Document:

Amended CMG Shareholders Agreement

 EXHIBIT 10.8 
  
 RESTATED CMG SHAREHOLDERS AGREEMENT 
  
 BY 
  
 CUNA MUTUAL 
 INVESTMENT CORPORATION

  
 AND 
  
 PMI MORTGAGE INSURANCE CO. 
  

 TABLE OF CONTENTS 
  

					
	ARTICLE I.	 	 General Provisions
	  	1
	 1.1
	 	 Purpose
	  	1
	 1.2
	 	 Performance of Functions
	  	2
	 1.3
	 	 Compliance with Regulations
	  	2
			
	ARTICLE II.	 	 Definitions and Construction
	  	2
	 2.1
	 	 Definitions
	  	2
	 2.2
	 	 Construction
	  	3
			
	ARTICLE III.	 	 Term
	  	3
	 3.1
	 	 Term
	  	3
			
	ARTICLE IV.	 	 Strategic Alliance
	  	3
	 4.1
	 	 Strategic Alliance
	  	3
	 4.2
	 	 Corporate Matters
	  	3
	 4.3
	 	 Premium Rates
	  	6
	 4.4
	 	 Business Plans
	  	6
	 4.5
	 	 Exclusivity
	  	6
	 4.6
	 	 Restated CMIC Services Agreement
	  	8
	 4.7
	 	 Restated PMI Services Agreement
	  	8
	 4.8
	 	 Name Change
	  	8
	 4.9
	 	 Technology
	  	8
	 4.10
	 	 Restriction on Sale
	  	14
	 4.11
	 	 Use of Names
	  	14
	 4.12
	 	 Access to Records
	  	15
	 4.13
	 	 Trademarks and Advertising
	  	15
			
	ARTICLE V.	 	 Put and Call Options
	  	15
	 5.1
	 	 Put and Call Options
	  	15
	 5.2
	 	 Exercise of Options
	  	16
	 5.3
	 	 Performance Standards
	  	17
	 5.4
	 	 Breach; Fraud
	  	17
	 5.5
	 	 Additional Exercise Rights of CMIC
	  	18
	 5.6
	 	 Additional Exercise Rights of PMI
	  	18
	 5.7
	 	 Price
	  	19

  

					
	ARTICLE VI.	 	 Confidentiality
	  	21
	 6.1
	 	 Confidentiality
	  	21
			
	ARTICLE VII.	 	 Dispute Resolution
	  	23
	 7.1
	 	 Dispute Resolution
	  	23
			
	ARTICLE VIII.	 	 Miscellaneous
	  	23
	 8.1
	 	 Delays and Waivers
	  	23
	 8.2
	 	 Notices
	  	24
	 8.3
	 	 Entire Agreement
	  	24
	 8.4
	 	 Parties Bound
	  	24
	 8.5
	 	 Governing Law
	  	25
	 8.6
	 	 Covenant to Further Assurances
	  	25
	 8.7
	 	 Headings; References
	  	25
	 8.8
	 	 Severability
	  	25
	 8.9
	 	 Attorneys Fees
	  	25
	 8.10
	 	 Remedies
	  	25
	 8.11
	 	 No Violation of Contract
	  	25
	 8.12
	 	 No Authority to Bind
	  	25
	 8.13
	 	 Compliance with Law
	  	25
	 8.14
	 	 Consent
	  	26
	 8.15
	 	 Legends
	  	26

  

					
	 EXHIBIT A
 RESTATED CMIC SERVICES AGREEMENT
	  	A-1
		
	 EXHIBIT B
 RESTATED PMI SERVICES AGREEMENT
	  	B-1
		
	 EXHIBIT C
 RESTATED TRADE NAME LICENSE AGREEMENT
	  	C-1
		
	 EXHIBIT D
 LIST OF PMI TECHNOLOGY
	  	D-1
		
	 EXHIBIT E
 TECHNOLOGY ESCROW AGREEMENT
	  	E-1
		
	 EXHIBIT F
 RESTATED SOFTWARE LICENSE AGREEMENTS
	  	F-1
		
	 EXHIBIT G
 FORM OF NOTE
	  	G-1

  

			
	 EXHIBIT H
 FORM OF STOCK PLEDGE AGREEMENT
	  	H-1
		
	 EXHIBIT I
 PERFORMANCE STANDARDS
	  	I-1

  

 RESTATED CMG SHAREHOLDERS AGREEMENT 
  
 THIS AGREEMENT is made effective as of the 1st day of June, 2003 (the “Effective Date”), by and between CUNA Mutual Investment Corporation (“CMIC”) and PMI
Mortgage Insurance Co. (“PMI”). 
  
 The
parties acknowledge that this Agreement is based on the following: 
  
 A. CMIC is a Wisconsin corporation and is a wholly-owned subsidiary of CUNA Mutual Insurance Society (“CUNA Mutual”), a Wisconsin mutual insurance company. 
  
 B. CUNA Mutual and its affiliates provide insurance and financial
products and services to credit unions, credit union service organizations, other credit union entities and credit union members in all fifty states and elsewhere throughout the world. 
  
 C. PMI is an Arizona stock insurance company and it is licensed to engage in mortgage guaranty insurance business in
all fifty states, and Puerto Rico. 
  
 D. CMIC owns 50% and
PMI owns 50% of the issued and outstanding shares of stock of CMG Mortgage Insurance Company (“CMG”). 
  
 E. CUNA Mutual and PMI originally entered into a strategic alliance using CMG to make mortgage guaranty insurance available to credit unions (the
“Mortgage Insurance Program”) in the manner specified in the CMG Shareholders Agreement dated September 8, 1994 (the “Original Agreement”). 
  
 F. In order to accomplish the offering of the Mortgage Insurance Program to credit unions and their members, CMIC and
PMI entered into an exclusive relationship on the terms and conditions set forth in the Original Agreement. The parties now wish to restate the Original Agreement as set forth in this Agreement in order to reflect the current operations of CMG.

  
 NOW, THEREFORE, for good and valuable
consideration, including the mutual covenants contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows: 
  
 ARTICLE I. General Provisions 
  
 1.1 Purpose. 
  
 (a) General. The principal purpose of this Agreement is to set forth
the arrangement under which CMIC and PMI will operate CMG and make mortgage guaranty insurance available to credit unions for first mortgage loans to their members. 
  

 1 

 (b) Commitments by Parties. By entering into this Agreement, each party commits itself to
providing the financial and human resources, investment, operational activities, and facilities needed to develop and implement the Mortgage Insurance Program in accordance with this Agreement. 
  
 1.2 Performance of Functions. Each party may have another entity
within its respective Group of Companies perform some or all of the obligations imposed upon it by this Agreement. Provided, however, that any such entity shall agree to be bound by the terms of Sections 4.5(b) and (c) (restrictions on activities),
4.11 (use of names), 4.12 (access to records), 4.13 (trademarks and advertising) and 6.1 (confidentiality), and each party to this Agreement shall continue to be obligated with respect to any obligation performed by another member of its Group of
Companies. 
  
 1.3 Compliance with Regulations. CMIC
and PMI each recognizes that an insurance company is subject to regulation by each state in which it does business and that nothing in this Agreement will be interpreted, construed or enforced in a manner that would result in a violation of the
rules and regulations that apply to CMG or members of the CUNA Mutual or PMI Groups of Companies. CMIC and PMI further agree that they shall take all necessary action to ensure that CMG is in compliance and remains in compliance with all applicable
law. Nothing set forth in this Section shall affect the rights and obligations of CMIC and PMI with respect to each other as set forth in this Agreement or any other agreements, including without limitation, any agreements with CMG.

  
 ARTICLE II. Definitions and Construction 
  
 2.1 Definitions. In addition to the terms defined in the Recitals to
this Agreement, the following definitions apply unless the context clearly indicates otherwise: 
  
 Business Plans shall mean the Business Plans referred to in Section 4.4. 
  
 Credit Union Organization shall mean any credit union or its credit union service organization or other affiliate,
any credit union trade association or league (national, state or otherwise) or its service corporations or other affiliate, or any other credit union entity. 
  

CUNA Mutual Group of Companies shall mean any entity that directly or indirectly controls, is under common control with, or is controlled by
CUNA Mutual. 
  

 2 

 Management Committee shall mean the Management Committee of CMG, as described in Section 4.2(b).

  
 Mortgage Insurance Program or Program shall mean the
jointly managed plan embodied in the Business Plan for the offering of mortgage guaranty insurance through CMG to credit unions for their members. 
  
 Original Agreement shall mean the CMG Shareholders Agreement dated September 8, 1994 between CMIC and PMI. 
  
 PMI Group of Companies shall mean any entity that directly or
indirectly controls, is under common control with, or is controlled by PMI. 
  
 2.2 Construction. Unless the context plainly requires otherwise, the plural of words defined in the singular shall mean one or more of the same, the singular of words defined in the plural shall mean one of the
same, and all words used in any gender shall extend to and include both genders. 
  
 ARTICLE III. Term 
  
 3.1 Term. The term of this Agreement shall commence as of the date hereof and shall continue indefinitely until terminated in accordance with the terms of this Agreement. 
  
 ARTICLE IV. Strategic Alliance 
  
 4.1 Strategic Alliance. This Agreement shall constitute the terms under which the operation of CMG shall be governed
and under which the strategic alliance between CMIC and PMI for the operation of the Mortgage Insurance Program shall be conducted. 
  
 4.2 Corporate Matters. 
  
 (a) Board of Directors; President. The Board of Directors of CMG shall consist often (10) members or such different number as may be agreed upon
from time to time by vote of the shareholders. So long as CMIC and PMI each own 50% of CMG’s issued and outstanding stock: (i) each shall have the right to designate the same number of directors and PMI and CMIC shall vote their shares in order
to elect the persons so designated, (ii) the chairmanship of the Board of Directors of CMG will rotate annually between CMIC and PMI designees, and (iii) the President shall be a person designated by CMIC. If PMI and CMIC no longer each own 50% of
CMG’s issued and outstanding stock, the election of directors and officers shall be by majority vote, except that so long as PMI or CMIC owns at least 26% but less than 50% of CMG’s issued and outstanding stock, the minority shareholder
shall have the right to designate one-third of the total number of directors and PMI and CMIC agree to vote their shares in order to elect the persons so designated. If one-third of the total number of directors is not a whole number, the number
shall be rounded off to the nearest whole number. 
  

 3 

 (b) Management Committee. Subject to the overriding authority of the Board of Directors,
management of the operations of CMG will be by a Management Committee acting in the manner specified in the Bylaws. 
  
 (c) Redomestication. If CMIC and PMI agree that CMG should be redomesticated to another state, PMI and CMIC will take all steps necessary to
have CMG redomesticated, and all costs thereof shall be borne by CMG. 
  
 (d) Additional Capital Contributions. No party shall be entitled to make an additional capital contribution to CMG except in accordance with the terms of this subsection. 
  
 The Board of Directors may from time to time by unanimous vote issue a
capital call. In addition, a capital call shall be deemed to have been issued when (i) at any time CMG has insufficient assets to pay when due any claim for policy benefits made in the ordinary course of business or any expenditure called for by an
annual Business Plan or approved by the Management Committee, and CMG has not been able to remedy the shortfall through short term borrowing, adjustments in the Business Plan or other appropriate means; or (ii) additional capital is required as a
condition to the continued purchase of loans insured by CMG by the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal National Mortgage Association (“Fannie Mae”), their successors, or any other
entity that in the future is a substantial and significant purchaser of such loans comparable to Freddie Mac or Fannie Mae. All capital calls shall be in the same proportion as the ownership of the stock in CMG. 
  
 CMIC and PMI shall be obligated to make a capital contribution in response
to any capital call under this subsection, and the contribution shall be made on or before the deadline set by the Board of Directors. In the event of a deemed capital call under subparagraph (i) in the preceding paragraph and in the absence of a
different deadline established by the Board of Directors, the capital contribution shall be made within sixty (60) days after any member of the Management Committee gives notice to both parties, unless circumstances require an earlier payment. In
the event of a deemed capital call under subparagraph (ii) in the preceding paragraph and in the absence of an earlier deadline established by the Board of Directors, the capital contribution shall be made in a timely manner so that continued
purchase of loans insured by CMG is not adversely affected. 
  
 Notwithstanding anything to the contrary in this Agreement, neither CMIC nor PMI shall be obligated to make additional capital contributions without its consent, if that contribution, when aggregated with all other contributions made on or
after April 10, 2001, exceeds Thirty-Seven Million Six Hundred Fifty Thousand Dollars ($37,650,000), with respect to CMIC or Thirty-Seven Million Six Hundred Fifty Thousand Dollars ($37,650,000) with respect to PMI. 
  
 CMIC and PMI may agree between themselves to lend funds to CMG instead of
making additional capital contributions in response to a capital call, but in the absence of such an agreement, additional funds shall be advanced in the form of additional capital contributions. 
  

 4 

 Neither party shall be allowed to make a capital contribution in an amount less than the full amount of
the capital call, and partial capital contributions shall not be accepted by CMG. If either party fails to make a capital contribution in response to a capital call when due, the non-defaulting party shall be entitled to: (i) pay the capital
contribution and receive an appropriate number of shares of stock in CMG; or (ii) if the parties had agreed to respond to the capital call by lending money to CMG, make the loan and receive the appropriate evidence of indebtedness. In addition, the
non-defaulting party shall have the right for sixty (60) days after the default to exercise the put or call option that would be available to it under Section 5.4 in the event of a material default, and for this purpose the cure provisions of that
Section shall not apply. The non-defaulting party may exercise this right in lieu of or in addition to making the defaulted capital contribution. The remedies granted the non-defaulting party under this paragraph are in lieu of any other remedies it
may have under this Agreement or at law or equity. 
  
 Any
change in ownership as a result of the issuance of shares of stock in CMG to one party and not the other under this subsection shall not affect the terms of this Agreement relating to appointment of members to the Board of Directors or the
Management Committee, unless and until either (i) the percentage owned by CMIC equals or exceeds 56%, or (ii) the percentage owned by PMI equals or exceeds 56%. At that time (i) the parties shall take all steps necessary to change the Articles and
Bylaws of CMG to remove any provision that requires greater than a majority vote of the shareholders, the Board of Directors, the Management Committee, or any other committee; and (ii) representation on the Board, the Management Committee, and any
successor or substitute committees with similar authority shall thereafter be proportionate to ownership of shares of common stock. For this purpose, proportionate representation shall be calculated by multiplying the number of members of the
subject group by a percentage equal to the percentage owned by the party owning the highest percentage and rounding the result up to the nearest whole number. The resulting number shall be the number of members of that group appointed by the party
owning the highest percentage and the remainder of the members of that group shall be appointed by the other party. If any group has only two members, the number of members shall be increased to three and the same procedure followed. 
  
 (e) Capital Contributions Resulting From Guarantee. If a capital or
surplus guarantee provided to a state regulatory body (a “Guarantee”) by a party requires the party to make a capital contribution to CMG, a capital call shall be deemed to have been made under Section 4.2(d) for the amount required
to be contributed, and the remaining provisions of Section 4.2(d) shall apply. Any such deemed capital call shall be deemed to be due on the date required by the Guarantee. In the event that the one party is required to contribute the full amount of
the capital call because of the Guarantee, the other party shall reimburse the first party for its share of the capital call within fifteen (15) days. If the other party fails to timely reimburse the contributing party, then the provisions of
Section 4.2(d) shall apply, and the other party will be treated as failing to make a capital contribution in response to a capital call. 
  

 5 

 4.3 Premium Rates. Subject to applicable regulatory requirements, CMG shall at all times endeavor
to provide the best possible risk-based rates to its customers consistent with the high quality service provided by CMG to its customers. The Management Committee will give consideration to lowering the overall cost for originators of high quality
loans. Any such reduction will be subject to any necessary rate filings or other regulatory approvals and will be undertaken only if in compliance with all applicable laws. 
  
 4.4 Business Plans. CMIC and PMI shall jointly develop annual long range Business Plans for the operation of
the Mortgage Insurance Program, and each Business Plan shall be submitted to the Board of Directors for approval. These Business Plans shall contain the budget and operational plan for CMG and the Mortgage Insurance Program, and they shall establish
the objectives of the Program, as measured by service levels, products, as well as long and short term goals, that each party shall endeavor to achieve during the succeeding twelve (12) months. The establishment of the percentage of “new
insurance written” to be targeted shall be established in the Business Plans. Upon the approval of the annual Business Plan by the Board of Directors, CMG shall be operated in accordance with such Business Plan except for changes or deviations
approved in accordance with this Agreement. 
  
 4.5
Exclusivity. 
  
 (a) Exclusive Arrangement.
Except as provided in subsection (d), CMIC agrees that during the term of this Agreement neither it nor any member of the CUNA Mutual Group of Companies shall offer, sell or write mortgage guaranty insurance covering first mortgages to credit
unions or other Credit Union Organizations other than through CMG. However, nothing in this paragraph shall be construed as requiring CUNA Mutual Mortgage Corporation to place insurance issued by CMG on the loans it purchases or originates.

  
 PMI agrees that during the term of this Agreement neither it
nor any member of the PMI Group of Companies shall solicit mortgage guaranty insurance covering mortgages to credit unions or other Credit Union Organizations other than through CMG or CMG Mortgage Assurance Company unless approval has been granted
by the CMG Management Committee. 
  
 (b) Restrictions on
Activities of PMI. During the term of this Agreement and for a period of five (5) years after termination (unless the termination is as a result of the material fraud of CMIC or the material breach of this Agreement or the Restated CMIC Services
Agreement by CMIC), neither PMI nor any member of the PMI Group of Companies shall, directly or indirectly, seek any relationship with any Credit Union Organization for the purpose of developing, preparing or participating in any manner in offering
to provide or providing mortgage guaranty insurance or any insurance or financial product or service marketed to or directed towards Credit Union Organizations or credit union members, or engage in any business, marketing plan, arrangement or
program that emphasizes, targets or focuses on efforts to solicit, develop or write any such business for such Credit Union Organizations or credit union members, as such. 
  
 It is understood that, in the ordinary course of its business of marketing its products to the general public, PMI is
likely to contact a certain number of businesses and members 

  

 6 

 
of the general public who happen to be Credit Union Organizations or members of credit unions, without emphasizing, targeting or focusing upon them as such,
and this Section does not prohibit these contacts or business resulting from these contacts so long as neither results from or is the product of activity otherwise prohibited by this Section. 
  
 (c) Restrictions on Activities of CMIC. During the term of this
Agreement and for a period of five (5) years after termination (unless the termination is as a result of the material fraud of PMI or the material breach of this Agreement or the Restated PMI Services Agreement by PMI), and except as provided in
subsection (d), neither CMIC nor any member of the CUNA Mutual Group of Companies will offer, sell or write mortgage guaranty insurance policies in a manner that is not related to the credit union system. Provided, however, that if CMIC purchases
PMI’s shares of stock in CMG pursuant to Article V or otherwise, CMG shall be allowed to continue to pursue the same scope of business in which it is engaged at the time of purchase. 
  
 If during the term of this Agreement CMIC or any member of the CUNA Mutual
Group of Companies elects to participate in any of the following services within the credit union system, CMIC will notify PMI and the parties will attempt to negotiate a mutually beneficial manner in which to pursue that business: title insurance;
credit enhancement and evaluation services for the secondary market; or contract underwriting. This procedure does not apply to any activities of CUNA Mutual Mortgage Corporation. 
  
 (d) International Activities. If during the term of this Agreement CMIC or any member of the CUNA Mutual Group
of Companies desires to offer, sell or write mortgage guaranty insurance outside of the United States in a manner related to the credit union system, it shall first offer the opportunity to do so to CMG. If the PMI directors act to decline the
opportunity, CMIC or the member presenting the proposal shall be entitled to proceed with its program. Any such program shall be restricted to the credit union system except to the extent that it is reasonably necessary for the viability of the
program that it be established as an integrated program including financial institutions outside the credit union system. 
  
 (e) Application; Survival and Enforcement. The restrictions contained in this Section apply to any of the stated activities, whether performed by
the restricted party through any type of ownership (other than ownership of less than 5% of the securities of a publicly held entity), or as a principal, agent, employer, adviser, consultant, partner, or in any individual or representative capacity
whatsoever, either for its own benefit or for the benefit of others. 
  
 In the event this Agreement is terminated for any reason, the covenants and agreements contained in this Section shall survive for the five (5) year period stated above in the prior subparagraphs in this Section. Each party agrees that a
violation on its part of any covenant contained in this Section will cause irreparable damage to the other party, and for that reason each party further agrees that the other party shall be entitled as a matter of right to an injunction from any
court of competent jurisdiction, restraining any further violation of such covenants. This right to an injunction shall be cumulative and in addition to whatever other remedies a party may be entitled to, including, specifically, recovery of
liquidated, incidental, special or consequential damages. 
  

 7 

 Each party expressly acknowledges and agrees that the covenants and agreements applicable to it under
this Section shall be construed in such a manner as to be enforceable under applicable laws if a more limited scope is determined by a court of competent jurisdiction to be required. 
  
 4.6 Restated CMIC Services Agreement. Subject to any necessary regulatory approvals, CMG will enter into an agreement
with CMIC for the performance of certain sales and other services. This agreement shall be in substantially the form attached as Exhibit A (the “Restated CMIC Services Agreement”), and CMIC will be compensated for these services in
the manner specified in that agreement. 
  
 CMIC will plan,
support and direct sales activities for CMG’s products in the credit union system. Access to the credit union market will be controlled by CMIC, and CMIC will perform all sales functions and be responsible for all sales decisions in accordance
with the approved Business Plans. 
  
 The parties recognize the
importance and value to the CUNA Mutual Group of Companies of the credit union market that CMIC is bringing to the Mortgage Insurance Program. In recognition of this, PMI agrees that all contact with credit unions, Credit Union Organizations or
their members relating to the Mortgage Insurance Program shall be made by members of the CUNA Mutual Group of Companies or with the prior approval of CMIC. 
  
 4.7 Restated PMI Services Agreement. Subject to any necessary regulatory approvals, CMG will enter into an agreement with PMI for the
performance of certain services. This agreement shall be in substantially the form attached as Exhibit B (the “Restated PMI Services Agreement”), and PMI will be compensated for these services in the manner specified in that
agreement. 
  
 4.8 Name Change. The name of
CMG has been chosen by CMIC to fit into the structure of the CUNA Mutual Group of Companies and to promote the Group in the marketplace. The use of the name shall be subject to the terms of a Restated Trade Name License Agreement from CUNA Mutual in
substantially the form attached as Exhibit C, and all right to use the name shall terminate if CMIC is no longer a shareholder of CMG. The name CMG may not be changed without the prior written consent of PMI. 
  

 8 

 4.9 Technology. 
  
 (a) PMI Technology. 
  
 (1) General. PMI agrees to make the technology of the PMI Group of Companies available to CMG as follows: 
  
 (A) Terms and conditions when services performed by PMI. 

 
 (i) Underwriting services. In performing underwriting services
for CMG pursuant to the PMI Services Agreement under Section 4.7, PMI (or other members of the PMI Group of Companies, as appropriate) will use all technology, software, data bases, documentation and systems (collectively referred to in this Section
as the “Underwriting Technology”), and all enhancements to them and replacements for them, that are developed or otherwise obtained by them and used in performing the same or similar functions for themselves or others. This
includes, but is not limited to, the pmiAurasm, pmiTerrasm, and Questsm systems and their mid-range, mainframe or other host system equivalents. 
  
 No separate charge shall be made to CMG for the use of the Underwriting
Technology while PMI is performing the underwriting services for CMG, and the actual cost incurred in connection therewith shall be included in the charges for the underwriting services themselves in accordance with the Restated PMI Services
Agreement. 
  
 (ii) All other services. In connection
with its performance of all other services for CMG pursuant to the Restated PMI Services Agreement under Section 4.7, PMI (or other members of the PMI Group of Companies, as appropriate) will copy or otherwise make available for its use on behalf of
CMG those portions of its existing technology, software, data bases, documentation and systems (collectively referred to in this Section as the “Other Technology”), and all enhancements to them, that are necessary for PMI to meet
the performance standards applicable to it under Section 5.3. This includes any such item that is needed in connection with the following functions as described in the Restated PMI Services Agreement: claims processing; actuarial; reinsurance;
customer service; and accounting. CMG will pay all of the additional costs (including additional third party license fees) incurred in connection with copying and otherwise making the Other Technology available to be used on behalf of CMG. CMG shall
not have any rights in any of this Other Technology except as provided in subsections (a)(l)(B) and (a)(l)(C). 
  
 Except as provided in subsection (c), no charge whatsoever shall be made to CMG for the use of any of the Other Technology unless and until this
Agreement is terminated and subsection (a)(l)(C) applies. 
  
 A
complete list of the Other Technology currently used by PMI to perform these services is attached as Exhibit D. Exhibit D shall be reviewed and revised, if necessary by PMI at least once every two (2) years. Except for any required third party
approvals listed on Exhibit D, PMI warrants and represents that it currently has the right to use all of the Other Technology in the manner specified in this subsection. 
  

 9 

 (B) Terms and conditions when other services performed by CMG during the term of this Agreement.

  
 If at any time during the term of this Agreement CMG,
rather than PMI, performs any of the other services referred to in subsection (a)(1)(A)(ii), PMI (or other members of the PMI Group of Companies, as appropriate) will license and make available to CMG all of the then current Other Technology
referred to in subsection (a)(1)(A)(ii) that was immediately prior thereto being used by PMI in connection with the performance of such services. To the extent that any Other Technology is at that time resident on a PMI hardware system, PMI shall
permit CMG to interface with such system to the extent necessary for CMG to utilize that Other Technology as provided herein. The license agreement will provide that CMG will have the right to receive from PMI all corrections, updates and
modifications used by or made available to PMI; provided that CMG shall be responsible for all costs of implementing any such corrections, updates or modifications, including costs incurred in making necessary program changes. Nothing in this
Agreement or any license agreement shall be construed to require PMI to continue to use any of the Other Technology or to keep it resident upon its system; provided that if any item of Other Technology PMI wishes to discontinue is at the time of
discontinuance resident on a PMI hardware system and accessed by CMG on that system, PMI may not remove that item without first giving CMG a reasonable opportunity to transfer it at CMG’s cost to a system accessible to CMG. Any license under
this paragraph shall be granted according to terms and conditions that will enable CMG to use the licensed materials in all manners that (i) PMI had been using them to provide services to CMG, and (ii) they would have been available to be used by
PMI if PMI had continued to provide such services to CMG in connection with the Mortgage Insurance Program. 
  
 Except as provided in subsection (c), no charge whatsoever shall be made to CMG for the use of the Other Technology unless and until this Agreement is
terminated and subsection (a)(1)(C) applies. 
  
 Nothing in this
subsection (a)(1)(B) shall affect in any manner the right of the CMG Board of Directors to determine in its sole discretion whether to have someone other than PMI perform any of the other services referred to in subsection (a)(1)(A)(ii). 

 
 (C) Terms and conditions after termination of this Agreement.

  
 (i) Application. This subsection (a)(1)(C) shall
apply if either the put or call option referred to in Article V is exercised or if this Agreement terminates for any reason. In that event, commencing as of the “license effective date,” PMI (or other members of the PMI Group of Companies,
as appropriate) will license and make the Underwriting and Other Technology available to CMG in accordance with the terms of this subsection (a)(1)(C). For purposes of this subsection, the “license effective date” shall be the date of sale
or, if CMIC has exercised its call option in response to a breach or fraud by PMI under Section 5.4 or the failure of PMI to meet its performance standards under Section 5.3, the date notice of exercise is given. The license agreement shall
terminate in the event that CMIC defaults in its purchase obligations under Article V or under any promissory note delivered in connection therewith. 
  
 (ii) Underwriting and Other technology. Effective as of the license effective date, PMI (or other members of the PMI Group of Companies, as

  

 10 

 
appropriate) will license and make available to CMG all of the Underwriting Technology and Other Technology used by CMG or a member of the PMI Group of
Companies in providing underwriting or other services, respectively, for CMG immediately prior to the license effective date. All such Technology shall be subject to one or more license agreements as provided in this subsection and such license
agreement shall supersede any prior license under subsection (a)(1)(B). 
  
 The fees for any such licenses shall be the fair value of the Underwriting Technology, Other Technology and services being provided. The license agreements shall provide that CMG will receive all corrections, updates,
modifications and enhancements used by or made available to PMI in connection with the Underwriting Technology. With respect to the Other Technology, the license agreements shall provide that CMG will have the right to receive all corrections,
updates and modifications used by or made available to PMI; provided that CMG shall be responsible for all costs of implementing such corrections, updates or modifications, including costs incurred in making necessary program changes. The licenses
shall be granted according to terms and conditions that will enable CMG to use the licensed materials in all manners that (i) had been used to provide services to CMG prior to the license effective date, and (ii) they would have been available to be
used by PMI if PMI had continued to provide such services to CMG in connection with the Mortgage Insurance Program. 
  
 Each item of Underwriting Technology and Other Technology shall be licensed under a separate license agreement for such period of time up to three (3)
years as may be designated by CMIC and may be continued thereafter upon the mutual agreement of the parties. If at any time during the initial three-year period PMI ceases to use any item of Underwriting Technology or Other Technology in connection
with its own business, it may terminate the license agreement as to that item. Provided, however, that upon any termination of a license agreement, whether before or after the initial three-year period, PMI shall, at no cost other than reasonable
charges for copying and transmittal, deliver to CMG the source code for the underlying software, all documentation, and a royalty free perpetual license to use such item in connection with any mortgage guaranty insurance program it pursues as a
successor to the Mortgage Insurance Program operated under this Agreement. 
  
 If as of the license effective date CMG is using the Underwriting Technology on a PC based system, the license agreement shall in addition provide that PMI will fully support and maintain that system at the fair value
of such service so long as it is providing such support and maintenance to others. 
  
 (D) Escrow Agreement. PMI has placed the source code and other documentation for the Underwriting Technology and Other Technology referred to in subsections (A)(i) and (ii) in escrow with a third party pursuant
to the terms of a mutually agreed upon escrow agreement. The escrowed items shall be updated on a semi-annual basis and immediately after a major modification to the escrowed materials. CMG shall pay all of the costs and fees of the escrow agent.
The escrow agreement shall be in substantially the form attached as Exhibit E. 
  

 11 

 (2) Mortgage Origination and Related Technology. In addition to the rights granted under
subsection (a)(1), CMG will have the right to license present or future technology, software, data bases, documentation and systems (collectively referred to in this Section as the “Mortgage Origination Technology”) owned or used by
PMI or other members of the PMI Group of Companies in mortgage origination or related functions. This right is subject to commercially reasonable efforts by PMI to obtain any necessary third party consents. This right shall only apply to the extent
that PMI has the right to grant such a license and only to the extent that it is at that time licensing such Mortgage Origination Technology to other third parties. The rights granted by this subsection shall only apply to Mortgage Origination
Technology that is owned or used by PMI during the term of this Agreement and shall only apply if the license is granted during the term of this Agreement. 
  
 (3) Licenses to Credit Unions. If the Management Committee decides to license any Underwriting Technology, Other
Technology, or Mortgage Origination Technology referred to in subsections (a)(1) or (a)(2) to Credit Union Organizations, it shall be accomplished through a license from the appropriate member of the PMI Group of Companies to a member of the CUNA
Mutual Group of Companies designated by CMIC, which in turn will enter into sublicenses to the Credit Union Organizations. This right as to Mortgage Origination Technology referred to in subsection (a)(2) is subject to commercially reasonable
efforts by PMI to obtain any necessary third party consents. The terms of the license and sublicense agreements shall be mutually agreed upon by CMIC and PMI. 
  
 (b) CUNA Mutual Technology. 
  

(1) General. CMIC agrees to make the technology of the CUNA Mutual Group of Companies available to CMG as follows: 
  
 (A) In performing services for CMG pursuant to the Restated CMIC
Services Agreement under Section 4.6, CMIC (or other members of the CUNA Mutual Group of Companies, as appropriate) will use all technology, software, data bases, documentation and systems (collectively referred to in this Section as the
“CMIC Technology”), and all enhancements and replacements developed or otherwise obtained by them and used in performing the same or similar functions for any member of the CUNA Mutual Group of Companies or others. 
  
 (c) CMG Technology. It is anticipated that CMG may either develop or
pay a third party to develop technology, software, data bases, documentation and systems (collectively referred to in this Section as the “CMG Technology”) to be used to perform the other services referred to in subsection
(a)(1)(A)(ii). The parties understand that many issues, such as itemization of desired functions, design specifications, vendor selection, cost factors and timetables will have to be addressed and resolved by management of CMG to determine whether
to authorize the development of the CMG Technology. 
  
 CMG
Technology developed under this subsection shall be designed so that it will be able to interface with the systems used by CMIC, if feasible. 
  

 12 

 If the CMG Technology necessary to perform all of the other services under subsection (a)(1)(A)(ii) is
not developed, and all or part of the system provided by PMI under that subsection continues to be used in whole or in part, either by PMI or CMG, PMI shall be compensated for the fair value of such use. 
  
 PMI and CMIC will cause CMG to make any CMG Technology (including the
source code) and all enhancements developed during the term of this Agreement available to both PMI and CMIC through license agreements for no fee during the term of this Agreement, and thereafter will continue such licenses, if requested, for no
fee with respect to those items that PMI and CMIC, respectively, were entitled to use on the date of termination of this Agreement. The license agreement will provide that during the term of this Agreement, PMI will have the right to receive all
corrections, updates and modifications used by or made available to CMG with respect to the CMG Technology; provided that PMI shall be responsible for all costs of implementing such corrections, updates or modifications, including costs incurred in
making necessary program changes. After the term of this Agreement, CMG shall have no obligation to provide PMI with any corrections, updates or modifications or any maintenance or support whatsoever with respect to the CMG Technology. 

 
 (d) Terms and Conditions. Except as otherwise expressly specified
above, the terms and conditions of the licenses and arrangements referred to in this Section shall be set forth on the form of agreement attached as Exhibit F, and the charges therefor shall be at the fair value for such items. All licenses from PMI
will provide that PMI may cancel the license if (i) CMG makes the licensed technology available to a competitor of PMI; or (ii) a competitor of PMI through a joint venture or service arrangement with CMG is in a position to gain financially from the
use by CMG of the technology or otherwise gain access to the technology; or (iii) if CMG uses the technology other than in connection with the Mortgage Insurance Program or any mortgage guaranty insurance program it pursues as a successor to the
Mortgage Insurance Program operated under this Agreement. 
  
 For purposes of this Agreement, “fair value” shall mean the amount then charged to third parties for the services provided or the right to use such technology. If there are no third party arrangements and the parties are not able
to agree upon fair value, the matter shall be resolved by commercial arbitration in accordance with the rules of the American Arbitration Association. Any such arbitration shall be final and binding, with each party bearing its own costs and the
costs of the arbitrators being borne equally. 
  
 Each party
warrants and represents that subject to obtaining any third party consents identified above, it has and will continue to have the right to use its currently existing technology in the manner specified above and to grant the licenses and otherwise
enter into the agreements called for by this Section with respect to that technology. 
  
 (e) Survival. The warranties, representations, covenants and agreements contained in this Section shall survive any termination of this Agreement. 
  

 13 

 4.10 Restriction on Sale. Neither party may sell, transfer or otherwise dispose of any of
its shares of stock in CMG or any interest therein without the prior written consent of the other party. Neither party may pledge or assign its stock in CMG as collateral for a loan or otherwise without the prior written consent of the other party.
Any such purported action shall be void. Upon seeking the consent to a transaction subject to this Section, the party seeking consent shall provide such information regarding the proposed transferee, the terms of the transaction and such other
matters as may reasonably be requested by the other party. The granting of any such consent may be conditioned upon the transferee expressly agreeing to be bound by the terms of this Agreement. This Section shall not apply to an assignment by a
party to a member of its respective Group of Companies. 
  
 4.11 Use of Names. All lists of Credit Union Organizations and credit union members (including the identity of any person listed thereon) used by CMIC or CMG in the solicitation of customers and potential customers
(collectively “Customer Information”) for CMG shall remain the exclusive property of CMIC, and neither CMG nor PMI shall have any right to use those lists except as permitted in writing by CMIC. 
  
 All lists of individuals inquiring about coverage, policyholders and
certificate holders obtained by CMG (which lists and personal information contained therein shall also be considered Customer Information for purposes of the remainder of this Section 4.11 only) shall be the property of CMG. Subject to any
regulatory restrictions and the terms of Section 4.5(a) and (c), CMIC and other members of the CUNA Mutual Group may use those lists and the identities of the individuals contained thereon for such other purposes as it deems advisable. 

 
 PMI may not use or disclose Customer Information, in any form or medium,
to any affiliated or nonaffiliated person, firm or corporation except as necessary to carry out the terms of the Restated PMI Services Agreement under Section 4.7 or as may be required by law. To the extent that PMI or CMIC contracts with a third
party that obtains Customer Information in order to provide services under the Restated PMI or Restated CMIC Services Agreement, PMI and CMIC agree to obtain contractual confidentiality protections to require the third party to hold Customer
Information in strict confidence and not disclose it to any person unless required by law. PMI and CMIC agree to comply with applicable privacy laws and regulations, including, but not limited to, the Gramm-Leach-Bliley Act, Public Law 106-102
(1999) as set forth in 15 U.S.C.A. §6801, as amended and to comply with applicable changes in such laws and regulations as these occur and become effective. 
  
 PMI and CMIC agree to implement and maintain reasonable and customary security measures to safeguard Customer Information.
Such measures shall include, but not be limited to, requiring employees who will have access to such information to agree to the confidentiality requirements of this Section. 
  
 The confidentiality and privacy obligations of PMI and CMIC set forth in this Section shall survive the termination of this
Agreement. 
  

 14 

 4.12 Access to Records. Each party shall have the right to reasonable access for itself or its
agents during business hours to records maintained by the other party and developed and maintained for the purpose of supporting business coming within the scope of this Agreement and complying with any applicable regulatory requirements. In
addition, each party shall have the further right to similar access to all records and information used by the other party in determining the amount of any expense or other amount having an impact on the financial arrangements between the parties,
including but not limited to the derivation of any internal expenses allocated by any party to the Mortgage Insurance Program. The access granted pursuant to this Section shall be for the limited purpose of determining the compliance by that party
with this Agreement and its contractual arrangements with CMG. All information provided shall be subject to the terms of Article VI (confidentiality). 
  
