon conversion of 
  

 61 

 Securities. The Trustee shall not be responsible for any failure of the Company to comply with this Article X. Each
Conversion Agent other than the Company shall have the same protection under this Section 10.11 as the Trustee. 
 The rights,
privileges, protections, immunities and benefits given to the Trustee under the Indenture including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and
each Paying Agent or Conversion Agent acting hereunder. 
 Section 10.12 Unconditional Right of Holders to Convert. 

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to convert
its Security in accordance with this Article X and to bring an action for the enforcement of any such right to convert, and such rights shall not be impaired or affected without the consent of such Holder. 
 ARTICLE XI 
 MISCELLANEOUS

 Section 11.1 Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or conflicts with another
provision which is required to be included in this Indenture by the TIA, the required provision shall control. 
 Section
11.2 Notices. Any request, demand, authorization, notice, waiver, consent or communication shall be in writing and delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or transmitted by facsimile
transmission (confirmed by guaranteed overnight courier) to the following facsimile numbers: 
 if to the Company: 
 The PMI Group, Inc. 
 3003 Oak Road

 Walnut Creek, CA 94597 
 Attn:
General Counsel and Secretary 
 Facsimile No. (925) 658-6175 
 if to the Trustee: 
 The Bank of New York
Trust Company, N.A. 
 700 South Flower Street, Suite 500 
 Los Angeles, California 90017 
 Facsimile No. (213) 630-6210 
 Attention: Corporate Trust Administration 
 The Company or the Trustee by notice given to the other in the manner provided above may designate additional or different addresses for subsequent notices or communications. 
  

 62 

 Any notice or communication given to a Securityholder shall be mailed to the Securityholder, by
first-class mail, postage prepaid, at the Securityholder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 
 Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders.
If a notice or communication is mailed in the manner provided above, it is duly given, whether or not received by the addressee. 
 If the
Company mails a notice or communication to the Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar. 
 Section 11.3 Communication 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, the Paying Agent, the Conversion Agent and anyone else shall have the protection of TIA Section 312(c). 
 Section 11.4 Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the
Trustee: 
 (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with; and 
 (2) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with. 
 Section 11.5 Statements Required in Certificate or Opinion.
Each Officers’ Certificate or Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
 (1) a statement that each person making such Officers’ Certificate or Opinion of Counsel 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 Officers’ Certificate or Opinion of Counsel are based; 
 (3) a statement that, in the opinion of each such person, he has made such examination or investigation as is necessary to enable such person to express
an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (4) a statement that, in the opinion of
such person, such covenant or condition has been complied with. 
  

 63 

 Section 11.6 Separability Clause. In case any provision 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 11.7 Rules by Trustee, Paying Agent, Conversion Agent and Registrar. The Trustee may make reasonable rules for action by or a meeting
of Securityholders. The Registrar, the Conversion Agent and the Paying Agent may make reasonable rules for their functions. 
 Section
11.8 Legal Holidays. A “Legal Holiday” is any day other than a Business Day. If any specified date (including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that
is not a Legal Holiday, and, if the action to be taken on such date is a payment in respect of the Securities, no interest, if any, shall accrue for the intervening period. 
 Section 11.9 GOVERNING LAW. THIS INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 Section 11.10 No Recourse Against Others. A director, officer, employee or stockholder, as such, of the Company shall not have
any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder shall waive and release
all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
 Section
11.11 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 11.12 Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to prove this Indenture. 
  

 64 

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

			
	THE PMI GROUP, INC.
		
	By:	 	 /s/ Donald P. Lofe, Jr.

	Name:	 	Donald P. Lofe, Jr.
	Title:	 	Executive Vice President and
		 	Chief Financial Officer
	
	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	                As Trustee
		
	By:	 	 /s/ Sandee’ Parks

	Name:	 	Sandee’ Parks
	Title:	 	Vice President

  

 65 

 EXHIBIT A 
 [FORM OF FACE OF GLOBAL SECURITY] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 PURSUANT
TO SECTION 4.7 OF THE INDENTURE, THE PMI GROUP, INC. AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR U.S. FEDERAL INCOME TAX PURPOSES, TO TREAT
THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO SECTION 1.1275-4 OF THE U.S. TREASURY REGULATIONS (THE “CONTINGENT PAYMENT DEBT REGULATIONS”). YOU MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY,
COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE SECURITY BY TELEPHONING THE PMI GROUP, INC. INVESTOR RELATIONS DEPARTMENT AT (925) 658-7878 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: THE PMI GROUP, INC., 3003 OAK ROAD,
WALNUT CREEK, CALIFORNIA 94597, ATTENTION: INVESTOR RELATIONS DEPARTMENT. 

 THE PMI GROUP, INC. 
 2.50% Senior Convertible Debentures due 2021 
  

			
	No.	 	CUSIP: 69344M AF 8
	Issue Date: August 22, 2006	 	Principal Amount: $

 THE PMI GROUP, INC., a Delaware corporation, promises to pay to Cede & Co. or registered
assigns, the principal amount of
                                        
         dollars ($            ) on July 15, 2021. 
 Interest Payment Dates: January 15 and July 15, commencing January 15, 2007. 
 Record Dates:
January 1 and July 1. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse side of this
Security, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  

 A – 2 

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

					
	Dated:                     , 2006	 	THE PMI GROUP, INC.
			
		 	By:	 	  

		 	Title:	 	  

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	THE BANK OF NEW YORK TRUST COMPANY, N.A.,
	 as Trustee, certifies that this is one
 of
the Securities referred to in the
 within-mentioned Indenture.

		
	By	 	  

		 	                             Authorized
Signatory
	
	Dated:                     , 2006

  

 A – 3 

 [FORM OF REVERSE OF GLOBAL SECURITY] 
 2.50% Senior Convertible Debentures due 2021 
 This Security is one of a duly
authorized issue of 2.50% Senior Convertible Debentures due 2021 (the “Securities”) of the PMI Group, Inc., a Delaware corporation (including any successor corporation under the Indenture hereinafter referred to, the “Company”),
issued under an Indenture, dated as of August 22, 2006 (the “Indenture”), between the Company and The Bank of New York Trust Company, N.A., as trustee (the “Trustee”). The terms of the Security include those stated in the
Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”), and those set forth in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture
and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture shall control. Capitalized
terms used but not defined herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
 1. Interest 
 General. The Company promises to pay Interest on the principal amount of the
Securities plus accrued and unpaid interest, if any, including contingent interest and additional interest, if any, at the interest rate specified herein (the “Interest Rate”) from the date of issuance until repayment in full at
July 15, 2021, redemption or purchase. The Company will pay Interest on this Security semi-annually in arrears on January 15 and July 15 of each year (each, an “interest payment date”), commencing January 15, 2007.

 (a) The Securities shall bear interest from July 15, 2006 until the principal amount thereof is paid or made available for payment,
or until such date on which the Securities are converted, redeemed or purchased as provided herein at a rate of 2.50% per annum. 
 (b)
Interest on the Securities shall be computed (i) for any full semi-annual period for which a particular Interest Rate is applicable, on the basis of a 360-day year of twelve 30-day months and (ii) for any period for which a particular
Interest Rate is applicable for less than a full semiannual period for which Interest is calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual number of days elapsed over a 30-day month. For purposes of
determining the Interest Rate, the Trustee may assume that the Trading Price Condition has not been satisfied and that Reset Rate is not in effect unless the Trustee has received an Officers’ Certificate stating that the Trading Price Condition
has been satisfied and specifying the Reset Rate then in effect. 
 (c) The Interest Rate on this Security will increase to the Reset Rate
for any semi-annual period commencing on July 15, 2008, July 15, 2011 or July 15, 2016, each of which shall be referred to as a “Reset Rate Determination Date”, if the Trading Price Condition for that semi-annual period
is satisfied. The “Trading Price Condition” shall be satisfied for any semi-annual period if the Sale Price of the Common Stock for any 20 out of the last 30 Trading Days ending 
  

 A – 4 

 five days prior to the first day of such semi- annual period is less than or equal to 60% of the Conversion Price of the
Security in effect for each of those 20 Trading Days. Such interest payable at the Reset Rate is sometimes referred to herein as “contingent interest.” 
 Following an increase to the Reset Rate, the Interest Rate on the Security will remain at the Reset Rate unless and until the first day of a subsequent semi-annual period for which the Trading Price Condition is not
satisfied, at which time the Interest Rate on the Security will revert to 2.50% per annum and will remain at such rate unless and until the Trading Price Condition is satisfied for a semi-annual period commencing on a subsequent Reset Rate
Determination Date. 
 If the Reset Rate is in effect for a particular semi-annual period, the Company will pay a portion of any increase
represented by the change to the Reset Rate as cash interest at an annualized rate of 0.35% per annum (0.175% per semi-annual period) and any remaining increase in interest will be added to the principal amount of the Security (but which will
not affect the Conversion Price or Conversion Rate of the Security) and will be accrued and payable at maturity and upon any purchase by the Company at the option of the Holder or upon any optional redemption by the Company. Interest, additional
interest and contingent interest will accrue on any such remaining increase in interest and will be payable at such times as interest, additional interest and contingent interest is otherwise payable. 
 The “Reset Rate” determined as of each Reset Rate Determination Date will be equal to 75% of the rate that would, in the sole judgment of the
Reset Rate Agent, result in a trading price of par of a hypothetical issue of senior, nonconvertible, noncontingent, fixed-rate debt securities of the Company with (i) a final maturity comparable to the Security; (ii) an aggregate
principal amount equal to the aggregate principal amount of all Securities then outstanding; and (iii) covenants and other provisions that are, insofar as would be practicable for an issue of senior, nonconvertible, non-contingent fixed-rate
debt security, substantially identical to those of this Security, but which are not subject to repurchase by the Company at the option of the Holder. In no case, however, will the Reset Rate ever be greater than 12% or less than 2.85%. Also, if the
Reset Rate Agent has not established the Reset Rate for the applicable semi-annual period, or if the Reset Rate Agent determines in its sole judgment that there is no suitable reference rate from which the Reset Rate may by determined, the Reset
Rate for that period will be the Reset Rate most recently determined (except if there is no Reset Rate most recently determined, in which case the Reset Rate shall be a rate mutually agreed upon by the Reset Rate Agent and the Company reflecting
current market conditions), and such Reset Rate shall remain in effect until the Reset Rate Agent shall determine a new Reset Rate. 
 The
Company will appoint a Reset Rate Agent. For the determination of the Reset Rate, the Reset Rate Agent will seek indicative reference rates from three nationally-recognized investment banks, and the Reset Rate shall be the average of such three
indicative reference rates, provided that if at least three such indicative reference rates cannot reasonably be obtained by the Reset Rate Agent, but two such indicative reference rates are obtained, then the average of the two indicative reference
rates shall be used, and if only one such indicative reference rate can reasonably be obtained by the Reset Rate Agent, this one indicative reference rate shall be used. The determination of any Reset Rate will be conclusive and binding upon the
Reset Rate Agent, the Company, the Trustee and the Holders of the Security, in the absence of manifest error. The Company may remove the Reset Rate Agent and appoint a successor Reset Rate Agent at any time. 
  

