Document:

Indenture

 Exhibit 4.1 
 EXECUTION COPY 
  

 MENTOR GRAPHICS CORPORATION 
 as Issuer 
 And 
 WILMINGTON TRUST COMPANY 
 as Trustee 
  

 INDENTURE 
 Dated as of 
 March 3, 2006 
  

 6.25% Convertible Subordinated Debentures due 2026 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1. DEFINITIONS
	  	1
			
	 Section 1.01
	  	Definitions	  	1
		
	 ARTICLE 2. ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF DEBENTURES
	  	11
			
	 Section 2.01
	  	Designation Amount and Issue of Debentures	  	11
	 Section 2.02
	  	Form of Debentures	  	11
	 Section 2.03
	  	Date and Denomination of Debentures; Payments of Interest	  	12
	 Section 2.04
	  	Execution of Debentures	  	14
	 Section 2.05
	  	Exchange and Registration of Transfer Debentures; Restrictions on Transfer; Depositary	  	14
	 Section 2.06
	  	Mutilated, Destroyed, Lost or Stolen Debentures	  	21
	 Section 2.07
	  	Temporary Debentures	  	22
	 Section 2.08
	  	Cancellation of Debentures Paid, Etc.	  	22
	 Section 2.09
	  	CUSIP Numbers	  	22
		
	 ARTICLE 3. REDEMPTION OF DEBENTURES
	  	23
			
	 Section 3.01
	  	Optional Redemption by the Company	  	23
	 Section 3.02
	  	Notice of Redemptions; Selection of Debentures	  	23
	 Section 3.03
	  	Payment of Debentures Called for Redemption	  	25
	 Section 3.04
	  	Conversion Arrangement on Call for Redemption	  	25
	 Section 3.05
	  	Redemption at Option of Debentureholders on Specific Dates	  	26
	 Section 3.06
	  	Repurchase at Option of Debentureholders upon a Fundamental Change	  	28
	 Section 3.07
	  	Deposit of Fundamental Change Repurchase Price	  	31
	 Section 3.08
	  	Repayment to the Company	  	31
		
	 ARTICLE 4. SUBORDINATION OF DEBENTURES
	  	32
			
	 Section 4.01
	  	Agreement of Subordination	  	32
	 Section 4.02
	  	Payments to Debentureholders	  	32
	 Section 4.03
	  	Subrogation of Debentures	  	35
	 Section 4.04
	  	Authorization to Effect Subordination	  	36
	 Section 4.05
	  	Notice to Trustee	  	36
	 Section 4.06
	  	Trustee’s Relation to Senior Debt	  	37
	 Section 4.07
	  	No Impairment of Subordination	  	37
	 Section 4.08
	  	Certain Conversions Not Deemed Payment	  	37

					
	 Section 4.09
	  	Article Applicable to Paying Agents	  	38
	 Section 4.10
	  	Senior Debt Entitled to Rely	  	38
	 Section 4.11
	  	Reliance on Judicial Order or Certificate of Liquidating Agent	  	38
		
	 ARTICLE 5. PARTICULAR COVENANTS OF THE COMPANY
	  	38
			
	 Section 5.01
	  	Payment of Principal, Premium and Interest	  	38
	 Section 5.02
	  	Maintenance of Office or Agency	  	39
	 Section 5.03
	  	Appointments to Fill Vacancies in Trustee’s Office	  	39
	 Section 5.04
	  	Provisions as to Paying Agent	  	39
	 Section 5.05
	  	Existence	  	40
	 Section 5.06
	  	Maintenance of Properties	  	41
	 Section 5.07
	  	Payment of Taxes and Other Claims	  	41
	 Section 5.08
	  	Rule 144A Information Requirement	  	41
	 Section 5.09
	  	Stay, Extension and Usury Laws	  	41
	 Section 5.10
	  	Compliance Certificate	  	42
		
	 ARTICLE 6. DEBENTUREHOLDERS’ LIST AND REPORTS BY THE COMPANY AND THE TRUSTEE
	  	42
			
	 Section 6.01
	  	Debentureholders’ Lists	  	42
	 Section 6.02
	  	Preservation and Disclosure of Lists	  	43
	 Section 6.03
	  	Reports by Trustee	  	43
	 Section 6.04
	  	Reports by Company	  	43
		
	 ARTICLE 7. REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS ON AN EVENT OF DEFAULT
	  	44
			
	 Section 7.01
	  	Events of Default	  	44
	 Section 7.02
	  	Payments of Debentures on Default; Suit Therefor	  	46
	 Section 7.03
	  	Application of Monies Collected by Trustee	  	47
	 Section 7.04
	  	Proceedings by Debentureholders	  	48
	 Section 7.05
	  	Proceedings by Trustee	  	49
	 Section 7.06
	  	Remedies Cumulative and Continuing	  	49
	 Section 7.07
	  	Direction of Proceedings and Waiver of Defaults by Majority of Debentureholders	  	49
	 Section 7.08
	  	Notice of Defaults	  	50
	 Section 7.09
	  	Undertaking to Pay Costs	  	50
		
	 ARTICLE 8. THE TRUSTEE
	  	50
			
	 Section 8.01
	  	Duties and Responsibilities of Trustee	  	50
	 Section 8.02
	  	Reliance on Documents, Opinions, Etc.	  	52
	 Section 8.03
	  	No Responsibility for Recitals, Etc.	  	52
	 Section 8.04
	  	Trustee, Paying Agents, Conversion Agents or Registrar May Own Debentures	  	53
	 Section 8.05
	  	Monies to Be Held in Trust	  	53

					
	 Section 8.06
	  	Compensation and Expenses of Trustee	  	53
	 Section 8.07
	  	Officers’ Certificate as Evidence	  	54
	 Section 8.08
	  	Conflicting Interests of Trustee	  	54
	 Section 8.09
	  	Eligibility of Trustee	  	54
	 Section 8.10
	  	Resignation or Removal of Trustee	  	54
	 Section 8.11
	  	Acceptance by Successor Trustee	  	55
	 Section 8.12
	  	Succession by Merger, Etc.	  	56
	 Section 8.13
	  	Preferential Collection of Claims	  	56
	 Section 8.14
	  	Trustee’s Application for Instructions from the Company	  	56
		
	 ARTICLE 9. THE DEBENTUREHOLDERS
	  	57
			
	 Section 9.01
	  	Action by Debentureholders	  	57
	 Section 9.02
	  	Proof of Execution by Debentureholders	  	57
	 Section 9.03
	  	Who Are Deemed Absolute Owners	  	57
	 Section 9.04
	  	Company-Owned Debentures Disregarded	  	58
	 Section 9.05
	  	Revocation of Consents; Future Debentureholders Bound	  	58
		
	 ARTICLE 10. MEETINGS OF DEBENTUREHOLDERS
	  	58
			
	 Section 10.01
	  	Purpose of Meetings	  	58
	 Section 10.02
	  	Call of Meetings by Trustee	  	59
	 Section 10.03
	  	Call of Meetings by Company or Debentureholders	  	59
	 Section 10.04
	  	Qualifications for Voting	  	59
	 Section 10.05
	  	Regulations	  	60
	 Section 10.06
	  	Voting	  	60
	 Section 10.07
	  	No Delay of Rights by Meeting	  	61
		
	 ARTICLE 11. SUPPLEMENTAL INDENTURES
	  	61
			
	 Section 11.01
	  	Supplemental Indentures without Consent of Debentureholders	  	61
	 Section 11.02
	  	Supplemental Indenture with Consent of Debentureholders	  	62
	 Section 11.03
	  	Effect of Supplemental Indenture	  	64
	 Section 11.04
	  	Notation on Debentures	  	64
	 Section 11.05
	  	Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee	  	64
		
	 ARTICLE 12. CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	  	64
			
	 Section 12.01
	  	Company May Consolidate, Etc, on Certain Terms	  	64
	 Section 12.02
	  	Successor Corporation to Be Substituted	  	65
	 Section 12.03
	  	Opinion of Counsel to Be Given Trustee	  	65
		
	 ARTICLE 13. SATISFACTION AND DISCHARGE OF INDENTURE
	  	65
			
	 Section 13.01
	  	Discharge of Indenture	  	65
	 Section 13.02
	  	Deposited Monies to Be Held in Trust by Trustee	  	66

					
	 Section 13.03
	  	Paying Agent to Repay Monies Held	  	66
	 Section 13.04
	  	Return of Unclaimed Monies	  	66
	 Section 13.05
	  	Reinstatement	  	66
		
	 ARTICLE 14. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	  	67
			
	 Section 14.01
	  	Indenture and Debentures Solely Corporate Obligations	  	67
		
	 ARTICLE 15. CONVERSION OF DEBENTURES
	  	67
			
	 Section 15.01
	  	Conversion Privilege and Conversion Rate	  	67
	 Section 15.02
	  	Conversion Procedures	  	71
	 Section 15.03
	  	Fractional Shares	  	73
	 Section 15.04
	  	Taxes on Conversion	  	74
	 Section 15.05
	  	Company to Provide Stock	  	74
	 Section 15.06
	  	Adjustment of Conversion Rate	  	74
	 Section 15.07
	  	No Adjustment	  	81
	 Section 15.08
	  	[Intentionally Omitted]	  	81
	 Section 15.09
	  	Notice of Adjustment	  	81
	 Section 15.10
	  	Notice of Certain Transactions	  	81
	 Section 15.11
	  	Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale	  	81
	 Section 15.12
	  	Trustee’s Disclaimer	  	83
	 Section 15.13
	  	Voluntary Increase	  	83
	 Section 15.14
	  	Payment of Cash in Lieu of Common Stock	  	83
		
	 ARTICLE 16. MISCELLANEOUS PROVISIONS
	  	84
			
	 Section 16.01
	  	Provisions Binding on Company’s Successors and Assigns	  	84
	 Section 16.02
	  	Official Acts by Successor Corporation	  	85
	 Section 16.03
	  	Addresses for Notices, Etc.	  	85
	 Section 16.04
	  	Governing Law	  	85
	 Section 16.05
	  	Evidence of Compliance with Conditions Precedent; Certificates to Trustee	  	85
	 Section 16.06
	  	Legal Holidays	  	86
	 Section 16.07
	  	Trust Indenture Act	  	86
	 Section 16.08
	  	No Security Interest Created	  	86
	 Section 16.09
	  	Benefits of Indenture	  	86
	 Section 16.10
	  	Table of Contents, Headings, Etc.	  	86
	 Section 16.11
	  	Authenticating Agent	  	86
	 Section 16.12
	  	Execution in Counterparts	  	87
	 Section 16.13
	  	Severability	  	87

 Reconciliation and Tie Between the Trust Indenture Act of 1939 and Indenture, dated as of March 3, 2006, between
Mentor Graphics Corporation and Wilmington Trust Company, as Trustee. 
  

					
	 TRUST INDENTURE ACT SECTION
	  	INDENTURE SECTION
	 Section 310
	 	 (a)(1)
	  	8.09
		 	 (a)(2)
	  	8.09
		 	 (a)(3)
	  	N.A.
		 	 (a)(4)
	  	N.A.
		 	 (a)(5)
	  	8.09
		 	 (b)
	  	8.08; 8.09; 8.10; 8.11
	 Section 311
	 	 (a)
	  	8.13
		 	 (b)
	  	8.13
		 	 (b)(2)
	  	8.13
	 Section 312
	 	 (a)
	  	6.01; 6.02(a)
		 	 (b)
	  	6.02(b)
		 	 (c)
	  	6.02(c)
	 Section 313
	 	 (a)
	  	6.03(a)
		 	 (b)
	  	6.03(a)
		 	 (c)
	  	6.03(a)
		 	 (d)
	  	6.03(b)
	 Section 314
	 	 (a)
	  	6.04
		 	 (b)
	  	N.A.
		 	 (c)(1)
	  	16.05
		 	 (c)(2)
	  	16.05
		 	 (c)(3)
	  	N.A.
		 	 (d)
	  	N.A.
		 	 (e)
	  	16.05
	 Section 315
	 	 (a)
	  	8.01
		 	 (b)
	  	7.08
		 	 (c)
	  	8.01
		 	 (d)
	  	8.01
		 	 (d)(1)
	  	8.01(a)
		 	 (d)(2)
	  	8.01(b)
		 	 (d)(3)
	  	8.01(c)
		 	 (e)
	  	7.09
	 Section 316
	 	 (a)
	  	7.07
		 	 (a)(1)(A)
	  	7.07
		 	 (a)(1)(B)
	  	7.07
		 	 (a)(2)
	  	N.A.
		 	 (b)
	  	7.04
	 Section 317
	 	 (a)(1)
	  	7.05
		 	 (a)(2)
	  	7.05
		 	 (b)
	  	5.04
	 Section 318
	 	 (a)
	  	16.07

  

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

  

	**	Note: N.A. means Not Applicable. 

 INDENTURE 
 This INDENTURE, dated as of March 3, 2006, is between Mentor Graphics Corporation, an Oregon corporation (hereinafter called the “Company”), having its principal office at 8005 SW Boeckman
Road, Wilsonville, Oregon 97070-7777, and Wilmington Trust Company, a Delaware banking corporation, as trustee hereunder (hereinafter called the “Trustee”), having its principal corporate office at 1100 North Market Street, Rodney
Square North, Wilmington, Delaware 19890-0001. 
 W I T N E S S E T H : 
 WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its 6.25% Convertible Subordinated Debentures due 2026
(hereinafter called the “Debentures”), in an aggregate principal amount not to exceed $200,000,000 and, to provide the terms and conditions upon which the Debentures are to be authenticated, issued and delivered, the Company has
duly authorized the execution and delivery of this Indenture; and 
 WHEREAS, the Debentures, the certificate of authentication to be borne
by the Debentures, a form of assignment, a form of option to elect repayment upon a Fundamental Change, a form of option to elect repayment on a specific date, and a form of conversion notice to be borne by the Debentures are to be substantially in
the forms hereinafter provided for; and 
 WHEREAS, all acts and things necessary to make the Debentures, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as provided in this Indenture, the valid, binding and legal obligations of the Company, and to constitute these presents a valid agreement according to its terms,
have been done and performed, and the execution of this Indenture and the issue hereunder of the Debentures have in all respects been duly authorized. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
 That in order to declare the terms and conditions upon which
the Debentures are, and are to be, authenticated, issued and delivered, and in consideration of the premises and of the purchase and acceptance of the Debentures by the holders thereof, the Company covenants and agrees with the Trustee for the equal
and proportionate benefit of the respective holders from time to time of the Debentures (except as otherwise provided below), as follows: 
 ARTICLE 1. 
 DEFINITIONS 
 Section 1.01     Definitions. The terms defined in this Section 1.01 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined
in the Securities Act (except as herein otherwise expressly provided or unless the context otherwise requires) shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the
execution of this Indenture. The words “herein,” “hereof,” “hereunder,” and words of similar 

 
import refer to this Indenture as a whole and not to any particular Article, Section or other Subdivision. The terms defined in this Article include the
plural as well as the singular. 
 “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person means the power to direct or cause
the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have
meanings correlative to the foregoing. 
 “Aggregate Share Cap” means 80 shares of Common Stock per $1,000 principal amount
of Debentures, subject to adjustment upon the occurrence of any of the events described in clauses (1) through (4) under Section 15.06(a). 
 “Applicable Procedures” means, with respect to any transfer or exchange of beneficial ownership interests in, or conversion of, a Global Debenture, the rules and procedures of the Depositary, to the
extent applicable to such transfer, exchange or conversion.” 
 “Board of Directors” means the Board of Directors of
the Company or a committee of such Board of Directors duly authorized to act for it hereunder. 
 “Business Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday which is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive order to close in The City of New York. 
 “Change of Control” means the occurrence of any of the following after the original issuance of the Debentures: (a) the acquisition
by any Person, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchase, merger or other acquisition transactions, of shares of the Company’s capital stock entitling that
Person to exercise 50% or more of the total voting power of all shares of Company’s capital stock entitled to vote generally in elections of directors, other than any acquisition by the Company, any of the Company’s subsidiaries or any of
the Company’s employee benefit plans, (b) the first day on which a majority of the members of the Board of Directors of the Company are not Continuing Directors, or (c) the Company’s consolidation or merger with or into any other
Person, any merger of another Person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially all of the Company’s properties and assets to another Person, other than (i) any transaction
pursuant to which holders of the Company’s capital stock immediately prior to the transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares of capital stock entitled to vote
generally in elections of directors of the continuing or surviving Person immediately after giving effect to such transaction, or (ii) any merger, share exchange, transfer of assets or similar transaction solely for the purpose of changing the
Company’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock, if at all, solely into shares of common stock, ordinary shares or American Depositary Shares of the
surviving entity or a direct or indirect parent of the surviving corporation; provided that a Change of Control shall not be deemed to have occurred if either (x) the Closing Price of the Common 

  

 2 

 
Stock for any five (5) Trading Days during the ten (10) Trading Days immediately preceding the Change of Control is equal to at least 105% of the
Conversion Price in effect on each such Trading Day (the “105% Trading Price Exception”) or (y) in the case of a transaction otherwise constituting a Change of Control, all of the consideration (excluding cash
payments for fractional shares) in such transaction constituting the Change of Control consists of common stock traded on a United States national securities exchange or quoted on the Nasdaq National Market (or which will be so traded or quoted when
issued or exchanged in connection with such Change of Control) and as a result of such transaction or transactions the Debentures become convertible solely into such common stock. Beneficial ownership shall be determined in accordance with Rule
13d-3 promulgated by the Commission under the Exchange Act. The term “Person” as used in this definition includes any syndicate or group that would be deemed to be a “person” under
Section 13(d)(3) of the Exchange Act. 
 “Closing Price” means the reported last sale price per share of the Common
Stock (or, if no last sale price is reported, the average of the bid and ask prices per share or, if more than one in either case, the average of the average bid and the average ask prices per share) on such date reported by the Nasdaq National
Market or, if the Common Stock is not quoted on the Nasdaq National Market, as reported by the principal national or regional securities exchange on which the Common Stock is listed. 
 “Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at
any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
 “Common Stock” means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 15.11, however, shares issuable on conversion of Debentures
shall include only shares of the class designated as common stock of the Company at the date of this Indenture (namely, the Common Stock, no par value) or shares of any class or classes resulting from any reclassification or reclassifications
thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the Company;
provided, however, that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable shall be substantially in the proportion which the total number of shares of such class resulting from
all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
 “Company” means the corporation named as the “Company” in the first paragraph of this Indenture, and, subject to the provisions of Article 12, shall include its successors and assigns. 
 “Company Fundamental Change Notice” has the meaning specified in Section 3.06(b). 
 “Company Notice” has the meaning specified in Section 3.05(b). 
  

 3 

 “Company Notice Date” has the meaning specified in Section 3.05(b). 
 “Continuing Director” means, at any date, a member of the Company’s Board of Directors (i) who was a member of such board on
the date hereof or (ii) who was nominated or elected by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Company’s Board of Directors was recommended or
endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or such lesser number comprising a majority of a nominating committee comprised of independent directors if authority for such
nominations or elections has been delegated to a nominating committee whose authority and composition have been approved by at least a majority of the directors who were Continuing Directors at the time such committee was formed. (Under this
definition, if the Board of Directors of the Company as of the date of this Indenture were to approve a new director or directors and then resign, no Change of Control would occur even though the current Board of Directors would thereafter cease to
be in office). 
 “Conversion Date” has the meaning specified in Section 15.02(a). 
 “Conversion Price” shall equal (i) $1,000 divided by (ii) the Conversion Rate, rounded to the nearest cent. 
 “Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon conversion, which rate shall be initially
55.6545 shares of Common Stock for each $1,000 principal amount of Debentures, as adjusted from time to time pursuant to Section 15.06. 
 “Conversion Reference Period” means (i) for Debentures that are converted after the Company has specified a Redemption Date, the ten consecutive Trading Days beginning on the third Trading Day following the Redemption
Date (in the case of Debentures being converted which were previously called for redemption, including a partial redemption, this shall apply only to those Debentures that are subject to redemption); (ii) for Debentures that are converted
during the period beginning on the 30th day prior to the Final Maturity Date of the Debentures, the ten consecutive Trading Days beginning on the third Trading Day following the Final Maturity Date; and (iii) in all other instances, the ten
consecutive Trading Days beginning on the third Trading Day following the Conversion Date. 
 The “Conversion Trigger Price”
has the meaning specified in Section 15.01(a)(1). 
 The “Conversion Value” for each $1,000 principal amount of
Debentures means the average of the Daily Conversion Values as specified in Section 15.01 for each of the ten consecutive Trading Days of the Conversion Reference Period. 
 “Corporate Trust Office” or other similar term, means the designated office of the Trustee at which at any particular time its corporate
trust business shall be administered, which office is, as of the date of this Indenture, located at Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington DE 19890-0011 Attn: Corporate Trust Administration (Mentor
Graphics Corporation, 6.25% Convertible Subordinated Debentures due 2026). 
  

 4 

 “Credit Agreement” means that certain Credit Agreement dated as of June 1, 2005
among the Company, Bank of America, N.A., as Agent, KeyBank National Association, as Documentation Agent, and the other financial institutions from time to time parties thereto (including all deferrals, renewals, extensions, refundings, refinancings
or replacements of, or amendments, modifications or supplements to, the foregoing). 
 “Current Market Price” has the
meaning specified in Section 15.06(a)(9). 
 “Custodian” means Wilmington Trust Company, as custodian with respect to
the Debentures in global form, or any successor entity thereto. 
 The “Daily Conversion Value” means, with respect to any
Trading Day, the product of (1) the applicable Conversion Rate and (2) the Volume Weighted Average Price of Common Stock on such Trading Day. 
 The “Daily Share Amount” means, for each Trading Day of the Conversion Reference Period and each $1,000 principal amount of Debentures surrendered for conversion, a number of shares (but in no event
less than zero) defined by the following formula: 
  

			
	                            (Daily Conversion Value) -
$1,000                            	 	    x 10
	Volume Weighted Average Price Per Share for such Trading Day	 

 “Debenture” or “Debentures” means any 6.25% Convertible
Subordinated Debenture due 2026, as the case may be, authenticated and delivered under this Indenture, including the Global Debenture. 
 “Debenture register” has the meaning specified in Section 2.05(a). 
 “Debenture registrar”
has the meaning specified in Section 2.05(a). 
 “Debentureholders” or “holder” as applied to any
Debenture, or other similar terms (but excluding the term “beneficial holder”), means any Person in whose name at the time a particular Debenture is registered on the Debenture registrar’s books. 
 “default” means any event that is, or after notice or passage of time, or both, would be, an Event of Default. 
 “Defaulted Interest” has the meaning specified in Section 2.03. 
 “Depositary” means, with respect to the Debentures issuable or issued in whole or in part in global form, the Person specified in
Section 2.05(d) as the Depositary with respect to such Debentures, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall mean or
include such successor. 
  

 5 

 “Designated Senior Debt” means any Indebtedness from time to time outstanding under the
Credit Agreement and the Company’s obligations under any other particular Senior Debt in which the instrument creating or evidencing the same or the assumption or guarantee thereof (or related agreements or documents to which the Company is a
party) expressly provides that such Senior Debt shall be “Designated Senior Debt” for purposes of this Indenture or that the Company designates in writing to the Trustee as “Designated Senior Debt” for purposes of this Indenture
(provided that such instrument, agreement or other document may place limitations and conditions on the right of such Senior Debt to exercise the rights of Designated Senior Debt). If any payment made to any holder of any Designated Senior
Debt or its Representative with respect to such Designated Senior Debt is rescinded or must otherwise be returned by such holder or Representative upon the insolvency, bankruptcy or reorganization of the Company or otherwise, the reinstated
Indebtedness of the Company arising as a result of such rescission or return shall constitute Designated Senior Debt effective as of the date of such rescission or return. 
 “Designated Subsidiary” means any existing or future, direct or indirect, Subsidiary of the Company whose assets constitute 15% or more
of the total assets of the Company on a consolidated basis, calculated in accordance with GAAP. 
 “Determination Date” has
the meaning specified in Section 15.06(a)(6). 
 “Distribution Notice” has the meaning specified in
Section 15.01(b). 
 “Event of Default” means any event specified in Section 7.01(a), (b), (c), (d), (e),
(f) or (g). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time. 
 “Exchange Rate Contract” means, with respect to any Person, any
currency swap agreements, forward exchange rate agreements, foreign currency futures or options, exchange rate collar agreements, exchange rate insurance and other agreements or arrangements, or combination thereof, the principal purpose of which is
to provide protection against fluctuations in currency exchange rates. An Exchange Rate Contract may also include an Interest Rate Agreement. 
 “Expiration Time” has the meaning specified in Section 15.06(a)(7). 
 “fair market value”
means the amount which a willing buyer would pay a willing seller in an arm’s-length transaction. 
 “Final Maturity
Date” means March 1, 2026. 
 “Fundamental Change” means a Change of Control or a Termination of Trading.

 “Fundamental Change Expiration Time” has the meaning specified in Section 3.06(b). 
 “Fundamental Change Repurchase Date” has the meaning specified in Section 3.06(a). 
  

 6 

 “Fundamental Change Repurchase Notice” has the meaning specified in
Section 3.06(c). 
 “Fundamental Change Repurchase Price” means 100% of the principal amount of the Debentures to be
repurchased, together with accrued and unpaid interest to, but not including, the Fundamental Change Repurchase Date. 
 “GAAP” means generally accepted accounting principles consistently applied as in effect in the United States from time to time. 
 “Global Debenture” has the meaning set forth in Section 2.05(b). 
 “Guarantee” means a guarantee, other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner, including, without limitation, letters of credit and
reimbursement agreements in respect thereof, of all or any part of any Indebtedness. 
 “Indebtedness” means, with respect
to any Person, any indebtedness of such Person, whether or not contingent, in respect of borrowed money or evidenced by bonds, debentures, the Debentures or similar instruments or letters of credit, bank guarantees or bankers’ acceptances, or
reimbursement agreements in respect thereof, or representing the balance deferred and unpaid of the purchase price of any property, including pursuant to capital leases and sale-and-leaseback transactions, or representing the Company’s
obligations and liabilities, contingent or otherwise, in respect of leases required, in conformity with GAAP, to be accounted for as capitalized lease obligations on the Company’s balance sheet, or under other leases for facilities, equipment
or related assets, whether or not capitalized, entered into or leased for financing purposes, or representing any hedging obligations under an Exchange Rate Contract or an Interest Rate Agreement, except any such balance that constitutes an accrued
expense or trade payable, if and to the extent any of the foregoing indebtedness, other than obligations under an Exchange Rate Contract or an Interest Rate Agreement, would appear as a liability upon a balance sheet of such Person prepared in
accordance with GAAP, and also includes, to the extent not otherwise included, the Guarantee of items which would be included within this definition. The amount of any Indebtedness outstanding as of any date shall be the accreted value thereof, in
the case of any Indebtedness issued with original issue discount. Indebtedness shall not include liabilities for taxes of any kind. 
 “Indenture” means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 
 “Initial Purchasers” means Merrill, Lynch, Pierce, Fenner & Smith Incorporated, Bank of America Securities LLC, UBS Securities LLC, KeyBanc Capital Markets, a division of McDonald Investments
Inc., and Canaccord Adams Inc. 
 “Institutional Accredited Investor” means an institutional “accredited
investor” within the meaning of Rule 501(a)(l), (2), (3) or (7) under the Securities Act. 
 “Interest Payment
Date” means March 1 and September 1 of each year, commencing September 1, 2006; provided, however, that, except for an interest Payment Date coinciding with 

  

 7 

 
the Final Maturity Date or earlier Redemption Date or Repurchase Date), if any Interest Payment Date is a day that is not a Business Day, that Interest
Payment Date will be postponed to the next succeeding Business Day. 
 “Interest Rate Agreement” means, with respect to any
Person, any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement the principal purpose of which is to protect the party indicated therein against fluctuations in interest rates.

 “Liquidated Damages” has the meaning specified in Section 3(a) of the Registration Rights Agreement. 
 “Non-Payment Default” has the meaning specified in Section 4.02(ii). 
 “Officers’ Certificate,” when used with respect to the Company, means a certificate signed by both (a) the Chairman of the
Board, the Chief Executive Officer, the President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”) and (b) the Treasurer or any Assistant
Treasurer, the Controller or any Assistant Controller, or the Secretary or any Assistant Secretary of the Company. 
 “105% Trading
Price Exception” has the meaning specified within the definition of Change of Control. 
 “Opinion of Counsel”
means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company, or other counsel reasonably acceptable to the Trustee. 
 “outstanding,” when used with reference to Debentures and subject to the provisions of Section 9.04, means, as of any particular time, all Debentures authenticated and delivered by the Trustee
under this Indenture, except: 
  

	 	•	 	Debentures theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

  

	 	•	 	Debentures, or portions thereof, (i) for the redemption of which monies in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent
(other than the Company) or (ii) which shall have been otherwise defeased in accordance with Article 13; 

  

	 	•	 	Debentures in lieu of which, or in substitution for which, other Debentures shall have been authenticated and delivered pursuant to the terms of Section 2.06; and

  

	 	•	 	Debentures converted into Common Stock pursuant to Article 15 and Debentures deemed not outstanding pursuant to Article 3. 

 “Payment Blockage Notice” has the meaning specified in Section 4.02(ii). 
  

 8 

 “Payment Default” has the meaning specified in Section 4.02(i) 
 “Person” means a corporation, an association, a partnership, a limited liability company, an individual, a joint venture, a joint stock
company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof. 
 “PORTAL
Market” means The PORTAL Market operated by the National Association of Securities Dealers, Inc. or any successor thereto. 
 “Predecessor Debenture” of any particular Debenture means every previous Debenture evidencing all or a portion of the same debt as that evidenced by such particular Debenture, and, for the purposes of this definition, any
Debenture authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or stolen Debenture shall be deemed to evidence the same debt as the lost, destroyed or stolen Debenture that it replaces. 
 “Principal Amount” has the meaning specified in Section 2.05(b). 
 “Purchase Date” has the meaning specified in Section 3.05(a). 
 “Purchase Notice” has the meaning specified in Section 3.05(a)(i). 
 “Purchased Shares” has the meaning specified in Section 15.06(a)(7). 
 “Put Right Purchase Price” has the meaning specified in Section 3.05(a). 
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
 “Record Date” has the meaning specified in Section 2.03, except as set for in Section 15.06(c). 
 “Redemption Date” has the meaning specified in Section 3.02. 
 “Registration Rights Agreement” means that certain Registration Rights Agreement, dated as of March 3, 2006, among the Company and
the Initial Purchasers, as amended from time to time in accordance with its terms. 
 “Representative” means (a) the
indenture trustee or other trustee, agent or representative for holders of Senior Debt or (b) with respect to any Senior Debt that does not have any such trustee, agent or other representative, (i) in the case of such Senior Debt issued
pursuant to an agreement providing for voting arrangements as among the holders or owners of such Senior Debt, any holder or owner of such Senior Debt acting with the consent of the required persons necessary to bind such holders or owners of such
Senior Debt and (ii) in the case of all other such Senior Debt, the holder or owner of such Senior Debt. 
 “Responsible
Officer”, when used with respect to the Trustee, means an officer of the Trustee in the Corporate Trust Office assigned and duly authorized by the Trustee to administer this Indenture. 
  

 9 

 “Restricted Securities” has the meaning specified in Section 2.05(d). 