 4.13 Trademarks and Advertising. Neither party may use the name, trademark, service mark, logo or identification of the other party without that
party’s prior written consent. CMG shall be entitled to use the name, trademark, service mark, logo and identification (the “Marks”) of either party to this Agreement in a manner that accurately describes that party’s
relationship to CMG and in any other manner approved by that party. All such usage shall be in approved formats only and shall require prior written consent as to manner and context. No confusingly similar Marks or terms may be used. No property
rights are granted in any Mark beyond the right to use the Mark in accordance with this paragraph. The rights granted to CMG by this paragraph shall terminate upon the termination of this Agreement or upon the failure of CMG after reasonable notice
to comply with the terms of this paragraph. 
  
 CMG may
use all trade names, trademarks and service marks (collectively, “marks”) adopted from a product marketed by one of the parties on a royalty free basis so long as that party continues to be a shareholder in CMG. Thereafter, CMG will
only have such rights as may be agreed upon by that party. All marks developed by CMG or by either party specifically for the Mortgage Insurance Program shall be the exclusive property of CMG. 
  
 The use in connection with the Mortgage Insurance Program of any portion of
any advertising or promotional material developed by either party independently of the Program shall not affect that party’s rights in that portion of the material. Any advertising or promotional material or portion thereof developed by either
party specifically for use in connection with the Program, and all copyrights and other rights therein, shall be owned by CMIC. 
  
 ARTICLE V. Put and Call Options. 
  
 5.1 Put and Call Options. Subject to the terms of this Article, PMI shall have the option to require CMIC to purchase all but not less than all of
PMFs shares of stock in CMG (the “put option”), and CMIC shall have the right to require PMI to sell all but not less than all of PMI’s shares of stock in CMG to CMIC (the “call option”). 
  

 15 

 5.2 Exercise of Options. 
  
 (a) General. Except as provided in Sections 5.3 (performance standards), 5.4 (breach; fraud), 5.5 (additional
exercise rights of CMIC), and 5.6 (additional exercise rights of PMI), neither the put option nor the call option may be exercised for a period of twenty-one (21) years from the date of the Original Agreement (i.e., September 8, 2015). After the end
of that period, the put and call options may be exercised at any time. 
  
 (b) Manner of Exercise. Options under this Article may only be exercised by written notice to the other party and notice may only be given after the right to exercise the option becomes effective.

  
 (c) Closing; Payment Terms. Except as provided
in Sections 5.5 and 5.6, the closing of any purchase shall take place six (6) months after notice of exercise is given and CMIC shall pay the full purchase price in cash. If despite its best efforts CMIC has not arranged financial terms for the
purchase to its satisfaction by the expiration of that period, CMIC may delay the closing for up to an additional six (6) months. If despite its continued best efforts CMIC has still not arranged such financial terms by the end of this additional
six-month period, the purchase price shall be paid as follows: 
  
 (i) if the purchase price is less than twenty-five million dollars ($25,000,000), the entire purchase price shall be paid in cash. 
  
 (ii) if the purchase price is more than twenty-five million dollars ($25,000,000) and less than seventy million dollars ($70,000,000), twenty-five
million dollars ($25,000,000) shall be paid in cash and the balance shall be paid in the form of a two year balloon payment note from CMIC at an interest rate of two points over the prime rate charged by CMG’s principal financial institution,
provided, that the interest rate shall not exceed the maximum allowed by applicable law. Interest shall be payable semi-annually. CMIC shall be allowed to prepay the note without penalty. The note shall be secured by a stock pledge of shares of CMG
stock equal to 110% of the amount of the note, with the value of the shares based upon the purchase price. The note shall be in substantially the form attached as Exhibit G and the stock pledge agreement shall be in substantially the form attached
as Exhibit H. 
  
 (iii) if the purchase price is seventy
million dollars ($70,000,000) or more, the lesser of fifty million dollars ($50,000,000) or 50% of the purchase price shall be paid in cash and the balance shall be paid in the form of a note as described in (ii). 
  
 PMI agrees that CMIC may, as its method of payment, utilize an initial
public offering that includes PMI’s shares of CMG stock. If CMIC pursues this method, PMI agrees to cooperate with reasonable requests of CMIC in any manner that may be necessary or helpful in consummating the offering. The use of an initial
public offering as the method of payment shall not affect the purchase price, which shall in all events be determined pursuant to Section 5.7. 
  

 16 

 (d) Regulatory Approvals. The closing of any purchase shall be conditioned upon the receipt of any
required regulatory approvals. Immediately after an option is exercised, the parties shall proceed to obtain input from the appropriate regulators regarding the approval process and any conditions that may apply. The parties shall use their best
efforts to obtain all necessary approvals. If a required regulatory approval is not obtained due to the use of a note in partial payment of the purchase price, and if the approval will be granted if cash is paid instead of using a note, CMIC agrees
to pay cash. If approval can be obtained for a purchase of part but not all of the shares, the parties shall at the option of PMI close on the partial purchase in accordance with this Section. Until such time as the parties can obtain regulatory
approval for and consummate the purchase of the remaining shares, (i) the parties shall continue to use their best efforts to obtain all necessary approvals for the purchase of the remaining shares; and (ii) PMI shall continue to have all of its
rights as a shareholder under this Agreement. If approval can be obtained if PMI agrees to provide services to CMG for a reasonable period of time on reasonable terms, PMI agrees to do so. If despite any of the above actions any required approval is
still not obtained, the parties shall use their best efforts to agree upon a manner in which to sell CMG or the shares of CMG owned by PMI, including, without limitation, by means of an initial public offering. Any sale of CMG or the use of an
initial public offering shall not affect the amount to be paid to PMI, which in all events shall be the purchase price determined pursuant to Section 5.7. If the parties are not able to come to an agreement on how to proceed, either party may invoke
the mediation provisions of Section 7.1 if it believes that it may be helpful. 
  
 5.3 Performance Standards. Attached as Exhibit I are performance standards for each party. These performance standards will be reviewed and revised if necessary by PMI and CMIC at least once every two (2)
years. These performance standards shall be subject to change at any time by unanimous action of the Management Committee. 
  
 If the performance standards applicable to PMI for a particular period are not met, CMIC will have the right for a period of six (6) months after the end
of that period to give written notice to PMI of the failure, and if the failure is not remedied within six (6) months after notice is given, CMIC will then have the right to exercise its call option. If the performance standards applicable to CMIC
for a particular period are not met, PMI will have the right for a period of six (6) months after the end of that period to give written notice to CMIC of the failure, and if the failure is not remedied within twelve (12) months after notice is
given, PMI will then have the right to exercise its put option. 
  
 The performance standards applicable to each party shall be reviewed at the time each time that a new Business Plan is prepared. 
  
 5.4 Breach; Fraud. Either party will have the immediate right to exercise its option upon written notice if the other party either: (i) materially
breaches this Agreement or any license agreement or service agreement between it and the other party or CMG; or (ii) engages in a material fraud in its dealings with CMG or the other party. 
  

 17 

 With respect to a material breach, this right shall not be exercisable until after the non-breaching
party has given written notice of the breach to the breaching party and the breach has not been cured within sixty (60) days after the notice is given. A party shall be deemed to have cured the breach if the breach cannot be cured within the cure
period and the breaching party commences the remedy and continues to pursue such remedy diligently until the breach is cured. 
  
 With respect to a material fraud, this right shall be exercisable at any time after the fraud is discovered by the other party. 
  
 A failure to meet the performance standards set forth pursuant to Section
5.3 shall not in and of itself be considered to be a breach of this Agreement or constitute fraud. 
  
 5.5 Additional Exercise Rights of CMIC. CMIC will have the immediate right to exercise its call option upon written notice to PMI if any Competitor
of the CUNA Mutual Group of Companies owns or controls more than 15% of the outstanding shares of stock in PMI and continues to own such shares ninety (90) days after CMIC has given written notice to PMI of its objection thereto and such change in
ownership is materially adverse to CMIC’s interests. For purposes of this subsection, a Competitor of the CUNA Mutual Group of Companies shall mean any person or entity that is or controls one of the ten leading producers of an insurance,
mortgage banking or financial product for Credit Union Organizations or credit union members. In addition, CMIC shall have the immediate right to exercise its call option if any person or entity (or any group of persons or entities acting in
concert) directly or indirectly owns or controls more than 50% of the outstanding shares of stock in PMI. 
  
 PMI shall notify CMIC in writing in the event that a change in ownership as described above occurs. CMIC shall then have a period of sixty (60) days in
which to give PMI written notice that it is exercising its call option or CMIC’s option shall be deemed waived as to that matter. If PMI shall fail to notify CMIC of such matter, the option period shall continue until sixty (60) days after PMI
does in fact notify CMIC. Closing shall take place within the time period specified in Section 5.2(c). 
  
 If the parties are not in agreement as to whether the change in ownership involving a Competitor is materially adverse to CMIC’s interests, the
matter shall be resolved in final and binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association. In any arbitration, it shall be presumed that the matter is materially adverse to CMIC’s
interests and PMI shall have the burden of establishing by a preponderance of the evidence that it is not. 
  
 5.6 Additional Exercise Rights of PMI. PMI will have the immediate right to exercise its put option upon written notice to CMIC if CUNA Mutual
demutualizes and any Competitor of the PMI Group of Companies owns or controls more than 15% of the outstanding shares of stock in CMIC or CUNA Mutual and continues to own such shares ninety (90) days after PMI has given written notice to CMIC of
its objection thereto and such change in ownership is materially adverse to PMI’s interests. For purposes of this Section, a Competitor of the PMI Group of Companies shall mean any person or entity that is or controls one of the seven leading
producers of (i) 

  

 18 

 
mortgage guaranty insurance coverage or (ii) competitive credit enhancement arrangements that are substantially similar in purpose and effect to mortgage
guaranty insurance. In addition, PMI shall have the immediate right to exercise its put option upon written notice to CMIC if CUNA Mutual demutualizes and any person or entity (or any group of persons or entities acting in concert) owns or controls
more than 50% of the outstanding shares of stock in CMIC or CUNA Mutual, other than an entity within the CUNA Mutual Group of Companies. 
  
 CMIC shall notify PMI in writing in the event that a change in ownership as described above occurs. PMI shall then have a period of sixty (60) days in
which to give CMIC written notice that it is exercising its call option or PMI’s option shall be deemed waived as to that matter. If CMIC shall fail to notify PMI of such matter, the option period shall continue until sixty (60) days after CMIC
does in fact notify PMI. Closing shall take place within the time period specified in Section 5.2(c). 
  
 If the parties are not in agreement as to whether the change in ownership involving a Competitor is materially adverse to PMI’s interests, the matter
shall be resolved in final and binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association. In any arbitration, it shall be presumed that the matter is materially adverse to PMI’s interests
and CMIC shall have the burden of establishing by a preponderance of the evidence that it is not. 
  
 5.7 Price. 
  
 (a) General. The price to be paid under this Article shall be the selling shareholder’s proportionate share of the fair market value of
all of the shares of stock. A shareholder’s proportionate share shall be determined by multiplying the fair market value of a share of stock by the total number of shares owned by the selling shareholder. The fair market value of a share of
stock shall be determined by dividing the fair market value of CMG, as of the date of the event triggering the exercise right of a party, by the total number of outstanding shares of stock of CMG as of that date. If CMIC and PMI are unable to
mutually agree upon the fair market value of CMG within thirty (30) days after the expiration of any option period, the parties shall follow the procedure set forth in subsection (c). 
  
 (b) Closing. At the closing, CMIC shall: (i) cause CMG to
repay in full all loans, indebtedness or other obligations of any nature owing by CMG to PMI or any of its Group of Companies; (ii) use its best efforts to cause PMI and its Group of Companies to be released from any guarantees, obligations or
liabilities of any nature then existing in connection with CMG or its business to the extent that they may apply to activities engaged in by CMG after the closing; (iii) agree in writing to indemnify, defend and hold harmless PMI and its Group of
Companies and their respective directors, officers, employees, agents, successors and assigns from all actions, suits, claims, demands, costs or liability of any nature arising in connection with CMG or its business with respect to activities
engaged in by CMG after the closing; (iv) agree in writing to indemnify, defend and hold harmless PMI and its Group of Companies and their respective directors, officers, employees, agents, successors and assigns from all actions, suits, claims,
demands, costs or liability 

  

 19 

 
of any nature arising in connection with CMG or its business with respect to activities engaged in by CMG before the closing except for those matters that
arise out of the gross negligence, fraud or willful misconduct of PMI or a member of its Group of Companies where CMIC was not aware that the activities constituted gross negligence, fraud or misconduct; and (v) provide evidence satisfactory to PMI
that CMIC has obtained all regulatory approvals necessary for such purchase. All documentation regarding the foregoing shall be in form and substance satisfactory to PMI in its reasonable discretion. 
  
 At the closing, PMI shall agree in writing to indemnify, defend and hold
harmless CMG, CMIC, its Group of Companies and their respective directors, officers, employees, agents, successors and assigns from all actions, suits, claims, demands, costs or liability of any nature arising in connection with CMG or its business
with respect to activities engaged in by CMG before the closing but solely with respect to those matters that arise out of the gross negligence, fraud or willful misconduct of PMI or a member of the PMI Group of Companies where CMIC was not aware
that the activities constituted gross negligence, fraud or misconduct. 
  
 (c) Appraisal. 
  
 (1) If the parties are
unable to agree upon the fair market value of CMG as of the Option Date (“Fair Value”), a binding determination of Fair Value shall be made by appraisal in the manner set forth in this subsection. The term “Option Date”
shall mean the date of the notice exercising the option. A party desiring to effect a determination of Fair Value shall give written notice to the other and each party shall appoint a nationally recognized investment banking firm to act as appraiser
within thirty (30) days after the date such notice is delivered. A party shall have selected an appraiser by giving written notice to the other party. The two appraisers who are selected by the parties shall select a nationally recognized
investment-banking firm to act as a third appraiser within fifteen (15) days after selection of the second appraiser. In the event of the failure of a party to appoint an appraiser, or the failure of the two appraisers to appoint a third appraiser
within such periods of time, the appraiser(s) who have not been selected shall be selected upon petition by either party by the then presiding Judge of the San Francisco Superior Court, pursuant to the provisions of California Code of Civil
procedure Section 1280 et seq. Each nationally recognized investment banking firm appointed by a party, by the other investment banking firms or by the Court pursuant to the terms of this subsection shall be experienced in the
valuation of securities. 
  
 (2) If the two
appraisers selected by the parties cannot reach agreement on Fair Value, the Fair Value shall be established by the three appraisers in accordance with the following procedures. The appraiser selected by each of the parties shall state in writing
its determination of Fair Value. The appraisers shall arrange for a simultaneous delivery of such determinations to the third appraiser. The role of the third appraiser shall be to select which of the two proposed determinations most closely
approximates its determination of Fair Value. The third appraiser shall have no right to propose a middle ground or any modification of either of the two proposed determinations. The determination it chooses as most closely approximating its
determination shall constitute the decision of the appraisers and be final and binding upon the parties. 
  

 20 

 (3) In determining Fair Value as of the Option Date, an appraiser shall: (i) value CMG as though
all of the shares of CMG were publicly held on a fully distributed basis on the Option Date; (ii) assume that CMIC and other members of the CUNA Mutual Group of Companies performing services to CMG as of the Option Date will continue to perform
services to CMG, and make available customer lists, trademarks, service marks and other intellectual property to CMG, in the same manner and on the same terms provided in this Agreement and the other agreements between CMG and such persons so that
there is no discount or premium in Fair Value as a result of such special arrangements; (iii) assume that the services provided as of the Option Date to CMG by PMI and other members of the PMI Group of Companies will be provided after such date in
the same manner and other same terms provided in this Agreement and the other agreements between CMG and such persons either by CMG, PMI or another member of the PMI Group of Companies or a qualified third party so that there is no discount in Fair
Value as a result of such persons no longer being affiliated with or performing services for CMG; and (iv) take into account such factors as it deems appropriate, such as price-to-earning ratios and multiples on adjusted book value. Provided,
however, that if PMI’s stock is being purchased as a result of (A) the exercise by CMIC of its call option under Section 5.3 as a result of the failure of PMI to meet its performance standards; or (B) the exercise by CMIC of its call option
under Section 5.4 as a result of the fraud or material breach by PMI, then, in any such event, the appraisers shall not make the assumptions set forth in subsection (iii) and instead the appraiser shall take into account the actual manner and the
actual terms under which CMG will be obtaining those services. 
  
 (4) PMI and CMIC shall each have the right to submit such written and oral comments, observations, information and opinions to the appraisers as they may deem advisable. 
  
 (5) PMI and CMIC shall each bear the cost of its own appraiser and one-half of the cost of any third appraiser.
PMI’s cooperation with CMIC in connection with an initial public offering that includes PMI’s shares of CMG stock shall not affect the price to be paid for such shares by CMIC in accordance with this Section 5.7. 
  
 ARTICLE VI. Confidentiality 
  
 6.1 Confidentiality. 
  
 (a) General. The parties each agree that all confidential or
proprietary information, whether or not marked as such, of a party or any of its respective Group of Companies communicated to and by each other relating to this Agreement shall be deemed to be confidential business information and shall be
maintained in strict confidence to be used only during the term of this Agreement and only for the purposes contemplated by this Agreement. In addition, if such information must be communicated, it shall be communicated within the recipient
party’s organization or to any third party agent, representative or consultant employed by recipient organization only on a “need-to-know” basis for the purpose of accomplishing the purposes of this 

  

 21 

 
Agreement and only upon compliance with subsection (d). No such information shall be disclosed to any other third party by the recipient party without the
prior written consent of the other party unless clearly required by applicable law or regulation, or by court order or the ruling, order or formal determination of a state or federal regulating body. This Article shall apply to all such information,
whether communicated before or after the date of this Agreement. This Article shall apply to any information received under the Mortgage Insurance Program by PMI relating to a credit union or any other Credit Union Organization or their members and
to information regarding each party’s operational, marketing and other business practices and procedures. 
  
 (b) Prevention of Disclosure. Each party agrees to establish and communicate written directives and take all reasonable precautions to
prevent the disclosure to outside parties of information covered by this Agreement, except as may be necessary by reason of applicable federal or state regulatory requirements. 
  
 (c) Application to Records. All data contained in or on master records, customer or complaint files and
ledgers, all lists including inquiries, clients and referrals, and other lists and data generated with respect to activities performed pursuant to this Agreement shall be subject, wherever applicable, at all times to the terms of this Agreement with
respect to use, access, ownership and disposition. Neither party shall disclose, or permit to be disclosed, to third parties in any manner or for any reason, any information from ledgers, lists, files or other records developed, derived, furnished
or required by either party, nor shall any of them make any use of such information other than as permitted in this Agreement unless mutually agreed by CMIC and PMI (and then only in compliance with applicable laws). 
  
 (d) Disclosure to Third Parties. The parties agree that except
as may be required to comply with a request by a governmental authority or as may be necessary to comply with applicable law, no information covered by this Agreement shall be released to any third party agent, representative or consultant without
obtaining from the third party written representations in form and content satisfactory to the other party guaranteeing the confidentiality of such information. 
  
 (e) Exceptions; Survival and Enforcement. The restrictions contained in this Article do not apply to any information
that the receiving party can demonstrate is: (i) generally available to the public; (ii) known to the recipient at the time of disclosure and not acquired directly or indirectly from the other party; or (iii) disclosed to the recipient by a party
having a right to make such disclosure. 
  
 Information provided
by one party to the other shall remain the exclusive property of the party providing the information unless the parties otherwise agree in writing. Nothing contained in this Agreement shall be construed as granting any right to the receiving party,
by license or otherwise, to any of the disclosing party’s confidential information except as expressly provided in writing. 
  
 In the event this Agreement is terminated for any reason, the covenants and agreements contained in this Article shall survive indefinitely thereafter.
Each party agrees that a 

  

 22 

 
violation on its part of any covenant contained in this Article will cause such damage to the other party as will be irreparable and for that reason each
party further agrees that the other party shall be entitled as a matter of right to an injunction from any court of competent jurisdiction, restraining any further violation of such covenants. This right to an injunction shall be cumulative and in
addition to whatever other remedies a party may be entitled to, including, specifically, recovery of liquidated, incidental, special or consequential damages. 
  

Each party expressly acknowledges and agrees that the covenants and agreements applicable to it under this Article shall be construed in such a manner
as to be enforceable under applicable laws if a more limited scope is determined by a court of competent jurisdiction to be required. 
  
 ARTICLE VII. Dispute Resolution 
  
 7.1 Dispute Resolution. In the event of any controversy or dispute relating to this Agreement, either party may refer the matter to the respective
senior management of the parties for resolution by delivery of a written notice to the other party (the “Notice of Dispute”). If the senior management is not able to resolve the matter after a period of thirty (30) days, the parties
shall submit the dispute to non-binding mediation through the offices of Judicial Arbitration Mediation Services (“JAMS”) or its successor in San Francisco, California. The parties shall select a mutually agreeable mediator from the
list of available mediators provided by JAMS; provided, however, that the parties shall select a mediator whose schedule permits a mediation within thirty (30) days after contacting JAMS, unless the parties mutually agree to an extension of time to
have the matter mediated at a later date. If the parties are unable to agree upon an available mediator from the list provided by JAMS whose time schedule permits a mediation within said thirty (30) days, and there is no agreement to extend such
time, the parties shall accept an assignment of a mediator from JAMS who may be disqualified only for bias. The parties shall inform JAMS of the nature of the dispute so that it may recommend a mediator most qualified to help the parties to resolve
the dispute. Notwithstanding anything contained in the foregoing, in the event that a written settlement of the dispute is not made within 120 days following the date of the Notice of Dispute, and the parties have not agreed upon an extension of
such time, then either party may initiate litigation. All costs of the mediation and the mediator charged by JAMS shall be shared equally by the parties. Each party shall bear its own attorneys fees and other costs in connection with the mediation.
The mediation shall not preclude any party from seeking injunctive or other provisional or equitable relief in order to preserve the status quo between the parties pending resolution of the dispute, nor shall the filing of an action seeking
injunctive or other provisional relief be construed as a failure by that party to comply with the mediation requirements of this Agreement. 
  
 ARTICLE VIII. Miscellaneous 
  
 8.1 Delays and Waivers. The failure of any party to insist in any one or more instances upon the performance of any of the terms, covenants or
conditions of this Agreement shall not be construed as a waiver or relinquishment of the future performance of any other term, covenant or 

  

 23 

 
condition, but the defaulting party’s obligation with respect to future performance of any other terms shall continue in full force and effect. The
failure of any party to take any action permitted by this Agreement to be taken by it shall not be construed as a waiver or relinquishment of its right thereafter to take such action. 
  
 8.2 Notices. Any notice required or permitted under this Agreement shall be in writing and shall be given by personal
delivery or certified mail, return receipt requested, addressed as follows: 
  

			
	 If to PMI:
	  	PMI Mortgage Insurance Co.
	 	  	Attn: General Counsel
	 	  	3003 Oak Road
	 	  	Walnut Creek, CA 94597-2098
		
	 	  	and
		
	 	  	PMI Mortgage Insurance Co.
	 	  	Attn: Senior Vice President
	 	  	3003 Oak Road
	 	  	Walnut Creek, CA 94597-2098
		
	 If to CMIC:
	  	CUNA Mutual Investment Corporation
	 	  	Attn: President and Chief Executive Officer
	 	  	5910 Mineral Point Road
	 	  	Madison, WI 53705
		
	 	  	and
		
	 	  	CUNA Mutual Investment Corporation
	 	  	Attn: General Counsel
	 	  	5910 Mineral Point Road
	 	  	Madison, WI 53705

  
 Except as may be
specifically provided otherwise, all notices shall be effective in the case of personal delivery upon receipt and in case in mailing upon deposit in the United States mail. 
  
 8.3 Entire Agreement. This Agreement supersedes any and all agreements previously made between the parties
relating to the subject matter of this Agreement, and there are no understandings or agreements other than those incorporated in this Agreement. This Agreement may not be modified except by an instrument in writing duly executed by both
parties. 
  
 8.4 Parties Bound. This
Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Provided, however, that neither 

  

 24 

 
party may assign any rights or obligations hereunder without the prior written consent of the other party, except that either party may assign this Agreement
and its rights and obligations hereunder to a member of its respective Group of Companies. The assignment of this Agreement shall not release the assignor from any of its duties or obligations under this Agreement. 
  
 8.5 Governing Law. This Agreement shall be governed by, and
construed and interpreted in accordance with, the internal law of the state of domicile of CMG, as it may be changed from time to time. 
  
 8.6 Covenant to Further Assurances. Each party forthwith upon reasonable request from the other parties shall execute and deliver such
documents and take such action as may be reasonably necessary in order to carry out fully the intended purpose of this Agreement. 
  
 8.7 Headings; References. The headings used in this Agreement are for convenience only and shall not constitute a part of this Agreement.
Unless the context clearly requires otherwise, all references to “Sections” and other subdivisions are to the sections and subdivisions of this Agreement. 
  
 8.8 Severability. If any provision of this Agreement shall under any circumstances be deemed invalid or
inoperative, this Agreement shall be construed with the invalid or inoperative provision deleted and the rights and obligations construed and enforced accordingly. 
  
 8.9 Attorneys Fees. In the event that legal or equitable action is instituted to enforce any of the provisions of
this Agreement, the prevailing party in such action shall be entitled to recover all costs of such action, including reasonable attorneys fees. 
  
 8.10 Remedies. Except as otherwise stated, the rights and remedies specified in this Agreement are cumulative and not exclusive of any
rights other rights or remedies that either party may have and may be exercised concurrently therewith. 
  
 8.11 No Violation of Contract. Each party warrants that it has the right and authority to enter into this Agreement and that this Agreement
will not constitute the violation of any contract or agreement to which it may be a party. 
  
 8.12 No Authority to Bind. Except as may be expressly permitted in writing by the other, no party shall have any right, power or authority
to bind the other party, transact any business in the name of the other party or on its behalf, or make any promises or representations on behalf of the other party. 
  
 8.13 Compliance with Law. Each party warrants and represents that the activities to be performed by it
pursuant to this Agreement will be in material compliance with all applicable law, and that any lack of compliance will not have a material effect on CMG’s operations or its ability to continue business. 
  

 25 

 8.14 Consent. In the event the consent or approval of a party is required to any action,
such party shall not unreasonably withhold such consent or approval. 
  
 8.15 Legends. The stock certificates representing the shares of CMG stock owned by CMIC and PMI shall at all times bear the following legend: 
  
 The shares represented by this certificate are subject to certain agreements regarding the management of the corporation and
restrictions on transfer under the terms of an agreement entered into by the shareholders of this corporation. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the above date. 
  

									
	 CUNA Mutual Investment Corporation
	 	 	 	PMI Mortgage Insurance Co.
					
	By:	 	 /s/    Michael Kitchen

	 	 	 	By:	 	 /s/    L. Stephen Smith

  

 26Purchase Contract Agreement

 Exhibit 10.29 
  

 THE PMI GROUP, INC. 
  
 and 
  
 THE BANK OF NEW YORK, 
  
 as Purchase Contract Agent 
  
 PURCHASE CONTRACT AGREEMENT 
  
 Dated as of November 3, 2003 
  

 TABLE OF CONTENTS 
  

					
	ARTICLE 1	  	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION	  	 
			
	 Section 1.01.
	 	Definitions	  	1
	 Section 1.02.
	 	Compliance Certificates and Opinions	  	15
	 Section 1.03.
	 	Form of Documents Delivered to Purchase Contract Agent.	  	16
	 Section 1.04.
	 	Acts of Holders; Record Dates.	  	17
	 Section 1.05.
	 	Notices.	  	18
	 Section 1.06.
	 	Notice to Holders; Waiver.	  	19
	 Section 1.07.
	 	Effect of Headings and Table of Contents.	  	20
	 Section 1.08.
	 	Successors and Assigns.	  	20
	 Section 1.09.
	 	Separability Clause.	  	20
	 Section 1.10.
	 	Benefits Of Agreement.	  	20
	 Section 1.11.
	 	Governing Law.	  	20
	 Section 1.12.
	 	Legal Holidays.	  	20
	 Section 1.13.
	 	Counterparts.	  	21
	 Section 1.14.
	 	Inspection of Agreement.	  	21
	 Section 1.15.
	 	Appointment of Financial Institution as Agent for the Company.	  	21
	 Section 1.16.
	 	No Waiver.	  	21
		
	ARTICLE 2	  	 
	CERTIFICATE FORMS	  	 
			
	 Section 2.01.
	 	Forms of Certificates Generally.	  	22
	 Section 2.02.
	 	Form of Purchase Contract Agent’s Certificate of Authentication.	  	23
		
	ARTICLE 3	  	 
	THE UNITS	  	 
			
	 Section 3.01.
	 	Amount; Form and Denominations.	  	23
	 Section 3.02.
	 	Rights and Obligations Evidenced by the Certificates.	  	23
	 Section 3.03.
	 	Execution, Authentication, Delivery and Dating.	  	24
	 Section 3.04.
	 	Temporary Certificates.	  	25
	 Section 3.05.
	 	Registration; Registration of Transfer and Exchange.	  	26
	 Section 3.06.
	 	Book-Entry Interests.	  	27
	 Section 3.07.
	 	Notices to Holders.	  	28
	 Section 3.08.
	 	Appointment of Successor Depositary.	  	29
	 Section 3.09.
	 	Definitive Certificates.	  	29
	 Section 3.10.
	 	Mutilated, Destroyed, Lost and Stolen Certificates.	  	29
	 Section 3.11.
	 	Persons Deemed Owners.	  	31

  

 i 

					
	 Section 3.12.
	 	Cancellation.	  	32
	 Section 3.13.
	 	Creation of Treasury Units by Substitution of Treasury Securities.	  	32
	 Section 3.14.
	 	Recreation of Corporate Units.	  	34
	 Section 3.15.
	 	Transfer of Collateral upon Occurrence of Termination Event.	  	36
	 Section 3.16.
	 	No Consent to Assumption.	  	37
	ARTICLE 4	  	 
	THE SENIOR NOTES AND APPLICABLE OWNERSHIP INTERESTS
IN THE TREASURY PORTFOLIO	  	 
			
	 Section 4.01.
	 	Interest Payments; Rights to Interest Payments Preserved.	  	37
	 Section 4.02.
	 	Notice and Voting.	  	39
	 Section 4.03.
	 	Special Event Redemption.	  	39
	ARTICLE 5	  	 
	THE PURCHASE CONTRACTS	  	 
			
	 Section 5.01.
	 	Purchase of Shares of Common Stock.	  	41
	 Section 5.02.
	 	Remarketing; Payment of Purchase Price.	  	44
	 Section 5.03.
	 	Issuance of Shares of Common Stock.	  	52
	 Section 5.04.
	 	Certain Adjustments.	  	53
	 Section 5.05.
	 	Notice of Adjustments and Certain Other Events.	  	63
	 Section 5.06.
	 	Termination Event; Notice.	  	64
	 Section 5.07.
	 	Early Settlement.	  	64
	 Section 5.08.
	 	Intentionally Omitted.	  	67
	 Section 5.09.
	 	No Fractional Shares.	  	67
	 Section 5.10.
	 	Charges and Taxes.	  	68
	 Section 5.11.
	 	Contract Adjustment Payments.	  	68
		
	ARTICLE 6	  	 
	REMEDIES	  	 
			
	 Section 6.01.
	 	Unconditional Right of Holders to Receive Contract Adjustment Payments and to Purchase Shares of Common Stock.	  	74
	 Section 6.02.
	 	Restoration of Rights and Remedies.	  	74
	 Section 6.03.
	 	Rights and Remedies Cumulative.	  	74
	 Section 6.04.
	 	Delay or Omission Not Waiver.	  	75
	 Section 6.05.
	 	Undertaking for Costs.	  	75
	 Section 6.06.
	 	Waiver of Stay or Extension Laws.	  	75
		
	ARTICLE 7	  	 
	THE PURCHASE CONTRACT AGENT	  	 
			
	 Section 7.01.
	 	Certain Duties and Responsibilities.	  	76

  

 ii 

					
	 Section 7.02.
	 	Notice of Default.	  	77
	 Section 7.03.
	 	Certain Rights of Purchase Contract Agent.	  	77
	 Section 7.04.
	 	Not Responsible for Recitals or Issuance of Units.	  	79
	 Section 7.05.
	 	May Hold Units.	  	79
	 Section 7.06.
	 	Money Held in Custody.	  	79
	 Section 7.07.
	 	Compensation and Reimbursement.	  	80
	 Section 7.08.
	 	Corporate Purchase Contract Agent Required, Eligibility.	  	80
	 Section 7.09.
	 	Resignation and Removal; Appointment of Successor.	  	81
	 Section 7.10.
	 	Acceptance Of Appointment By Successor.	  	83
	 Section 7.11.
	 	Merger, Conversion, Consolidation Or Succession To Business.	  	83
	 Section 7.12.
	 	Preservation of Information; Communications to Holders.	  	83
	 Section 7.13.
	 	No Obligations of Purchase Contract Agent.	  	84
	 Section 7.14.
	 	Tax Compliance.	  	84
		
	ARTICLE 8	  	 
	SUPPLEMENTAL AGREEMENTS	  	 
			
	 Section 8.01.
	 	Supplemental Agreements Without Consent of Holders.	  	85
	 Section 8.02.
	 	Supplemental Agreements with Consent of Holders.	  	86
	 Section 8.03.
	 	Execution of Supplemental Agreements.	  	87
	 Section 8.04.
	 	Effect of Supplemental Agreements.	  	87
	 Section 8.05.
	 	Reference to Supplemental Agreements.	  	87
		
	ARTICLE 9	  	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	  	 
			
	 Section 9.01.
	 	Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except under Certain Conditions.	  	88
	 Section 9.02.
	 	Rights and Duties of Successor Corporation.	  	88
	 Section 9.03.
	 	Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent.	  	89
		
	ARTICLE 10	  	 
	COVENANTS	  	 
			
	 Section 10.01.
	 	Performance Under Purchase Contracts.	  	89
	 Section 10.02.
	 	Maintenance of Office or Agency.	  	89
	 Section 10.03.
	 	Company to Reserve Common Stock.	  	90
	 Section 10.04.
	 	Covenants as to Common Stock.	  	90
	 Section 10.05.
	 	Statements of Officers of the Company as to Default.	  	91
	 Section 10.06.
	 	ERISA.	  	91
	 Section 10.07.
	 	Tax Treatment	  	91

  

 iii 

 EXHIBITS 
  

	
	 Exhibit A – Form of Corporate Units Certificate

	 Exhibit B – Form of Treasury Units Certificate

	 Exhibit C – Instruction to Purchase Contract Agent

	 Exhibit D – Notice from Purchase Contract Agent to Holders

	 Exhibit E – Notice to Settle by Separate Cash

	 Exhibit F – Notice from Purchase Contract Agent to Collateral Agent

  

 iv 

 PURCHASE CONTRACT AGREEMENT, dated as of November 3, 2003, between THE PMI GROUP, INC., a Delaware
corporation (the “Company”), and The Bank of New York, a New York banking corporation, acting as purchase contract agent for the Holders of Units (as defined herein) from time to time (the “Purchase Contract
Agent”). 
  
 RECITALS 
  
 The Company has duly authorized the execution and delivery of this Agreement
and the Certificates evidencing the Units. 
  
 All things
necessary to make the Purchase Contracts (as defined herein), when the Certificates (as defined herein) are executed by the Company and authenticated, executed on behalf of the Holders and delivered by the Purchase Contract Agent, as provided in
this Agreement, the valid obligations of the Company, and to constitute these presents a valid agreement of the Company, in accordance with its terms, have been done. For and in consideration of the premises and the purchase of the Units by the
Holders thereof, it is mutually agreed as follows: 
  
 ARTICLE 1

 DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION 
  
 Section 1.01. Definitions.
For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 
  
 (a) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular, and nouns and
pronouns of the masculine gender include the feminine and neuter genders; 
  
 (b) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States; 
  
 (c) the words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision; and 
  
 (d) the following terms have the meanings given to them in this Section 1.01(d): 
  
 “Accounting Event” has the meaning set forth in the
Supplemental Indenture. 
  
 “Act” has the
meaning, with respect to any Holder, set forth in Section 1.04(a). 

 “Adjusted Applicable Market Value” has the meaning set forth in Section 5.01(a).

  
 “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 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. 
  
 “Agreement”
means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the applicable provisions hereof. 
  
 “Applicable Market Value” has the meaning set forth in
Section 5.01(a). 
  
 “Applicable Ownership
Interest” shall mean, with respect to a Corporate Unit and the Treasury Portfolio contained in a Corporate Unit, (i) a 2.5% undivided beneficial ownership interest in $1,000 face amount of U.S. treasury securities (or principal or interest
strips thereof) included in such Treasury Portfolio that mature on or prior to November 15, 2006 and (ii) (x) for the scheduled Payment Date on the Senior Notes that occurs on the Purchase Contract Settlement Date, in the case of a Successful
Remarketing prior to the Final Remarketing Date, or (y) for each scheduled Payment Date on the Senior Notes that occurs after the Special Event Redemption Date to and including the Purchase Contract Settlement Date, in the case of a Special Event
Redemption, a 0.01875% undivided beneficial ownership interest in $1,000 face amount of U.S. treasury securities (or principal or interest strips thereof) included in such Treasury Portfolio that mature on or prior to the business day immediately
preceding such scheduled Payment Date. 
  
 “Applicable
Principal Amount” means the aggregate principal amount of the Senior Notes that are components of Corporate Units. 
  
 “Applicants” has the meaning set forth in Section 7.12(b). 
  
 “Bankruptcy Code” means Title 11 of the United States Code, or any other law of the United States that from
time to time provides a uniform system of bankruptcy laws. 
  
 “Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the beneficial owner of such Book-Entry Interest as reflected on the books of the Depositary or on the books of a Person maintaining an
account with such Depositary (directly as a Depositary Participant or as an indirect participant, in each case in accordance with the rules of such Depositary). 
  

 2 

 “Board of Directors” means the board of directors of the Company or a duly authorized
committee of that board. 
  
 “Board Resolution”
means one or more resolutions of the Board of Directors, a copy of which has been certified by the Secretary or an Assistant Secretary of the Company, to have been duly adopted by the Board of Directors and to be in full force and effect on the date
of such certification and delivered to the Purchase Contract Agent. 
  
 “Book-Entry Interest” means a beneficial interest in a Global Certificate, registered in the name of a Depositary or a nominee thereof, ownership and transfers of which shall be maintained and made through book entries by
such Depositary as described in Section 3.06. 
  
 “Business Day” or “business day” means any day other than a Saturday or Sunday or any other day on which banking institutions and trust companies in New York City, New York are permitted or required by
applicable law to remain closed or a day on which the Indenture Trustee or the Collateral Agent is closed for business; provided that for purposes of the second paragraph of Section 1.12 only, the term “Business Day” shall also be
deemed to exclude any day on which DTC is closed. 
  