 A – 5 

 The “sale price” of the Common Stock on any date means the closing per share sale price (or if
no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported on the New York Stock Exchange or, if the Common Stock
is not listed on the New York Stock Exchange, on the principal other national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not listed on a national or regional securities exchange, then as
reported by the Nasdaq system. 
 In the event contingent interest is payable, the Company will disseminate a press release through Bloomberg
Business News or the Dow Jones News Service containing this information or publish the information on the Company’s Web site or through such other public medium as the Company may use at that time. 
 (d) If this Security is redeemed or the Holder elects to require the Company to purchase this Security pursuant to Section 6 of this Security, on a
date that is after the record date and prior to the corresponding interest payment date, interest, including contingent interest, if any, accrued and unpaid hereon to but not including the applicable Redemption Date, Purchase Date or Change of
Control Purchase Date as the case may be will be paid to the same Holder to whom the Company pays the principal of this Security. 
 Interest
on Securities converted after a record date but prior to the corresponding interest payment date will be paid to the Holder of the Securities on the record date but, upon conversion, the Holder must pay the Company the interest, including contingent
interest, which has accrued and will be paid on such interest payment date. No such payment need be made with respect to Securities which will be redeemed after a record date and prior to the corresponding interest payment date. 
 If the principal amount hereof or any portion of such principal amount or any interest, including contingent interest and additional interest, if any, on
any Security is not paid when due (whether upon acceleration pursuant to Section 6.2 of the Indenture, upon the date set for payment of the Redemption Price pursuant to Section 5 hereof or the Purchase Price or Change of Control Purchase
Price pursuant to Section 6 hereof or upon the Stated Maturity of this Security), then in each such case the overdue amount shall, to the extent permitted by law, bear interest at the applicable Interest Rate, compounded semi-annually, which
interest shall accrue from the date of such overdue amount was originally due to the date of payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. 
 2. Method of Payment. 
 Except as provided below, interest will be paid (i) on the Global Securities to DTC in immediately available funds, (ii) on any definitive Securities having an aggregate principal amount of $5,000,000 or less, by check mailed to
the Holders of such Securities; and 
  

 A – 6 

 (iii) on any definitive Securities having an aggregate principal amount of more than $5,000,000, by wire transfer in
immediately available funds at the election of the Holders of these Securities. 
 At Stated Maturity the Company will pay interest on
definitive Securities at the Company’s office or agency in New York City, which initially will be the Corporate Trust Office of the trustee in New York City. 
 Principal on definitive Securities will be payable, upon Stated Maturity or when due, at the office or agency of the Company in New York City, maintained for such purpose, initially the Corporate Trust Office of the
Trustee in New York City. 
 Subject to the terms and conditions of the Indenture, the Company will make payments in cash, shares of Common
Stock or a combination thereof, as the case may be, in respect of Redemption Prices, Purchase Prices, Change of Control Purchase Prices and at Stated Maturity to Holders who surrender Securities to a Paying Agent to collect such payments in respect
of the Securities. The Company will pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. However, the Company may make such cash payments by check payable in such money.

 3. Paying Agent, Conversion Agent and Registrar. 
 Initially, The Bank of New York Trust Company, N.A. (the “Trustee”) will act as Paying Agent, Conversion Agent and Registrar. The Company may
appoint and change any Paying Agent, Conversion Agent or Registrar without notice, other than notice to the Trustee; provided that the Company will maintain at least one Paying Agent in the State of New York, City of New York, Borough of Manhattan,
which shall initially be an office or agency of the Trustee or an affiliate of the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent or Registrar. 
 4. Indenture. 
 The
Securities are general unsecured obligations of the Company limited to $341,478,000 aggregate principal amount. The Indenture does not limit other indebtedness of the Company, secured or unsecured. 
 5. Redemption at the Option of the Company. 
 No sinking fund is provided for the Securities. The Securities are redeemable for cash at the option of the Company, in whole or in part, at any time or from time to time, upon not less than 30 nor more than 60
days’ notice by mail for a redemption price equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent interest and additional interest, if any, up to the Redemption Date (the “Redemption
Price”). 
 6. Purchase By the Company at the Option of the Holder. 
 Subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, all or any portion of
the Securities held by such Holder on July 15, 2008, July 15, 2011 and July 15, 2016 in integral multiples of $1,000 at 
  

 A – 7 

 a Purchase Price equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent
interest and additional interest, if any, of such Security on the Purchase Date. To exercise such right, a Holder shall deliver to the Company a Purchase Notice containing the information set forth in the Indenture, at any time from the opening of
business on the date that is 20 Business Days prior to such Purchase Date until the close of business on the third Business Day prior to such Purchase Date, and shall deliver the Securities to the Paying Agent as set forth in the Indenture. The
Purchase Price shall be paid in cash. 
 At the option of the Holder and subject to the terms and conditions of the Indenture, the Company
shall become obligated to offer to purchase the Securities held by such Holder within 30 days (which purchase shall occur 30 days after the date of such offer) after the occurrence of a Change of Control of the Company for a Change of Control
Purchase Price equal to the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, of such Security on the Change of Control Purchase Date. The Change of Control Purchase Price shall be paid
in cash. 
 Holders have the right to withdraw any Purchase Notice or Change of Control Purchase Notice, as the case may be, by delivering to
the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture. 
 If cash sufficient to pay the Purchase
Price or Change of Control Purchase Price, as the case may be, of all Securities or portions thereof to be purchased as of the Purchase Date or the Change of Control Purchase Date, as the case may be, is deposited with the Paying Agent on the
Business Day following the Purchase Date or the Change of Control Purchase Date, interest will cease to accrue on such Securities (or portions thereof) immediately after such Purchase Date or Change of Control Purchase Date, and the Holder thereof
shall have no other rights as such other than the right to receive the Purchase Price or Change of Control Purchase Price upon surrender of such Security. 
 7. Notice of Redemption. 
 Notice of redemption pursuant to Section 5 of this Security will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at the Holder’s registered address. If
money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent prior to or on the Redemption Date, immediately after such Redemption Date interest ceases
to accrue on such Securities or portions thereof. Securities in denominations larger than $1,000 of principal amount may be redeemed in part but only in integral multiples of $1,000 of principal amount. 
 8. Conversion. 
 Subject to and in compliance with the provisions of the Indenture (including, without limitation, the conditions to conversion of this Security set forth in Section 10.1 thereof), a Holder is entitled, at such Holder’s option, to
convert the Holder’s Security (or any portion of the principal amount thereof that is $1,000 or an integral multiple $1,000), cash and, if applicable, fully paid and nonassessable shares of Common Stock at the Conversion Price in 
  

 A – 8 

 effect on the Conversion Date. The Security will be converted into (i) cash in an amount (the “Cash
Amount”) equal to the lesser of (w) the principal amount of the Security and (x) the Conversion Value of the Security and (ii) if the Conversion Value of the Security is greater than the Cash Amount, then a number of shares of
Common Stock (the “Net Shares”, and together with the Cash Amount, the “Settlement Amount”) equal to the greater of (x) zero and (y) the sum of the Daily Share Amounts for each of the ten consecutive Trading Days in the
Cash Settlement Period. The “Daily Share Amount” for each day in the Cash Settlement Period is equal to the quotient of (A) .10 multiplied by the difference between (I) the product of the then-current Conversion Rate multiplied
by the Sale Price of the Common Stock on such Trading Day and (II) $1,000 divided by (B) the Sale Price of the Common Stock on such Trading Day. 
 “Conversion Value”, on any day, means the product of (x) the average of the Sale Prices of the Common Stock for the Trading Days during the Cash Settlement Period multiplied by (y) the then-current
Conversion Rate. 
 “Cash Settlement Period” means, with respect to any Securities, the ten consecutive Trading Days beginning on
the second Trading Day after the Conversion Date. 
 The “Conversion Rate”, at any time, shall equal (A) $1,000 divided by
(B) the Conversion Price at such time, rounded to three decimal places (rounded up if the fourth decimal place thereof is 5 or more and otherwise rounded down). 
 The Company will notify Holders of any event triggering the right to convert the Securities as specified above in accordance with the Indenture. 
 A Security in respect of which a Holder has delivered a Purchase Notice or Change of Control Purchase Notice, as the case may be, exercising the option
of such Holder to require the Company to purchase such Security may be converted only if such Purchase Notice or Change of Control Purchase Notice, as the case may be, is withdrawn in accordance with the terms of the Indenture. 
 The initial Conversion Price is $44.155, subject to adjustment in certain events described in the Indenture. 
 To surrender a Security for conversion, a Holder must (1) complete and manually sign the conversion notice below (or complete and manually sign a
facsimile of such notice) and deliver such notice to the Conversion Agent, (2) surrender the Security to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents and (4) pay any transfer or similar tax, if
required. 
 No fractional shares of Common Stock shall be issued upon conversion of any Security. Instead of any fractional share of Common
Stock that would otherwise be issued upon conversion of such Security, the Company shall pay a cash adjustment as provided in the Indenture. 
 No payment or adjustment will be made for dividends on the shares of Common Stock, except as provided in the Indenture. 
  