“Rights Plan” has the meaning specified in Section 15.06(a)(5). 
 “Rule 144A” means Rule 144A as promulgated under the Securities Act. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from
time to time. 
 “Senior Debt” with respect to the Company means all Indebtedness, except that Senior Debt shall not
include: (a) Indebtedness of or amounts owed by the Company for compensation to employees, or for goods or materials purchased or for services obtained in the ordinary course of business, (b) Indebtedness of the Company to any subsidiary
of the Company, (c) Indebtedness of the Company that expressly provides that it shall not be senior in right of payment to the Debentures or expressly provides that it is pari passu with or junior to the Debentures, or (d) any
Indebtedness under the Company’s existing 6 7/8% Convertible Subordinated Notes Due 2007 or the
Company’s existing Floating Rate Convertible Debentures due 2023 (with which, in the case of (d), the Debentures governed hereunder rank pari passu). 
 “Subsidiary” means, with respect to any Person, (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of capital stock or other
equity interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other
subsidiaries of that Person (or a combination thereof) and (ii) any partnership (a) the sole general partner or managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which
are such Person or of one or more subsidiaries of such Person (or any combination thereof). 
 “Termination of
Trading” means that the Common Stock or other common stock into which the Debentures are convertible is neither listed for trading on a United States national securities exchange nor approved for listing on the Nasdaq National Market
or any similar United States system of automated dissemination of quotations of securities prices, or traded in over-the-counter securities markets, and no American Depositary Shares or similar instruments for such common stock are so listed or
approved for listing in the United States. 
 “Trading Day” shall mean (x) if the applicable security is quoted on the
Nasdaq National Market, a day on which trades may be made thereon or (y) if the applicable security is listed or admitted for trading on the New York Stock Exchange or another national securities exchange, a day on which the New York Stock
Exchange or another national securities exchange is open for business or (z) if the applicable security is not so listed, admitted for trading or quoted, any day other than a Saturday or Sunday or a day on which banking institutions in the
State of New York are authorized or obligated by law or executive order to close. 
 The “Trading Price” of the Debentures
on any date of determination means the average of the secondary market bid quotations obtained by the Trustee for $5,000,000 principal amount of the Debentures at approximately 3:30 p.m., New York City time, on such determination date from three
nationally recognized securities dealers selected by the Company; provided that if 

  

 10 

 
three such bids cannot reasonably be obtained by the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and if only one
such bid can reasonably be obtained by the Trustee, that one bid shall be used. If the Trustee cannot reasonably obtain at least one bid for $5,000,000 principal amount of the Debentures from a nationally recognized securities dealer, then the
Trading Price per $1,000 principal amount of Debentures will be deemed to be less than 98% of the product of the closing price of the Common Stock and the Conversion Rate of the Debentures. 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 
 “Trustee” means Wilmington Trust Company and its successors and any corporation resulting from or surviving any consolidation or merger
to which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder. 
 The
“Volume Weighted Average Price” per share of Common Stock on any Trading Day means such price as displayed on Bloomberg (or any successor service) page MENT <equity> VAP in respect of the period from 9:30 a.m. to 4:00 p.m.,
New York City time, on such Trading Day; or, if such price is not available, the Volume Weighted Average Price means the market value per share of Common Stock on such day as determined by a nationally recognized independent investment banking firm
retained by the Company for this purpose. 
 The definitions of certain other terms are as specified in Sections 2.05, 3.05 and 3.06 and
Article 15. 
 ARTICLE 2. 
 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION 
 AND EXCHANGE OF DEBENTURES 
 Section 2.01     Designation Amount and Issue of Debentures . The Debentures shall be designated as “6.25% Convertible
Subordinated Debentures due 2026,” not to exceed the aggregate principal amount of $200,000,000 (except pursuant to Sections 2.05, 2.06, 3.03, 3.05, 3.06 and 15.02 hereof or as otherwise expressly permitted herein) upon the execution of
this Indenture, or from time to time thereafter, may be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Debentures to or upon the written order of the Company,
signed by (a) its Chairman of the Board, Chief Executive Officer, President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”) and (b) its
Treasurer or any Assistant Treasurer, its Controller or any Assistant Controller or its Secretary or any Assistant Secretary, without any further action by the Company hereunder. 
 Section 2.02     Form of Debentures . The Debentures and the Trustee’s certificate of authentication to be borne by such
Debentures shall be substantially in the form set forth in Exhibit A, which is incorporated in and made a part of this Indenture. 
 Any of the Debentures may have such letters, numbers or other marks of identification and such notations, legends and endorsements as the officers executing the same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule 

  

 11 

 
or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Debentures may be
listed, or to conform to usage. 
 Any Debenture in global form shall represent such of the outstanding Debentures as shall be specified
therein and shall provide that it shall represent the aggregate amount of outstanding Debentures from time to time endorsed thereon and that the aggregate amount of outstanding Debentures represented thereby may from time to time be increased or
reduced to reflect transfers or exchanges permitted hereby. Any endorsement of a Debenture in global form to reflect the amount of any increase or decrease in the amount of outstanding Debentures represented thereby shall be made by the Trustee or
the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Debentures in accordance with this Indenture. Payment of principal of and interest and premium, if any, on any Debenture in global form
shall be made to the Debentureholder. 
 The terms and provisions contained in the form of Debenture attached as Exhibit A hereto
shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. 
 Section 2.03     Date and Denomination of Debentures; Payments of Interest. The Debentures shall be
issuable in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. Every Debenture shall be dated the date of its authentication and shall bear interest from the applicable date in each case as
specified on the face of the form of Debenture attached as Exhibit A hereto. Interest on the Debentures shall be calculated using a 360-day year consisting of twelve 30-day months. 
 The Person in whose name any Debenture (or its Predecessor Debenture) is registered on the Debenture register at the close of business on any Record Date
with respect to any Interest Payment Date shall be entitled to receive the interest payable on such Interest Payment Date, except (i) that the interest payable upon redemption (unless the Redemption Date is an Interest Payment Date) will be
payable to the Person to whom principal is payable and (ii) as set forth in the next succeeding sentence. In the case of any Debenture (or portion thereof) that is converted during the period from (but excluding) a Record Date to (but
excluding) the next succeeding Interest Payment Date, and such Debenture (or portion thereof) has not been called for redemption on a Redemption Date that occurs during such period and is not to be redeemed in connection with a Fundamental Change on
a Fundamental Change Repurchase Date that occurs during such period, such Debenture (or portion thereof) that is submitted for conversion during such period shall be accompanied by funds equal to the interest payable on such succeeding Interest
Payment Date on the principal amount so converted, as provided in the penultimate sentence of Section 15.02(c) hereof. The preceding sentence shall not apply to; (i) Debentures that are surrendered for conversion after being called by the
Company for redemption with a Redemption Date that is after a Record Date for an Interest Payment Date but prior to the corresponding Interest Payment Date, (ii) Debentures that are surrendered for conversion after being called by the Company
for redemption in connection with a Fundamental Change with a Fundamental Change Repurchase Date that is after a Record Date for an Interest Payment Date but prior to the corresponding Interest Payment Date or (iii) Debentures surrendered for
conversion between the record date for the final Interest Payment Date and the opening of 

  

 12 

 
business on the final Interest Payment Date. Interest shall be payable at the office of the Company maintained by the Company for such purposes in the
Borough of Manhattan, The City of New York, which shall initially be an office or agency of the Trustee and may, as the Company shall specify to the paying agent in writing by each record date, be paid by check mailed to the address of the Person
entitled thereto as it appears in the Debenture register (provided that the holder of Debentures with an aggregate principal amount in excess of $5,000,000 shall, at the written election of such Debentureholder, be paid by wire transfer in
immediately available funds); provided, however, that payments to the Depositary will be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. The term “Record Date” with
respect to any Interest Payment Date shall mean the February 15 or August 15 preceding the relevant March 1 or September 1, respectively. 
 Any interest on any Debenture which is payable, but is not punctually paid or duly provided for, on any March 1 or September 1 (herein called “Defaulted Interest”) shall forthwith cease to
be payable to the Debentureholder on the relevant Record Date by virtue of his having been such Debentureholder, and such Defaulted Interest shall be paid by the Company, at its election in each case, as provided in clause (a) or
(b) below: 
 (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the
Debentures (or their respective Predecessor Debentures) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee
in writing of the amount of Defaulted Interest to be paid on each Debenture and the date of the payment (which shall be not less than twenty-five (25) days after the receipt by the Trustee of such notice, unless the Trustee shall consent to an
earlier date), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Person entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall be not more than fifteen (15) days and not less than ten (10) days prior to the date of the proposed payment, and not less than ten (10) days after the receipt by the Trustee of the
notice of the proposed payment, the Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special
record date therefor to be mailed, first-class postage prepaid, to each Debentureholder at his address as it appears in the Debenture register, not less than ten (10) days prior to such special record date. Notice of the proposed payment of
such Defaulted Interest and the special record date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Debentures (or their respective Predecessor Debentures) were registered at the close of
business on such special record date and shall no longer be payable pursuant to the following clause (2) of this Section 2.03. 
 (b) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Debentures may be
listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice 

  

 13 

 
given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 Section 2.04     Execution of Debentures. The Debentures shall be signed in the name and on behalf of the
Company by the manual or facsimile signature of its Chairman of the Board, Chief Executive Officer, President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice
President”) and attested by the manual or facsimile signature of its Secretary or any of its Assistant Secretaries or its Treasurer or any of its Assistant Treasurers (which may be printed, engraved or otherwise reproduced thereon, by facsimile
or otherwise). Only such Debentures as shall bear thereon a certificate of authentication substantially in the form set forth on the form of Debenture attached as Exhibit A hereto, manually executed by the Trustee (or an authenticating agent
appointed by the Trustee as provided by Section 16.11), shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Debenture executed
by the Company shall be conclusive evidence that the Debenture so authenticated has been duly authenticated and delivered hereunder and that the Debentureholder is entitled to the benefits of this Indenture. 
 In case any officer of the Company who shall have signed any of the Debentures shall cease to be such officer before the Debentures so signed shall have
been authenticated and delivered by the Trustee, or disposed of by the Company, such Debentures nevertheless may be authenticated and delivered or disposed of as though the person who signed such Debentures had not ceased to be such officer of the
Company, and any Debenture may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Debenture, shall be the proper officers of the Company, although at the date of the execution of this Indenture any
such person was not such an officer. 
 Section 2.05     Exchange and Registration of Transfer Debentures;
Restrictions on Transfer; Depositary. 
 (a) The Company shall cause to be kept at the Corporate Trust Office a register
(the register maintained in such office and in any other office or agency of the Company designated pursuant to Section 5.02 being herein sometimes collectively referred to as the “Debenture register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the registration of Debentures and transfers of Debentures. The Debenture register shall be in written form or in any form capable of being converted into written form within
a reasonably prompt period of time. The Trustee is hereby appointed “Debenture registrar” for the purpose of registering Debentures and transfers of Debentures as herein provided. The Company may appoint one or more co-registrars in
accordance with Section 5.02. 
 Upon surrender for registration of transfer of any Debenture to the Debenture registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section 2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more
new Debentures of any authorized denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this Indenture. 
  

 14 

 Debentures may be exchanged for other Debentures of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Debentures to be exchanged at any such office or agency maintained by the Company pursuant to Section 5.02. Whenever any Debentures are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Debentures which the Debentureholder making the exchange is entitled to receive bearing registration numbers not contemporaneously outstanding. 
 All Debentures issued upon any registration of transfer or exchange of Debentures shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Debentures surrendered upon such registration of transfer or exchange. 
 All Debentures presented or surrendered for registration of transfer or for exchange, redemption or conversion shall (if so required by the Company or the Debenture registrar) be duly endorsed, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company, and the Debentures shall be duly executed by the Debentureholder thereof or the Debentureholder’s attorney duly authorized in writing. 
 No service charge shall be made for any registration of transfer or exchange of Debentures, but the Company may require payment of a sum sufficient to
cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Debentures. 
 Neither the Company nor the Trustee nor any Debenture registrar shall be required to exchange or register a transfer of (a) any Debentures for a period of fifteen (15) days next preceding any selection of
Debentures to be redeemed, (b) any Debentures or portions thereof called for redemption pursuant to Section 3.02, (c) any Debentures or portions thereof surrendered for conversion pursuant to Article 15 or (d) any Debentures or
portions thereof tendered for redemption (and not withdrawn) pursuant to Section 3.05 or Section 3.06. 
 (b) So
long as the Debentures are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, all Debentures that, upon initial issuance are beneficially owned by QIBs or as a result of a sale or transfer after initial
issuance are beneficially owned by QIBs, will be represented by one or more Debentures in global form registered in the name of the Depositary or the nominee of the Depositary (the “Global Debenture”), except as otherwise specified
below. The transfer and exchange of beneficial interests in any such Global Debenture shall be effected through the Depositary in accordance with this Indenture and the procedures of the Depositary therefor. The Trustee shall make appropriate
endorsements to reflect increases or decreases in the principal amounts of any such Global Debenture as set forth on the face of the Debenture (“Principal Amount”) to reflect any such transfers. Except as provided below,
beneficial owners of a Global Debenture shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered holders of such
Global Debenture. 
 (c) So long as the Debentures are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, upon any transfer of a definitive Debenture to a 

  

 15 

 
QIB in accordance with Rule 144A, and upon receipt of the definitive Debenture or Debentures being so transferred, together with a certification,
substantially in the form on the reverse of the Debenture, from the transferor that the transfer is being made in compliance with Rule 144A (or other evidence satisfactory to the Trustee), the Trustee shall make an endorsement on the Global
Debenture to reflect an increase in the aggregate Principal Amount of the Debentures represented by such Global Debenture, and the Trustee shall cancel such definitive Debenture or Debentures in accordance with the standing instructions and
procedures of the Depositary, the aggregate Principal Amount of the Debentures represented by such Global Debenture to be increased accordingly; provided, however, that no definitive Debenture, or portion thereof, in respect of which the
Company or an Affiliate of the Company held any beneficial interest shall be included in such Global Debenture until such definitive Debenture is freely tradable in accordance with Rule 144(k) under the Securities Act, provided further that
the Trustee shall issue Debentures in definitive form upon any transfer of a beneficial interest in the Global Debenture to the Company or any Affiliate of the Company. 
 Upon any sale or transfer of a Debenture to an Institutional Accredited Investor (other than pursuant to a registration statement that has been declared effective under the Securities Act), such Institutional
Accredited Investor shall, prior to such sale or transfer, furnish to the Company and/or the Trustee a signed letter containing representations and agreements relating to restrictions on transfer substantially in the form set forth in Exhibit
B to this Indenture. Upon any transfer of a beneficial interest in the Global Debenture to an Institutional Accredited Investor, the Trustee shall make an endorsement on the Global Debenture to reflect a decrease in the aggregate Principal
Amount of the Debentures represented by such Global Debenture, and the Company shall execute a definitive Debenture or Debentures in exchange therefore, and the Trustee, upon receipt of such definitive Debenture or Debentures and the written order
of the Company, shall authenticate and deliver such definitive Debenture or Debentures. 
 Any Debenture in global form may be endorsed with
or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of this Indenture as may be required by the Custodian, the Depositary or by the National Association of Securities Dealers, Inc. in
order for the Debentures to be eligible for The PORTAL Market or as may be required for the Debentures to be tradable on any other market developed for trading of securities pursuant to Rule 144A or required to comply with any applicable law or any
regulation thereunder or with the rules and regulations of any securities exchange or automated quotation system upon which the Debentures may be listed or traded or to conform with any usage with respect thereto, or to indicate any special
limitations or restrictions to which any particular Debentures are subject. 
 (d) Every Debenture that bears or is required
under this Section 2.05(d) to bear the legend set forth in this Section 2.05(d) (together with any Common Stock issued upon conversion of the Debentures and required to bear the legend set forth in Section 2.05(e), collectively, the
“Restricted Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.05(d) (including those set forth in the legend set forth below) unless such restrictions on transfer shall be waived by
written consent of the Company, and the holder of each such Restricted Security, by such Debentureholder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used in Sections 2.05(d) and 2.05(e), the term
“transfer” encompasses any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security. 
  

 16 

 Until the expiration of the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act (or any successor provision), any certificate evidencing such Debenture (and all securities issued in exchange therefor or substitution thereof, other than Common Stock, if any, issued upon conversion thereof, which shall bear the
legend set forth in Section 2.05(e), if applicable) shall bear a legend in substantially the following form, unless such Debenture has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and
which continues to be effective at the time of such transfer), or unless otherwise agreed by the Company in writing, with written notice thereof to the Trustee: 
 THIS DEBENTURE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS. NEITHER THIS DEBENTURE, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. EACH PURCHASER OF THIS DEBENTURE IS HEREBY NOTIFIED THAT THE SELLER OF THIS DEBENTURE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
 THE HOLDER OF THIS DEBENTURE, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH DEBENTURE, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH MENTOR GRAPHICS CORPORATION OR ANY
AFFILIATE OF MENTOR GRAPHICS CORPORATION WAS THE OWNER OF THIS DEBENTURE (OR ANY PREDECESSOR OF SUCH DEBENTURE) ONLY (A) TO MENTOR GRAPHICS CORPORATION OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE DEBENTURES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE

  

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REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO MENTOR GRAPHICS CORPORATION’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE
OTHER SIDE OF THIS DEBENTURE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
 Any Debenture (or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with
their terms or as to conditions for removal of the foregoing legend set forth therein have been satisfied may, upon surrender of such Debenture for exchange to the Debenture registrar in accordance with the provisions of this Section 2.05, be
exchanged for a new Debenture or Debentures, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this Section 2.05(d). 
 Notwithstanding any other provisions of this Indenture (other than the provisions set forth in the second paragraph of Section 2.05(c) and in this
Section 2.05(d)), a Debenture in global form may not be transferred as a whole or in part except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. 
 The Depositary shall be a clearing
agency registered under the Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect to the Debentures in global form. Initially, the Global Debenture shall be issued to the Depositary, registered
in the name of Cede & Co., as the nominee of the Depositary, and deposited with the Custodian for Cede & Co. 
 If at any
time the Depositary for a Debenture in global form notifies the Company that it is unwilling or unable to continue as Depositary for such Debenture, the Company may appoint a successor Depositary with respect to such Debenture. If a successor
Depositary is not appointed by the Company within ninety (90) days after the Company receives such notice, the Company will execute, and the Trustee, upon receipt of an Officers’ Certificate for the authentication and delivery of
Debentures, will authenticate and deliver, Debentures in certificated form, in aggregate principal amount equal to the principal amount of such Debenture in global form, in exchange for such Debenture in global form. 
 If a Debenture in certificated form is issued in exchange for any portion of a Debenture in global form after the close of business at the office or
agency where such exchange occurs on any record date and before the opening of business at such office or agency on the next, succeeding Interest Payment Date, interest will not be payable on such Interest Payment Date in respect of such
certificated Debenture, but will be payable on such Interest Payment Date, 

  

 18 

 
subject to the provisions of Section 2.03, only to the Person to whom interest in respect of such portion of such Debenture in global form is payable in
accordance with the provisions of this Indenture. 
 Debentures in certificated form issued in exchange for all or a part of a Debenture in
global form pursuant to this Section 2.05 shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. Upon
execution and authentication, the Trustee shall deliver such Debentures in certificated form to the Persons in whose names such Debentures in certificated form are so registered. 
 At such time as all interests in a Debenture in global form have been redeemed, converted, canceled, exchanged for Debentures in certificated form, or
transferred to a transferee who receives Debentures in certificated form thereof, such Debenture in global form shall, upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions existing between the
Depositary and the Custodian. At any time prior to such cancellation, if any interest in a Debenture in global form is exchanged for Debentures in certificated form, redeemed, converted, repurchased or canceled, or transferred to a transferee who
receives Debentures in certificated form therefor or any Debenture in certificated form is exchanged or transferred for part of a Debenture in global form, the principal amount of such Debenture in global form shall, in accordance with the standing
procedures and instructions existing between the Depositary and the Custodian, be appropriately reduced or increased, as the case may be, and an endorsement shall be made on such Debenture in global form, by the Trustee or the Custodian, at the
direction of the Trustee, to reflect such reduction or increase. 
 (e) Until the expiration of the holding period applicable
to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), any stock certificate representing Common Stock issued upon conversion of any Debenture shall bear a legend in substantially the following form, unless such
Common Stock has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer) or such Common Stock has been issued upon conversion of
Debentures that have been transferred pursuant to a registration statement that has been declared effective under the Securities Act, or unless otherwise agreed by the Company in writing with written notice thereof to the transfer agent: 

THE SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS. NEITHER THE SHARES OF COMMON STOCK NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE REOFFERED, SOLD ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. EACH PURCHASER OF THE SHARES OF COMMON STOCK IS HEREBY NOTIFIED THAT THE SELLER OF THESE SHARES OF COMMON STOCK MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A THEREUNDER. 
  

 19 

 THE HOLDER OF THE SHARES OF COMMON STOCK, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SHARES OF COMMON STOCK, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH MENTOR GRAPHICS CORPORATION OR ANY
AFFILIATE OF MENTOR GRAPHICS CORPORATION WAS THE OWNER OF THE SHARES OF COMMON STOCK (OR ANY PREDECESSOR OF SUCH SHARES OF COMMON STOCK) ONLY (A) TO MENTOR GRAPHICS CORPORATION OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SHARES OF
COMMON STOCK ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO MENTOR GRAPHICS CORPORATION’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THE SHARES OF COMMON STOCK ARE COMPLETED AND
DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
 Any such Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms or as to which the conditions for removal of the foregoing legend set forth therein have been satisfied
may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like number of
shares of Common Stock, which shall not bear the restrictive legend required by this Section 2.05(e). 
 (f) Any
Debenture or Common Stock issued upon the conversion or exchange of a Debenture that, prior to the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), is purchased or
owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate unless 

  

 20 

 
registered under the Securities Act or resold pursuant to an exemption from the registration requirements of the Securities Act in a transaction which
results in such Debentures or Common Stock, as the case may be, no longer being “restricted securities” (as defined under Rule 144 under the Securities Act). 
 Section 2.06     Mutilated, Destroyed, Lost or Stolen Debentures. In case any Debenture shall become mutilated or be
destroyed, lost or stolen, the Company in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and make available for delivery, a new Debenture, bearing a number
not contemporaneously outstanding, in exchange and substitution for the mutilated Debenture, or in lieu of and in substitution for the Debenture so destroyed, lost or stolen. In every case the applicant for a substituted Debenture shall furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Debenture and
of the ownership thereof. 
 Following receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory security or
indemnity and evidence, as described in the preceding paragraph, the Trustee or such authenticating agent may authenticate any such substituted Debenture and make available for delivery such Debenture. Upon the issuance of any substituted Debenture,
the Company may require the payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Debenture which has matured or is about
to mature or has been called for redemption or has been tendered for redemption (and not withdrawn) or is to be converted into Common Stock shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute
Debenture, pay or authorize the payment of or convert or authorize the conversion of the same (without surrender thereof except in the case of a mutilated Debenture), as the case may be, if the applicant for such payment or conversion shall furnish
to the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such
substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, the Trustee and, if applicable, any paying agent or conversion agent evidence to their satisfaction of the destruction, loss or theft of
such Debenture and of the ownership thereof. 
 Every substitute Debenture issued pursuant to the provisions of this Section 2.06 by
virtue of the fact that any Debenture is destroyed, lost or stolen shall constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debenture shall be found at any time, and shall be entitled to all
the benefits of (but shall be subject to all the limitations set forth in) this Indenture equally and proportionately with any and all other Debentures duly issued hereunder. To the extent permitted by law, all Debentures shall be held and owned
upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment or conversion of mutilated, destroyed, lost or stolen Debentures and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or 

  

 21 

 
hereafter enacted to the contrary with respect to the replacement or payment or conversion of negotiable instruments or other securities without their
surrender. 
 Section 2.07     Temporary Debentures. Pending the preparation of Debentures in certificated form,
the Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon the written request of the Company, authenticate and deliver temporary Debentures (printed or lithographed). Temporary Debentures shall be
issuable in any authorized denomination, and substantially in the form of the Debentures in certificated form, but with such omissions, insertions and variations as may be appropriate for temporary Debentures, all as may be determined by the
Company. Every such temporary Debenture shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the same manner, and with the same effect, as the Debentures in
certificated form. Without unreasonable delay the Company will execute and deliver to the Trustee or such authenticating agent Debentures in certificated form (other than in the case of Debentures in global form) and thereupon any or all temporary
Debentures (other than any such Debenture in global form) may be surrendered in exchange therefor, at each office or agency maintained by the Company pursuant to Section 5.02 and the Trustee or such authenticating agent shall authenticate and
make available for delivery in exchange for such temporary Debentures an equal aggregate principal amount of Debentures in certificated form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so
exchanged, the temporary Debentures shall in all respects be entitled to the same benefits and subject to the same limitations under this Indenture as Debentures in certificated form authenticated and delivered hereunder. 
 Section 2.08     Cancellation of Debentures Paid, Etc. All Debentures surrendered for the purpose of payment, redemption,
conversion, exchange or registration of transfer shall, if surrendered to the Company or any paying agent or any Debenture registrar or any conversion agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to the
Trustee, shall be promptly canceled by it, and no Debentures shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of such canceled Debentures in accordance with its
customary procedures. If the Company shall acquire any of the Debentures, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Debentures unless and until the same are delivered to the Trustee
for cancellation. 
 Section 2.09     CUSIP Numbers. The Company in issuing the Debentures may use
“CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption as a convenience to Debentureholders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Debentures or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Debentures, and
any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
  

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 ARTICLE 3. 
 REDEMPTION OF DEBENTURES 
 Section 3.01     Optional Redemption by the
Company. The Company may not redeem the Debentures at its option at any time prior to March 6, 2011. 
 (a) At any
time and from time to time on or after March 6, 2011, and prior to maturity, the Debentures may be redeemed at the option of the Company, in whole or in part, upon notice as set forth in Section 3.02, at the following redemption prices
(expressed as percentages of the principal amount) together with accrued and unpaid interest, if any (including Liquidated Damages, if any) to, but not including, the date fixed for redemption: 
  

				
	 Period
	  	Redemption
Price	 
	 Beginning on March 6, 2011 and ending on February 29, 2012
	  	101.79	%
	 Beginning on March 1, 2012, and ending on February 28, 2013
	  	100.89	%

 and 100% on March 1, 2013 and at all times thereafter; provided, however, that if the date fixed for
redemption is on a March 1 or September 1, then the interest payable on such date shall be paid to the Debentureholder of record on the preceding February 15 or August 15, respectively. 
 Section 3.02     Notice of Redemptions; Selection of Debentures. In case the Company shall desire to exercise the right to
redeem all or, as the case may be, any part of the Debentures pursuant to Section 3.01, it shall fix a date for redemption (which shall be a Business Day) (each such date, a “Redemption Date”) and it or, at its written request
received by the Trustee not fewer than twenty (20) days prior (or such shorter period of time as may be acceptable to the Trustee) to the Redemption Date, the Trustee in the name of and at the expense of the Company, shall mail or cause to be
mailed a notice of such redemption not fewer than twenty (20) nor more than sixty (60) days prior to the Redemption Date to the holders of the Debentures so to be redeemed as a whole or in part at their last addresses as the same appear on
the Debenture register; provided, however, that if the Company shall give such notice, it shall also give written notice, and written notice of the Debentures to be redeemed, to the Trustee. Such mailing shall be by first class mail. The
notice if mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Debentureholder receives such notice. In any case, failure to give such notice by mail or any defect in the notice to the
holder of any Debenture designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Debenture. Concurrently with the mailing of any such notice of redemption, the Company shall
issue a press release announcing such redemption, the form and content of which press release shall be determined by the Company in its sole discretion. The failure to issue any such press release or any defect therein shall not affect the validity
of the redemption notice or any of the proceedings for the redemption of any Debenture called for redemption. 
 Each such notice of
redemption shall specify the aggregate principal amount of Debentures to be redeemed, the CUSIP number or numbers of the Debentures being redeemed, the Redemption Date, the redemption price at which Debentures are to be redeemed, the place or places
of payment, that payment will be made upon presentation and surrender of such 

  

 23 

 
Debentures, that interest accrued to the Redemption Date will be paid as specified in said notice, and that on and after said Redemption Date interest
thereon or on the portion thereof to be redeemed will cease to accrue. Such notice shall also state the current Conversion Rate and approximate Conversion Price and the date on which the right to convert such Debentures or portions thereof will
expire. If fewer than all the Debentures are to be redeemed, the notice of redemption shall identify the Debentures to be redeemed (including CUSIP numbers, if any). In case any Debenture is to be redeemed in part only, the notice of redemption
shall state the portion of the principal amount thereof to be redeemed and shall state that, on and after the Redemption Date, upon surrender or such Debenture, a new Debenture or Debentures in principal amount equal to the unredeemed portion
thereof will be issued. 
 On or prior to the Redemption Date specified in the notice of redemption given as provided in this
Section 3.02, the Company will deposit with the Trustee or with one or more paying agents (or, if the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 5.04(b)) an amount of money in
immediately available funds sufficient to redeem on the Redemption Date all the Debentures (or portions thereof) so called for redemption (other than those theretofore surrendered for conversion) at the appropriate redemption price, together with
accrued interest to, but not including, the Redemption Date; provided, however, that if such payment is made on the Redemption Date it must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time on
such date. The Company shall be entitled to retain any interest, yield or gain on amounts deposited with the Trustee or any paying agent pursuant to this Section 3.02 in excess of amounts required hereunder to pay the redemption price together
with accrued interest to, but not including, the Redemption Date. If any Debenture called for redemption is converted pursuant to Article 15 of this Indenture prior to such redemption, any money deposited with the Trustee or any paying agent or so
segregated and held in trust for the redemption of such Debenture shall be paid to the Company upon its written request, or, if then held by the Company, shall be discharged from such trust. Whenever any Debentures are to be redeemed, the Company
will give the Trustee written notice in the form of an Officers’ Certificate not fewer than twenty (20) Business Days (or such shorter period of time as may be acceptable to the Trustee) prior to the Redemption Date as to the aggregate
principal amount of Debentures to be redeemed. 
 If less than all of the outstanding Debentures are to be redeemed, the Trustee shall select
the Debentures or portions thereof of the Global Debenture or the Debentures in certificated form to be redeemed (in principal amounts of $1,000 or integral multiples thereof) by lot, on a pro rata basis or by another method the Trustee deems fair
and appropriate. If any Debenture selected for partial redemption is submitted for conversion in part after such selection, the portion of such Debenture submitted for conversion shall be deemed (so far as may be) to be the portion to be selected
for redemption. The Debentures (or portions thereof) so selected shall be deemed duly selected for redemption for all purposes hereof, notwithstanding that any such Debenture is submitted for conversion in part before the mailing of the notice of
redemption. 
 Upon any redemption of less than all of the outstanding Debentures, the Company and the Trustee may (but need not), solely for
purposes of determining the pro rata allocation among such Debentures as are unconverted and outstanding at the time of redemption, treat as outstanding any Debentures surrendered for conversion during the period of fifteen (15) days next
preceding the mailing of a notice of redemption and may (but need not) treat as outstanding 

  

 24 

 
any Debenture authenticated and delivered during such period in exchange for the unconverted portion of any Debenture converted in part during such period.

 Section 3.03     Payment of Debentures Called for Redemption. If notice of redemption has been given as above
provided, the Debentures or portion of Debentures with respect to which such notice has been given shall, unless converted into Common Stock pursuant to the terms hereof, become due and payable on the Redemption Date and at the place or places
stated in such notice at the applicable redemption price, together with interest accrued to (but not including) the Redemption Date, and on and after said date (unless the Company shall default in the payment of such Debentures at the redemption
price, together with interest accrued to said date) interest on the Debentures or portion thereof so called for redemption shall cease to accrue and, after the close of business on the Business Day next preceding the Redemption Date, such Debentures
shall cease to be convertible and, except as provided in Sections 8.05 and 13.04, to be entitled to any benefit or Debenture under this Indenture, and the holders thereof shall have no right in respect of such Debentures except the right to receive
the redemption price thereof and unpaid interest to (but not including) the Redemption Date. On presentation and surrender of such Debentures at a place of payment in said notice specified, such Debentures or the specified portions thereof shall be
paid and redeemed by the Company at the applicable redemption price, together with interest accrued thereon to (but not including) the Redemption Date; provided, however, that if the applicable redemption date is an Interest Payment Date, the
payment of interest becoming due on such date shall be payable to the holders of such Debentures registered as such on the relevant Record Date instead of the holders surrendering such Debentures for redemption on such date. 
 Upon presentation of any Debenture redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to
the holder thereof, at the expense of the Company, a new Debenture or Debentures, of authorized denominations, in principal amount equal to the unredeemed portion of the Debentures so presented. 
 If any Debenture called for redemption shall not be so paid upon surrender thereof for redemption, the principal and premium, if any, shall, until paid
or duly provided for, bear interest from the Redemption Date at the rate borne by the Debenture and such Debenture shall remain convertible until the principal and premium, if any, and interest shall have been paid or duly provided for. 