 “Cash Merger” has the meaning set forth in Section 5.04(b)(ii). 
  
 “Cash Merger Early Settlement” has the meaning set forth in Section 5.04(b)(ii). 
  
 “Cash Merger Early Settlement Date” has the meaning set forth in Section 5.04(b)(ii). 
  
 “Cash Settlement” has the meaning set forth in Section
5.02(b)(i). 
  
 “Certificate” means a Corporate
Units Certificate or a Treasury Units Certificate. 
  
 “Closing Price” has the meaning set forth in Section 5.01(a). 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Collateral” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
  

 3 

 “Collateral Account” has the meaning set forth in Section 1.01(d) of the Pledge
Agreement. 
  
 “Collateral Agent” means The Bank
of New York, as Collateral Agent under the Pledge Agreement until a successor Collateral Agent shall have become such pursuant to the applicable provisions of the Pledge Agreement, and thereafter “Collateral Agent” shall mean the Person
who is then the Collateral Agent thereunder. 
  
 “Collateral Substitution” means (i) with respect to a Corporate Unit, (x) the substitution for the Pledged Senior Note included in such Corporate Unit by Treasury Securities or portions thereof in an aggregate principal
amount at maturity equal to the aggregate principal amount of such Pledged Senior Note, or (y) the substitution for the Pledged Applicable Ownership Interest in the Treasury Portfolio included in such Corporate Unit by Treasury Securities or
portions thereof in an amount equal to such Pledged Applicable Ownership Interest in the Treasury Portfolio, or (ii) with respect to a Treasury Unit, (x) the substitution for the Pledged Treasury Securities included in such Treasury Unit (if the
Applicable Ownership Interest in the Treasury Portfolio has not replaced the Senior Note as a component of the Corporate Unit) by Senior Notes in an aggregate principal amount equal to the aggregate principal amount at stated maturity of the Pledged
Treasury Securities, or (y) the substitution for the Pledged Treasury Securities included in such Treasury Unit (if the Applicable Ownership Interest in the Treasury Portfolio has replaced the Senior Note as a component of the Corporate Unit) by the
appropriate Applicable Ownership Interest in the Treasury Portfolio. 
  
 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 
  
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor shall have become
such pursuant to the applicable provision of this Agreement, and thereafter “Company” shall mean such successor. 
  
 “Constituent Person” has the meaning set forth in Section 5.04(b)(i). 
  
 “Contract Adjustment Payments” means the payments payable by the Company on the Payment Dates in respect of
each Purchase Contract, at a rate per year of 2.875% of the Stated Amount per Purchase Contract. 
  
 “Corporate Trust Office” means the office of the Purchase Contract Agent at which, at any particular time, its corporate trust business
shall be principally administered, which office at the date hereof is located at 101 Barclay Street, Floor 8W, New York, NY 10286. 
  

 4 

 “Corporate Unit” means the collective rights and obligations of a Holder of a Corporate
Units Certificate in respect of the Senior Notes or an appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case may be, subject in each case (except for the appropriate Applicable Ownership Interest specified in clause (ii)
of the definition of such term) to the Pledge thereof, and the related Purchase Contract. 
  
 “Corporate Units Certificate” means a certificate evidencing the rights and obligations of a Holder in respect of the number of Corporate Units specified on such certificate. 
  
 “Coupon Rate” means the percentage rate per annum at which
each Senior Note will bear interest initially. 
  
 “Current Market Price” has the meaning set forth in Section 5.04(a)(viii). 
  
 “Custodial Agent” means The Bank of New York, as Custodial Agent under the Pledge Agreement until a successor Custodial Agent shall have
become such pursuant to the applicable provisions of the Pledge Agreement, and thereafter “Custodial Agent” shall mean the Person who is then the Custodial Agent thereunder. 
  
 “Depositary” means a clearing agency registered under Section 17A of the Exchange Act that is designated to
act as Depositary for the Units as contemplated by Sections 3.06 and 3.08. 
  
 “Depositary Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time the Depositary effects book-entry transfers and pledges of securities
deposited with the Depositary. 
  
 “Dividend Threshold
Amount” has the meaning set forth in Section 5.04(a). 
  
 “DTC” means The Depository Trust Company. 
  
 “Early Settlement” has the meaning set forth in Section 5.07(a). 
  
 “Early Settlement Amount” has the meaning set forth in Section 5.07(b). 
  
 “Early Settlement Date” has the meaning set forth in Section 5.07(b). 
  
 “Early Settlement Rate” has the meaning set forth in Section 5.07(c). 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended. 
  

 5 

 “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor
thereto, in each case as amended from time to time, and the rules and regulations promulgated thereunder. 
  
 “Expiration Date” has the meaning set forth in Section 1.04(e). 
  
 “Expiration Time” has the meaning set forth in Section 5.04(a)(vi). 
  
 “Failed Final Remarketing” has the meaning set forth in
Section 5.02(c)(iii). 
  
 “Failed Initial
Remarketing” has the meaning set forth in Section 5.02(a)(i). 
  
 “Failed Remarketing” shall mean a Failed Initial Remarketing or a Failed Final Remarketing. 
  
 “Final Remarketing” has the meaning set forth in Section 5.02(c)(i). 
  
 “Final Remarketing Date” means the third Business Day immediately preceding the Purchase Contract
Settlement Date. 
  
 “Final Remarketing Fee” has
the meaning set forth in Section 5.02(c)(ii). 
  
 “Fixed
Settlement Rate” means each of the Maximum Share Number and the Minimum Share Number. 
  
 “Global Certificate” means a Certificate that evidences all or part of the Units and is registered in the name of the Depositary or a nominee thereof. 
  
 “Holder” means, with respect to a Unit, the Person in whose
name the Unit evidenced by a Certificate is registered in the Security Register; provided, however, that solely for the purpose of determining whether the Holders of the requisite number of Units have voted on any matter (and not for
any other purpose hereunder), if the Unit remains in the form of one or more Global Certificates and if the Depositary that is the registered holder of such Global Certificate has sent an omnibus proxy assigning voting rights to the Depositary
Participants to whose accounts the Units are credited on the record date, the term “Holder” shall mean such Depositary Participant acting at the direction of the Beneficial Owners. 
  
 “Indenture” means the Indenture, dated as of November 3,
2003, between the Company and the Indenture Trustee (including any provisions of the TIA that are deemed incorporated therein), as supplemented by the Supplemental Indenture pursuant to which the Senior Notes will be issued. 
  
 “Indemnitees” has the meaning set forth in Section 7.07(c).

  

 6 

 “Indenture Trustee” means The Bank of New York, as trustee under the Indenture, or any
successor thereto. 
  
 “Initial Remarketing” has
the meaning set forth in Section 5.02(a)(i). 
  
 “Initial
Remarketing Date” means the third Business Day immediately preceding August 15, 2006. 
  
 “Issuer Order” or “Issuer Request” means a written order or request signed in the name of the Company by (i) either its Chief Executive Officer, its President or one of its Vice
Presidents, and (ii) either its Corporate Secretary or one of its Assistant Corporate Secretaries or its Treasurer or one of its Assistant Treasurers, and delivered to the Purchase Contract Agent. 
  
 “Maximum Share Number” has the meaning set forth in Section
5.01(a)(i). 
  
 “Minimum Share Number” has the
meaning set forth in Section 5.01(a)(iii). 
  
 “non-electing share” has the meaning set forth in Section 5.04(b)(i). 
  
 “NYSE” has the meaning set forth in Section 5.01(a). 
  
 “Officers’ Certificate” means a certificate signed by (i) either the Company’s Chief Executive
Officer, its President or one of its Vice Presidents, and (ii) either the Company’s Corporate Secretary or one of its Assistant Corporate Secretaries or its Treasurer or one of its Assistant Treasurers, and delivered to the Purchase Contract
Agent. 
  
 “Opinion of Counsel” means a written
opinion of counsel, who may be counsel to the Company (and who may be an employee of the Company), and who shall be reasonably acceptable to the Purchase Contract Agent. An Opinion of Counsel may rely on certificates as to matters of fact.

  
 “Outstanding Units” means, with respect to
any Unit and as of the date of determination, all Units evidenced by Certificates theretofore authenticated, executed and delivered under this Agreement, except: 
  
 (i) if a Termination Event has occurred, (x) Corporate Units for which the underlying Senior Notes or
Applicable Ownership Interests in the Treasury Portfolio have been theretofore deposited with the Purchase Contract Agent in trust for the Holders of such Corporate Units and (y) Treasury Units; 
  

 7 

 (ii) Units evidenced by Certificates theretofore cancelled by the Purchase Contract Agent
or delivered to the Purchase Contract Agent for cancellation or deemed cancelled pursuant to the provisions of this Agreement; and 
  
 (iii) Units evidenced by Certificates in exchange for or in lieu of which other Certificates have been authenticated, executed on behalf
of the Holder and delivered pursuant to this Agreement, other than any such Certificate in respect of which there shall have been presented to the Purchase Contract Agent proof satisfactory to it that such Certificate is held by a protected
purchaser in whose hands the Units evidenced by such Certificate are valid obligations of the Company; 
  
 provided, however, that in determining whether the Holders of the requisite number of the Units have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Units owned
by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding Units, except that, in determining whether the Purchase Contract Agent shall be authorized and protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Units that a Responsible Officer of the Purchase Contract Agent actually knows to be so owned shall be so disregarded. Units so owned that have been pledged in good faith may be regarded as
Outstanding Units if the pledgee establishes to the satisfaction of the Purchase Contract Agent the pledgee’s right so to act with respect to such Units and that the pledgee is not the Company or any Affiliate of the Company. 
  
 “Payment Date” means each February 15, May 15, August 15 and
November 15 of each year, commencing February 15, 2004. 
  
 “Permitted Investments” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
  
 “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint-stock
company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof or any other entity of whatever nature. 
  
 “Plan” means an employee benefit plan that is subject to ERISA, a plan or individual retirement account
that is subject to Section 4975 of the Code or any entity whose assets are considered assets of any such plan. 
  
 “Pledge” means the pledge under the Pledge Agreement of the Senior Notes, the Treasury Securities or the appropriate Applicable Ownership
Interest (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, in each case constituting a part of the Units (it being 
  

 8 

 understood that the appropriate Applicable Ownership Interest (as specified in clause (ii) of the definition of such
term) in the Treasury Portfolio shall not be subject to the Pledge). 
  
 “Pledge Agreement” means the Pledge Agreement, dated as of November 3, 2003, among the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract Agent, on its own behalf and
as attorney-in-fact for the Holders from time to time of the Units, as amended from time to time. 
  
 “Pledged Applicable Ownership Interests” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
  
 “Pledged Senior Notes” has the meaning set forth in Section
1.01(d) of the Pledge Agreement. 
  
 “Pledged Treasury
Securities” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
  
 “Predecessor Certificate” means a Predecessor Corporate Units Certificate or a Predecessor Treasury Units Certificate. 
  
 “Predecessor Corporate Units Certificate” of any particular Corporate Units Certificate means every
previous Corporate Units Certificate evidencing all or a portion of the rights and obligations of the Company and the Holder under the Corporate Units evidenced thereby; and, for the purposes of this definition, any Corporate Units Certificate
authenticated and delivered under Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate Units Certificate shall be deemed to evidence the same rights and obligations of the Company and the Holder as the
mutilated, destroyed, lost or stolen Corporate Units Certificate. 
  
 “Predecessor Treasury Units Certificate” of any particular Treasury Units Certificate means every previous Treasury Units Certificate evidencing all or a portion of the rights and obligations of the Company and the Holder
under the Treasury Units evidenced thereby; and, for the purposes of this definition, any Treasury Units Certificate authenticated and delivered under Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury Units
Certificate shall be deemed to evidence the same rights and obligations of the Company and the Holder as the mutilated, destroyed, lost or stolen Treasury Units Certificate. 
  
 “Primary Treasury Dealer” shall mean a primary U.S. government securities dealer. 
  

 9 

 “Proceeds” has the meaning set forth in Section 1.01(d) of the Pledge Agreement.

  
 “Prospectus” means the prospectus relating to
the delivery of shares or any securities in connection with an Early Settlement pursuant to Section 5.07 or a Cash Merger Early Settlement of Purchase Contracts pursuant to Section 5.04(b)(ii), in the form in which first filed, or transmitted for
filing, with the Securities and Exchange Commission after the effective date of the Registration Statement pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by reference therein as of the date of such Prospectus.

  
 “Purchase Contract” means, with respect to
any Unit, the contract forming a part of such Unit and obligating the Company to (i) sell, and the Holder of such Unit to purchase, shares of Common Stock and (ii) pay the Holder thereof Contract Adjustment Payments, in each case on the terms and
subject to the conditions set forth in Article 5 hereof. 
  
 “Purchase Contract Agent” means the Person named as the “Purchase Contract Agent” in the first paragraph of this Agreement until a successor Purchase Contract Agent shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter “Purchase Contract Agent” shall mean such Person or any subsequent successor who is appointed pursuant to this Agreement. 
  
 “Purchase Contract Settlement Date” means November 15, 2006. 
  
 “Purchase Contract Settlement Fund” has the meaning set
forth in Section 5.03. 
  
 “Purchase Price” has
the meaning set forth in Section 5.01(a). 
  
 “Purchased
Shares” has the meaning set forth in Section 5.04(a)(vi). 
  
 “Put Right” has the meaning set forth in Section 8.05 of the Supplemental Indenture. 
  
 “Quotation Agent” means any Primary Treasury Dealer selected by the Company. 
  
 “Record Date” for any distribution and Contract Adjustment
Payment payable on any Payment Date means, as to any Global Certificate or any other Certificate, the first business day of the calendar month in which the relevant Payment Date falls; provided that the Company may, at its option, select any
other day as the Record Date for any Payment Date so long as such Record Date selected is more than one Business Day but less than sixty Business Days prior to such Payment Date. 
  

 10 

 “Redemption Amount” has the meaning set forth in Section 1.02(e) of the Supplemental
Indenture. 
  
 “Redemption Price” has the meaning
set forth in Section 1.02(e) of the Supplemental Indenture. 
  
 “Reference Dealer” means a dealer engaged in trading of convertible securities. 
  
 “Reference Price” has the meaning set forth in Section 5.01(a)(ii). 
  
 “Registration Statement” means a registration statement under the Securities Act prepared by the Company
covering, inter alia, the delivery by the Company of any securities in connection with an Early Settlement on the Early Settlement Date or a Cash Merger Early Settlement of Purchase Contracts on the Cash Merger Early Settlement Date under
Section 5.04(b)(ii), including all exhibits thereto and the documents incorporated by reference in the prospectus contained in such registration statement, and any post-effective amendments thereto. 
  
 “Remarketing” means the remarketing of the Senior Notes by
the Remarketing Agent pursuant to the Remarketing Agreement. 
  
 “Remarketing Agent” has the meaning set forth in the Remarketing Agreement. 
  
 “Remarketing Agreement” means the Remarketing Agreement, dated as of November 3, 2003 among the Company, Banc of America Securities LLC
and the Purchase Contract Agent, as amended from time to time. 
  
 “Remarketing Date” means the Initial Remarketing Date or the Final Remarketing Date. 
  
 “Remarketing Fee” has the meaning set forth in Section 5.02(a)(i). 
  
 “Remarketing Per Senior Note Price” means the Treasury Portfolio Purchase Price divided by the number of
Senior Notes held as components of Corporate Units. 
  
 “Reorganization Event” has the meaning set forth in Section 5.04(b)(i). 
  
 “Reset Rate” has the meaning set forth in Section 1.02(e) of the Supplemental Indenture. 
  
 “Responsible Officer” shall mean, when used with respect to
the Purchase Contact Agent, any officer within the corporate trust department of the 
  

 11 

 Purchase Contract Agent, including any vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Purchase Contract Agent 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 Purchase Contract Agreement. 
  
 “Securities Act” means the Securities Act of 1933 and any
statute successor thereto, in each case as amended from time to time, and the rules and regulations promulgated thereunder. 
  
 “Securities Intermediary” means The Bank of New York, as Securities Intermediary under the Pledge Agreement until a successor Securities
Intermediary shall have become such pursuant to the applicable provisions of the Pledge Agreement, and thereafter “Securities Intermediary” shall mean such successor or any subsequent successor who is appointed pursuant to the Pledge
Agreement. 
  
 “Security Register” and
“Security Registrar” have the respective meanings set forth in Section 3.05. 
  
 “Senior Indebtedness” means indebtedness of any kind of the Company unless the instrument under which such indebtedness is incurred expressly provides that it is on a parity in right of payment with
or subordinate in right of payment to the Contract Adjustment Payments. 
  
 “Senior Notes” means the series of notes designated the senior notes due November 15, 2008 to be issued by the Company under the Indenture. 
  
 “Separate Senior Notes” means Senior Notes that are no longer a component of Corporate Units. 

 
 “Separate Senior Notes Purchase Price” means the amount
in cash equal to the product of the Remarketing Per Senior Note Price multiplied by the number of Separate Senior Notes remarketed in the Initial Remarketing. 
  

“Settlement Rate” has the meaning set forth in Section 5.01(a). 
  
 “Special Event” has the meaning set forth in Section 1.02(e) of the Supplemental Indenture. 
  
 “Special Event Redemption” means the redemption of the
Senior Notes pursuant to the Indenture following the occurrence of a Special Event. 
  

 12 

 “Special Event Redemption Date” means the date upon which a Special Event Redemption is
scheduled to occur pursuant to the Indenture. 
  
 “Stated
Amount” means $25.00. 
  
 “Successful Final
Remarketing” has the meaning set forth in Section 5.02(c)(ii). 
  
 “Successful Initial Remarketing” has the meaning set forth in Section 5.02(a)(i). 
  
 “Successful Remarketing” means a Successful Initial Remarketing or a Successful Final Remarketing. 
  
 “Supplemental Indenture” means the Supplemental Indenture
No. 1 dated as of the date hereof between the Company and the Indenture Trustee. 
  
 “Tax Event” has the meaning set forth in Section 1.02(e) of the Supplemental Indenture. 
  
 “Termination Date” means the date, if any, on which a Termination Event occurs. 
  
 “Termination Event” means the occurrence of any of the
following events: 
  
 (i) at any time on or prior
to the Purchase Contract Settlement Date, a judgment, decree or court order shall have been entered granting relief under the Bankruptcy Code, adjudicating the Company to be insolvent, or approving as properly filed a petition seeking reorganization
or liquidation of the Company or any other similar applicable Federal or state law and if such judgment, decree or order shall have been entered more than 60 days prior to the Purchase Contract Settlement Date, such decree or order shall have
continued undischarged and unstayed for a period of 60 days; 
  
 (ii) at any time on or prior to the Purchase Contract Settlement Date, a judgment, decree or court order for the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of the
Company or of its property, or for the termination or liquidation of its affairs, shall have been entered and if such judgment, decree or order shall have been entered more than 60 days prior to the Purchase Contract Settlement Date, such judgment,
decree or order shall have continued undischarged and unstayed for a period of 60 days; or 
  

 13 

 (iii) at any time on or prior to the Purchase Contract Settlement Date, the Company shall
file a petition for relief under the Bankruptcy Code, or shall consent to the filing of a bankruptcy proceeding against it, or shall file a petition or answer or consent seeking reorganization or liquidation under the Bankruptcy Code or any other
similar applicable Federal or State law, or shall consent to the filing of any such petition, or shall consent to the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of it or of its property, or shall make
an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due. 
  
 “Threshold Appreciation Price” has the meaning set forth in Section 5.01(a). 
  
 “TIA” means the Trust Indenture Act of 1939, as amended from
time to time, or any successor legislation. 
  
 “Trading
Day” has the meaning set forth in Section 5.01(a). 
  
 “Treasury Portfolio” means a portfolio of (1) U.S. treasury securities (or principal or interest strips thereof) that mature on or prior to November 15, 2006 in an aggregate amount at maturity equal to the Applicable
Principal Amount, and (2) (x) in the case of a Successful Remarketing prior to the Final Remarketing Date, for the scheduled Payment Date on the Senior Notes that occurs on the Purchase Contract Settlement Date, U.S. treasury securities (or
principal or interest strips thereof) that mature on or prior to November 15, 2006 in an aggregate amount at maturity equal to the aggregate interest payment (assuming no reset of the interest rate) that would have been due on the Purchase Contract
Settlement Date on the Applicable Principal Amount, and (y) in the case of a Special Event Redemption, for each scheduled Payment Date that occurs after the Special Event Redemption Date to and including the Purchase Contract Settlement Date, U.S.
treasury securities (or principal or interest strips thereof) that mature on or prior to the Business Day immediately preceding such scheduled Payment Date in an aggregate amount at maturity equal to the aggregate interest payment (assuming no reset
of the interest rate) that would have been due on such scheduled Payment Date on the Applicable Principal Amount. 
  
 “Treasury Portfolio Purchase Price” means the lowest aggregate ask-side price quoted by a Primary Treasury Dealer to the Quotation Agent
between 9:00 a.m. and 11:00 a.m. (New York City time) (i) in the case of a Special Event Redemption, on the third Business Day immediately preceding the Special Event Redemption Date for the purchase of the applicable Treasury Portfolio for
settlement on the Special Event Redemption Date, and (ii) in the case of any Successful Remarketing prior to the Final Remarketing Date, on the date of such Successful Remarketing for the purchase of the applicable Treasury Portfolio for settlement
on the third Business Day immediately following the date of such Successful Remarketing. 
  

 14 

 “Treasury Securities” means zero-coupon U.S. treasury securities that mature on November
15, 2006 (CUSIP No. 912820GQ4). 
  
 “Treasury
Unit” means, following the substitution of Treasury Securities for Pledged Senior Notes or the Pledged Applicable Ownership Interest in the Treasury Portfolio as collateral to secure a Holder’s obligations under the Purchase Contract,
the collective rights and obligations of a Holder of a Treasury Units Certificate in respect of such Treasury Securities, subject to the Pledge thereof, and the related Purchase Contract. 
  
 “Treasury Units Certificate” means a certificate evidencing the rights and obligations of a Holder in
respect of the number of Treasury Units specified on such certificate. 
  
 “Underwriters” means the underwriters identified in Schedule A to the Underwriting Agreement. 
  
 “Underwriting Agreement” means the Underwriting Agreement, dated October 28, 2003, among the Company and the Underwriters, relating to
the issuance of Corporate Units by the Company. 
  
 “Unit” means a Corporate Unit or a Treasury Unit, as the case may be. 
  
 “Vice President” means any vice president, whether or not designated by a number or a word or words added before or after the title
“Vice President.” 
  
 Section 1.02. Compliance
Certificates and Opinions. Except as otherwise expressly provided by this Agreement, upon any application or request by the Company to the Purchase Contract Agent to take any action in accordance with any provision of this Agreement, the Company
shall furnish to the Purchase Contract Agent an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Agreement relating to the proposed action have been complied with and, if reasonably requested by the
Purchase Contract Agent, an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of
such documents is specifically required by any provision of this Agreement relating to such particular application or request, no additional certificate or opinion need be furnished. 
  

 15 

 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this
Agreement (other than the Officers’ Certificate provided for in Section 10.05) shall include: 
  
 (i) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein
relating thereto; 
  
 (ii) a brief statement as
to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (iii) a statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to
enable such individual to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (iv) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 
  
 Section 1.03. Form of Documents Delivered to Purchase Contract Agent.

  
 In any case where several matters are required to be
certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which its certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate
or opinion of, or representations by, an officer or officers of the Company unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

  
 Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or other instruments under this Agreement, they may, but need not, be consolidated and form one instrument. 
  

 16 

 Section 1.04. Acts of Holders; Record Dates.  
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement 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 Purchase Contract Agent and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the 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 Agreement and (subject to Section 7.01) conclusive in favor of the Purchase Contract Agent 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 in any manner that the Purchase Contract Agent deems sufficient. 
  
 (c) The ownership of Units shall be proved by the Security Register. 
  
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Unit shall bind every future Holder of the
same Unit and the Holder of every Certificate evidencing such Unit 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 Purchase Contract Agent
or the Company in reliance thereon, whether or not notation of such action is made upon such Certificate. 
  
 (e) The Company may set any date as a record date for the purpose of determining the Holders of Outstanding Units entitled to give, make or take any
request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Agreement to be given, made or taken by Holders of Units. If any record date is set pursuant to this paragraph, the Holders of the
Outstanding Corporate Units and the Outstanding Treasury Units, as the case may be, on such record date, and no other Holders, shall be entitled to take the relevant action with respect to the Corporate Units or the Treasury Units, as the case may
be, whether or not such Holders remain Holders after such record date; provided that no such action shall be effective hereunder unless taken prior to or on the applicable Expiration Date by Holders of the requisite number of Outstanding
Units on such record date. Nothing contained in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record
date previously set shall automatically and with no action by any Person be cancelled and be of no effect), and nothing contained in this paragraph shall be 
  

 17 

 construed to render ineffective any action taken by Holders of the requisite number of Outstanding Units on the date such
action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Purchase
Contract Agent in writing and to each Holder of Units in the manner set forth in Section 1.06. 
  
 With respect to any record date set pursuant to this Section 1.04(e), the Company may designate any date as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the proposed new Expiration Date is given to the Purchase Contract Agent in writing, and to each Holder of Units in the manner set forth in Section 1.06, prior to or
on the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section, the Company shall be deemed to have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date. 
  
 Section 1.05. Notices. 
  
 Any notice or communication is duly given if in writing and delivered in
Person or mailed by first-class mail (registered or certified, return receipt requested), telecopier (with receipt confirmed) or overnight air courier guaranteeing next day delivery, to the others’ address; provided that notice shall be
deemed given to the Purchase Contract Agent only upon receipt thereof: 
  
 If to
the Purchase Contract Agent: 
  
 The Bank of New York 

101 Barclay Street, Floor 8W 
 New York, NY
10286 
 Attention: Corporate Trust Administration 
 Fax: 212-815-5707 
  
 If to the Company:

  
 The PMI Group, Inc. 
 3003 Oak Road 
 Walnut Creek, California 94597

 Telecopier No.: 925-658-6175 
 Attention: General Counsel 
  

 18 

 If to the Collateral Agent: 
  
 The Bank of New York 
 101 Barclay Street,
Floor 8W 
 New York, NY 10286 
 Attention: Corporate Trust Administration 
 Fax: 212-815-5707 
  
 If to the Indenture Trustee: 
  
 The Bank of New York 
 101 Barclay Street,
Floor 8W 
 New York, NY 10286 
 Attention: Corporate Trust Administration 
 Fax: 212-815-5707 
  
 The Purchase Contract Agent shall send to the Indenture Trustee at the telecopier number set forth above a copy of any
notices in the form of Exhibits C, D, E or F it sends or receives. 
  
 Section 1.06. Notice to Holders; Waiver.  
  
 Where this Agreement provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such
event, at its address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure
to mail such notice, nor any defect in any notice so mailed to any particular Holder, shall affect the sufficiency of such notice with respect to other Holders. Where this Agreement provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Purchase Contract Agent, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon such waiver. 
  
 In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made with the approval of the
Purchase Contract Agent shall constitute a sufficient notification for every purpose hereunder. 
  

 19 

 Section 1.07. Effect of Headings and Table of Contents.  
  
 The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. 
  
 Section 1.08. Successors and Assigns.  
  
 All
covenants and agreements in this Agreement by the Company and the Purchase Contract Agent shall bind their respective successors and assigns, whether so expressed or not. 
  
 Section 1.09. Separability Clause.  
  
 In case any provision in this Agreement or in the Units shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof and thereof shall not in any way be affected or impaired thereby. 
  
 Section 1.10. Benefits Of Agreement.  
  
 Nothing contained in this Agreement or in the Units, express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder and, to the extent provided hereby, the Holders, any benefits or any legal or equitable right, remedy or claim under this Agreement. The Holders from time to time shall be beneficiaries of this Agreement and shall be bound by all of the
terms and conditions hereof and of the Units evidenced by their Certificates by their acceptance of delivery of such Certificates. 
  
 Section 1.11. Governing Law.  
  
 This Agreement and the Units shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 Section 1.12. Legal Holidays.  
  
 In any case where any Payment Date shall not be a Business Day
(notwithstanding any other provision of this Agreement or the Units), Contract Adjustment Payments or other distributions shall not be paid on such date, but Contract Adjustment Payments or such other distributions shall be paid on the next
succeeding Business Day with the same force and effect as if made on such Payment Date, provided that if such Business Day is in the next succeeding calendar year, then payment of the Contract Adjustment Payments or other distributions will
be made on the Business Day immediately preceding such Business Day. No interest shall accrue or be payable by the Company or to any Holder for the period from and after any such Payment Date. 
  
 In any case where the Purchase Contract Settlement Date or any Early
Settlement Date or Cash Merger Early Settlement Date shall not be a Business 
  

 20 

 Day (notwithstanding any other provision of this Agreement or the Units), Purchase Contracts shall not be performed and
Early Settlement and Cash Merger Early Settlement shall not be effected on such date, but Purchase Contracts shall be performed or Early Settlement or Cash Merger Early Settlement shall be effected, as applicable, on the next succeeding Business Day
with the same force and effect as if made on such Purchase Contract Settlement Date, Early Settlement Date or Cash Merger Early Settlement Date, as applicable. 
  

Section 1.13. Counterparts.  
  
 This Agreement may be executed in any number of counterparts by the parties hereto on separate counterparts, each of which, when so executed and
delivered, shall be deemed an original, but all such counterparts shall together constitute one and the same instrument. 
  
 Section 1.14. Inspection of Agreement.  
  
 A copy of this Agreement shall be available at all reasonable times during normal business hours at the Corporate Trust Office for inspection by any
Holder or Beneficial Owner. 
  
 Section 1.15. Appointment of
Financial Institution as Agent for the Company.  
  
 The
Company may appoint a financial institution (which may be the Collateral Agent) to act as its agent in performing its obligations and in accepting and enforcing performance of the obligations of the Purchase Contract Agent and the Holders, under
this Agreement and the Purchase Contracts, by giving notice of such appointment in the manner provided in Section 1.05 hereof. Any such appointment shall not relieve the Company in any way from its obligations hereunder. 
  
 Section 1.16. No Waiver.  
  
 No failure on the part of the Company, the Purchase Contract Agent, the
Collateral Agent, the Securities Intermediary or any of their respective agents to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise by the Company, the Collateral Agent, the Securities Intermediary or any of their respective agents of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right,
power or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law. 
  

 21 

 ARTICLE 2 
 CERTIFICATE FORMS 
  
 Section 2.01. Forms Of Certificates Generally. 
  
 The Certificates (including the form of Purchase Contract forming part of each Unit evidenced thereby) shall be in substantially the form set forth in Exhibit A hereto (in the case of Certificates evidencing Corporate
Units) or Exhibit B hereto (in the case of Certificates evidencing Treasury Units), with such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as may be
required by the rules of any securities exchange on which the Units are listed or any depositary therefor, or as may, consistently herewith, be determined by the officers of the Company executing such Certificates, as evidenced by their execution of
the Certificates. 
  
 The definitive Certificates shall be
produced in any manner as determined by the officers of the Company executing the Units evidenced by such Certificates, consistent with the provisions of this Agreement, as evidenced by their execution thereof. 
  
 Every Global Certificate authenticated, executed on behalf of the Holders and
delivered hereunder shall bear a legend in substantially the following form: 
  
 THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW
YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY

  

 22 

 CERTIFICATE ISSUED IS REQUESTED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 
  
 Section 2.02. Form of Purchase Contract Agent’s Certificate of Authentication. 
  
 The form of the Purchase Contract Agent’s certificate of authentication of the Units shall be in substantially the form
set forth on the form of the applicable Certificates. 
  
 ARTICLE 3

 THE UNITS 
  
 Section 3.01. Amount; Form and Denominations. 
  
 The aggregate number of Units evidenced by Certificates authenticated, executed on behalf of the Holders and delivered hereunder is limited to 12,000,000
(or 13,800,000 if the over-allotment option granted to the Underwriters pursuant to the Underwriting Agreement is exercised in full), except for Certificates authenticated, executed and delivered upon registration of transfer of, in exchange for, or
in lieu of, other Certificates pursuant to Section 3.04, Section 3.05, Section 3.10, Section 3.13, Section 3.14 or Section 8.05. 
  
 The Certificates shall be issuable only in registered form and only in denominations of a single Corporate Unit or Treasury Unit and any integral multiple
thereof. 
  
 Section 3.02. Rights and Obligations Evidenced by
the Certificates. 
  
 Each Corporate Units Certificate shall
evidence the number of Corporate Units specified therein, with each such Corporate Unit representing (1) the ownership by the Holder thereof of a beneficial interest in a Senior Note or the Applicable Ownership Interest in the Treasury Portfolio, as
the case may be, subject to the Pledge of such Senior Note or the Applicable Ownership Interest (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, by such Holder pursuant to the Pledge
Agreement, and (2) the rights and obligations of the Holder thereof and the Company under one Purchase 
  

 23 

 Contract. The Purchase Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of, the Holder of each
Corporate Unit, to pledge, pursuant to the Pledge Agreement, the Senior Note and the Applicable Ownership Interest (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, if any, forming a part of such Corporate Unit,
to the Collateral Agent for the benefit of the Company, and to grant to the Collateral Agent, for the benefit of the Company, a security interest in the right, title and interest of such Holder in such Senior Note and the Applicable Ownership
Interest (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, if any, to secure the obligation of the Holder under each Purchase Contract to purchase shares of Common Stock. 
  
 Upon the formation of a Treasury Unit pursuant to Section 3.13, each Treasury
Unit Certificate shall evidence the number of Treasury Units specified therein, with each such Treasury Unit representing (1) the ownership by the Holder thereof of a 1/40 undivided beneficial interest in a Treasury Security with a principal amount
at maturity equal to $1,000, subject to the Pledge of such interest by such Holder pursuant to the Pledge Agreement, and (2) the rights and obligations of the Holder thereof and the Company under one Purchase Contract. The Purchase Contract Agent is
hereby authorized, as attorney-in-fact for, and on behalf of, the Holder of each Treasury Unit, to pledge, pursuant to the Pledge Agreement, such Holder’s interest in the Treasury Security forming a part of such Treasury Unit to the Collateral
Agent, for the benefit of the Company, and to grant to the Collateral Agent, for the benefit of the Company, a security interest in the right, title and interest of such Holder in such Treasury Security to secure the obligation of the Holder under
each Purchase Contract to purchase shares of Common Stock. 
  
 Prior to the purchase of shares of Common Stock under each Purchase Contract, such Purchase Contract shall not entitle the Holder of a Unit to any of the rights of a holder of shares of Common Stock, including, without limitation, the right
to vote or receive any dividends or other payments or to consent or to receive notice as a shareholder in respect of the meetings of shareholders or for the election of directors of the Company or for any other matter, or any other rights whatsoever
as a shareholder of the Company. 
  
 Section 3.03. Execution,
Authentication, Delivery and Dating. 
  
 Subject to the
provisions of Section 3.13 and Section 3.14 hereof, upon the execution and delivery of this Agreement, and at any time and from time to time thereafter, the Company may deliver Certificates executed by the Company to the Purchase Contract Agent for
authentication, execution on behalf of the Holders and delivery, together with its Issuer Order for authentication of such Certificates, and the Purchase Contract Agent in accordance with such Issuer Order shall authenticate, execute on behalf of
the Holders and deliver such Certificates. 
  

 24 

 The Certificates shall be executed on behalf of the Company by its Chairman of the Board of Directors,
its Chief Executive Officer, its President, its Treasurer or one of its Vice Presidents. The signature of any of these officers on the Certificates may be manual or facsimile. 
  
 Certificates bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the
Company 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 Certificates or did not hold such offices at the date of such Certificates.

  
 No Purchase Contract evidenced by a Certificate shall be valid
until such Certificate has been executed on behalf of the Holder by the manual signature of an authorized officer of the Purchase Contract Agent, as such Holder’s attorney-in-fact. Such signature by an authorized officer of the Purchase
Contract Agent shall be conclusive evidence that the Holder of such Certificate has entered into the Purchase Contracts evidenced by such Certificate. 
  
 Each Certificate shall be dated the date of its authentication. 
  

No Certificate shall be entitled to any benefit under this Agreement or be valid or obligatory for any purpose unless there appears on such Certificate
a certificate of authentication substantially in the form provided for herein executed by an authorized officer of the Purchase Contract Agent by manual signature, and such certificate upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered hereunder. 
  
 Section 3.04. Temporary Certificates. 
  
 Pending the preparation of definitive Certificates, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the Holders, and
deliver, in lieu of such definitive Certificates, temporary Certificates that are in substantially the form set forth in Exhibit A or Exhibit B hereto, as the case may be, with such letters, numbers or other marks of identification or designation
and such legends or endorsements printed, lithographed or engraved thereon as may be required by the rules of any securities exchange on which the Corporate Units or Treasury Units, as the case may be, are listed, or as may, consistently herewith,
be determined by the officers of the Company executing such Certificates, as evidenced by their execution of the Certificates. 
  
 If temporary Certificates are issued, the Company will cause definitive Certificates to be prepared without unreasonable delay. After the preparation of
definitive Certificates, the temporary Certificates shall be exchangeable for 
  

 25 

 definitive Certificates upon surrender of the temporary Certificates at the Corporate Trust Office, at the expense of the
Company and without charge to the Holder. Upon surrender for cancellation of any one or more temporary Certificates, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on
behalf of the Holder, and deliver in exchange therefor, one or more definitive Certificates of like tenor and denominations and evidencing a like number of Units as the temporary Certificate or Certificates so surrendered. Until so exchanged, the
temporary Certificates shall in all respects evidence the same benefits and the same obligations with respect to the Units evidenced thereby as definitive Certificates. 
  
 Section 3.05. Registration; Registration of Transfer and Exchange. 
  
 The Purchase Contract Agent shall keep at the Corporate Trust Office a
register (the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Purchase Contract Agent shall provide for the registration of Certificates and of transfers of Certificates (the Purchase
Contract Agent, in such capacity, the “Security Registrar”). The Security Registrar shall record separately the registration and transfer of the Certificates evidencing Corporate Units and Treasury Units. 
  
 Upon surrender for registration of transfer of any Certificate at the
Corporate Trust Office, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the designated transferee or transferees, and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of any authorized denominations, like tenor, and evidencing a like number of Corporate Units or Treasury Units, as the case may be. 
  
 At the option of the Holder, Certificates may be exchanged for other
Certificates, of any authorized denominations and evidencing a like number of Corporate Units or Treasury Units, as the case may be, upon surrender of the Certificates to be exchanged at the Corporate Trust Office. Whenever any Certificates are so
surrendered for exchange, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the Holder, and deliver the Certificates that the Holder making the exchange is
entitled to receive. 
  