 A – 9 

 If the Company (i) is a party to a consolidation, merger or binding share exchange
(ii) reclassifies the Common Stock or (iii) conveys, transfers or leases its properties and assets substantially as an entirety to any Person, the right to convert a Security into shares of Common Stock may be changed into a right to
convert it into securities, cash or other assets of the Company or such other Person, in each case in accordance with the Indenture. 
 9. Conversion Arrangement on Call for Redemption. 
 Any Securities called for redemption, unless
surrendered for conversion before the close of business on the day that is two Business Days prior to the Redemption Date, may be deemed to be purchased from the Holders of such Securities at an amount not less than the Redemption Price, by one or
more investment bankers or other purchasers who may agree with the Company to purchase such Securities from the Holders, to convert them into shares of Common Stock and to make payment for such Securities to the Trustee in trust for such Holders.

 10. Denominations; Transfer; Exchange. 
 The Securities are in fully registered form, without coupons, in denominations of $1,000 of principal amount and integral multiples of $1,000. A Holder
may transfer or exchange 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 and fees required by law or permitted by
the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities in respect of which a
Purchase Notice or Change of Control Purchase Notice has been given and not withdrawn (except, in the case of a Security to be purchased in part, the portion of the Security not to be purchased) or any Securities for a period of 15 days before the
mailing of a notice of redemption of Securities to be redeemed. 
 11. Persons Deemed Owners. 
 The registered Holder of this Security may be treated as the owner of this Security for all purposes. 
 12. Unclaimed Money or Securities. 
 The Trustee and the Paying Agent shall return to the Company upon written request any money or securities held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years,
subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

 13. Amendment; Waiver. 
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders of at least a majority in aggregate principal amount of the
outstanding Securities and (ii) certain Defaults may be waived 
  

 A – 10 

 with the written consent of the Holders of a majority in aggregate principal amount of the outstanding Securities.
Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee may amend the Indenture or the Securities (i) to add to the covenants of the Company for the benefit of the Holders
of Securities, (ii) to surrender any right or power conferred upon the Company in the Indenture, (iii) to provide for conversion rights of Holders of Securities if any reclassification or change of the Company’s Common Stock or any
consolidation, merger or sale of all or substantially all of the Company’s assets occurs, (iv) to provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation, conveyance,
transfer or lease pursuant to Article V of the Indenture, (v) to reduce the Conversion Price; provided, however, that such reduction in the Conversion Price shall not adversely affect the interests of the Holders of Securities (after
taking into account tax and other consequences of such reduction), (vi) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, (vii) to cure any ambiguity, to correct or
supplement any provision in the Indenture which may be inconsistent with any other provision therein or which is otherwise defective, or to make any other provisions with respect to matters or questions arising under the Indenture which the Company
may deem necessary or desirable and which shall not be inconsistent with the provisions of the Indenture; provided, however, that such action pursuant to this clause does not, in the good faith opinion of the Board of Directors of the Company
(as evidenced by a Board Resolution) and the Trustee, adversely affect the interests of the Holders of Securities in any material respect, and (viii) to add or modify any other provisions in the Indenture with respect to matters or questions
arising hereunder which the Company and the Trustee may deem necessary or desirable and which will not adversely affect the interests of the Holders of Securities. 
 14. Defaults and Remedies. 
 If any Event of Default with respect to Securities shall occur and be continuing, the principal of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
 15. Trustee Dealings with the Company. 
 Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
 16. Calculations in Respect of Securities. 
 The Company or its agents will be responsible for making all calculations called for under the Securities including, but not limited to, determination of the market prices for the Securities and of the Common Stock
and the amounts of interest and contingent payments, if any, on the Securities. Any calculations made in good faith and without manifest error will be final and binding on Holders of the Securities. The Company or its agents will be required to
deliver to the Trustee a schedule of its calculations and the Trustee will be entitled to conclusively rely upon the accuracy of such calculations without independent verification. 
  

 A – 11 

 17. 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 or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration
for the issue of the Securities. 
 18. Authentication. 
 This Security shall not be valid until an authorized signatory of the Trustee manually signs the Trustee’s Certificate of Authentication on the other
side of this Security. 
 19. Abbreviations. 
 Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by
the entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act). 
 20. GOVERNING LAW. 
 THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS SECURITY. 
 The Company will furnish to any Securityholder
upon written request and without charge a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
 THE PMI GROUP, INC. 
 3003 Oak Road 
 Walnut Creek, California 94597 
 Attn: General Counsel and Secretary 
 Facsimile No. (925) 658-6175 
  

 A – 12 

					
	 ASSIGNMENT FORM
	 	 	 	 CONVERSION NOTICE

	To assign this Security, fill in the form below:	 		 	To convert this Security into Common Stock of the Company, check the box   ̈
	 I or we assign and transfer this Security to
 __________________________________
__________________________________

 (Insert assignee’s soc. sec. or tax ID no.)
	 		 	To convert only part of this Security, state the principal amount to be converted (which must be $1,000 or an integral multiple of $1,000):
	__________________________________
__________________________________
	 		 	If you want the stock certificate made out in another person’s name fill in the form below:
	(Print or type other person’s name, address and zip code)	 		 	__________________________________
__________________________________

	and irrevocably appoint	 		 	(Insert the other person’s soc. sec. tax ID no.)
	                     agent to transfer this Security on the books of the Company. The
agent may substitute another to act for him	 		 	 __________________________________
__________________________________
__________________________________
__________________________________
__________________________________

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

					
	Date:                	 	Your Signature:	 	  

	
	  

	(Sign exactly as your name appears on the other side of this Security)
	
	 Signature Guaranteed

	
	  

	Participant in a Recognized Signature Guarantee Medallion Program
		
	By:	 	  

	                                        
 Authorized Signatory

  

 A – 13 

 SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY 
 Initial Principal Amount of Global Security:
                                        
                                        
        ($                               
 ). 
  

									
	 Date
	  	Amount of
Increase in
Principal
Amount of
Global
Security	  	Amount of
Decrease in
Principal
Amount of
Global Security	  	Principal
Amount of
Global Security
After Increase or
Decrease	  	Notation by
Registrar or
Security
Custodian
		  		  		  		  	

  

 A – 14 

 EXHIBIT B 
 [FORM OF FACE OF CERTIFICATED SECURITY] 
 PURSUANT TO SECTION 4.7 OF THE INDENTURE, THE PMI GROUP, INC.
AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR U.S. FEDERAL INCOME TAX PURPOSES, TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO
SECTION 1.1275-4 OF THE U.S. TREASURY REGULATIONS (THE “CONTINGENT PAYMENT DEBT REGULATIONS”). YOU MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE
SECURITY BY TELEPHONING THE PMI GROUP, INC. INVESTOR RELATIONS DEPARTMENT AT (925) 658-7878 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: THE PMI GROUP, INC., 3003 OAK ROAD, WALNUT CREEK, CALIFORNIA 94597, ATTENTION: INVESTOR
RELATIONS DEPARTMENT. 

 THE PMI GROUP, INC. 
 2.50% Senior Convertible Debentures due 2021 
  

			
	 No.
	  	 CUSIP:

	 Issue Date:                     , 2006
	  	
	 Issue Price: $1,000
	  	

 THE PMI GROUP, INC., a Delaware corporation, promises to pay to
                                        
    . or registered assigns, the principal amount of [ ($ )] on July 15, 2021. 
 Interest Payment Dates:
January 15 and July 15, commencing January 15, 2007. 
 Record Dates: January 1 and July 1. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse side of this Security, which further provisions shall for
all purposes have the same effect as if set forth at this place. 
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed. 
  

					
	Dated:	 	THE PMI GROUP, INC.
			
		 	By:	  	  

		 	Title:	  	

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	THE BANK OF NEW YORK TRUST COMPANY, N.A.,
	 as Trustee, certifies that this
 is one of the Securities referred
 to in the within-mentioned Indenture.

		
	 By
	 	  

		 	Authorized Signatory
	 Dated:
	 	

  

 B-2 

 [FORM OF REVERSE OF CERTIFICATED SECURITY IS IDENTICAL TO EXHIBIT A]License Agreement between Tower Top Investments, Inc.