Section 3.04     Conversion Arrangement on Call for Redemption. In connection with any redemption of Debentures, the
Company may arrange for the purchase and conversion of any Debentures by an agreement with one or more investment bankers or other purchasers to purchase such Debentures by paying to the Trustee in trust for the Debentureholders, on or before the
Redemption Date, an amount not less than the applicable redemption price, together with interest accrued to (but not including) the Redemption Date, of such Debentures. Notwithstanding anything to the contrary contained in this Article 3, the
obligation of the Company to pay the redemption price of such Debentures, together with interest accrued to (but not including) the Redemption Date, shall be deemed to be satisfied and discharged to the extent such amount is so paid by such
purchasers. If such an agreement is entered into, a copy of which will be filed with the Trustee prior to the Redemption Date, any Debentures not duly surrendered for conversion by the holders thereof may, at the option of the Company, be deemed, to
the 

  

 25 

 
fullest extent permitted by law, acquired by such purchasers from such Debentureholders and (notwithstanding anything to the contrary contained in Article
15) surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the Redemption Date (and the right to convert any such Debentures shall be extended through such time), subject to payment of the above amount
as aforesaid. At the direction of the Company, the Trustee shall hold and dispose of any such amount paid to it in the same manner as it would monies deposited with it by the Company for the redemption of Debentures. Without the Trustee’s prior
written consent, no arrangement between the Company and such purchasers for the purchase and conversion of any Debentures shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of the Trustee as set forth in
this Indenture. 
 Section 3.05     Redemption at Option of Debentureholders on Specific Dates. 
 (a) General. At the option of the Debentureholder, the Debentures shall be purchased by the Company on March 1, 2013,
March 1, 2016, or March 1, 2021 (each, a “Purchase Date”), at 100% of the principal amount of the Debentures in cash, together with any accrued and unpaid interest (including Liquidated Damages, if any) to, but not
including, the Purchase Date (the “Put Right Purchase Price”), upon: 
 (i) delivery to the paying agent by
the Debentureholder of a written notice of purchase (a “Purchase Notice”), at any time from the opening of business on the date that is twenty (20) Business Days prior to a Purchase Date until the close of business on the
Purchase Date stating: 
 (A) if certificated Debentures have been issued, the certificate number of the Debenture which the
Debentureholder will deliver to be purchased, or if no certificated Debentures have been issued, such information as may be required under the applicable procedures of the Depositary and the Indenture; 
 (B) the portion of the Principal Amount of the Debenture which the Debentureholder will deliver to be purchased, which portion must be in
a Principal Amount of $1,000 or integral multiples thereof; and 
 (C) that such Debenture shall be purchased as of the
Purchase Date pursuant to the terms and conditions specified in the Debentures and in this Indenture; and 
 (ii) delivery of
such Debenture to the paying agent for cancellation prior to, on or after the Purchase Date (together with all necessary endorsements) at the offices of the paying agent, such delivery being a condition to receipt by the Debentureholder of the
Purchase Price therefor; provided, however, that such Purchase Price shall be so paid pursuant to this Section 3.05 only if the Debenture so delivered to the paying agent shall conform in all respects to the description thereof in the
related Purchase Notice. 
 (iii) the Company shall purchase from the Debentureholder thereof, pursuant to this
Section 3.05, a portion of a Debenture if the Principal Amount of such portion is $1,000 or an integral multiple of $1,000 if so requested by the Debentureholder. Provisions of 

  

 26 

 
this Indenture that apply to the purchase of all of a Debenture also apply to the purchase of such portion of such Debenture. 
 (iv) any purchase by the Company contemplated pursuant to the provisions of this Section 3.05 shall be consummated by the delivery of
the consideration to be received by the Debentureholder promptly following the later of the Purchase Date and the time of delivery of the Debenture. 
 (v) notwithstanding anything herein to the contrary, any Debentureholder delivering to the paying agent the Purchase Notice contemplated by this Section 3.05(a)(i) shall have the right to withdraw such Purchase
Notice at any time prior to the close of business on the Purchase Date by delivery of a written notice of withdrawal to the paying agent that states: 
 (A) the Principal Amount of the withdrawn Debentures; 
 (B) if certificated Debentures have
been issued, the certificate numbers of the withdrawn Debentures (or, if the Debentures are not certificated, the withdrawal notice must comply with the applicable procedures of the Depositary and the Indenture); and 
 (C) the Principal Amount, if any, which remains subject to the Purchase Notice. 
 The paying agent shall promptly notify the Company of the receipt by it of any Purchase Notice or written notice of withdrawal thereof.

 (b) Company Notice. The Company shall deliver a notice (the “Company Notice”) to Debentureholders
(and to beneficial owners as required by applicable law) not less than twenty (20) Business Days prior to such Purchase Date (the “Company Notice Date”). The Company Notice shall be delivered to all Debentureholders at
their respective addresses shown in the Register, shall include a form of Purchase Notice to be completed by a Debentureholder and shall include the following information: 
 (i) the Purchase Price, the Conversion Rate and the approximate Conversion Price applicable on the Company Notice Date; 
 (ii) that the Purchase Notice must be delivered by each Debentureholder electing to have the Company purchase such Debentureholder’s
Debentures (or a portion thereof) as of the Purchase Date to the paying agent; 
 (iii) the name and address of the paying
agent and the conversion agent; 
 (iv) that Debentures as to which a Purchase Notice has been given by the Debentureholder
may be converted pursuant to Article 15 hereof only if the applicable Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 
  

 27 

 (v) that Debenture must be surrendered (by physical delivery at the office of the paying
agent in the case of certificated Debentures, or otherwise by book-entry transfer) to the paying agent for cancellation to collect payment; 
 (vi) that the Purchase Price for any Debenture as to which a Purchase Notice has been given and not withdrawn will be paid promptly following the later of the Purchase Date and the time of surrender of such Debenture
as described in (iv); 
 (vii) the procedures the Debentureholder must follow to exercise rights under this Section 3.05
and a brief description of those rights; 
 (viii) the conversion rights of the Debentures; 
 (ix) the procedures for withdrawing a Purchase Notice; 
 (x) that, unless the Company defaults in making payment of such Purchase Price, interest and Liquidated Damages, if any, on Debentures
covered by any Purchase Notice will cease to accrue on and after the Purchase Date; and 
 (xi) the CUSIP number of the
Debentures. 
 (c) Procedure upon Purchase. On or prior to the Purchase Date, the Company will deposit with the Trustee
or with one or more paying agents (or, if the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 5.04(b)) an amount of money sufficient to pay on the Purchase Date all the Debentures to be
purchased on such date at the appropriate repurchase price, together with accrued interest to (but not including) the Purchase Date; provided, however, that if such payment is made on the Purchase Date it must be received by the Trustee or
paying agent, as the case may be, by 10:00 a.m. New York City time, on such date. Payment for Debentures surrendered for purchase (and not withdrawn) prior to the Purchase Date will be made promptly (but in no event more than five (5) Business
Days) following the Purchase Date by mailing checks for the amount payable to the holders of such Debentures entitled thereto as they shall appear on the registry books of the Company. If the paying agent holds money or securities sufficient to pay
the repurchase price of all Debentures to be purchased on such Purchase Date (or, if the Company is acting as its own paying agent, such money or securities have been set aside, segregated and held in trust as provided in Section 5.04(b))
within two (2) Business Days following the Purchase Date, then, on and after such Business Day, the Debentures shall cease to be outstanding, interest (and Liquidated Damages, if any) shall cease to accrue, whether or not the Debentures are
delivered to the paying agent, and all other rights of the Debentureholder under this Indenture and the Debentures shall terminate, except the right to receive the repurchase price thereof upon delivery of the Debentures. 
 Section 3.06     Repurchase at Option of Debentureholders upon a Fundamental Change. 
 (a) If a Fundamental Change occurs prior to the Final Maturity Date, each Debentureholder shall have the right, at the option of the
Debentureholder, provided that no Default or Event of Default has occurred and is continuing (other than a Default in the payment of the Fundamental Change Repurchase Price), to require the Company to repurchase for cash all or any portion of
the Debentures of such Debentureholder equal to $1,000 principal amount (or 

  

 28 

 
an integral multiple thereof) at the Fundamental Change Repurchase Price, on the date that is not less than 30 days nor more than 45 days after the date of
the Company Fundamental Change Notice pursuant to subsection 3.06(b) (the “Fundamental Change Repurchase Date”). 
 (b) On or before the 30th day after the occurrence of a Fundamental Change, the Company shall mail a written notice of the Fundamental Change and of the resulting repurchase right to the Trustee, paying agent and to each Debentureholder
(and to beneficial owners to the extent and in the manner required by applicable law) (the “Company Fundamental Change Notice”). The Company Fundamental Change Notice shall include the form of a Fundamental Change Repurchase Notice
to be completed by the Debentureholder and shall state: 
 (1) the events causing such Fundamental Change; 
 (2) the date of such Fundamental Change; 
 (3) the last date by which the Fundamental Change Repurchase Notice must be delivered to elect the repurchase option pursuant to this Section 3.06; 
 (4) the Fundamental Change Repurchase Date; 
 (5) the Fundamental Change Repurchase Price; 
 (6) the Debentureholder’s right to
require the Company to purchase the Debentures; 
 (7) the name and address of each paying agent and conversion agent;

 (8) the then effective Conversion Rate and any adjustments to the Conversion Rate resulting from such Fundamental Change;

 (9) the procedures that the Debentureholder must follow to exercise rights under Article 3 and that Debentures as to which
a Fundamental Change Repurchase Notice has been given may be converted pursuant to Article 15 of this Indenture only to the extent that the Fundamental Change Repurchase Notice has been withdrawn in accordance with the terms of this Indenture;

 (10) the procedures that the Debentureholder must follow to exercise rights under this Section 3.08; 
 (11) the procedures for withdrawing a Fundamental Change Repurchase Notice; 
 (12) that, unless the Company fails to pay such Fundamental Change Repurchase Price, Debentures covered by any Fundamental Change
Repurchase Notice will cease to be outstanding and interest will cease to accrue on and after the Fundamental Change Repurchase Date; and 
 (13) the CUSIP number of the Debentures. 
  

 29 

 At the Company’s request, the Trustee shall give such Company Fundamental Change Notice in the Company’s name
and at the Company’s expense; provided, that, in all cases, the text of such Company Fundamental Change Notice shall be prepared by the Company and submitted to the Trustee along with an Officers’ Certificate and written request
within 20 days after the occurrence of a Fundamental Change. If any of the Debentures is in the form of a Global Debenture, then the Company shall modify such notice to the extent necessary to accord with the Applicable Procedures relating to the
purchase of Global Debentures. 
 (c) A Debentureholder may exercise its rights specified in Section 3.06(a) upon
delivery of a written notice (which shall be in substantially the form attached as Exhibit A under the heading “Fundamental Change Repurchase Notice” and which may be delivered by letter, overnight courier, hand delivery,
facsimile transmission or in any other written form and, in the case of Global Debentures, may be delivered electronically or by other means in accordance with the Depositary’s Applicable Procedures) of the exercise of such rights (a
“Fundamental Change Repurchase Notice”) to the Company or any paying agent at any time prior to the close of business on the Business Day next preceding the Fundamental Change Repurchase Date, subject to extension to comply with
applicable law. 
 (1) The Fundamental Change Repurchase Notice shall state: (A) the certificate number (if such
Debenture is held other than in global form) of the Debenture which the Debentureholder will deliver to be purchased (or, if the Debenture is held in global form, any other items required to comply with the Applicable Procedures), (B) the
portion of the principal amount of the Debenture which the Debentureholder will deliver to be purchased and (C) that such Debenture shall be purchased as of the Fundamental Change Repurchase Date pursuant to the terms and conditions specified
in the Debentures and in this Indenture. 
 (2) The delivery of a Debenture for which a Fundamental Change Repurchase Notice
has been timely delivered to any paying agent and not validly withdrawn prior to, on or after the Fundamental Change Repurchase Date (together with all necessary endorsements) at the office of such paying agent shall be a condition to the receipt by
the Debentureholder of the Fundamental Change Repurchase Price therefor. 
 (3) The Company shall only be obliged to purchase,
pursuant to this Section 3.06, a portion of a Debenture if the principal amount of such portion is $1,000 or an integral multiple of $1,000 (provisions of this Indenture that apply to the purchase of all of a Debenture also apply to the
purchase of such portion of such Debenture). 
 (4) Notwithstanding anything herein to the contrary, any Debentureholder
delivering to a paying agent the Fundamental Change Repurchase Notice contemplated by this Section 3.06(c) shall have the right to withdraw such Fundamental Change Repurchase Notice in whole or in a portion thereof that is a principal amount of
$1,000 or in an integral multiple thereof at any time prior to the close of business on the Business Day prior to the Fundamental Change Repurchase Date by delivery of a written notice of withdrawal to the paying agent in accordance with the same
procedures as those set forth in Section 3.05(a)(v). 
  

 30 

 (5) A paying agent shall promptly notify the Company of the receipt by it of any
Fundamental Change Repurchase Notice or written withdrawal thereof. 
 (6) Anything herein to the contrary notwithstanding, in
the case of Global Debentures, any Fundamental Change Repurchase Notice may be delivered or withdrawn and such Debentures may be surrendered or delivered for purchase in accordance with the Applicable Procedures as in effect from time to time.

 (d) The Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act to
the extent then applicable in connection with the repurchase rights of the Debentureholders in the event of a Fundamental Change. 
 Section
3.07     Deposit of Fundamental Change Repurchase Price. 
 (a) On or before 12:00 p.m.(noon) New
York City time on the Business Day following the applicable Fundamental Change Repurchase Date, the Company shall deposit with the Trustee or with a paying agent (or if the Company or an Affiliate of the Company is acting as the paying agent, shall
segregate and hold in trust as provided in Section 2.04) an amount of money (in immediately available funds if deposited on or after such Fundamental Change Repurchase Date), sufficient to pay the aggregate Fundamental Change Repurchase Price
of all the Debentures or portions thereof that are to be purchased as of such Fundamental Change Repurchase Date. 
 (b) If a
paying agent or the Trustee holds, in accordance with the terms hereof, money sufficient to pay the Fundamental Change Repurchase Price of any Debenture for which a Fundamental Change Repurchase Notice has been tendered and not withdrawn in
accordance with this Indenture then, on the Business Day following the applicable Fundamental Change Repurchase Date, such Debenture will cease to be outstanding, whether or not the Debenture is delivered to the paying agent or the Trustee, and
interest shall cease to accrue, and the rights of the Debentureholder in respect of the Debenture shall terminate (other than the right to receive the Fundamental Change Repurchase Price as aforesaid). The Company shall publicly announce the
principal amount of Debentures repurchased on or as soon as practicable after the Fundamental Change Repurchase Date. 
 (c)
The paying agent will promptly return to the respective Debentureholders any Debentures with respect to which a Fundamental Change Repurchase Notice has been withdrawn in compliance with this Indenture. 
 (d) If a Fundamental Change Repurchase Date falls after a Record Date and before the next succeeding Interest Payment Date, then interest
on the Debentures payable on such Fundamental Change Repurchase Date will be payable to the Debentureholders in whose names the Debentures are registered at the close of business on such Record Date. 
 Section 3.08     Repayment to the Company. To the extent that the aggregate amount of money deposited by the Company pursuant
to Section 3.07 exceeds the aggregate Fundamental Change Repurchase Price of the Debentures or portions thereof that the Company is obligated to repurchase, then promptly after the Fundamental Change Repurchase Date, the Trustee or a paying
agent, as the case may be, shall return any such excess monies to the Company. 
  

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 ARTICLE 4. 
 SUBORDINATION OF DEBENTURES 
 Section 4.01     Agreement of Subordination.
The Company covenants and agrees, and each Debentureholder issued hereunder by its acceptance thereof likewise covenants and agrees, that all Debentures shall be issued subject to the provisions of this Article 4, and each Person holding any
Debenture, whether upon original issue or upon registration of transfer, assignment or exchange thereof, accepts and agrees to be bound by such provisions. 
 The payment of the principal of, conversion payments on, interest on (including Liquidated Damages, if any) or any other amounts due on all Debentures (including, but not limited to, the redemption price with respect
to the Debentures called for redemption in accordance with Section 3.02, submitted for purchase in accordance with Section 3.05 or submitted for repurchase in accordance with Section 3.06 or upon conversion of the Debentures in
accordance with Article 15, as the case may be, as provided in this Indenture) issued hereunder shall, to the extent and in the manner hereinafter set forth, be subordinated and subject in right of payment to the prior payment in full of all
Senior Debt, whether outstanding at the date of this Indenture or thereafter incurred. 
 No provision of this Article 4 shall prevent the
occurrence of any default or Event of Default hereunder. 
 Section 4.02     Payments to Debentureholders. No
payment shall be made with respect to the principal of, interest on (including Liquidated Damages, if any) or any other amounts due on the Debentures (including, but not limited to, the redemption price with respect to the Debentures to be called
for repurchase in accordance with Section 3.02, submitted for purchase in accordance with Section 3.05 or submitted for repurchase in accordance with Section 3.06 or upon conversion of the Debentures in accordance with Article 15, as
the case may be, as provided in this Indenture), except payments and distributions made by the Trustee as permitted by the first or second paragraph of Section 4.05, if: 
 (i) a default in the payment of principal, premium, if any, interest, rent or other obligations in respect of Designated Senior Debt
occurs and is continuing (or, in the case of Designated Senior Debt for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the instrument or lease evidencing such
Designated Senior Debt) (a “Payment Default”); or 
 (ii) a default, other than a Payment Default, on any
Designated Senior Debt occurs and is continuing that permits holders of, or the trustee or agent on behalf of the holders of, such Designated Senior Debt or a Representative thereof to accelerate its maturity, and the Trustee receives a notice of
the default (a “Payment Blockage Notice”) from a holder of Designated Senior Debt, a Representative of Designated Senior Debt or the Company (a “Non-Payment Default”). 
 Notwithstanding the foregoing, only one Payment Blockage Notice with respect to the same event of default or any other events of default existing or
continuing (whether such events are known or unknown to the Person giving the Payment Blockage Notice) at the time of notice 

  

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on the same issue of Designated Senior Debt may be given during any period of 360 consecutive days unless the event of default or other events of default
have been cured or waived for a period of not less than 90 consecutive days. No new payment blockage period may be commenced by the holders of Designated Senior Debt during any period of 360 consecutive days unless all events of default which
triggered the preceding Payment Blockage Notice, and any other event of default existing or continuing at the time of such notice, have been waived or cured. 
 The Company may and shall resume payments on and distributions in respect of the Debentures: 
 (1) in the case of a Payment Default, upon the date on which any such Payment Default is cured or waived or ceases to exist, or 
 (2) in the case of a Non-Payment Default, the earlier of (a) the date upon which such Non-Payment Default is cured or waived or ceases to exist or (b) 180 days after the applicable Payment Blockage Notice is
received by the Trustee if the maturity of such Designated Senior Debt has not been accelerated, 
 in each case unless this Article 4 otherwise prohibits
the payment or distribution at the time of such payment or distribution. 
 Upon any payment by the Company, or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding up or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership
or other proceedings, or upon any acceleration of the Principal Amount due on the Debentures because of an Event of Default, all amounts due or to become due upon all Senior Debt shall first be paid in full in cash or other payment satisfactory to
the holders of such Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt includes Designated Senior Debt), or payment thereof in accordance with its terms provided for in cash or other payment
satisfactory to the holders of such Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt includes Designated Senior Debt) before any payment is made on account of the principal of, interest on
(including Liquidated Damages, if any) or any other amounts due on the Debentures (except payments made pursuant to Article 13 from monies deposited with the Trustee pursuant thereto prior to commencement of proceedings for such dissolution, winding
up, liquidation or reorganization), and upon any such dissolution or winding up or liquidation or reorganization of the Company or bankruptcy, insolvency, receivership or other similar proceeding, or upon any acceleration of the Principal Amount due
on the Debentures because of an Event of Default, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Debentureholders or the Trustee would be entitled,
except for the provisions of this Article 4, shall (except as aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Debentureholders or
by the Trustee under this Indenture if received by them or it, directly to the holders of Senior Debt (pro rata to such holders on the basis of the respective amounts of Senior Debt held by such holders, or as otherwise required by law or a court
order) or their Representative or Representatives, as their respective interests may appear, to the extent necessary to pay all Senior Debt in full, in cash or 

  

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other payment satisfactory to the holders of such Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt
includes Designated Senior Debt), after giving effect to any concurrent payment or distribution to or for the holders of Senior Debt, before any payment or distribution is made to the Debentureholders or to the Trustee. 
 For purposes of this Article 4, 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 corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article 4 with respect
to the Debentures to the payment of all Senior Debt which may at the time be outstanding provided that (i) the Senior Debt is assumed by the new corporation, if any, resulting from any reorganization or readjustment, and (ii) the
rights of the holders of Senior Debt (other than leases which are not assumed by the Company or the new corporation, as the case may be) are not, without the consent of such holders, altered by such reorganization or readjustment. The consolidation
of the Company with, or the merger of the Company into, another corporation or the liquidation or dissolution of the Company following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another Person upon
the terms and conditions provided for in Article 12 shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section 4.02 if such other Person shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article 12. 
 In the event of the acceleration of the Debentures because of an
Event of Default, no payment or distribution shall be made to the Trustee or any Debentureholder in respect of the principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Debentures (including, but not limited to,
the redemption price with respect to the Debentures called for redemption in accordance with Section 3.02, submitted for purchase in accordance with Section 3.05 or submitted for repurchase in accordance with Section 3.06 or upon
conversion of the Debentures in accordance with Article 15, as the case may be, as provided in this Indenture), except payments and distributions made by the Trustee as permitted by the first or second paragraph of Section 4.05, until all
Senior Debt has been paid in full in cash or other payment satisfactory to the holders of Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt includes Designated Senior Debt) or such acceleration is
rescinded in accordance with the terms of this Indenture. If payment of the Debentures is accelerated because of an Event of Default, the Company or the Trustee shall promptly notify holders of Senior Debt of the acceleration. 
 In the event that, notwithstanding the foregoing provisions, any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities (including, without limitation, by way of setoff or otherwise), prohibited by the foregoing provisions in this Section 4.02, shall be received by the Trustee or the Debentureholders before all Senior Debt is paid in
full in cash or other payment satisfactory to the holders of such Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt includes Designated Senior Debt), or provision is made for such payment thereof in
accordance with its terms in cash or other payment satisfactory to the holders of such Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt includes Designated Senior Debt), such payment or distribution
shall be held by the recipient in trust for the benefit of and shall be immediately paid over or delivered to the holders of Senior Debt or 

  

 34 

 
their Representative or Representatives, as their respective interests may appear, as calculated by the Company, for application to the payment of all Senior
Debt remaining unpaid to the extent necessary to pay all Senior Debt in full in cash or other payment satisfactory to the holders of such Senior Debt (and satisfactory to the holders of Designated Senior Debt in the case such Senior Debt includes
Designated Senior Debt), after giving effect to any concurrent payment or distribution, or provision therefor, to or for the holders of such Senior Debt. 
 Nothing in this Section 4.02 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 8.06. This Section 4.02 shall be subject to the further provisions of Section 4.05.

 Section 4.03     Subrogation of Debentures. Subject to the payment in full of all Senior Debt, the rights of
the Debentureholders shall be subrogated to the extent of the payments or distributions made to the holders of such Senior Debt pursuant to the provisions of this Article 4 (equally and ratably with the holders of all indebtedness of the Company
which by its express terms is subordinated to other indebtedness of the Company to substantially the same extent as the Debentures are subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Debt to receive
payments or distributions of cash, property or securities of the Company applicable to the Senior Debt until the principal, premium, if any, and interest (including Liquidated Damages, if any) on the Debentures shall be paid in full, and, for the
purposes of such subrogation, no payments or distributions to the holders of the Senior Debt of any cash, property or securities to which the Debentureholders or the Trustee would be entitled except for the provisions of this Article 4, and no
payment over pursuant to the provisions of this Article 4, to or for the benefit of the holders of Senior Debt by Debentureholders or the Trustee, shall, as among the Company, its creditors other than holders of Senior Debt, and the
Debentureholders, be deemed to be a payment by the Company to or on account of the Senior Debt, and no payments or distributions of cash, property or securities to or for the benefit of the Debentureholders pursuant to the subrogation provisions of
this Article 4, which would otherwise have been paid to the holders of Senior Debt, shall be deemed to be a payment by the Company to or for the account of the Debentures. It is understood that the provisions of this Article 4 are and are intended
solely for the purposes of defining the relative rights of the Debentureholders, on the one hand, and the holders of the Senior Debt, on the other hand. 
 Nothing contained in this Article 4 or elsewhere in this Indenture or in the Debentures is intended to or shall impair, as among the Company, its creditors other than the holders of Senior Debt, and the
Debentureholders, the obligation of the Company, which is absolute and unconditional, to pay to the Debentureholders the principal of, premium, if any, and interest (including Liquidated Damages, if any) on the Debentures 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 Debentureholders and creditors of the Company other than the holders of the Senior Debt, nor shall anything herein or therein prevent
the Trustee or the holder of any Debenture from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article 4 of the holders of Senior Debt in respect of cash,
property or securities of the Company received upon the exercise of any such remedy. 
 Upon any payment or distribution of assets of the
Company referred to in this Article 4, the Trustee, subject to the provisions of Section 8.01, and the Debentureholders shall be entitled 

  

 35 

 
to rely upon any order or decree made by any court of competent jurisdiction in which such bankruptcy, dissolution, winding up, liquidation or reorganization
proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, delivered to the Trustee or to the Debentureholders, for the purpose of ascertaining
the Persons entitled to participate in such distribution, the holders of the Senior Debt and other indebtedness of the Company, the amount thereof or payable thereon and all other facts pertinent thereto or to this Article 4. 
 Section 4.04     Authorization to Effect Subordination. Each Debentureholder by the Debentureholder’s acceptance thereof
authorizes and directs the Trustee on the Debentureholder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article 4 and appoints the Trustee to act as the
Debentureholder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form required in any proceeding referred to in the third paragraph of Section 7.02 hereof at
least thirty (30) days before the expiration of the time to file such claim, the holders of any Senior Debt or their Representatives are hereby authorized to file an appropriate claim for and on behalf of the Debentureholders. 
 Section 4.05     Notice to Trustee. The Company shall give prompt written notice in the form of an Officers’ Certificate
to a Responsible Officer of the Trustee and to any paying agent of any fact known to the Company that would prohibit the making of any payment of monies to or by the Trustee or any paying agent in respect of the Debentures pursuant to the provisions
of this Article 4. Notwithstanding the provisions of this Article 4 or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of monies to or
by the Trustee in respect of the Debentures pursuant to the provisions of this Article 4, unless and until a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office from the Company (in the form of
an Officers’ Certificate) or a Representative or a holder or holders of Senior Debt, and before the receipt of any such written notice, the Trustee, subject to the provisions of Section 8.01, shall be entitled in all respects to assume
that no such facts exist; provided, however, that if on a date not less than one Business Day prior to the date upon which by the terms hereof any such monies may become payable for any purpose (including, without limitation, the payment of
the principal of, or premium, if any, or interest (including Liquidated Damages, if any) on any Debenture) the Trustee shall not have received, with respect to such monies, the notice provided for in this Section 4.05, then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and authority to apply monies received 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 on or
after such prior date. 
 Notwithstanding anything in this Article 4 to the contrary, nothing shall prevent any payment by the Trustee to the
Debentureholders of monies deposited with it pursuant to Section 13.01, if a Responsible Officer of the Trustee shall not have received written notice at the Corporate Trust Office on or before one Business Day prior to the date such payment is
due that such payment is not permitted under Section 4.01 or 4.02. 
 The Trustee, subject to the provisions of Section 8.01, shall
be entitled to rely on the delivery to it of a written notice by a Representative or a person representing himself to be a 

  

 36 

 
holder of Senior Debt (or a trustee on behalf of such holder) to establish that such notice has been given by a Representative or a holder of Senior Debt or
a trustee on behalf of any such holder or holders. The Trustee shall not be required to make any payment or distribution to or on behalf of a holder of Senior Debt pursuant to this Article 4 unless it has received satisfactory evidence as to the
amount of Senior Debt 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 this Article 4. 
 Section 4.06     Trustee’s Relation to Senior Debt. The Trustee, in its capacity, shall be entitled to all the rights set
forth in this Article 4 in respect of any Senior Debt at any time held by it, to the same extent as any other holder of Senior Debt, and nothing in Section 8.13 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as
such holder. 
 With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article 4, and no implied covenants or obligations with respect to the holders of Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and, subject to the provisions of Section 8.01, the Trustee shall not be liable to any holder of Senior Debt (i) for any failure to make any payments or distributions to such holder or
(ii) if it shall pay over or deliver to Debentureholders, the Company or any other Person money in compliance with this Article 4. 
 Section 4.07     No Impairment of Subordination. No right of any present or future holder of any Senior Debt to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by
any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof which any such holder may have or otherwise be charged with. Senior Debt may be created, renewed or extended and holders of Senior Debt may exercise any rights under any instrument creating or evidencing such Senior Debt, including, without
limitation, any waiver of default thereunder, without any notice to or consent from the Debentureholders or the Trustee. No compromise, alteration, amendment, modification, extension, renewal or other change of, or waiver, consent or other action in
respect of, any liability or obligation under or in respect of the Senior Debt or any terms or conditions of any instrument creating or evidencing such Senior Debt shall in any way alter or affect any of the provisions of this Article 4 or the
subordination of the Debentures provided thereby. 
 Section 4.08     Certain Conversions Not Deemed Payment. For
the purposes of this Article 4 only, (1) the issuance and delivery of junior securities upon conversion of Debentures in accordance with Article 15 shall not be deemed to constitute a payment or distribution on account of the principal of,
premium, if any, or interest (including Liquidated Damages, if any) on Debentures or on account of the purchase or other acquisition of Debentures, and (2) the payment, issuance or delivery of cash (except in satisfaction of fractional shares
pursuant to Section 15.03), property or securities (other than junior securities) upon conversion of a Debenture shall be deemed to constitute payment on account of the principal of, premium, if any, or interest (including Liquidated Damages,
if any) on such Debenture. For the purposes of this Section 4.08, the term “junior securities” means (a) shares of any stock of any class of the 

  

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Company or (b) securities of the Company that are subordinated in right of payment to all Senior Debt that may be outstanding at the time of issuance or
delivery of such securities to substantially the same extent as, or to a greater extent than, the Debentures are so subordinated as provided in this Article 4. Nothing contained in this Article 4 or elsewhere in this Indenture or in the Debentures
is intended to or shall impair, as among the Company, its creditors (other than holders of Senior Debt) and the Debentureholders, the right, which is absolute and unconditional, of the holder of any Debenture to convert such Debenture in accordance
with Article 15. 
 Section 4.09     Article Applicable to Paying Agents. If at any time any paying agent other
than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article 4 shall (unless the context otherwise requires) be construed as extending to and including such
paying agent within its meaning as fully for all intents and purposes as if such paying agent were named in this Article 4 in addition to or in place of the Trustee; provided, however, that the first paragraph of Section 4.05 shall not
apply to the Company or any Affiliate of the Company if it or such Affiliate acts as paying agent. 
 The Trustee shall not be responsible
for the actions or inactions of any other paying agents (including the Company if acting as its own paying agent) and shall have no control of any funds held by such other paying agents. 
 Section 4.10     Senior Debt Entitled to Rely. The holders of Senior Debt (including, without limitation, Designated Senior
Debt) shall have the right to rely upon this Article 4, and no amendment or modification of the provisions contained herein shall diminish the rights or such holders unless such holders shall have agreed in writing thereto. 
 Section 4.11     Reliance on Judicial Order or Certificate of Liquidating Agent. Upon any payment or distribution of assets of
the Company referred to in this Article 4, the Trustee and the Debentureholders shall be entitled to rely upon any order or decree entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of creditors, agent or other Person making such
payment or distribution, delivered to the Trustee or to the Debentureholders, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of Senior Debt and other indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 4. 
 ARTICLE 5. 
 PARTICULAR COVENANTS OF THE COMPANY 
 Section 5.01     Payment of Principal, Premium and Interest. The Company covenants and agrees that it will duly and punctually
pay or cause to be paid the principal of and premium, if any (including the redemption price upon redemption pursuant to Article 3), and interest (including Liquidated Damages, if any), on each of the Debentures at the places, at the respective
times and in the manner provided herein and in the Debentures. 
  