 All Certificates issued upon any
registration of transfer or exchange of a Certificate shall evidence the ownership of the same number of Corporate Units or Treasury Units, as the case may be, and be entitled to the same benefits and subject to the same obligations under this
Agreement as the Corporate Units or Treasury Units, as the case may be, evidenced by the Certificate surrendered upon such registration of transfer or exchange. 
  

 26 

 Every Certificate presented or surrendered for registration of transfer or exchange shall (if so required
by the Purchase Contract Agent) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Purchase Contract Agent duly executed, by the Holder thereof or its attorney duly authorized in
writing. 
  
 No service charge shall be made for any registration
of transfer or exchange of a Certificate, but the Company and the Purchase Contract Agent may require payment from the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration
of transfer or exchange of Certificates, other than any exchanges pursuant to Section 3.04, Section 3.06 and Section 8.05 not involving any transfer. 
  
 Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent
shall not be obligated to authenticate, execute on behalf of the Holder and deliver any Certificate in exchange for any other Certificate presented or surrendered for registration of transfer or for exchange on or after the Business Day immediately
preceding the earliest to occur of any Early Settlement Date with respect to such Certificate, any Cash Merger Early Settlement Date with respect to such Certificate, the Purchase Contract Settlement Date or the Termination Date. In lieu of delivery
of a new Certificate, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer instructions from such Holder, the Purchase Contract Agent shall: 
  
 (i) if the Purchase Contract Settlement Date (including upon
any Cash Settlement) or an Early Settlement Date or a Cash Merger Early Settlement Date with respect to such other Certificate has occurred, deliver the shares of Common Stock issuable in respect of the Purchase Contracts forming a part of the Units
evidenced by such other Certificate; or 
  
 (ii)
if a Termination Event shall have occurred prior to the Purchase Contract Settlement Date, transfer the Senior Notes, the Treasury Securities, or the appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case may be, evidenced
thereby, in each case subject to the applicable conditions and in accordance with the applicable provisions of Section 3.15 and Article 5 hereof. 
  
 Section 3.06. Book-Entry Interests. 
  
 The Certificates, on original issuance, will be issued in the form of one or more fully registered Global Certificates, to be delivered to the Depositary
or its custodian by, or on behalf of, the Company. The Company hereby designates 
  

 27 

 DTC as the initial Depositary. Such Global Certificates shall initially be registered on the books and records of the
Company in the name of Cede & Co., the nominee of the Depositary, and no Beneficial Owner will receive a definitive Certificate representing such Beneficial Owner’s interest in such Global Certificate, except as provided in Section 3.09.
The Purchase Contract Agent shall enter into an agreement with the Depositary if so requested by the Company. Unless and until definitive, fully registered Certificates have been issued to Beneficial Owners pursuant to Section 3.09: 
  
 (i) the provisions of this Section 3.06 shall be in full
force and effect; 
  
 (ii) the Company shall be
entitled to deal with the Depositary for all purposes of this Agreement (including, without limitation, making Contract Adjustment Payments and receiving approvals, votes or consents hereunder) as the Holder of the Units and the sole holder of the
Global Certificates and shall have no obligation to the Beneficial Owners; provided that any Beneficial Owner may directly enforce against the Company, without the involvement of the Depositary or any other Person, its right to receive
definitive Certificates pursuant to Section 3.09; 
  
 (iii) to the extent that the provisions of this Section 3.06 conflict with any other provisions of this Agreement, the provisions of this Section 3.06 shall control; and 
  
 (iv) the rights of the Beneficial Owners shall be exercised only through the Depositary and shall be limited
to those established by law and agreements between such Beneficial Owners and the Depositary or the Depositary Participants; provided that any Beneficial Owner may directly enforce against the Company, without the involvement of the
Depositary or any other Person, its right to receive definitive Certificates pursuant to Section 3.09. 
  
 Transfers of securities evidenced by Global Certificates shall be made through the facilities of the Depositary, and any cancellation of, or increase or decrease in the number of, such securities (including the
creation of Treasury Units and the recreation of Corporate Units pursuant to Section 3.13 and Section 3.14 respectively) shall be accomplished by making appropriate annotations on the Schedule of Increases and Decreases for such Global Certificate.

  
 Section 3.07. Notices to Holders. 
  
 Whenever a notice or other communication to the Holders is required to be
given under this Agreement, the Company or the Company’s agent shall give such notices and communications to the Holders and, with respect to any Units 
  

 28 

 registered in the name of the Depositary or the nominee of the Depositary, the Company or the Company’s agent shall,
except as set forth herein, have no obligations to the Beneficial Owners. 
  
 Section 3.08. Appointment of Successor Depositary. 
  
 If the Depositary elects to discontinue its services as securities depositary with respect to the Units, the Company may, in its sole discretion, appoint a successor Depositary with respect to the Units. 

 
 Section 3.09. Definitive Certificates. 
  
 If: 
  
 (i) the Depositary notifies the Company that it is unwilling or unable to continue its services as
securities depositary with respect to the Units and no successor Depositary has been appointed pursuant to Section 3.08 within 90 days after such notice; or 
  
 (ii) the Depositary ceases to be a “clearing agency” registered under Section 17A of the Exchange Act when the Depositary is
required to be so registered to act as the Depositary and so notifies the Company, and no successor Depositary has been appointed pursuant to Section 3.08 within 90 days after such notice; 
  
 (iii) any event of default has occurred and is continuing
under the Notes or the Purchase Contract Agreement; or 
  
 (iv) the Company determines in its discretion that the Global Certificates shall be exchangeable for definitive Certificates, 
  
 then (x) definitive Certificates shall be prepared by the Company with respect to such Units and delivered to the Purchase Contract Agent and (y) upon surrender of the
Global Certificates representing the Units by the Depositary, accompanied by registration instructions, the Company shall cause definitive Certificates to be delivered to Beneficial Owners in accordance with the instructions of the Depositary. The
Company and the Purchase Contract Agent shall not be liable for any delay in delivery of such instructions and may conclusively rely on and shall be authorized and protected in relying on, such instructions. Each definitive Certificate so delivered
shall evidence Units of the same kind and tenor as the Global Certificate so surrendered in respect thereof. 
  
 Section 3.10. Mutilated, Destroyed, Lost and Stolen Certificates. 
  
 If any mutilated Certificate is surrendered to the Purchase Contract Agent, the Company shall execute and deliver to the
Purchase Contract Agent, and the 
  

 29 

 Purchase Contract Agent shall authenticate, execute on behalf of the Holder, and deliver in exchange therefor, a new
Certificate, evidencing the same number of Corporate Units or Treasury Units, as the case may be, and bearing a Certificate number not contemporaneously outstanding. 
  
 If there shall be delivered to the Company and the Purchase Contract Agent (i) evidence to their satisfaction of the
destruction, loss or theft of any Certificate, and (ii) such security or indemnity as may be required by them to hold each of them and any agent of any of them harmless, then, in the absence of notice to the Company or the Purchase Contract Agent
that such Certificate has been acquired by a protected purchaser, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the Holder, and deliver to the Holder,
in lieu of any such destroyed, lost or stolen Certificate, a new Certificate, evidencing the same number of Corporate Units or Treasury Units, as the case may be, and bearing a Certificate number not contemporaneously outstanding. 
  
 Notwithstanding the foregoing, the Company shall not be obligated to execute
and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to authenticate, execute on behalf of the Holder, and deliver to the Holder, a Certificate on or after the Business Day immediately preceding the
earliest of any Early Settlement Date with respect to such lost or mutilated Certificate, any Cash Merger Early Settlement Date with respect to such lost or mutilated Certificate, the Purchase Contract Settlement Date or the Termination Date. In
lieu of delivery of a new Certificate, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer instructions from such Holder, the Purchase Contract Agent shall: 

 
 (i) if the Purchase Contract Settlement Date or Early
Settlement Date or Cash Merger Early Settlement Date with respect to such lost, stolen, destroyed or mutilated Certificate has occurred, deliver the shares of Common Stock issuable in respect of the Purchase Contracts forming a part of the Units
evidenced by such Certificate; or 
  
 (ii) if a
Cash Settlement with respect to such lost or mutilated Certificate or if a Termination Event shall have occurred prior to the Purchase Contract Settlement Date, transfer the Senior Notes, the Treasury Securities or the appropriate Applicable
Ownership Interest (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, evidenced thereby, in each case subject to the applicable conditions and in accordance with the applicable provisions of
Section 3.15 and Article 5 hereof. 
  

 30 

 Upon the issuance of any new Certificate under this Section, the Company and the Purchase Contract Agent
may require the payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other fees and expenses (including, without limitation, the fees and expenses of the Purchase
Contract Agent) connected therewith. 
  
 Every new Certificate
issued pursuant to this Section in lieu of any destroyed, lost or stolen Certificate shall constitute an original additional contractual obligation of the Company and of the Holder in respect of the Units evidenced thereby, whether or not the
destroyed, lost or stolen Certificate (and the Units evidenced thereby) shall be at any time enforceable by anyone, and shall be entitled to all the benefits and be subject to all the obligations of this Agreement equally and proportionately with
any and all other Certificates delivered hereunder. 
  
 The
provisions of this Section are exclusive and shall preclude, to the extent lawful, all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Certificates. 
  
 Section 3.11. Persons Deemed Owners. 
  
 Prior to due presentment of a Certificate for registration of transfer, the
Company and the Purchase Contract Agent, and any agent of the Company or the Purchase Contract Agent, may treat the Person in whose name such Certificate is registered as the owner of the Units evidenced thereby for purposes of (subject to any
applicable record date) any payment or distribution on the Senior Notes or on the Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio (if any), as applicable, payment of Contract
Adjustment Payments and performance of the Purchase Contracts and for all other purposes whatsoever in connection with such Units, whether or not such payment, distribution, or performance shall be overdue and notwithstanding any notice to the
contrary, and neither the Company nor the Purchase Contract Agent, nor any agent of the Company or the Purchase Contract Agent, shall be affected by notice to the contrary. 
  
 Notwithstanding the foregoing, with respect to any Global Certificate, nothing contained herein shall prevent the Company,
the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent from giving effect to any written certification, proxy or other authorization furnished by the Depositary (or its nominee), as a Holder, with respect to such
Global Certificate, or impair, as between such Depositary and the related Beneficial Owner, the operation of customary practices governing the exercise of rights of the Depositary (or its nominee) as Holder of such Global Certificate. None of the
Company, the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent will have any responsibility or liability for any aspect of the records 
  

 31 

 relating to or payments made on account of beneficial ownership interests of a Global Certificate or maintaining,
supervising or reviewing any records relating to such beneficial ownership interests. 
  
 Section 3.12. Cancellation. 
  
 All Certificates surrendered for delivery of shares of Common Stock on or after the Purchase Contract Settlement Date or upon the transfer of Senior Notes, or for delivery of Senior Notes, the appropriate Applicable Ownership Interest in
the Treasury Portfolio or Treasury Securities, as the case may be, after the occurrence of a Termination Event or pursuant to a Cash Settlement, an Early Settlement or a Cash Merger Early Settlement, or upon the registration of transfer or exchange
of a Unit, or a Collateral Substitution or the recreation of Corporate Units shall, if surrendered to any Person other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent along with appropriate written instructions
regarding the cancellation thereof and, if not already cancelled, shall be promptly cancelled by it. The Company may at any time deliver to the Purchase Contract Agent for cancellation any Certificates previously authenticated, executed and
delivered hereunder that the Company may have acquired in any manner whatsoever, and all Certificates so delivered shall, upon an Issuer Order, be promptly cancelled by the Purchase Contract Agent. No Certificates shall be authenticated, executed on
behalf of the Holder and delivered in lieu of or in exchange for any Certificates cancelled as provided in this Section, except as expressly permitted by this Agreement. All cancelled Certificates held by the Purchase Contract Agent shall be
disposed of in accordance with its customary practices. 
  
 If the
Company or any Affiliate of the Company shall acquire any Certificate, such acquisition shall not operate as a cancellation of such Certificate unless and until such Certificate is delivered to the Purchase Contract Agent cancelled or for
cancellation. 
  
 Section 3.13. Creation of Treasury Units by
Substitution of Treasury Securities. 
  
 Unless the Treasury
Portfolio has replaced the Senior Notes as a component of the Corporate Units, and subject to the conditions set forth in this Agreement, a Holder may, at any time from and after the date of this Agreement and on or prior to 5:00 p.m. (New York City
time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date, effect a Collateral Substitution and separate the Pledged Senior Notes from the related Purchase Contracts in respect of all or a portion of such
Holder’s Corporate Units by substituting for such Pledged Senior Notes, Treasury Securities or portions thereof in an aggregate principal amount at maturity equal to the aggregate principal amount of such Pledged Senior Notes; provided
that Holders may make Collateral Substitutions only in integral multiples of 40 Corporate Units. To effect such substitution, the Holder must: 
  

	 	(1)	deposit with the Securities Intermediary Treasury Securities having an aggregate principal amount at maturity equal to the aggregate principal amount of the Senior Notes comprising
part of all such Corporate Units; and 

  

 32 

	 	(2)	transfer the related Corporate Units to the Purchase Contract Agent accompanied by a notice to the Purchase Contract Agent, substantially in the form of Exhibit C hereto, (i)
stating that the Holder has deposited the relevant amount of Treasury Securities with the Securities Intermediary for credit to the Collateral Account and (ii) instructing the Purchase Contract Agent to instruct the Collateral Agent to release the
Pledged Senior Notes underlying such Corporate Units, whereupon the Purchase Contract Agent shall promptly provide an instruction to such effect to the Collateral Agent, substantially in the form of Exhibit A to the Pledge Agreement.

  
 Upon receipt of the Treasury Securities described in clause (1)
above and the instruction described in clause (2) above, in accordance with the terms of the Pledge Agreement, the Collateral Agent will cause the Securities Intermediary to effect the release of such Pledged Senior Notes from the Pledge and the
transfer of such Senior Notes to the Purchase Contract Agent on behalf of the Holder free and clear of the Company’s security interest therein. Upon receipt of such Senior Notes, the Purchase Contract Agent shall promptly: 
  
 (i) cancel the related Corporate Units; 
  
 (ii) transfer the Senior Notes to the Holder (such Senior
Notes shall be tradeable as a separate security, independent of the resulting Treasury Units); and 
  
 (iii) authenticate, execute on behalf of such Holder and deliver Treasury Units in book-entry form, or if applicable, in the form of a
Treasury Units Certificate executed by the Company in accordance with Section 3.03 evidencing the same number of Purchase Contracts as were evidenced by the cancelled Corporate Units. 
  
 Holders who elect to separate the Senior Notes from the related Purchase Contracts and to substitute Treasury Securities for
such Senior Notes shall be responsible for any fees or expenses (including, without limitation, fees and expenses payable to the Collateral Agent for its services as Collateral Agent) in respect of the substitution, and neither the Company nor the
Purchase Contract Agent shall be responsible for any such fees or expenses. 
  

 33 

 If the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate Units and subject
to the conditions set forth in this Agreement, a Holder may, at any time on or prior to the second Business Day immediately preceding the Purchase Contract Settlement Date, substitute Treasury Securities for the Applicable Ownership Interests in the
Treasury Portfolio included in such Corporate Units, but only in integral multiples of 16,000 Corporate Units. In such an event, the Holder shall transfer Treasury Securities to the Securities Intermediary, and the Purchase Contract Agent shall
instruct the Collateral Agent to release the Pledge of and transfer to the Holder the appropriate Applicable Ownership Interests in the Treasury Portfolio in the manner set forth above. 
  
 In the event a Holder making a Collateral Substitution pursuant to this Section 3.13 fails to effect a book-entry transfer
of the Corporate Units or fails to deliver Corporate Units Certificates to the Purchase Contract Agent after depositing Treasury Securities with the Securities Intermediary, any distributions on the Senior Notes or Applicable Ownership Interest in
the Treasury Portfolio constituting a part of such Corporate Units shall be held in the name of the Purchase Contract Agent or its nominee in trust for the benefit of such Holder, until such Corporate Units are so transferred or the Corporate Units
Certificate is so delivered, as the case may be, or, such Holder provides evidence satisfactory to the Company and the Purchase Contract Agent that such Corporate Units Certificate has been destroyed, lost or stolen, together with any indemnity that
may be required by the Purchase Contract Agent and the Company. 
  
 Except as described in Section 5.02 or in this Section 3.13 or in connection with a Cash Settlement, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long as the Purchase Contract underlying a Corporate
Unit remains in effect, such Corporate Units shall not be separable into its constituent parts, and the rights and obligations of the Holder in respect of the Senior Notes or Applicable Ownership Interests in the Treasury Portfolio, as the case may
be, and the Purchase Contract comprising such Corporate Units may be acquired, and may be transferred and exchanged, only as a Corporate Unit. 
  
 Section 3.14. Recreation of Corporate Units. 
  
 Unless the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate Units, and subject to the conditions set forth in this
Agreement, a Holder of Treasury Units may recreate Corporate Units at any time on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date; provided that Holders of
Treasury Units may only recreate Corporate Units in integral multiples of 40 Treasury Units. To recreate Corporate Units, the Holder must: 
  

	 	(1)	transfer to the Securities Intermediary Senior Notes having an aggregate principal amount equal to the aggregate principal amount at stated maturity of the Pledged Treasury
Securities comprising part of the Treasury Units; and 

  

 34 

	 	(2)	transfer the related Treasury Units to the Purchase Contract Agent accompanied by a notice to the Purchase Contract Agent, substantially in the form of Exhibit C hereto, (i) stating
that the Holder has transferred the relevant amount of Senior Notes to the Securities Intermediary for deposit in the Collateral Account and (ii) instructing the Purchase Contract Agent to instruct the Collateral Agent to release the Pledged
Treasury Securities underlying such Treasury Units, whereupon the Purchase Contract Agent shall promptly provide an instruction to such effect to the Collateral Agent, substantially in the form of Exhibit C to the Pledge Agreement.

  
 Upon receipt of the Senior Notes described in clause (1) above
and the instruction described in clause (2) above, in accordance with the terms of the Pledge Agreement, the Collateral Agent will cause the Securities Intermediary to effect the release of the Pledged Treasury Securities having a corresponding
aggregate principal amount at maturity from the Pledge and the transfer thereof to the Purchase Contract Agent on behalf of the Holder free and clear of the Company’s security interest therein. Upon receipt of such Treasury Securities, the
Purchase Contract Agent shall promptly: 
  
 (i)
cancel the related Treasury Units; 
  
 (ii)
transfer the Treasury Securities to the Holder; and 
  
 (iii) authenticate, execute on behalf of such Holder and deliver Corporate Units in book-entry form or, if applicable, in the form of a Corporate Units Certificate executed by the Company in accordance with Section 3.03 evidencing the same
number of Purchase Contracts as were evidenced by the cancelled Treasury Units. 
  
 Holders who elect to recreate Corporate Units shall be responsible for any fees or expenses (including, without limitation, fees and expenses payable to the Collateral Agent for its services as Collateral Agent) in
respect of the recreation, and neither the Company nor the Purchase Contract Agent shall be responsible for any such fees or expenses. 
  

 35 

 If the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate Units, a Holder
of Treasury Units may at any time on or prior to the second Business Day immediately preceding the Purchase Contract Settlement Date substitute the Applicable Ownership Interests in the Treasury Portfolio for Treasury Securities, but only in
multiples of 16,000 Treasury Units. In such an event, the Holder shall transfer the appropriate Applicable Ownership Interests in the Treasury Portfolio to the Collateral Agent, and the Purchase Contract Agent shall instruct the Collateral Agent to
release the Pledge of and transfer to the Holder Treasury Securities in the manner set forth above. 
  
 Except as provided in Section 5.02 or in this Section 3.14 or in connection with a Cash Settlement, an Early Settlement, a Cash Merger Early Settlement or
a Termination Event, for so long as the Purchase Contract underlying a Treasury Unit remains in effect, such Treasury Unit shall not be separable into its constituent parts and the rights and obligations of the Holder of such Treasury Unit in
respect of the 1/40 of a Treasury Security and the Purchase Contract comprising such Treasury Unit may be acquired, and may be transferred and exchanged, only as a Treasury Unit. 
  
 Section 3.15. Transfer of Collateral upon Occurrence of Termination Event. 
  
 Upon the occurrence of a Termination Event and the transfer to the Purchase
Contract Agent of the Senior Notes, the appropriate Applicable Ownership Interests in the Treasury Portfolio or the Treasury Securities, as the case may be, underlying the Corporate Units and the Treasury Units, as the case may be, pursuant to the
terms of the Pledge Agreement, the Purchase Contract Agent shall request transfer instructions with respect to such Senior Notes, the appropriate Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be,
from each Holder by written request, substantially in the form of Exhibit D hereto, mailed to such Holder at its address as it appears in the Security Register. 
  

Upon book-entry transfer of the Corporate Units or the Treasury Units or delivery of a Corporate Units Certificate or Treasury Units Certificate to the
Purchase Contract Agent with such transfer instructions, the Purchase Contract Agent shall transfer the Senior Notes, the appropriate Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be, underlying
such Corporate Units or Treasury Units, as the case may be, to such Holder by book-entry transfer, or other appropriate procedures, in accordance with such instructions. In the event a Holder of Corporate Units or Treasury Units fails to effect such
transfer or delivery, the Senior Notes, the appropriate Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be, underlying such Corporate Units or Treasury Units, as the case may be, and any distributions
thereon, shall be held in the name of the Purchase Contract Agent or its nominee in trust for the benefit of such Holder, until the earlier to occur of: 
  
 (i) the transfer of such Corporate Units or Treasury Units or surrender of the Corporate Units Certificate or Treasury Units Certificate
or the receipt by the Company and the Purchase Contract Agent from such Holder of satisfactory evidence that such Corporate Units Certificate or Treasury Units Certificate has been destroyed, lost or stolen, together with any indemnity that may be
required by the Purchase Contract Agent and the Company; and 
  

 36 

 (ii) the expiration of the time period specified in the abandoned property laws of the
relevant State in which the Purchase Contract Agent holds such property. 
  
 Section 3.16. No Consent to Assumption. 
  
 Each Holder of a Unit, by acceptance thereof, shall be deemed expressly to have withheld any consent to the assumption under Section 365 of the Bankruptcy Code or otherwise, of the Purchase Contract by the Company or
its trustee, receiver, liquidator or a person or entity performing similar functions in the event that the Company becomes the debtor under the Bankruptcy Code or subject to other similar state or Federal law providing for reorganization or
liquidation. 
  
 ARTICLE 4 
 THE SENIOR NOTES AND APPLICABLE OWNERSHIP
INTERESTS IN THE TREASURY 
 PORTFOLIO 
  
 Section 4.01. Interest Payments; Rights to Interest Payments
Preserved. 
  
 Any payment on any Senior Note or on the
appropriate Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio, as the case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Purchase Contract Agent
from the Company (in the case of a Senior Note that is held in the name of the Purchase Contract Agent) or from the Collateral Agent as provided by the terms of the Pledge Agreement (in the case of Applicable Ownership Interests or a Senior Note
that is held in the name of the Collateral Agent), be paid by the Purchase Contract Agent to the Person in whose name the Corporate Units Certificate (or one or more Predecessor Corporate Units Certificates) of which such Senior Note or the
appropriate Applicable Ownership Interests in the Treasury Portfolio, as the case may be, forms a part is registered at the close of business on the Record Date for such Payment Date. 
  

 37 

 Each Corporate Units Certificate evidencing Senior Notes or the appropriate Applicable Ownership
Interests in the Treasury Portfolio delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Corporate Units Certificate shall carry the right to accrued and unpaid interest or distributions, and to
accrue interest or distributions, which were carried by the Senior Notes or the appropriate Applicable Ownership Interests in the Treasury Portfolio underlying such other Corporate Units Certificate. 
  
 In the case of any Corporate Unit with respect to which (A) Cash Settlement
of the underlying Purchase Contract is properly effected pursuant to Section 5.02(b) or Section 5.02(e) hereof, (B) Early Settlement of the underlying Purchase Contract is properly effected pursuant to Section 5.07 hereof, (C) Cash Merger Early
Settlement of the underlying Purchase Contract is properly effected pursuant to Section 5.04(b)(ii) hereof, (D) a Collateral Substitution is properly effected pursuant to Section 3.13, or (E) a Successful Initial Remarketing occurs with respect to
the Senior Note that is part of such Corporate Unit, in each case on a date that is after any Record Date and prior to or on the next succeeding Payment Date, interest on the Senior Notes or distributions on the appropriate Applicable Ownership
Interests in the Treasury Portfolio, as the case may be, underlying such Corporate Unit otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement, Early Settlement, Cash Merger Early
Settlement, Collateral Substitution or Initial Remarketing, and such payment or distributions shall, subject to receipt thereof by the Purchase Contract Agent, be payable to the Person in whose name the Corporate Units Certificate (or one or more
Predecessor Corporate Units Certificates) was registered at the close of business on the Record Date. 
  
 Except as otherwise expressly provided in the immediately preceding paragraph, in the case of any Corporate Units with respect to which Cash Settlement,
Early Settlement or Cash Merger Early Settlement of the underlying Purchase Contract is properly effected, or with respect to which a Collateral Substitution has been effected, payments on the related Senior Notes or distributions on the appropriate
Applicable Ownership Interests in the Treasury Portfolio, as the case may be, that would otherwise be payable or made after the Purchase Contract Settlement Date, Early Settlement Date, Cash Merger Early Settlement Date or the date of the Collateral
Substitution, as the case may be, shall not be payable hereunder to the Holder of such Corporate Units; provided, however, that to the extent that such Holder continues to hold Separate Senior Notes or Applicable Ownership Interest in
the Treasury Portfolio that formerly comprised a part of such Holder’s Corporate Units, such Holder shall be entitled to receive interest on such Separate Senior Notes or distributions on the Applicable Ownership Interests in the Treasury
Portfolio. 
  

 38 

 Section 4.02. Notice and Voting. 
  
 Under the terms of the Pledge Agreement, the Purchase Contract Agent will be entitled to exercise the voting and any other
consensual rights pertaining to the Pledged Senior Notes, but only to the extent instructed in writing by the Holders as described below. Upon receipt of notice of any meeting at which holders of Senior Notes are entitled to vote or upon any
solicitation of consents, waivers or proxies of holders of Senior Notes, the Purchase Contract Agent shall, as soon as practicable thereafter, mail, first class, postage pre-paid, to the Holders of Corporate Units a notice: 
  
 (i) containing such information as is contained in the
notice or solicitation; 
  
 (ii) stating that
each Holder on the record date set by the Purchase Contract Agent therefor (which, to the extent possible, shall be the same date as the record date for determining the holders of Senior Notes, as the case may be, entitled to vote) shall be entitled
to instruct the Purchase Contract Agent as to the exercise of the voting rights pertaining to such Senior Notes underlying their Corporate Units; and 
  
 (iii) stating the manner in which such instructions may be given. 
  
 Upon the written request of the Holders of Corporate Units on such record date received by the Purchase Contract Agent at least six days
prior to such meeting, the Purchase Contract Agent shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum number of Senior Notes, as the case may be, as to
which any particular voting instructions are received. In the absence of specific instructions from the Holder of a Corporate Unit, the Purchase Contract Agent shall abstain from voting the Senior Notes underlying such Corporate Unit. The Company
hereby agrees, if applicable, to solicit Holders of Corporate Units to timely instruct the Purchase Contract Agent in order to enable the Purchase Contract Agent to vote such Senior Notes. 
  
 The Holders of Corporate Units and Treasury Units shall have no voting or
other rights in respect of Common Stock. 
  
 Section 4.03.
Special Event Redemption. 
  
 (a) If the Company elects to
redeem the Senior Notes on any Payment Date following the occurrence of a Special Event as permitted by the Indenture, it shall notify the Collateral Agent in writing that a Special Event has occurred and that it intends to redeem the Senior Notes
on the Special Event Redemption Date. On the Special Event Redemption Date, the Collateral Agent shall surrender the Pledged Senior Notes to the Indenture Trustee against delivery of an amount equal to the aggregate Redemption Price for such Pledged
Senior Notes. 
  

 39 

 Thereafter, pursuant to the terms of the Pledge Agreement, the Collateral Agent shall cause the Securities Intermediary
to apply an amount equal to the aggregate Redemption Amount of such funds to purchase on behalf of the Holders of Corporate Units the Treasury Portfolio and promptly remit the remaining portion of such funds to the Purchase Contract Agent for
payment to the Holders of such Corporate Units. 
  
 (b) Upon the
occurrence of a Special Event Redemption, (i) the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio will be substituted as Collateral for the Pledged Senior Notes and will be held by
the Collateral Agent in accordance with the terms of the Pledge Agreement to secure the obligation of each Holder of a Corporate Unit to purchase Common Stock of the Company under the Purchase Contract constituting a part of such Corporate Unit,
(ii) the Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio will be transferred to the Purchase Contract Agent for the benefit of the Holders of such Corporate Units, (iii) the
Holders of Corporate Units and the Collateral Agent shall have such security interest rights and obligations with respect to such Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio as
the Holders of Corporate Units and the Collateral Agent had in respect of the Senior Notes, as the case may be, subject to the Pledge thereof as provided in the Pledge Agreement, (iv) any reference herein or in the Certificates to the Senior Notes
shall be deemed to be a reference to such Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio and (v) any reference herein or in the Certificates to interest on the Senior Notes shall
be deemed to be a reference to corresponding distributions on such Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio. The Company may cause to be made in any Corporate Units
Certificates thereafter to be issued such change in phraseology and form (but not in substance) as may be appropriate to reflect the substitution of the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in
the Treasury Portfolio for Senior Notes as Collateral. 
  
 (c) The
Holders of Separate Senior Notes shall directly receive the Redemption Price for the Separate Senior Notes in accordance with the terms of the Indenture. 
  

 40 

 ARTICLE 5 
 THE PURCHASE CONTRACTS 
  
 Section 5.01. Purchase of Shares of Common Stock. 
  
 (a) Each Purchase Contract shall obligate the Holder of the related Units to purchase, and the Company to sell, on the Purchase Contract Settlement Date
at a price equal to the Stated Amount (the “Purchase Price”), a number of newly issued shares of Common Stock (subject to Section 5.09) equal to the Settlement Rate (as defined below) unless an Early Settlement, a Cash Merger Early
Settlement or a Termination Event with respect to the Unit of which such Purchase Contract is a part shall have occurred. The “Settlement Rate” is equal to: 
  
 (i) if the Adjusted Applicable Market Value (as defined below) is greater than or equal to $47.37 (the
“Threshold Appreciation Price”), 0.5278 shares of Common Stock per Purchase Contract (such number of shares as adjusted from time to time, the “Minimum Share Number”); 
  
 (ii) if the Adjusted Applicable Market Value is less than
the Threshold Appreciation Price but greater than $38.20 (the “Reference Price”), the number of shares of Common Stock per Purchase Contract having a value equal to the Stated Amount divided by the Applicable Market Value; and

  
 (iii) if the Adjusted Applicable Market Value
is less than or equal to the Reference Price, 0.6545 shares of Common Stock per Purchase Contract (such number of shares as adjusted from time to time, the “Maximum Share Number”). 
  
 in each case rounded upward or downward to the nearest 1/10,000th of a share. 
  
 The “Adjusted Applicable Market Value” means (i) prior to
any adjustment of the Fixed Settlement Rate pursuant to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a), the Applicable Market Value, and (ii) at the time of and after any adjustment of the Fixed Settlement Rate pursuant
to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a), the Applicable Market Value multiplied by a fraction of which the numerator shall be the Fixed Settlement Rate immediately after such adjustment pursuant to paragraph
(i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) and the denominator shall be the Fixed Settlement Rate immediately prior to such adjustment; provided, however, that if such adjustment to the Fixed Settlement Rate is
required to be made pursuant to the occurrence of any of the events contemplated by paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) during the period taken into consideration for determining the Applicable Market Value,
appropriate and customary adjustments shall be made to the Fixed Settlement Rate. 
  
 The “Applicable Market Value” means the average of the Closing Price per share of Common Stock on each of the 20 consecutive Trading Days ending on the third Trading Day immediately preceding the
Purchase Contract Settlement Date. 
  

 41 

 The “Closing Price” per share of Common Stock on any date of determination means:

  
 (i) the closing sale price as of the close of
the principal trading session (or, if no closing price is reported, the last reported sale price) per share on the New York Stock Exchange, Inc. (the “NYSE”) on such date; 
  
 (ii) if the Common Stock is not listed for trading on the
NYSE on any such date, the closing sale price (or, if no closing price is reported, the last reported sale price) per share as reported in the composite transactions for the principal United States national or regional securities exchange on which
the Common Stock is so listed; 
  
 (iii) if the
Common Stock is not so listed on a United States national or regional securities exchange, the last reported sale price per share as reported by the Nasdaq National Market, Inc.; 
  
 (iv) if the Common Stock is not so reported by the Nasdaq National Market, Inc., the last quoted bid price
for the Common Stock in the over-the-counter market as reported by the National Quotation Bureau or similar organization; or 
  
 (v) if the bid price referred to in clause (iv) is not available, the market value of Common Stock on such date as determined by a
nationally recognized independent investment banking firm retained by the Company for purposes of determining the Closing Price. 
  
 A “Trading Day” means a day on which the Common Stock (1) is not suspended from trading on any national or regional securities exchange
or association or over-the-counter market at the close of business and (2) has traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the Common
Stock. 
  
 (b) Each Holder of a Corporate Unit or a Treasury Unit,
by its acceptance of such Unit: 
  
 (i)
irrevocably authorizes the Purchase Contract Agent to enter into and perform the related Purchase Contract on its behalf as its attorney-in-fact (including, without limitation, the execution of Certificates on behalf of such Holder); 
  
 (ii) agrees to be bound by the terms and provisions thereof;

  

 42 

 (iii) covenants and agrees to perform its obligations under such Purchase Contract for so
long as such Holder remains a Holder of a Corporate Unit or a Treasury Unit; 
  
 (iv) consents to the provisions hereof; 
  
 (v) irrevocably authorizes the Purchase Contract Agent to enter into and perform this Agreement and the Pledge Agreement on its behalf and in its name as its attorney-in-fact; 
  
 (vi) consents to, and agrees to be bound by, the Pledge of
such Holder’s right, title and interest in and to the Collateral Account, including the Senior Notes and the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio or the Treasury
Securities pursuant to the Pledge Agreement; and 
  
 (vii) for United States federal, state and local income and franchise tax purposes, agrees to (A) treat an acquisition of the Corporate Units as an acquisition of the Senior Notes and Purchase Contracts constituting the Corporate Units and
(B) treat itself as the owner of the applicable interest in the Collateral Account, including the Senior Notes and the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) or the
Treasury Securities, 
  
 provided that upon a Termination Event, the rights
of the Holder of such Units under the Purchase Contract may be enforced without regard to any other rights or obligations. 
  
 (c) Each Holder of a Corporate Unit or a Treasury Unit, by its acceptance thereof, further covenants and agrees that to the extent and in the manner
provided in Section 5.02 hereof and the provisions of the Pledge Agreement, but subject to the terms thereof, Proceeds of the Senior Notes, the Treasury Securities or the Applicable Ownership Interests (as specified in clause (i) of the definition
of such term) in the Treasury Portfolio, as applicable, on the Purchase Contract Settlement Date, shall be paid by the Collateral Agent to the Company in satisfaction of such Holder’s obligations under such Purchase Contract and such Holder
shall acquire no right, title or interest in such Proceeds. 
  
 (d) Upon registration of transfer of a Certificate, the transferee shall be bound (without the necessity of any other action on the part of such transferee) by the terms of this Agreement, the Purchase Contracts underlying such Certificate
and the Pledge Agreement and the transferor shall be released from the obligations under this Agreement, the Purchase Contracts underlying the Certificate so transferred and the Pledge Agreement. The Company covenants and agrees, and each Holder of
a Certificate, by its acceptance thereof, likewise covenants and agrees, to be bound by the provisions of this paragraph. 
  

 43 

 Section 5.02. Remarketing; Payment of Purchase Price.  
  
 (a) (i) Unless a Special Event Redemption has occurred prior to the Initial
Remarketing Date, the Company shall engage the Remarketing Agent pursuant to the Remarketing Agreement for Remarketing the Senior Notes. By 11:00 a.m. (New York City time) on the Business Day immediately preceding the Initial Remarketing Date, the
Collateral Agent shall notify the Remarketing Agent of the aggregate principal amount of Pledged Senior Notes, and the Custodial Agent shall notify the Remarketing Agent of the aggregate principal amount of Separate Senior Notes (if any) that are to
be remarketed pursuant to clause (ii) below. Concurrently, the Custodial Agent will present for remarketing the Separate Senior Notes to the Remarketing Agent. Upon receipt of such notice from the Collateral Agent and Custodial Agent, and the
Separate Senior Notes for remarketing from the Custodial Agent, the Remarketing Agent will, on the Initial Remarketing Date, use commercially reasonable efforts to remarket (based on the Reset Rate) (the “Initial Remarketing”) such
Pledged Senior Notes and Separate Senior Notes on such date at a price of equal to approximately 100.25% of the sum of the Treasury Portfolio Purchase Price plus the Separate Senior Notes Purchase Price, as provided in the Remarketing Agreement. If
the Remarketing Agent is able to remarket the Pledged Senior Notes and Separate Senior Notes at a price equal to or greater than 100% of the Treasury Portfolio Purchase Price plus the Separate Senior Notes Purchase Price (a “Successful
Initial Remarketing”), the Collateral Agent shall, in accordance with the Pledge Agreement, cause the Securities Intermediary to transfer the Pledged Senior Notes upon confirmation of deposit by the Remarketing Agent of the proceeds of such
Successful Remarketing in the Collateral Account, and the portion of the proceeds from such Successful Initial Remarketing equal to the Treasury Portfolio Purchase Price will be applied to purchase the Treasury Portfolio. The Remarketing Agent may
deduct as a remarketing fee an amount not exceeding 25 basis points (.25%) of the sum of the Treasury Portfolio Purchase Price plus the Separate Senior Notes Purchase Price from any proceeds of the Successful Remarketing in excess of the Treasury
Portfolio Price plus the Separate Senior Notes Purchase Price. To the extent that such excess proceeds are less than 25 basis points of the Treasury Portfolio Purchase Price plus the Separate Senior Notes Purchase Price, the Company shall pay an
amount, as an additional remarketing fee, to the Remarketing Agent equal to such shortfall (such amount, together with the amount in the previous sentence, the “Remarketing Fee”). With respect to Pledged Senior Notes upon a
Successful Initial Remarketing, any proceeds of the Initial Remarketing in excess of the sum of the Treasury Portfolio Purchase Price plus the portion of Remarketing Fee attributable to such Pledged Senior Notes will be remitted to the Purchase
Contract Agent for payment to the Holders of the related Corporate Units. The Treasury Portfolio will be substituted for the 
  

 44 

 Pledged Senior Notes and the appropriate Applicable Ownership Interests (as specified in clause (i) of the definition of
such term) in the Treasury Portfolio will be pledged to the Collateral Agent to secure the obligation of the Holders of Corporate Units to pay the Purchase Price for the Common Stock under the related Purchase Contracts on the Purchase Contract
Settlement Date. With respect to Separate Senior Notes upon a Successful Initial Remarketing, any proceeds of the Initial Remarketing in excess of the portion of the Remarketing Fee attributable to the Separate Senior Notes will be remitted to the
Custodial Agent for payment to the holders of Separate Senior Notes. None of the Company, the Purchase Contract Agent, or any Holders of Corporate Units or holders of Separate Senior Notes whose Senior Notes or Separate Senior Notes are so
remarketed will otherwise be responsible for the payment of any Remarketing Fee in connection therewith. 
  