 Exhibit 10.23 
 LEASE 
 This Lease Agreement is made and entered into as of this 30th day of January, 2004, by and between
Southern Centers Associates I L.P., a Delaware limited partnership (“LANDLORD”) with an address of 1500 Cordova Road, Suite 310, Fort Lauderdale, FL 33316 and Elandia Solutions, LLC. (“TENANT”) with an address of 1500 Cordova
Road, Suite 300, Fort Lauderdale, Florida 33316 for Premises known as and located at 1500 Cordova Road, Suite 300, Fort Lauderdale, Florida 33316 comprising 2,302 +/- rentable square feet of office space (“PREMISES”). 
 1. DEMISE Landlord, for and in consideration of the rents hereinafter reserved, and the terms, conditions, covenants and provisions contained in this Lease,
hereby leases to Tenant, and the Tenant hereby takes and hires from the Landlord, subject to the terms and conditions contained in this Lease, the Premises, together with any and all rights, privileges, and easements benefiting, belonging or
pertaining thereto. The other areas and suites of the building and the surrounding land which contains the “Premises”, but which is not a part thereof, shall be defined as the “Property”. Note: The rentable square feet of the
Premises includes proportionate common area square footage; i.e. lobbies, corridors, bathrooms, etc. 
 2. TERM The Term of this Lease shall be three
(3) years commencing (the “Commencement Date”) and ending, unless sooner terminated or extended as provided in this Lease. 
 3. RENT
During the Lease Term, Tenant agrees to pay to Landlord the Gross Rent plus increases and applicable sales tax, all as set forth on the Gross Rent Schedule attached hereto as Exhibit “A” for the said Premises, without offset or deductions,
and without previous demand therefore, said rent payable monthly on the first day of each and every month. The gross monthly rent in the first year of the lease shall be $25 per sq.ft. times 2,302 sq.ft. plus sales tax. That amount is broken down as
follows: Gross Rent $4,795.83 plus sales tax $287.75 for a total of $5,083.58 per month until the first anniversary of the Lease (for details see Exhibit “A”). Rent payments will commence on the first of the month (March, 2004) of the
Term. A partial month rent payment is due in advance of occupying the space. 
 All Rent (defined as Base Rent as set forth above plus Common
Expenses as defined below) required under this Lease shall be payable to the Landlord at the address set forth herein. If any payment of Rent is not received by the Landlord within five (5) days of its due date, Tenant shall pay to Landlord a
late fee equal to five (5%) Percent of the outstanding balance due Landlord. 
 In the event any check is returned because of
insufficient funds or otherwise that have been submitted to Landlord for the payment of Rent or other payments due under this Lease, then the check(s) shall be immediately replaced by Tenant with a cashier’s check from a bank in Broward County,
Florida, and in addition to any late payment penalty provided above, there shall be an additional charge of $200.00 for inconvenience caused to Landlord for handling the returned check 
 4. RULES AND REGULATIONS Tenant, at its own cost and expense, shall properly observe and comply with all present and future laws, ordinances, codes, requirements, orders, directives, rules and regulations of
all governmental authorities affecting the Tenant’s use of the Premises, including but not limited to making non-structural modifications to the Premises to comply with any state or 
  

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federal laws or regulations affecting the accessibility of the Premises for disabled persons. Tenant shall also comply with Landlord’s reasonable rules
and regulations attached hereto as Exhibit “C” and which rules and regulations may be reasonably amended by Landlord. 
 5. RISK OF LOSS All
personal property placed or moved in the Premises shall be at the risk of Tenant or of the owner of such property, and Landlord shall not be liable for any damage to said personal property, or to Tenant, arising from the bursting or leaking of water
pipes, or from any act of negligence of any co-tenant or occupants of the building, or of any other person whomsoever. It is further agreed that Landlord shall not be liable for any damage or injury by water which may be sustained by Tenant or other
person, or for any other damage or injury resulting from the carelessness, negligence or improper conduct on the part of any person whomsoever, or by reason of the breakage, leakage or obstruction of the water, sewer or soil pipes, or other leakage
in or about said building. 
 6. SECURITY As illustrated on Exhibit “A”, Tenant has deposited with Landlord ($8,792.36) representing a
Deposit that Landlord is to retain as security for the faithful performance of all the terms and conditions of this Lease. Landlord shall not be obligated to apply the security deposit on Rents or other charges in arrears, or in damages for failure
to perform the terms and conditions of this Lease. Application of the security deposit to the arrears of Rent payments or damages shall be at the sole option of the Landlord, and the right to possession of the Premises by the Landlord for
non-payment of Rent or for any other reason shall not in any event be affected by the security deposit. The security deposit is to be returned to Tenant when this Lease is terminated, according to the terms of this Lease, if not otherwise applied by
reason of any breach of the terms and conditions of this Lease by Tenant. Tenant expressly acknowledges that Tenant shall not have the right to apply the security deposit to Rent. In no event is the security deposit to be returned until Tenant has
vacated the Premises and delivered possession to the Landlord. In the event the Landlord repossesses the Premises because of the default of the Tenant or because of the failure by the Tenant to carry out the terms and conditions of this Lease,
Landlord may apply the security deposit on all damages suffered to the day of repossession and may retain the balance of the security deposit to apply on damages that may accrue or be suffered thereafter by reason of a default or breach of the
Tenant. Landlord shall not be obligated to hold the security deposit in a separate fund, but may mix the security deposit with other funds of Landlord, and Landlord shall not be obligated to pay interest to Tenant on the security deposit.

 As further security for the faithful performance of the terms and conditions of this Lease, Tenant hereby pledges and assigns to Landlord
all of the furniture, fixtures, goods and chattels of Tenant, which shall or may be brought or put on said Premises, and the Tenant agrees that said lien may be enforced by distress, foreclosure or other process of law at the election of Landlord,
and Tenant agrees to pay reasonable attorneys’ fees, together with all costs and charges incurred or paid by the Landlord by reason of Tenant’s failure to perform any of the terms and conditions of this Lease, which sums shall bear
interest at the highest rate permitted by law. 
 7. TENANT’S TAXES AND EXPENSES During the Term of this Lease, Tenant shall pay, before the same
shall become delinquent, all personal property taxes, sales taxes, and such other taxes as may be payable by reason of operation of Tenant’s business. 
 During the Term of this Lease, Tenant shall pay, before the same shall become delinquent, all 

  

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charges for similar services furnished to the Premises for the occupants thereof. 
 8. COMMON EXPENSES Common Expenses, Operating Expenses and Common Area Maintenance or “CAM” are interchangeable words and are defined as every expense incurred by Landlord in the operation of the
Property and Tenant’s Premises. Tenant shall pay, as additional Rent and with the monthly Base Rent payments, Tenant’s Pro Rata Share of Common Expenses over and above the 2003 actual Operating Expenses and example of the 2002 Operating
Expenses are set forth on Exhibit “B” attached hereto. 
 Common Expenses, except Capital Improvements, include, but are not
limited to: Real Estate Taxes (regular and special) assessed against the Property; the cost of all types of insurance carried by the Landlord with respect to the Property; Landlord’s cost of operating the Property (and Tenant’s Premises
where Landlord is responsible for same), including but not limited to, operating, managing, equipping, policing, protecting, lighting, trash removal, landscaping, all utilities for Common Areas (and Tenant’s Premises where Landlord is
responsible for same) and all taxes, licenses, insurance, fees and permits, repairs, and replacements necessary to maintain the Property and Common Areas (and Tenant’s Premises when applicable) in the same condition as when originally
constructed, together with a reasonable management fee. 
 The “Common Areas” are defined as including but not limited to, the
hallways, sidewalks, malls, curbs, parking area, landscaped areas, streets, enclosed common passageways, elevators, stairways, roof, driveways, loading platforms, canopies, washrooms, lounges, shelters and other areas available for the joint use of
all tenants and to their employees, agents, customers, licensees and invitees. It is the intention of the foregoing definition that the Common Areas shall include all areas which are not specifically demised to any one tenant. 
 9. USE OF PREMISES The Premises shall be used by Tenant for general office use only and for no other purposes whatsoever. Tenant’s use shall not be such that
more than a “normal” amount of parking spaces are utilized by Tenant. The Premises shall be at all times properly licensed and operated as set forth above. Tenant recognizes that is it important to Landlord to keep the use of the subject
Premises as set forth herein; accordingly, any change or termination of the use of the Premises shall be considered a default under the Lease and Landlord shall be entitled to all remedies as provided for herein. Tenant acknowledges that Landlord
has made no representation to Tenant as to Tenant’s use of the Premises and Tenant confirms and acknowledges that Tenant has made its own investigation concerning Tenant’s use of the Premises and Tenant is satisfied with same and accepts
the Premises for Tenant’s use AS IS. 
 Tenant shall not use or occupy, nor permit or suffer the Premises, the Property, or any part
thereof to be used or occupied for any unlawful or illegal business, use or purpose, nor in any way in violation of any present or future governmental laws, ordinances, requirements, orders, directives, rules or regulations. In addition, in no event
shall Tenant use the Premises for any nude entertainment of any kind, be it live, videotape or otherwise. 
 10. ACCESS TO THE PREMISES During all
reasonable hours, Landlord or Landlord’s agents shall have the right, but not the obligation, to enter upon the Premises to examine same, to exhibit the Premises to prospective purchasers and during the last 180 days of the term of this Lease
or any 

  

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renewal thereof, to exhibit the Premises to prospective tenants, and to make such repairs as may be required of the Landlord under the terms of this Lease.
Landlord agrees not to unreasonably interfere with the operation of Tenant’s business. 
 11. REPAIRS Landlord’s sole responsibility for
repair work is to keep the roof and exterior walls of the building leak free and to make all structural repairs necessary to the roof or exterior walls of the building where the need for such structural repairs is not caused by any act or omission
of the Tenant or the Tenant’s agents, employees or invitees. “Structural repairs” means repairs necessary to keep the building from collapsing or sagging, or to prevent the Premises from being condemned because of structural
insufficiency. The Landlord shall have no liability for failure to perform this obligation to repair unless the Tenant shall have first given the Landlord written notice of the need for such repairs. 
 Upon Tenant taking possession, Tenant acknowledges that the premises are in good condition and that all fixtures, equipment and appurtenances are in good
working order, and agrees to maintain the Premises in the same condition, order and repair as they are at the commencement of this Lease, and agrees to make all repairs and replacements in and about the Premises necessary to preserve them in good
order and condition, which repairs and replacements made by Tenant shall be in equal quality and class to the original work. Tenant shall promptly pay the expense of any such repairs. 
 12. ALTERATIONS BY TENANT Tenant may make normal, routine alterations, which consist of interior painting, normal maintenance, wall and window treatments, interior lighting fixtures, interior signs, floor
treatments and similar minor changes, without the written consent of Landlord. Tenant may make other improvements to the Premises with the prior written consent of Landlord, which consent Landlord shall not unreasonably withhold. Any and all
improvements by Tenant, if first approved by Landlord in writing, shall be done in compliance with the terms and conditions of this Lease and all applicable governmental laws, codes, ordinances, requirements, directives, rules and regulations.