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 Section 5.02     Maintenance of Office or Agency. The Company will maintain an
office or agency in the Borough of Manhattan, The City of New York, where the Debentures may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion or redemption and where notices and demands to or
upon the Company in respect of the Debentures and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the
Trustee. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office or the office of agency of the Trustee in the Borough of Manhattan, The City of New York (which shall initially be located at c/o Computershare Trust Company of New York, Wall Street Plaza, 88 Pine Street, 19th floor, New York, NY 10005
Attn: Wilmington Trust (Mentor Graphics Corporation, 6.25% Convertible Subordinated Debentures due 2026). 
 The Company may also from time
to time designate co-registrars and one or more offices or agencies where the Debentures may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. The Company will give prompt written notice of
any such designation or rescission and of any change in the location of any such other office or agency. 
 The Company hereby initially
designates the Trustee as paying agent, Debenture registrar, Custodian and conversion agent and each of the Corporate Trust Office and the office of agency of the Trustee in the Borough of Manhattan, The City of New York (which shall initially be
located at c/o Computershare Trust Company of New York, Wall Street Plaza, 88 Pine Street, 19th floor, New York, NY 10005 Attn: Wilmington Trust (Mentor Graphics Corporation, 6.25% Convertible Subordinated Debentures due 2026)), shall be considered
as one such office or agency of the Company for each of the aforesaid purposes. 
 So long as the Trustee is the Debenture registrar, the
Trustee agrees to mail, or cause to be mailed, the notices set forth in Section 8.10(a) and the third paragraph of Section 8.11. If co-registrars have been appointed in accordance with this Section, the Trustee shall mail such notices only
to the Company and the Debentureholders it can identify from its records. 
 Section 5.03     Appointments to Fill
Vacancies in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 8.10, a Trustee, so that there shall at all times be a Trustee
hereunder. 
 Section 5.04     Provisions as to Paying Agent. 
 (a) If the Company shall appoint a paying agent other than the Trustee, or if the Trustee shall appoint such a paying agent, the Company
will cause such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 5.04: 
 (1) that it will hold all sums held by it as such agent for the payment of the principal of and premium, if any, or interest on the
Debentures (whether such 

  

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sums have been paid to it by the Company or by any other obligor on the Debentures) in trust for the benefit of the Debentureholders; 
 (2) that it will give the Trustee notice of any failure by the Company (or by any other obligor on the Debentures) to make any payment of
the principal of and premium, if any, or interest on the Debentures when the same shall be due and payable; and 
 (3) that at
any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust. 
 The Company shall, on or before each due date of the principal of, premium, if any, or interest on the Debentures, deposit with the paying agent a sum (in funds which are immediately available on the due date for such
payment) sufficient to pay such principal, premium, if any, or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such action; provided, however, that if such deposit is
made on the due date, such deposit shall be received by the paying agent by 10:00 a.m. New York City time, on such date. 
 (b) If the Company shall act as its own paying agent, it will, on or before each due date of the principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Debentures, set aside, segregate and hold in trust for
the benefit of the Debentureholders a sum sufficient to pay such principal, premium, if any, or interest (including Liquidated Damages, if any) so becoming due and will promptly notify the Trustee of any failure to take such action and of any
failure by the Company (or any other obligor under the Debentures) to make any payment of the principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Debentures when the same shall become due and payable. 

(c) Anything in this Section 5.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a
satisfaction and discharge of this Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying agent hereunder as required by this Section 5.04, such sums to be held by the
Trustee upon the trusts herein contained and upon such payment by the Company or any paying agent to the Trustee, the Company or such paying agent shall be released from all further liability with respect to such sums. 
 (d) Anything in this Section 5.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this
Section 5.04 is subject to Sections 13.03 and 13.04. 
 The Trustee shall not be responsible for the actions of any other paying agents
(including the Company if acting as its own paying agent) and shall have no control of any funds held by such other paying agents. 
 Section
5.05     Existence. Subject to Article 12, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its existence and rights (charter and statutory); provided, however,
that the Company shall not be required to preserve any such right if the Company shall determine that the preservation thereof is no longer desirable in the 

  

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conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Debentureholders. 
 Section 5.06     Maintenance of Properties. The Company will cause all properties used or useful in the conduct of its
business or the business of any Designated Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in
this Section 5.06 shall prevent the Company from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the business of any
subsidiary and not disadvantageous in any material respect to the Debentureholders. 
 Section 5.07     Payment of
Taxes and Other Claims. The Company will pay or discharge, or cause to be paid or discharged, before the same may become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Company or any Designated
Subsidiary or upon the income, profits or property of the Company or any Designated Subsidiary, (ii) all claims for labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the property of the Company or any
Designated Subsidiary and (iii) all stamps and other duties, if any, which may be imposed by the United States or any political subdivision thereof or therein in connection with the issuance, transfer, exchange or conversion of any Debentures
or with respect to this Indenture; provided, however, that, in the case of clauses (i) and (ii), the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim
(A) if the failure to do so will not, in the aggregate, have a material adverse impact on the Company, or (B) if the amount, applicability or validity is being contested in good faith by appropriate proceedings. 
 Section 5.08     Rule 144A Information Requirement. Within the period prior to the expiration of the holding period applicable
to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the Exchange Act, make available
to any holder or beneficial holder of Debentures or any Common Stock issued upon conversion thereof which continue to be Restricted Securities in connection with any sale thereof and any prospective purchaser of Debentures or such Common Stock
designated by such holder or beneficial holder, the information required pursuant to Rule 144A(d)(4) under the Securities Act upon the request of any Debentureholder or beneficial holder of the Debentures or such Common Stock, and it will take such
further action as any holder or beneficial holder of such Debentures or such Common Stock may reasonably request, all to the extent required from time to time to enable such holder or beneficial holder to sell its Debentures or Common Stock without
registration under the Securities Act within the limitation of the exemption provided by Rule 144A, as such Rule may be amended from time to time. Upon the request of any holder or any beneficial holder of the Debentures or such Common Stock, the
Company will deliver to such holder a written statement as to whether it has complied with such requirements. 
 Section
5.09     Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner 

  

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whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Debentures as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 Section 5.10     Compliance Certificate. The Company shall deliver to the Trustee, within one hundred twenty (120) days after the end of each fiscal year of the Company (which is the end of the calendar
year), a certificate signed by either the principal executive officer, principal financial officer or principal accounting officer of the Company, stating whether or not to the best knowledge of the signer thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and
the nature and the status thereof of which the signer may have knowledge. 
 The Company will deliver to the Trustee, forthwith upon becoming
aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this Indenture, or (ii) any Event of Default, an Officers’ Certificate specifying with particularity such default or Event
of Default and further stating what action the Company has taken, is taking or proposes to take with respect thereto. 
 Any notice required
to be given under this Section 5.10 or Section 4.05 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office. 
 ARTICLE 6. 
 DEBENTUREHOLDERS’ LIST AND REPORTS 
 BY THE COMPANY AND THE TRUSTEE 
 Section 6.01     Debentureholders’ Lists. The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee, semiannually, not more than fifteen (15) days after each
February 15 and August 15 in each year beginning with August 15, 2006, and at such other times as the Trustee may request in writing, within thirty (30) days after receipt by the Company of any such request (or such lesser time
as the Trustee may reasonably request in order to enable it to timely provide any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require of the names and addresses of the Debentureholders as of a date not
more than fifteen (15) days (or such other date as the Trustee may reasonably request in order to so provide any such notices) prior to the time such information is furnished, except that no such list need be furnished by the Company to the
Trustee so long as the Trustee is acting as the sole Debenture registrar. 
  

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 Section 6.02     Preservation and Disclosure of Lists. 
 (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the
Debentureholders contained in the most recent list furnished to it as provided in Section 6.01 or maintained by the Trustee in its capacity as Debenture registrar or co-registrar in respect of the Debentures, if so acting. The Trustee may
destroy any list furnished to it as provided in Section 6.01 upon receipt of a new list so furnished. 
 (b) The rights
of Debentureholders to communicate with other Debentureholders with respect to their rights under this Indenture or under the Debentures, and the corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act.

 (c) Every Debentureholder, by receiving and holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Debentureholders made pursuant to the Trust Indenture Act. 
 Section 6.03     Reports by Trustee. 
 (a) Within sixty (60) days after March 1 of each year commencing with the year 2006, the Trustee shall transmit to
Debentureholders such reports dated as of March 1 of the year in which such reports are made concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto. 
 (b) A copy of such report shall, at the time of such transmission to Debentureholders, be filed
by the Trustee with the Commission and with each stock exchange and automated quotation system upon which the Debentures are listed and with the Company. The Company will promptly notify the Trustee in writing when the Debentures are listed on any
stock exchange or automated quotation system or delisted therefrom. 
 Section 6.04     Reports by Company. The
Company shall file with the Trustee (and the Commission if at any time after the Indenture becomes qualified under the Trust Indenture Act), and transmit to Debentureholders, such information, documents and other reports and such summaries thereof,
as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to such Act, whether or not the Debentures are governed by such Act; provided, however, that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within fifteen (15) days after the same is so required to be filed with the Commission. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). 
  

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 ARTICLE 7. 
 REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS 
 ON AN EVENT OF DEFAULT 
 Section 7.01     Events of Default. In case one or more of the following Events of Default (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall have occurred
and be continuing: 
 (a) the Company shall fail to pay when due (whether or not such payment is prohibited by the
subordination provisions set forth in Article 4 of this Indenture) the principal or any redemption price, Put Right Purchase Price or Fundamental Change Repurchase Price of any Debenture, when the same becomes due and payable whether or not at
the Final Maturity Date, upon redemption, repurchase, acceleration or otherwise; or 
 (b) the Company shall fail to pay
(whether or not such payment is prohibited by the subordination provisions set forth in Article 4 of this Indenture) an installment of cash interest, including Liquidated Damages, if any, on any of the Debentures, which failure continues for 30
days after the date when due; or 
 (c) the Company shall fail to deliver when due all cash and shares of Common Stock, if
any, deliverable upon conversion of the Debentures (whether or not such payment is prohibited by the subordination provisions set forth in Article 4 of this Indenture), which failure continues for 15 days; or 
 (d) failure on the part of the Company to timely provide notice of a Fundamental Change in accordance with Section 3.06(b); or

 (e) failure on the part of the Company duly to observe or perform any other term, convenant or agreement on the part of the
Company in the Debentures or in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 7.01 specifically dealt with) for a period of sixty (60) days after the date on
which written notice of such failure, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or the Company and a Responsible Officer of the Trustee by the holders of at least twenty-five percent (25%) in
aggregate principal amount of the Debentures at the time outstanding determined in accordance with Section 9.04; or 
 (f) a failure to pay when due at maturity or a default that results in the acceleration of maturity of any Indebtedness of the Company and/or of Designated Subsidiaries in an aggregate amount of $30 million or more, unless the acceleration
is rescinded, stayed or annulled within thirty (30) days after written notice of default is given to the Company by the Trustee or to the Company and the Trustee by the holders of at least twenty five percent (25%) in aggregate principal
amount of the Debentures at the time outstanding determined in accordance with Section 9.04; or 
 (g) the commencement
of a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or a Designated 

  

 44 

 
Subsidiary or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of the Company or of a Designated Subsidiary or any substantial part of the property of the Company or a Designated Subsidiary, or shall consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding commenced against the Company or a Designated Subsidiary, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they
become due; 
 then, and in each and every such case (other than an Event of Default specified in Section 7.01(g)), unless the principal of all of the
Debentures shall have already become due and payable, either the Trustee or the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Debentures then outstanding hereunder determined in accordance with
Section 9.04, by notice in writing to the Company (and to the Trustee if given by Debentureholders), may declare the principal of and premium, if any, on all the Debentures and the interest accrued thereon (including Liquidated Damages, if any)
to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Debentures contained to the contrary notwithstanding. If an Event of Default
specified in Section 7.01(g) occurs, the principal of all the Debentures and the interest accrued thereon shall (including Liquidated Damages, if any) be immediately and automatically due and payable without necessity of further action. This
provision, however, is subject to the conditions that if, at any time after the principal of the Debentures shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall have been obtained or
entered as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon (including Liquidated Damages, if any) all Debentures and the principal of and premium, if
any, on any and all Debentures which shall have become due otherwise than by acceleration (with interest on overdue installments of interest (including Liquidated Damages, if any) (to the extent that payment of such interest is enforceable under
applicable law) and on such principal and premium, if any, at the rate borne by the Debentures, to the date of such payment or deposit) and amounts due to the Trustee pursuant to Section 8.06, and if any and all defaults under this Indenture,
other than the nonpayment of principal of and premium, if any, and accrued interest on (including Liquidated Damages, if any) Debentures which shall have become due by acceleration, shall have been cured or waived pursuant to Section 7.07, then
and in every such case the holders of a majority in aggregate principal amount of the Debentures then outstanding, by written notice to the Company and to the Trustee, may waive all defaults or Events of Default and rescind and annul such
declaration and its consequences; but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or Event of Default, or shall impair any right consequent thereon. The Company shall notify a Responsible Officer
of the Trustee, promptly upon becoming aware thereof, of any Event of Default. 
 In case the Trustee shall have proceeded to enforce any
right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case
the Company, the Debentureholders, and the Trustee shall be restored respectively to their several positions and rights hereunder, and all rights, remedies 

  

 45 

 
and powers of the Company, the Debentureholders, and the Trustee shall continue as though no such proceeding had been taken. 
 Section 7.02     Payments of Debentures on Default; Suit Therefor. The Company covenants that (a) in case default shall
be made in the payment of any installment of interest upon (including Liquidated Damages, if any) any of the Debentures as and when the same shall become due and payable, and such default shall have continued for a period of thirty (30) days,
or (b) in case default shall be made in the payment of the principal of or premium, if any, on any of the Debentures as and when the same shall have become due and payable, whether at maturity of the Debentures or in connection with any
redemption, by or under this Indenture declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the Debentureholders, the whole amount that then shall have become due and payable on all such
Debentures for principal and premium, if any, or interest (including Liquidated Damages, if any), as the case may be, with interest upon the overdue principal and premium, if any, and (to the extent that payment of such interest is enforceable under
applicable law) upon the overdue installments of interest (including Liquidated Damages, if any) at the rate borne by the Debentures, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection,
including reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other amounts due the Trustee under Section 8.06. Until such demand by the Trustee, the Company may pay the principal of and premium, if any, and
interest on (including Liquidated Damages, if any) the Debentures to the registered Debentureholders, whether or not the Debentures are overdue. 
 In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for
the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or any other obligor on the Debentures and collect in
the manner provided by law out of the property of the Company or any other obligor on the Debentures wherever situated the monies adjudged or decreed to be payable. 
 In case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor on the Debentures under Title 11 of the United States Code, or any other applicable law, or
in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Company or such other obligor, the property of the Company or such other
obligor, or in the case of any other judicial proceedings relative to the Company or such other obligor upon the Debentures, or to the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the principal of
the Debentures shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 7.02, shall be entitled and
empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal, premium, if any, and interest (including Liquidated Damages, if any) owing and unpaid in respect of the Debentures,
and, in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of the Debentureholders allowed in such judicial proceedings
relative to the Company or any other obligor on the 

  

 46 

 
Debentures, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such
claims, and to distribute the same after the deduction of any amounts due the Trustee under Section 8.06, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by
each of the Debentureholders to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to the Debentureholders, to pay to the Trustee any amount due it for reasonable compensation,
expenses, advances and disbursements, including reasonable counsel fees incurred by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements out of the estate in any
such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, monies, securities and other property which the Debentureholders may be entitled to
receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. 
 All rights of action
and of asserting claims under this Indenture, or under any of the Debentures, may be enforced by the Trustee without the possession of any of the Debentures, or the production thereof at any trial or other proceeding relative thereto, and any such
suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agent and counsel, be for the ratable benefit of the Debentureholders. 
 In any proceedings brought by the Trustee (and in
any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held to represent all the Debentureholders, and it shall not be necessary to make any Debentureholders
parties to any such proceedings. 
 Section 7.03     Application of Monies Collected by Trustee. Any monies
collected by the Trustee pursuant to this Article 7 shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of the several Debentures, and stamping thereon the
payment, if only partially paid, and upon surrender thereof, if fully paid: 
 FIRST: To the payment of all amounts due the Trustee under
Section 8.06; 
 SECOND: Subject to the provisions of Article 4, in case the principal of the outstanding Debentures shall not have
become due and be unpaid, to the payment of interest on (including Liquidated Damages, if any) the Debentures in default in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has been
collected by the Trustee) upon the overdue installments of interest (including Liquidated Damages, if any) at the rate borne by the Debentures, such payments to be made ratably to the Persons entitled thereto; 
 THIRD: Subject to the provisions of Article 4, in case the principal of the outstanding Debentures shall have become due, by declaration or otherwise,
and be unpaid to the payment of the whole amount then owing and unpaid upon the Debentures for principal and premium, if any, 

  

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and interest (including Liquidated Damages, if any), with interest on the overdue principal and premium, if any, and (to the extent that such interest has
been collected by the Trustee) upon overdue installments of interest (including Liquidated Damages, if any) at the rate borne by the Debentures, and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon
the Debentures, then to the payment of such principal and premium, if any, and interest (including Liquidated Damages, if any) without preference or priority of principal and premium, if any, over interest (including Liquidated Damages, if any), or
of interest (including Liquidated Damages, if any) over principal and premium, if any, or of any installment of interest over any other installment of interest, or of any Debenture over any other Debenture, ratably to the aggregate of such principal
and premium, if any, and accrued and unpaid interest; and 
 FOURTH: Subject to the provisions of Article 4, to the payment of the remainder,
if any, to the Company or any other Person lawfully entitled thereto. 
 Section 7.04     Proceedings by
Debentureholders. No Debentureholder shall have any right by virtue of or by reference to any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the
appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, unless such Debentureholder previously shall have given to the Trustee written notice of an Event of Default and of the
continuance thereof, as hereinbefore provided, and unless also the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Debentures then outstanding shall have made written request upon the Trustee to institute
such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for
sixty (60) days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to
the Trustee pursuant to Section 7.07; it being understood and intended, and being expressly covenanted by the taker and holder of every Debenture with every other taker and holder and the Trustee, that no one or more Debentureholders shall have
any right in any manner whatsoever by virtue of or by reference to any provision of this Indenture to affect, disturb or prejudice the rights of any other Debentureholder, or to obtain or seek to obtain priority over or preference to any other such
Debentureholder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Debentureholders (except as otherwise provided herein). For the protection and enforcement of
this Section 7.04, each and every Debentureholders and the Trustee shall be entitled to such relief as can be given either at law or in equity. 
 Notwithstanding any other provision of this Indenture and any provision of any Debenture, the right of any Debentureholder to receive payment of the principal of and premium, if any (including the redemption price
upon redemption, the purchase price upon a purchase, or a Fundamental Change Repurchase Price upon a Fundamental Change pursuant to Article 3), and accrued interest on (including Liquidated Damages, if any) such Debenture, on or after the respective
due dates expressed in such Debenture or in the event of redemption or repurchase, or to institute suit for the enforcement of any such payment on or after such respective dates against the Company shall not be impaired or affected without the
consent of such Debentureholder. 
  

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 Anything in this Indenture or the Debentures to the contrary notwithstanding, the holder of any
Debenture, without the consent of either the Trustee or the holder of any other Debenture, in its own behalf and for its own benefit, may enforce, and may institute and maintain any proceeding suitable to enforce, its rights of conversion as
provided herein. 
 Section 7.05     Proceedings by Trustee. In case of an Event of Default, the Trustee may, in
its discretion, proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by
proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law. 
 Section 7.06     Remedies Cumulative and Continuing. Except
as provided in Section 2.06, all powers and remedies given by this Article 7 to the Trustee or to the Debentureholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the Debentureholders, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any
holder of any of the Debentures to exercise any right or power accruing upon any default or Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or any
acquiescence therein, and, subject to the provisions of Section 7.04, every power and remedy given by this Article 7 or by law to the Trustee or to the Debentureholders may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Debentureholders. 
 Section 7.07     Direction of Proceedings and Waiver of
Defaults by Majority of Debentureholders. The holders of a majority (more than fifty percent) in aggregate principal amount of the Debentures at the time outstanding determined in accordance with Section 9.04 shall have the right to direct
the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided, however, that (a) such direction shall be in writing, (b) such
direction shall not be in conflict with any rule of law or with this Indenture, (c) the Trustee may take any other action which is not inconsistent with such direction and (d) the Trustee may decline to take any action that would benefit
some Debentureholders to the detriment of other Debentureholders. The holders of a majority in aggregate principal amount of the Debentures at the time outstanding determined in accordance with Section 9.04 may, on behalf of the holders of all
of the Debentures, waive any past default or Event of Default hereunder and its consequences except (i) a default in the payment of interest (including Liquidated Damages, if any) or premium, if any, on, or the principal of, the Debentures,
(ii) a failure by the Company to convert any Debentures into cash or Common Stock, in accordance with Article 15, (iii) a default in the payment of the redemption price pursuant to Article 3 or (iv) a default in respect of a covenant
or provisions hereof which under Article 11 cannot be modified or amended without the consent of the holders of each or all Debentures then outstanding or affected thereby. Upon any such waiver, the Company, the Trustee and the Debentureholders
shall be restored to their former positions and rights hereunder, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Whenever any default or 

  

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Event of Default hereunder shall have been waived as permitted by this Section 7.07, said default or Event of Default shall for all purposes of the
Debentures and this Indenture be deemed to have been cured and to be not continuing, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 
 Section 7.08     Notice of Defaults. The Trustee shall, within ninety (90) days after the occurrence of a default, mail
to all Debentureholders, as the names and addresses of such Debentureholders appear upon the Debenture register, notice of all defaults known to a Responsible Officer, unless such defaults shall have been cured or waived before the giving of such
notice; provided, however, that except in the case of default in the payment of the principal of, or premium, if any, or interest (including Liquidated Damages, if any) on any of the Debentures, the Trustee shall be protected in withholding
such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Debentureholders. 
 Section 7.09     Undertaking to Pay Costs. All parties to this Indenture agree, and each holder of any Debenture by such
Debentureholder’s acceptance thereof 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 Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, 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
expenses, 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, however, that the provisions of this Section 7.09 (to the extent permitted
by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by any Debentureholders, or group of Debentureholders, holding in the aggregate more than ten percent in principal amount of the Debentures at the time outstanding
determined in accordance with Section 9.04, or to any suit instituted by any Debentureholders for the enforcement of the payment of the principal of or premium, if any, or interest on any Debenture on or after the due date expressed in such
Debenture or to any suit for the enforcement of the right to convert any Debenture in accordance with the provisions of Article 15. 
 ARTICLE 8. 
 THE TRUSTEE 
 Section 8.01     Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his own affairs. 
  

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 No provision of this Indenture shall be construed to relieve the Trustee from liability for its own
negligent action, its own negligent failure to act or its own willful misconduct, except that: 
 (a) prior to the occurrence
of an Event of Default and after the curing or waiving of all Events of Default which may have occurred: 
 (1) the duties and
obligations of the Trustee shall be determined solely by the express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set
forth in this Indenture and no implied covenants or obligations shall be read into this Indenture and the Trust Indenture Act against the Trustee; and 
 (2) in the absence of bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee,
the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture; 
 (b) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless the Trustee was negligent in ascertaining the pertinent facts; 

(c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the
written direction of the holders of not less than a majority in principal amount of the Debentures at the time outstanding determined as provided in Section 9.04 relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; 
 (d) whether or
not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording protection to, the Trustee shall be subject to the provisions of this Section 8.01; 
 (e) the Trustee shall not be liable in respect of any payment (as to the correctness of amount, entitlement to receive or any other
matters relating to payment) or notice effected by the Company or any paying agent or any records maintained by any co-registrar with respect to the Debentures; and 
 (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice to be sent
to the Trustee, the Trustee may conclusively rely on its failure to receive such notice as reason to act as if no such event occurred. 
 None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or
powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  

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 Section 8.02     Reliance on Documents, Opinions, Etc. Except as otherwise
provided in Section 8.01: 
 (a) the Trustee may rely and shall be protected in acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon or other paper or document (whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or
presented by the proper party or parties; 
 (b) any request, direction, order or demand of the Company mentioned herein shall
be sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the
Secretary or an Assistant Secretary of the Company; 
 (c) the Trustee may consult with counsel of its own selection and any
advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 
 (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Debentureholders pursuant to the provisions of this Indenture, unless such Debentureholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby; 
 (e) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall reasonably 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; and 
 (f) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder. 
 Section 8.03     No Responsibility for Recitals, Etc. The recitals contained herein and in the Debentures (except in the
Trustee’s certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Debentures. The Trustee shall not be accountable for the use or application by the Company of any Debentures or the proceeds of any Debentures authenticated and delivered by the Trustee in conformity with the provisions of this
Indenture. 
  

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 Section 8.04     Trustee, Paying Agents, Conversion Agents or Registrar May Own
Debentures. The Trustee, any paying agent, any conversion agent or Debenture registrar, in its individual or any other capacity, may become the owner or pledgee of Debentures with the same rights it would have if it were not Trustee, paying
agent, conversion agent or Debenture registrar. 
 Section 8.05     Monies to Be Held in Trust. Subject to the
provisions of Section 13.04 and Section 4.02, all monies received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Money held by the Trustee in trust hereunder
need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as may be agreed in writing from time to time by the Company and the
Trustee. 
 Section 8.06     Compensation and Expenses of Trustee. The Company covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust) as mutually agreed to from time to time in writing between the Company and the Trustee, and the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably incurred or
made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as may arise from its negligence, willful misconduct, recklessness or bad faith. The Company also covenants to indemnify the Trustee (or any officer, director or employee of the Trustee), in any capacity under this Indenture
and its agents and any authenticating agent for, and to hold them harmless against, any and all loss, liability, claim or expense incurred without negligence, willful misconduct, recklessness or bad faith on the part of the Trustee or such officers,
directors, employees and agent or authenticating agent, as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity hereunder, including the reasonable costs and expenses of
defending themselves against any claim of liability in the premises. The obligations of the Company under this Section 8.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances
shall be secured by a lien prior to that of the Debentures upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Debentures. The obligation of the Company under
this Section shall survive the satisfaction and discharge of this Indenture. 
 When the Trustee and its agents and any authenticating agent
incur expenses or render services after an Event of Default specified in Section 7.01(g) with respect to the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws. 
  