 Following the occurrence of a Successful Initial Remarketing, the Holders of Corporate Units and the Collateral Agent shall have such security interests,
rights and obligations with respect to the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio as the Holders of Corporate Units and the Collateral Agent had in respect of the Senior
Notes, subject to the Pledge thereof as provided in the Pledge Agreement, and any reference herein or in the Certificates to the Senior Notes shall be deemed to be a reference to such Applicable Ownership Interests (as specified in clause (i) of the
definition of such term) in the Treasury Portfolio and any reference herein or in the Certificates to interest on the Senior Notes shall be deemed to be a reference to corresponding distributions on such Applicable Ownership Interests in the
Treasury Portfolio. The Company may cause to be made in any Corporate Units Certificates thereafter to be issued such change in phraseology and form (but not in substance) as may be appropriate to reflect the substitution of such Applicable
Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio for Senior Notes as Collateral. 
  
 If, in spite of using commercially reasonable efforts, the Remarketing Agent cannot remarket the Pledged Senior Notes and the Separate Senior Notes (if
any) in the Initial Remarketing (other than to the Company) at a price not less than 100% of the sum of the Treasury Portfolio Purchase Price plus the Separate Senior Notes Purchase Price or a condition precedent set forth in the Remarketing
Agreement is not fulfilled, the Initial Remarketing will be deemed to have failed (a “Failed Initial Remarketing”). Upon a Failed Initial Remarketing, the Remarketing Agent shall return the Separate Senior Notes (if any) subject to
such Remarketing to the Custodial Agent. 
  
 (ii)
Prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the applicable Remarketing Date, but no earlier than the Payment Date immediately preceding such date, Holders of Separate Senior Notes may elect to have their
Separate Senior 
  

 45 

 Notes remarketed under the Remarketing Agreement by delivering their Separate Senior Notes, along with a
notice of such election, substantially in the form of Exhibit F to the Pledge Agreement, to the Custodial Agent. The Custodial Agent shall hold Separate Senior Notes in an account separate from the Collateral Account in which the Pledged Senior
Notes (as defined in the Pledge Agreement) shall be held. Holders of Separate Senior Notes electing to have their Separate Senior Notes remarketed will also have the right to withdraw that election by written notice to the Custodial Agent,
substantially in the form of Exhibit G to the Pledge Agreement, on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the applicable Remarketing Date, upon which notice the Custodial Agent shall return such
Separate Senior Notes to such Holder. Promptly after 11:00 a.m. on the Business Day immediately preceding the applicable Remarketing Date, the Custodial Agent shall notify the Remarketing Agent of the aggregate principal amount of the Separate
Senior Notes to be remarketed. After such time, such election shall become an irrevocable election to have such Separate Senior Notes remarketed in such Remarketing. 
  
 (iii) Not later than seven calendar days nor more than 15 calendar days prior to the applicable Remarketing
Date, the Company shall request the Depositary or its nominee to notify Depositary Participants holding Units and Separate Senior Notes of the procedures to be followed in such Remarketing, including in the case of a Failed Final Remarketing the
procedures to be followed to exercise Put Rights. 
  
 (iv) The Company agrees to use commercially reasonable efforts (A) to ensure that, if required by applicable law, a registration statement with regard to the full amount of the Senior Notes to be remarketed in the Initial Remarketing or the
Final Remarketing, as the case may be, shall be effective with the Securities and Exchange Commission in a form that will enable the Remarketing Agent to rely on it in connection with such Remarketing and (B) to provide a Prospectus in connection
therewith. 
  
 (v) The Company shall cause a
notice of a Failed Remarketing to be published (with a copy of such notice to be provided to the Purchase Contract Agent) on the Business Day immediately following the applicable Remarketing Date, in a daily newspaper in the English language of
general circulation in the City of New York, which is expected to be The Wall Street Journal. 
  
 (b) (i) Unless a Special Event Redemption, an Early Settlement or a Cash Merger Early Settlement has occurred prior to the Final Remarketing Date, if no
Successful Remarketing has occurred prior to the Final Remarketing Date, 
  

 46 

 each Holder of Corporate Units shall have the right to satisfy such Holder’s obligations under the Purchase Contract
on the Purchase Contract Settlement Date in cash by notifying the Purchase Contract Agent by use of a notice in substantially the form of Exhibit E hereto of its intention to pay in cash (“Cash Settlement”) on or prior to 5:00 p.m.
(New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date. Promptly following 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date, the
Purchase Contract Agent shall notify the Collateral Agent and the Indenture Trustee of the receipt of such notices from Holders intending to make a Cash Settlement. 
  
 (ii) A Holder of a Corporate Unit who has so notified the Purchase Contract Agent of its intention to effect
a Cash Settlement shall pay the Purchase Price to the Collateral Agent for deposit in the Collateral Account on or prior to 5:00 p.m. (New York City time) on the fourth Business Day immediately preceding the Purchase Contract Settlement Date, in
lawful money of the United States by certified or cashiers’ check or wire transfer of immediately available funds payable to or upon the order of the Securities Intermediary. Any cash so received shall be invested promptly by the Securities
Intermediary in Permitted Investments and paid to the Company on the Purchase Contract Settlement Date in settlement of the Purchase Contracts in accordance with the terms of this Agreement and the Pledge Agreement. Any funds received by the
Securities Intermediary in respect of the investment earnings from such Permitted Investments in excess of the Purchase Price for the shares of Common Stock to be purchased by such Holder shall be distributed to the Purchase Contract Agent when
received for payment to the Holder. 
  
 (iii) If
a Holder of a Corporate Unit does not notify the Purchase Contract Agent of its intention to make a Cash Settlement in accordance with Section 5.02(b)(ii) above, or does notify the Purchase Contract Agent in accordance with Section 5.02(b)(i) above
but fails to make such payment as required by Section 5.02(b)(ii) above, such Holder shall be deemed to have consented to the disposition of the Pledged Senior Notes pursuant to the Final Remarketing as described in paragraph Section 5.02(c) below.

  
 (iv) As soon as practicable after 5:00 p.m.
(New York City time) on the fourth Business Day preceding the Purchase Contract Settlement Date, the Collateral Agent, based on cash payments received by the Collateral Agent pursuant to Section 5.02(b)(ii) hereof, shall promptly notify the Purchase
Contract Agent and the Indenture Trustee of the aggregate principal amount of Senior Notes to be tendered for purchase in the Remarketing in a notice pursuant to the terms of the Pledge Agreement. 
  

 47 

 (c) (i) Unless a Special Event Redemption, an Early Settlement or a Cash Merger Early Settlement has
occurred prior to the Final Remarketing Date, if a Failed Initial Remarketing has occurred, the Senior Notes of such Holders of Corporate Units who have not notified the Purchase Contract Agent of their intention to effect a Cash Settlement as
provided in Section 5.02(b)(i) above, or who have so notified the Purchase Contract Agent in accordance with Section 5.02(b)(i) above but have failed to make such payment as required by Section 5.02(b)(ii) above, and the Separate Senior Notes of any
holder who has elected for its Separate Senior Notes to be remarketed pursuant to Section 5.02(a)(ii) will be remarketed by the Remarketing Agent (the “Final Remarketing”) on the third Business Day immediately preceding the Purchase
Contract Settlement Date (the “Final Remarketing Date”). In order to facilitate the Final Remarketing, the Purchase Contract Agent, based on the notices specified in Section 5.02(b)(iv), and the Collateral Agent, based on the
notices specified in Section 5.02(a)(ii), shall notify the Remarketing Agent, by 11:00 a.m. (New York City time) on the Business Day immediately preceding the Final Remarketing Date, of the aggregate principal amount of Pledged Senior Notes or
aggregate principal amount of Separate Senior Notes that are to be remarketed pursuant to Section 5.02(a)(ii), as the case may be, to be remarketed. Concurrently, the Custodial Agent will present for remarketing the Separate Senior Notes to the
Remarketing Agent. 
  
 (ii) Upon receipt of such
notice from the Purchase Contract Agent and the Collateral Agent and the Separate Senior Notes (if any) from the Custodial Agent, as set forth in clause (i) above, the Remarketing Agent shall, on the Final Remarketing Date, use commercially
reasonable efforts to remarket (based on the Reset Rate) such Pledged Senior Notes and Separate Senior Notes on such date at a price equal to approximately 100.25% of the aggregate principal amount of such Senior Notes and Separate Senior Notes
being remarketed, as provided in the Remarketing Agreement. If the Remarketing Agent is able to remarket the Pledged Senior Notes and Separate Senior Notes at a price equal to or greater than 100% of the aggregate principal amount of the Pledged
Senior Notes and Separate Senior Notes (if any) (a “Successful Final Remarketing”), the Collateral Agent shall, in accordance with the Pledge Agreement, cause the Securities Intermediary to transfer the Pledged Senior Notes upon
confirmation of deposit by the Remarketing Agent of the proceeds of such Successful Remarketing in the Collateral Account. The Remarketing Agent may deduct as the remarketing fee an amount not exceeding 25 basis points (.25%) of the aggregate
principal amount of the remarketed Pledged Senior Notes and Separate Senior Notes (if any) from any proceeds of the Successful Final Remarketing in excess of the aggregate principal amount of the remarketed Pledged Senior Notes and Separate Senior
Notes. To the extent that such excess proceeds are less than 25 
  

 48 

 basis points of the aggregate principal amount of the remarketed Pledged Senior Notes and Separate Senior
Notes, the Company shall pay an amount, as an additional remarketing fee, equal to such shortfall (such amount, together with the amount in the previous sentence, the “Final Remarketing Fee”). The proceeds from the Remarketing
remitted to the Collateral Agent shall be invested by the Collateral Agent in Permitted Investments, in accordance with the Pledge Agreement, and then applied to satisfy in full the obligations of such Holders of Corporate Units to pay the Purchase
Price for the shares of Common Stock under the related Purchase Contracts on the Purchase Contract Settlement Date. Any proceeds in excess of those required to pay the Purchase Price and the portion of the Final Remarketing Fee attributable to the
Senior Notes will be remitted to the Purchase Contract Agent for payment to the Holders of the related Corporate Units. With respect to Separate Senior Notes upon a Successful Final Remarketing, any proceeds of the Final Remarketing in excess of the
portion of the Final Remarketing Fee attributable to the Separate Senior Notes will be remitted to the Custodial Agent for payment to the holders of Separate Senior Notes. 
  
 (iii) If, in spite of using commercially reasonable efforts, the Remarketing Agent cannot remarket the Pledged Senior Notes
and Separate Senior Notes (if any) in the Final Remarketing at a price not less than 100% of the aggregate principal amount of the Pledged Senior Notes and Separate Senior Notes to be remarketed in the Final Remarketing (other than to the Company)
or a condition precedent set forth in the Remarketing Agreement is not fulfilled, the Final Remarketing will be deemed to have failed (a “Failed Final Remarketing”). Following a Failed Final Remarketing, as of the Purchase Contract
Settlement Date, each Holder of any Pledged Senior Notes unless such Holder has elected Cash Settlement and delivered cash in accordance with Section 5.02(e)(ii) shall be deemed to have exercised such Holder’s Put Right with respect to such
Senior Notes and to have elected to have a portion of the Proceeds of the Put Right set-off against such Holder’s obligation to pay the aggregate Purchase Price for the shares of Common Stock to be issued under the related Purchase Contracts in
full satisfaction of such Holders’ obligations under such Purchase Contracts. Following such set-off, each such Holder’s obligations to pay the Purchase Price for the shares of Common Stock will be deemed to be satisfied in full, and the
Collateral Agent shall cause the Securities Intermediary to release the Pledged Senior Notes from the Collateral Account and shall promptly transfer the Pledged Senior Notes to the Company. Thereafter, the Collateral Agent shall promptly remit the
remaining portion of the Proceeds of the Holder’s exercise of the Put Right in excess of the aggregate Purchase Price for the shares of Common Stock to be issued under such Purchase Contracts to the Purchase Contract Agent for payment to the
Holder of the Corporate Units to which such Senior Notes relate. 
  

 49 

 (d) As soon as practicable after 5:00 p.m. (New York City time) on the fourth Business Day preceding the
Purchase Contract Settlement Date, the Collateral Agent, based on cash payments received by the Collateral Agent pursuant to Section 5.02(b)(ii) hereof, shall promptly notify the Purchase Contract Agent and the Indenture Trustee of the aggregate
principal amount of Senior Notes to be tendered for purchase in the Final Remarketing in a notice pursuant to the terms of the Pledge Agreement. 
  
 (e) (i) Each Holder of a Corporate Unit who intends to effect a Cash Settlement of the underlying Purchase Contract following a Failed Final Remarketing
shall so notify the Purchase Contract Agent by use of a notice in substantially the form of Exhibit E hereto prior to 11:00 a.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date. Promptly
following 11:00 a.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date, the Purchase Contract Agent shall notify the Collateral Agent and the Indenture Trustee of the receipt of such notices
from Holders intending to make a Cash Settlement. 
  
 (ii) A Holder of a Corporate Unit who has so notified the Purchase Contract Agent of its intention to effect a Cash Settlement shall pay the Purchase Price to the Collateral Agent for deposit in the Collateral Account prior to 5:00 p.m.
(New York City time) on the Business Day immediately preceding the Purchase Contract Settlement Date, in lawful money of the United States by certified or cashiers’ check or wire transfer, in each case in immediately available funds payable to
or upon the order of the Securities Intermediary. Any cash so received shall be invested promptly by the Securities Intermediary in Permitted Investments and paid to the Company on the Purchase Contract Settlement Date in settlement of the Purchase
Contracts in accordance with the terms of this Agreement and the Pledge Agreement. Any funds received by the Securities Intermediary in respect of the investment earnings from such Permitted Investments in excess of the Purchase Price for the shares
of Common Stock to be purchased by such Holder shall be distributed to the Purchase Contract Agent when received for payment to the Holder. 
  
 (iii) In the event of a Failed Final Remarketing, if a Holder of a Corporate Unit does not notify the Purchase Contract Agent of its
intention to make a Cash Settlement in accordance with Section 5.02(a)(i) above, or does notify the Purchase Contract Agent in accordance with Section 5.02(a)(i) above but fails to make such payment as required by Section 5.02(a)(ii) above, such
Holder shall be deemed to have automatically exercised such Holder’s Put Right following a Failed Final Remarketing as described in paragraph Section 5.02(c)(iii) above. 
  

 50 

 (f) As soon as practicable after 5:00 p.m. (New York city time) on the Business Day preceding the
Purchase Contract Settlement Date, the Collateral Agent, based on cash payment received by the Collateral Agent pursuant to Section 5.02(e)(ii) hereof, shall promptly notify the Purchase Contract Agent and the Indenture Trustee of the aggregate
principal amount of Senior Notes pursuant to which a Put Right has been automatically exercised pursuant to Section 5.02(c)(iii) hereof. 
  
 (g) Any distribution to Holders of any payments described above shall be payable at the office of the Purchase Contract Agent in New York City maintained
for that purpose or, at the option of the Holder, by check mailed to the address of the Person entitled thereto at such address as it appears on the Security Register. 
  
 (h) Upon Cash Settlement of any Purchase Contract: 
  
 (i) the Collateral Agent will in accordance with the terms of the Pledge Agreement cause the Pledged Senior
Notes or the appropriate Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, underlying the relevant Units to be released from the Pledge, free and clear of any
security interest of the Company, and transferred to the Purchase Contract Agent for delivery to the Holder thereof or its designee as soon as reasonably practicable; and 
  
 (ii) subject to the receipt thereof, the Purchase Contract Agent shall, by book-entry transfer or other
appropriate procedures, in accordance with written instructions provided by the Holder thereof, transfer such Senior Notes or the appropriate Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury
Portfolio, as the case may be (or, if no such instructions are given to the Purchase Contract Agent by the Holder, the Purchase Contract Agent shall hold such Senior Notes or the appropriate Applicable Ownership Interests (as specified in clause (i)
of the definition of such term) in the Treasury Portfolio, as the case may be, and any interest payment thereon, in the name of the Purchase Contract Agent or its nominee in trust for the benefit of such Holder until the expiration of the time
period specified in the abandoned property laws of the relevant state where such property is held). 
  
 (i) The obligations of the Holders to pay the Purchase Price are non-recourse obligations and, except to the extent satisfied by Early Settlement, Cash

  

 51 

 Merger Early Settlement or Cash Settlement, are payable solely out of the proceeds of any Collateral pledged to secure
the obligations of the Holders, and in no event will Holders be liable for any deficiency between the Proceeds of the disposition of Collateral and the Purchase Price. 
  
 (j) The Company shall not be obligated to issue any shares of Common Stock in respect of a Purchase Contract or deliver any
certificates thereof to the Holder of the related Units unless the Company shall have received payment for the Common Stock to be purchased thereunder in the manner herein set forth. 
  
 Section 5.03. Issuance of Shares of Common Stock. 
  
 Unless a Termination Event, an Early Settlement or a Cash Merger Early Settlement shall have occurred, subject to Section
5.04(b)(ii), on the Purchase Contract Settlement Date upon receipt of the aggregate Purchase Price payable on all Outstanding Units, the Company shall issue and deposit with the Purchase Contract Agent, for the benefit of the Holders of the
Outstanding Units, one or more certificates representing newly issued shares of Common Stock registered in the name of the Purchase Contract Agent (or its nominee) as custodian for the Holders (such certificates for shares of Common Stock, together
with any dividends or distributions for which a record date and payment date for such dividend or distribution has occurred after the Purchase Contract Settlement Date, being hereinafter referred to as the “Purchase Contract Settlement
Fund”) to which the Holders are entitled hereunder. 
  
 Subject to the foregoing, upon surrender of a Certificate to the Purchase Contract Agent on or after the Purchase Contract Settlement Date, Early Settlement Date or Cash Merger Early Settlement Date, as the case may be, together with
settlement instructions thereon duly completed and executed, the Holder of such Certificate shall be entitled to receive forthwith in exchange therefor a certificate representing that number of newly issued whole shares of Common Stock which such
Holder is entitled to receive pursuant to the provisions of this Article 5 (after taking into account all Units then held by such Holder), together with cash in lieu of fractional shares as provided in Section 5.09 and any dividends or distributions
with respect to such shares constituting part of the Purchase Contract Settlement Fund, but without any interest thereon, and the Certificate so surrendered shall forthwith be cancelled. Such shares shall be registered in the name of the Holder or
the Holder’s designee as specified in the settlement instructions provided by the Holder to the Purchase Contract Agent. If any shares of Common Stock issued in respect of a Purchase Contract are to be registered to a Person other than the
Person in whose name the Certificate evidencing such Purchase Contract is registered (but excluding any Depositary or nominee thereof), no such registration shall be made unless the Person requesting such registration has paid any transfer and other
taxes required by reason of such registration in a name other than that of the registered Holder of the Certificate evidencing such Purchase Contract or has established to the satisfaction of the Company that such tax either has been paid or is not
payable. 
  

 52 

 Section 5.04. Certain Adjustments. 
  
 (a) Adjustments for Dividends, Distributions, Stock Splits, Etc. 
  
 (i) In case the Company shall pay or make a dividend or
other distribution on Common Stock in Common Stock, each Fixed Settlement Rate in effect at the close of business on the date fixed for the determination of shareholders entitled to receive such dividend or other distribution shall be increased by
dividing such Fixed Settlement Rate by a fraction of which: 
  
 (A) the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination; and 
  
 (B) the denominator shall be the sum of such number of shares and the total number of shares constituting
such dividend or other distribution, 
  
 such increase to become
effective immediately at the opening of business on the day following the date fixed for such determination. For the purposes of this paragraph (i), the number of shares of Common Stock at any time outstanding shall not include shares held in the
treasury of the Company but shall include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The Company agrees that it shall not pay any dividend or make any distribution on shares of
Common Stock held in the treasury of the Company. 
  
 (ii) In case the Company shall issue rights, warrants or options, other than pursuant to any dividend reinvestment plans or share purchase plans, to all holders of its Common Stock (not being available on an equivalent basis to Holders of
the Units upon settlement of the Purchase Contracts underlying such Units) entitling them, for a period expiring within 45 days after the record date for the determination of shareholders entitled to receive such rights, warrants or options, to
subscribe for or purchase shares of Common Stock at a price per share less than the Current Market Price per share of Common Stock on the date of announcement of such issuance, each Fixed Settlement Rate in effect at the close of business on the
date of such announcement shall be increased by dividing such Fixed Settlement Rate by a fraction of which: 
  
 (A) the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date of such announcement plus
the number of shares of Common Stock that the aggregate of the offering price of the total number of shares of Common Stock so offered for subscription or purchase would purchase at such Current Market Price; and 
  

 53 

 (B) the denominator shall be the number of shares of Common Stock outstanding at the
close of business on the date of such announcement plus the number of shares of Common Stock so offered for subscription or purchase, 
  
 such increase to become effective immediately after the opening of business on the Business Day following the date of such announcement. The Company
agrees that it shall notify the Purchase Contract Agent if any issuance of such rights, warrants or options is cancelled or not completed following the announcement thereof and each Fixed Settlement Rate shall thereupon be readjusted to the Fixed
Settlement Rate in effect immediately prior to the date of such announcement. For the purposes of this paragraph (ii), the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but
shall include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The Company agrees that it shall not issue any such rights, warrants or options in respect of shares of Common Stock held
in the treasury of the Company. 
  
 (iii) In case
outstanding shares of Common Stock shall be subdivided or split into a greater number of shares of Common Stock, each Fixed Settlement Rate in effect at the close of business on the day preceding the day upon which such subdivision or split becomes
effective shall be proportionately increased, and, conversely, in case outstanding shares of Common Stock shall each be combined into a smaller number of shares of Common Stock, such Settlement Rate in effect at the close of business on the day
preceding the day upon which such combination becomes effective shall be proportionately reduced, such increase or reduction, as the case may be, to become effective immediately at the opening of business on the day following the day upon which such
subdivision, split or combination becomes effective. 
  
 (iv) In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock evidences of its indebtedness or assets (including shares of capital stock, securities, cash and property but excluding any rights,
warrants or options referred to in paragraph (ii) of this Section 5.04(a), any dividend or distribution paid exclusively in cash and any dividend or distribution referred to in paragraph (i) of this 
  

 54 

 Section 5.04(a)), each Fixed Settlement Rate in effect at the close of business on the date fixed for the
determination of shareholders entitled to receive such distribution shall be adjusted by dividing such rate by a fraction of which: 
  
 (A) the numerator shall be the Current Market Price per share of Common Stock on the date fixed for such determination less the then fair
market value (as determined by the Board of Directors, whose determination shall be conclusive and the basis for which shall be generally described in a Board Resolution) of the portion of the assets or evidences of indebtedness so distributed
applicable to one share of Common Stock; and 
  
 (B) the denominator shall be such Current Market Price per share of Common Stock, 
  
 such adjustment to become effective at the opening of business on the day following the date fixed for the determination of shareholders entitled to receive such distribution. In any case in which this paragraph (iv)
is applicable, paragraph (ii) of this Section 5.04(a) shall not be applicable. In the event that such dividend or distribution is not so paid or made, each Fixed Settlement Rate shall again be adjusted to be the Fixed Settlement Rate that would then
be in effect if such dividend or distribution had not been declared. 
  
 (v) In case the Company or any of its subsidiaries shall, by dividend or otherwise, make distributions consisting exclusively of cash to all holders of its Common Stock, excluding any cash dividend or distribution on
the Common Stock to the extent that the aggregate cash dividend or distribution per share of Common Stock in any quarter does not exceed $0.0375 (the “Dividend Threshold Amount”) (the Dividend Threshold Amount is subject to
adjustment whenever the Fixed Settlement Rate is adjusted, which adjustment shall be the inverse of the adjustment made to the Fixed Settlement Rate, provided that no adjustment shall be made to the Dividend Threshold Amount for any
adjustment made pursuant to this Section 5.04(a)(v)) then, in such case, each Fixed Settlement Rate in effect at the close of business on the date fixed for the determination of shareholders entitled to receive such distribution dividend or
distribution shall be adjusted by dividing such rate by a fraction of which: 
  
 (A) the numerator shall be the Current Market Price on such date less the amount of cash so distributed applicable to one share of Common Stock in excess of the Dividend Threshold Amount; and 
  

 55 

 (B) the denominator shall be the Current Market Price on such date, 
  
 such adjustment to be effective at the opening of business on the day
following the date fixed for the determination of shareholders entitled to receive such dividend or distribution; provided that if the portion of the cash so distributed applicable to one share of Common Stock in excess of the Dividend
Threshold Amount is equal to or greater than the Current Market Price on such date, in lieu of the foregoing adjustment, adequate provision shall be made so that each holder of a Unit shall have the right to receive upon settlement of the Units such
excess amount. In the event that such dividend or distribution is not so paid or made, each Fixed Settlement Rate shall again be adjusted to be the Fixed Settlement Rate that would then be in effect if such dividend or distribution had not been
declared. 
  
 (vi) In case a tender or exchange
offer made by the Company or any subsidiary of the Company for all or any portion of the Common Stock shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders of consideration
per share of Common Stock having a fair market value (as determined by the Board of Directors, whose determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the “Expiration
Time”) tenders or exchanges may be made pursuant to such tender or exchange offer (as it may be amended) exceeds the Closing Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, each Fixed Settlement Rate
shall be increased so that the same shall equal the rate determined by dividing such Fixed Settlement Rate in effect immediately prior to the Expiration Time by a fraction, 
  
 (A) the numerator of which shall be equal to (A) the product of (I) the Current Market Price of a share of
Common Stock as of the Expiration Time and (II) the number of shares of Common Stock outstanding (including any shares accepted in terms of the tender or exchange offer, such shares being referred to as the “Purchased Shares”) at
the Expiration Time less (B) the fair market value (determined by the Board of Directors as aforesaid) of the aggregate consideration payable to stockholders for all Purchased Shares, and 
  

 56 

 (B) the denominator of which shall be the product of the (x) number of shares of Common
Stock outstanding at the Expiration Time less any Purchased Shares and (y) the Current Market Price of a share of Common Stock at the Expiration Time, 
  
 such adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, each Fixed Settlement Rate shall again be adjusted to be
the Fixed Settlement Rate that would then be in effect if such tender or exchange offer had not been made. 
  
 (vii) The reclassification of Common Stock into securities including securities other than Common Stock (other than any reclassification
upon a Reorganization Event to which Section 5.04(b) applies) shall be deemed to involve: 
  
 (A) a distribution of such securities other than Common Stock to all holders of Common Stock (and the effective date of such
reclassification shall be deemed to be “the date fixed for the determination of shareholders entitled to receive such distribution” and the “date fixed for such determination” within the meaning of paragraph (iv) of this
Section); and 
  
 (B) a subdivision, split or
combination, as the case may be, of the number of shares of Common Stock outstanding immediately prior to such reclassification into the number of shares of Common Stock outstanding immediately thereafter (and the effective date of such
reclassification shall be deemed to be “the day upon which such subdivision or split becomes effective” or “the day upon which such combination becomes effective”, as the case may be, and “the day upon which such
subdivision, split or combination becomes effective” within the meaning of paragraph (iii) of this Section). 
  
 (viii) The “Current Market Price” per share of Common Stock on any date of determination means the average of the daily
Closing Prices for the ten Trading Days ending on the earlier of such date of determination and the day before the “ex date” with respect to the issuance or distribution requiring such computation. For purposes of this paragraph, the term
“ex date,” when used with respect to any issuance or distribution, shall mean the first date on which Common Stock trades regular way on such exchange or in such market without the right to receive such issuance or distribution.

  

 57 

 (ix) All adjustments to the Fixed Settlement Rate shall be calculated to the nearest
1/10,000th of a share of Common Stock (or if there is not a nearest 1/10,000th of a share, to the next lower 1/10,000th of a share). 
  
 (x) The Company may, but shall not be required to, make such increases in the Fixed Settlement Rate, in addition to those required by this
Section, as the Board of Directors considers to be advisable in order to avoid or diminish any income tax to any holders of shares of Common Stock resulting from any dividend or distribution of stock or issuance of rights or warrants to purchase or
subscribe for stock or from any event treated as such for income tax purposes or for any other reason. Any such adjustment to the Fixed Settlement Rate shall be proportionally made to both the Maximum Share Number and the Minimum Share Number.

  
 (xi) If the Company has any stockholder
rights plan in effect upon settlement of the Purchase Contracts, a Holder shall be entitled to receive upon settlement of its Purchase Contracts, in addition to the shares of Common Stock issuable upon settlement of such Purchase Contract, the
related rights for the Common Stock, unless such rights under the stockholder rights plan have separated from the Common Stock at the time of settlement, in which case each Fixed Settlement Rate shall be adjusted as provided in this Section 5.04 on
the date such rights separate from the Common Stock. 
  
 (b)
Adjustment for Consolidation, Merger or Other Reorganization Event. 
  
 (i) In the event of: 
  
 (A) any consolidation or merger of the Company with or into another Person (other than a merger or consolidation in which the Company is the continuing corporation and in which the shares of Common Stock outstanding immediately prior to the
merger or consolidation are not exchanged for cash, securities or other property of the Company or another corporation); 
  
 (B) any sale, transfer, lease or conveyance to another Person of the property of the Company as an entirety or substantially as an
entirety; 
  

 58 

 (C) any statutory share exchange of the Company with another Person (other than in
connection with a merger or acquisition); or 
  
 (D) any liquidation, dissolution or termination of the Company other than as a result of or after the occurrence of a Termination Event (any event described in clauses (A), (B), (C) and (D), a “Reorganization Event”),

  
 the Settlement Rate will be adjusted to provide that each Holder of Units will
receive on the Purchase Contract Settlement Date with respect to each Purchase Contract forming a part thereof, the kind and amount of securities, cash and other property receivable upon such Reorganization Event (without any interest thereon, and
without any right to dividends or distribution thereon which have a record date that is prior to the Purchase Contract Settlement Date) by a Holder of the one share of Common Stock (the “Exchange Property”). The kind and amount of
Exchange Property will be determined assuming such Holder of Common Stock is not a Person with which the Company consolidated or into which the Company merged or which merged into the Company or to which such sale or transfer was made, as the case
may be (any such Person, a “Constituent Person”), or an Affiliate of a Constituent Person to the extent such Reorganization Event provides for different treatment of Common Stock held by Affiliates of the Company and non-affiliates
and such Holder failed to exercise its rights of election, if any, as to the kind or amount of securities, cash and other property receivable upon such Reorganization Event (provided that if the kind or amount of securities, cash and other property
receivable upon such Reorganization Event is not the same for each share of Common Stock held immediately prior to such Reorganization Event by other than a Constituent Person or an Affiliate thereof and in respect of which such rights of election
shall not have been exercised (“non-electing share”), then for the purpose of this Section 5.04(b)(i) the kind and amount of securities, cash and other property receivable upon such Reorganization Event by each non-electing share
shall be deemed to be the kind and amount so receivable per share by a plurality of the non-electing shares). 
  
 The actual amount of Exchange Property receivable upon settlement of each Purchase Contract shall be (1) in the case of settlement on the Purchase
Contract Settlement Date or pursuant to Section 5.04(b)(ii), a variable amount based upon the applicable Settlement Rate and the Applicable Market Value of the Exchange Property at such time and (2) in the case of any Early Settlement, determined in
accordance with the procedures described under Section 5.07 using the Settlement Rate that results in the minimum amount of Exchange Property being delivered under such Purchase Contract. 
  

 59 

 For purposes of this Section 5.04(b)(i) and Section 5.04(b)(ii), the term “Applicable Market
Value” shall be deemed to refer to the “Applicable Market Value” of the Exchange Property, and such value shall be determined (A) with respect to any publicly traded securities that compose all or part of the Exchange Property, based
on the Closing Price of such securities, (B) in the case of any cash that composes all or part of the Exchange Property, based on the amount of such cash and (C) in the case of any other property that composes all or part of the Exchange Property,
based on the value of such property, as determined by a nationally recognized independent investment banking firm retained by the Company for this purpose; provided that prior to the separation of the Rights or any similar stockholder rights
from the Common Stock, such Rights or similar stockholder rights shall be deemed to have no value. The term “Closing Price” shall be deemed to refer to the closing sale price, last quoted bid price or mid-point of the last bid and ask
prices, as the case may be, of any publicly traded securities that comprise all or part of the Exchange Property. The term “Trading Day” shall be deemed to refer to any publicly traded securities that comprise all or part of the Exchange
Property. 
  
 In the event of such a Reorganization Event, the
Person formed by such consolidation, merger or exchange or the Person which acquires the assets of the Company or, in the event of a liquidation, dissolution or termination of the Company, the Company or a liquidating trust created in connection
therewith, shall execute and deliver to the Purchase Contract Agent an agreement supplemental hereto providing that each Holder of an Outstanding Unit shall have the rights provided by this Section 5.04(b)(i). Such supplemental agreement shall
provide for adjustments which, for events subsequent to the effective date of such supplemental agreement, shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 5.04. The above provisions of this Section
5.04 shall similarly apply to successive Reorganization Events. 
  
 (ii) In the event of a consolidation or merger of the Company with or into another Person (other than a consolidation or merger that does not result in any reclassification, conversion, exchange or cancellation of
outstanding shares of Common Stock), in each case in which 30% or more of the total consideration paid to the Company’s shareholders consists of cash or cash equivalents (a “Cash Merger”), then a Holder of a Unit may settle
(“Cash Merger Early Settlement”) its Purchase Contract, upon the conditions set forth below, at the Settlement Rate in effect immediately prior to the closing of the Cash Merger; provided that (A) the Cash Merger Early
Settlement Date (as defined below) is no later than the fifth Business Day immediately preceding the Purchase Contract Settlement Date and (B) no Cash Merger Early Settlement will be permitted pursuant to this Section 5.04(b)(ii) unless, at the time
such Cash Merger Early Settlement is effected, there is an effective Registration Statement with respect to any securities to be issued and delivered in connection with such Cash Merger 
  

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 Early Settlement, if such a Registration Statement is required (in the view of counsel, which need not be
in the form of a written opinion, for the Company) under the Securities Act. If such a Registration Statement is so required, the Company covenants and agrees to use commercially reasonable efforts to (x) have in effect a Registration Statement
covering any securities to be delivered in respect of the Purchase Contracts being settled and (y) provide a Prospectus in connection therewith, in each case in a form that may be used in connection with such Cash Merger Early Settlement.

  
 Within five Business Days of the completion
of a Cash Merger, the Company shall provide written notice to Holders of Units of such completion of a Cash Merger, which shall specify the deadline for submitting the notice to settle early in cash pursuant to this Section 5.04(b)(ii), the date on
which such Cash Merger Early Settlement shall occur (which date shall be 10 days after the date of such written notice by the Company, but which shall in no event be later than the fifth Business Day immediately preceding the Purchase Contract
Settlement Date) (the “Cash Merger Early Settlement Date”), the applicable Settlement Rate and the amount (per share of Common Stock) of cash, securities and other consideration receivable by the Holder upon settlement. In addition,
if a Holder effects a Cash Merger Early Settlement of some or all of its Purchase Contracts, such Holder shall be entitled to receive, on the Cash Merger Early Settlement Date, the aggregate amount of any accrued and unpaid Contract Adjustment
Payments since the immediately preceding Payment Date with respect to such Purchase Contracts. The Company shall pay such amount as a credit against the amount otherwise payable by the Holders to effect such Cash Merger Early Settlement. 

 
 Corporate Units Holders and Treasury Units Holders may
only effect Cash Merger Early Settlement pursuant to this Section 5.04(b)(ii) in integral multiples of 40 Corporate Units or Treasury Units, as the case may be. If the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate
Units, Corporate Units Holders may only effect Cash Merger Early Settlement pursuant to this Section 5.04(b)(ii) in multiples of 16,000 Corporate Units. Other than the provisions relating to timing of notice and settlement, which shall be as set
forth above, the provisions of Section 5.01(a) shall apply with respect to a Cash Merger Early Settlement pursuant to this Section 5.04(b)(ii). 
  
 In order to exercise the right to effect Cash Merger Early Settlement with respect to any Purchase Contracts, the Holder of the
Certificate evidencing Units shall deliver, no later than 5:00 p.m. (New York City time) on the third Business Day immediately preceding the Cash Merger Early Settlement Date, such Certificate to the Purchase 
  

 61 

 Contract Agent at the Corporate Trust Office duly endorsed for transfer to the Company or in blank with
the form of Election to Settle Early on the reverse thereof duly completed and accompanied by payment (payable to the Company in immediately available funds) in an amount equal to the product of (A) the Stated Amount times (B) the number of Purchase
Contracts with respect to which the Holder has elected to effect Cash Merger Early Settlement, less any credit in respect of Contract Adjustment Payments as set forth above. 
  