 Any and all additions, fixtures or improvements which may be made or installed by Tenant, except movable furniture, shall become the
property of the Landlord and remain upon the Premises as a part thereof, and be surrendered with the Premises at the termination of this Lease, at the option of the Landlord. If Landlord elects to allow Tenant to remove such fixtures or additions,
Tenant shall repair any damage caused by such removal. Tenant shall not materially alter the Premises or the building containing the demised Premises, or any part thereof, whether voluntary or in connection with any repair or restoration required by
this Lease. 
 13. INSURANCE During the term of this Lease, the Tenant shall carry and pay for liability insurance issued or endorsed to insure the
Landlord and any mortgagees from and against any and all claims, suits, actions, damages and/or causes of action arising during the term of this Lease for any personal injury, loss of life and/or damage to property sustained in and about the
Premises, by reason of or as a result of Tenant’s occupancy of, and from and against any order, judgments and/or decrees which may be entered thereon, and from and against all costs, attorneys’ fees, expenses and liabilities incurred in
and about the defense of any such claim and the investigation thereof, for an amount not less than One Million Dollars ($1,000,000.00) combined limit. Tenant shall also carry and pay for Plate Glass Insurance and Business Interruption Insurance in
amounts satisfactory to Landlord. 
  

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 In addition, Tenant shall carry and pay for replacement cost fire, extended coverage, and flood
insurance, to cover the cost of repair or replacement of Tenant’s leasehold improvements. 
 Such insurance shall name the Landlord and
any mortgagees as additional insured as the Landlord’s and any mortgagee’s interests may appear. The insurance policy shall be issued by an insurance company satisfactory to the Landlord. 
 The Tenant shall deliver to the Landlord these insurance policies or copies or certificates thereof immediately upon commencement of the Lease and
thereafter from time to time as required to assure the Landlord and any mortgagees that the coverage afforded by the policies is being maintained continuously by the Tenant and that the premiums therefore had been paid by the Tenant. 
 Notwithstanding anything herein to the contrary the minimal amount of liability insurance can be adjusted by Landlord every other year during the Lease
Term and Renewal Term, if any, to increase the liability amount if necessary to compensate for inflation or good sound business practices. In the event Tenant feels the new amount of liability insurance is unreasonable then each party shall select a
reputable, licensed insurance agent located in the state of Florida, employed by an office of at least 15 people who will in turn select a 3rd agent so employed and they will each make a recommendation as to the new liability amount and the average of the three shall then be used but in no event shall the new amount be less than the preceding amount. 

14. SUBORDINATION This Lease shall be subject and subordinate to any mortgage that now encumbers or affects the Property or that the Landlord or any subsequent
owners of the Property, may hereafter at any time elect to place on the Premises, including but not limited to a purchase money mortgage which may be held by Landlord as a seller, and to all advances, extensions, or modifications already made or
that may be hereafter made on account of any such mortgage, to the full extent of the principal sum secured thereby and issued thereon. Furthermore, Tenant shall, upon request, execute any paper or papers that Landlord’s counsel may deem
necessary to accomplish such subordination of Tenant’s interest in this Lease, in default of which Landlord is hereby appointed as Tenant’s attorney-in-fact to execute such paper or papers in the name of Tenant and as the act and deed of
Tenant, and this authority is hereby declared to be coupled with an interest and irrevocable. 
 15. ASSIGNMENT AND SUBLEASING Tenant shall not assign
this Lease, or otherwise transfer any interest in this Lease, without the prior written consent of the Landlord, which consent may be withheld by Landlord in Landlord’s sole and absolute discretion, such consent shall not be unreasonably
withheld. No consent to an assignment or sublease shall release Tenant or any Guarantor from any obligations under this Lease. If Tenant is a corporation, a transfer of more than 25% of the stock of said Tenant corporation shall be deemed an
assignment for purposes of this Lease, unless the stock is traded publicly. 
 Tenant shall not sublet portions of the Premises without
Landlord’s prior written consent, which shall be in Landlord’s sole and absolute discretion. It is the intention of the Landlord to prohibit Tenant from competing with Landlord in the renting of space in the Property; therefore in the
event of any sublease hereunder, Landlord shall be entitled to receive, in addition to any and all rent otherwise required under this Lease, one hundred (100%) percent of any amount paid to Tenant, by a sub-tenant, 

  

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above the Rent payable by Tenant to Landlord pursuant to this Lease. If a sublease is permitted by Landlord, Tenant agrees to furnish Landlord with a
photostatic copy of each sublease made for space in the Premises. 
 Tenant shall not hypothecate, transfer, pledge or otherwise encumber
this Lease or Tenant’s right hereunder nor shall Tenant permit any such encumbrance. Any attempt at assignment, sublease, pledge, transfer or encumbrance of this Lease without the prior written consent of Landlord shall be null and void, and a
default under this Lease. 
 Tenant shall and does hereby indemnify and agree to hold Landlord harmless from any and all liabilities, claims,
and causes of action arising under any terms and conditions of every sublease, license or concession agreement, unless such liabilities, claims and causes of action arise by reason of a default or breach by Landlord, or the negligent conduct or
activity of Landlord, its agents or employees, under this Lease. 
 If all or any part of the Premises shall be sublet or occupied by anyone
other than Tenant, Landlord may, after default by Tenant, collect subrent from any and all subtenants or occupants, and apply the net amount collected to the net annual rent reserved herein, but no such collection shall be, or be deemed to be, a
waiver of any agreement, term, covenant or condition of this Lease or the acceptance by Landlord of any subtenant or occupant as Tenant, or a release of Tenant from performance by Tenant of its obligations under this Lease. 
 To secure the prompt and full payment by Tenant of All Rent in this Lease reserved and the faithful performance by Tenant of all the other terms and
conditions herein contained on its part to be kept and performed, Tenant hereby assigns, transfers and sets over unto Landlord, subject to the conditions hereinafter set forth, all of Tenant’s right, title and interest in and to all subleases
that may hereafter be made and in and to all concession agreements hereafter made affecting any part of the Premises. 
 16. INDEMNIFICATION OF
LANDLORD. In addition to any other indemnities to Landlord specifically provided in this Lease, Tenant shall indemnify and save harmless Landlord against and from all liabilities, liens, suits, obligations, fines, damages, penalties,
claims, costs, charges and expenses, including reasonable architects’ and attorneys’ fees by or on behalf of any person which may be imposed upon or incurred by or asserted against Landlord by reason of the use and/or occupancy of the
Premises or any part thereof, or any surrounding areas, by Tenant or Tenant’s agents, contractors, servants, employees, licensees or invitees during the term of this Lease. This indemnification shall specifically extend to but shall not be
limited to loss or damage arising out of environmental hazards or contamination. 
 The provisions of this Article and the provisions of all
other indemnity provisions elsewhere contained in this Lease shall survive the expiration or earlier termination of this Lease for events occurring prior to such expiration or termination. 
 Landlord shall not in any event whatsoever be liable for any injury or damage to any personal property or to any person happening on, in or about the
building being leased, whether belonging to Tenant or any other person, caused by any fire, breakage, leakage, defect or bad condition in any part 

  