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 Section 8.07     Officers’ Certificate as Evidence. Except as otherwise
provided in Section 8.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate
delivered to the Trustee. 
 Section 8.08     Conflicting Interests of Trustee. If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture. 
 Section 8.09     Eligibility of Trustee. There shall at all times be a Trustee hereunder which shall
be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank holding company system, its bank holding company shall have a
combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of any 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 Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.09, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
 Section 8.10     Resignation or Removal of Trustee. 
 (a) The Trustee may at any time
resign by giving written notice of such resignation to the Company and to the Debentureholders. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment sixty (60) days after
the mailing of such notice of resignation to the Debentureholders, the resigning Trustee may, upon ten (10) business days’ notice to the Company and the Debentureholders, appoint a successor identified in such notice or may petition, at
the expense of the Company, any court of competent jurisdiction for the appointment or a successor trustee, or, if any Debentureholder who has been a bona fide holder of a Debenture or Debentures for at least six (6) months may, subject to the
provisions of Section 7.09, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee. 
 (b) In case at any time any of the following shall occur: 
 (1) the Trustee shall fail to comply with Section 8.08 after written request therefor by the Company or by any Debentureholders who
has been a bona fide holder of a Debenture or Debentures for at least six (6) months; or 
  

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 (2) the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.09 and shall fail to resign after written request therefor by the Company or by any such Debentureholders; or 
 (3) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or liquidation; 
 then, in any such case, the Company may remove the
Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to
the provisions of Section 7.09, any Debentureholders who has been a bona fide holder of a Debenture or Debentures for at least six (6) months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor trustee; provided, however, that if no successor Trustee shall have been appointed and have accepted appointment sixty (60) days after either the Company or
the Debentureholders has removed the Trustee, the Trustee so removed may petition any court of competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee. 
 (c) The holders of a majority in aggregate principal amount
of the Debentures at the time outstanding may at any time remove the Trustee and nominate a successor trustee which shall be deemed appointed as successor trustee unless, within ten (10) days after notice to the Company of such nomination, the
Company objects thereto, in which case the Trustee so removed or any Debentureholders, or if such Trustee so removed or any Debentureholders fails to act, the Company, upon the terms and conditions and otherwise as in Section 8.10(a) provided,
may petition any court of competent jurisdiction for an appointment of a successor trustee. 
 (d) Any resignation or removal
of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 8.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 8.11. 
 Section 8.11     Acceptance by Successor Trustee. Any successor trustee appointed as provided in Section 8.10 shall
execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request
of the Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of Section 8.06, execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such
rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or 

  

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collected by such trustee as such, except for funds held in trust for the benefit of holders of particular Debentures, to secure any amounts then due it
pursuant to the provisions of Section 8.06. 
 No successor trustee shall accept appointment as provided in this Section 8.11
unless, at the time of such acceptance, such successor trustee shall be qualified under the provisions of Section 8.08 and be eligible under the provisions of Section 8.09. 
 Upon acceptance of appointment by a successor trustee as provided in this Section 8.11, the Company (or the former trustee, at the written direction
of the Company) shall mail or cause to be mailed notice of the succession of such trustee hereunder to the Debentureholders at their addresses as they shall appear on the Debenture register. If the Company fails to mail such notice within ten
(10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Company. 
 Section 8.12     Succession by Merger, Etc. Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee (including any trust created by this Indenture), shall be the
successor to the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that in the case of any corporation succeeding to all or substantially all of the corporate
trust business of the Trustee, such corporation shall be qualified under the provisions of Section 8.08 and eligible under the provisions of Section 8.09. 
 In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture, any of the Debentures shall have been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor trustee, and deliver such Debentures so authenticated; and in case at that time any of the Debentures shall not have been
authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate such Debentures in the name of the successor trustee; and in all such cases such certificates shall have the full force that
is provided in the Debentures or in this Indenture; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or authenticate Debentures in the name of any predecessor Trustee shall apply only to
its successor or successors by merger, conversion or consolidation. 
 Section 8.13     Preferential Collection of
Claims. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Debentures), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor). 
 Section 8.14     Trustee’s Application for Instructions from the
Company. Any application by the Trustee for written instructions from the Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Debentureholders or holders of
Senior Debt under this Indenture, including, without limitation, under Article 4 hereof) may, at the option of the Trustee, set forth in writing any action proposed 

  

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to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission shall be effective.
The Trustee shall not be liable for any action taken by, or omission of, the Trustee in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than three
(3) Business Days after the date any officer of the Company actually receives such application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such application specifying the action to be taken or omitted. 
 ARTICLE 9. 
 THE DEBENTUREHOLDERS 
 Section 9.01     Action by Debentureholders. Whenever in this Indenture it is provided that the holders of a specified
percentage in aggregate principal amount of the Debentures may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any
such action, the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Debentureholders in person or by agent or proxy appointed in writing, or
(b) by the record of the Debentureholders voting in favor thereof at any meeting of Debentureholders duly called and held in accordance with the provisions of Article 10, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of Debentureholders. Whenever the Company or the Trustee solicits the taking of any action by the Debentureholders, the Company or the Trustee may fix in advance of such solicitation, a date as the record date for
determining Debentureholders entitled to take such action. The record date shall be not more than fifteen (15) days prior to the date of commencement of solicitation of such action. 
 Section 9.02     Proof of Execution by Debentureholders. Subject to the provisions of Sections 8.01, 8.02 and 10.05, proof of
the execution of any instrument by a Debentureholders or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee. The holding of Debentures shall be proved by the registry of such Debentures or by a certificate of the Debenture registrar. 
 The
record of any Debentureholders’ meeting shall be proved in the manner provided in Section 10.06. 
 Section
9.03     Who Are Deemed Absolute Owners. The Company, the Trustee, any authenticating agent, any paying agent, any conversion agent and any Debenture registrar may deem the Person in whose name such Debenture shall be
registered upon the Debenture register to be, and may treat it as, the absolute owner of such Debenture (whether or not such Debenture shall be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other
than the Company or any Debenture registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and interest on such Debenture, for conversion of such Debenture and for all other purposes; and neither the
Company nor the Trustee nor any other authenticating agent nor 

  

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any paying agent nor any conversion agent nor any Debenture registrar shall be affected by any notice to the contrary. All such payments so made to any
Debentureholder for the time being, or upon his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Debenture. 
 Section 9.04     Company-Owned Debentures Disregarded. In determining whether the Debentureholders of the requisite aggregate
principal amount of Debentures have concurred in any direction, consent, waiver or other action under this Indenture, Debentures which are owned by the Company or any other obligor on the Debentures or any Affiliate of the Company or any other
obligor on the Debentures shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided, however, that, for the purposes of determining whether the Trustee shall be protected in relying on any such
direction, consent, waiver or other action, only Debentures which a Responsible Officer knows are so owned shall be so disregarded. Debentures so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this
Section 9.04 if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to vote such Debentures and that the pledgee is not the Company, any other obligor on the Debentures or any Affiliate of the Company or any
such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers’ Certificate listing and identifying all Debentures, if any, known by the Company to be owned or held by or for the account of any of the above described Persons, and, subject to Section 8.01, the Trustee shall be entitled to
accept such Officers’ Certificate as conclusive evidence of the facts therein set forth and of the fact that all Debentures not listed therein are outstanding for the purpose of any such determination. 
 Section 9.05     Revocation of Consents; Future Debentureholders Bound. At any time prior to (but not after) the evidencing to
the Trustee, as provided in Section 9.01, of the taking of any action by the Debentureholders of the percentage in aggregate principal amount of the Debentures specified in this Indenture in connection with such action, any holder of a
Debenture which is shown by the evidence to be included in the Debentures the holders of which have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 9.02, revoke such action so far as concerns such Debenture. Except as aforesaid, any such action taken by the holder of any Debenture shall be conclusive and binding upon such Debentureholder and upon all future holders and owners of
such Debenture and of any Debentures issued in exchange or substitution therefor, irrespective of whether any notation in regard thereto is made upon such Debenture or any Debenture issued in exchange or substitution therefor. 
 ARTICLE 10. 
 MEETINGS OF
DEBENTUREHOLDERS 
 Section 10.01     Purpose of Meetings. A meeting of Debentureholders may be called at any
time and from time to time pursuant to the provisions of this Article 10 for any of the following purposes: 
 (1) to give any
notice to the Company or to the Trustee or to give any directions to the Trustee permitted under this Indenture, or to consent to the waiving of any 

  

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default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Debentureholders pursuant to any of the
provisions of Article 7; 
 (2) to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article
8; 
 (3) to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of
Section 11.02; or 
 (4) to take any other action authorized to be taken by or on behalf of the holders of any specified
aggregate principal amount of the Debentures under any other provision of this Indenture or under applicable law. 
 Section
10.02     Call of Meetings by Trustee. The Trustee may at any time call a meeting of Debentureholders to take any action specified in this Section 10.01, to be held at such time and at such place as the Trustee shall
determine. Notice of every meeting of the Debentureholders, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to
Section 9.01, shall be mailed to Debentureholders at their addresses as they shall appear on the Debenture register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than twenty (20) nor more than
ninety (90) days prior to the date fixed for the meeting. 
 Any meeting of Debentureholders shall be valid without notice if the
holders of all Debentures then outstanding are present in person or by proxy or if notice is waived before or after the meeting by the holders of all Debentures outstanding, and if the Company and the Trustee are either present by duly authorized
representatives or have, before or after the meeting, waived notice. 
 Section 10.03     Call of Meetings by Company
or Debentureholders. In case at any time the Company, pursuant to a resolution of its Board of Directors, or the holders of at least ten percent (10%) in aggregate principal amount of the Debentures then outstanding, shall have requested
the Trustee to call a meeting of Debentureholders, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within twenty (20) days
after receipt of such request, then the Company or such Debentureholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in Section 10.01, by mailing notice thereof as provided in
Section 10.02. 
 Section 10.04     Qualifications for Voting. To be entitled to vote at any meeting of
Debentureholders a person shall (a) be a holder of one or more Debentures on the record date pertaining to such meeting or (b) be a person appointed by an instrument in writing as proxy by a holder of one or more Debentures on the record
date pertaining to such meeting. The only persons who shall be entitled to be present or to speak at any meeting of Debentureholders shall be the persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and
its counsel and any representatives of the Company and its counsel. 
  

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 Section 10.05 Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of Debentureholders, in regard to proof of the holding of Debentures and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think fit. 
 The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or
by Debentureholders as provided in Section 10.03, in which case the Company or the Debentureholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of
the meeting shall be elected by vote of the holders of a majority in principal amount of the Debentures represented at the meeting and entitled to vote at the meeting. 
 Subject to the provisions of Section 9.04, at any meeting each Debentureholders or proxyholder shall be entitled to one vote for each $1,000 principal amount of Debentures held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any Debenture challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other
than by virtue of Debentures held by him or instruments in writing as aforesaid duly designating him as the proxy to vote on behalf of other Debentureholders. Any meeting of Debentureholders duly called pursuant to the provisions of
Section 10.02 or 10.03 may be adjourned from time to time by the holders of a majority of the aggregate principal amount of Debentures represented at the meeting, whether or not constituting a quorum, and the meeting may be held as so adjourned
without further notice. 
 Section 10.06     Voting. The vote upon any resolution submitted to any meeting of
Debentureholders shall be by written ballot on which shall be subscribed the signatures of the Debentureholders or of their representatives by proxy and the outstanding principal amount of the Debentures held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of
all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Debentureholders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes
on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 10.02. The record shall
show the principal amount of the Debentures voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered
to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 
 Any record so signed and verified shall be conclusive evidence of the matters therein stated. 
  

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 Section 10.07     No Delay of Rights by Meeting. Nothing contained in this
Article 10 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Debentureholders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or
rights conferred upon or reserved to the Trustee or to the Debentureholders under any of the provisions of this Indenture or of the Debentures. 
 ARTICLE 11. 
 SUPPLEMENTAL INDENTURES 
 Section 11.01     Supplemental Indentures without Consent of Debentureholders. The Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to
time, and at any time enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 
 (a) to add to the covenants of the Company such further covenants, restrictions or conditions as the Board of Directors and the Trustee shall consider to be for the benefit of the Debentureholders, and to make the occurrence, or the
occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a default or an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth;
provided, however, that in respect of any such additional covenant, restriction or condition, such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default; 
 (b) to surrender any right or power conferred upon the Company; 
 (c) to provide for the conversion rights of the Debentureholders pursuant to the requirements of Section 15.06; 
 (d) to provide for the assumption of the Company’s obligations to the Debentureholders pursuant to the requirements of Article 12;

 (e) to increase the Conversion Rate, provided that the increase will not adversely affect the interests of the
Debentureholders; 
 (f) to comply with the requirements of the Commission in order to effect or maintain the qualification of
this Indenture under the Trust Indenture Act; 
 (g) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Debentures; 
 (h) to make any changes or modifications necessary in connection with
registration of the Debentures under the Securities Act as contemplated in the Registration Rights Agreement; provided that such change or modification does not, in the good faith opinion of the Company’s Board of Directors and the
Trustee, materially adversely affect the interests of the Debentureholders; 
  

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 (i) to cure any ambiguity or to correct or supplement any provision contained herein or
in any supplemental indenture that may be defective or inconsistent with any other provision contained herein or in any supplemental indenture, provided that such modification or amendment does not, in the good faith opinion of the
Company’s Board of Directors and the Trustee materially adversely affect the interests of the Debentureholders; or 
 (j)
to add or modify any other provisions with respect to matters or questions arising under this Indenture that the Company and the Trustee deem necessary and advisable and that shall not materially adversely affect the interests of the
Debentureholders. 
 Upon the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by
its Secretary or Assistant Secretary authorizing the execution of any supplemental indenture, the Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements
and stipulations that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any supplemental indenture that affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
 Any supplemental indenture authorized by the
provisions of this Section 11.01 may be executed by the Company and the Trustee without the consent of the holders of any of the Debentures at the time outstanding, notwithstanding any of the provisions of Section 11.02. 
 Notwithstanding any other provision of the Indenture or the Debentures, the Registration Rights Agreement and the obligation to pay Liquidated Damages
thereunder may be amended, modified or waived in accordance with the provisions of the Registration Rights Agreement. 
 Section
11.02     Supplemental Indenture with Consent of Debentureholders. With the consent (evidenced as provided in Article 9) of the holders of not less than a majority in aggregate principal amount of the Debentures at the
time outstanding, the Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this Indenture or any supplemental indenture or of modifying in any manner the rights of the Debentureholders. Notwithstanding the foregoing, without the written consent of each
Debentureholder affected, an amendment, supplement or waiver, including a waiver pursuant to Section 7.07 may not: 
 (i)
change the fixed maturity of any Debenture; 
 (ii) reduce the interest rate or change the time of payment of interest or
Liquidated Damages on any Debenture; 
 (iii) reduce the principal amount of any Debenture or premium, if any, thereon, or
reduce any amount payable on redemption or repurchase thereof in accordance with Article 3 hereof or reduce the amount of Liquidated Damages payable thereon; 
  

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 (iv) impair the right to institute suit for the enforcement of any payment on or with
respect to, or the conversion of, any Debenture; 
 (v) make the principal of any Debenture or interest or premium, if any, or
Liquidated Damages on any Debenture payable in any coin or currency other than that provided in the Debentures; 
 (vi) modify
the provisions of this Indenture with respect to the redemption of the Debentures in a manner adverse to the Debentureholders; 
 (vii) except as otherwise permitted or contemplated by Article 12 hereof, change the obligation of the Company to repurchase any Debenture upon the happening of a Fundamental Change in a manner adverse to the Debentureholder; 
 (viii) impair or adversely affect the right to convert the Debentures subject to the terms set forth herein; 
 (ix) alter the manner of calculation or rate of accrual of Liquidated Damages on any Debenture or extend the time for payment of such
amount; or 
 (x) reduce the aforesaid percentage of Debentures, the holders of which are required to consent to any
modification, amendment or supplemental indenture or to waive any past default, or the percentage of Debentures, the holders of which are required for any other waiver under this Indenture. 
 Upon the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Debentureholders as aforesaid, the Trustee shall join with the Company in the execution of such supplemental
indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but snail not be obligated to, enter into such supplemental
indenture. 
 It shall not be necessary for the consent of the Debentureholders under this Section 11.02 to approve the particular form
of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. 
  

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 Section 11.03     Effect of Supplemental Indenture. Any supplemental indenture
executed pursuant to the provisions of this Article 11 shall comply with the Trust Indenture Act, as then in effect, provided that this Section 11.03 shall not require such supplemental indenture or the Trustee to be qualified under the
Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any
party to such supplemental indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act. Upon
the execution of any supplemental indenture pursuant to the provisions of this Article 11, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the Debentureholders shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
 Section 11.04     Notation on Debentures. Debentures authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article 11 may bear a notation in form approved
by the Trustee as to any matter provided for in such supplemental indenture. If the Company or the Trustee shall so determine, new Debentures so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any modification of
this Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared and executed by the Company, authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to
Section 16.11) and delivered in exchange for the Debentures then outstanding, upon surrender of such Debentures then outstanding. 
 Section 11.05     Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee. Prior to entering into any supplemental indenture, the Trustee may request an Officers’ Certificate and an
Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies with the requirements of this Article 11. 
 ARTICLE 12. 
 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE 
 Section 12.01     Company May Consolidate, Etc, on Certain Terms. The Company shall not consolidate with or merge into
any other Person or convey, transfer, sell, lease or otherwise dispose of all or substantially of if its properties and assets to another Person unless: 
 (a) the resulting, surviving or transferee Person is organized and existing under the laws of the United States, any state thereof or the District of Columbia; 
 (b) such Person, if other than the Company, assumes all of the Company’s obligations under the Debentures and this Indenture; and

 (c) the Company or such successor Person is not then or immediately thereafter in default under this Indenture. 

 

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 Section 12.02     Successor Corporation to Be Substituted. In case of any such
consolidation, merger, sale, conveyance or lease and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the
principal of and premium, if any, and interest on all of the Debentures and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Company, such successor Person shall succeed to and be
substituted for the Company, with the same effect as if it had been named herein as the party of this first part. Such successor Person thereupon may cause to be signed, and may issue either in its own name or in the name of Mentor Graphics
Corporation any or all of the Debentures, issuable hereunder that theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor Person instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be authenticated and delivered, any Debentures that previously shall have been signed and delivered by the officers of the Company
to the Trustee for authentication, and any Debentures that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Debentures so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Debentures theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Debentures had been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance or lease, the Person named as the “Company” in the first paragraph of this Indenture or any successor that shall thereafter have become such in the manner prescribed in this Article 12 may be
dissolved, wound up and liquidated at any time thereafter and such Person shall be released from its liabilities as obligor and maker of the Debentures and from its obligations under this Indenture. 
 In case of any such consolidation, merger, sale, conveyance or lease, such changes in phraseology and form (but not in substance) may be made in the
Debentures thereafter to be issued as may be appropriate. 
 Section 12.03     Opinion of Counsel to Be Given
Trustee. The Trustee shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance or lease and any such assumption complies with the provisions of this
Article 12. 
 ARTICLE 13. 
 SATISFACTION AND DISCHARGE OF INDENTURE 
 Section 13.01     Discharge of Indenture. When
(a) the Company shall deliver to the Trustee for cancellation all Debentures theretofore authenticated (other than any Debentures that have been destroyed, lost or stolen and in lieu of or in substitution for which other Debentures shall have
been authenticated and delivered) and not theretofore canceled, or (b) all the Debentures not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, and the Company shall deposit with the Trustee,
funds sufficient to pay principal and premium, if any, and interest and Liquidated Damages, if any, due on any outstanding Debentures, accompanied by a verification report, as to the sufficiency of the deposited amount, from an independent certified
accountant or other financial professional reasonably satisfactory to the Trustee, and if the Company shall also pay or cause to be paid all 

  

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other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to (i) remaining rights of registration
of transfer, substitution and exchange and conversion of Debentures, (ii) rights hereunder of Debentureholders to receive payments of principal of and premium, if any, and interest and Liquidated Damages, if any on, the Debentures and the other
rights, duties and obligations of Debentureholders, as beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee, and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on
written demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required by Section 16.05 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture; the Company, however, hereby agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter reasonably and
properly rendered by the Trustee in connection with this Indenture or the Debentures. 
 Section 13.02     Deposited
Monies to Be Held in Trust by Trustee. Subject to Section 13.04, all monies deposited with the Trustee pursuant to Section 13.01, provided such deposit was not in violation of Article 4, shall be held in trust for the
sole benefit of the Debentureholders and not to be subject to the subordination provisions of Article 4, and such monies shall be applied by the Trustee to the payment, either directly or through any paying agent (including the Company if acting as
its own paying agent), to the holders of the particular Debentures for the payment or redemption of which such monies have been deposited with the Trustee, of all sums due and to become due thereon for principal and interest and premium, if any.

 Section 13.03     Paying Agent to Repay Monies Held. Upon the satisfaction and discharge of this Indenture, all
monies then held by any paying agent of the Debentures (other than the Trustee) shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon such paying agent shall be released from all further liability with
respect to such monies. 
 Section 13.04     Return of Unclaimed Monies. Subject to the requirements of applicable
law, any monies deposited with or paid to the Trustee for payment of the principal of, premium, if any, or interest on Debentures and not applied but remaining unclaimed by the Debentureholders for six (6) months after the date upon which the
principal of, premium, if any, or interest on such Debentures, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee on demand and all liability of the Trustee shall thereupon cease with respect to such
monies; and the holder of any of the Debentures shall thereafter look only to the Company for any payment that such Debentureholder may be entitled to collect unless an applicable abandoned property law designates another Person. 
 Section 13.05     Reinstatement. If the Trustee or the paying agent is unable to apply any money in accordance with
Section 13.02 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Debentures shall be revived
and reinstated as though no deposit had occurred pursuant to Section 13.01 until such time as the Trustee or the paying agent is permitted to apply all such money in accordance with Section 13.02; provided, however, that if the
Company makes any payment of interest on or principal of any Debenture 

  

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following the reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such Debentures to receive such payment from
the money held by the Trustee or paying agent. 
 ARTICLE 14. 
 IMMUNITY OF INCORPORATORS, 
 STOCKHOLDERS, OFFICERS AND DIRECTORS

 Section 14.01     Indenture and Debentures Solely Corporate Obligations. No recourse for the payment of the
principal of or premium, if any, or interest on any Debenture, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Debenture, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as such, past, present or future,
of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of the Debentures. 
 ARTICLE 15. 
 CONVERSION OF
DEBENTURES 
 Section 15.01     Conversion Privilege and Conversion Rate. 
 (a) Subject to the obligation and the right of the Company to pay some or all of the conversion consideration in cash in accordance with
Section 15.14, and upon compliance with the provisions of this Article 15, at the option of the holder thereof, any Debenture or portion thereof that is an integral multiple of $1,000 principal amount may be converted into fully paid and
nonassessable shares (calculated as to each conversion to the nearest 1/100th of a share) of Common Stock prior to the close of business on the Business Day immediately preceding the Final Maturity Date or such earlier date set forth in this
Article 15, unless previously redeemed by the Company or purchased by the Company at the Debentureholder’s option, at the Conversion Rate in effect at such time, determined as hereinafter provided and subject to the adjustments described
below, only under the following circumstances: 
 (1) during any calendar quarter beginning after June 30, 2006, and only
during such calendar quarter, if, as of the last day of the immediately preceding calendar quarter, the Closing Price per share of the Common Stock for at least 20 Trading Days in the period of the 30 consecutive Trading Days ending on the last
Trading Day of such preceding calendar quarter was more than 120% of the Conversion Price on the last day of such preceding calendar quarter (the “Conversion Trigger Price”); 
 (2) until the close of business on the second Business Day immediately preceding the Redemption Date if the Company elects to redeem the
relevant Debenture pursuant to Article 3; 
  

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 (3) if the Company distributes to all holders of Common Stock certain rights (including
rights or rights certificates under a shareholders’ rights agreement) or warrants entitling them to purchase, for a period expiring within 45 days of the date of issuance (or, in the case of rights certificates issued under a shareholder rights
agreement, within 45 days of the later of the date of issuance and any scheduled redemption date or similar date under such shareholders’ rights agreement), Common Stock at less than the Closing Price per share of the Common Stock on the day of
issuance; 
 (4) if the Company distributes to all holders of Common Stock, assets, debt securities or certain rights to
purchase the Company’s securities, which distribution has a per share value exceeding 10% of the Closing Price per share of the Common Stock on the Business Day preceding the declaration date for such distribution; 
 (5) [Intentionally Omitted] 
 (6) if a Fundamental Change occurs; 
 (7) at any time during the ten (10) consecutive
Trading Day period ending at the close of business on the Business Day immediately preceding the Final Maturity Date; or 
 (8) during any five Business Day period after any five consecutive Trading Day period in which the Trading Price per $1,000 principal amount of Debentures, as determined following a request by a Debentureholder in accordance with the
procedures described below in Section 15.01(e)(ii), for each day of that period was less than 98% of the product of the Closing Price of the Common Stock and the then applicable Conversion Rate. 
 (b) In the case of a distribution contemplated by clauses (3) and (4) of Section 15.01(a), the Company shall notify
Debentureholders at least twenty (20) days prior to the ex-dividend date for such distribution (the “Distribution Notice”); provided that if the Company distributes rights pursuant to a shareholder rights agreement, it
will notify the Debentureholders on the Business Day after the Company is required to give notice generally to its shareholders pursuant to such shareholder rights agreement if such date is less than twenty (20) days prior to the date of such
distribution. Once the Company has given the Distribution Notice, Debentureholders may surrender their Debentures for conversion at any time until the earlier of the close of business on the last Business Day preceding the ex-dividend date or the
Company’s announcement that such distribution will not take place. In the event of a distribution contemplated by clauses (3) and (4) of Section 15.01(a), Debentureholders may not convert the Debentures if the Debentureholders
will otherwise participate in such distribution without converting their Debentures. The Company will provide written notice to the conversion agent as soon as reasonably practicable of any anticipated or actual event or transaction that will cause
or causes the Debentures to become convertible pursuant to clauses (3) or (4) of Section 15.01(a). 
 (c)
[Intentionally Omitted] 
 (d) In the case of a transaction contemplated by clause (6) of Section 15.01(a), the
Company shall notify the Debentureholders and Trustee at least ten (10) Trading Days prior 

  

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to the anticipated Fundamental Change Effective Date of any Fundamental Change (“Fundamental Change Effective Date”) or the anticipated
effective date of an event that would have been a Change of Control but for the 105% Trading Price Exception that the Company knows or reasonably should know will occur. If the Company does not know, and should not reasonably know, that a
Fundamental Change or such other event will occur until a date that is within ten (10) Trading Days before the anticipated Fundamental Change Effective Date or effective date of such other event, the Company shall notify the Debentureholders
and the Trustee promptly after the Company has knowledge of such Fundamental Change or such other event. Debentureholders may surrender Debentures for conversion at any time beginning ten (10) Trading Days before the anticipated Fundamental
Change Effective Date of a Fundamental Change or the anticipated effective date of an event that would have been a Change of Control but for the 105% Trading Price Exception and until the close of business on the last Trading Day preceding the
Fundamental Change Repurchase Date. 
 (e) (i) For each calendar quarter of the Company, beginning with the calendar quarter
ending June 30, 2006, the conversion agent, on behalf of the Company, shall determine, on the first Business Day following the last Trading Day of such calendar quarter, whether the Debentures are convertible pursuant to clause (1) of
Section 15.01(a), and, if so, will notify the Trustee and the Company in writing. 
 (ii) The Trustee shall have no
obligation to determine the Trading Price of the Debentures and whether the Debentures are convertible pursuant to clause (8) of Section 15.01(a) unless the Company has requested such determination; and the Company shall have no obligation
to make such request unless a Debentureholder provides the Company with reasonable evidence that the Trading Price per $1,000 principal amount of Debentures would be less than 98% of the product of the Closing Price of the Common Stock and the
Conversion Rate per $1,000 principal amount of Debentures. At such time, the Company shall instruct the Trustee to determine the Trading Price of the Debentures beginning on the next Trading Day and on each successive Trading Day until the Trading
Price per $1,000 principal amount of the Debentures is greater than 98% of the product of the Closing Price of the Common Stock and the Conversion Rate. 
 (f) The conversion rights pursuant to this Article 15 shall commence on the initial issuance date of the Debentures and expire at the close of business on the Business Day immediately preceding the Final Maturity
Date, but shall be exercisable only during the time periods specified with respect to each circumstance pursuant to which the Debentures become convertible, subject, in the case of conversion of any Global Debenture, to any Applicable Procedures. If
a Debenture is called for redemption or submitted or presented for purchase pursuant to Article 3, such conversion right shall terminate at the close of business on the second Business Day immediately preceding the Redemption Date and on the
Business Day immediately preceding the Put Right Purchase Date or Fundamental Change Repurchase Date for such Debenture (unless the Company shall fail to make the Redemption Price, Put Right Purchase Price, or Fundamental Change Repurchase Price
payment when due in accordance with Article 3, in which case the conversion right shall terminate at the close of business on the date such failure is cured and such Debenture is redeemed or purchased, as the case may be). If a Debenture is
convertible as a result of a Fundamental Change, such conversion right shall commence and terminate as set forth in Section 15.01(d). Debentures in respect of which a 

  

 69 

 
Fundamental Change Repurchase Notice or a Put Right Purchase Notice, as the case may be, has been delivered may not be surrendered for conversion pursuant to
this Article 15 prior to a valid withdrawal of such Fundamental Change Repurchase Notice or Put Right Purchase Notice, as the case may be, in accordance with the provisions of Article 3. 
 (g) Provisions of this Indenture that apply to conversion of all of a Debenture also apply to conversion of a portion of a Debenture.

 (h) A Debentureholder is not entitled to any rights of a holder of Common Stock until such Debentureholder has converted
its Debentures into Common Stock, and only to the extent such Debentures are deemed to have been converted into Common Stock pursuant to this Article 15. 
 (i) The Conversion Rate shall be adjusted in certain instances as provided in Section 15.01(j) and Section 15.06. 
 (j) If prior to March 6, 2011, there shall have occurred a Fundamental Change (or an event that would have been a Change of Control but for the existence of the 105% Trading Price Exception), the Company shall
pay a “Make Whole Premium” to the Debentureholders who convert their Debentures during the period beginning ten (10) Trading Days before the anticipated Fundamental Change Effective Date and ending at the close of business on
the Business Day immediately preceding the Fundamental Change Repurchase Date by increasing the Conversion Rate for such Debentures. The number of additional shares of Common Stock per $1,000 principal amount of Debentures constituting the Make
Whole Premium shall be determined by the Company by reference to the table below, based on the Fundamental Change Effective Date and the Stock Price (as defined below) of such Fundamental Change; provided that if the Stock Price or
Fundamental Change Effective Date are not set forth on the table: (i) if the actual Stock Price on the Fundamental Change Effective Date is between two Stock Prices on the table or the actual Fundamental Change Effective Date is between two
Fundamental Change Effective Dates on the table, the Make Whole Premium will be determined by a straight-line interpolation between the Make Whole Premiums set forth for the two Stock Prices and the two Fundamental Change Effective Dates on the
table based on a 365-day year, as applicable, (ii) if the Stock Price on the Fundamental Change Effective Date exceeds $50.00 per share, subject to adjustment as set forth herein, no Make Whole Premium will be paid, and (iii) if the Stock
Price on the Fundamental Change Effective Date is less than $11.23 per share, subject to adjustment as set forth herein, no Make Whole Premium will be paid. If holders of the Common Stock receive only cash in the Fundamental Change, the
“Stock Price” shall be the cash amount paid per share of the Common Stock in connection with the Fundamental Change. Otherwise, the “Stock Price” shall be equal to the average Closing Prices of the Common Stock for
each of the 10 Trading Days immediately preceding, but not including, the applicable Fundamental Change Effective Date. 
  

 70 

 Make Whole Premium Upon a Fundamental Change Increase in Applicable Conversion Rate 
  

													
	 	  	Fundamental Change Effective Date
	 Stock Price on
 Fundamental
Change
 Effective Date
	  	March 3,
2006	  	March 1,
2007	  	March 1,
2008	  	March 1,
2009	  	March 1,
2010	  	March 6,
2011
	 $11.23
	  	33.39	  	33.39	  	33.39	  	33.39	  	33.39	  	0.00
	 16.00
	  	19.16	  	17.13	  	14.90	  	12.51	  	9.95	  	0.00
	 20.00
	  	13.89	  	12.08	  	9.88	  	7.45	  	4.55	  	0.00
	 24.00
	  	11.00	  	9.33	  	7.42	  	5.28	  	2.79	  	0.00
	 30.00
	  	8.45	  	7.08	  	5.54	  	3.85	  	1.97	  	0.00
	 35.00
	  	7.15	  	5.97	  	4.66	  	3.23	  	1.67	  	0.00
	 40.00
	  	6.21	  	5.19	  	4.05	  	2.81	  	1.46	  	0.00
	 45.00
	  	5.51	  	4.60	  	3.59	  	2.49	  	1.30	  	0.00
	 50.00
	  	4.95	  	4.14	  	3.22	  	2.24	  	1.17	  	0.00

 The Stock Prices set forth in the first column of the table above will be adjusted as of any date
on which the Conversion Rate of the Debentures is adjusted. The adjusted Stock Prices will equal the Stock Prices applicable immediately prior to such adjustment multiplied by a fraction, the numerator of which is the Conversion Rate immediately
prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of additional shares set forth in the table above will be adjusted in the same manner as the Conversion
Rate as set forth in Section 15.06 hereof, other than as a result of an adjustment of the Conversion Rate by adding the Make Whole Premium as described above. 
 Notwithstanding the foregoing paragraph, in no event will the total number of shares of Common Stock issuable upon conversion of a Debenture exceed 89.0471 per $1,000 principal amount, subject to proportional
adjustment in the same manner as the Conversion Rate as set forth in clauses (1) through (4) of Section 15.06(a) hereof. 
 The additional shares of Common Stock, if any, or cash delivered to satisfy the Company’s obligations to Debentureholders that convert their Debentures in connection with a Fundamental Change or an event that would have been a Change
of Control but for the existence of the 105% Trading Price Exception will be delivered upon the later of the settlement date for the conversion and promptly following the Fundamental Change Effective Date or the effective date of such other event.