 If a Holder properly effects an effective Cash Merger Early Settlement in accordance with the provisions of
this Section 5.04(b)(ii), the Company will deliver (or will cause the Collateral Agent to deliver) to the Holder on the Cash Merger Early Settlement Date: 
  
 (A) the kind and amount of securities, cash and other property receivable upon such Cash Merger by a Holder of the number of shares of
Common Stock issuable on account of each Purchase Contract if the Purchase Contract Settlement Date had occurred immediately prior to such Cash Merger (based on the Settlement Rate in effect at such time), assuming such Holder of Common Stock is not
a Constituent Person or an Affiliate of a Constituent Person to the extent such Cash Merger provides for different treatment of Common Stock held by Affiliates of the Company and non-affiliates and such Holder failed to exercise its rights of
election, if any, as to the kind or amount of securities, cash and other property receivable upon such Cash Merger (provided that if the kind or amount of securities, cash and other property receivable upon such Cash Merger is not the same for each
non-electing share, then for the purpose of this Section 5.04(b)(ii), the kind and amount of securities, cash and other property receivable upon such Cash Merger by each non-electing share shall be deemed to be the kind and amount so receivable per
share by a plurality of the non-electing shares). For the avoidance of doubt, for the purposes of determining the Adjusted Applicable Market Value (in connection with determining the appropriate Settlement Rate to be applied in the foregoing
sentence), the date of the closing of the Cash Merger shall be deemed to be the Purchase Contract Settlement Date; 
  
 (B) the Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be, related to
the Purchase Contracts with respect to which the Holder is effecting a Cash Merger Early Settlement; and 
  

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 (C) if so required under the Securities Act, a Prospectus as contemplated by this Section
5.04(b)(ii). 
  
 (c) All calculations and determinations pursuant
to this Section 5.04 shall be made by the Company or its agent and the Purchase Contract Agent shall have no responsibility with respect thereto. 
  
 (d) The Corporate Units or the Treasury Units of the Holders who do not elect Cash Merger Early Settlement in accordance with the foregoing will continue
to remain outstanding and be subject to settlement on the Purchase Contract Settlement Date in accordance with the terms hereof. 
  
 Section 5.05. Notice of Adjustments and Certain Other Events. 
  
 (a) Whenever the Fixed Settlement Rate is adjusted as provided under Section 5.04(a), or the Settlement Rate is adjusted
under Section 5.04(b), the Company shall within 10 Business Days following the occurrence of an event that requires such adjustment (or if the Company is not aware of such occurrence, as soon as reasonably practicable after becoming so aware):

  
 (i) compute the adjusted Fixed Settlement
Rate or Settlement Rate, as the case may be, in accordance with Section 5.04 and prepare and transmit to the Purchase Contract Agent an Officers’ Certificate setting forth the Fixed Settlement Rate or Settlement Rate, as the case may be, the
method of calculation thereof in reasonable detail, and the facts requiring such adjustment and upon which such adjustment is based; and 
  
 (ii) provide a written notice to the Holders of the Units of the occurrence of such event and a statement in reasonable detail setting
forth the method by which the adjustment to the Fixed Settlement Rate or Settlement Rate, as the case may be, was determined and setting forth the adjusted Fixed Settlement Rate or Settlement Rate, as the case may be. 
  
 (b) The Purchase Contract Agent shall not at any time be under any duty or
responsibility to any Holder of Units to determine whether any facts exist which may require any adjustment of the Fixed Settlement Rate or Settlement Rate, as the case may be, or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed in making the same. The Purchase Contract Agent shall be fully authorized and protected in relying on any Officers’ Certificate delivered pursuant to Section 5.05(a)(i) and any
adjustment contained therein and the Purchase Contract Agent shall not be deemed to have knowledge of any adjustment unless and until it has received such certificate. The Purchase Contract Agent shall not be accountable with respect to the validity
or value (or the kind or amount) of any shares of Common Stock, or of any securities or property, which may at the time be issued 
  

 63 

 or delivered with respect to any Purchase Contract; and the Purchase Contract Agent makes no representation with respect
thereto. The Purchase Contract Agent shall not be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock pursuant to a Purchase Contract or to comply with any of the duties, responsibilities or covenants
of the Company contained in this Article. 
  
 Section 5.06.
Termination Event; Notice. 
  
 The Purchase Contracts and
all obligations and rights of the Company and the Holders thereunder, including, without limitation, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments (including any accrued and unpaid
Contract Adjustment Payments), if the Company shall have such obligation, and the rights and obligations of Holders to purchase Common Stock, shall immediately and automatically terminate, without the necessity of any notice or action by any Holder,
the Purchase Contract Agent or the Company, if, prior to or on the Purchase Contract Settlement Date, a Termination Event shall have occurred. 
  
 Upon and after the occurrence of a Termination Event, the Units shall thereafter represent the right to receive the Senior Notes, the Treasury Securities
or the appropriate Applicable Ownership Interests in the Treasury Portfolio, as the case may be, forming part of such Units, in accordance with the provisions of Section 5.04 of the Pledge Agreement. Upon the occurrence of a Termination Event, the
Company shall promptly but in no event later than two Business Days thereafter give written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as they appear in the Security Register. 
  
 Section 5.07. Early Settlement. 
  
 (a) Subject to and upon compliance with the provisions of this Section 5.07,
at the option of the Holder thereof, Purchase Contracts underlying Units may be settled early (“Early Settlement”) at any time on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the
Purchase Contract Settlement Date; provided that no Early Settlement will be permitted pursuant to this Section 5.07 unless, at the time such Early Settlement is effected, there is an effective Registration Statement with respect to any
securities to be issued and delivered in connection with such Early Settlement, if such a Registration Statement is required (in the view of counsel, which need not be in the form of a written opinion, for the Company) under the Securities Act. If
such a Registration Statement is so required, the Company covenants and agrees to use commercially reasonable efforts to (i) have in effect a Registration Statement covering any securities to be delivered in respect of the Purchase Contracts being
settled and (ii) provide a Prospectus in connection therewith, in each case in a form that may be used in connection with such Early Settlement. 
  

 64 

 (b) In order to exercise the right to effect Early Settlement with respect to any Purchase Contracts, the
Holder of the Certificate evidencing Units shall deliver, at any time prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date, such Certificate to the Purchase Contract Agent at
the Corporate Trust Office duly endorsed for transfer to the Company or in blank with the form of Election to Settle Early on the reverse thereof duly completed and accompanied by payment (payable to the Company in immediately available funds) in an
amount (the “Early Settlement Amount”) equal to the sum of: 
  
 (i) the product of (A) the Stated Amount times (B) the number of Purchase Contracts with respect to which the Holder has elected to effect Early Settlement, plus 
  
 (ii) if such delivery is made with respect to any Purchase
Contracts during the period from the close of business on any Record Date next preceding any Payment Date to the opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments payable on such Payment Date with respect
to such Purchase Contracts. 
  
 Except as provided in the
immediately preceding sentence, no payment shall be made upon Early Settlement of any Purchase Contract on account of any Contract Adjustment Payments accrued on such Purchase Contract or on account of any dividends on the Common Stock issued upon
such Early Settlement. If the foregoing requirements are first satisfied with respect to Purchase Contracts underlying any Units on or prior to 5:00 p.m. (New York City time) on a Business Day, such day shall be the “Early Settlement
Date” with respect to such Units and if such requirements are first satisfied after 5:00 p.m. (New York City time) on a Business Day or on a day that is not a Business Day, the “Early Settlement Date” with respect to such
Units shall be the next succeeding Business Day. 
  
 Upon the
receipt of such Certificate and Early Settlement Amount from the Holder, the Purchase Contract Agent shall pay to the Company such Early Settlement Amount, the receipt of which payment the Company shall confirm in writing. The Purchase Contract
Agent shall then, in accordance with Section 5.06 of the Pledge Agreement, notify the Collateral Agent that (A) such Holder has elected to effect an Early Settlement, which notice shall set forth the number of such Purchase Contracts as to which
such Holder has elected to effect Early Settlement, (B) the Purchase Contract Agent has received from such Holder, and paid to the Company as confirmed in writing by the Company, the related Early Settlement Amount and (C) all conditions to such
Early Settlement have been satisfied. 
  
 Holders of Treasury
Units may only effect Early Settlement pursuant to this Section 5.07 in integral multiples of 40 Treasury Units. If the Treasury 
  

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 Portfolio has replaced the Senior Notes as a component of the Corporate Units, Corporate Units Holders may only effect
Early Settlement pursuant to this Section 5.07 in integral multiples of 16,000 Corporate Units. 
  
 Upon Early Settlement of the Purchase Contracts, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment
Payments (including any accrued and unpaid Contract Adjustment Payments) with respect to such Purchase Contracts shall immediately and automatically terminate. 
  

(c) Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Company shall issue, and the Holder shall be entitled to receive,
newly issued shares of Common Stock equal to the Minimum Share Number, as adjusted from time to time pursuant to Section 5.04 on account of each Purchase Contract as to which Early Settlement is effected (the “Early Settlement
Rate”). 
  
 (d) No later than the third Business Day
after the applicable Early Settlement Date, the Company shall cause: 
  
 (i) the shares of Common Stock issuable upon Early Settlement of Purchase Contracts to be issued and delivered, together with payment in lieu of any fraction of a share, as provided in Section 5.09; and 
  
 (ii) the related Pledged Senior Notes or the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as applicable, in the case of Corporate Units, or the related Pledged Treasury Securities, in the case of Treasury Units, to be released from
the Pledge by the Collateral Agent, free and clear of the Company’s security interest therein, and transferred, in each case, to the Purchase Contract Agent for delivery to the Holder thereof or its designee. 
  
 (e) Upon Early Settlement of any Purchase Contracts, and subject to receipt
of shares of Common Stock from the Company and the Senior Notes, the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio or Treasury Securities, as the case may be, from the Securities
Intermediary, as applicable, the Purchase Contract Agent shall, in accordance with the instructions provided by the Holder thereof on the applicable form of Election to Settle Early on the reverse of the Certificate evidencing the related Units:

  
 (i) transfer to the Holder the Senior Notes,
the Applicable Ownership Interests (as specified in clause (i) of the Definition of such term) in the Treasury Portfolio or Treasury Securities, as the case may be, forming a part of such Units, 
  

 66 

 (ii) deliver to the Holder a certificate or certificates for the full number of shares of
Common Stock issuable upon such Early Settlement, together with payment in lieu of any fraction of a share, as provided in Section 5.09, and 
  
 (iii) if so required under the Securities Act, deliver a Prospectus for the shares of Common Stock issuable upon such Early Settlement as
contemplated by (a). 
  
 (f) In the event that Early Settlement is
effected with respect to Purchase Contracts underlying less than all the Units evidenced by a Certificate, upon such Early Settlement the Company shall execute and the Purchase Contract Agent shall execute on behalf of the Holder, authenticate and
deliver to the Holder thereof, at the expense of the Company, a Certificate evidencing the Units as to which Early Settlement was not effected. 
  
 (g) A Holder of a Unit who effects Early Settlement may elect to have the Senior Notes no longer a part of a Corporate Unit remarketed in accordance with
the provisions of Section 5.02. 
  
 Section 5.08. Intentionally
Omitted. 
  
 Section 5.09. No Fractional Shares.

  
 No fractional shares or scrip representing fractional shares
of Common Stock shall be issued or delivered upon settlement on the Purchase Contract Settlement Date, or upon Early Settlement or Cash Merger Early Settlement of any Purchase Contracts. If Certificates evidencing more than one Purchase Contract
shall be surrendered for settlement at one time by the same Holder, the number of full shares of Common Stock that shall be delivered upon settlement shall be computed on the basis of the aggregate number of Purchase Contracts evidenced by the
Certificates so surrendered. Instead of any fractional share of Common Stock that would otherwise be deliverable upon settlement of any Purchase Contracts on the Purchase Contract Settlement Date, or upon Early Settlement or Cash Merger Early
Settlement, the Company, through the Purchase Contract Agent, shall make a cash payment in respect of such fractional interest in an amount equal to the percentage of such fractional share times the Applicable Market Value calculated as if the date
of such settlement were the Purchase Contract Settlement Date. The Company shall provide the Purchase Contract Agent from time to time with sufficient funds to permit the Purchase Contract Agent to make all cash payments required by this Section
5.09 in a timely manner. 
  

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 Section 5.10. Charges and Taxes. 
  
 The Company will pay all stock transfer and similar taxes attributable to the initial issuance and delivery of the shares of
Common Stock pursuant to the Purchase Contracts; provided, however, that the Company shall not be required to pay any such tax or taxes which may be payable in respect of any exchange of or substitution for a Certificate evidencing a
Unit or any issuance of a share of Common Stock in a name other than that of the registered Holder of a Certificate surrendered in respect of the Units evidenced thereby, other than in the name of the Purchase Contract Agent, as custodian for such
Holder, and the Company shall not be required to issue or deliver such share certificates or Certificates unless or until the Person or Persons requesting the transfer or issuance thereof shall have paid to the Company the amount of such tax or
shall have established to the satisfaction of the Company that such tax has been paid. 
  
 Section 5.11. Contract Adjustment Payments. 
  
 (a) Subject to Section 5.11(d), the Company shall pay, on each Payment Date, the Contract Adjustment Payments payable in respect of each Purchase Contract to the Person in whose name a Certificate is registered at the
close of business on the Record Date relating to such Payment Date. The Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in the Borough of Manhattan, New York City maintained for that purpose. If the
book-entry system for the Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the Person entitled thereto at such Person’s address as it appears on the
Security Register, or by wire transfer to the account designated by such Person by a prior written notice to the Purchase Contract Agent. Contract Adjustment Payments payable for any period will be computed on the basis of a 360-day year of twelve
30-day months. The Contract Adjustment Payments will accrue from November 3, 2003. 
  
 (b) Upon the occurrence of a Termination Event, the Company’s obligation to pay future Contract Adjustment Payments (including any accrued Contract Adjustment Payments) shall cease. 
  
 (c) Each Certificate delivered under this Agreement upon registration of
transfer of or in exchange for or in lieu of (including as a result of a Collateral Substitution or the recreation of Corporate Units) any other Certificate shall carry the right to accrued and unpaid Contract Adjustment Payments, which right was
carried by the Purchase Contracts underlying such other Certificates. 
  
 (d) In the case of any Unit with respect to which Early Settlement or Cash Merger Early Settlement of the underlying Purchase Contract is effected on a date that is after any Record Date and prior to or on the next succeeding 
  

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 Payment Date, Contract Adjustment Payments otherwise payable on such Payment Date shall be payable on such Payment Date
notwithstanding such Early Settlement or Cash Merger Early Settlement, and such Contract Adjustment Payments shall be paid to the Person in whose name the Certificate evidencing such Unit is registered at the close of business on such Record Date.
Except as otherwise expressly provided in the immediately preceding sentence, and the right to receive accrued and unpaid Contract Adjustment Payments as set forth in Section 5.04(b)(ii), in the case of any Unit with respect to which Early
Settlement or Cash Merger Early Settlement of the underlying Purchase Contract is effected, Contract Adjustment Payments that would otherwise be payable after the Early Settlement or Cash Merger Early Settlement Date with respect to such Purchase
Contract shall not be payable. 
  
 (e) The Company’s
obligations with respect to Contract Adjustment Payments, if any, will be subordinated and junior in right of payment to the Company’s obligations under any Senior Indebtedness. 
  
 (f) In the event (x) of any payment by, or distribution of assets of, the Company of any kind or character, whether in cash,
property or securities, to creditors upon any dissolution, winding-up, liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, or (y) subject to the provisions
of Section 5.11(h) below, that (i) a default shall have occurred and be continuing with respect to the payment of principal, interest or any other monetary amounts due and payable on any Senior Indebtedness and such default shall have continued
beyond the period of grace, if any, specified in the instrument evidencing such Senior Indebtedness (and the Purchase Contract Agent shall have received written notice thereof from the Company or one or more holders of Senior Indebtedness or their
representative or representatives or the trustee or trustees under any indenture pursuant to which any such Senior Indebtedness may have been issued), or (ii) the maturity of any Senior Indebtedness shall have been accelerated because of a default
in respect of such Senior Indebtedness (and the Purchase Contract Agent shall have received written notice thereof from the Company or one or more holders of Senior Indebtedness or their representative or representatives or the trustee or trustees
under any indenture pursuant to which any such Senior Indebtedness may have been issued), then: 
  
 (i) the holders of all Senior Indebtedness shall first be entitled to receive, in the case of clause (x) above, payment of all amounts due
or to become due upon all Senior Indebtedness and, in the case of subclauses (i) and (ii) of clause (y) above, payment of all amounts due thereon, or provision shall be made for such payment in money or money’s worth, before the Holders of any
of the Units are entitled to receive any Contract Adjustment Payments on the Purchase Contracts underlying the Units; 
  

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 (ii) any payment by, or distribution of assets of, the Company of any kind or character,
whether in cash, property or securities, to which the Holders of any of the Units would be entitled except for the provisions of Section 5.11(e) through (q), including any such payment or distribution which may be payable or deliverable by reason of
the payment of any other indebtedness of the Company being subordinated to the payment of such Contract Adjustment Payments on the Purchase Contracts underlying the Units, shall be paid or delivered by the Person making such payment or distribution,
whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the representative or representatives of the holders of Senior Indebtedness or to the trustee or trustees under any indenture under which any instruments
evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of such Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all
Senior Indebtedness remaining unpaid after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness, before any payment or distribution is made of such Contract Adjustment Payments to
the Holders of such Units; and 
  
 (iii) in the
event that, notwithstanding the foregoing, any payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by
reason of the payment of any other indebtedness of the Company being subordinated to the payment of Contract Adjustment Payments on the Purchase Contracts underlying the Units, shall be received by the Purchase Contract Agent or the Holders of any
of the Units when such payment or distribution is prohibited pursuant to Section 5.11(e) through (q), such payment or distribution shall be paid over to the representative or representatives of the holders of Senior Indebtedness or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any such Senior Indebtedness may have been issued, ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid until all such Senior
Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness. 
  
 (g) For purposes of Section 5.11(e) through (q), the words “cash, property or securities” shall not be deemed to
include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other Person provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in
Section 5.11(e) through (q) with respect to such Contract Adjustment Payments on the Units to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) 
  

 70 

 the indebtedness or guarantee of indebtedness, as the case may be, that constitutes Senior Indebtedness is assumed by the
Person, if any, resulting from any such reorganization or readjustment, and (ii) the rights of the holders of the Senior Indebtedness are not, without the consent of each such holder adversely affected thereby, altered by such reorganization or
readjustment; 
  
 (h) Any failure by the Company to make any
payment on or perform any other obligation under Senior Indebtedness, other than any indebtedness incurred by the Company or assumed or guaranteed, directly or indirectly, by the Company for money borrowed (or any deferral, renewal, extension or
refunding thereof) or any indebtedness or obligation as to which the provisions of Section 5.11(e) through (q) shall have been waived by the Company in the instrument or instruments by which the Company incurred, assumed, guaranteed or otherwise
created such indebtedness or obligation, shall not be deemed a default or event of default if (i) the Company shall be disputing its obligation to make such payment or perform such obligation and (ii) either (A) no final judgment relating to such
dispute shall have been issued against the Company which is in full force and effect and is not subject to further review, including a judgment that has become final by reason of the expiration of the time within which a party may seek further
appeal or review, and (B) in the event a judgment that is subject to further review or appeal has been issued, the Company shall in good faith be prosecuting an appeal or other proceeding for review and a stay of execution shall have been obtained
pending such appeal or review. 
  
 (i) Subject to the irrevocable
payment in full of all Senior Indebtedness, the Holders of the Units shall be subrogated (equally and ratably with the holders of all obligations of the Company which by their express terms are subordinated to Senior Indebtedness of the Company to
the same extent as payment of the Contract Adjustment Payments in respect of the Purchase Contracts underlying the Units is subordinated and which are entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to
receive payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until all such Contract Adjustment Payments owing on the Units shall be paid in full, and as between the Company, its creditors
other than holders of such Senior Indebtedness and the Holders, no such payment or distribution made to the holders of Senior Indebtedness by virtue of Section 5.11(e) through (q) that otherwise would have been made to the Holders shall be deemed to
be a payment by the Company on account of such Senior Indebtedness, it being understood that the provisions of Section 5.11(e) through (q) are and are intended solely for the purpose of defining the relative rights of the Holders, on the one hand,
and the holders of Senior Indebtedness, on the other hand. 
  
 (j)
Nothing contained in Section 5.11(e) through (q) or elsewhere in this Agreement or in the Units is intended to or shall impair, as among the Company, its creditors other than the holders of Senior Indebtedness and the 
  

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 Holders, the obligation of the Company, which is absolute and unconditional, to pay to the Holders such Contract
Adjustment Payments on the Units as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders and creditors of the Company other than the holders of Senior
Indebtedness, nor shall anything herein or therein prevent the Purchase Contract Agent or any Holder from exercising all remedies otherwise permitted by applicable law upon default under this Agreement, subject to the rights, if any, under Section
5.11(e) through (q), of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
  
 (k) Upon payment or distribution of assets of the Company referred to in Section 5.11(e) through (q), the Purchase Contract
Agent and the Holders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which any such dissolution, winding up, liquidation or reorganization proceeding affecting the affairs of the Company is pending
or upon a certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors, liquidating trustee or Purchase Contract Agent or other person making any payment or distribution, delivered to the Purchase Contract Agent or to
the Holders, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to this Section 5.11(e) through (q). 
  
 (l) The Purchase Contract Agent shall be entitled to rely on the delivery to it of a written notice by a Person representing himself to be a holder of
Senior Indebtedness (or a trustee or representative on behalf of such holder) to establish that such notice has been given by a holder of Senior Indebtedness or a trustee or representative on behalf of any such holder or holders. In the event that
the Purchase Contract Agent determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to Section 5.11(e) through (q),
the Purchase Contract Agent may request such Person to furnish evidence to the reasonable satisfaction of the Purchase Contract Agent as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the rights of such Person under Section 5.11(e) through (q), and, if such evidence is not furnished, the Purchase Contract Agent may defer payment to such Person pending
judicial determination as to the right of such Person to receive such payment. 
  
 (m) Nothing contained in Section 5.11(e) through (q) shall affect the obligations of the Company to make, or prevent the Company from making, payment of the Contract Adjustment Payments, except as otherwise provided
in this Section 5.11(e) through (q). 
  

 72 

 (n) Each Holder of Units, by its acceptance thereof, authorizes and directs the Purchase Contract Agent
on its behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in Section 5.11(e) through (q) and appoints the Purchase Contract Agent its attorney-in-fact, as the case may be, for any and all such
purposes. 
  
 (o) The Company shall give prompt written notice to
the Purchase Contract Agent of any fact known to the Company that would prohibit the making of any payment of moneys to or by the Purchase Contract Agent in respect of the Units pursuant to the provisions of this Section. Notwithstanding the
provisions of Section 5.11(e) through (q) or any other provisions of this Agreement, the Purchase Contract Agent shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of moneys to or by the
Purchase Contract Agent, or the taking of any other action by the Purchase Contract Agent, unless and until the Purchase Contract Agent shall have received written notice thereof mailed or delivered to the Purchase Contract Agent at its
Institutional Trust Services department from the Company, any Holder, or the holder or representative of any Senior Indebtedness; provided that if at least two Business Days prior to the date upon which by the terms hereof any such moneys may
become payable for any purpose, the Purchase Contract Agent shall not have received with respect to such moneys the notice provided for in this Section, then, anything herein contained to the contrary notwithstanding, the Purchase Contract Agent
shall have full power and authority to receive such moneys and to apply the same to the purpose for which they were received and shall not be affected by any notice to the contrary that may be received by it within two Business Days prior to or on
or after such date. 
  
 (p) The Purchase Contract Agent in its
individual capacity shall be entitled to all the rights set forth in this Section with respect to any Senior Indebtedness at the time held by it, to the same extent as any other holder of Senior Indebtedness and nothing in this Agreement shall
deprive the Purchase Contract Agent of any of its rights as such holder. 
  
 (q) No right of any present or future holder of any Senior Indebtedness to enforce the subordination herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any noncompliance by the Company with the terms, provisions and covenants of this Agreement, regardless of any knowledge thereof which any such holder may have or be otherwise charged with. 
  
 (r) Nothing in this Section 5.11 shall apply to claims of, or payments to,
the Purchase Contract Agent under or pursuant to Section 7.07. 
  

 73 

 (s) With respect to the holders of Senior Indebtedness, (i) the duties and obligations of the Purchase
Contract Agent shall be determined solely by the express provisions of this Agreement; (ii) the Purchase Contract Agent shall not be liable to any such holders if it shall, acting in good faith, mistakenly pay over or distribute to the Holders or to
the Company or any other Person cash, property or securities to which any holders of Senior Indebtedness shall be entitled by virtue of this Section 5.11 or otherwise; (iii) no implied covenants or obligations shall be read into this Agreement
against the Purchase Contract Agent; and (iv) the Purchase Contract Agent shall not be deemed to be a fiduciary as to such holders. 
  
 ARTICLE 6 
 REMEDIES 

 
 Section 6.01. Unconditional Right of Holders to Receive Contract
Adjustment Payments and to Purchase Shares of Common Stock. 
  
 Each Holder of a Unit shall have the right, which is absolute and unconditional, (i) subject to Article 5, to receive each Contract Adjustment Payment with respect to the Purchase Contract comprising part of such Unit on the respective
Payment Date for such Unit and (ii) except upon and following a Termination Event, to purchase shares of Common Stock pursuant to such Purchase Contract and, in each such case, to institute suit for the enforcement of any such right to receive
Contract Adjustment Payments and the right to purchase shares of Common Stock, and such rights shall not be impaired without the consent of such Holder. 
  
 Section 6.02. Restoration of Rights and Remedies. 
  
 If any Holder has instituted any proceeding to enforce any right or remedy under this Agreement and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to such Holder, then and in every such case, subject to any determination in such proceeding, the Company and such Holder shall be restored severally and respectively to their former positions hereunder,
and thereafter all rights and remedies of such Holder shall continue as though no such proceeding had been instituted. 
  
 Section 6.03. Rights and Remedies Cumulative. 
  
 Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Certificates in the last paragraph of
Section 3.10, no right or remedy herein conferred upon or reserved to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every
other 
  

 74 

 right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 Section 6.04. Delay or Omission Not Waiver. 
  
 No delay or omission of any Holder to exercise any right upon a default or remedy upon a default shall impair any such right or remedy or constitute a
waiver of any such right. Every right and remedy given by this Article or by law to the Holders may be exercised from time to time, and as often as may be deemed expedient, by such Holders. 
  
 Section 6.05. Undertaking for Costs. 
  
 All parties to this Agreement agree, and each Holder of a Unit, by its
acceptance of such Unit shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Agreement, or in any suit against the Purchase Contract Agent for any action
taken, suffered or omitted by it as Purchase Contract Agent, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and costs against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided that the provisions of this Section shall not apply to any
suit instituted by the Purchase Contract Agent, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% of the Outstanding Units, or to any suit instituted by any Holder for the enforcement of interest on
any Senior Notes or Contract Adjustment Payments on or after the respective Payment Date therefor in respect of any Unit held by such Holder, or for enforcement of the right to purchase shares of Common Stock under the Purchase Contracts
constituting part of any Unit held by such Holder. 
  
 Section
6.06. Waiver of Stay or Extension 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 wherever enacted, now or at any time hereafter
in force, which may affect the covenants or the performance of this Agreement; 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 Purchase Contract Agent or the Holders, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  

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 ARTICLE 7 
 THE PURCHASE CONTRACT AGENT 
  
 Section 7.01. Certain Duties and Responsibilities. 
  
 (a) The Purchase Contract Agent: 
  
 (i) undertakes to perform, with respect to the Units, such duties and only such duties as are specifically set forth in this Agreement,
the Pledge Agreement and the Remarketing Agreement and no implied covenants or obligations shall be read into this Agreement, the Pledge Agreement or the Remarketing Agreement against the Purchase Contract Agent; and 
  
 (ii) in the absence of bad faith or gross negligence on its
part, may, with respect to the Units, conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Purchase Contract Agent and conforming to the
requirements of this Agreement or the Pledge Agreement or the Remarketing Agreement, as applicable, but in the case of any certificates or opinions which by any provision hereof are specifically required to be furnished to the Purchase Contract
Agent, the Purchase Contract Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement, the Pledge Agreement or the Remarketing Agreement, as applicable (but need not confirm or
investigate the accuracy of the mathematical calculations or other facts stated therein). 
  
 (b) No provision of this Agreement, the Pledge Agreement or the Remarketing Agreement shall be construed to relieve the Purchase Contract Agent from liability for its own grossly negligent action, its own grossly
negligent failure to act, or its own willful misconduct, except that: 
  
 (i) this Subsection shall not be construed to limit the effect of subsection (a) of this Section; 
  
 (ii) the Purchase Contract Agent shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it
shall be conclusively determined by a court of competent jurisdiction that the Purchase Contract Agent was grossly negligent in ascertaining the pertinent facts; and 
  
 (iii) no provision of this Agreement or the Pledge Agreement or the Remarketing Agreement shall require the
Purchase Contract Agent to expend or risk its own funds or otherwise incur any financial liability in 
  

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 the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  

(c) Whether or not therein expressly so provided, every provision of this Agreement, the Pledge Agreement and the Remarketing Agreement relating to the
conduct or affecting the liability of or affording protection to the Purchase Contract Agent shall be subject to the provisions of this Section. 
  
 (d) The Purchase Contract Agent is authorized to execute and deliver the Pledge Agreement and the Remarketing Agreement in its capacity as Purchase
Contract Agent. 
  
 Section 7.02. Notice of Default.

  
 Within 30 days after the occurrence of any default by the
Company hereunder of which a Responsible Officer of the Purchase Contract Agent has actual knowledge, the Purchase Contract Agent shall transmit by mail to the Company and the Holders of Units, as their names and addresses appear in the Security
Register, notice of such default hereunder, unless such default shall have been cured or waived. 
  
 Section 7.03. Certain Rights of Purchase Contract Agent. 
  

Subject to the provisions of Section 7.01: 
  
 (a) the Purchase Contract Agent may, in the absence of bad faith, conclusively rely and shall be fully protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, Senior Note, 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) any request
or direction of the Company mentioned herein shall be sufficiently evidenced by an Officers’ Certificate, Issuer Order or Issuer Request, and any resolution of the Board of Directors of the Company may be sufficiently evidenced by a Board
Resolution; 
  
 (c) whenever in the administration of this
Agreement, the Pledge Agreement or the Remarketing Agreement the Purchase Contract Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting to take any action hereunder, the Purchase Contract Agent
(unless other evidence be herein specifically prescribed in this Agreement) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate of the Company; 
  

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 (d) the Purchase Contract Agent may consult with counsel of its selection appointed with due care by it
hereunder and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
  
 (e) the Purchase Contract Agent 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 Purchase
Contract Agent, in its discretion, may make reasonable further inquiry or investigation into such facts or matters related to the execution, delivery and performance of the Purchase Contracts as it may see fit, and, if the Purchase Contract Agent
shall determine to make such further inquiry or investigation, it shall be entitled to examine the relevant books, records and premises of the Company, personally or by agent or attorney; 
  
 (f) the Purchase Contract Agent may execute any of the powers hereunder or perform any duties hereunder either directly or
by or through agents, attorneys, custodians or nominees or an Affiliate and the Purchase Contract Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney, custodian or nominee or an Affiliate appointed with
due care by it hereunder; 
  
 (g) the Purchase Contract Agent
shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Holders pursuant to this Agreement, unless such Holders shall have offered to the Purchase Contract Agent
security or indemnity reasonably satisfactory to the Purchase Contract Agent against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; 
  
 (h) the Purchase Contract Agent shall not be liable for any action taken,
suffered, or omitted to be taken by it in the absence of bad faith or gross negligence by it; 
  
 (i) the Purchase Contract Agent shall not be deemed to have notice of any default hereunder unless a Responsible Officer of the Purchase Contract Agent has actual knowledge thereof or unless written notice of any
event that is in fact such a default is received by the Purchase Contract Agent at the Corporate Trust Office of the Purchase Contract Agent, and such notice references the Units and this Agreement; 
  

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 (j) the Purchase Contract Agent 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 Agreement, 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; 
  
 (k) the rights, privileges, protections, immunities and benefits given to the Purchase Contract Agent, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Purchase Contract Agent in each of its capacities hereunder, and to each agent, custodian and other Person employed to act hereunder; and 
  
 (l) The Purchase Contract Agent shall not be required to initiate or conduct
any litigation or collection proceedings hereunder and shall have no responsibilities with respect to any default hereunder except as expressly set forth herein. 
  
 Section 7.04. Not Responsible for Recitals or Issuance of Units. 
  
 The recitals contained herein, in the Pledge Agreement, the Remarketing
Agreement and in the Certificates shall be taken as the statements of the Company, and the Purchase Contract Agent assumes no responsibility for their accuracy or validity. The Purchase Contract Agent makes no representations as to the validity or
sufficiency of either this Agreement or of the Units, or of the Pledge Agreement or the Pledge or the Collateral and shall have no responsibility for perfecting or maintaining the perfection of any security interest in the Collateral. The Purchase
Contract Agent shall not be accountable for the use or application by the Company of the proceeds in respect of the Purchase Contracts. 
  
 Section 7.05. May Hold Units. 
  
 Any Security Registrar or any other agent of the Company, or the Purchase Contract Agent and its Affiliates, in their individual or any other capacity,
may become the owner or pledgee of Units and may otherwise deal with the Company, the Collateral Agent or any other Person with the same rights it would have if it were not Security Registrar or such other agent, or the Purchase Contract Agent. The
Company may become the owner or pledgee of Units. 
  
 Section
7.06. Money Held in Custody. 
  
 Money held by the
Purchase Contract Agent in custody hereunder need not be segregated from the Purchase Contract Agent’s other funds except to the extent required by law or provided herein. The Purchase Contract Agent shall be under no obligation to invest or
pay interest on any money received by it hereunder except as otherwise provided hereunder or agreed in writing with the Company. 
  

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 Section 7.07. Compensation and Reimbursement. 
  
 The Company agrees: 
  
 (a) to pay to the Purchase Contract Agent compensation for all services
rendered by it hereunder, under the Pledge Agreement and under the Remarketing Agreement as the Company and the Purchase Contract Agent shall from time to time agree in writing; 
  
 (b) except as otherwise expressly provided for herein, to reimburse the Purchase Contract Agent upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Purchase Contract Agent in accordance with any provision of this Agreement, the Pledge Agreement and the Remarketing Agreement (including the reasonable compensation and the
expenses and disbursements of its agents and counsel) in connection with the negotiation, preparation, execution and delivery and performance of this Agreement, the Pledge Agreement and the Remarketing Agreement and any modification, supplement or
waiver of any of the terms thereof, except any such expense, disbursement or advance as may be attributable to its gross negligence, willful misconduct or bad faith; and 
  
 (c) to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent (and each of its directors,
officers, agents and employees (collectively, the “Indemnitees”) for, and to hold it harmless against, any loss, claim, damage, fine, penalty, liability or expense (including reasonable fees and expenses of counsel) incurred without
gross negligence, willful misconduct or bad faith on its part, arising out of or in connection with the acceptance or administration of its duties hereunder and under the Pledge Agreement and the Remarketing Agreement, including the
Indemnitees’ reasonable costs and expenses of defending themselves against any claim (whether asserted by the Company, a Holder or any other person) or liability in connection with the exercise or performance of any of the Purchase Contract
Agent’s powers or duties hereunder or thereunder. 
  
 The
provisions of this Section shall survive the resignation and removal of the Purchase Contract Agent and the termination of this Agreement. 
  
 Section 7.08. Corporate Purchase Contract Agent Required, Eligibility. 
  
 There shall at all times be a Purchase Contract Agent hereunder which shall be a Person organized and doing business under
the laws of the United States of America, any State thereof or the District of Columbia, authorized under 
  

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 such laws to exercise corporate trust powers, having (or being a member of a bank holding company having) a combined
capital and surplus of at least $50,000,000, subject to supervision or examination by Federal or State authority and having a corporate trust office in the Borough of Manhattan, New York City, if there be such a Person in the Borough of Manhattan,
New York City, qualified and eligible under this Article and willing to act on reasonable terms. If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Purchase Contract Agent
shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
  
 Section 7.09. Resignation and Removal; Appointment of Successor. 
  
 (a) No resignation or removal of the Purchase Contract Agent and no
appointment of a successor Purchase Contract Agent pursuant to this Article shall become effective until the acceptance of appointment by the successor Purchase Contract Agent in accordance with the applicable requirements of Section 7.10.

  
 (b) The Purchase Contract Agent may resign at any time by
giving written notice thereof to the Company 60 days prior to the effective date of such resignation. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase
Contract Agent within 30 days after the giving of such notice of resignation, the resigning Purchase Contract Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract
Agent. 
  
 (c) The Purchase Contract Agent may be removed at any
time by Act of the Holders of a majority in number of the Outstanding Units delivered to the Purchase Contract Agent and the Company. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been
delivered to the Purchase Contract Agent within 30 days after such Act, the Purchase Contract Agent being removed may petition any court of competent jurisdiction for the appointment at the expense of the Company of a successor Purchase Contract
Agent. 
  
 (d) If at any time: 
  
 (i) the Purchase Contract Agent fails to comply with Section
310(b) of the TIA, as if the Purchase Contract Agent were an indenture trustee under an indenture qualified under the TIA, and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a
Unit for at least six months; 
  

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 (ii) the Purchase Contract Agent shall cease to be eligible under Section 7.08 and shall
fail to resign after written request therefor by the Company or by any such Holder; or 
  
 (iii) the Purchase Contract Agent shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the
Purchase Contract Agent or of its property shall be appointed or any public officer shall take charge or control of the Purchase Contract Agent or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

 
 then, in any such case, (i) the Company by a Board Resolution may remove
the Purchase Contract Agent, or (ii) any Holder who has been a bona fide Holder of a Unit for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the
Purchase Contract Agent and the appointment of a successor Purchase Contract Agent. 
  
 (e) If the Purchase Contract Agent shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Purchase Contract Agent for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Purchase Contract Agent and shall comply with the applicable requirements of Section 7.10. If no successor Purchase Contract Agent shall have been so appointed by the Company and accepted appointment in the manner
required by Section 7.10, any Holder who has been a bona fide Holder of a Unit for at least six months, on behalf of itself and all others similarly situated, or the Purchase Contract Agent may petition at the expense of the Company any court of
competent jurisdiction for the appointment of a successor Purchase Contract Agent. 
  
 (f) The Company shall give, or shall cause such successor Purchase Contract Agent to give, notice of each resignation and each removal of the Purchase Contract Agent and each appointment of a successor Purchase
Contract Agent by mailing written notice of such event by first-class mail, postage prepaid, to all Holders as their names and addresses appear in the applicable Security Register. Each notice shall include the name of the successor Purchase
Contract Agent and the address of its Corporate Trust Office. 
  

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 Section 7.10. Acceptance Of Appointment By Successor. 
  