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or portion of the Premises, howsoever caused unless such injury or damage is caused by the active negligence of the Landlord, its agents or employees, or a
breach or default by Landlord of its obligations under this Lease. 
 Tenant shall, at its own cost and expense, if requested by Landlord,
defend any and all suits or actions (just or unjust) which may be brought against Landlord or in which Landlord may be impleaded with others upon any such above-mentioned matters, claim or claims. In such event, Landlord agrees to cooperate and
assist Tenant and Tenant’s counsel in providing documentation, plans, specifications and any other agreements or documents which may be reasonably required by Tenant and/or Tenant’s agent in order to defend such suit or actions. In
addition to the foregoing, Tenant shall pay to the Landlord all costs and expenses, including reasonable attorneys’ fees (including costs, expenses and attorneys’ fees in any appellate proceedings), incurred by Landlord in any action or
proceeding to which Landlord may be made a party by reason of any act or omission of the Tenant. 
 17. RESTRICTION AGAINST CONSTRUCTION LIEN Neither
Tenant nor anyone claiming by, through or under Tenant, shall have any right to file or place any lien of any kind or character whatsoever on the property and notice is hereby given that no contractor, subcontractor, or anyone else that may furnish
any material, service or labor to the property at any time shall be or become entitled to any lien thereon whatsoever. For the further security of Landlord, Tenant shall give actual notice of this restriction in advance to any and all contractors,
subcontractors, or other persons, firms, or corporations that may furnish any such material, service, or labor. 
 Landlord shall have the
right to record a notice of this provision in the Public Records of the County in which Premises is located. If such lien is filed against Landlord’s interest on the Property, Tenant shall cause such lien to be released of record or bonded
within fifteen (15) days of Tenant’s knowledge of such lien. 
 Initial improvements; see Landlord’s Work Letter- Exhibit
“D-3”, will be performed by the Landlord at the Tenant’s request. The Landlord is responsible for paying the Contractors for items 1 thru 6. The Tenant will reimburse the Landlord for item 6 as per the schedule on Exhibit
“A”. 
 18. CONDEMNATION 
 a.
If at any time during the term of this Lease, the whole or materially all of the Premises shall be taken for any public or quasi-public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain or by
agreement between Landlord, Tenant and those authorized to exercise such right, this Lease, the term hereby granted, any rights of renewal hereof and any renewal terms hereof, shall terminate and expire on the date of such taking and the rent and
other sum or sums of money and other charges herein reserved and provided to be paid by the tenant shall be apportioned and paid to the date of such taking. 
 b. The term “materially all of the Premises” shall be deemed to mean such portion of the Premises, as when so taken, would leave remaining a balance of the Premises which, due either to the area so taken or
the location of the part so taken in relation to the part not so taken, would not allow the Tenant to continue its business operations, or would not under economic conditions, zoning laws 

  

 7 

 
or building regulations then existing or prevailing, readily accommodate a new building or buildings of a nature similar to the building or buildings
existing upon the Land at the date of such taking and of floor area sufficient, together with buildings not taken in the condemnation, to operate Tenant’s business, taking into account all reasonable parking requirements. 
 c. For the purpose of this Article, the Premises or part thereof, as the case may be, shall be deemed to have been taken or condemned on the date on
which actual possession of the Premises or a part thereof, as the case may be, is acquired by any lawful power or authority or the date on which title vests therein, whichever is earlier. 
 d. It is further understood and agreed that if at any time during the Term of this Lease the Premises or the Property or the improvements or buildings
located thereon, or any portion thereof, be taken or appropriated, or condemned by reason of eminent domain, the entire award shall be the property of the Landlord and in no event shall Tenant receive any portion of any award made to Landlord.
Tenant shall have the right to make a separate claim for its own damages. 
 e. In the event less than materially all of the Premises shall
be taken by governmental authority, then: 
 1. If the portion so taken does not affect the operation of Tenant’s
business, then this Lease shall continue in full force and effect. 
 2. In the event the portion of the Premises are taken so
that Tenant is able to continue to operate its business, but the operation of such business is reduced by reason of such taking, then the Base Rent shall be reduced proportionately by the same percentage as the square footage of the Premises which
have been taken by governmental authority bears to the total square footage of the Premises prior to such taking. 
 19.
DESTRUCTION OF PREMISES  
 a. In the event the entire Premises or materially all of the Premises are destroyed by fire or other
casualty, Landlord shall have the option of terminating this Lease or of rebuilding the Premises and shall give written notice of such election to the Tenant within thirty (30) days after the date of such casualty. In the event Landlord elects
to rebuild the Premises, the Premises shall be restored to its former condition within a reasonable time, during which the rent due from Tenant to Landlord hereunder shall abate. In the event Landlord elects to terminate this Lease, Rent shall be
paid only to the date of such casualty, and the term of this Lease shall expire as of the date of such casualty and shall be of no further force and effect and Landlord shall be entitled to sole possession of the Premises. 
 b. The term “materially all of the Premises” shall be deemed to mean such portion of the Premises, as when so destroyed, would leave remaining
a balance of the Premises which due to the amount of area destroyed or the location of the part so destroyed in relation to the part left undamaged would not allow the Tenant to continue its business operations. 
 c. In the event of a partial destruction which is not materially all of the Premises, the Base 

  

 8 

 
Rent shall proportionately abate based upon the square footage of the Premises remaining undamaged and Landlord shall repair the damage. 
 d. Notwithstanding the foregoing, if the damage or destruction is as a result of the action or inaction of Tenant or Tenant’s employees, or agents,
invitees, or as a result of Tenant not fulfilling all of its obligations under this Lease, no Rent shall abate and Tenant shall make all necessary repairs. 
 20. QUIET ENJOYMENT Tenant, upon paying the Rent and all other sums and charges to be paid by it as herein provided, and observing and keeping all covenants, warranties, agreements and conditions of this Lease on its part to be kept,
shall quietly have and enjoy the Premises during the term of this Lease, without hindrance or molestation by anyone. Additionally, lender may not violate this clause. 
 21. DEFAULTS Each of the following events shall be an “Event of Default” hereunder: 
 a.
Failure of Tenant to pay any installment of Rent or any part thereof, or any other payments of money, costs or expenses herein agreed to be paid by Tenant, when due. 
 b. Failure to observe or perform on one or more of the other terms, conditions, covenants or agreements of this Lease and the continuance of such failure for a period of fifteen (15) days after written notice by
Landlord specifying such failure (unless such failure requires work to be performed, acts to be done or conditions to be improved, as the case may be, within such fifteen (15) day period, in which case no default shall be deemed to exist so
long as Tenant shall have commenced curing the same within such 15 day period, and shall diligently and continuously prosecute the same to completion). 
 c. If this Lease or the estate of Tenant hereunder shall be transferred to or assigned to or subleased to or shall pass to any person or party, except in a manner herein permitted. 
 d. If a levy under execution or attachment shall be made against Tenant or its property and such execution or attachment shall not be vacated or removed
by court order, bonding or otherwise within a period of thirty (30) days. 
 e. A rejection of the Lease by a trustee in bankruptcy
appointed in connection with the bankruptcy of the Tenant. 
 f. A failure to vacate the Premises upon termination of the Lease. 

No payment by Tenant or receipt by Landlord of an amount less than the required payment set forth in the Lease, shall be considered as anything other
than a partial payment of the amount due. No endorsement or statement to the contrary on any check shall be deemed an accord and satisfaction. Landlord may accept a partial payment without prejudicing Landlord’s right to recover the balance of
such payment which is still due, and without affecting any other remedies available to Landlord. 
 22. REMEDIES Upon an “Event of Default”
as defined above, Landlord at its option shall have the following non-exclusive remedies in addition to those provided by law: 
  

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 a. Landlord may treat the Lease as terminated whereupon the right of Tenant to the possession of the
Premises shall immediately terminate, and the mere retention or possession thereafter by Tenant shall constitute a forcible detainer. 
 b.
Landlord may terminate Tenant’s right of possession, without the termination of this Lease, in which event Landlord shall have the right to relet the Premises as the agent for the Tenant and to hold the Tenant responsible for any deficiency
between the amount of Rent realized from such reletting, including but not limited to renovation and repair expenses, Brokerage Expenses, and the amount which would have been payable by Tenant under the terms of this Lease. No re-entry or
repossession by the Landlord shall serve to terminate this Lease, unless the Landlord so elects in writing, nor shall it release Tenant from any liability for the payment of any Rent stipulated to be paid pursuant to this Lease or for the
performance or fulfillment of any other term or condition provided herein. 
 c. Landlord may declare all the installments of Rent for the
whole term of this Lease to be immediately due and payable at once without further demand, in which event all sums payable to the Landlord shall bear interest from the date of default at the highest rate permitted by law. 
 d. Landlord shall have the right to take no immediate action and to hold the Tenant responsible for the Rent as it becomes due. 
 e. Any Base Rent which was abated or waived by Landlord shall also be immediately due and payable by Tenant to Landlord. 
 f. In the event of a holdover by Tenant after the termination of this Lease, Landlord shall have the right to collect double the amount of Base Rent. In
addition, Tenant shall be responsible for any cost or expenses incurred by Landlord as a result of such holdover, including but not limited to any damage incurred by Landlord as a result of Landlord’s inability to make the premises available to
a new Tenant. 
 23. ATTORNEYS’ FEES In the event of any litigation arising out of this Lease, the Losing party shall pay to the Prevailing Party
all costs and expenses, including reasonable attorneys’ fees (including appellate proceedings) which the Prevailing Party may incur. 
 24.
CERTIFICATES Either party shall, without charge, at any time and from time to time hereafter as may be commercially reasonable, within fifteen (15) days after written request of the other, certify by written instrument duly executed and
acknowledged to any mortgagee or purchaser, or proposed mortgagee or proposed purchaser, or any other person, firm or corporation specified in such request: 
 a. As to whether this Lease has been supplemented or amended, and if so, the substance and manner of such supplement or amendment; 
 b. As to the validity and force and effect of this Lease, in accordance with its tenor as then constituted; and 
  

 10 

 c. As to any other matters as may reasonably be so requested. 
 Any such certificate may be relied upon by the party requesting it and any other person, firm or corporation to whom the same may be exhibited or
delivered, and the contents of such certificate shall be binding on the party executing same. 
 Should any banking institution, savings and
loan association or other institutional lender to whom Landlord is applying for a loan which, if granted, would make such lender a Landlord’s mortgagee, request reasonable modification in this Lease, the effect of which would not make a change
in the rental or other economic terms of this Lease or increase Tenant’s expenses or the risk to which Tenant is exposed, Tenant agrees that it shall not unreasonably withhold its agreement to such modification. 
 25. RADON GAS Radon is a naturally occurring radioactive gas that when it has accumulated in a building in sufficient quantities may present health risks to
persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit.