 (k) By delivering the amount of cash and/or the number of shares of Common Stock issuable on conversion to the Trustee, the
Company will be deemed to have satisfied its obligation to pay the principal amount of the Debentures so converted and its obligation to pay accrued and unpaid interest attributable to the period from the most recent Interest Payment Date through
the Conversion Date (which amount will be deemed paid in full rather than cancelled, extinguished or forfeited). 
 (l)
Notwithstanding anything else contained herein, the Debentures shall not become subject to conversion by reason of a merger, consolidation, or other transaction effected with one of the Company’s direct or indirect Subsidiaries for the purpose
of changing the Company’s state of incorporation to any other state within the United States or the District of Columbia. 
 Section
15.02     Conversion Procedures. 
 (a) To convert a Debenture, a Debentureholder must
(1) complete and manually sign the conversion notice on the back of the Debenture and deliver such notice to a 

  

 71 

 
Conversion Agent, (2) surrender the Debenture to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by a
Registrar or a Conversion Agent, and (4) pay all transfer or similar taxes, if required pursuant to Section 15.04. The date on which the Debentureholder has complied with all of those requirements is the “Conversion Date.”
Upon the conversion of a Debenture, the Company will pay the cash and deliver the shares of Common Stock, as applicable, as promptly as practicable after the later of the Conversion Date and the date that all calculations necessary to make such
payment and delivery have been made, but in no event later than five Business Days after the later of those dates. Anything herein to the contrary notwithstanding, in the case of Global Debentures, conversion notices may be delivered and such
Debentures may be surrendered for conversion in accordance with the Applicable Procedures as in effect from time to time. 
 In order to
exercise the conversion privilege with respect to any interest in a Global Debenture, the beneficial holder must complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the Depository’s book-entry
conversion program, deliver or cause to be delivered, by book-entry delivery an interest in such Global Debenture, furnish appropriate endorsements and transfer documents if required by the Company or the Trustee or Conversion Agent, and pay the
funds, if any, required by this Section 15.02 and any transfer or similar taxes, if any, required by Section 15.04. Anything herein to the contrary notwithstanding, in the case of Global Debentures, conversion notices may be delivered and
such Debentures may be surrendered for conversion in accordance with the Applicable Procedures as in effect from time to time. 
 (b) The person in whose name the shares of Common Stock are issuable upon conversion shall be deemed to be a holder of record of such Common Stock on the later of (i) the Conversion Date, (ii) the expiration of the period in which
the Company may elect to deliver cash in lieu of shares of Common Stock, or (iii) if the Company elects to deliver cash in lieu of some, but not all, of such shares of Common Stock, the date on which the amount of cash issuable per Debenture
has been determined; provided, however, that no surrender of a Debenture on any Conversion Date when the stock transfer books of the Company shall be closed shall be effective to constitute the person or persons entitled to receive the
shares of Common Stock upon conversion as the record holder or holders of such shares of Common Stock on such date, but such surrender shall be effective to constitute the person or persons entitled to receive such shares of Common Stock as the
record holder or holders thereof for all purposes at the close of business on the next succeeding day on which such stock transfer books are open; provided further that such conversion shall be at the applicable Conversion Rate as if the
stock transfer books of the Company had not been closed. Upon conversion of a Debenture, such person shall no longer be a Debentureholder. Except as set forth in this Indenture, no payment or adjustment will be made for dividends or distributions
declared or made on shares of Common Stock issued upon conversion of a Debenture prior to the issuance of such shares. 
 (c)
Holders of Debentures surrendered for conversion (in whole or in part) during the period from the close of business on any Record Date to the opening of business on the next succeeding Interest Payment Date (excluding Debentures or portions thereof
called for redemption) will receive the semiannual interest payable on such Debentures on the corresponding Interest Payment Date notwithstanding the conversion. Upon surrender of any such Debentures for conversion, unless such Debentures are being
converted solely pursuant to 

  

 72 

 
Section 15.01(a)(2) or Section 15.01(a)(6) (in each case in accordance with the second paragraph of Section 2.03), such Debentures shall also
be accompanied by payment in funds acceptable to the Company of an amount equal to the interest payable on such corresponding Interest Payment Date. Except as otherwise provided in this Section 15.02(c), no payment or adjustment will be made
for accrued interest on a converted Debenture. 
 (d) Subject to Section 15.02(c), nothing in this Section shall affect
the right of a Debentureholder in whose name any Debenture is registered at the close of business on a Record Date to receive the interest payable on such Debenture on the related Interest Payment Date in accordance with the terms of this Indenture
and the Debentures. If a Debentureholder converts more than one Debenture at the same time, the amount of cash to be paid and the number of shares of Common Stock issuable upon the conversion, if any, (and the amount of any cash in lieu of
fractional shares pursuant to Section 15.03) shall be based on the aggregate principal amount of all Debentures so converted. 
 (e) In the case of any Debenture which is converted in part only, upon such conversion the Company shall execute and the Trustee shall authenticate and deliver to the Debentureholder thereof, without service charge, a new Debenture or
Debentures of authorized denominations in an aggregate principal amount equal to, and in exchange for, the unconverted portion of the principal amount of such Debenture. A Debenture may be converted in part, but only if the principal amount of such
part is an integral multiple of $1,000 and the principal amount of such Debenture to remain outstanding after such conversion is equal to $1,000 or any integral multiple of $1,000 in excess thereof. 
 (f) Upon the Company’s determination that a Debentureholder is or will be entitled to convert their Debentures into shares of Common
Stock pursuant to this Article 15, the Company will use its reasonable efforts to post such information on the Company’s website or otherwise publicly disclose such information. 
 Section 15.03     Fractional Shares. The Company will not issue fractional shares of Common Stock upon conversion of
Debentures. If more than one Debenture shall be surrendered for conversion at one time by the same Debentureholder, the number of full shares that shall be issuable upon conversion shall be computed on the basis of the aggregate principal amount of
the Debentures (or specified portions thereof to the extent permitted hereby) so surrendered. In lieu of any fractional shares, the Company will pay an amount in cash for the current market value of the fractional shares. The current market value of
a fractional share shall be determined (calculated to the nearest 1/100th of a share) by multiplying the average of the Volume Weighted Average Price of the Common Stock for each of the consecutive Trading Days of the Conversion Reference Period by
such fractional share and rounding the product to the nearest whole cent. 
  

 73 

 Section 15.04     Taxes on Conversion. If a Debentureholder converts a
Debenture, the Debentureholder shall pay any transfer, stamp or similar taxes or duties related to the issue or delivery of shares of Common Stock upon such conversion. The Debentureholder shall also pay any such tax with respect to cash received in
lieu of fractional shares. In addition, the Debentureholder shall pay any such tax which is due because the Debentureholder requests the shares to be issued in a name other than the Debentureholder’s name. The conversion agent may refuse to
deliver the certificate representing the Common Stock being issued in a name other than the Debentureholder’s name until the conversion agent receives a sum sufficient to pay any tax which will be due because the shares are to be issued in a
name other than the Debentureholder’s name. Nothing herein shall preclude any tax withholding required by law or regulation. 
 Section
15.05     Company to Provide Stock. 
 (a) The Company shall, prior to issuance of any Debentures
hereunder, and from time to time as may be necessary, reserve, out of its authorized but unissued Common Stock, a sufficient number of shares of Common Stock to permit the conversion of all outstanding Debentures into shares of Common Stock.

 (b) All shares of Common Stock delivered upon conversion of the Debentures shall be newly issued shares, shall be duly
authorized, validly issued, fully paid and nonassessable and shall be free from preemptive or similar rights and free of any lien or adverse claim as the result of any action by the Company. 
 (c) The Company will endeavor promptly to comply with all federal and state securities laws regulating the offer and delivery of shares of
Common Stock upon conversion of Debentures. 
 (d) [Intentionally Omitted] 
 Section 15.06     Adjustment of Conversion Rate. 
 (a) The Conversion Rate shall be adjusted from time to time by the Company as follows: 
 (1) If the Company shall pay a dividend or make a distribution to all holders of outstanding Common Stock in shares of Common Stock, the
Conversion Rate in effect immediately prior to the record date for the determination of shareholders entitled to receive such dividend or other distribution shall be increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator of shall be the sum of the number of shares of Common Stock outstanding at the close of business on such record date plus the total number of shares
of Common Stock constituting such dividend or other distribution and of which the denominator shall be the number of shares of Common Stock outstanding at the close of business on such record date. Such adjustment shall be made successively whenever
any such dividend or distribution is made and shall become effective immediately after such record date. For the purpose of this clause (1), the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury
of the Company. The Company will not pay any dividend 

  

 74 

 
or make any distribution on Common Stock held in the treasury of the Company. If any dividend or distribution of the type described in this clause is
declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
 (2) If the Company shall subdivide its outstanding Common Stock into a greater number of shares, or combine its outstanding Common Stock
into a smaller number of shares, the Conversion Rate in effect immediately prior to the day upon which such subdivision or combination becomes effective shall be, in the case of a subdivision of Common Stock, proportionately increased and, in the
case of a combination of Common Stock, proportionately reduced. Such adjustment shall be made successively whenever any such subdivision or combination of the Common Stock occurs and shall become effective immediately after the date upon which such
subdivision or combination becomes effective. 
 (3) If the Company shall issue rights or warrants to all holders of its
outstanding Common Stock entitling them (for a period expiring within 45 days after such issuance) to subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock) at a price per share (or having a conversion price
per share) less than the Current Market Price per share of Common Stock (as determined in accordance with clause (9) of this Section 15.06(a)) on the record date for the determination of shareholders entitled to receive such rights or
warrants, the Conversion Rate in effect immediately prior thereto shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding at the close of business on such record date plus the number of additional shares of Common Stock that such rights or warrants entitle holders thereof to subscribe for or purchase
(or into which such convertible securities are convertible) and of which the denominator shall be the number of shares of Common Stock outstanding at the close of business on such record date plus the number of shares which the aggregate offering
price of the total number of shares of Common Stock so offered for subscription or purchase (or the aggregate conversion price of the convertible securities so offered for subscription or purchase, which shall be determined by multiplying the number
of shares of Common Stock issuable upon conversion of such convertible securities by the conversion price per share of Common Stock pursuant to the terms of such convertible securities) would purchase at the Current Market Price per share of Common
Stock on such record date. Such adjustment shall be made successively whenever any such rights or warrants (or convertible securities) are issued, and shall become effective immediately after such record date. To the extent that shares of Common
Stock (or securities convertible into Common Stock) are not delivered after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the
issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common Stock (or securities convertible into Common Stock) actually delivered. If such rights or warrants are not so issued, the Conversion Rate
shall again be adjusted to be the Conversion Rate that would then be in effect if the record date for the determination of shareholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or warrants
entitle the shareholders to subscribe for or purchase shares of Common Stock at a price less than the Current Market Price per share of Common Stock and in determining the aggregate offering price of the total number of shares of Common Stock so
offered, there shall be taken into account 

  

 75 

 
any consideration received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of Directors. 
 (4) If the Company shall make a dividend or
other distribution to all holders of its Common Stock of Capital Stock, other than Common Stock, or evidences of indebtedness or other assets of the Company (excluding (x) any issuance of rights or warrants for which an adjustment was made
pursuant to Section 15.06(a)(3), (y) dividends or distributions in connection with a reclassification, change, consolidation, merger, combination, liquidation, dissolution, winding up, sale or conveyance resulting in a change in the
conversion consideration, or pursuant to any shareholder rights plan or (z) any dividend or distribution paid exclusively in cash for which an adjustment was made pursuant to Section 15.06(a)(6)) (the “Distributed
Securities”), then in each such case (unless the Company distributes such Distributed Securities for distribution to the Debentureholderson such dividend or distribution date as if each Debentureholder had converted such Debenture into
Common Stock immediately prior to the record date with respect to such distribution) the Conversion Rate in effect immediately prior to the record date fixed for the determination of shareholders entitled to receive such dividend or distribution
shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the Current Market Price per share of the Common
Stock on such record date and of which the denominator shall be Current Market Price per share on such record date less the fair market value (as determined in good faith by the Board of Directors, whose determination shall be conclusive evidence of
such fair market value and which shall be evidenced by an Officers’ Certificate delivered to the Trustee) on such record date of the portion of the Distributed Securities so distributed applicable to one share of Common Stock (determined on the
basis of the number of shares of Common Stock outstanding at the close of business on such record date). Such adjustment shall be made successively whenever any such distribution is made and shall become effective immediately after the record date
for the determination of shareholders entitled to receive such distribution. In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect
if such dividend or distribution had not been declared. 
 If the fair market value (as so determined) of the portion of the Distributed
Securities so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on such record date, in lieu of the foregoing adjustment, adequate provision shall be made so that
each Debentureholder shall have the right to receive upon conversion the amount of Distributed Securities so distributed that such Debentureholder would have received had such Debentureholder converted each Debenture on such record date. If the
Board of Directors determines the fair market value of any distribution for purposes of this Section 15.06(a)(4) by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in such market
over the same period used in computing the Current Market Price of the Common Stock. 
 Notwithstanding the foregoing, if the securities
distributed by the Company to all holders of its Common Stock consist of Capital Stock of, or similar equity interests in, a Subsidiary or other business unit of the Company (the “Spinoff Securities”), the Conversion Rate shall be

  

 76 

 
adjusted, unless the Company makes an equivalent distribution to the Debentureholders, so that the same shall be equal to the rate determined by multiplying
the applicable Conversion Rate in effect on and after the record date fixed for the determination of shareholders entitled to receive such distribution by a fraction, the numerator of which shall be the sum of (A) the average Closing Price of
one share of Common Stock over the ten (10) consecutive Trading Day period (the “Spinoff Valuation Period”) commencing on and including the fifth (5th) Trading Day after the date on which ex-dividend trading commences for such distribution on the Nasdaq National Market or such other U.S. national or
regional exchange or market on which the Common Stock is then listed or quoted and (B) the average of the Closing Prices over the Spinoff Valuation Period of the Spinoff Securities multiplied by the number of Spinoff Securities distributed in
respect of one share of Common Stock and the denominator of which shall be the average Closing Price of one share of Common Stock over the Spinoff Valuation Period, such adjustment to become effective immediately prior to the opening of business on
the fifteenth (15th) Trading Day after the date on which ex-dividend trading commences; provided,
however, that the Company may in lieu of the foregoing adjustment elect to make adequate provision so that each Debentureholder shall have the right to receive upon conversion thereof the amount of such Spinoff Securities that such
Debentureholder would have received if such Debentures had been converted on the record date with respect to such distribution. 
 (5) With respect to any rights, rights certificates or warrants (the “Rights”) that may be issued or distributed pursuant to any rights plan (including any rights plan that the Company implements after the date of this
Indenture, a “Rights Plan”), in lieu of any adjustment required by any other provision of this Section 15.06, upon conversion of the Debentures into Common Stock, to the extent that such Rights Plan is in effect upon such
conversion, the Debentureholder will receive, with respect to the shares of Common Stock issued upon conversion, the Rights described therein (whether or not the Rights have separated from the Common Stock at the time of conversion), subject to the
limitations set forth in and in accordance with any such Rights Plan; provided that if, at the time of conversion, however, the Rights have separated from the shares of Common Stock in accordance with the provisions of the Rights Plan so that
Debentureholders would not be entitled to receive any rights in respect of the shares of Common Stock issuable upon conversion of the Debentures as a result of the timing of the Conversion Date, the Conversion Rate will be adjusted as if the Company
distributed to all holders of Common Stock Distributed Securities as provided in the first paragraph of clause (4) of this Section 15.06(a), subject to appropriate readjustment in the event of the invalidation, termination, repurchase or
redemption of the Rights. Any distribution of rights, rights certificates or warrants pursuant to a Rights Plan complying with the requirements set forth in the immediately preceding sentence of this paragraph shall not constitute a distribution of
rights, rights certificates or warrants pursuant to this Section 15.06(a). Other than as specified in this clause (5) of this Section 15.06(a), there will not be any adjustment to the Conversion Rate as the result of the issuance of
any Rights, the distribution of separate certificates representing such Rights, the exercise or redemption of such Rights in accordance with any Rights Plan or the termination or invalidation of any Rights. 
 (6) If the Company shall, by dividend or otherwise, at any time distribute (a “Triggering Distribution”) to all holders
of its Common Stock a payment consisting exclusively of cash (excluding any dividend or distribution in connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary) the 

  

 77 

 
Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying such Conversion Rate in effect immediately prior to the
close of business on the record date for such Triggering Distribution (a “Determination Date”) by a fraction of which the numerator shall be such Current Market Price per share of the Common Stock on the Determination Date and the
denominator of which shall be the Current Market Price per share of the Common Stock on the Determination Date less the amount of such cash dividend or distribution applicable to one share of Common Stock (determined on the basis of the number of
shares of Common Stock outstanding at the close of business on the Determination Date), such increase to become effective immediately prior to the opening of business on the day following the date on which the Triggering Distribution is paid. If the
amount of cash dividend or distribution applicable to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on the Determination Date, in lieu of the foregoing adjustment, adequate provision
shall be made so that each Debentureholder shall have the right to receive upon conversion the amount of cash so distributed that such Debentureholder would have received had such Debentureholder converted each Debenture on such Determination Date.
In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such divided or distribution had not been declared. 
 (7) If any tender offer made by the Company or any of its Subsidiaries for all or any portion of Common Stock shall expire, then, if the
tender offer shall require the payment to shareholders of consideration per share of Common Stock having a fair market value (determined as provided below) that exceeds the average of the Closing Price per share of Common Stock on the Trading Day
next succeeding the last date (the “Expiration Date”) tenders could have been made pursuant to such tender offer (as it may be amended) (the last time at which such tenders could have been made on the Expiration Date is hereinafter
sometimes called the “Expiration Time”), the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the close of business on the
Expiration Date by a fraction of which the numerator shall be the sum of (A) the fair market value of the aggregate consideration (the fair market value as determined in good faith by the Board of Directors, whose determination shall be
conclusive evidence of such fair market value and which shall be evidenced by an Officers’ Certificate delivered to the Trustee) payable to shareholders based on the acceptance (up to any maximum specified in the terms of the tender offer) of
all shares validly tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”) and (B) the product of the number of shares of Common
Stock outstanding (less any Purchased Shares and excluding any shares held in the treasury of the Company) at the Expiration Time and the Closing Price per share of Common Stock on the Trading Day next succeeding the Expiration Date and the
denominator of which shall be the product of the number of shares of Common Stock outstanding (including Purchased Shares but excluding any shares held in the treasury of the Company) at the Expiration Time multiplied by the Closing Price per share
of the Common Stock on the Trading Day next succeeding the Expiration Date, such increase to become effective immediately prior to the opening of business on the day following the Expiration Date. In the event that the Company is obligated to
purchase shares pursuant to any such tender offer, but the Company is permanently prevented by applicable law from effecting any or all such purchases or any or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the
Conversion Rate which would 

  

 78 

 
have been in effect based upon the number of shares actually purchased, if any. If the application of this clause (7) of Section 15.06(a) to any
tender offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer under this clause (7). 
 (8) For purposes of this Section 15.06, the term “tender offer” shall mean and include both tender offers and exchange offers, all references to “purchases” of shares in tender offers
(and all similar references) shall mean and include both the purchase of shares in tender offers and the acquisition of shares pursuant to exchange offers, and all references to “tendered shares” (and all similar references) shall
mean and include shares tendered in both tender offers and exchange offers. 
 (9) For purposes of any computation under this
Section 15.06, “Current Market Price” shall mean the average of the daily Closing Prices per share of Common Stock for each of the ten (10) consecutive Trading Days immediately prior to the date in question;
provided, however, that if 
 (A) the “ex” date (as hereinafter defined) for any event (other than
the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Rate pursuant to Section 15.06(a) (1), (2), (3), (4), (5), (6) or (7) occurs during such ten (10) consecutive Trading Days,
the Closing Price for each Trading Day prior to the “ex” date for such other event shall be adjusted by dividing such Closing Price by the same fraction by which the Conversion Rate is so required to be adjusted as a result of such other
event; 
 (B) the “ex” date for any event (other than the issuance or distribution requiring such computation) that
requires an adjustment to the Conversion Rate pursuant to Section 15.06(a) (1), (2), (3), (4), (5), (6) or (7) occurs on or after the “ex” date for the issuance or distribution requiring such computation and prior to the day
in question, the Closing Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Closing Price by the reciprocal of the fraction by which the Conversion Rate is so required to be
adjusted as a result of such other event; and 
 (C) the “ex” date for the issuance or distribution requiring such
computation is prior to the day in question, after taking into account any adjustment required pursuant to the immediately preceding clause (A) or (B) of this Section 15.06(a)(9), the Closing Price for each Trading Day on or after
such “ex” date shall be adjusted by adding thereto the amount of any cash and the fair market value (as determined in good faith by the Board of Directors in a manner consistent with any determination of such value for purposes of
Section 15.06(a)(4) or (7), whose determination shall be conclusive and set forth in a Board Resolution) of the evidences of indebtedness, shares of capital stock or assets being distributed applicable to one share of Common Stock as of the
close of business on the day before such “ex” date. 
 For purposes of any computation under Section 15.06(a)(7), if the “ex” date
for any event (other than the tender offer that is the subject of the adjustment pursuant to Section 15.06(a)(7)) that requires an adjustment to the Conversion Rate pursuant to Section 15.06(a)(1), (2), (3), (4), (5) or
(6) occurs on the date of the Expiration Time for the tender or exchange offer requiring such computation or on the Trading Day next following the Expiration Time, the Closing Price for 

  

 79 

 
each Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Closing Price by the reciprocal of the fraction
by which the Conversion Rate is so required to be adjusted as a result of such other event. For purposes of this Section 15.06(a)(9) the term “ex” date, when used: 
 (A) with respect to any issuance or distribution, means the first date on which the Common Stock trades regular way on the relevant
exchange or in the relevant market from which the Closing Price was obtained without the right to receive such issuance or distribution; 
 (B) with respect to any subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades regular way on such exchange or in such market after the time at which such
subdivision or combination becomes effective, and 
 (C) with respect to any tender or exchange offer, means the first date
on which the Common Stock trades regular way on such exchange or in such market after the Expiration Time of such offer. 
 Notwithstanding
the foregoing, whenever successive adjustments to the Conversion Rate are called for pursuant to this Section 15.06, such adjustments shall be made to the Current Market Price as may be necessary or appropriate to effectuate the intent of this
Section 15.06 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
 (b) In
any case in which this Section 15.06 shall require that an adjustment be made following a record date, a Determination Date or Expiration Date, as the case may be, established for the purposes specified in this Section 15.06, the Company
may elect to defer (but only until five (5) Business Days following the filing by the Company with the Trustee of the certificate described in Section 15.09) issuing to any Debentureholder converted after such record date, Determination
Date or Expiration Date the shares of Common Stock and other Capital Stock of the Company issuable upon such conversion over and above the shares of Common Stock and other Capital Stock of the Company (or other cash, property or securities, as
applicable) issuable upon such conversion only on the basis of the Conversion Rate prior to adjustment; and, in lieu of any cash, property or securities the issuance of which is so deferred, the Company shall issue or cause its transfer agents to
issue due bills or other appropriate evidence prepared by the Company of the right to receive such cash, property or securities. If any distribution in respect of which an adjustment to the Conversion Rate is required to be made as of the record
date, Determination Date or Expiration Date therefore is not thereafter made or paid by the Company for any reason, the Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect if such record date had not been fixed
or such record date, Determination Date or Expiration Date had not occurred. 
 (c) For purposes of this Section 15.06,
“record date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock
(or other applicable security) is exchanged or converted into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to receive such cash, 

  

 80 

 
security or other property (whether or not such date is fixed by the Board of Directors or by statute, contract or otherwise). 
 (d) If one or more event occurs requiring an adjustment be made to the Conversion Rate for a particular period, adjustments to the
Conversion Rate shall be determined by the Company’s Board of Directors to reflect the combined impact of such Conversion Rate adjustment events, as set out in this Section 15.06, during such period. 
 (e) [Intentionally Omitted] 
 Section 15.07     No Adjustment. 
 (a) No adjustment in the Conversion Rate shall be
required if Debentureholders may participate in the transactions set forth in Section 15.06 above (to the same extent as if the Debentures had been converted into Common Stock immediately prior to such transactions) without converting the
Debentures held by such Debentureholders. 
 (b) No adjustment in the Conversion Rate shall be required for issuances of
Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for a change in the par value or a change to no par value of the Common Stock. 
 (c) To the extent that the Debentures become convertible into the right to receive cash, no adjustment need be made thereafter as to the
cash. 
 Section 15.08     [Intentionally Omitted] 
 Section 15.09 Notice of Adjustment. Whenever the Conversion Rate or conversion privilege is required to be adjusted pursuant to this Indenture,
the Company shall promptly mail to Debentureholders a notice of the adjustment and file with the Trustee an Officers’ Certificate briefly stating the facts requiring the adjustment and the manner of computing it. Failure to mail such notice or
any defect therein shall not affect the validity of any such adjustment. Unless and until the Trustee shall receive an Officers’ Certificate setting forth an adjustment of the Conversion Rate, the Trustee may assume without inquiry that the
Conversion Rate has not been adjusted and that the last Conversion Rate of which it has knowledge remains in effect. 
 Section
15.10     Notice of Certain Transactions. In the event that there is a dissolution or liquidation of the Company, the Company shall mail to Debentureholders and file with the Trustee a notice stating the proposed effective
date. The Company shall mail such notice at least ten (10) days before such proposed effective date. Failure to mail such notice or any defect therein shall not affect the validity of any transaction referred to in this Section 15.10.

 Section 15.11     Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale. If any of
following events occur (each, a “Business Combination”): 
 (1) any recapitalization, reclassification or
change of the Common Stock, other than changes resulting from a subdivision or a combination; 
  

 81 

 (2) a consolidation, merger or combination involving the Company; 
 (3) a sale, conveyance or lease to another corporation of all or substantially all of the property and assets of the Company, other than
one or more of the Company’s subsidiaries; or 
 (4) any statutory share exchange, 
 in each case as a result of which holders of Common Stock are entitled to receive stock, other securities, other property or assets (including cash or any combination
thereof) with respect to or in exchange for Common Stock, the Company or the successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of
execution of such supplemental indenture if such supplemental indenture is then required to so comply) providing that the Debentureholders then outstanding will be entitled thereafter to convert such Debentures into the kind and amount of shares of
stock, other securities or other property or assets (including cash or any combination thereof) which they would have owned or been entitled to receive upon such Business Combination had such Debentures been converted into Common Stock immediately
prior to such Business Combination, except that such Debentureholders will not receive the Make Whole Premium if such Debentureholder does not convert its Debentures “in connection with” the relevant Fundamental Change. A conversion of the
Debentures by a Debentureholder will be deemed for these purposes to be “in connection with” a Fundamental Change if the notice of such conversion is provided in compliance with Section 15.02(a) to the conversion agent on or
subsequent to the date ten (10) Trading Days prior to the date announced by the Company as the anticipated Fundamental Change Effective Date but before the close of business on the Business Day immediately preceding the related Fundamental
Change Repurchase Date. In the event holders of Common Stock have the opportunity to elect the form of consideration to be received in such Business Combination, the Company shall make adequate provision whereby the Debentureholders shall have a
reasonable opportunity to determine the form of consideration into which all of the Debentures, treated as a single class, shall be convertible from and after the effective date of such Business Combination. Such determination shall be
(i) based on the weighted average of elections made by Debentureholders who participate in such determination, (ii) subject to any limitations to which all of the holders of the Common Stock are subject, such as pro rata reductions
applicable to any portion of the consideration payable in such Business Combination and (iii) conducted in such a manner as to be completed by the date which is the earliest of (a) the deadline for elections to be made by shareholders of
the Company, and (b) two (2) Trading Days prior to the anticipated effective date of the Business Combination. The Company shall provide notice of the opportunity to determine the form of such consideration, as well as notice of the
determination made by Debentureholders (and the weighted average of elections), by posting such notice with DTC and providing a copy of such notice to the Trustee. In the event the effective date of the Business Combination is delayed beyond the
initially anticipated effective date, Debentureholders shall be given the opportunity to make subsequent similar determinations in regard to such delayed effective date. The Company may not become a party to any such transaction unless its terms are
consistent with this Section 15.11. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 15. If, in the case of any such 

  

 82 

 
Business Combination, the stock or other securities and assets receivable thereupon by a holder of shares of Common Stock includes shares of stock or other
securities and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such Business Combination, then such supplemental indenture shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Debentureholders as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the extent practicable the provisions providing for the repurchase rights
set forth in Section 3.06 hereof. Notwithstanding anything contained in this Section, and for the avoidance of doubt, this Section shall not affect the right of a Debentureholder to convert its Debentures into shares of Common Stock prior to
the effective date of the Business Combination. 
 Section 15.12     Trustee’s Disclaimer. 
 (a) The Trustee shall have no duty to determine when an adjustment under this Article 15 should be made, how it should be made or
what such adjustment should be, but may accept as conclusive evidence of that fact or the correctness of any such adjustment, and shall be protected in relying upon, an Officers’ Certificate and Opinion of Counsel, including the Officers’
Certificate with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 15.09. The Trustee makes no representation as to the validity or value of any securities or assets issued upon conversion of
Debentures, and the Trustee shall not be responsible for the Company’s failure to comply with any provisions of this Article 15. 
 (b) The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture executed pursuant to Section 15.11, but may accept as conclusive
evidence of the correctness thereof, and shall be fully protected in relying upon, the Officers’ Certificate and Opinion of Counsel, with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 16.05.

 Section 15.13     Voluntary Increase. The Company from time to time may increase the Conversion Rate, to the
extent permitted by law, by any amount for any period of time if the period is at least twenty (20) days, and the Company provides fifteen (15) days’ prior written notice to any increase in the Conversion Rate to the Trustee and
Debentureholders. The Company may also make such an increase to the Conversion Rate as the Board of Directors determines would avoid or diminish income tax to holders of shares of Common Stock in connection with a dividend or distribution of stock
(or rights to acquire stock) or from any event treated as such for income tax purposes. 
 Notwithstanding the foregoing paragraph, in no
event will the total number of shares of Common Stock issuable upon conversion of a Debenture exceed 89.0471 per $1,000 principal amount, other than on account of proportional adjustment in the same manner as the Conversion Rate as set forth in
clauses (1) through (4) of Section 15.06(a) hereof. 
 Section 15.14     Payment of Cash in Lieu of
Common Stock. 
 (a) In lieu of delivery of some or all of the shares of Common Stock otherwise issuable upon notice of
conversion of any Debentures, Debentureholders surrendering 

  

 83 

 
Debentures for conversion shall receive for each $1,000 principal amount of Debentures surrendered for conversion: (A) cash in an amount equal to the
lesser of (1) $1,000 and (2) the Conversion Value; and (B) if the Conversion Value is greater than $1,000, a number of shares of the Common Stock equal to the sum of the Daily Share Amounts for each of the ten (10) consecutive
Trading Days in the Conversion Reference Period (appropriately adjusted to reflect stock splits, stock dividends, combinations or similar events occurring during the Conversion Reference Period) , subject to the Company’s right to deliver cash
in lieu of all or a portion of such shares as set forth in Section 15.14(b). The Company will deliver such cash and any shares of Common Stock, together with any cash payable for fractional shares, to such Debentureholder in accordance with
Section 15.03. 
 (b) The Company may elect to pay cash to the Debentureholders surrendered for conversion in lieu of all
or a portion of the Common Stock otherwise issuable pursuant to Section 15.14(a). In such event, on any day prior to the first Trading Day of the applicable Conversion Reference Period, the Company shall specify a percentage of the Daily Share
Amount that shall be settled in cash (the “Cash Percentage”) and the amount of cash that the Company shall pay in respect of each Trading Day in the applicable Conversion Reference Period will equal the product of: (1) the Cash
Percentage, (2) the Daily Share Amount for such Trading Day and (3) the Volume Weighted Average Price of the Common Stock for such Trading Day (provided that after the consummation of a Fundamental Change in which the consideration
is comprised entirely of cash, the amount used in this clause (3) shall be the cash price per share received by holders of the Common Stock in such Fundamental Change). The number of shares that the Company shall deliver in respect of each
Trading Day in the applicable Conversion Reference Period will be a percentage of the Daily Share Amount equal to 100% minus the Cash Percentage. Upon making a determination that a percentage of the Daily Share Amount will be settled in cash, the
Company shall promptly disclose such information on its website prior to the first Trading Day of the applicable Conversion Reference Period. If the Company does not specify a Cash Percentage by the start of the applicable Conversion Reference
Period, the Company shall settle 100% of the Daily Share Amount for each Trading Day in the applicable Conversion Reference Period with shares of Common Stock; provided, however, that the Company shall pay cash in lieu of fractional
shares otherwise issuable upon conversion of Debentures. 
 For the purposes of Sections 15.14(a) and (b), in the event that any of
Conversion Value, Daily Share Amounts or Volume Weighted Average Price is not calculable for all portions of the Conversion Reference Period, the Company’s Board of Directors shall in good faith determine the values necessary to calculate the
Conversion Value, Daily Share Amounts and Volume Weighted Average Price, as applicable. 
 ARTICLE 16. 
 MISCELLANEOUS PROVISIONS 
 Section
16.01     Provisions Binding on Company’s Successors and Assigns. All the covenants, stipulations, promises and agreements by the Company contained in this Indenture shall bind its successors and assigns whether so
expressed or not. 
  