 (a) In case of the appointment hereunder of a successor Purchase Contract
Agent, every such successor Purchase Contract Agent so appointed shall execute, acknowledge and deliver to the Company and to the retiring Purchase Contract Agent an instrument accepting such appointment, and thereupon the resignation or removal of
the retiring Purchase Contract Agent shall become effective and such successor Purchase Contract Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, agencies and duties of the retiring Purchase
Contract Agent; but, on the request of the Company or the successor Purchase Contract Agent, such retiring Purchase Contract Agent shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Purchase Contract
Agent all the rights, powers and trusts of the retiring Purchase Contract Agent and duly assign, transfer and deliver to such successor Purchase Contract Agent all property and money held by such retiring Purchase Contract Agent hereunder.

  
 (b) Upon request of any such successor Purchase Contract
Agent, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Purchase Contract Agent all such rights, powers and agencies referred to in (a) of this Section. 
  
 (c) No successor Purchase Contract Agent shall accept its appointment unless
at the time of such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this Article. 
  
 Section 7.11. Merger, Conversion, Consolidation Or Succession To Business. 
  
 Any Person into which the Purchase Contract Agent may be merged or converted or with which it may be consolidated, or any
Person resulting from any merger, conversion or consolidation to which the Purchase Contract Agent shall be a party, or any Person succeeding to all or substantially all the corporate trust business of the Purchase Contract Agent, shall be the
successor of the Purchase Contract Agent hereunder, provided that such Person shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties
hereto. In case any Certificates shall have been authenticated and executed on behalf of the Holders, but not delivered, by the Purchase Contract Agent then in office, any successor by merger, conversion or consolidation to such Purchase Contract
Agent may adopt such authentication and execution and deliver the Certificates so authenticated and executed with the same effect as if such successor Purchase Contract Agent had itself authenticated and executed such Units. 
  

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 Section 7.12. Preservation of Information; Communications to Holders. 
  
 (a) The Purchase Contract Agent shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders received by the Purchase Contract Agent in its capacity as Security Registrar. 
  
 (b) If three or more Holders (herein referred to as “Applicants”) apply in writing to the Purchase Contract Agent, and furnish to the
Purchase Contract Agent reasonable proof that each such applicant has owned a Unit for a period of at least six months preceding the date of such application, and such application states that the applicants desire to communicate with other Holders
with respect to their rights under this Agreement or under the Units and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Purchase Contract Agent shall mail to all the Holders
copies of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Purchase Contract Agent of the materials to be mailed and of payment, or provision for the payment, of the
reasonable expenses of such mailing. 
  
 Section 7.13. No
Obligations of Purchase Contract Agent. 
  
 Except to the
extent otherwise expressly provided in this Agreement, the Purchase Contract Agent assumes no obligations and shall not be subject to any liability under this Agreement, the Pledge Agreement, the Remarketing Agreement or any Purchase Contract in
respect of the obligations of the Holder of any Unit thereunder. The Company agrees, and each Holder of a Certificate, by its acceptance thereof, shall be deemed to have agreed, that the Purchase Contract Agent’s execution of the Certificates
on behalf of the Holders shall be solely as agent and attorney-in-fact for the Holders, and that the Purchase Contract Agent shall have no obligation to perform such Purchase Contracts on behalf of the Holders, except to the extent expressly
provided in Article Five hereof. Anything contained in this Agreement to the contrary notwithstanding, in no event shall the Purchase Contract Agent or its officers, directors, employees or agents be liable under this Agreement, the Pledge Agreement
or the Remarketing Agreement to any third party for indirect, incidental, special, punitive, or consequential loss or damage of any kind whatsoever, including lost profits, whether or not the likelihood of such loss or damage was known to the
Purchase Contract Agent and regardless of the form of action. 
  
 Section 7.14. Tax Compliance. 
  
 (a) The
Purchase Contract Agent, on its own behalf and on behalf of the Company, will comply with all applicable certification, information reporting and withholding (including “backup” withholding) requirements imposed by applicable tax laws,
regulations or administrative practice with respect to (i) any payments made with respect to the Units or (ii) the issuance, delivery, holding, transfer, redemption or exercise of rights under the Units. Such compliance shall 
  

 84 

 include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts
required to be withheld to the appropriate taxing authority or its designated agent. 
  
 (b) The Purchase Contract Agent shall comply in accordance with the terms hereof with any written direction received from the Company with respect to the execution or certification of any required documentation and
the application of such requirements to particular payments or Holders or in other particular circumstances, and may for purposes of this Agreement conclusively rely on any such direction in accordance with the provisions of Section 7.01(a) hereof.

  
 (c) The Purchase Contract Agent shall maintain all appropriate
records documenting compliance with such requirements, and shall make such records available, on written request, to the Company or its authorized representative within a reasonable period of time after receipt of such request. 
  
 ARTICLE 8 
 SUPPLEMENTAL AGREEMENTS 
  
 Section 8.01. Supplemental Agreements Without Consent of Holders. 
  
 Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Purchase Contract Agent, at
any time and from time to time, may enter into one or more agreements supplemental hereto, in form satisfactory to the Company and the Purchase Contract Agent, to: 
  
 (a) evidence the succession of another Person to the Company, and the assumption by any such successor of the covenants of
the Company herein and in the Certificates; 
  
 (b) evidence and
provide for the acceptance of appointment hereunder by a successor Purchase Contract Agent; 
  
 (c) add to the covenants of the Company for the benefit of the Holders, or surrender any right or power herein conferred upon the Company; 
  
 (d) make provision with respect to the rights of Holders pursuant to the requirements of Section 5.04(b); 
  
 (e) except as provided for in Section 5.04, cure any ambiguity (or formal
defect), or correct or supplement any provisions herein which may be inconsistent with any other provisions herein; or 
  

 85 

 (f) make any other provisions with respect to such matters or questions arising under this Agreement,
provided that such action shall not adversely affect the interests of the Holders in any material respect. 
  
 Section 8.02. Supplemental Agreements with Consent of Holders. 
  
 With the consent of the Holders of not less than a majority of the Outstanding Units voting together as one class, including
without limitation the consent of the Holders obtained in connection with a tender or an exchange offer, by Act of said Holders delivered to the Company and the Purchase Contract Agent, the Company, when duly authorized and the Purchase Contract
Agent may enter into an agreement or agreements supplemental hereto for the purpose of modifying in any manner the terms of the Purchase Contracts, or the provisions of this Agreement or the rights of the Holders in respect of the Units;
provided, however, that, except as contemplated herein, no such supplemental agreement shall, without the unanimous consent of the Holders of each outstanding Purchase Contract affected thereby, 
  
 (a) change any Payment Date; 
  
 (b) change the amount or the type of Collateral required to be Pledged to
secure a Holder’s obligations under the Purchase Contract, unless such change is not adverse to the Holders, impair the right of the Holder of any Purchase Contract to receive distributions on the related Collateral or otherwise adversely
affect the Holder’s rights in or to such Collateral or adversely alter the rights in or to such Collateral; 
  
 (c) impair the right to institute suit for the enforcement of any Purchase Contract or any Contract Adjustment Payments; 
  
 (d) reduce the number of shares of Common Stock or the amount of any other
property to be purchased pursuant to any Purchase Contract, increase the price to purchase shares of Common Stock or any other property upon settlement of any Purchase Contract or change the Purchase Contract Settlement Date or the right to Early
Settlement or Cash Merger Early Settlement or otherwise adversely affect the Holder’s rights under the Purchase Contract; 
  
 (e) reduce any Contract Adjustment Payments or change any place where, or the coin or currency in which, any Contract Adjustment Payment is payable; or

  
 (f) reduce the percentage of the outstanding Purchase
Contracts the consent of whose Holders is required for any modification or amendment to the provisions of this Agreement, the Purchase Contracts or the Pledge Agreement; 
  

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 provided that if any amendment or proposal referred to above would adversely affect only the Corporate Units or
the Treasury Units, then only the affected class of Holders as of the record date for the Holders entitled to vote thereon will be entitled to vote on such amendment or proposal, and such amendment or proposal shall not be effective except with the
consent of Holders of not less than a majority of such class; and provided, further, that the unanimous consent of the Holders of each outstanding Purchase Contract of such class affected thereby shall be required to approve any
amendment or proposal specified in clauses (a) through (f) above. 
  
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental agreement, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 Section 8.03. Execution of Supplemental Agreements. 
  
 In executing, or accepting the additional agencies created by, any
supplemental agreement permitted by this Article or the modifications thereby of the agencies created by this Agreement, the Purchase Contract Agent shall be provided, and (subject to Section 7.01) shall be fully authorized and protected in relying
upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental agreement is authorized or permitted by this Agreement and that any and all conditions precedent to the execution and delivery of such
supplemental agreement have been satisfied. The Purchase Contract Agent may, but shall not be obligated to, enter into any such supplemental agreement which affects the Purchase Contract Agent’s own rights, duties or immunities under this
Agreement or otherwise. 
  
 Section 8.04. Effect of
Supplemental Agreements. 
  
 Upon the execution of any
supplemental agreement under this Article, this Agreement shall be modified in accordance therewith, and such supplemental agreement shall form a part of this Agreement for all purposes; and every Holder of Certificates theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered hereunder, shall be bound thereby. 
  
 Section 8.05. Reference to Supplemental Agreements. 
  
 Certificates authenticated, executed on behalf of the Holders and delivered after the execution of any supplemental agreement pursuant to this Article
may, and shall if required by the Purchase Contract Agent, bear a notation in form approved by the Purchase Contract Agent as to any matter provided for in such supplemental agreement. If the Company shall so determine, new Certificates so modified
as to conform, in the opinion of the Purchase Contract Agent and the Company, to any such supplemental agreement may be prepared and executed by the Company and authenticated, executed on behalf of the Holders and delivered by the Purchase Contract
Agent in exchange for outstanding Certificates. 
  

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 ARTICLE 9 
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
  
 Section 9.01. Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except under Certain Conditions.

  
 The Company covenants that it will not consolidate with,
convert into, or merge with and into, any other corporation or sell, assign, transfer, lease or convey all or substantially all of its properties and assets to any Person, unless: 
  
 (a) either the Company shall be the continuing corporation, or the successor (if other than the Company) shall be a
corporation organized and existing under the laws of the United States of America or a State thereof or the District of Columbia and such corporation shall expressly assume all the obligations of the Company under the Purchase Contracts, this
Agreement, the Pledge Agreement, the Indenture (including any supplement thereto) and the Remarketing Agreement by one or more supplemental agreements in form reasonably satisfactory to the Purchase Contract Agent and the Collateral Agent, executed
and delivered to the Purchase Contract Agent and the Collateral Agent by such corporation; and 
  
 (b) the Company or such successor corporation, as the case may be, shall not, immediately after such consolidation, conversion, merger, sale, assignment, transfer, lease or conveyance, be in default of payment
obligations under the Purchase Contracts, this Agreement, the Pledge Agreement, the Indenture (including any supplement thereto) or the Remarketing Agreement or in material default in the performance of any other covenants under any of the foregoing
agreements. 
  
 Section 9.02. Rights and Duties of Successor
Corporation. 
  
 In case of any such merger, consolidation,
share exchange, sale, assignment, transfer, lease or conveyance and upon any such assumption by a successor corporation in accordance with Section 9.01, such successor corporation shall succeed to and be substituted for the Company with the same
effect as if it had been named herein as the Company. Such successor corporation thereupon may cause to be signed, and may issue either in its own name or in the name of The PMI Group, Inc., any or all of the Certificates evidencing Units issuable
hereunder which theretofore shall not have been signed by the Company and delivered to the Purchase Contract Agent; and, upon the order of such successor corporation, instead of the Company, and subject to all the terms, 
  

 88 

 conditions and limitations in this Agreement prescribed, the Purchase Contract Agent shall authenticate and execute on
behalf of the Holders and deliver any Certificates which previously shall have been signed and delivered by the officers of the Company to the Purchase Contract Agent for authentication and execution, and any Certificate evidencing Units which such
successor corporation thereafter shall cause to be signed and delivered to the Purchase Contract Agent for that purpose. All the Certificates issued shall in all respects have the same legal rank and benefit under this Agreement as the Certificates
theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Certificates had been issued at the date of the execution hereof. 
  
 In case of any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance, such change in
phraseology and form (but not in substance) may be made in the Certificates evidencing Units thereafter to be issued as may be appropriate. 
  
 Section 9.03. Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent. 
  
 The Purchase Contract Agent, subject to Section 7.01 and Section 7.03, shall
receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance, and any such assumption, complies with the provisions of
this Article and that all conditions precedent to the consummation of any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance have been met. 
  
 ARTICLE 10 
 Covenants 
  
 Section 10.01. Performance Under
Purchase Contracts. 
  
 The Company covenants and agrees for
the benefit of the Holders from time to time of the Units that it will duly and punctually perform its obligations under the Purchase Contracts in accordance with the terms of the Purchase Contracts and this Agreement. 
  
 Section 10.02. Maintenance of Office or Agency. 
  
 The Company will maintain in the Borough of Manhattan, New York City an
office or agency where Certificates may be presented or surrendered for acquisition of shares of Common Stock upon settlement of the Purchase Contracts on the Purchase Contract Settlement Date or upon Early Settlement or Cash 
  

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 Merger Early Settlement and for transfer of Collateral upon occurrence of a Termination Event, where Certificates may be
surrendered for registration of transfer or exchange, for a Collateral Substitution or recreation of Corporate Units and where notices and demands to or upon the Company in respect of the Units and this Agreement may be served. The Company will give
prompt written notice to the Purchase Contract Agent of the location, and any change in the location, of such office or agency. The Company initially designates the Corporate Trust Office of the Purchase Contract Agent as such office of the Company.
If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Purchase Contract Agent with the address thereof, such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office, and the Company hereby appoints the Purchase Contract Agent as its agent to receive all such presentations, surrenders, notices and demands. 
  
 The Company may also from time to time designate one or more other offices or agencies where Certificates 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, New York City for such purposes. The Company will give prompt written notice to the Purchase Contract Agent of any such designation or rescission and of any change in the location of any such other office or
agency. The Company hereby designates as the place of payment for the Units the Corporate Trust Office and appoints the Purchase Contract Agent at its Corporate Trust Office as paying agent in such city. 
  
 Section 10.03. Company to Reserve Common Stock. 
  
 The Company shall at all times prior to the Purchase Contract Settlement
Date reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock the full number of shares of Common Stock issuable against tender of payment in respect of all Purchase Contracts constituting a part of
the Units evidenced by Outstanding Certificates. 
  
 Section
10.04. Covenants as to Common Stock. 
  
 The Company
covenants that all shares of Common Stock which may be issued against tender of payment in respect of any Purchase Contract constituting a part of the Outstanding Units will, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable. 
  

 90 

 Section 10.05. Statements of Officers of the Company as to Default. 
  
 The Company will deliver to the Purchase Contract Agent, within 120 days
after the end of each fiscal year of the Company (which as of the date hereof is December 31) ending after the date hereof, an Officers’ Certificate, one of the signers of which is the chief executive, chief financial or chief accounting
officer, 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 hereof, 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 10.06. ERISA.  
  
 Each Holder from time to time of the Units that is a Plan or who used assets of a Plan to purchase Units hereby represents that either (i) no portion of the assets used by such Holder to acquire the Corporate Units constitutes assets of the
Plan or (ii) the purchase or holding of the Corporate Units by such purchaser or transferee will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or similar violation under any applicable
laws. 
  
 Section 10.07. Tax Treatment. The Company
covenants and agrees, for United States federal, state and local income and franchise tax purposes, to (i) treat a Holder’s acquisition of the Corporate Units as the acquisition of the Senior Note and Purchase Contract constituting the
Corporate Units and (ii) treat each Holder as the owner of the applicable interest in the Collateral Account, including the Senior Notes and Applicable Ownership Interests in the Treasury Portfolio or the Treasury Securities. 
  
 SIGNATURES ON THE FOLLOWING PAGE 
  

 91 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and
year 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,
     as Purchase Contract Agent

		
	 By:
	 	 /s/ Michael Pitfick

	 	 	 Name:
	 	 Michael Pitfick

	 	 	 Title:
	 	 Assistant Vice President

 EXHIBIT A 
  

(FORM OF FACE OF CORPORATE UNITS CERTIFICATE) 
  
 For inclusion in Global Certificates only – THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS THE NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS
CERTIFICATE IS EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A
TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.] 
  

			
	 No.                 
	  	CUSIP No.                 

  
 Number of Corporate Units:
                         
  
 THE PMI GROUP, INC. 
 Corporate Units

  
 This Corporate Units Certificate certifies that [Cede &
Co.] is the registered Holder of the number of Corporate Units set forth above [for inclusion in Global Certificates only – or such other number of Corporate Units reflected in the Schedule of Increases or Decreases in the Global Certificate
attached hereto]. Each Corporate Unit consists of (i) either (a) the beneficial ownership by the 
  

 A-1 

 Holder of $25 principal amount of Senior Notes due November 15, 2008 (the “Senior Notes”) of The PMI
Group, Inc., a Delaware corporation (the “Company”), subject to the Pledge of such Senior Note by such Holder pursuant to the Pledge Agreement, or (b) upon the occurrence of a Special Event Redemption prior to the Purchase Contract
Settlement Date or a Successful Remarketing of the Senior Notes prior to the Final Remarketing Date, the Applicable Ownership Interests, subject to the pledge of the appropriate Applicable Ownership Interests (as specified in clause (i) of the
definition of such term) in the Treasury Portfolio by such Holder pursuant to the Pledge Agreement, and (ii) the rights and obligations of the Holder under one Purchase Contract with the Company. All capitalized terms used herein which are defined
in the Purchase Contract Agreement (as defined on the reverse hereof) have the meaning set forth therein. 
  
 Pursuant to the Pledge Agreement, the Senior Notes or the appropriate Applicable Ownership Interests (as specified in clause (i) of the definition of such
term) in the Treasury Portfolio, as the case may be, constituting part of each Corporate Unit evidenced hereby have been pledged to the Collateral Agent, for the benefit of the Company, to secure the obligations of the Holder under the Purchase
Contract comprising part of such Corporate Unit. 
  
 The Pledge
Agreement provides that all payments of the principal amount with respect to any of the Pledged Senior Notes (as defined in the Pledge Agreement) or the appropriate Applicable Ownership Interests (as specified in clause (i) of the definition of such
term) in the Treasury Portfolio, as the case may be, or interest or distributions on any Pledged Senior Notes or the appropriate Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio,
as the case may be, constituting part of the Corporate Units received by the Securities Intermediary shall be paid by wire transfer in same day funds (i) in the case of (A) interest on Pledged Senior Notes or distributions with respect to the
appropriate Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio, as the case may be, and (B) any payments of the principal amount of any Senior Notes or with respect to the
appropriate Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, that have been released from the Pledge pursuant to the Pledge Agreement, to the Purchase Contract
Agent to the account designated by the Purchase Contract Agent, no later than 2:00 p.m., New York City time, on the Business Day such payment is received by the Securities Intermediary (provided that in the event such payment is received by the
Securities Intermediary on a day that is not a Business Day or after 12:30 p.m., New York City time, on a Business Day, then such payment shall be made no later than 10:30 a.m., New York City time, on the next succeeding Business Day) and (ii) in
the case of payments with respect to the principal amount of the Pledged Senior Notes or with respect to the appropriate Applicable Ownership Interests (as specified in clause (i) of the 
  

 A-2 

 definition of such term) in the Treasury Portfolio, to the Company on the Purchase Contract Settlement Date (as described
herein) in accordance with the terms of the Pledge Agreement, in full satisfaction of the respective obligations of the Holders of the Corporate Units of which such Pledged Senior Notes or the Applicable Ownership Interests (as specified in clause
(i) of the definition of such term) in the Treasury Portfolio, as the case may be, are a part under the Purchase Contracts forming a part of such Corporate Units. Interest on the Senior Notes and distributions on the appropriate Applicable Ownership
Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio, as the case may be, forming part of a Corporate Units evidenced hereby, which are payable quarterly in arrears on February 15, May 15, August 15, and
November 15 of each year, commencing February 15, 2004 (a “Payment Date”), shall, subject to receipt thereof by the Purchase Contract Agent from the Securities Intermediary, be paid to the Person in whose name this Corporate Units
Certificate (or a Predecessor Corporate Units Certificate) is registered at the close of business on the Record Date for such Payment Date. 
  
 Each Purchase Contract evidenced hereby obligates the Holder of this Corporate Units Certificate to purchase, and the Company to sell, on November 15,
2006, (the “Purchase Contract Settlement Date”), at a price equal to $25 (the “Stated Amount”), a number of newly issued shares of common stock, par value $0.01 per share (“Common Stock”), of the
Company, equal to the Settlement Rate, unless on or prior to the Purchase Contract Settlement Date there shall have occurred a Termination Event or an Early Settlement or Cash Merger Early Settlement with respect to such Purchase Contract, all as
provided in the Purchase Contract Agreement and more fully described on the reverse hereof. The purchase price (the “Purchase Price”) for the shares of Common Stock purchased pursuant to each Purchase Contract evidenced hereby, if
not paid earlier, shall be paid on the Purchase Contract Settlement Date by application of payment received in respect of the principal amount with respect to any Pledged Senior Notes pursuant to the Remarketing or the appropriate Applicable
Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, pledged to secure the obligations under such Purchase Contract of the Holder of the Corporate Units of which such Purchase
Contract is a part. 
  
 Each Purchase Contract evidenced hereby
obligates the holder to agree, for United States federal, state and local income and franchise tax purposes, to (i) treat an acquisition of the Corporate Units as an acquisition of the Senior Notes and Purchase Contracts constituting the Corporate
Units and (ii) treat itself as owner of the applicable interest in the Collateral Account, including the Senior Notes and the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio.

  

 A-3 

 The Company shall pay, on each Payment Date, in respect of each Purchase Contract forming part of a
Corporate Unit evidenced hereby, an amount (the “Contract Adjustment Payments”) equal to 2.875% per year of the Stated Amount. Such Contract Adjustment Payments shall be payable to the Person in whose name this Corporate Units
Certificate is registered at the close of business on the Record Date for such Payment Date. 
  
 Interest on the Senior Notes and distributions on the Applicable Ownership Interests (as specified in clause (ii) of the definition of such term) and the Contract Adjustment Payments will be payable at the office of
the Purchase Contract Agent in New York City. If the book-entry system for the Corporate Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the Person entitled
thereto at such Person’s address as it appears on the Security Register, or by wire transfer to the account designated by such Person by a prior written notice to the Purchase Contract Agent. 
  
 Reference is hereby made to the further provisions set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 Unless the certificate of authentication hereon has been executed by the Purchase Contract Agent by manual signature, this Corporate Units Certificate
shall not be entitled to any benefit under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any purpose. 
  

 A-4 

 IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to be duly
executed. 
  

			
	THE PMI GROUP, INC.
		
	By:	 	  

	 	 	Name:
	 	 	Title:
	
	HOLDER SPECIFIED ABOVE (as to obligations of such Holder under the Purchase Contracts)
		
	By:	 	THE BANK OF NEW YORK, not individually but solely as attorney-in-fact of such Holder
		
	By:	 	  

	 	 	Name:
	 	 	Title:

  

			
	Dated:	 	  

  

 A-5 

 CERTIFICATE OF AUTHENTICATION 
 OF PURCHASE CONTRACT AGENT 
  
 This is one of the Corporate Units Certificates referred to in the within mentioned Purchase Contract Agreement. 
  

			
	 By:
	 	 THE BANK OF NEW YORK,
 as Purchase Contract Agent

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

			
	Dated:	 	  

  

 A-6 

 (FORM OF REVERSE OF CORPORATE UNITS CERTIFICATE) 
  
 Each Purchase Contract evidenced hereby is governed by a Purchase Contract
Agreement, dated as of November 3, 2003 (as may be supplemented from time to time, the “Purchase Contract Agreement”), between the Company and The Bank of New York, as Purchase Contract Agent (including its successors hereunder, the
“Purchase Contract Agent”), to which Purchase Contract Agreement and supplemental agreements thereto reference, is hereby made for a description of the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Purchase Contract Agent, the Company, and the Holders and of the terms upon which the Corporate Units Certificates are, and are to be, executed and delivered. 
  
 Each Purchase Contract evidenced hereby obligates the Holder of this Corporate Units Certificate to purchase, and the
Company to sell, on the Purchase Contract Settlement Date at a price equal to the Stated Amount (the “Purchase Price”), a number of shares of Common Stock equal to the Settlement Rate, unless an Early Settlement, a Cash Merger Early
Settlement or a Termination Event with respect to the Units of which such Purchase Contract is a part shall have occurred. The “Settlement Rate” is equal to: 
  
 (1) if the Adjusted Applicable Market Value (as defined below) is greater than or equal to $47.37 (the
“Threshold Appreciation Price”), 0.5278 shares of Common Stock per Purchase Contract (such number of shares, as adjusted from time to time, the “Minimum Share Number”); 
  
 (2) if the Adjusted Applicable Market Value is less than the
Threshold Appreciation Price but greater than $38.20 (the “Reference Price”), the number of shares of Common Stock per Purchase Contract having a value equal to the Stated Amount divided by the Applicable Market Value; and

  
 (3) if the Adjusted Applicable Market Value
is less than or equal to the Reference Price, 0.6545 shares of Common Stock per Purchase Contract (such number of shares, as adjusted from time to time, the “Maximum Share Number”), 
  
 in each case subject to adjustment as provided in the Purchase Contract Agreement (and in
each case rounded upward or downward to the nearest 1/10,000th of a share). 
  

 A-7 

 No fractional shares of Common Stock will be issued upon settlement of Purchase Contracts, as provided in
Section 5.09 of the Purchase Contract Agreement. 
  
 Each Purchase
Contract evidenced hereby, which is settled through Early Settlement or Cash Merger Early Settlement, shall obligate the Holder of the related Corporate Units to purchase at the Purchase Price, and the Company to sell, a number of newly issued
shares of Common Stock equal to the Early Settlement Rate (in the case of an Early Settlement) or applicable Settlement Rate (in the case of a Cash Merger Early Settlement). 
  
 The “Adjusted Applicable Market Value” means (i) prior to any adjustment of the Fixed Settlement Rate
pursuant to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the Purchase Contract Agreement, the Applicable Market Value, and (ii) at the time of and after any adjustment of the Fixed Settlement Rate pursuant to
paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the Purchase Contract Agreement, the Applicable Market Value multiplied by a fraction, the numerator of which shall be the Fixed Settlement Rate immediately after such
adjustment pursuant to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the Purchase Contract Agreement and the denominator of which shall be the Fixed Settlement Rate immediately prior to such adjustment; provided,
however, that if such adjustment to the Fixed Settlement Rate is required to be made pursuant to the occurrence of any of the events contemplated by paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the Purchase
Contract Agreement during the period taken into consideration for determining the Applicable Market Value, appropriate and customary adjustments shall be made to the Fixed Settlement Rate. 
  
 The “Applicable Market Value” means the average of the
Closing Price per share of Common Stock on each of the 20 consecutive Trading Days ending on the third Trading Day immediately preceding the Purchase Contract Settlement Date. 
  
 The “Closing Price” per share of Common Stock on any date of determination means: 
  
 (1) the closing sale price as of the close of the principal
trading session (or, if no closing price is reported, the last reported sale price) per share on the New York Stock Exchange, Inc. (the “NYSE”) on such date; 
  
 (2) if Common Stock is not listed for trading on the NYSE on any such date, the closing sale price (or, if
no closing price is reported, the last reported sale price) per share as reported in the composite transactions for the principal United States national or regional securities exchange on which Common Stock is so listed; 
  

 A-8 

 (3) if Common Stock is not so listed on a United States national or regional securities
exchange, the last closing sale price per share as reported by the Nasdaq National Market, Inc.; 
  
 (4) if Common Stock is not so reported by the Nasdaq National Market, Inc., the last quoted bid price for the Common Stock in the
over-the-counter market as reported by the National Quotation Bureau or similar organization; or 
  
 (5) if the bid price referred to above is not available, the market value of Common Stock on such date as determined by a nationally
recognized independent investment banking firm retained by the Company for purposes of determining the Closing Price. 
  
 A “Trading Day” means a day on which Common Stock (1) is not suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (2) has traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of Common Stock.

  
 In accordance with the terms of the Purchase Contract
Agreement, the Holder of this Corporate Units Certificate may pay the Purchase Price for the shares of Common Stock purchased pursuant to each Purchase Contract evidenced hereby by effecting a Cash Settlement, an Early Settlement or, if applicable,
a Cash Merger Early Settlement or from the proceeds of the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio or a Remarketing of the related Pledged Senior Notes. Unless the Treasury
Portfolio has replaced the Senior Notes as a component of Corporate Units, a Holder of Corporate Units who (1) does not, on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement
Date, notify the Purchase Contract Agent of its intention to effect a Cash Settlement, or who does so notify the Purchase Contract Agent but fails to make an effective Cash Settlement on or prior to 5:00 p.m. (New York City time) on the fourth
Business Day immediately preceding the Purchase Contract Settlement Date, or (2) on or prior to 5:00 p.m. (New York City time) on the fifth Business Day prior to the Purchase Contract Settlement Date, does not make an effective Early Settlement,
shall pay the Purchase Price for the shares of Common Stock to be delivered under the related Purchase Contract from the proceeds of the sale of the related Pledged Senior Notes held by the Collateral Agent in the Remarketing unless the Holder has
previously made a Cash Merger Early Settlement. Unless the Treasury Portfolio has replaced the Senior Notes as a component of Corporate Units, such sale will be made by the Remarketing Agent pursuant to the terms of the Remarketing Agreement on the
Final Remarketing Date. If the Treasury Portfolio has replaced 
  

 A-9 

 the Senior Notes as a component of Corporate Units, a Holder of Corporate Units who does not notify the Purchase Contract
Agent, on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date of its intention to effect a Cash Settlement shall pay the Purchase Price for the shares of Common Stock to be
delivered under the related Purchase Contract from the proceeds at maturity of the Applicable Ownership Interests (as defined in clause (i) of the definition of such term) in the Treasury Portfolio. 
  
 As provided in the Purchase Contract Agreement, upon the occurrence of a
Failed Final Remarketing, unless a Holder of a Pledged Senior Note has notified the Purchase Contract Agent of his intent to effect a Cash Settlement of the Purchase Contract and delivered the Purchase Price to the Collateral Agent pursuant to
Section 5.02(e)(ii) of the Purchase Contract Agreement, such Holder shall be deemed to have exercised such Holder’s Put Right and to have elected to pay the Purchase Price under the Purchase Contract out of a portion of the proceeds from the
Put Right in full satisfaction of such Holder’s obligations under the Purchase Contract. In the event of the Company’s failure to pay the Put Price when due, the Company shall be deemed to have netted such Holder’s obligation to pay
the Company the Purchase Price under the Purchase Contracts against the Company’s obligation to pay the Put Price, in full satisfaction of such Holder’s obligation under the Purchase Contracts. 
  
 The Company shall not be obligated to issue any shares of Common Stock in
respect of a Purchase Contract or deliver any certificates therefor to the Holder unless it shall have received payment of the aggregate Purchase Price for the shares of Common Stock to be purchased thereunder in the manner set forth in the Purchase
Contract Agreement. 
  
 Under the terms of the Pledge Agreement
and the Purchase Contract Agreement, the Purchase Contract Agent will be entitled to exercise the voting and any other consensual rights pertaining to the Pledged Senior Notes, but only to the extent instructed in writing by the Holders. Upon
receipt of notice of any meeting at which holders of Senior Notes are entitled to vote or upon any solicitation of consents, waivers or proxies of holders of Senior Notes, the Purchase Contract Agent shall, as soon as practicable thereafter, mail,
first class, postage pre-paid, to the Corporate Units Holders a notice: 
  
 (1) containing such information as is contained in the notice or solicitation; 
  
 (2) stating that each Holder on the record date set by the Purchase Contract Agent therefor (which, to the extent possible, shall be the
same date as the record date for determining the holders of Senior Notes, as the case may be, entitled to vote) shall be entitled to instruct the Purchase Contract Agent as to the exercise of the voting rights pertaining to the Senior Notes
underlying such Holder’s Corporate Units; and 
  

 A-10 

 (3) stating the manner in which such instructions may be given. 
  
 Upon the written request of the Corporate Units Holders on such record date received by the
Purchase Contract Agent at least six days prior to such meeting, the Purchase Contract Agent shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum aggregate
principal amount of Senior Notes, as the case may be, as to which any particular voting instructions are received. In the absence of specific instructions from the Holder of a Corporate Unit, the Purchase Contract Agent shall abstain from voting the
Senior Note evidenced by such Corporate Unit. The Company hereby agrees, if applicable, to solicit Holders of Corporate Units to timely instruct the Purchase Contract Agent in order to enable the Purchase Contract Agent to vote the Senior Notes. The
Holders of Corporate Units shall have no voting or other rights in respect of Common Stock. 
  
 Upon the occurrence of a Special Event Redemption, the Collateral Agent shall surrender the Pledged Senior Notes against delivery of an amount equal to the aggregate Redemption Price of the Pledged Senior Notes and
shall deposit the funds in the Collateral Account in exchange for the Pledged Senior Notes. Thereafter, pursuant to the terms of the Pledge Agreement, the Collateral Agent shall cause the Securities Intermediary to apply an amount equal to the
aggregate Redemption Amount of such funds to purchase on behalf of the Holders of Corporate Units the Treasury Portfolio and promptly (a) transfer the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the
Treasury Portfolio to the Collateral Account to secure the obligations of each Holder of Corporate Units to purchase shares of Common Stock under the Purchase Contracts constituting a part of such Corporate Units, (b) transfer the Applicable
Ownership Interests (as specified in clause (ii) of the definition of such term) in the Treasury Portfolio to the Purchase Contract Agent for the benefit of the Holders of such Corporate Units and (c) remit the remaining portion of such funds to the
Purchase Contract Agent for payment to the Holders of such Corporate Units. 
  
 Upon the occurrence of a Successful Remarketing of Senior Notes prior to the Final Remarketing Date, pursuant to the terms of the Remarketing Agreement, the Remarketing Agent will apply an amount equal to the Treasury
Portfolio Purchase Price to purchase on behalf of the Holders of Corporate Units, the Treasury Portfolio, and, after deducting all or a portion of the Remarketing Fee to the extent permitted under the terms of the Remarketing Agreement, promptly
remit the remaining portion of such proceeds of such Successful Remarketing to the Purchase Contract Agent for payment to the Holders of such Corporate Units. 
  

 A-11 

 Following the occurrence of (i) a Special Event Redemption prior to the Purchase Contract Settlement
Date, or (ii) a Successful Remarketing of the Senior Notes prior to the Final Remarketing Date, the Holders of Corporate Units and the Collateral Agent shall have such security interest rights and obligations with respect to the Applicable Ownership
Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio as the Holder of Corporate Units and the Collateral Agent had in respect of the Senior Notes, as the case may be, subject to the Pledge of the Applicable
Ownership Interest (as specified in clause (i) of the definition of such term) as provided in the Pledge Agreement and any reference herein to the Senior Notes shall be deemed to be a reference to such Treasury Portfolio. 
  
 The Corporate Units Certificates are issuable only in registered form and
only in denominations of a single Corporate Unit and any integral multiple thereof. The transfer of any Corporate Units Certificate will be registered and Corporate Units Certificates may be exchanged as provided in the Purchase Contract Agreement.
The Security Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents permitted by the Purchase Contract Agreement. No service charge shall be required for any such registration of transfer or
exchange, but the Company and the Purchase Contract Agent may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. A Holder who elects to substitute a Treasury Security for a Senior Note,
thereby creating Treasury Units, shall be responsible for any fees or expenses payable in connection therewith. Except as provided in the Purchase Contract Agreement, for so long as the Purchase Contract underlying a Corporate Units remains in
effect, such Corporate Units shall not be separable into its constituent parts, and the rights and obligations of the Holder of such Corporate Units in respect of the Senior Notes and Purchase Contract constituting such Corporate Units may be
transferred and exchanged only as a Corporate Unit. 
  
 Unless the
Treasury Portfolio has replaced the Senior Notes as a component of the Corporate Units, and subject to the conditions set forth in the Purchase Contract Agreement, the Holder of Corporate Units may substitute, at any time on or prior to 5:00 p.m.
(New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date, for the Pledged Senior Notes securing such Holder’s obligations under the related Purchase Contracts, Treasury Securities in an
aggregate principal amount at maturity equal to the aggregate principal amount of the Pledged Senior Notes in accordance with the terms of the Purchase Contract Agreement and the Pledge Agreement. From and after such Collateral Substitution, each
Unit for which such Pledged Treasury Securities secures the Holder’s obligation under the Purchase Contract shall be referred to as a “Treasury Unit”. A Holder may make such Collateral Substitution only in integral multiples of
40 Corporate Units for 40 Treasury Units. 
  

 A-12 

 If the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate Units, a Holder
may, at any time on or prior to the second Business Day immediately preceding the Purchase Contract Settlement Date, substitute Treasury Securities for the Applicable Ownership Interests in the Treasury Portfolio, but only in integral multiples of
16,000 Corporate Units. In such an event, the Holder shall transfer Treasury Securities to the Collateral Agent, and the Purchase Contract Agent shall instruct the Collateral Agent to release the Pledge and transfer to the Holder the appropriate
Applicable Ownership Interests in the Treasury Portfolio. 
  
 The
Company shall pay, on each Payment Date, the Contract Adjustment Payments payable in respect of each Purchase Contract to the Person in whose name the Corporate Units Certificate evidencing such Purchase Contract is registered at the close of
business on the Record Date for such Payment Date. Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in New York City. If the book-entry system for the Corporate Units has been terminated, the Contract
Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire transfer to the account designated by
such Person by a prior written notice to the Purchase Contract Agent. 
  
 The Purchase Contracts and all obligations and rights of the Company and the Holders thereunder, including, without limitation, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments,
shall immediately and automatically terminate, without the necessity of any notice or action by any Holder, the Purchase Contract Agent or the Company, if, on or prior to the Purchase Contract Settlement Date, a Termination Event shall have
occurred. Upon the occurrence of a Termination Event, the Company shall promptly but in no event later than two Business Days thereafter give written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as
they appear in the Security Register. Upon and after the occurrence of a Termination Event, the Collateral Agent shall release the Pledged Senior Notes or the appropriate Applicable Ownership Interests (as specified in clause (i) of the definition
of such term) (as defined in the Pledge Agreement) in the Treasury Portfolio, as the case may be, in accordance with the provisions of the Pledge Agreement. A Corporate Unit shall thereafter represent the right to receive the Senior Note or the
appropriate Applicable Ownership Interests in the Treasury Portfolio forming a part of such Corporate Unit in accordance with the terms of, and except as set forth in, the Purchase Contract Agreement and the Pledge Agreement. 
  