 26. STORMS Tenant agrees to exercise reasonable care to protect the Premises and Property in the event a public warning should be issued that the
Premises are threatened by a hurricane, tornado or storm of similar magnitude. 
 27. LANDLORD’S RIGHT TO PERFORM TENANT’S COVENANTS If
Tenant shall at any time fail to make any payments in accordance with the provisions hereof, or to take out, pay for, maintain or deliver any of the insurance policies provided for herein, or shall fail to make any other payment or perform any other
act on its part to be made or performed, then Landlord, after fifteen (15) days notice to Tenant (without notice in case of an emergency) and without waiving or releasing Tenant from any obligation of Tenant contained in this Lease, may (but
under no obligation to): 
 a. Pay any amount payable by Tenant pursuant to the provisions hereof, or 
 b. Make any other payment or perform any other act on Tenant’s part to be made or performed as in this Lease provided, and may enter upon the
Premises for the purpose and take all such action thereon as may be necessary therefore. 
 All sums so paid by Landlord and all costs and
expenses incurred by Landlord in connection with the performance of any such act, shall bear interest at the highest rate allowed by law. 
 28.
NOTICE Any notice, designation, consent, approval or other communication required or permitted to be given pursuant to the provisions of this Agreement shall be given in writing and shall be sent by registered or certified mail, postage
prepaid, return receipt requested, addressed to the addresses set forth on the first page of this Lease. 
 Either party may, by notice given
in accordance with the provisions in this section, designate 

  

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any further or different address to which subsequent notices, designations, consents, approvals or other communications pursuant to the provisions of this
Agreement shall be sent. Any notice, designation, consent, approval or other communication shall be deposited in any post office or official depository of the United States Postal Service in the State of Florida. 
 29. HAZARDOUS MATERIAL Tenant shall not knowingly cause or permit any hazardous material to be brought upon, kept, or used in or about the Premises by Tenant, its
agents, employees, contractors or invitees. If the Premises are, through Tenant’s fault, contaminated by hazardous materials, then Tenant shall indemnify, defend and hold Landlord harmless from any and all claims, judgments, damages, penalties,
fines, costs, liabilities or losses (including without limitation, diminution in value or useable space or of any amenity of the Premises), damages arising from any adverse impact on marketing of space, and sums paid in settlement of claims,
attorney’s fees, consultants fees and expert fees (including any appeals) which arise during the lease term as a result of any such contamination. 
 This indemnification by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any clean up, remediation, removal or restoration work required by any federal,
state or local government agency or political subdivision because of hazardous material present in the soil or ground water on or under the Premises. Without limiting the foregoing, if the presence of any hazardous material on the Premises is
detected, Tenant shall promptly take all actions at its sole expense as are necessary to return the Premises to the condition existing prior to the contamination or introduction of such hazardous material to the Premises; provided, however, that
Landlord’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld, so long as such actions would not potentially have any material adverse effect on the Premises. 
 As used herein, the term hazardous materials means any hazardous or toxic substance, material or waste, which is or becomes regulated by any local
government authority, the State of Florida or the United States government. The term “hazardous material” includes, without limitation, any material or substance that is (1) defined as a “hazardous substance” under
appropriate state law provisions, (2) petroleum, (3) asbestos, (4) designated as a “hazardous substance” pursuant to Section 311 of the Federal Water Pollution Control Act (33 USC 1321), (5) defined as a hazardous
waste pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, (42 USC 690), (6) defined as a hazardous substance pursuant to Section 10 of the Comprehensive Environmental Response, Compensation and Liability
Act (42 USC 9601), or (7) defined as a regulated substance pursuant to Sub-Chapter VIII, Solid Waste Disposal Act (the regulation of underground storage tanks), (42 USC 4991). 
 30. TENANT’S BUSINESS None of the provisions of this Lease shall be deemed or construed as reserving to Landlord any right to exercise any control over the business or operations of Tenant conducted upon
the Premises or to direct in any respect the details or manner in which any such business relationship other than a landlord/tenant relationship is found. Tenant is an independent businessperson and neither Tenant nor any party or parties employed
by Tenant are agents, servants or employees of Landlord and Tenant agrees that in Tenant’s dealing with the public, Tenant will not represent or hold its employees as agents, servants or employees of Landlord. 
  

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 31. SIGNS Tenant shall not place or permit to be placed or maintained on any exterior door, wall or window of the
Premises or Property any sign, awning or canopy or advertising matter or other thing of any kind, and will not place or maintain any decoration, letter or advertising matter on any glass of any window or door, nor will any illuminated sign be placed
in the window display area(s) of the Premises or Property without Landlord’s prior written approval and consent. Tenant will pay for the standard white lettering that makes up the three signs being placed (1) their front door,
(2) elevator and (3) lobby. 
 32. MISCELLANEOUS  
 The parties further agree as follows: 
 a.
The covenants, conditions and agreements contained in this Lease shall bind and inure to the benefit of Landlord and Tenant and their respective heirs, successors, administrators, representatives and permitted assigns. 
 b. This Lease and the performance thereof shall be governed, interpreted, construed and regulated by the laws of the State of Florida. 
 c. The rights of the Landlord under the terms of this Lease shall be cumulative, and failure on the part of Landlord to exercise promptly any rights
given under the terms of this Lease shall not operate to forfeit any of said rights nor shall the same be deemed a waiver of such rights. 
 d. The parties acknowledge that each has had the opportunity to have this Agreement reviewed by counsel and notwithstanding the fact that this Agreement was initially drafted by the attorneys for Landlord, all parties have participated
equally in the final wording of this Agreement, and in the event of any dispute regarding the meaning of any of the terms herein, such terms shall not be construed against Landlord. 
 e. This Lease shall not be recorded in the Public Records. 
 f. This Agreement represents the entire understanding between the parties, and supersedes all prior agreements, oral or written, and this Lease Agreement may not be amended except by an instrument in writing signed by
the parties hereto. 
 g. The submission of this document for examination does not constitute an option or offer to lease space at the
Property. This document shall have no binding effect on the parties unless executed by the Landlord and the Tenant and a fully executed copy is delivered to the Tenant. 
 h. The Landlord and Tenant understand and agree that TIME IS OF THE ESSENCE of all of the terms and provisions of this Lease agreement. 
 i. If any term, covenant, condition, or provision of this Lease or the application thereof to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, the remainder of this Lease,
or the application of such term or provision of persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term, 
  

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covenant, condition, and provision of this Lease shall be valid and be enforced to the fullest extend permitted by law. 
 j. No Judgement shall be taken against any partner, subsidiary, officer, shareholder, director, employee, sister corporation or agent of Landlord and no
Writ of Execution shall be levied against the assets of any partner, subsidiary, officer, shareholder, director, employee, sister corporation or agent of Landlord. Any liability of Landlord shall be limited to Landlord’s interest in the
Property. 
 k. Tenant and Landlord acknowledge and confirm that there are no fixtures, furnishings or equipment existing in the Premises or
included in the Lease. 
 33. BANKRUPTCY Notwithstanding anything herein to the contrary, in the event Tenant is the subject of any bankruptcy
(including reorganization or arrangement proceedings pursuant to any bankruptcy), voluntary or involuntary, then Landlord shall have the right to terminate this Lease. 
 34. BROKERAGE Tenant warrants and represents that it has dealt with no broker in connection with the consummation of this Lease, and in the event of any brokerage claims against the Landlord predicated
upon prior dealings with the Tenant named herein by any party other than the Broker, the Tenant agrees to defend the same and indemnify the Landlord against any such claim. 
 35. PARKING Tenant is entitled to the use of Seven (07) parking spaces and its employees, clients, invitees, etc. shall have the privilege of using common parking areas subject to Landlord’s
reasonable rules and regulations and provided said use is not excessive. In the event Tenant’s daily parking requirements exceed four (4) spaces per thousand sq. ft. of leasable area, Landlord reserves the right to require Tenant to make
other arrangements for offsite parking for cars in excess of four (4) per thousand sq. ft. 
 36. JURY TRIAL WAIVER THE PARTIES HEREBY WAIVE ANY
RIGHTS TO A TRIAL BY JURY IN ANY ACTION BASED UPON OR ARISING OUT OF OR IN CONJUNCTION WITH THIS LEASE. 
 37. ENERGY EFFICIENCY RATING In accordance
with the Florida Building Energy-Efficiency Rating Act {Chapter 553, Part XI, F.S. (1993)}, the Buyer or Lessee of the Real Property with a building for occupancy located thereon is notified that the Buyer or Lessee may have the building’s
energy-efficiency rating determined. Tenant acknowledges receipt of the “Florida Building Energy-Efficiency Rating System” Disclosure. 
 38.
OPTION TO RENEW The option to renew may be exercised only if no default exists under any of the terms of the Lease when the option becomes exercisable. In addition, if tenant has been in default by reason of a failure to pay money when due
more than twice in any calendar years during a term of this Lease, no options to renew may be exercised. 
 Renewal terms shall be on the
same terms, covenants and conditions provided for in the Lease, except there shall be no privilege to renew the term of this Lease for any period of term after the 

  