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 Section 16.02     Official Acts by Successor Corporation. Any act or
proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the like board, committee or officer of
any Person that shall at the time be the lawful sole successor of the Company. 
 Section 16.03     Addresses for
Notices, Etc. Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Debentureholders on the Company shall be deemed to have been sufficiently given or made, for all
purposes, if given or served by being deposited postage prepaid by registered or certified mail in a post office letter box addressed (until another address is filed by the Company with the Trustee) to Mentor Graphics Corporation, 8005 SW Boeckman
Road, Wilsonville, Oregon 97070-7777 Attention: General Counsel. Any notice, direction, request or demand hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being
deposited, postage prepaid, by registered or certified mail in a post office letter box addressed to the Corporate Trust Office, which office is, at the date as of which this Indenture is dated, located at c/o Computershare Trust Company of New
York, Wall Street Plaza, 88 Pine Street, 19th floor, New York, NY 10005 Attn: Wilmington Trust (Mentor Graphics Corporation, 6.25% Convertible Subordinated Debentures due 2026). 
 The Trustee, by notice to the Company, may designate additional or different addresses for subsequent notices or communications. 
 Any notice or communication mailed to a Debentureholders shall be mailed to such Debentureholders by first class mail, postage prepaid, at his address as
it appears on the Debenture register and shall be sufficiently given to such Debentureholders if so mailed within the time prescribed. 
 Failure to mail a notice or communication to a Debentureholders or any defect in it shall not affect its sufficiency with respect to other Debentureholders. If a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it. 
 Section 16.04     Governing Law. This Indenture and each
Debenture shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York, without regard to the conflict of laws provisions thereof.

 Section 16.05     Evidence of Compliance with Conditions Precedent; Certificates to Trustee. Upon any
application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for
in this Indenture relating to the proposed action have been complied with, and, if requested by Trustee, an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 
 Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided
for in this Indenture shall 

  

 85 

 
include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the
nature and scope of the examination or investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, he or she has made such examination or
investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with. 
 Section 16.06     Legal Holidays. In any case in which the date of maturity of
interest on or principal of the Debentures or the Redemption Date of any Debenture will not be a Business Day, then payment of such interest on or principal of the Debentures need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the date of maturity or the Redemption Date, and no interest shall accrue for the period from and after such date. 
 Section 16.07     Trust Indenture Act. This Indenture is hereby made subject to, and shall be governed by, the provisions of
the Trust Indenture Act required to be part of and to govern indentures qualified under the Trust Indenture Act; provided, however, that, unless otherwise required by law, notwithstanding the foregoing, this Indenture and the Debentures
issued hereunder shall not be subject to the provisions of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the Trust Indenture Act as now in effect or as hereafter amended or modified; provided further that this
Section 16.07 shall not require this Indenture or the Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act, nor shall it constitute any
admission or acknowledgment by any party to the Indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act. If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included in an indenture qualified under the Trust Indenture Act, such required provision shall control. 
 Section 16.08     No Security Interest Created. Nothing in this Indenture or in the Debentures, expressed or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction in which property of the Company or its subsidiaries is located. 
 Section 16.09     Benefits of Indenture. Nothing in this Indenture or in the Debentures, express or implied, shall give to any Person, other than the parties hereto, any paying agent, any
authenticating agent, any Debenture registrar and their successors hereunder, the Debentureholders and the holders of Senior Debt, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 Section 16.10     Table of Contents, Headings, Etc. The table of contents and the titles and headings of the articles and
Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
 Section 16.11     Authenticating Agent. The Trustee may appoint an authenticating agent that shall be authorized to act on its
behalf, and subject to its direction, in the authentication and 

  

 86 

 
delivery of Debentures in connection with the original issuance thereof and transfers and exchanges of Debentures hereunder, including under Sections 2.04,
2.05, 2.06, 2.07, 3.03, 3.05 and 3.06, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to authenticate and deliver Debentures. For all purposes of this
Indenture, the authentication and delivery of Debentures by the authenticating agent shall be deemed to be authentication and delivery of such Debentures “by the Trustee” and a certificate of authentication executed on behalf of the
Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Debentures for the Trustee’s certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as trustee
hereunder pursuant to Section 8.09. 
 Any corporation into which any authenticating agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, consolidation or conversion to which any authenticating agent shall be a party, or any corporation succeeding to the corporate trust business of any authenticating agent, shall be
the successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 16.11, without the execution or filing of any paper or any further act on the part of the parties hereto or the
authenticating agent or such successor corporation. 
 Any authenticating agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the duties and
obligations of the former authenticating agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor authenticating agent to the Company and shall
mail notice of such appointment of a successor authenticating agent to all Debentureholders as the names and addresses of such Debentureholders appear on the Debenture register. 
 The Company agrees to pay to the authenticating agent from time to time such reasonable compensation for its services as shall be agreed upon in writing
between the Company and the authenticating agent. 
 The provisions of Sections 8.02, 8.03, 8.04, 9.03 and this Section 16.11 shall be
applicable to any authenticating agent. 
 Section 16.12     Execution in Counterparts. This Indenture may be
executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. 
 Section 16.13     Severability. In case any provision in this Indenture or in the Debentures shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

 87 

 Wilmington Trust Company hereby accepts the trusts in this Indenture declared and provided, upon the
terms and conditions herein above set forth. 
  

 88 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed. 
  

			
	 MENTOR GRAPHICS CORPORATION,
 as Issuer

		
	 By:
	 	 /s/ Dean M. Freed

	 Name:
	 	 Dean M. Freed

	 Title:
	 	 Vice President and General Counsel

	
	 WILMINGTON TRUST COMPANY,
 as Trustee

		
	 By:
	 	 /s/ Geoffrey J. Lewis

	 Name:
	 	 Geoffrey J. Lewis

	 Title:
	 	 Financial Services Officer

 EXHIBIT A 
 For Global Debenture only: UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY”, WHICH TERM INCLUDES ANY SUCCESSOR
DEPOSITARY FOR THE CERTIFICATES) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 For Restricted Securities only: THIS
DEBENTURE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS DEBENTURE, THE
SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. EACH PURCHASER OF THIS DEBENTURE IS HEREBY NOTIFIED THAT THE SELLER OF THIS DEBENTURE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A THEREUNDER. 
 THE HOLDER OF THIS DEBENTURE, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH DEBENTURE,
PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH MENTOR GRAPHICS CORPORATION OR ANY AFFILIATE OF MENTOR GRAPHICS CORPORATION WAS
THE OWNER OF THIS DEBENTURE (OR ANY PREDECESSOR OF SUCH DEBENTURE) ONLY (A) TO MENTOR GRAPHICS CORPORATION OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE DEBENTURES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO MENTOR GRAPHICS CORPORATION’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS DEBENTURE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
  

 A-1 

 MENTOR GRAPHICS CORPORATION 
 6.25% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2026 
  

			
	 No.:
                    
	 	CUSIP:                     
		 	$                        

 Mentor Graphics Corporation, a corporation duly organized and validly existing under the laws of
the State of Oregon (herein called the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to ___________, or registered
assigns, the principal sum of ___________ dollars ($_________ ) on March 1, 2026, at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of
America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on March 1 and September 1 of each year (each an “Interest Payment Date”), commencing
September 1, 2006, on said principal sum at said office or agency, in like coin or currency, at the rate of 6.25% per annum, from the most recent date to which interest has been paid or duly provided for, or if no interest has been paid or
duly provided for, from March 3, 2006, until payment of said principal sum has been made or duly provided for. Except as otherwise provided in the Indenture, the interest payable on the Debenture pursuant to the Indenture on any March 1 or
September 1 will be paid to the Person entitled thereto as it appears in the Debenture register at the close of business on the record date, which shall be the February 15 or August 15 (whether or not a Business Day) immediately
preceding such March 1 or September 1, as provided in the Indenture; provided, however, that any such interest not punctually paid or duly provided for shall be payable as provided in the Indenture. Interest may, at the option of
the Company, be paid by check mailed to the registered address of such Person (provided that the holder of Debentures with an aggregate principal amount in excess of $5,000,000 shall, at the written election of such Debentureholder, be paid
by wire transfer of immediately available funds); provided, however, that payments to the Depositary will be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. 
 Reference is made to the further provisions of this Debenture set forth on the reverse hereof, including, without limitation, provisions subordinating
the payment of principal of, interest on (including Liquidated Damages (as defined in the Indenture), if any) or any other amounts due on the Debentures to the prior payment in full of all Senior Debt, as defined in the Indenture to the extent and
in the manner set forth in the Indenture, and provisions giving the holder of this Debenture the right to convert this Debenture into Common Stock of the Company on the terms and subject to the limitations referred to on the reverse hereof and as
more fully specified in the Indenture. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Debenture shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed by the laws of the State of New York, without regard to principles of
conflicts of laws. 
  

 A-2 

 This Debenture shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized authenticating agent under the Indenture. 
 [This space left blank intentionally] 
  

 A-3 

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

			
	 MENTOR GRAPHICS CORPORATION

		
	 By:
	 	  
	 Name:
	 	
	 Title:
	 	

			
		
	 Attest:
	 	  
	 Name:
	 	
	 Title:
	 	

 Date:
                                        
     
  

 A-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Debentures described in the within-named Indenture. 
 WILMINGTON TRUST COMPANY, as Trustee 
  

			
		
	 By:
	 	  
	 Name:
	 	 Geoffrey J. Lewis

	 Title:
	 	 Financial Services Officer

		
	 By:
	 	  
	 As Authenticating Agent

	 (if different from Trustee)

  

 A-5 

 FORM OF REVERSE OF DEBENTURE 
 MENTOR GRAPHICS CORPORATION 
 6.25% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2026

 This Debenture is one of a duly authorized issue of Debentures of the Company, designated as its 6.25% Convertible Subordinated
Debentures due 2026 (herein called the “Debentures”), limited to the aggregate principal amount of $175,000,000 (or $200,000,000 if the option set forth in Section 2 of the Purchase Agreement dated as of
February 27, 2006 (as amended from time to time by the parties thereto) by and between the Company and the Initial Purchasers is exercised in full) all issued or to be issued under and pursuant to an Indenture dated as of March 3, 2006
(herein called the “Indenture”), between the Company and Wilmington Trust Company, as trustee (herein called the “Trustee”), to which Indenture and all indentures supplemental thereto reference is
hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Debentureholders. 
 In case an Event of Default (as defined in the Indenture) shall have occurred and be continuing, the principal of, premium, if any, and accrued interest (including Liquidated Damages, if any) on all Debentures may be
declared due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 
 The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the Debentures at the time outstanding, to execute supplemental indentures adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or of modifying in any manner the rights of the Debentureholders. Notwithstanding the foregoing, without the written consent of each
Debentureholder affected, an amendment, supplement or waiver, including a waiver pursuant to Section 7.07 of the Indenture, may not: (i) change the fixed maturity of any Debenture; (ii) reduce the rate or change the time of payment of
interest or Liquidated Damages on any Debenture; (iii) reduce the principal amount of any Debenture or premium, if any, thereon, or reduce any amount payable on redemption or repurchase thereof in accordance with Article 3 of the Indenture or
reduce the amount of Liquidated Damages payable thereon; (iv) impair the right to institute suit for the enforcement of any payment on or with respect to, or the conversion of any Debenture; (v) make the principal of any Debenture or
interest or premium, if any, or Liquidated Damages on any Debenture payable in any coin or currency other than that provided in the Debentures; (vi) modify the provisions of the Indenture with respect to the redemption of the Debentures in a
manner adverse to the Debentureholders; (vii) except as otherwise permitted or contemplated by Article 12 of the Indenture, change the obligation of the Company to repurchase any Debenture upon the happening of a Fundamental Change in a manner
adverse to the Debentureholders; (viii) impair or adversely affect the right to convert the Debentures subject to the terms set forth in the Indenture; (ix) alter the manner of calculation or rate of accrual of Liquidated Damages on any
Debenture or extend the time for payment of such amount; or (x) reduce the percentage of Debentures, the Debentureholders of which are required to consent to any modification, amendment or supplemental indenture or to waive any past default, or
the percentage of Debentures, the Debentureholders of which are required for any other waiver under the Indenture. Subject to the provisions of the Indenture, the holders of a majority in aggregate 

  

 A-6 

 
principal amount of the Debentures at the time outstanding may, on behalf of the holders of all of the Debentures, waive any past default or Event of Default
under the Indenture and its consequences except a default in the payment of interest (including Liquidated Damages, if any) or premium, if any, on, or the principal of, the Debentures, or a failure by the Company to convert any Debentures into
Common Stock, or a default in the payment of the redemption price pursuant to Article 3 of the Indenture, or a default in respect of a covenant or provisions of the Indenture which under Article 11 of the Indenture cannot be modified or amended
without the consent of the holders of each or all Debentures then outstanding or affected thereby. Any such consent or waiver by the holder of this Debenture (unless revoked as provided in the Indenture) shall be conclusive and binding upon such
holder and upon all future holders and owners of this Debenture and any Debentures which may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Debenture or such other Debentures.

 The payment of the principal of, conversion payment on, interest on (including Liquidated Damages, if any) or any other amounts due on
this Debenture is, to the extent and in the manner provided in the Indenture, subordinated and subject in right of payment to the prior payment in full of all Senior Debt, whether outstanding at the date of the Indenture or thereafter incurred, and
this Debenture is issued subject to the provisions of the Indenture with respect to such subordination. Each holder of this Debenture, by accepting the same, agrees to and shall be bound by such provisions and authorizes the Trustee on its behalf to
take such action as may be necessary or appropriate to effectuate the subordination so provided and appoints the Trustee his attorney-in-fact for such purpose. 
 Nothing contained in the Debentures or in the Indenture is intended to or shall impair, as among the Company, its creditors other than the holders of Senior Debt, and the Debentureholders, the obligation of the
Company, which is absolute and unconditional, to pay to the Debentureholders the principal of, premium, if any, and interest (including Liquidated Damages, if any) on the Debentures 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 Debentureholders and creditors of the Company other than the holders of the Senior Debt, nor shall anything herein or therein prevent the Trustee or the holder of any
Debenture from exercising all remedies otherwise permitted by applicable law upon default under the Indenture, subject to the rights, if any, under Article 4 of the Indenture of the holders of Senior Debt in respect of cash, property or securities
of the Company received upon the exercise of any such remedy. 
 Interest on the Debentures shall be calculated using a 360-day year composed
of twelve 30-day months. 
 The Debentures are issuable in fully registered form, without coupons, in denominations of $1,000 principal
amount and any integral multiple of $1,000. At the office or agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of
a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Debentures, Debentures may be exchanged for a like aggregate principal amount of Debentures
of any other authorized denominations. 
  

 A-7 

 The Debentures will not be redeemable at the option of the Company prior to March 6, 2011. At any
time and from time to time on or after March 6, 2011, and prior to maturity, the Debentures may be redeemed at the option of the Company, in whole or in part, upon mailing a notice of such redemption not less than 20 days but not more than 60
days before the Redemption Date to the Debentureholders at their last registered addresses, all as provided in the Indenture, at the following optional redemption prices (expressed as percentages of the principal amount) together with accrued and
unpaid interest if any (including Liquidated Damages, if any) to, but not including, the Redemption Date: 
  

				
	 Period
	  	Redemption
Price	 
	 Beginning on March 6, 2011 and ending on February 29, 2012
	  	101.79	%
	 Beginning on March 1, 2012 and ending on February 28, 2013
	  	100.89	%

 and 100% on March 1, 2013, and at any time thereafter; provided, however, that, with the sole of
exception of March 6, 2011, if the Redemption Date is on a March 1 or September 1, then the interest payable on such date shall be paid to the holder of record on the preceding February 15 or August 15, respectively.
Debentures or portions of Debentures called for redemption will be convertible until the close of business on the Business Day prior to the Redemption Date. 
 The Debentures are not subject to redemption through the operation of any sinking fund. 
 On March 1,
2013, March 1, 2016, or March 1, 2021, the Debentureholders shall have the right to require the Company to repurchase at such holder’s option all of such holders’ Debentures, or any portion thereof that is an integral multiple of
$1,000 principal amount, on the Purchase Date (as defined in the Indenture) in cash at a price equal to 100% of the principal amount thereof, together with accrued interest (including Liquidated Damages, if any) to, but not including, the Purchase
Date. The Company shall mail to all holders of record of the Debentures a notice of an upcoming Purchase Date not less than 20 Business Days prior to the Purchase Date. For a Debenture to be so repurchased at the option of the Debentureholder, the
Debentureholder must deliver to the Paying agent the Purchase Notice (as defined in the Indenture) at any time from the opening of business on the date that is 20 Business Days prior to the Purchase Date until the close of business on the Purchase
Date. Debentureholders may withdraw a Purchase Notice by delivering a written notice of withdrawal to the paying agent in accordance with the terms of the Indenture at any time prior to the close of business on the Purchase Date. The repurchase of
Debentures pursuant to this paragraph is subject to the further conditions set forth in the Indenture. 
 At the option of the
Debentureholder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase for cash, subject to certain exceptions described in the Indenture, all or any part specified by the Debentureholder (so long as
the principal amount of such part is $1,000 or an integral multiple of $1,000) of the Debentures held by such Debentureholder on a date specified by the Company that is not less than 30 nor more than 45 days after the date of the Company Fundamental
Change Notice, at a 

  

 A-8 

 
purchase price equal to 100% of the principal amount thereof together with accrued and unpaid interest, if any, to, but not including, the Fundamental Change
Repurchase Date. The Debentureholder shall have the right to withdraw any Fundamental Change Repurchase Notice (in whole or in a portion thereof that is $1,000 or an integral multiple of $1,000) at any time prior to the close of business on the
Business Day next preceding the Fundamental Change Repurchase Date by delivering a written notice of withdrawal to the paying agent in accordance with the terms of the Indenture. 
 Subject to and upon compliance with the provisions of the Indenture and upon the occurrence of the events specified in the Indenture, a Debentureholder
may surrender for conversion any Debenture that is $1,000 principal amount or integral multiples thereof. In lieu of receiving shares of the Common Stock, a Debentureholder will receive, for each $1,000 principal amount of Debentures surrendered for
conversion: 
  

	 	•	 	cash in an amount equal to the lesser of (1) $1,000 and (2) the Conversion Value; and 

  

	 	•	 	if the Conversion Value is greater than $1,000, a number of shares of the Common Stock, equal to the sum of the Daily Share Amounts for each of the ten consecutive Trading Days in
the Conversion Reference Period (appropriately adjusted to reflect stock splits, stock dividends, combinations or similar events occurring during the Conversion Reference Period), subject to the Company’s right to deliver cash in lieu of all or
a portion of such shares as described in the Indenture. 

 Any Debentures called for redemption, unless surrendered for
conversion by the holders thereof on or before the close of business on the Business Day preceding the Redemption Date, may be deemed to be redeemed from the holders of such Debentures for an amount equal to the applicable redemption price, together
with accrued but unpaid interest (including Liquidated Damages, if any) to (but not including) the Redemption Date, by one or more investment banks or other purchasers who may agree with the Company (i) to purchase such Debentures from the
holders thereof and convert them into shares of the Company’s Common Stock and (ii) to make payment for such Debentures as aforesaid to the Trustee in trust for the holders. 
 Upon due presentment for registration of transfer of this Debenture at the office or agency of the Company maintained for that purpose in accordance with
the terms of the Indenture, a new Debenture or Debentures of authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange thereof; subject to the limitations provided in the Indenture, without charge
except for any tax, assessment or other governmental charge imposed in connection therewith. 
 The Company, the Trustee, any authenticating
agent, any paying agent, any conversion agent and any Debenture registrar may deem and treat the registered holder hereof as the absolute owner of this Debenture (whether or not this Debenture shall be overdue and notwithstanding any notation of
ownership or other writing hereon made by anyone other than the Company or any Debenture registrar) for the purpose of receiving payment hereof, or on account hereof, for the conversion hereof and for all other purposes, and neither the Company

  

 A-9 

 
nor the Trustee nor any other authenticating agent nor any paying agent nor any conversion agent nor any Debenture registrar shall be affected by any notice
to the contrary. All such payments so made to any holder for the time being, or upon his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon this Debenture.

 No recourse for the payment of the principal of or any premium or interest on this Debenture, or for any claim based hereon or otherwise
in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any supplemental indenture or in any Debenture, or because of the creation of any indebtedness represented thereby, shall be
had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation,
whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by acceptance hereof and as part of the consideration for the issue hereof, expressly waived and
released. 
 This Debenture shall be deemed to be a contract made under the laws of New York, and for all purposes shall be construed in
accordance with the laws of New York, without regard to principles of conflicts of laws. 
 Terms used in this Debenture and defined in the
Indenture are used herein as therein defined. 
  

 A-10 

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

			
	TEN COM - as tenants in common	  	UNIF GIFT MIN ACT - ____________
		  	 Custodian

		
	TEN ENT - as tenant by the entireties	  	 (Cust)                    (Minor)

		
	JT TEN - as joint tenants with right under	  	
	 Uniform Gifts to Minors Act of survivorship and not as under Uniform Gifts to(state) Minors Act tenants in common
	  	
 ___________________

	  	                                 (state)

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

 A-11 

 CONVERSION NOTICE 
 TO: MENTOR GRAPHICS CORPORATION 
 The undersigned registered owner of this Debenture hereby irrevocably exercises the option to convert this Debenture, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, into cash and, if applicable,
shares of Common Stock of Mentor Graphics Corporation in accordance with the terms of the Indenture referred to in this Debenture, and directs that the shares issuable and deliverable upon such conversion, if any, together with the check in payment
for the Conversion Value and fractional shares and any Debentures representing any unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless a different name has been indicated below. If shares or any
portion of this Debenture not converted are to be issued in the name of a person other than the undersigned, the undersigned will provide the appropriate information below and pay all transfer taxes payable with respect thereto. Any amount required
to be paid by the undersigned on account of interest accompanies this Debenture. 
 Dated: ______________________ 
  

	
	  
	
	  
	 Signature(s)

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

	
	   
	 Signature Guarantee

  

 A-12 

 Fill in the registration of shares of Common Stock if to be issued, and Debentures if to be delivered,
other than to and in the name of the registered holder: 
  

	
	  
	(Name)
	
	  
	(Street Address)
	
	  
	(City, State and Zip Code)

 Please print name and address 
 Principal amount to be converted (if less than all): $____________________ 
  

	Social	Security or Other Taxpayer Identification Number: _______________ 

  

 A-13 

 OPTION TO ELECT REPAYMENT 
 UPON A FUNDAMENTAL CHANGE 
 TO: MENTOR GRAPHICS CORPORATION

 The undersigned registered owner of this Debenture hereby irrevocably acknowledges receipt of a notice from Mentor Graphics Corporation
(the “Company”) as to the occurrence of a Fundamental Change with respect to the Company and requests and instructs the Company to repay the entire principal amount of this Debenture, or the portion thereof (which is $1,000 or an
integral multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Debenture at the price of 100% of such entire principal amount or portion thereof, together with accrued interest to, but not including,
such repayment date, to the registered holder hereof. 
 Dated: ______________________ 
  

	
	  
	
	  
	 Signature(s)

	
	NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Debenture in every particular without alteration or enlargement or any change
whatever.

  

					
		 	Principal amount to be repaid (if less than all):
		
		 	$ ______________________________
		
		 	 Social Security or Other Tax Identification Number:

		
		 	_______________________________
		 	

  

 A-14 

 OPTION TO ELECT REPAYMENT 
 UPON A SPECIFIC DATE 
 TO: MENTOR GRAPHICS CORPORATION

 Pursuant to its rights under Section 3.05 of the Indenture referred to in this Debenture, the undersigned registered owner of this
Debenture hereby requests and instructs Mentor Graphics Corporation (the “Company”) to repay the entire principal amount of this Debenture, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated,
in accordance with the terms of the Indenture at the price of 100% of such entire principal amount or portion thereof, together with accrued interest to, but not including, such repayment date, to the registered holder hereof. 
 Dated: ______________________ 
  

	
	  
	
	  
	 Signature(s)

	
	NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Debenture in every particular without alteration or enlargement or any change
whatever.

  

					
		 	 Principal amount to be repaid (if less than all):

		
		 	$ _____________________________
		
		 	 Social Security or Other Tax Identification Number:

		
		 	_______________________________
		 	

  

 A-15 

 ASSIGNMENT 
 For value received __________ hereby sell(s) assign(s) and transfer(s) unto ________________ (Please insert social security or other Taxpayer Identification Number of assignee) the within Debenture, and hereby
irrevocably constitutes and appoints ____________ attorney to transfer said Debenture on the books of the Company, with full power of substitution in the premises. 
 In connection with any transfer of the Debenture within the United States or to, or for the account of, U.S. persons and within the period prior to the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision) (other than any transfer pursuant to a registration statement that has been declared effective under the Securities Act), the undersigned confirms that such Debenture is being
transferred: 
  

	 	 ̈	To Mentor Graphics Corporation or a subsidiary thereof; or 

  

	 	 ̈	To a “qualified institutional buyer” pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or 

  

	 	 ̈	To an Institutional Accredited Investor pursuant to and in compliance with the Securities Act of 1933, as amended; or 

  

	 	 ̈	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended; 

  

	 	 ̈	Pursuant to a registration statement which has been declared effective under the Securities Act of 1933, as amended, and which continues to be effective at the time of such
transfer; 

 and unless the box below is checked, the undersigned confirms that such Debenture is not being transferred to an
“affiliate” of the Company as defined in Rule 144 under the Securities Act of 1933, as amended (an “Affiliate”). 
  

	 	 ̈	The transferee is an Affiliate of the Company. 

  

 A-16 

 Dated: ______________________ 
  

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

  
 NOTICE: The signature
of the conversion notice, the option to elect repayment upon a Fundamental Change or the assignment must correspond with the name as written upon the face of the Debenture in every particular without alteration or enlargement or any change whatever.

  

 A-17 

 EXHIBIT B 
 Mentor Graphics Corporation 
 8005 SW Boeckman Road 
 Wilsonville, Oregon 97070-7777 
 Attention:
General Counsel 
 Wilmington Trust Company 
 1100 North Market Street 
 Rodney Square North 
 Wilmington, Delaware 19890-0001 
 Attention:
Corporate Trust Administration 
 Ladies and Gentlemen: 
 In connection with our proposed purchase of 6.25% Convertible Subordinated Debentures due 2026 (the “Debentures”) of Mentor Graphics Corporation, an Oregon corporation (the
“Company”) we confirm that: 
 (i) we are an “accredited investor”
within the meaning of Rule 501(a)(1), (2) or (3) under the Securities Act of 1933, as amended (the “Securities Act”), or an entity in which all of the equity owners are accredited investors within the
meaning of Rule 501(a)(1), (2) or (3) under the Securities Act (an “Institutional Accredited Investor”); 
 (ii) (A) any purchase of Debentures by us will be for our own account or for the account of one or more other Institutional Accredited Investors or as fiduciary for the account of one or more trusts, each of which is an
“accredited investor” within the meaning of Rule 501 (a)(7) under the Securities Act and for each of which we exercise sole investment discretion or (B) we are a “bank,” within the meaning of
Section 3(a)(2) of the Securities Act, or a “savings and loan association” or other institution described in Section 3(a)(5)(A) of the Securities Act that is acquiring Debentures as fiduciary for the account
of one or more institutions for which we exercise sole investment discretion; 
 (iii) the event that we purchase any Debentures, we will
acquire Debentures having a minimum purchase price of not less than $100,000 for our own account or for any separate account for which we are acting; 
 (iv) we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of purchasing Debentures; and 
 (v) we are not acquiring Debentures with a view to distribution thereof or with any present intention of offering or selling Debentures or the Common
Stock of the Company issuable upon conversion thereof, except as permitted below; provided that the disposition of our property and property of any accounts for which we are acting as fiduciary shall remain at all times within our control.

 We understand that the Debentures are being offered in a transaction not involving any public offering within the United States within the
meaning of the Securities Act and that the 

  

 B-1 

 
Debentures and the Common Stock of the Company issuable upon conversion thereof have not been registered under the Securities Act, and we agree, on our own
behalf and on behalf of each account for which we acquire any Debentures, that if in the future we decide to resell or otherwise transfer such Debentures or the Common Stock of the Company issuable upon conversion thereof, such Debentures or Common
Stock of the Company may be resold or otherwise transferred only (i) to the Company or any subsidiary thereof, (ii) a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) in
compliance with Rule 144A under the Securities Act, (iii) pursuant to exemption from registration provided by Rule 144 under the Securities Act; (iv) to an institutional investor that is an “accredited investor” within the
meaning of rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act pursuant to an exemption from registration under the Securities Act (if available), or (v) pursuant to a registration statement that has been declared
effective under the Securities Act and which continues to be effective at the time of such transfer, and in each case, in accordance with any applicable securities law of any state of the United States and in accordance with the legends set forth on
the Debentures or the Common Stock of the Company issuable upon conversion thereof. We further agree to provide any person purchasing any of the Debentures or the Common Stock of the Company issuable upon conversion thereof (other than pursuant to
clause (iii) or (v) above) from us a notice advising such purchaser that resales of such securities are restricted as stated herein. We understand that the Trustee and transfer agent for the Debentures and the Common Stock of the Company
will not be required to accept for registration of transfer any Debentures or any Common Stock of the Company issued upon conversion of the Debentures, except upon presentation of evidence satisfactory to the Company that the foregoing restrictions
on transfer have been complied with. We further understand that any Debentures and any Common Stock of the Company issued upon conversion of the Debentures will be in the form of definitive physical certificates and that such certificates will bear
a legend reflecting the substance of this paragraph other than certificates transferred pursuant to (iii) or (v) above. 
 The
Company and the Trustee and their respective counsel are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby. 
  

 B-2 

 THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK. 
  

			
	(Name of Purchaser)
		
	 By:
	 	  
	 Name: 
	 	  
	 Title: 
	 	  
		
	 Address:
	 	  
	  

  

 B-3Registration Rights Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 $200,000,000 AGGREGATE PRINCIPAL AMOUNT 
 MENTOR GRAPHICS CORPORATION 
 6.25%
CONVERTIBLE SUBORDINATED DEBENTURES DUE 2026 
 Resale Registration Rights Agreement 
 Dated as of March 3, 2006 

 RESALE REGISTRATION RIGHTS AGREEMENT, dated as of March 3, 2006 among Mentor Graphics Corporation,
an Oregon corporation (together with any successor entity, herein referred to as the “Company”), and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Banc of America Securities LLC, and UBS Securities LLC as
representatives of the several initial purchasers (the “Initial Purchasers”) under the Purchase Agreement (as defined below). 
 Pursuant to the Purchase Agreement, dated as of February 27, 2006, among the Company and the Initial Purchasers (the “Purchase Agreement”), the Initial Purchasers have agreed to purchase from the Company $175,000,000
in aggregate principal amount of 6.25% Convertible Subordinated Debentures Due 2026 (up to $200,000,000 in aggregate principal amount if the Initial Purchasers exercise in full their overallotment option to purchase additional debentures) (the
“Debentures”). The Debentures will be convertible into fully paid, nonassessable shares of common stock, no par value per share, of the Company together with the rights (the “Rights”) evidenced by such common stock
to the extent provided in the Rights Agreement, dated as of February 10, 1999, between the Company and American Stock, Transfer & Trust Co. (collectively, the “Common Stock”). The Debentures will be convertible on the
terms, and subject to the conditions, set forth in the Indenture (as defined herein). To induce the Initial Purchasers to purchase the Debentures, the Company has agreed to provide the registration rights set forth in this Agreement pursuant to
Section 5(g) of the Purchase Agreement. 
 The parties hereby agree as follows: 
 1. Definitions. Capitalized terms used in this Agreement without definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following capitalized terms shall have the following meanings: 
 “Affiliate” of any specified person means any other person which, directly or indirectly, is in control of, is controlled by or is under common control with, such specified person. For purposes of this definition, control
of a person means the power, direct or indirect, to direct or cause the direction of the management and policies of such person whether by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing. 
 “Agreement”: This Resale Registration Rights Agreement. 
 “Amendment Effectiveness Deadline Date” has the meaning set forth in Section 2(e) hereof. 
 “Blue Sky Application”: As defined in Section 6(a)(i) hereof. 
 “Business Day”: The definition of “Business Day” in the Indenture. 