 Subject to and upon compliance with the provisions of the Purchase Contract
Agreement, at the option of the Holder thereof, Purchase Contracts underlying Units may be settled early (“Early Settlement”) at any time on or 
  

 A-13 

 prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement
Date as provided in the Purchase Contract Agreement. In order to exercise the right to effect Early Settlement with respect to any Purchase Contract evidenced by this Certificate, the Holder of this Corporate Units Certificate shall deliver to the
Purchase Contract Agent at the Corporate Trust Office prior to the time specified in the Purchase Contract Agreement an Election to Settle Early form set forth below duly completed and accompanied by payment in the form of immediately available
funds payable to the order of the Company in an amount (the “Early Settlement Amount”) equal to the sum of: 
  
 (i) the product of (A) the Stated Amount times (B) the number of Purchase Contracts with respect to which the Holder has elected to effect
Early Settlement, plus 
  
 (ii) if such delivery
is made with respect to any Purchase Contracts during the period from the close of business on any Record Date next preceding any Payment Date to the opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments
payable on such Payment Date with respect to such Purchase Contracts. 
  
 Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Pledged Senior Notes or Pledged Applicable Ownership Interests (as specified in clause (i) of the definition of such term) underlying such Units shall be
released from the Pledge as provided in the Pledge Agreement and the Holder shall be entitled to receive a number of shares of Common Stock on account of each Purchase Contract forming part of a Corporate Unit as to which Early Settlement is
effected equal to the Minimum Share Number (the “Early Settlement Rate”)as adjusted from time to time under Section 5.04 of the Purchase Contract Agreement. 
  
 Upon the occurrence of a Cash Merger, a Holder of Corporate Units may effect Cash Merger Early Settlement of the Purchase
Contract underlying such Corporate Units pursuant to the terms of Section 5.04(b)(ii) of the Purchase Contract Agreement. Upon Cash Merger Early Settlement of Purchase Contracts by a Holder of the related Corporate Units, the Pledged Senior Notes or
Pledged Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio underlying such Corporate Units shall be released from the Pledge as provided in the Pledge Agreement. 
  
 Upon registration of transfer of this Corporate Units Certificate, the
transferee shall be bound (without the necessity of any other action on the part of such transferee, except as may be required by the Purchase Contract Agent pursuant to the Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement and the Purchase Contracts evidenced hereby and the 
  

 A-14 

 transferor shall be released from the obligations under the Purchase Contracts evidenced by this Corporate Units
Certificate. The Company covenants and agrees, and the Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by the provisions of this paragraph. 
  
 The Holder of this Corporate Units Certificate, by its acceptance hereof, irrevocably authorizes the Purchase Contract Agent
to enter into and perform the related Purchase Contracts forming part of the Corporate Units evidenced hereby on its behalf as its attorney-in-fact, expressly withholds any consent to the assumption (i.e., affirmance) of the Purchase
Contracts by the Company or its trustee in the event that the Company becomes the subject of a case under the Bankruptcy Code, agrees to be bound by the terms and provisions thereof, covenants and agrees to perform its obligations under such
Purchase Contracts, consents to the provisions of the Purchase Contract Agreement, irrevocably authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract Agreement and the Pledge Agreement on its behalf as its
attorney-in-fact, and consents to, and agrees to be bound by, the Pledge of such Holder’s right, title and interest in and to the Collateral Account, including the Senior Notes or the appropriate Applicable Ownership Interests (as specified in
clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, underlying this Corporate Units Certificate pursuant to the Pledge Agreement. The Holder further covenants and agrees that, to the extent and in the manner
provided in the Purchase Contract Agreement and the Pledge Agreement, but subject to the terms thereof, payments with respect to the aggregate principal amount of the Pledged Senior Notes or the appropriate Applicable Ownership Interests (as
specified in clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, on the Purchase Contract Settlement Date shall be paid by the Collateral Agent to the Company in satisfaction of such Holder’s obligations
under such Purchase Contract and such Holder shall acquire no right, title or interest in such payments. 
  
 Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts. 
  
 The Purchase Contracts shall be governed
by, and construed in accordance with, the laws of the State of New York. 
  
 Prior to due presentment of this Certificate for registration of transfer, the Company, the Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract Agent may treat the Person
in whose name this Corporate Units Certificate is registered as the owner of the Corporate Units evidenced hereby for the purpose of receiving payments of interest payable on the Senior Notes, receiving payments of Contract Adjustment Payments
(subject to any applicable record date), performance of the Purchase Contracts and for all 
  

 A-15 

 other purposes whatsoever, whether or not any payments in respect thereof be overdue and notwithstanding any notice to
the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the contrary. 
  
 The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any of the rights of a holder of shares of Common Stock.

  
 A copy of the Purchase Contract Agreement is available for
inspection at the offices of the Purchase Contract Agent. 
  

 A-16 

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

			
	TEN COM:	  	as tenants in common
	UNIF GIFT MIN ACT:	  	                             Custodian
                                
	 	  	            (cust)
                                    (minor)
	 	  	Under Uniform Gifts to Minors Act of
	 	  	                                       
                                        
                      

		
	TENANT:	  	as tenants by the entireties
		
	JT TEN:	  	as joint tenants with right of survivorship and not as tenants in common

  
  

	
	Additional abbreviations may also be used though not in the above list.
	
	 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto                                       
              

	 (Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

	
	                                       
                                        
                                        
                                        
                                        
                   

 (Please print or type name and address including Postal Zip Code of Assignee)

  
 the within Corporate Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing attorney
                                        ,
to transfer said Corporate Units Certificates on the books of The PMI Group, Inc., with full power of substitution in the premises. 
  

			
	 Dated:

	  	 Signature

		
	 	  	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Corporate Units Certificates in every particular, without alteration or
enlargement or any change whatsoever.
	
	                                        
                                     Signature
Guarantee:

  

 A-17 

 SETTLEMENT INSTRUCTIONS 
  
 The undersigned Holder directs that a certificate for shares of Common Stock deliverable upon settlement on or after the
Purchase Contract Settlement Date of the Purchase Contracts underlying the number of Corporate Units evidenced by this Corporate Units Certificate be registered in the name of, and delivered, together with a check in payment for any fractional
share, to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer tax
payable incident thereto. 
  

			
	 Dated:

	  	

	 	  	Signature
	 	  	 Signature Guarantee:

	 	  	(if assigned to another person)
		
	If shares are to be registered in the name of and delivered to a Person other than the Holder, please (i) print such Person’s name and address and (ii) provide a guarantee of your
signature:	  	 REGISTERED HOLDER
  
 Please print name and address of Registered Holder:

		
	 	  	 
	
	  	

	Name	  	Name
		
	
	  	

	Address	  	Address
		
	
	  	

		
	
	  	

		
	
	  	

		
	Social Security or other Taxpayer Identification Number, if any	  	 

  

 A-18 

 ELECTION TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT 
  
 The undersigned Holder of this Corporate Units Certificate hereby irrevocably
exercises the option to effect [Early Settlement] [Cash Merger Early Settlement following a Cash Merger] in accordance with the terms of the Purchase Contract Agreement with respect to the Purchase Contracts underlying the number of Corporate Units
evidenced by this Corporate Units Certificate specified below. The undersigned Holder directs that a certificate for shares of Common Stock or other securities deliverable upon such [Early Settlement] [Cash Merger Early Settlement] be registered in
the name of, and delivered, together with a check in payment for any fractional share and any Corporate Units Certificate representing any Corporate Units evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the related
Purchase Contracts is not effected, to the undersigned at the address indicated below unless a different name and address have been indicated below. Pledged Senior Notes or the appropriate Applicable Ownership Interests in the Treasury Portfolio, as
the case may be, deliverable upon such [Early Settlement] [Cash Merger Early Settlement] will be transferred in accordance with the transfer instructions set forth below. If shares are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto. 
  

			
	 Dated:

	  	 Signature

		
	 Signature Guarantee:

	  	 

  

 A-19 

 Number of Units evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the
related Purchase Contracts is being elected: 
  

			
	If shares of Common Stock or Corporate Units Certificates are to be registered in the name of and delivered to and Pledged Senior Notes or the Applicable Ownership Interests in the Treasury
Portfolio, as the case may be, are to be transferred to a Person other than the Holder, please print such Person’s name and address:	  	REGISTERED HOLDER
		
	 	  	Please print name and address of Registered Holder:
		
	
	  	

	Name	  	Name
		
	
	  	

	Address	  	Address
		
	
	  	

		
	
	  	

		
	
	  	

		
	Social Security or other Taxpayer Identification Number, if any	  	 

  

 A-20 

 Transfer Instructions for Pledged Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio, as the
case may be, transferable upon [Early Settlement] [Cash Merger Early Settlement] or a Termination Event: 
  

  

  

  

 A-21 

 TO BE ATTACHED TO GLOBAL CERTIFICATES] 
  
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE 
  
 The following increases or decreases in this Global Certificate have been made: 
  

									
	 Date

	  	 Amount of increase
 in Number of
 Corporate Units
 evidenced by the
 Global
Certificate

	  	 Amount of decrease
 in Number of
 Corporate Units
evidenced by the
 Global Certificate

	  	 Number of Corporate
Units evidenced by
 this Global
Certificate following
such decrease or
increase

	  	Signature of
authorized signatory
of Purchase Contract
Agent

  
  

 A-22 

 EXHIBIT B 
  

(FORM OF FACE OF TREASURY UNIT CERTIFICATE) 
  
 For inclusion in Global Certificate only – THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS
EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF
THIS CERTIFICATE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.] 
  

			
	 No.             
	  	CUSIP No.

 Number of Treasury
Units:                         
  
 THE PMI GROUP, INC. 
 Treasury Units 

 
 This Treasury Units Certificate certifies that [Cede & Co.] is the
registered Holder of the number of Treasury Units set forth above [for inclusion in Global Certificates only – or such other number of Treasury Units reflected in the Schedule of Increases or Decreases in the Global Certificate attached
hereto]. Each Treasury Unit consists of (i) a 1/40 undivided beneficial ownership interest of a Treasury Security having a principal amount at maturity equal to $1,000, subject to the Pledge of such Treasury Security by such Holder pursuant to the

  

 B-1 

 Pledge Agreement, and (ii) the rights and obligations of the Holder under one Purchase Contract with The PMI Group, Inc.,
a Delaware corporation (the “Company”). All capitalized terms used herein which are defined in the Purchase Contract Agreement (as defined on the reverse hereof) have the meaning set forth therein. 
  
 Pursuant to the Pledge Agreement, the Treasury Securities constituting part
of each Treasury Unit evidenced hereby have been pledged to the Collateral Agent, for the benefit of the Company, to secure the obligations of the Holder under the Purchase Contract comprising part of such Treasury Unit. 
  
 Each Purchase Contract evidenced hereby obligates the Holder of this Treasury
Units Certificate to purchase, and the Company, to sell, on November 15, 2006 (the “Purchase Contract Settlement Date”), at a price equal to $25 (the “Stated Amount”), a number of newly issued shares of common
stock, par value $0.01 per share (“Common Stock”), of the Company, equal to the Settlement Rate, unless prior to or on the Purchase Contract Settlement Date there shall have occurred a Termination Event, an Early Settlement or a
Cash Merger Early Settlement with respect to such Purchase Contract, all as provided in the Purchase Contract Agreement and more fully described on the reverse hereof. The purchase price (the “Purchase Price”) for the shares of
Common Stock purchased pursuant to each Purchase Contract evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract Settlement Date by application of the proceeds from the Treasury Securities at maturity pledged to secure the
obligations of the Holder under such Purchase Contract of the Treasury Units of which such Purchase Contract is a part. 
  
 Each Purchase Contract evidenced hereby obligates the holder to agree, for United States federal, state and local income and franchise tax purposes, to
(i) treat an acquisition of the Treasury Units as an acquisition of the Treasury Securities and Purchase Contracts constituting the Treasury Units and (ii) treat itself as owner of the applicable interest in the Collateral Account, including the
Treasury Securities. 
  
 The Company shall pay, on each Payment
Date, in respect of each Purchase Contract forming part of a Treasury Unit evidenced hereby, an amount (the “Contract Adjustment Payments”) equal to 2.875% per year of the Stated Amount. Such Contract Adjustment Payments shall be
payable to the Person in whose name this Treasury Units Certificate is registered at the close of business on the Record Date for such Payment Date. 
  
 Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in New York City. If the book-entry system for the Treasury
Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the 
  

 B-2 

 Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire transfer to the
account designated by such Person by a prior written notice to the Purchase Contract Agent. 
  
 Reference is hereby made to the further provisions set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 Unless the certificate of authentication hereon has been executed by the
Purchase Contract Agent by manual signature, this Treasury Units Certificate shall not be entitled to any benefit under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any purpose. 
  

 B-3 

 IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to be duly
executed. 
  

			
	 THE PMI GROUP, INC.

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	HOLDER SPECIFIED ABOVE (as to obligations of such Holder under the Purchase Contracts)
		
	 By:
	 	THE BANK OF NEW YORK, not individually but solely as attorney-in-fact or such Holder
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

			
	 Dated:
	 	  

  

 B-4 

 CERTIFICATE OF AUTHENTICATION OF 
 PURCHASE CONTRACT AGENT 
  
 This is one of the Treasury Units referred to in the within-mentioned Purchase Contract Agreement. 
  

			
	 THE BANK OF NEW YORK,
     as Purchase Contract Agent

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

			
	 Dated:
	 	  

  

 B-5 

 (REVERSE OF TREASURY UNIT CERTIFICATE) 
  
 Each Purchase Contract evidenced hereby is governed by a Purchase Contract Agreement, dated as of November 3, 2003 (as may
be supplemented from time to time, the “Purchase Contract Agreement”) between the Company and The Bank of New York, as Purchase Contract Agent (including its successors thereunder, herein called the “Purchase Contract
Agent”), to which the Purchase Contract Agreement and supplemental agreements thereto reference, is hereby made for a description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Purchase
Contract Agent, the Company and the Holders and of the terms upon which the Treasury Units Certificates are, and are to be, executed and delivered. 
  
 Each Purchase Contract evidenced hereby obligates the Holder of this Treasury Units Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date at a price equal to the Stated Amount (the “Purchase Price”) a number of newly issued shares of Common Stock equal to the Settlement Rate, unless an Early Settlement, a Cash Merger Early Settlement or a
Termination Event with respect to the Units of which such Purchase Contract is a part shall have occurred. The “Settlement Rate” is equal to: 
  

(1) if the Adjusted Applicable Market Value (as defined below) is greater than or equal to $47.37 (the “Threshold Appreciation
Price”), 0.5278 shares of Common Stock per Purchase Contract (such number of shares, as adjusted from time to time, the “Minimum Share Number”); 
  
 (2) if the Adjusted Applicable Market Value is less than the Threshold Appreciation Price but greater than
$38.20 (the “Reference Price”), the number of shares of Common Stock per Purchase Contract having a value equal to the Stated Amount divided by the Applicable Market Value; and 
  
 (3) if the Adjusted Applicable Market Value is less than or
equal to the Reference Price, 0.6545 shares of Common Stock per Purchase Contract (such number of shares, as adjusted from time to time, the “Maximum Share Number”), 
  
 in each case subject to adjustment as provided in the Purchase Contract Agreement (and in each case rounded upward or downward to the
nearest 1/10,000th of a share). 
  
 No fractional shares of Common
Stock will be issued upon settlement of Purchase Contracts, as provided in Section 5.09 of the Purchase Contract Agreement. 
  

 B-6 

 Each Purchase Contract evidenced hereby, which is settled through Early Settlement or Cash Merger Early
Settlement shall obligate the Holder of the related Treasury Units to purchase at the Purchase Price, and the Company to sell, a number of newly issued shares of Common Stock equal to the Early Settlement Rate (in the case of an Early Settlement) or
applicable Settlement Rate (in the case of a Cash Merger Early Settlement). 
  
 The “Adjusted Applicable Market Value” means (i) prior to any adjustment of the Fixed Settlement Rate pursuant to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the
Purchase Contract Agreement, the Applicable Market Value, and (ii) at the time of and after any adjustment of the Fixed Settlement Rate pursuant to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the Purchase Contract
Agreement, the Applicable Market Value multiplied by a fraction, the numerator of which shall be the Fixed Settlement Rate immediately after such adjustment pursuant to paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of
the Purchase Contract Agreement and the denominator of which shall be the Fixed Settlement Rate immediately prior to such adjustment; provided, however, that if such adjustment to the Fixed Settlement Rate is required to be made pursuant to the
occurrence of any of the events contemplated by paragraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (x) of Section 5.04(a) of the Purchase Contract Agreement during the period taken into consideration for determining the Applicable Market Value,
appropriate and customary adjustments shall be made to the Fixed Settlement Rate. 
  
 The “Applicable Market Value” means the average of the Closing Price per share of Common Stock on each of the 20 consecutive Trading Days ending on the third Trading Day immediately preceding the
Purchase Contract Settlement Date. 
  
 The “Closing
Price” per share of Common Stock on any date of determination means: 
  
 (1) the closing sale price as of the close of the principal trading session (or, if no closing price is reported, the last reported sale price) per share on the New York Stock Exchange, Inc. (the
“NYSE”) on such date; 
  
 (2) if
Common Stock is not listed for trading on the NYSE on any such date, the closing sale price (or, if no closing price is reported, the last reported sale price) per share as reported in the composite transactions for the principal United States
national or regional securities exchange on which Common Stock is so listed; 
  
 (3) if Common Stock is not so listed on a United States national or regional securities exchange, the last closing sale price per share as reported by the Nasdaq National Market, Inc.; 
  

 B-7 

 (4) if Common Stock is not so reported by the Nasdaq National Market, Inc., the last
quoted bid price for the Common Stock in the over-the-counter market as reported by the National Quotation Bureau or similar organization; or 
  
 (5) if the bid price referred to above is not available, the market value of Common Stock on such date as determined by a nationally
recognized independent investment banking firm retained by the Company for purposes of determining the Closing Price. 
  
 A “Trading Day” means a day on which Common Stock (1) is not suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (2) has traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of Common Stock.

  
 In accordance with the terms of the Purchase Contract
Agreement, the Holder of this Treasury Unit shall pay the Purchase Price for the shares of the Common Stock purchased pursuant to each Purchase Contract evidenced hereby either by effecting an Early Settlement or, if applicable, a Cash Merger Early
Settlement of each such Purchase Contract or by applying a principal amount of the Pledged Treasury Securities underlying such Holder’s Treasury Unit equal to the Stated Amount of such Purchase Contract to the purchase of the Common Stock. A
Holder of Treasury Units who (1) on or prior to 5:00 p.m. (New York City time) on the fifth Business Day prior to the Purchase Contract Settlement Date, does not make an effective Early Settlement or (2) on or prior to 5:00 p.m. (New York City time)
on the fifth Business Day prior to the Purchase Contract Settlement Date, does not make an effective Cash Merger Early Settlement, shall pay the Purchase Price for the shares of Common Stock to be issued under the related Purchase Contract from the
proceeds of the Pledged Treasury Securities. 
  
 The Company shall
not be obligated to issue any shares of Common Stock in respect of a Purchase Contract or deliver any certificates therefor to the Holder unless it shall have received payment of the aggregate purchase price for the shares of Common Stock to be
purchased thereunder in the manner set forth in the Purchase Contract Agreement. 
  
 The Treasury Units Certificates are issuable only in registered form and only in denominations of a single Treasury Unit and any integral multiple thereof. The transfer of any Treasury Units Certificate will be
registered and Treasury Units Certificates may be exchanged as provided in the Purchase Contract Agreement. The Security Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents permitted by the
Purchase Contract Agreement. No service charge shall be required for any such 
  

 B-8 

 registration of transfer or exchange, but the Company and the Purchase Contract Agent may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. A Holder who elects to substitute Senior Notes or Applicable Ownership Interests in the Treasury Portfolio, for Treasury Securities, thereby recreating
Corporate Units, shall be responsible for any fees or expenses associated therewith. Except as provided in the Purchase Contract Agreement, for so long as the Purchase Contract underlying a Treasury Unit remains in effect, such Treasury Unit shall
not be separable into its constituent parts, and the rights and obligations of the Holder of such Treasury Unit in respect of the Treasury Security and the Purchase Contract constituting such Treasury Unit may be transferred and exchanged only as a
Treasury Unit. 
  
 Unless the Treasury Portfolio has replaced the
Senior Notes as a component of the Corporate Units and subject to the conditions set forth in the Purchase Contract Agreement, a Holder of Treasury Units may recreate, at any time on or prior to 5:00 p.m. (New York City time) on the fifth Business
Day immediately preceding the Purchase Contract Settlement Date, Corporate Units by delivering to the Securities Intermediary Senior Notes with an aggregate principal amount, equal to the aggregate principal amount at maturity of the Pledged
Treasury Securities in exchange for the release of such Pledged Treasury Securities in accordance with the terms of the Purchase Contract Agreement and the Pledge Agreement. From and after such substitution, the Holder’s Units shall be referred
to as a “Corporate Unit”. Any such creation of Corporate Units may be effected only in multiples of 40 Treasury Units for 40 Corporate Units. 
  

If the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate Units, a Holder may, at any time on or prior to the second
Business Day immediately preceding the Purchase Contract Settlement Date, substitute Treasury Securities for the Applicable Ownership Interests in the Treasury Portfolio, but only in integral multiples of 16,000 Treasury Units. In such an event, the
Holder shall transfer Treasury Securities to the Collateral Agent, and the Purchase Contract Agent shall instruct the Collateral Agent to release the Pledge of and transfer to the Holder the appropriate Applicable Ownership Interests in the Treasury
Portfolio. 
  
 The Company shall pay, on each Payment Date, the
Contract Adjustment Payments payable in respect of each Purchase Contract to the Person in whose name the Treasury Units Certificate evidencing such Purchase Contract is registered at the close of business on the Record Date for such Payment Date.
Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in New York City. If the book-entry system for the Corporate Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the
Company, by check mailed to the address of the Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire transfer to the account designated by such Person by a prior written notice to the Purchase
Contract Agent. 
  

 B-9 

 The Purchase Contracts and all obligations and rights of the Company and the Holders thereunder,
including, without limitation, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments, shall immediately and automatically terminate, without the necessity of any notice or action by any
Holder, the Purchase Contract Agent or the Company, if, on or prior to the Purchase Contract Settlement Date, a Termination Event shall have occurred. Upon the occurrence of a Termination Event, the Company shall promptly but in no event later than
two Business Days thereafter give written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as they appear in the Security Register. Upon and after the occurrence of a Termination Event, the Collateral
Agent shall release the Pledged Treasury Securities (as defined in the Pledge Agreement) in accordance with the provisions of the Pledge Agreement. A Treasury Unit shall thereafter represent the right to receive the interest in the Treasury Security
forming a part of such Treasury Unit, in accordance with the terms of and except as set forth in, the Purchase Contract Agreement and the Pledge Agreement. 
  
 Subject to and upon compliance with the provisions of the Purchase Contract Agreement, at the option of the Holder thereof, Purchase Contracts underlying
Units may be settled early (“Early Settlement”) as provided in the Purchase Contract Agreement. In order to exercise the right to effect Early Settlement with respect to any Purchase Contract evidenced by this Certificate, the
Holder of this Treasury Units Certificate shall deliver to the Purchase Contract Agent at the Corporate Trust Office an Election to Settle Early form set forth below duly completed and accompanied by payment in the form of immediately available
funds payable to the order of the Company in an amount (the “Early Settlement Amount”) equal to the sum of: 
  
 (i) the product of (A) the Stated Amount times (B) the number of Purchase Contracts with respect to which the Holder has elected to effect
Early Settlement, plus 
  
 (ii) if such delivery
is made with respect to any Purchase Contracts during the period from the close of business on any Record Date next preceding any Payment Date to the opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments
payable on such Payment Date with respect to such Purchase Contracts. 
  
 Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Pledged Treasury Securities underlying such Units shall be released from the Pledge as provided in the Pledge Agreement and the Holder shall be entitled to
receive a number of shares of Common Stock on account of each 
  

 B-10 

 Purchase Contract forming part of a Treasury Unit as to which Early Settlement is effected equal to the Minimum Share
Number (the “Early Settlement Rate”) adjusted from time to time under Section 5.04 of the Purchase Contract Agreement. 
  
 Upon the occurrence of a Cash Merger, a Holder of Treasury Units may effect Cash Merger Early Settlement of the Purchase Contract underlying such Treasury
Units pursuant to the terms of Section 5.04(b)(ii) of the Purchase Contract Agreement. Upon Cash Merger Early Settlement of Purchase Contracts by a Holder of the related Treasury Units, the Pledged Treasury Securities underlying such Treasury Units
shall be released from the Pledge as provided in the Pledge Agreement. 
  
 Upon registration of transfer of this Treasury Units Certificate, the transferee shall be bound (without the necessity of any other action on the part of such transferee, except as may be required by the Purchase Contract Agent pursuant to
the Purchase Contract Agreement), under the terms of the Purchase Contract Agreement and the Purchase Contracts evidenced hereby and the transferor shall be released from the obligations under the Purchase Contracts evidenced by this Treasury Units
Certificate. The Company covenants and agrees, and the Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by the provisions of this paragraph. 
  
 The Holder of this Treasury Units Certificate, by its acceptance hereof, authorizes the Purchase Contract Agent to enter
into and perform the related Purchase Contracts forming part of the Treasury Units evidenced hereby on its behalf as its attorney-in-fact, expressly withholds any consent to the assumption (i.e., affirmance) of the Purchase Contracts
by the Company or its trustee in the event that the Company becomes the subject of a case under the Bankruptcy Code, agrees to be bound by the terms and provisions thereof, covenants and agrees to perform its obligations under such Purchase
Contracts, consents to the provisions of the Purchase Contract Agreement, authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract Agreement and the Pledge Agreement on its behalf as its attorney-in-fact, and consents
to the Pledge of the Treasury Securities underlying this Treasury Units Certificate pursuant to the Pledge Agreement. The Holder further covenants and agrees, that, to the extent and in the manner provided in the Purchase Contract Agreement and the
Pledge Agreement, but subject to the terms thereof, payments in respect to the aggregate principal amount of the Pledged Treasury Securities on the Purchase Contract Settlement Date shall be paid by the Collateral Agent to the Company in
satisfaction of such Holder’s obligations under such Purchase Contract and such Holder shall acquire no right, title or interest in such payments. 
  

 B-11 

 Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be amended with the
consent of the Holders of a majority of the Purchase Contracts. 
  
 The Purchase Contracts shall for all purposes be governed by, and construed in accordance with, the laws of the State of New York. 
  
 Prior to due presentment of this Certificate for registration or transfer, the Company, the Purchase Contract Agent and its Affiliates and any agent of
the Company or the Purchase Contract Agent may treat the Person in whose name this Treasury Units Certificate is registered as the owner of the Treasury Units evidenced hereby for the purpose of receiving payments of interest on the Treasury
Securities, receiving payments of Contract Adjustment Payments (subject to any applicable record date), performance of the Purchase Contracts and for all other purposes whatsoever, whether or not any payments in respect thereof be overdue and
notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the contrary. 
  

The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any of the rights of a holder of shares of Common Stock.

  
 A copy of the Purchase Contract Agreement is available for
inspection at the offices of the Purchase Contract Agent. 
  

 B-12 

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

			
	 TEN COM:
	  	 as tenants in common

		
	 UNIF GIFT MIN ACT:
	  	                              Custodian
                            

	 	  	             (cust)                          
        (minor)

	 	  	 Under Uniform Gifts to Minors Act of

	 	  	                                      
                                        
                      
		
	 TENANT:
	  	 as tenants by the entireties

		
	 JT TEN:
	  	as joint tenants with right of survivorship and not as tenants in common

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

  

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

	 (Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

	
	                                       
                                        
                                        
                                        
                                        
                   

	(Please print or type name and address including Postal Zip Code of Assignee)

  
 the within Treasury Units Certificates
and all rights thereunder, hereby irrevocably constituting and appointing attorney
                                        ,
to transfer said Treasury Units Certificates on the books of The PMI Group, Inc., with full power of substitution in the premises. 
  

			
	 Dated:

	  	 Signature

		
	 	  	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Treasury Units Certificates in every particular, without alteration or
enlargement or any change whatsoever.
	
	                                        
                                     Signature
Guarantee:

  

 B-13 

 SETTLEMENT INSTRUCTIONS 
  
 The undersigned Holder directs that a certificate for shares of Common Stock deliverable upon settlement on or after the Purchase Contract
Settlement Date of the Purchase Contracts underlying the number of Treasury Units evidenced by this Treasury Units Certificate be registered in the name of, and delivered, together with a check in payment for any fractional share, to the undersigned
at the address indicated below unless a different name and address have been indicated below. If shares are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer tax payable incident thereto.

  

			
	 Dated:

	  	

	If shares are to be registered in the name of and delivered to a Person other than the Holder, please (i) print such Person’s name and address and (ii) provide a
guarantee of your signature:	  	 Signature
 Signature Guarantee:

 (if assigned to another person)
  
 REGISTERED HOLDER

		
	 	  	 Please print name and address of Registered Holder:

	  

	  	

	 Name
	  	 Name

	  

	  	

	 Address
	  	 Address

	  

	  	

	  

	  	

	  

	  	

  
 Social Security or other 
 Taxpayer Identification 
 Number, if any 
  
  

 B-14 

 ELECTION TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT 
  
 The undersigned Holder of this Treasury Units Certificate hereby irrevocably
exercises the option to effect [Early Settlement] [Cash Merger Early Settlement upon a Cash Merger] in accordance with the terms of the Purchase Contract Agreement with respect to the Purchase Contracts underlying the number of Treasury Units
evidenced by this Treasury Units Certificate specified below. The option to effect [Early Settlement] [Cash Merger Early Settlement] may be exercised only with respect to Purchase Contracts underlying Treasury Units with an aggregate Stated Amount
equal to $1,000 or an integral multiple thereof. The undersigned Holder directs that a certificate for shares of Common Stock or other securities deliverable upon such [Early Settlement] [Cash Merger Early Settlement] be registered in the name of,
and delivered, together with a check in payment for any fractional share and any Treasury Units Certificate representing any Treasury Units evidenced hereby as to which Cash Merger Early Settlement of the related Purchase Contracts is not effected,
to the undersigned at the address indicated below unless a different name and address have been indicated below. Pledged Treasury Securities deliverable upon such [Early Settlement] [Cash Merger Early Settlement] will be transferred in accordance
with the transfer instructions set forth below. If shares are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer tax payable incident thereto. 
  

			
	 Dated:

	  	 Signature

		
	 Signature Guarantee:

	  	 

  

 B-15 

 Number of Units evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the
related Purchase Contracts is being elected: 
  

			
	If shares of Common Stock or Treasury Units Certificates are to be registered in the name of and delivered to and Treasury Securities are to be transferred to a Person other than the Holder,
please print such Person’s name and address:	 	 REGISTERED HOLDER

	 	 	 Please print name and address of
 Registered Holder:

	  

	 	 
	 Name
	 	 
	 	 	  

	 	 	 Name

	  

	 	 
	 Address
	 	 
	  

	 	  

	  

	 	 Address

	  

	 	 
	 	 	

		
	 	 	

		
	 Social Security or other
	 	

	 Taxpayer Identification
	 	 
	 Number, if any
	 	 

  
  

 B-16 

 Transfer Instructions for Pledged Treasury Securities Transferable upon [Early Settlement] [Cash Merger
Early Settlement] or a Termination Event: 
  

  

  

  

 B-17 

 TO BE ATTACHED TO GLOBAL CERTIFICATES 
  
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE 
  
 The following increases or decreases in this Global Certificate have been made: 
  

									
	 Date

	 	 Amount of increase
 in Number of
 Treasury Units
evidenced by the
Global Certificate

	 	 Amount of decrease
 in Number of
 Treasury Units
evidenced by the
 Global Certificate

	  	Number of Treasury
Units evidenced by
this Global
Certificate following
such decrease or
increase

	  	Signature of
authorized signatory
of Purchase Contract
Agent

  
  

 B-18 

 EXHIBIT C 
  

INSTRUCTION TO PURCHASE CONTRACT AGENT 
  
 The Bank of New York 
 The Purchase Contract Agent 
 101 Barclay Street, Floor 8W 
 New York, NY 10286 
 Attention: Corporate Trust Administration 
 Fax: 212-815-5707 
  
 Re:    [             Corporate Units] [             Treasury Units] of The PMI
Group, Inc., a Delaware corporation (the “Company”). 
  
 The undersigned Holder hereby notifies you that it has delivered to [            ], as Securities Intermediary, for credit to the Collateral Account,
$             aggregate principal amount of [Senior Notes] [Treasury Securities] in exchange for the [Pledged Senior Notes] [Pledged Treasury Securities] [Pledged Applicable
Ownership Interests] held in the Collateral Account, in accordance with the Pledge Agreement, dated as of November 3, 2003 (the “Pledge Agreement”; unless otherwise defined herein, terms defined in the Pledge Agreement are used
herein as defined therein), between you, the Company, the Collateral Agent, the Custodial Agent and the Securities Intermediary. The undersigned Holder has paid all applicable fees and expenses relating to such exchange. The undersigned Holder
hereby instructs you to instruct the Collateral Agent to release to you on behalf of the undersigned Holder the [Pledged Senior Notes] [Pledged Treasury Securities] related to such [Corporate Units] [Treasury Units] [Pledged Applicable Ownership
Interests]. 
  

			
	 Date:

	  	

	 	  	 Signature

	
	 Signature Guarantee:

  

 C-1 

 Please print name and address of Registered Holder: 
  

			
	  

	  	  

	 Name
	  	 Social Security or other Taxpayer
 Identification Number, if any

	 Address
	  	 
	  

	  	 
	  

	  	 
	  

	  	 
	  

	  	 

  
  

 C-2 

 EXHIBIT D 
  

NOTICE FROM PURCHASE CONTRACT AGENT 
 TO
HOLDERS 
  
 (Transfer of Collateral upon Occurrence of a
Termination Event) 
  

	
	 [HOLDER]

	  

	  

	 Attention:

	 Telecopy:
                    

  

	 	Re:	[             Corporate Units] [            
Treasury Units] of The PMI Group, Inc., a Delaware corporation (the “Company”) 

  
 Please refer to the Purchase Contract Agreement, dated as of November 3, 2003 (the “Purchase Contract Agreement”; unless otherwise
defined herein, terms defined in the Purchase Contract Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury Units
from time to time. 
  
 We hereby notify you that a Termination
Event has occurred and that [the Senior Notes] [Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio] [the Treasury Securities] compromising a portion of your ownership interest in
             [Corporate Units] [Treasury Units] have been released and are being held by us for your account pending receipt of transfer instructions with respect to such [Senior
Notes][Applicable Ownership Interests][Treasury Securities] (the “Released Securities”). 
  
 Pursuant to Section 3.15 of the Purchase Contract Agreement, we hereby request written transfer instructions with respect to the Released Securities. Upon
receipt of your instructions and upon transfer to us of your [Corporate Units][Treasury Units] effected through book-entry or by delivery to us of your [Corporate Units Certificate][Treasury Units Certificate], we shall transfer the Released
Securities by book-entry transfer or other appropriate procedures, in accordance with your instructions. In the event you fail to effect such transfer or delivery, the Released Securities and any distributions thereon, shall be held in our name, or
a nominee in trust for your benefit, until such time as such [Corporate Units][Treasury Units] are transferred or your [Corporate Units 
  

 D-1 

 Certificate] [Treasury Units Certificate] is surrendered or satisfactory evidence is provided that such [Corporate Units
Certificate][Treasury Units Certificate] has been destroyed, lost or stolen, together with any indemnification that we or the Company may require. 
  

					
	 Date:
	 	 	 	 By:    Bank of New York,
   as the Purchase Contract Agent

			
	 	 	 	 	  

	 	 	 	 	 Name:

	 	 	 	 	 Title:        Authorized Signatory

  
  

 D-2 

 EXHIBIT E 
  

NOTICE TO SETTLE BY CASH 
  
 The Bank of New York 
 The Purchase Contract Agent 
 101 Barclay Street, Floor 8W 
 New York, NY 10286 
 Attention: Corporate Trust Administration 
 Fax: 212-815-5707 
  

	 	Re:	             Corporate Units of The PMI Group, Inc., a Delaware corporation (the “Company”)

  
 The undersigned Holder hereby irrevocably
notifies you in accordance with Section 5.02 of the Purchase Contract Agreement, dated as of November 3, 2003 (the “Purchase Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract Agreement are
used herein as defined therein), between the Company and you, as Purchase Contract Agent and as attorney-in-fact for the Holders of the Purchase Contracts, that such Holder has elected to pay to the Securities Intermediary for deposit in the
Collateral Account, on or prior to 5:00 p.m. (New York City time) on the [fourth] Business Day immediately preceding the Purchase Contract Settlement Date (in lawful money of the United States by certified or cashiers’ check or wire transfer,
in immediately available funds), $             as the Purchase Price for the shares of Common Stock issuable to such Holder by the Company with respect to
             Purchase Contracts on the Purchase Contract Settlement Date. The undersigned Holder hereby instructs you to notify promptly the Collateral Agent of the undersigned
Holders’ election to make such Cash Settlement with respect to the Purchase Contracts related to such Holder’s Corporate Units. 
  

			
	 Date:

	  	  

	 	  	 Signature

		
	 	  	 Signature Guarantee:

	 Please print name and address of Registered Holder:
	  	 
	  

	  	 
	  

	  	 

  

 E-1 

 EXHIBIT F 
  

NOTICE FROM PURCHASE CONTRACT AGENT 
 TO
COLLATERAL AGENT 
 (Settlement of Purchase Contract through Remarketing) 
  
 Bank of New York 
 The Collateral Agent

 101 Barclay Street, Floor 8W 
 New York, NY 10286 

Attention: Corporate Trust Administration 
 Fax: 212-815-5707 

 

	 	Re:	             Corporate Units of The PMI Group, Inc., a Delaware corporation (the “Company”)

  
 Please refer to the Purchase Contract Agreement,
dated as of November 3, 2003 (the “Purchase Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract Agreement are used herein as defined therein), between the Company and the undersigned, as
Purchase Contract Agent and as attorney-in-fact for the Holders of Corporate Units from time to time. 
  
 In accordance with Section 5.02 of the Purchase Contract Agreement and, based on notices of [Early Settlements][Cash Settlements] received from Holders of
Corporate Units as of 5:00 p.m. (New York City time), on the fifth Business Day immediately preceding the [Initial] [Final] Remarketing Date, we hereby notify you that an aggregate principal amount of
$             Senior Notes are to be tendered for purchase in the Remarketing. 
  

							
	 Date:
	 	 	 	 By:
	 	 Bank of New York, as the Purchase Contract Agent

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:        Authorized Signatory

  

 F-1

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