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expiration of the Option Term. The Gross Rent for the renewal terms shall be as set for in Exhibit “A”. Tenant shall also remain responsible each
year of the renewal terms for its proportionate share of the Common Expenses over and above the actual 2003 Common Expenses as set forth in Exhibit “B”. 
 Tenant shall exercise its right to renew at least one hundred eighty (180) days prior to the expiration of the initial term or any renewal term, Tenant shall notify Landlord in writing of its election to exercise
the right to renew the term of this Lease for the renewal term; upon giving notice of exercise of this renewal option, the Lease shall be deemed to be renewed and the term thereof renewed for the period and upon the terms provided in the Lease
without the execution of any further lease or instrument. 
 39. NO SMOKING The Cordova Building is a non-smoking building. Smoking is not permitted
anywhere inside the building, office, bathroom, etc. Smoking is allowed only in designated areas outside the building. Cigarette butts should be properly extinguished in cigarette containers located outside the lobby entrances. 
 40. ENTRY CARDS The Cordova Building is open Monday thru Friday from 8:00am to 5:30pm. For the Tenant to gain access to the lobby any other time an entry card is
needed. (The Tenant’s visitors can call from the phone box outside the lobby door.) The number of entry cards assigned will correspond with the number of your assigned parking spaces. Additional cards can be obtained with a $25.00 deposit. Each
entry card is numbered. All entry cards will be returned at the end of the lease term. Missing entry cards will require the Tenant to forfeit a portion of their Security Deposit. ($25.00 per card assigned). 
 41. LANDLORD’S RESPONSIBILITIES Landlord shall maintain and keep the building in good repair including the lighting, roof, structure and common areas. As
long as Tenant is not in monetary default under this Lease, Landlord agrees to furnish or cause to be furnished to the Premises the following utilities and services, subject to the conditions and standards set forth herein: 
  

	 	a.	Non-attended automatic elevator service, in common in Landlord and other tenants and occupants and their agents and invitees. 

  

	 	b.	Air conditioning, heating and ventilation as are required for the comfortable use and occupancy of the Premises. 

  

	 	c.	Water fountain for drinking and rest room purposes in the common areas of the Building. 

  

	 	d.	Reasonable janitorial and cleaning services, provided that the Premises are used exclusively for office purposes and are kept reasonably in order by Tenant.

  

	 	e.	Seven (7) reserved parking spaces in the Building’s parking facilities, currently numbered 25, 27, 28, 29, 30, 46 & 62. 

  

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 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day
and year first above written. 
  

							
	 Signed, sealed and delivered
 in the presence of:
	  		  	
			
		 		  	 LANDLORD: Southern Centers Associates I L.P., a
 Delaware limited partnership

			
	 /s/ Pamela C. Olejar
	  	By:	  	/s/ Randall Kella
				
	 Print Name:
	 	 Pamela C. Olejar
	  	Its:	  	 Managing Member

				
		 		  	Date:	  	 January 30, 2004

			
	 	  		  	
				
	 Print Name:
	 	 	  		  	
			
		 		  	 TENANT: Elandia Solutions, LLC.

			
	 /s/ Jonathan Lakso
	  	 By:
	  	/s/ S.D. Camper III
				
	 Print Name:
	 	 Jonathan Lakso
	  	 Its:
	  	 President

				
		 		  	 Date:
	  	 January 30, 2004

			
	 	  		  	
				
	 Print Name:
	 	 	  		  	

  

 16 

 FIRST ADDENDUM TO LEASE AGREEMENT 
 THIS FIRST ADDENDUM TO LEASE AGREEMENT between ELANDIA SOLUTIONS, LLC (hereinafter referred to as “Tenant”), a limited liability company, located in Suite #300 in the building known as the Cordova Building
located at 1500 Cordova Road, Fort Lauderdale, FL 33316, and SOUTHERN CENTERS ASSOCIATES I, L.P. (hereinafter referred to a “Landlord”) made this 27th day of May, 2006 shall be attached to made part of the Lease Agreement dated
January 30, 2004 (hereinafter referred to as “Lease”); 
 W-I-T-N-E-S-S-E-T-H 
 FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged by each party from the other, it is hereby agreed that the Lease is amended as follows:

 WHEREAS, Tenant presently leases from Landlord Suite #300, comprised of 2,302 rentable square feet, hereinafter referred to as “Premises”
in accordance with the following; 
  

	 	1.	Tenant wishes to move to Suite #312, comprised of 1,226 square feet for the remaining term of the Lease for said Premises. Therefore, the monthly rent for the remaining term of the
Lease shall be calculated as follows: 

 1,226 sf x $26.52 / 12mo.—less prorata rent credit $212.85 = 
 $2,496.87 + 6% (149.81)= 2,646.68 per month. 
  

	 	2.	Tenant’s move and rent change will occur simultaneously with current occupant of Suite #312. 

  

	 	3.	The expiration of the Lease Term remains at 02/19/07. Tenant shall have the right to renew the Lease for a term of Three (3) additional years, commencing upon the expiration of
the extended Lease term provide for herein, on the terms and conditions set forth below. 

 i. The option to renew may be
exercised only if no default exists under any of the terms of the Lease when the option becomes exercisable. In addition, if tenant has been in default by reason of a failure to pay money when due more than twice in any calendar years during a term
of this Lease, no options to renew may be exercised. 
 ii. Renewal terms shall be on the same terms, covenants and conditions provided for
in the Lease, except there shall be no privilege to renew the term of this Lease for any period of term after the expiration of the Option Term. The Base Rent for the renewal terms shall be as set for in Exhibit “A”. Tenant shall also
remain responsible each year of the renewal terms for its proportionate share of the Common Expenses over and above the actual 2002 Common Expenses as set forth in Exhibit “B”. 
  

 1 

 iii. Tenant shall exercise its right to renew at least one hundred eighty (180) days prior to the
expiration of the initial term or any renewal term, Tenant shall notify Landlord in writing of its election to exercise the right to renew the term of this Lease for the renewal term; upon giving notice of exercise of this renewal option, the Lease
shall be deemed to be renewed and the term thereof renewed for the period and upon the terms provided in the Lease without the execution of any further lease or instrument. 
  

	 	4.	“2002 Operational Cost Stop” and Common Area Expense Reimbursement: 

 Common Expenses, Operating Expenses and Common Area Maintenance of “CAM” are interchangeable words and are defined as every expense incurred by the Landlord in the operation of the Building and Tenant’s
Premises. If applicable, Tenant shall pay, as additional rent and with the monthly Base Rent payment; Tenant’s pro rata share of Common Expenses over and above the 2002 actual operating expenses (an estimate of which is set forth per Exhibit
“B” attached hereto). 
 Common Expenses include, but are not limited to: Real Estate Taxes (regular and special) assessed against
the Property; the costs of all types of insurance carried by the Landlord with respect to the Property; Landlord’s cost of operating the Property (and Tenant’s Premises where Landlord is responsible for same) and all taxes, licenses,
insurance, fees and permits, repairs, and replacements necessary to maintain the Property and Common Areas (and Tenant’s property when applicable) in the same condition as when originally constructed, together with a reasonable management fee.

 The “Common Areas” are defined as including but not limited to, the hallways, sidewalks, curbs, parking area, landscaped areas,
enclosed common passageways, elevators, stairways, roof, driveways, washrooms and other areas available for the joint use of all tenant and to their employees, agents, customers, licensees and invitees. It is the intention of the foregoing
definition that the Common Areas shall include all areas which are not specifically demised to any one tenant, excepting those expenses which are attributable to Tenants’ premises. 
  

	 	5.	 The Tenant, at its sole expense shall be require to obtain and have in full force and effect, premises liability insurance in the amount of $300,000 and property
insurance with a minimum amount of $25,000 from a reputable Insurance carrier. TENANT shall list the LANDLORD as an additional insured on said policy. TENANT shall furnish LANDLORD with a Certificate of Insurance upon occupancy and upon demand of
the LANDLORD at any time during the Term of the Lease. TENANT, at is some expense, shall also be required to carry business interruption insurance with respect to the Leased Premises. Upon demand from LANDLORD, TENANT shall be required to furnish
proof of said insurance to LANDLORD. If TENANT fails to keep said insurance policy in effect during the term o f the Lease, it is deemed a default by and LANDLORD at is sole option, may demand the remaining rent due in full, cancel said Lease with
TENANT responsible for any amounts remaining unpaid or payable in the future, or exercise any option available to it in law and/or equity. Notwithstanding the provisions of this 

  

 2 

	 	 
paragraph, if TENANT fails to obtain, maintain and pay for insurance as provided in this section, LANDLORD may, at its option, have these polices issued and
pay the premiums on same. The amount of these premiums shall become due from TENANT as rent on the first of the month following the payments by LANDLORD. These remedies shall be cumulative and not mutually exclusive. 

  

	 	6.	Radon Disclosure: 

 Radon is a naturally occurring
radioactive gas that, when it has accumulated in a building in sufficient quantities, may present healthy risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in
Florida. 
  

	 	7.	The Lease Agreement and Addendum provide Tenant the exclusive use of Tenant designated parking. Designated parking shall be four (4) assigned parking spaces.

  

	 	8.	Except as contained herein all other terms and conditions of the Lease and Addendum are hereby ratified and confirmed. 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment the 27th day of May, 2006. 
  

					
	AS WITNESSES:	 	 	 	TENANT:
		 		 	ELANDIA SOLUTIONS, LLC.
			
	/s/ Susan M. Zuker	 		 	/s/ Harley L. Rollins
			
	/s/ Steve White	 		 	By: Harley L. Rollins
			
		 		 	       Chief Financial Officer
			
		 		 	
			
		 		 	LANDLORD:
			
	/s/ Pamela C. Olejar	 		 	SOUTHERN CENTERS ASSOCIATES, I. L.P.
			
	/s/ Svea M. Jamison	 		 	/s/ Randall Kella
		 		 	By: Randall Kella, Member

  

 3

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