 “Commission”: Securities and Exchange Commission. 
 “Common Stock”: As defined in the preamble hereto. 
 “Company”: As defined in the preamble hereto. 
 “EDGAR”: Electronic Data
Gathering and Retrieval System. 
 “Effectiveness Period”: As defined in Section 2(a)(iii) hereof. 
 “Effectiveness Target Date”: As defined in Section 2(a)(ii) hereof. 
 “Exchange Act”: Securities Exchange Act of 1934, as amended. 
 “Holder”: A Person who owns, beneficially or otherwise, Transfer Restricted Securities. 
 “Indemnified Holder”: As defined in Section 6(a) hereof. 
 “Indenture”: The Indenture, dated as of March 3, 2006 between the Company and Wilmington Trust Company, as trustee (the
“Trustee”), pursuant to which the Debentures are to be issued, as such Indenture is amended, modified or supplemented from time to time in accordance with the terms thereof. 
 “Initial Purchasers”: As defined in the preamble hereto. 
 “Liquidated Damages”: As defined in Section 3(a) hereof. 
 “Liquidated Damages
Payment Date”: Each March 1 and September 1. 
 “Majority of Holders”: Holders holding over 50% of the
aggregate principal amount of Debentures outstanding; provided that, for the purpose of this definition, a holder of shares of Common Stock which constitute Transfer Restricted Securities and issued upon conversion of the Debentures shall be deemed
to hold an aggregate principal amount of Debentures (in addition to the principal amount of Debentures held by such holder) equal to the product of (x) the number of such shares of Common Stock held by such holder and (y) the conversion
rate in effect at the time of such conversion as determined in accordance with the Indenture. 
 “NASD”: National
Association of Securities Dealers, Inc. 
 “Debentures”: As defined in the preamble hereto. 
 “Notice and Questionnaire” means a written notice executed by the respective Holder and delivered to the Company containing
substantially the information called for by the Selling Securityholder Notice and Questionnaire 

 
attached as Annex A to the Offering Memorandum of the Company issued February 27, 2006 relating to the Debentures. 
 “Notice Holder” means, on any date, any Holder that has delivered a Notice and Questionnaire to the Company on such date. 
 “Person”: An individual, partnership, corporation, company, unincorporated organization, trust, joint venture or a government or agency
or political subdivision thereof. 
 “Prospectus”: The prospectus included in a Shelf Registration Statement, as amended or
supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such prospectus. 
 “Purchase Agreement”: As defined in the preamble hereto. 
 “Record Holder”: With respect to any Liquidated Damages Payment Date, each Person who is a Holder on the February 15 or August 15 immediately preceding the relevant Liquidated Damages
Payment Date. 
 “Registration Default”: As defined in Section 3(a) hereof. 
 “Securities Act”: Securities Act of 1933, as amended. 
 “Shelf Filing Deadline”: As defined in Section 2(a)(i) hereof. 
 “Shelf
Registration Statement”: As defined in Section 2(a)(i) hereof. 
 “Subsequent Shelf Registration Statement”
has the meaning set forth in Section 2(c) hereof. 
 “Suspension Notice”: As defined in Section 4(c) hereof.

 “Suspension Period”: As defined in Section 4(b)(i) hereof. 
 “TIA”: Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder, in each case, as in effect
on the date the Indenture is qualified under the TIA. 
 “Transfer Restricted Securities”: Each Debenture and each share of
Common Stock issued upon conversion of Debentures until the earlier of: 
 (i) the date on which such Debenture or such share
of Common Stock issued upon conversion has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement; 

 (ii) the date on which such Debenture or such share of Common Stock issued upon
conversion is transferred in compliance with Rule 144 under the Securities Act or may be sold or transferred by a person who is not an affiliate of the Company pursuant to Rule 144 under the Securities Act (or any other similar provision then in
force) without any volume or manner of sale restrictions thereunder; or 
 (iii) the date on which such Debenture or such
share of Common Stock issued upon conversion ceases to be outstanding (whether as a result of redemption, repurchase and cancellation, conversion or otherwise). 
 “Underwritten Registration”: A registration in which Debentures of the Company are sold to an underwriter for reoffering to the public. 
 Unless the context otherwise requires, the singular includes the plural, and words in the plural include the singular. 
 2. Shelf Registration. 
 (a)
The Company shall: 
 (i) not later than 90 days after the date hereof (the “Shelf Filing Deadline”), cause
to be filed a registration statement pursuant to Rule 415 under the Securities Act (the “Shelf Registration Statement”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Securities held by
Holders that have provided the information required pursuant to the terms of Section 2(b) hereof; 
 (ii) use its
reasonable efforts to cause the Shelf Registration Statement to be declared effective by the Commission not later than 210 days after the date hereof (the “Effectiveness Target Date”); and 
 (iii) subject to Section 4(b)(i) hereof, use its reasonable efforts to keep the Shelf Registration Statement continuously effective,
supplemented and amended as required by the provisions of Section 4(b) hereof to the extent necessary to ensure that (A) it is available for resales by the Holders of Transfer Restricted Securities entitled, subject to Section 2(b),
to the benefit of this Agreement and (B) conforms with the requirements of this Agreement and the Securities Act and the rules and regulations of the Commission promulgated thereunder as announced from time to time, for a period (the
“Effectiveness Period”) until the earliest of: 
 (1) two years following the last date of original issuance
of any of the Debentures; 

 (2) the date when the Holders of Transfer Restricted Securities are able to sell all
such Transfer Restricted Securities immediately without restriction pursuant to the volume limitation provisions of Rule 144 under the Securities Act or any successor rule thereto; or 
 (3) the date when all of the Transfer Restricted Securities are registered under the Shelf Registration Statement and disposed of in
accordance with the Shelf Registration Statement. 
 (b) At the time the Shelf Registration Statement is declared effective,
each Holder that became a Notice Holder on or prior to the date five (5) Business Days prior to such time of effectiveness shall be named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in such a
manner as to permit such Holder to deliver such Prospectus to purchasers of Transfer Restricted Securities in accordance with applicable law. None of the Company’s security holders (other than the Holders of Transfer Restricted Securities)
shall have the right to include any of the Company’s securities in the Shelf Registration Statement. 
 (c) If the Shelf
Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness Period (other than because all Transfer Restricted Securities registered thereunder shall have been
resold pursuant thereto or shall have otherwise ceased to be Transfer Restricted Securities), the Company shall use its reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall
within thirty (30) days of such cessation of effectiveness amend the Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional Shelf
Registration Statement covering all of the securities that as of the date of such filing are Transfer Restricted Securities (a “Subsequent Shelf Registration Statement”). If a Subsequent Shelf Registration Statement is filed, the
Company shall use its reasonable efforts to cause the Subsequent Shelf Registration Statement to become effective as promptly as is practicable after such filing and to keep such Registration Statement (or subsequent Shelf Registration Statement)
continuously effective until the end of the Effectiveness Period. 

 (d) The Company shall supplement and amend the Shelf Registration Statement if required
by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement, if required by the Securities Act or as reasonably requested by the Initial Purchasers or by the Trustee on
behalf of the Holders of the Transfer Restricted Securities covered by such Shelf Registration Statement. 
 (e) Each Holder
agrees that if such Holder wishes to sell Transfer Restricted Securities pursuant to a Shelf Registration Statement and related Prospectus, it will do so only in accordance with this Section 2(e) and Section 4(b). Each Holder wishing to
sell Transfer Restricted Securities pursuant to a Shelf Registration Statement and related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least five (5) Business Days prior to the effectiveness of the Shelf
Registration Statement. From and after the date the Shelf Registration Statement is declared effective, the Company shall, within a reasonably practicable period of time after the date a Notice and Questionnaire is delivered: 
 (i) if required by applicable law, file with the SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if
required by applicable law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so that the Holder delivering such Notice and Questionnaire is
named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of the Transfer Restricted Securities in accordance with applicable
law and, if the Company shall file a post-effective amendment to the Shelf Registration Statement, use its reasonable efforts to cause such post-effective amendment to be declared effective under the Securities Act as promptly as is practicable, but
in any event by the date (the “Amendment Effectiveness Deadline Date”) that is forty-five (45) days after the date such post-effective amendment is filed; and 
 (ii) notify such Holder as promptly as practicable after the effectiveness under the Securities Act of any post-effective amendment filed
pursuant to Section 2(e)(i); 
 provided that if such Notice and Questionnaire is delivered during a Suspension Period, the Company shall so
inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses (i) and (ii) above upon expiration of the Suspension Period in accordance with Section 4(b). 

 
Notwithstanding anything contained herein to the contrary, (i) the Company shall be under no obligation to name any Holder that is not a Notice Holder
as a selling securityholder in any Registration Statement or related Prospectus and (ii) the Amendment Effectiveness Deadline Date shall be extended by up to ten (10) Business Days from the expiration of a Suspension Period (and the
Company shall incur no obligation to pay Liquidated Damages during such extension) if such Suspension Period shall be in effect on the Amendment Effectiveness Deadline Date; and provided further, that after the date of effectiveness of the
Shelf Registration Statement, the Company shall not be obligated to file more than one post-effective amendment or in any 90-day period (measured from the date any previous post-effective amendment has been filed, or in the case of the first
post-effective amendment, the date the first Notice and Questionnaire is delivered to the Company after the date of effectiveness) for the purpose of naming Holders as selling securityholders who were not so named in the Shelf Registration Statement
at the time of effectiveness. 
 3. Liquidated Damages. 
 (a) If: 
 (i)
the Shelf Registration Statement is not filed with the Commission prior to or on the Shelf Filing Deadline; 
 (ii) the Shelf
Registration Statement has not been declared effective by the Commission prior to or on the Effectiveness Target Date; 
 (iii) the Company has failed to perform its obligations set forth in Section 2(e) within the time period required therein; 
 (iv) any post-effective amendment to a Shelf Registration filed pursuant to Section 2(e)(i) has not become effective under the Securities Act on or prior to the Amendment Effectiveness Deadline Date; 

(v) except as provided in Section 4(b)(i) hereof, the Shelf Registration Statement is filed and declared effective but, during the
Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded within five (5) Business Days by a post-effective amendment to the Shelf Registration Statement, a supplement to
the Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that cures such failure and, in the case of a post-effective amendment, is itself declared effective within such five
(5) Business Day period; or 

 (vi) (A) prior to or on the 45th or 60th day, as applicable under the provisions of
Section 4(b), of any Suspension Period, such suspension has not been terminated or (B) Suspension Periods exceed an aggregate of 90 days in any 360 day period, 
 (each such event referred to in foregoing clauses (i) through (v), a “Registration Default”), the Company hereby agrees to pay interest (“Liquidated Damages”) with respect to the
Transfer Restricted Securities that are Debentures from and including the day following the Registration Default to but excluding the earlier of (1) the day on which the Registration Default has been cured and (2) the date the Shelf
Registration Statement is no longer required to be kept effective, accruing at the following rate to each holder of Debentures: (x) with respect to the first 90-day period during which a Registration Default shall have occurred and be
continuing, equal to 0.25% per annum of the aggregate principal amount of the Debentures, and (y) with respect to the period commencing on the 91st day following the day the Registration Default shall have occurred and be continuing, equal
to 0.50% per annum of the aggregate principal amount of the Debentures; provided that in no event shall Liquidated Damages accrue at a rate per year exceeding 0.50% of the aggregate principal amount of the Debentures. 
 (b) All accrued Liquidated Damages shall be paid in arrears to Record Holders by the Company on each Liquidated Damages Payment Date. Upon
the cure of all Registration Defaults relating to any particular Debenture, the accrual of Liquidated Damages with respect to such Debenture will cease. If a holder has converted some or all of its Debentures into Common Stock, the holder will not
be entitled to receive any Liquidated Damages with respect to such Common Stock or the principal amount of the Debenture that have been so converted. In addition, in no event will Liquidated Damages be payable in connection with a Registration
Default relating to a failure to register the Common Stock deliverable upon conversion of the Debentures. For avoidance of doubt, if the Company fails to register both the Debentures and the Common Stock deliverable upon conversion of the
Debentures, then Liquidated Damages will be payable in connection with the Registration Default relating to the failure to register the Debentures. 
 All obligations of the Company set forth in this Section 3 that are outstanding with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all
such obligations with respect to such Transfer Restricted Security shall have been satisfied in full. 
 The Liquidated Damages set forth
above shall be the exclusive monetary remedy available to the Holders of Transfer Restricted Securities that are Debentures for each Registration Default. 

 4. Registration Procedures. 
 (a) In connection with the Shelf Registration Statement, the Company shall comply with all the provisions of Section 4(b) hereof and
shall prepare and file with the Commission a Shelf Registration Statement relating to the registration on any appropriate form under the Securities Act in accordance with Section 2 hereof. 
 (b) In connection with the Shelf Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of
Transfer Restricted Securities, the Company shall: 
 (i) Subject to any notice by the Company in accordance with this
Section 4(b) of the existence of any fact or event of the kind described in Section 4(b)(iii)(D), use its reasonable efforts to keep the Shelf Registration Statement continuously effective during the Effectiveness Period; upon the
occurrence of any event that would cause the Shelf Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted
Securities during the Effectiveness Period, the Company shall file promptly an appropriate amendment to the Shelf Registration Statement, a supplement to the Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14
or 15(d) of the Exchange Act, in the case of clause (A), correcting any such misstatement or omission, and, in the case of either clause (A) or (B), use its reasonable efforts to cause such amendment to be declared effective and the Shelf
Registration Statement and the related Prospectus to become usable for resale of Transfer Restricted Securities during the Effectiveness Period as soon as practicable thereafter. Notwithstanding the foregoing, the Company may suspend the use of the
Prospectus and may elect to suspend the effectiveness of the Shelf Registration Statement by written notice to the Holders for a period not to exceed an aggregate of 60 days in any 90-day period (each such period, a “Suspension
Period”) if: 
 (x) an event occurs and is continuing as a result of which the Shelf Registration Statement, the
Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein would, in the Company’s judgment, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; and 

 (y) the Company determines in good faith that the disclosure of such event at such time
would be seriously detrimental to the Company and its subsidiaries; 
 provided, however, that Suspension Periods shall not exceed an
aggregate of 90 days in any 360-day period. The Company shall not be required to specify in the written notice to the Holders the nature of the event giving rise to the Suspension Period. 
 (ii) Prepare and file with the Commission such amendments and post-effective amendments to the Shelf Registration Statement as may be
necessary to keep the Shelf Registration Statement effective during the Effectiveness Period; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities
Act, and to comply fully with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by the Shelf
Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in the Shelf Registration Statement or supplement to the Prospectus. 
 (iii) Advise the selling Holders promptly and, if requested by such selling Holders, to confirm such advice in writing, except as provided
in clause (D) below: 
 (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed,
and, with respect to the Shelf Registration Statement or any post-effective amendment thereto, when the same has become effective; 
 (B) of any request by the Commission for amendments to the Shelf Registration Statement or amendments or supplements to the Prospectus or for additional information relating thereto; 
 (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration Statement under the
Securities Act or of the suspension by any state securities commission of the qualification of the Transfer Restricted Securities for 

 
offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes; or 
 (D) of the existence of any fact or the happening of any event, during the Effectiveness Period, that makes any statement of a material
fact made in the Shelf Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions to or changes in the Shelf Registration
Statement or the Prospectus in order to make the statements therein not misleading. 
 If at any time the Commission shall issue any stop
order suspending the effectiveness of the Shelf Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted
Securities under state securities or Blue Sky laws, the Company shall use its reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time and will provide to each Holder who is named in the Shelf Registration
Statement prompt notice of the withdrawal of any such order. 
 (iv) Make available at reasonable times for inspection by one
or more representatives of the selling Holders, designated in writing by a Majority of Holders whose Transfer Restricted Securities are included in the Shelf Registration Statement, and any attorney or accountant retained by such selling Holders,
all financial and other records, pertinent corporate documents and properties of the Company as shall be reasonably necessary to enable them to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act, and cause
the Company’s officers, directors, managers and employees to supply all information reasonably requested by any such representative or representatives of the selling Holders, attorney or accountant in connection therewith; provided,
however, that the Company shall have no obligation to deliver information to any selling Holder or representative pursuant to this Section 4(b)(iv) unless such selling Holder or representative shall have executed and delivered a
confidentiality agreement in a form reasonably acceptable to the Company relating to such information. 
 (v) If requested by
any selling Holders, promptly incorporate in the Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if 

 
necessary, such information as such selling Holders may reasonably request to have included therein, including, without limitation, information relating to
the “Plan of Distribution” of the Transfer Restricted Securities. 
 (vi) Furnish to each selling Holder upon
such Holder’s written request, without charge, at least one copy of the Shelf Registration Statement, as first filed with the Commission, and of each amendment thereto (and any documents incorporated by reference therein or exhibits thereto (or
exhibits incorporated in such exhibits by reference) as such Person may request). 
 (vii) Deliver to each selling Holder,
without charge, as many copies of the Prospectus (including each preliminary Prospectus) and any amendment or supplement thereto as such Persons reasonably may request; subject to any notice by the Company in accordance with this Section 4(b)
of the existence of any fact or event of the kind described in Section 4(b)(iii)(D) or 4(b)(i), the Company hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders in connection with
the offering and the sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto. 
 (viii) Before any public offering of Transfer Restricted Securities, cooperate with the selling Holders and their counsel in connection with the registration and qualification of the Transfer Restricted Securities under the securities or
Blue Sky laws of such jurisdictions in the United States as the selling Holders may reasonably request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted
Securities covered by the Shelf Registration Statement; provided, however, that the Company shall not be required (A) to register or qualify as a foreign corporation or a dealer of securities where it is not now so qualified or to take
any action that would subject it to the service of process in any jurisdiction where it is not now so subject or (B) to subject itself to general or unlimited service of process or to taxation in any such jurisdiction if it is not now so
subject. 
 (ix) Cooperate with the selling Holders to facilitate the timely preparation and delivery of certificates
representing Transfer Restricted Securities to be sold and not bearing any restrictive legends (unless required by applicable securities laws); and enable such Transfer Restricted Securities to be in such denominations and registered in such names
as the Holders may 

 
reasonably request at least two (2) Business Days before any sale of Transfer Restricted Securities made by such Holders. 
 (x) Subject to Section 4(b)(i) hereof and the provision in clause (viii) above, use its reasonable efforts to cause the Transfer
Restricted Securities covered by the Shelf Registration Statement to be registered with or approved by such other U.S. governmental agencies or authorities as may be necessary to enable the seller or sellers thereof to consummate the disposition of
such Transfer Restricted Securities. 
 (xi) Subject to Section 4(b)(i) hereof, if any fact or event contemplated by
Section 4(b)(iii)(D) hereof shall exist or have occurred, use its reasonable efforts to prepare a supplement or post-effective amendment to the Shelf Registration Statement or related Prospectus or any document incorporated therein by reference
or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances in which they are made, not misleading. 
 (xii) Provide CUSIP numbers for all Transfer Restricted Securities not later than the effective date of the Shelf Registration Statement and provide the Trustee under the Indenture with certificates for the Debentures that are in a form
eligible for deposit with The Depository Trust Company. 
 (xiii) Cooperate and assist in any filings required to be made with
the NASD and in the performance of any due diligence investigation by any underwriter that is required to be retained in accordance with the rules and regulations of the NASD. 
 (xiv) Subject to Section 4(b)(i) hereof, otherwise use its reasonable efforts to comply with all applicable rules and regulations of
the Commission and all reporting requirements under the rules and regulations of the Exchange Act. 
 (xv) Cause the Indenture
to be qualified under the TIA not later than the effective date of the Shelf Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the holders of Debentures to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the TIA; and execute and use its reasonable efforts to 

 
cause the Trustee thereunder to execute all documents that may be required to effect such changes and all other forms and documents required to be filed with
the Commission to enable such Indenture to be so qualified in a timely manner. 
 (xvi) Cause all Common Stock covered by the
Shelf Registration Statement to be listed or quoted, as the case may be, on each securities exchange or automated quotation system on which Common Stock is then listed or quoted. 
 (xvii) Provide to each Holder upon written request each document filed with the Commission pursuant to the requirements of Section 13
and Section 15 of the Exchange Act after the effective date of the Shelf Registration Statement, unless such document is available through the Commission’s EDGAR system. 
 (c) Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of any notice (a “Suspension
Notice”) from the Company of the existence of any fact of the kind described in Section 4(b)(iii)(D) or 4(b)(i) hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to the Shelf
Registration Statement until: 
 (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by
Section 4(b)(xi) hereof; or 
 (ii) such Holder is advised in writing by the Company that the use of the Prospectus may
be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. 
 If so
directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that
was current at the time of receipt of such Suspension Notice. 
 (d) Each Holder agrees, by acquisition of the Transfer
Restricted Securities, that no Holder shall be entitled to sell any of such Transfer Restricted Securities pursuant to a Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice
and Questionnaire as required pursuant to Section 2(e) hereof (including the information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish
to the Company all information required to be disclosed in order to make the information 

 
previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such
Transfer Restricted Securities as the Company may from time to time reasonably request in writing. Any sale of any Transfer Restricted Securities by any Holder shall constitute a representation and warranty by such Holder that the information
relating to such Holder and its plan of distribution is as set forth in the Prospectus delivered by such Holder in connection with such disposition, that such Prospectus does not as of the time of such sale contain any untrue statement of a material
fact relating to or provided by such Holder or its plan of distribution and that such Prospectus does not as of the time of such sale omit to state any material fact relating to or provided by such Holder or its plan of distribution necessary to
make the statements in such Prospectus, in the light of the circumstances under which they were made, not misleading. 
 5. Registration
Expenses. 
 All expenses incident to the Company’s performance of or compliance with this Agreement shall be borne by the Company
regardless of whether a Shelf Registration Statement becomes effective, including, without limitation: 
 (i) all registration
and filing fees and expenses (including filings made with the NASD); 
 (ii) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; 
 (iii) all expenses of printing (including printing of Prospectuses and
certificates for the Common Stock to be issued upon conversion of the Debentures) and the Company’s expenses for messenger and delivery services and telephone; 
 (iv) all fees and disbursements of counsel to the Company; 
 (v) all application and filing fees in connection with listing (or authorizing for quotation) the Common Stock on a national securities
exchange or automated quotation system pursuant to the requirements hereof; and 
 (vi) all fees and disbursements of
independent certified public accountants of the Company. 
 The Company shall bear its internal expenses (including, without limitation, all
salaries and expenses of their officers and employees performing 

 
legal, accounting or other duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the
Company. 
 6. Indemnification And Contribution. 
 (a) The Company agrees to indemnify and hold harmless each Holder of Transfer Restricted Securities (including each Initial Purchaser),
such Holder’s directors, officers, and employees and each person, if any, who controls any such Holder within the meaning of the Securities Act (each, an “Indemnified Holder”), against any loss, claim, damage, liability or
expense, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to resales of the Transfer Restricted Securities), to which such Indemnified Holder may become subject,
insofar as any such loss, claim, damage, liability or action arises out of, or is based upon: 
 (i) any untrue statement or
alleged untrue statement of a material fact contained in (A) the Shelf Registration Statement as originally filed or in any amendment thereof, in any Prospectus, or in any amendment or supplement thereto or (B) any blue sky application or
other document or any amendment or supplement thereto prepared or executed by the Company (or based upon written information furnished by or on behalf of the Company expressly for use in such blue sky application or other document or amendment on
supplement) filed in any jurisdiction specifically for the purpose of qualifying any or all of the Transfer Restricted Securities under the securities law of any state or other jurisdiction (such application or document being hereinafter called a
“Blue Sky Application”); or 
 (ii) the omission or alleged omission to state therein any material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, 
 and agrees to reimburse each Indemnified Holder promptly upon demand for any legal or other expenses reasonably incurred by such Indemnified Holder in connection with investigating, defending, settling, compromising
or paying any such loss, claim, damage, liability, expense or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability, expense or action arises out of, or is
based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder (or its related Indemnified Holder)
specifically 

 
for use therein. The foregoing indemnity agreement is in addition to any liability which the Company may otherwise have. 
 (b) Each Holder, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, officers and employees and
each person, if any, who controls the Company within the meaning of the Securities Act to the same extent as the foregoing indemnity from the Company to each such Holder, but only with reference to written information relating to such Holder
furnished to the Company by or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement set forth in this Section shall be in addition to any liabilities which any such
Holder may otherwise have. In no event shall any Holder, its directors, officers or any person who controls such Holder be liable or responsible for any amount in excess of the amount by which the net proceeds received by such Holder with respect to
its sale of Transfer Restricted Securities pursuant to a Shelf Registration Statement exceeds the amount of any damages that such Holder, its directors, officers or any person who controls such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. 
 (c) Promptly after receipt by an indemnified party
under this Section 6 of notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 6 except to the extent it has been
materially prejudiced by such failure and, provided, further, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 6. If any
such claim or action is brought against an indemnified party, and it notifies the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly
notified indemnifying party, to assume the defense thereof with counsel satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the
indemnifying party shall not be liable to the indemnified party under this Section 6 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that the indemnified parties shall have the right to employ a single counsel to represent jointly the indemnified parties and their officers, employees and controlling persons who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the indemnified parties against the 

 
indemnifying party under this Section 6 if the indemnified party shall have been advised by legal counsel that there may be one or more legal defenses
available to such indemnified party and their respective officers, employees and controlling persons that are different from or additional to those available to the indemnifying party, and in that event, the fees and expenses of such separate
counsel shall be paid by the indemnifying party. No indemnifying party shall: 
 (i) without the prior written consent of the
indemnified parties (which consent shall not be unreasonably withheld) settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action), unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all
liability arising out of such claim, action, suit or proceeding, or 
 (ii) be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and
hold harmless any indemnified party from and against any loss of liability by reason of such settlement or judgment in accordance with this Section 6. 
 (d) The indemnifying party under this Section shall not be liable for any settlement of any proceeding effected without its written consent, which shall not be withheld unreasonably, but if settled with such consent
or if there is a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have validly requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 6(c) hereof, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid valid request and (ii) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such valid request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party 

 
and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (x) includes an
unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (y) does not include a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party. 
 (e) If the indemnification provided for in this Section 6 shall for any reason
be unavailable or insufficient to hold harmless an indemnified party under Section 6(a) or 6(b) in respect of any loss, claim, damage or liability (or action in respect thereof) referred to therein, each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability (or action in respect thereof): 
 (i) in such proportion as is appropriate to reflect the relative benefits received by the Company from the offering and sale of the
Transfer Restricted Securities on the one hand and a Holder with respect to the sale by such Holder of the Transfer Restricted Securities on the other, or 
 (ii) if the allocation provided by Section (6)(e)(i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in Section 6(e)(i) but also
the relative fault of the Company on the one hand and the Holders on the other in connection with the statements or omissions or alleged statements or alleged omissions that resulted in such loss, claim, damage or liability (or action in respect
thereof), as well as any other relevant equitable considerations. 
 The relative benefits received by the Company on the one hand and a
Holder on the other with respect to such offering and such sale shall be deemed to be in the same proportion as the total net proceeds from the offering of the Debentures purchased under the Purchase Agreement (before deducting expenses) received by
the Company, on the one hand, bear to the total proceeds received by such Holder with respect to its sale of Transfer Restricted Securities on the other. The relative fault of the parties shall be determined by reference to whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Holders on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and each Holder agree that it would not be just and equitable if the amount of contribution 

 
pursuant to this Section 6(e) were determined by pro rata allocation or by any other method of allocation that does not take into account the
equitable considerations referred to in the first sentence of this paragraph (e). 
 The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 6 shall be deemed to include, for purposes of this Section 6, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending or preparing to defend any such action or claim. 
 Notwithstanding the provisions of this Section 6, no Holder shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder with respect to its sale of Transfer Restricted Securities
exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute as provided in this Section 6(d) are several and
not joint. 
 (f) The provisions of this Section 6 shall remain in full force and effect, regardless of any investigation
made by or on behalf of any Holder or the Company or any of the officers, directors or controlling persons referred to in Section 6 hereof, and will survive the sale by a Holder of Transfer Restricted Securities. 
 7. Rule 144A and Rule 144. The Company agrees with each Holder, for so long as any Transfer Restricted Securities remain outstanding and during
any period in which the Company (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or beneficial owner of Transfer Restricted Securities in connection with any sale
thereof and any prospective purchaser of such Transfer Restricted Securities designated by such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A, and (ii) is subject to Section 13 or 15 (d) of the Exchange Act, to make all filings required thereby in a timely manner in order to permit resales of such Transfer Restricted Securities pursuant to
Rule 144. 

 8. Miscellaneous. 
 (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under
Section 2 hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely, and that, in the
event of any such failure, the Initial Purchasers or any Holder may seek such relief as may be required to specifically enforce the Company’s obligations under Section 2 hereof. 
 (b) No Inconsistent Agreements. The Company will not on or after the date hereof, enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. In addition, the Company shall not grant to any of its securityholders (other than the Holders of Transfer
Restricted Securities in such capacity) the right to include any of its securities in the Shelf Registration Statement provided for in this Agreement other than the Transfer Restricted Securities. The Company has not previously entered into any
agreement (which has not expired or been terminated) granting any registration rights with respect to its securities to any Person, which rights conflict with the provisions hereof. 
 (c) Amendments and Waivers. This Agreement may not be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given, unless the Company has obtained the written consent of a Majority of Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof, with respect to a matter, which
relates exclusively to the rights of Holders whose securities are being sold pursuant to a Shelf Registration Statement and does not directly or indirectly adversely affect the rights of other Holders, may be given by the Majority Holders,
determined on the basis of Debentures being sold rather than registered under such Shelf Registration Statement. 
 (d)
Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), telex, facsimile transmission, or air courier
guaranteeing overnight delivery: 
 (i) if to a Holder, at the address set forth on the records of the registrar under the
Indenture or the transfer agent of the Common Stock, as the case may be; and 
 (ii) if to the Company, initially at its
address set forth in the Purchase Agreement, 

 With a copy to: 
 Latham & Watkins LLP 
 135 Commonwealth Drive 
 Menlo Park, California 94025 
 Fax No.:
(650) 433-2600 
 Attn: Christopher L. Kaufman 
 All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if transmitted by facsimile; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery. 
 Any party hereto may change the address for receipt of communications by giving written notice to the
others. 
 (e) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors,
assigns and transferees of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities, provided, however, that nothing contained herein shall
be deemed to permit any assignment, transfer or other disposition of Transfer Restricted Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Transfer Restricted Securities,
in any manner, whether by operation of law or otherwise, such Transfer Restricted Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Transfer Restricted Securities such person shall be conclusively
deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. 
 (f)
Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. 
 (g) Debentures Held by the Company or Their Affiliates. Whenever the consent or approval
of Holders of a specified percentage of Transfer Restricted Securities is required hereunder, Transfer Restricted Securities held by the Company or its Affiliates (other than subsequent Holders if such subsequent Holders are deemed to be Affiliates
solely by reason of their holding of such Debentures) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

 (h) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof. 
 (i) Governing Law. This Agreement shall be governed by
and construed in accordance with the law of the State of New York without regard to conflict of law principles that would result in the application of any law other than the law of the State of New York. 
 (j) Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby, it being intended that all of the
rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
 (k) Entire
Agreement. This Agreement, together with the Purchase Agreement and the Indenture, is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of
the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company
with respect to the Transfer Restricted Securities. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

					
	MENTOR GRAPHICS CORPORATION
		
	By:	 	/s/ Dean M. Freed
		 	Name:	 	Dean M. Freed
		 	Title:	 	Vice President and General Counsel

  

			
	MERRILL LYNCH & CO.
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
	BANC OF AMERICA SECURITIES LLC
	UBS SECURITIES LLC
	
	Acting severally on behalf of themselves and the several Initial Purchasers
		
	By:	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
		
	By:	 	/s/ Jeff A. Shusta
		 	 Authorized Signatory

 [Signature Page to Registration Rights Agreement]

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